The Annual Shareholders’ Meeting
Cache Highline Water Association

April 3, 2023

            The Annual Shareholders’ Meeting of the Cache Highline Water Association was held on April 3, 2023, at the North Logan City Library, 475 East 2500 North, North Logan, Utah. Approximately120 people were present including company officers and employees.

            President Jon Wells welcomed the attendees and read the April 4, 2022, minutes.


A motion to approve the minutes of last year’s meeting, held on April 4, 2022, was proposed by Bruce Godfrey, seconded by Phil Rasmussen, and carried unanimously.



The minutes referenced a presentation by Shalaine DeBernardi, Project Funding Manager for the Division of Water Resources, which explained the requirements of House Bill 242 requiring meters on every connection of a pressurized secondary system. The Senate has now passed Bill 0251, which exempts CHWA shareholders from the metering required in Bill1 242 because CH does not have any storage capacity; however, coordination with the State Engineer’s Office may be necessary to get official exemption. Christie Hansen will be contacting the State Engineer for further clarification, which will then be posted on the CH website. Those companies/systems that applied for a grant money to install meters and were given the money or received confirmation that they would be receiving the money can keep the money if they get approval from the State Water Engineer’s Office to use it for a water-saving project by December 2026.

CH does meter connections where the water leaves the service line, open canal, or pressurized pipeline. All new connections, whether on the upper channel or the pressurized line, require a meter. A question was asked about meters that aren’t working/recording. Jason Morgado informed the group that those meters are under warranty and will be replaced. In addition, all meters will be changed over to a cell-based reading system that can be read by all shareholders. Further information will be shared on the Company website (also see “Operations” below).


            Income statement. The annual assessment was not increased from the previous year, making the numbers very similar; in addition, the Board of Directors has again set the assessment for 2023 with no increase. The cities (Logan, North Logan, Hyde Park, and Smithfield) are still paying CH for the use of the lower channel for storm-water control. They also pay 20 percent of the upper channel expenses for storm water. Unless something dramatic happens, there will probably not be a need for turning on the wells this year, thus no well expense is expected.


The liability insurance charge increased slightly; the State encourages maintaining liability insurance. If the Company maintains the system properly and then an “Act of God” occurs (i.e., basement flooding from overflow), the Company is not deemed liable and cannot be sued. For example, if this bill was in force in 2009, the Company would not have been sued for what happened on Canyon Road.         

The net income from operations is $362,391. After loans and other payments to the government, the net funds increase was $136,851.

Balance sheet. An interest-bearing account has been opened at Cache Valley Bank and should provide around $20,000 to $25,000 in interest this year. Accounts Receivable has dropped from last year; Lyle is still working on those few that are still outstanding. The wells in Smithfield were both used last year and the year before. An excess amount of water was shared and paid for by Smithfield Irrigation and Richmond Irrigation. Work (i.e., lining) on the upper channel to improve areas with seepage will continue.

Other assets and current liabilities were explained, including what will happen when the cities’ contributions to loans drop to zero. An extra $94,000 will then be due from CH beginning 2032 until the loans are all paid (the last in 2038). The loans range from fixed rates of 0.0 percent interest to 2 percent interest. The current value/selling price of stock is at least $3,000 per share.

A motion to approve the financial statements as presented was made by Burt Israelsen, seconded by Jack Evans, and carried unanimously.


            Three Board members whose terms are expiring are Gary Hansen, Jon Wells, and Jim Huppi. All expressed willingness to serve for another three-year term. Dave Erickson nominated Gary, Jon, and Jim; Carlos Anderson seconded the motion. Nancy Jensen nominated Christie Hansen; Robert Burt seconded the motion. Jack Evans made a motion to close nominations, Burt Israelsen seconded the motion which then passed unanimously. Steve Moore made a motion that the candidates take a few minutes to tell the audience about themselves; the motion was seconded by Jim Crook and carried unanimously. After the candidates’ introductions of themselves, written voting proceeded with the results that Gary, Jon, and Jim were re-elected.


            Jason Morgado, Water Manager, reported that last year the water distribution was fairly successful, especially for a dry year, and thanked the shareholders for their cooperation. There was too much demand during the first three days of the week, and Jason would like to talk to individual water managers about dispersing that usage more evenly throughout the week.

            Some meters on the lower pipeline had a factory defect (49 failed). Jason is working with the manufacturers to replace the meters at no cost; he has already received 10 meters and has some new or repaired meters and will replace 10 non-functioning meters before the water season begins. These will be sent back to the manufacturer with a three-week turnaround for repair, then they will replace faulty meters which are then sent back; this cycle will continue until all non-functioning meters on that line are replaced. The rest of the meters are still functioning; there are a total of 106 meters on the pressurized system.

            Also new will be a cell-based reading system (rather than a radio-based); individual headgate managers can then download an app that will update in 15-minute intervals to show real-time line usage. Reports can also be printed for reporting to the State. Jason will also add the cell system will also be added to the meters on the upper channel. He also now has a flow stick which can be used to check water flow on headgates without meters.

            Because of the amount of snow in the channels (multiple feet in some places) so that preseason cleanout and maintenance is not possible, turning water into the Canal will be delayed, possibly May 1. If conditions change, it may be possible to turn the water in earlier. Notice will be given on the Company website.

            Jason will be in contact with individual water managers to see if anything has changed on their systems or the if personnel have changed. He is also meeting with Logan City to see if any flood-relief options are planned, should they be necessary. He will be monitoring the Canal closely and has a couple of relief points in Smithfield should flooding become imminent.  

Suggested was an idea for an association of pipeline companies to collaborate and share best practices; a list of individuals/managers could be added to the CH website. Jason is also mapping with the county GIS system which will give shareholders information about individual users/home owners and other usable information.

            The question was asked about sending some of our water to the Great Salt Lake. Jon Wells learned at a water meeting several weeks ago that if this were required at some point, water from the Logan River System would only be expected to “shepherd” to the Cutler Dam. Passed that someone else would have to keep track of it. The State is still trying to figure out how to do that. Jim Huppie informed those in attendance that when the river is at 400 sec/ft or better, CH is allowed to take out 240 sec/ft of that; our box culvert that comes off the river can only handle about 100 sec/ft. The rest is sent to the Great Salt Lake—until it gets really hot and really dry. Conservation projects, such as metering, are also projects to ultimately help replenish the Lake.

Another question from the audience asked if it might be possible in the future to get additional low-interest grants for piping more of the system, both for safety and to avoid losing water from seepage. The Board is looking into grants/funding that could be used for lining/piping the Canal; Jon Wells reported that such a project is planned in Smithfield as is work on the Black Pipe. However, the drawback is that the State Engineer is concerned about recharging the aquafer, which the Canal presently does in some areas. The Board is always looking safe ways to improve the flow of the canal water.

This meeting adjourned at 8 p.m.