Mayor Hart welcomed everyone for being here. Chuck Gillette stated that we have a presentation and would like to give it again to Ron Thompson. Mayor Hart stated we have very specific questions. Washington County Water District's efforts are focused on Lake Powell pipeline and that terminates at Sand Hollow and makes its way to the treatment plant. Chuck Gillette stated that we have a pipeline from Quail Lake Reservoir that currently satisfies our needs, and if we build the irrigation system we may not need more than what comes out of that pipeline. Lake Powell water may not come to Ivins City, but we will benefit from more water in the basin. Mayor Hart stated we will rely on water that comes from the treatment plant for our culinary water. The big question is how we get sufficient water for our secondary irrigation system? Chuck Gillette stated that is the reason we wanted Ron Thompson here. Our consultant thinks the only reliable irrigation source is the reuse water coming out of the treatment plant. Gunlock water it is not reliable. This year was only 50% of the supply. We are concerned that if we build the infrastructure and we don't have reuse water that there are other water sources. Ron Thompson has some ideas for what the Water Conservancy District can do. When we showed Ron Thompson the 17 million dollar reservoir that we could build in Ivins, he wasn't ready to commit to that. Council Member Ron Densley inquired that since Ron Thompson is retiring shortly, will Zach Renstrom be on board? Chuck Gillette we don't know how Zach Renstrom will react, but he is a smart guy. He will move forward with what Ron Thompson leaves behind. Mayor Hart stated it is the District's job to provide us water. That is the agreement. Chuck Gillette stated they want to do a west side regional study of our usage and use a picture of the whole basin. It needs a bigger water study done by the District. We look at our study every 5 years. Maybe we don't need to use reuse water or do it differently rather than building a reservoir. Council Member Mariah Elliott inquired if that would that impact our 5 year plan? Do we wait to see what they suggest? Mayor Hart stated that Aaron Anderson and his team have put together the most efficient method as of this time. St. George City and Santa Clara have many water rights. Ivins has very few. The District contract is huge for our City as we rely on them for about a third of our water already. They manage it, but they don't own it all. Because they manage it, they have a lot of leverage of what water gets used and goes where. Our agreement with the District is that we will put in a secondary water system. Using culinary to irrigate our yards is foolish. There are two irrigation districts that also claim water from Gunlock as well. Chuck Gillette stated as we convert from agriculture to homes those water rights will possibly be available. The City may want to pass an ordinance that if a developer sells land, that the City has first right of refusal of buying their water shares. It could be a credit as an impact fee. Mayor Hart inquired what happens if we don't develop the way the land use shows? Aaron Anderson stated if they change water use, the use will shift. If you go low density to a townhome, the irrigation usage drops. It is a wash if they shift one way or the other. Mayor Hart stated irrigation is based on acreage, land and not people. The culinary side needs to be looked at as development takes place. The conservation aspect of this needs to be our responsibility as well as we grow and look at the technology to adopt a systematic set of rules. Technology is leading the way and it would not be burdensome to save there. Aaron Anderson gave his presentation for culinary and irrigation. He stated the purpose of the Master Plan is to essentially plan for growth. It is a budget document. Most of Ivins City water comes from Quail Creek Reservoir and the Snow Canyon and Gunlock Wells and well field. St George has an agreement with Ivins City from the 60's or 70's for taps and where we pull water from. Locations that comes into our taps is 200 West and 400 West and that pushes it into the Cliffrose and Taviawk tanks. Our annual average demand is around 2700 acre ft per year. That is .75 acre feet per ERU, Equivalent Residential Unit. Ivins is almost 100 percent residential. Peak day is about 3500 gallons a minute. Existing supply is around 3400 acre feet per year and peak day is about 4750 gallons per minute. If we take off your largest source for any reason, it drops down to 3450. Culinary water sources are becoming limited. All water is located further away from Ivins geographically so transport is expensive. We want to open up access to additional available sources. The plan is to move forward with secondary irrigation. We have broken it up into 5 phases. The first phase is the backbone of the system, the transmission line. It will pick up parks, schools, churches and dry irrigation connections. We will be able to service an additional 415 residential units. That cost will be an estimated 6.5 million dollars in today's dollars. We would also install meters at point of connection with the municipal system and the Ivins irrigation company system. Council Member Mariah Elliott inquired if these will be separately metered? Chuck Gillette stated there will be a meter tap. Aaron Anderson stated that Phase 2 is to reach out and grab services and extend them out and we will get another 570 additional residential units and 565 acre feet that will be around 1.7 million dollars. That would approach