Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton, Superintendent; Dan Mundall, Engineer and Joan Grindeland, Office Manager.

Dr. Hungar called the meeting to order at 9:22 am.

President Hungar swore in reelected Commissioner Currie.

Mr. Currie moved and Mr. Davis seconded Dr. Hungar remaining as president for this next year. Motion passed unanimously.

Mr. Currie moved and Dr. Hungar seconded Mr. Davis serving as secretary for the coming year. Motion passed.

Mr. Currie moved and Mr. Davis seconded adopting the minutes of the December 15, 2003 meeting as written. Motion passed.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $265,382.61, Capital Improvement Fund at $353,588.46, PWTF at $240,057.83 and Market Rate Account at $648.74. Revenue for the month of December totaled $48,580.17 with $40,101.74 from water sales, $7,020.05 in Capital Improvement Fees, and $1,458.38 in interest payments. Vouchers No.009386 through No.009418 in the amount of $21,720.08 were authorized for payment.

Ms. Grindeland presented correspondence from the Department of Ecology allowing the District to combine all existing water rights into one right.

Mr. Mundall arrived at 9:40 am.

In response to questions from the Commissioners Mr. Mundall reported on the advantages of combining the water rights. He will have Robinson and Noble review the hydraulic connectivity issue prior to preparing the document for final signature.

Ms. Grindeland requested permission to hire Steve Mundall to be the computer expert, he has been assisting Ms. Grindeland with maintenance issues and set up the District web site. After questions and clarification the Commissioners granted her request.

Mr. Sexton reported that the repair work on 182^nd is completed.

The Commissioners questioned when the system was last flushed. Mr. Sexton responded that it has been over a year and that there could possibly be some discolored water observed when the system is again flushed. The Commissioners instructed Mr. Sexton to notify customers prior to the next flushing of the system.

Mr. Mundall advised that the District needs to reassess the entire leak history of the system, and at that time he will make recommendations on what needs to be done, how much needs to be done and a time frame for replacement of the most pertinent areas. There followed a discussion on different avenues for raising money to perform all the needed repairs and replacements.

Mr. Sexton reported that it is time to re evaluate the costs of radio read meters. He would like to install them on the main replacement projects.

In response to an inquiry Mr. Sexton reported that the artesian wells are still not hooked up. Mr. Blackwell checked the output and reported it at 76.3 gallons/minute.

Mr. Mundall reported that the District must respond to DOH with the plan to upgrade the sanitary well heads on the artesian wells by the end of the month. After discussion Mr. Mundall was instructed to respond with a written plan and a request that the work be completed by this summer. Mr. Sexton was authorized to purchase the necessary items for one well head and review his progress prior to purchasing the materials needed.

In response to an inquiry from the Commissioners, Mr. Sexton reported that he had not asked for any quotes on painting the exterior of the tanks. Dr. Hungar requested Ms. Grindeland secure some quotes on what it would cost to paint the two tanks and bring the information to the next meeting.

Ms. Grindeland reported that the Brightwater consultants are preparing for the pump testing as promised. She is to secure permission from the two homeowners for access to their property for the testing.

Mr. Mundall needs to complete the paperwork for DOE prior to the pump testing. Due to the delays in producing all the required permissions and paperwork requested by the City of Lake Forest Park, Mr. Sexton was instructed to proceed with the refurbishing of well number 1.

Mr. Currie inquired into why the pole for the NUD sewer warning light still has not been installed. He would like this completed ASAP. Mr. Sexton agreed to have this work completed by the next Board meeting.

Ms. Grindeland reported that the owners of Skippers had called to have their water disconnected. An official statement needs to be sent to the Mall regarding water service to that property. The mall can not provide water service to anyone that is not actually a part of the mall’ as they are not a purveyor.

Mr. Mundall reported that the survey and base plans are completed for the PWTF project. He is planning on going out for bid by the end of February. He still needs to secure three of the easements for the project.

Mr. Davis left the meeting at 11:50 am.

Mr. Mundall reported that Mr. Blackwell has been working with him on GIS mapping. He inquired into the District providing technical training in this area for Mr. Blackwell. The Commissioners instructed him to look into it and present them with a plan.

