Water System Upgrade Meeting
Saturday February 4th - Zoom Meeting
https://us06web.zoom.us/j/89698240818?pwd=ZU92N2tlNWVXN1ZnaFk3VU1qYkhtdz09
meeting ID 896 9824 0818
passcode HLA2023

The following information is a summary of the known details of this project. Looking forward to your questions.

Hidden Lake Association Board

Hidden Lake Association Water System Plan History, Planning, and Available Funding Outline

Why is a Major Overhaul / Upgrade to the Water System of HLA necessary?

HLA learned in late 2019 that the Utah Department of Drinking Water(UDDW) re-organized with an emphasis on infraction enforcement.
January 2020 HLA received notice from Utah Department of Drinking Water that our water system needed improvements and was expected to become not approved for use. Click Here to view the January 2020 letter in the Hidden Lake Water Documents

Click Here

Based on phone conversations with the UDDW, HLA learned a fine of $10,000 per month for operating an un-approved system could be levied
Based on these circumstances the 7 year plan ended at this time. This has been discussed in every Members Meeting since. Our focus changed at this time to upgrade out system to meet the UDDW requirements.

Current Deficiencies with the HLA system include :

The IPS system is a demerit point systems, you do not want points. The UDDW restructured in 2019 with an renewed emphasis on this system and the point system changed as well.
HLA was aware of and was working on cleaning of the report but it had never been as huge of an issue as it was now with the UDDW restructuring.
HLA learned of numerous cumulated points based how monthly testing as performed and reported
Numerous other seemingly insignificant issues add points. HLA also learned We were not alone in this focus of attention, all Utah Private Water Systems were under same scrutiny.
A significant issue was and still is no second water supply
A significant issue was and still is meeting 800 gallons/day per cabin
A significant issue was and still is too small of tanks, need upwards of 50k gallons, we have only 30k
These are significant deficiencies from the UDDW perspective and do not reflect the general consensus of HLA owners as these have been this way for years.

What has the HLA Board and Water Committee Done So Far?

In 2020 we learned the UDDW would seemingly only work with solutions approved by a Professional Engineer (PE). This includes any plans, infrastructure, design, and calculations.
In 2020, we reviewed the qualifications and proposals from 4 difference professional water engineering firms to help us negotiate and work with the UDDW. Through this process we selected Aqua Engineering (Aqua) based on experience with UDDW, Summit County, cost and willingness to work with us.
Aqua first, using their knowledge and contacts with UDDW, focused on reducing our IPS accumulated points to well below the threshold of concern. As part of this work HLA needed to supply a Corrective Action Plan (CAP). This initial work by Aqua stopped the UDDW efforts to shut down our system. The CAP bought us time and this CAP will expire in October of 2025.
The board new to resolve the significant issues we would require new infrastructure. Work on such infrastructure improvements cannot be done in the same way it was done back when our water system was first created. These new infrastructure upgrades must be designed by Utah State certified Professional Engineers (PE) and must meet the UDDW current standards.
The HLA board knew this would be expensive.
The HLA board knew this would be a tremendous burden on the HLA members to ask each water member to fully fund, not to forget interest rates, a project of this magnitude.
The HLA board learned of the availability of low interest rate loans to fund a project like this. The application for this loan required a high level plan created by a PE
Aqua had previous success in finding funding for such projects. The HLA board instructed Aqua to help HLA find funding. Aqua next began on the Preliminary Engineering Report (PER) and would then file it with the UDDW funding board.
The PER was completed and supplied as part of the filing to the UDDW in November 2022. Click Here to view the Aqua Engineering PER document in the Hidden Lake Water Documents
The HLA filing was approved on January 10th 2023.
The PER is a proposal providing a high level, technically accurate, illustration of the work required to execute a proposed plan to meet UDDW requirements.
Specific features, designs, project plans, contractors, supplies, etc.. are estimated in the PER. No details have yet to be finalized. No contractors selected. No plans, designs or supplies have been targeted, determined or selected. This all comes later. The PER proposal provides a basis for the cost estimation of the project.
Based on Aqua experience it was appropriate to lean on the high side of as most accurate as possible cost estimates. This is done to ensure the final funding request value is as high as technically and accurately as possible because you can only ask for funds one time.
Aqua has indicated they have never seen the approval for 100% funded 0% interest rate.
All Aqua fees are paid todate using water fees.

Funding Opportunity

On January 10th 2023 HLA was approved for a 40-year, 0% interest loan from UDDW for up to [$3.8 million].
Nothing has been drawn on this loan so far and HLA is under no obligation to draw on this loan opportunity. If HLA never uses this funding, it will simply expire at no cost to HLA.
If HLA does not take advantage of this loan in a timely manner, it will never be available to HLA again from the UDDW.
The funding meeting on January 10th involved a number of UDDW activities. One of those activities involved another organization similar to HLA, who had never drawn against their approved funding in well over a year and had provided no response communications to the UDDW after numerous UDDW requests. Their funding opportunity was terminated in that meeting.
If HLA decides to use this funding, the UDDW requires that all the funding go directly to and only to, the water project as proposed. Funds are only allocated in an as needed basis. The UDDW knows that project of this nature takes time and are flexible with timelines as long as progress is shown.
Drawing against the loan is a process managed by the UDDW project manager assigned to HLA.
If the project ultimately costs less than the approved amount, HLA’s obligation will only be the amount actually used.
The HLA board believes that funding the project in this way, using this government funded 40-year, 0% interest option is in the best interest of HLA and its members. Other funding method will be significantly higher for individually members and possibly the association based on project schedules.

Simple Example Cost
Assume our current water service fee of $350/year remains

Assume we use just $1M for this project:

Utilizing the funding source approach
$1,000,000 / 40 years / 12 months = $2084/month
$2084 / 126 water services = $17 / month per water service (rounding up)
$17 x 12 = $204 per year per water service
$350 + $204 = $554/year for 40 years
NOTE: The yearly water service would raise $204 / year per $1M borrowed.

One time fee per water service approach
If we needed $1M and each water service owner funded it them self it would be
$1,000,000 / 126 = $7,936 per water service
$7,936 one time fee
$350 / year
NOTE: Each $1M required would be $7,936 per water service due as a lump sum.