about 30% of the existing connections. As new development comes in, you would hook them up right then so this is just a guideline. Phase 3 picks up additional sources. The sources for the first two phases will be existing shares the City owned. Possibly additional shares in Gunlock. So we would be expanding the system more. There is a dry wash reservoir East of Kayenta and to summarize, it would give 500 additional units and cost 4.1 million not including the reservoir. The largest reservoir cost St George City estimated was 15 to 17 million dollars. This phase is the largest component. Phase 4 is the phase you extend the irrigation throughout the remainder of the City house by house, or when you repave the road or have a utility installed and build it as it makes sense. But you would go street by street and cut up asphalt and have utility issues and compare the cost of bringing water in. The total storage of the reservoir is 4500 acre feet. The cost is 14.7 million dollars. The idea is that Ivins will have 290 acre feet of that. Commissioner Lance Anderson stated that in Kayenta, the reservoir is intrusive in the area and devalues the whole community no matter what the cost is to put that in. Chuck Gillette stated that there is an option for storage and graveyard wash. Ron Thompson stated he is concerned about water storage. They both present challenges but it may be better and cheaper places to use the transmission lines to get it where you need it. Council Member Mariah Elliott stated we have no conservation plan in here. This is 10 plus years away. How aggressive can we get to stock up for the future? Mayor Hart stated we have achieved 30% usage thus far. The further it goes the tougher it is to get that next gallon of water. Council Member Mariah Elliott stated that culinary is essential for life but irrigation is non-essential and maybe we could charge them to help pay for the system and encourage conservation. Commissioner Lance Anderson stated when you get rid of trees and grass then your power goes up. Mayor Hart stated we would be imposing requirements for people that have been here a really long time. Council Member Mariah Elliott stated we just need to examine where people want to pay? Chuck Gillette stated that 7000 gallons per month is a basic need for water. $30.00 a month for essential use. We have 3300 connections. Commissioner Lance Anderson inquired of those connections, how many use less than 7000 gallons? We should examine that as well. Mayor Hart stated we are having a review of our water conservation master plan. Aaron Anderson stated Phase 5 is full expansion throughout the rest of the system. 570 residential units and around 9 million dollars into the rest of the City. Ron Thompson stated Ivins uses conservation and their water more efficiently because you have no commercial base and not a lot of families; a lot of second homes. It rounds out to about $4.00 a gallon for the treatment plant to reclaim the water. If you treat water through the regional system you would add a delivery of around $1.00 per thousand gallons. Mayor Hart stated we calculated around 35 million dollar pipeline to get water 21 miles here from Quail Lake. Ron Thompson stated the Snow Canyon is being used to capacity because of the arsenic being treated and that will lessen when that is taken care of. There is the line from Gunlock to the reuse plant but the problem with that system is it has no winter storage on it. Everyone wants their share of what goes through that facility. We need to negotiate with St George and give them more regional water and then take some out of Gunlock to charge your system. If you put a secondary system it needs to be metered. Aaron Anderson stated that was really why we are looking at the irrigation system because with all your huge improvement projects it would avoid another pipeline from Quail Lake that would be a 35 million dollar undertaking. Ivins could also exchange shares. We recommend combining the Kayenta system with the City water system. Ron Thompson stated that we will take what Aaron Anderson has created and model it with Santa Clara and St George with Ivins and put them together to see what we have regionally. Our policy is if it benefits two or more cities we try to include it into our plans. Aaron Anderson inquired if you subsidize St George Gunlock water would it be across the board? Ron Thompson stated it will have to be negotiated to make it equitable for both parties. Commissioner Lance Anderson stated when we ask developer to put in secondary system there is cost and then they have costs to maintain it. We need to think about that when we do these studies and think of that end use cost. Aaron Anderson stated there is cost in the secondary system that is existing because it is dry and we don't know how well they hold water. Commissioner Lance Anderson stated we should use our secondary system as our culinary system right now. Chuck Gillette stated we could charge it with culinary water and try out the system. Ron Thompson stated cross connection is a scary thing because you could contaminate a whole municipal system. Look at the sources and cost to get the sources and the legalities of that. Chuck Gillette statedwhile you do the West Side Study, there is no reason why we can't start this plan? Ron Thompson stated no we can make this work. Shares you have for 4 acre feet per share is roughly worth 1 acre feet per share in Ivins irrigation. Chuck Gillette stated you can lease out shares. Mayor Hart inquired is there an alternative to what we are about to do? Aaron Anderson