There being no further business the meeting was adjourned at 12:15 pm

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton, Superintendent and Joan Grindeland, Office Manager.

Dr. Hungar called the meeting to order at 9:00 am.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the January 12, 2004 meeting with corrections. Motion carried.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $242,253.05, Capital Improvement Fund at $359,654.87, PWTF at $246,506.03 and Market Rate Account at $1,062.38. Revenue for the month of January totaled $38,196.69 with $27,716.24 from water sales, $5,404.24 in Capital Improvement Fees, $3,451.59 in meter charges and $1,624.62 in interest payments. Vouchers No.009419 through No.009490 in the amount of $47,217.09 were authorized for payment.

Ms. Grindeland reported that Mr. Mundall had requested she ask for an extension in going to bid for the PWTF project. Due to the amount of research that has been needed to straighten out the water rights issue he will not be ready this month. He plans to have the documents ready for March. After discussion on the topic his request was granted.

Ms. Grindeland presented the copy of the City franchise agreement with staff edits. She asked the Commissioners to review it very carefully and to return any comments or suggestions for further edits prior to returning the document to the City. The Commissioners agreed to review and will discus the document at the next Board Meeting.

Mr. Sexton arrived at 9:25 am

Ms. Grindeland reported that there were 35 delinquent payment letters that were sent out this month, 15 more than average.

A copy of the Brightwater invoice for work performed through the negotiated agreement was presented. Ms. Grindeland pointed out that the contract amount was for $40,000.00 but that the actuals were just over $46,000.00 and she billed the County for the entire amount. Mr. Peterson has acknowledged receipt of the invoice and the County has 30 days to send the District a check.

Ms. Grindeland reported that permission had been received from the affected homeowners for property access regarding the Brightwater pump testing. The District is now waiting on Aspect, the County consultant, to perform the tests.

Ms. Grindeland reported that Mr. Steve Mundall had been teaching her how to maintain the website and that from now on that will be one of her new duties.

On March 25, 2004 there is a seminar being presented by the State regarding available money for construction work. Ms. Grindeland presented the registration information and suggested someone should attend. If the Commissioners are unavailable she indicted she would attend. The Commissioners agreed to register and someone will attend.

Ms. Grindeland requested permission to attend the semi-annual Pool meeting in Bellevue on March 19, 2004. Permission was granted.

Ms. Grindeland reported that she had received a call from the owner of the property that used to be Skippers and that he wanted to change the tenant’s name. She explained the situation and forwarded the call to Mr. Sexton to discus particulars.

Dr. Hungar suggested that a meter be installed at the property and that the amount of water used be subtracted from the mall billing each billing period. Mr. Sexton is to contact the Mall owners and make sure this is acceptable to them. He is also to check and see if there is a meter already in place. And he is to research what it would cost for the District to install a new line to permanently fix this situation. It was agreed that the expense would lie with the District to correct this situation.

Ms. Grindeland presented a letter from Mr. Greg Paisley regarding a delinquent bill that his tenants failed to pay. Mr. Paisley insists that some gentleman in this office told him that the District would collect on the bill from the tenants and that it wasn’t his responsibility and that as a result he has lost his ability to collect these monies in small claims court. He wants the District to waive the charges.

After considerable discussion it was decided that while it is unfortunate that there was a misunderstanding with regard to who is responsible for the bill, it is and always has been the District policy to collect from the homeowner if the bill is not paid by the tenant. Ms. Grindeland was instructed to notify Mr. Paisley of the facts and to provide him with a copy of the RCW that governs the District.

Mr. Sexton reported that the pump contractor had received the incorrect pump for Well # 1. It will be at least another week while he waits for the correct pump to arrive.

Mr. Sexton reported that Well # 3 has a new pump house installed.

Mr. Sexton reported that he and Mr. Blackwell had been locating all the lines in the road running through the WHPA. After discussion it was agreed that the project should be completed and the entire road redone correctly, in conduit, with a map of the line locations. Mr. Sexton will need to coordinate with the Brightwater pump-testing schedule.

Mr. Sexton reported that he had received two quotes for painting the tanks. The lowest quote was from Mr. Steenmeyer. Mr. Sexton was instructed to have Mr. Mundall prepare specifications for the painting, to update the small works roster and to get actual bids on painting both tanks. If Mr. Mundall can not get the specifications written in the next week or so, Mr. Sexton is to hold off on painting until next fall or winter.

