The Annual Shareholders’ Meeting
Cache Highline Water Association

March 13, 2017

            The Annual Shareholders’ Meeting of the Cache Highline Water Association was held on March 13, 2017, at the Sky View High School Auditorium, 520 South 250 East, Smithfield, Utah. Approximately 100 people were present in addition to the Board of Directors.

            President Kirt Hoggan welcomed the attendees and introduced the Board Members, Treasurer, Secretary, and three Water Managers.

Copies of the 2016 annual meeting minutes and financial statements were handed out to attendees as they entered the meeting. A motion to approve the minutes of last year’s meeting, held on March 7, 2016, was proposed by Bruce Godfrey, seconded by Carlos Anderson, and carried unanimously.

Financial Report Highlights (see attachments)

Treasurer Lyle Thornley fielded questions from the audience about the 2016 financial statements. He pointed out the payments received from the cities for the use of the Canal as a storm water channel; the percentage of participation will change this year now that the pressurized system is complete. He also described the loan terms and payments.

Kirt Hoggan explained that additional attorney fees were incurred to amend the bylaws; the new pressurized pipeline was not covered/discussed in the original bylaws, and a description of where the CHWA responsibility/liability ends and shareholder responsibility/liability begins needed to be clarified. Descriptions of these responsibilities in several different situations (i.e., pipeline vs. traditional headgate) will be added to the Company website for shareholder reference.

Gordon Younker made a motion to accept the financial statements as presented. The motion was seconded by Eric Hansen and carried unanimously.

Operations Update

            Water Manager Darin Evans reported that the 2016 water year was one of the driest on record. Dave Erickson pointed out that the new water district will have a positive impact on water distribution from now on. The district bylaws will be completed by the April meeting. The organization’s budget is currently coming from Cache County.

            Although there should be plenty of water this year, Darin expressed the need for water schedules (rather than all-at-once watering) all along the system to help maintain a consistent flow along the entire length of the Canal. It is essential to have gate managers for efficient control and for emergency notifications. Contrary to media warnings, watering during the day is necessary with secondary systems. Darin explained the 600 South (Smithfield) project, which will help the water-level fluctuations and improve distribution of water to the north end of the system.

            Although the water needs to be clear and pressure testing completed on the system, it is anticipated that water will be in the Canal by April 15.

            When questioned about the new gates blocking access to canal banks, Darin explained that CHWA does not own the canal bank land. The Company only has an easement through the property for maintenance purposes; it is private property owned by the land owners, most of whom wish to retain their privacy and property investment. At this point, traffic along the newly graded canal bank may damage the infrastructure.

Other topics addressed included the following:

• Kirt Hoggan encouraged all pipeline companies to secure liability insurance.
• A countywide trail system is out of the domain of the Company, which will remain neutral on the issue.
• Logan City and Cache County partner with CHWA to spray the weeds (CHWA pays only for the materials).
• A mower has been purchased to help with maintenance of the banks.
• Future goal (as finances allow) – a meter at every headgate.

Elections

            Four positions on the Board of Directors were up for election; Jon Wells, Jim Huppi, and Fred Duersch expressed willingness to serve again. Kay Gilgen made a motion to vote in these three directors by acclamation; the motion was seconded by Paul Hoth and carried unanimously. Dave Erickson nominated Gary Hansen for the fourth open position; the nomination was seconded by Bruce Godfrey. Cory Wood made a motion that nominations cease; the motion was seconded by Alan Balls, and carried unanimously, electing Gary Hansen to the position.

            This meeting adjourned at 8:15 p.m.