stated 35 million was the estimate to get the water here but then distributing it all has added cost. The reason for this system is to be as cost effective as it can be. Ron Thompson inquired if we have requested people to voluntarily sell their shares to the City? Chuck Gillette stated we have talked about passing an ordinance requiring giving the City first right of refusal. Ron Thompson stated the problem is the company doesn't use them and there is a lapse of water right and they lose that right. Putting it under the City's umbrella could be good if you use that water. Chuck Gillette inquired do we budget for that or is it under our Water Conservancy District agreement? Aaron Anderson stated the irrigation company has to supplement their shares. Ron Thompson stated they need to meter their system. Chuck Gillette stated They have 30 share holders with 2 or less shares and a lot of people are using the water. The irrigation company is talking about eliminating that use and only service agricultural use. Council Member Ron Densley stated the irrigation company is updating their books and trying to find where all their lines are and GPS those. They are trying to update that and get it current. Also, instead of buying the water, a lot of farmers are done for the year with their hay. Mayor Hart stated that Council needs to be assured that this is the most cost effective and reasonable thing to do. There are other alternatives. Could the west side study be brought forward? Council Member Ron Densley inquired if we would bond for the first phase? Wally Ritchie stated cash reserves will pay for part of it, but we don't have 4.5 million laying around. It would be a revenue bond. Aaron Anderson stated it would all be 100% impact fee eligible. Ron Thompson stated if you build a house in LaVerkin, they pay for an indoor component of the impact fee. They are probably four thousand dollars less. Ivins is $8470.00. What they don't pay there, they use to acquire water through the old canal. They have that secondary system already piped into place. Commissioner Lance Anderson inquired how many ERUs could we have with Ivins City irrigation if all shares were sold to us? Chuck Gillette stated 1000 to 1500 acre feet. We could try that and see what shareholders would do. Mayor Hart stated we don't go away from here with any questions. This is one of the biggest ticket items we have ever considered. Ron Thompson stated let me get Tage Flint and do a presentation on secondary water. They have a large system and they are trying to get it metered. Council Member Ron Densley stated that we had a similar situation with Rocky Mountain Power and now Ivins has the highest rate. The concern is we could have same problem. Mayor Hart stated we would like to listen to the numbers before we ever move forward with rates and impact fees. We need to do it in the next year. We are peaked. Aaron Anderson stated they would like to complete the impact fee and rate study. Mayor Hart inquired how soon would those studies be completed? Commissioner Lance Anderson inquired is there no other place to tap into with a pumping station to extend 5 years? Ron Thompson stated right now you have three sources. Aaron Anderson stated those are taps. Ron Thompson when we have a fail we can draw from other resources to cover it. No one is going to let this community run out of water. Commissioner Lance Anderson inquired if we lose one source are we are out of water? Aaron Anderson stated you have regional water, Snow Canyon and Gunlock. Then you have those taps. Commissioner Lance Anderson stated is there another availability to tap into to solve our peak demand? Mayor Hart stated we would only be postponing the inevitable. We could put it off for a period of time doing that. Ron Thompson stated it will be an economic or engineer study and how we put a model together. He will work with Chuck Gillette and look to Santa Clara and St George for a model. He will call Tage Flint for a presentation. Council Member Mariah Elliot inquired if we go with this plan and our sources does that reduce our culinary impact fee? Mayor Hart stated we would incorporate Aaron Anderson's study in this. We could postpone until we have the Western Regional study done. Chuck Gillette stated he is nervous delaying by 6 months. The previous master plan suggested we have this source in place by now. Ron Densley stated as an example, say he owns a water share and he builds and he goes to WCWCD and he has shares through the irrigation company, his impact fee will drop. Ron Thompson stated if you have secondary through the City then yes. If it is just by you or the irrigation company, then no. You have to be owned and operated by the municipality if you want a secondary system. That would drop your impact fees. Mayor Hart stated we need to look seriously as a City to try to acquire both the Kayenta system and the Ivins irrigation system. Council Member Mariah Elliot stated Phase 1 and 2 needs to happen regardless. Chuck Gillette stated very likely yes. Mayor Hart stated yes we imposed requirement on development for 20+ years so if the City doesn't charge those lines would we reimburse? That is a serious point. Commissioner Lance Anderson stated those first 2 phases are 1000 connections and 9 million dollars. Ron Thompson stated he will put meeting together with Tage Flint and do the Western regional study. Commissioner Adel Murphy stated she wants to wait for the regional study. Commissioner Bryan Pack agreed. Aaron Anderson stated we will move forward with the impact fee study and the rate study.