Mr. Sexton reported that the alarm light, to monitor the NUD sewer line in the WHPA, have been installed. Mr. Mundall now needs to contact NUD and have them install the float alarm system.

Dr. Hungar inquired as to whether the Brightwater pump testing could be completed without installing the pump house on Well #1. Mr. Sexton reported that there should be no problem.

Mr. Currie requested permission to purchase the SCADA sensaphone 3000 prior to the pump testing. After discussion it was agreed to purchase and install the SCADA system as soon as possible.

Mr. Sexton reported, based on a phone conversation a few minutes ago, that there is a Starbucks going into the old Skippers location and that they plan to open for business on April 1^st. There is currently a meter installed in the building and he will use that to monitor water usage until a more permanent solution can be found.

Mr. Sexton reported that he needs to repair the electrical line going to the black tank prior to any additional work being done in that vicinity.

Dr. Hungar reported he would be out of the country from March 26^th through April 21^st.

Due to the hour it was agreed to adjourn this meeting and to schedule a special meeting for February 24, 2004 at 9 am to review the Draft 2004 budget.

Meeting adjourned at 12:00 pm.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton, Superintendent and Joan Grindeland, Office Manager.

Dr. Hungar called the meeting to order at 9:05 am.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the February 9, 2004 meeting with corrections. Motion carried.

Ms. Grindeland reported that Mr. Hawley, finance director for the City of Lake Forest Park, had contacted her with a request to continue negotiations on the franchise agreement. The assumption vote bill, that was passing through the legislature, died in committee and the situation for assumptions is now back to the status quo. The main issue for the City is revenue and for the District it is non-assumption.

Ms. Grindeland also reported that she and Mr. Mundall plan to meet with Mr. Turner, the Manager of Shoreline Water District, later this week to coordinate efforts towards joint negotiations.

After reviewing and discussing the staff edits to the franchise agreement, the Commissioners instructed Ms. Grindeland to continue with the negotiations and to notify the District customers that the City is requiring the District to negotiate a franchise agreement and the subsequent financial impacts. If possible the information is to go out with the March bills.

Mr. Sexton reported that work on the wells is completed and they are all back on line. There is a pump test meeting this afternoon at 2 pm with the Brightwater contractors. The pump testing is tentatively scheduled for the week of March 1, 2004.

Dr. Hungar requested that Ms. Grindeland also notify District customers of potential taste and color changes in our water due to the massive amount of water needed for pump testing.

Dr. Hungar presented the draft 2004 budget. After discussion it was agreed to offer each staff member a 5 percent increase for 2004.

The budget was reviewed by line item. Ms. Grindeland will make all the corrections and additions needed and discussed and provide the Commissioners with a new draft prior to the next Board meeting.

There being no further business the meeting was adjourned at 11:35 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton, Superintendent and Joan Grindeland, Office Manager.

Dr. Hungar called the meeting to order at 9:00 am.

Mr. Currie moved and Dr. Hungar seconded approving the minutes of the February 24, 2004 special meeting as written. Motion carried.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $258,911.14, Capital Improvement Fund at $370,701.02, PWTF at $252,980.84 and Market Rate Account at $693.18. Revenue for the month of February totaled $57,100.90 with $45,054.61 from water sales, $10,349.37 in Capital Improvement Fees, and $1,696.92 in interest payments. Vouchers No.009495 through No.009519 in the amount of $24,502.74 were authorized for payment.

Ms. Grindeland reported that Mr. Mundall would not be attending today’s meeting but would be down on Wednesday to meet with the City to walk out the PWTF project.

Mr. Sexton arrived at 9:07 am

Ms. Grindeland reported that there had been considerable response to the franchise fee notice and that customers were rather upset. She will be meeting with the City the first week in April to start negotiations.

Mr. Sexton reported that the Brightwater pump tests have been completed. Ms. Grindeland reported that the contractor would provide the District with all data they have collected to date after the raw data is interpreted. At the Commissioners request Ms. Grindeland will also have Mr. Krautkramer review the data for accuracy.

Ms. Grindeland presented a check for $40,000.00 received from Brightwater for the first reimbursement of costs for negotiating the agreement.

Mr. Sexton reported that the sand trap in the WHPA has been removed.

Ms. Grindeland presented a letter from Mr. Steenmeyer stating that his price to paint the tank is only good through March 12, 2004, after that non-winter rates will apply. Mr. Sexton was instructed to schedule the tank painting for the District to receive the winter rates.

Mr. Sexton reported that he and Mr. Blackwell are continuing to locate underground lines in the WHPA and have found numerous items that there are no records for, including valve tie-ins with NUD.

Mr. Currie reported that he and Mr. Mundall have come to an agreement on the equipment for the SCADA system and it will be installed once it arrives. Dr. Hunger requested that there be duplicate systems installed with no connection to each other. That way we will always know what the water levels are, even if one system fails.

In response to a question by Mr. Currie, Mr. Sexton requested two summer helpers this year in addition to Mr. Hitchcock to make sure all the items on his list get completed. The Commissioners granted his request.

Mr. Currie requested a cost comparison of rental vs. purchase for the backhoe item prior to purchase.

Dr. Hungar reported that he would be out of the country from March 26 through April 21. As a result meeting dates will now be March 24, 2004 at 9 am and April26, 2004 at 9 am.

Mr. Currie requested that the staff look into replacing the tables around the office with cabinets as the volume of papers is now overwhelming.

Mr. Currie also noted that this is the 50^th anniversary of the District. We should have a news article prepared and generate some publicity. This would go hand in hand with getting the office fixed up.

Dr. Hungar requested an update on when the District will go to bid on the PWTF project. As Mr. Mundall is not present today staff will find out the timeline and report back at the next meeting.

Mr. Sexton inquired if the Commissioners wanted him to attend any of the upcoming conference/trade shows, one in Ocean Shores and one in Yakima over the next couple of months. The Commissioners instructed Mr. Sexton to attend only if there was something of value on the agenda. At this time he has decided not to attend either conference.

There being no further business the meeting was adjourned at 11:15 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton, Superintendent; Dan Mundall, Engineer and Joan Grindeland, Office Manager.

Visitor: Tom Steenmeyer.

Dr. Hungar called the meeting to order at 9:05 am.

Mr. Steenmeyer discussed mixing issues in the lower tank and presented an AWWA video on tank maintenance.

After discussion it was agreed that when the lower tank is drained for the painting inspection that a smaller pipe or 45 degree cap would be installed to provide for proper mixing.

There followed discussion on what will need to be done on the standpipe. Mr. Steenmeyer proposed that the inside pipe be extended two-thirds of the way up the inside of the tank with holes drilled down below. He recommended that we stay with the 8 inch pipe and install a T with a check valve.

Mr. Mundall arrived at 9:30 am.

Mr. Mundall and Mr. Steenmeyer discussed the pros and cons of caulking vs. cement grout at the bottom of the lower tank. There also need to be anodes buried around the tank for passive corrosion control. Mr. Steenmeyer reported that he has removed all the heavy rust but something must be done soon to prevent any further corrosion.

Mr. Steenmeyer agreed to prepare a cost estimate for everything that needs to be completed and Mr. Mundall will review his proposal and recommend to the Commissioners the best course of action.

Mr. Currie commented on how nice the lower tank paint job is. He is unhappy with the look of the black plastic tank. Mr. Mundall agreed to look into the feasibility of painting that tank.

Mr. Steenmeyer left the meeting at 10:00 am.

Ms. Grindeland presented the Board with a copy of the Right of Entry Agreement for the City of Lake Forest Park Inflow and Infiltration Study. She recommended it be signed, it will help locate exactly where the side sewer is as well as allow the City to install a clean out pipe. The Commissioners agreed and authorized Dr. Hungar to sign the agreement.

Ms. Grindeland presented a copy of the new Operating Agreement with the Health Care Authority, allowing the District to continue participating as well as re-designating her as the District contract. The Commissioners authorized Dr. Hungar to sign this agreement.

Ms. Grindeland reported that there is a meeting scheduled on April 6, 2004 for review of the pump test data for Brightwater. Mr. Hillman, Aspect Engineering, has reported that some of the transducers were not performing properly during the test. Brightwater does not want to repeat the test, insisting that enough information was received by the test to proceed. Ms. Grindeland requested permission to have Mr. Krautkramer attend to review the documentation. The Commissioners agreed.

Ms. Grindeland presented the final revisions to the proposed franchise agreement with the City. She reported that there is a meeting scheduled for April 7, 2004 with the City to begin negotiations. The Commissioners would like to have a line added to have the franchise fee cover the cost of removal of any facilities at the request of the City.

Ms. Grindeland reminded the Commissioners that the PDC reports are due April 15, 2004.

Dr. Hungar reported that Mr. Chalmers would be here tomorrow afternoon. He will stay for an hour or so and will review any issues needed.

Mr. Sexton reported that while digging in the WHPA he discovered 440 power lines and 8 inch ductile iron pipe for deep wells 1 and 2 which was replaced in the late 80’s.

Mr. Sexton reported that the electrical box located in the NUD vault needs to be repaired by the electrician.

Mr. Sexton reported that the Well #1 building is almost finished.

Mr. Currie moved and Dr. Hungar seconded approving the minutes of the February 24, 2004 special meeting as written. Motion carried.

There being no further business the meeting was adjourned at 11:15 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Dan Mundall, Engineer and Joan Grindeland, Office Manager.

Mr. Sexton is on vacation this week.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $315,691.83, Capital Improvement Fund at $381,556.79, PWTF at $252,980.82 and Market Rate Account at $380.63. Revenue for the month of March totaled $109,752.07 with $54,444.11 from water sales, $10,150.47 in Capital Improvement Fees, $40,000.00 in reimbursement from the Brightwater contract and $1,705.90 in interest payments. Vouchers No.009529 through No.009571 in the amount of $29,702.47 were authorized for payment.

Mr. Currie moved and Mr. Davis seconded the minutes being adopted as written. Motion passed.

Ms. Grindeland informed the Commissioners that she and her family would be moving to Salem, Oregon during the month of June. She offered to work as long as she could and assist in finding a replacement for her position.

Mr. Mundall arrived at 9:45 am

Ms. Grindeland and Mr. Mundall reported on the meeting that was held with Mr. Hawley, Finance Director for the City of Lake Forest Park regarding the franchise agreement. There only appear to be three disputed areas. The City wants the agreement limited to five (5) years and the District wants ten (10) years. Mr. Mundall explained that the District reporting and planning period for DOH is 20 years and we considered this an adequate compromise. The City was opposed to no fees for permits, inspections and reviews in lieu of the 6 percent payment. Mr. Hawley agreed to look into no fees for maintenance and operations items but fees for PWTF projects. The City was not the least bit interested in the area of non-assumption including a prohibition against planning, discussing or studying assumption. Ms. Grindeland agreed to remove that request if the City granted a 10-year franchise fee that included a non-assumption clause. Mr. Hawley agreed to prepare the edits to the agreement and present them to the District for review. To date Ms. Grindeland has not received anything from the City.

Ms. Grindeland presented Resolution 301 amending the existing agreement with the Washington State Investment Pool. Mr. Davis moved and Mr. Currie seconded passing the resolution as written. Motion passed.

Mr. Mundall reported on the recent meeting with the Brightwater contractors regarding the pump testing performed in March. The results of the testing indicate there is a relationship between the proposed tunnel alignment and the District aquifer. As a result of this more testing is being scheduled which will give the District and King County more detailed information regarding the actual impact.

Ms. Grindeland reported that she had also received an email from Mr. Newby, King County contractor, indicating that there would be a meeting scheduled for the middle of May to start the ground work for the replacement well that was promised in the Brightwater Agreement.

Mr. Mundall reported that he is working on the plans and detailed specifications for the PWTF project. NUD has offered to sell the District a copy of their plans for $1500.00, Mr. Mundall politely declined.

Mr. Mundall suggested breaking up the work into smaller pieces and having each piece performed separately. Ms. Grindeland reminded everyone that this is acceptable as long as we follow the RCW’s in regards to bidding

Mr. Mundall reported that he still has a couple of week’s worth of work to complete on the PWTF prior to going out for bid.

Ms. Grindeland presented a copy of the letter received from the Fire District regarding the need for a new fire hydrant on 51^st Place. There followed considerable discussion on the various options for dealing with this street. It was decided that the District will comply with the minimum criteria as established by the Fire District. The System Plan specifies replacement of this portion of the District in the 2006-2010 timeframe. We will maintain the pipe and continue service to this area and proceed as outlined in the System Plan. Mr. Mundall agreed to respond to the Fire District letter and to copy the customers on that street with the District plans.

Dr. Hungar requested a review of any other fire hydrants that are currently out of compliance with the Fire District.

Ms. Grindeland presented information detailing the need and cost for replacing PRV stations. Mr. Currie moved and Mr. Davis seconded authorizing staff to purchase and replace the PRV on Ballinger and the one associated with the PWTF project. Motion passed. Mr. Mundall will handle this project.

Ms. Grindeland reported that Mr. Sexton plans to have the DOH report for the artesian wellfield resolved and completed in the near future.

Ms. Grindeland presented bids received by Mr. Sexton for trimming and replacing the trees on the office perimeter. Dr. Hungar stated that the summer help could do the trimming and he would supervise. The bid was placed on hold pending Mr. Sexton’s return.

Mr. Mundall reported that during the pot holing at the WHPA it was discovered that the junction box for the wells is in the NUD chamber. The wiring needs to be replaced by an electrician. This is a confined space. Mr. Mundall recommended that the District authorize $3,000 to $5,000 for confined space training and equipment. Mr. Davis moved and Mr. Currie seconded Mr. Mundall’s request. Motion passed. Mr. Mundall agreed to secure a quote to have the electrical problems fixed.

Mr. Davis left the meeting at 12:50 pm.

Mr. Currie reported that he would be out of town for the next scheduled meeting.

There being no further business the meeting was adjourned at 1:15 pm.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis and William Currie.

Others present: Tony Sexton; Superintendent, Dan Mundall, Engineer and Joan Grindeland, Office Manager.

Mr. Davis moved and Mr. Currie seconded approving the minutes of the April 26, 2004 Board Meeting with corrections. Motion passed.

Ms. Grindeland reported that the City of Lake Forest Park had returned the edited version of the Franchise Agreement and had put back in most of the sections that they had agreed to remove. The excepts being that they had added the 10 year length and the non-assumption clause. The Commissioners wish to table discussion on the agreement until the June meeting.

Ms. Grindeland reported that there is a meeting scheduled for May 12, 2004 with the Brightwater staff and consultants to discuss the future pump testing schedule as well as to discus the details involving the new well drilling sites and procedures.

Mr. Sexton presented a bid for painting the office building. After discussion it was decided that the staff would clean the roof, pressure wash and paint both buildings.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $263,090.24, Capital Improvement Fund at $382,262.52, PWTF at $265,462.80 and Market Rate Account at $709.04. Revenue for the month of April totaled $1,735.51 in interest payments; the remaining deposits were included in the March report due to timing of deposits. Vouchers No.009529 through No.009571 in the amount of $53,134.37 were authorized for payment.

Mr. Mundall reported on the status of the PWTF project. He is continuing to work on contract documents and anticipates going to bid sometime this summer or fall. He and Mr. Sexton are putting a packet together for the City for permits to install the wick drain system down the canyon.

Dr. Hungar requested information on any easements on 32^nd Place. Mr. Steve Mundall and Mr. Blackwell will be reviewing easement documents through King County in the next couple weeks.

Staff needs to determine how far the District is out of compliance with the fire hydrant on 51^st Place. The Fire Marshall needs to be contacted and given a schedule for District compliance. Mr. Perigo needs a letter explaining that the District will comply with Fire Marshall requirements and that the 51^st Place main replacement will remain in the system plan document as is.

Mr. Sexton was instructed to get permission to go onto the properties along both Feasel’s Alley and 180^th and put in new service lines. If there are any more leaks, prior to scheduled main replacements in the System Plan, meters will be moved to the service line and the residents will be responsible for connecting to those meters.

The Commissioners approved payment to the lawyer for work already performed on the easements.

Mr. Mundall has completed the specifications for the stand pipe contract. The painting and repairs will run between $20,000 and $25,000. It was decided to wait until next fall to do the work as we are headed into the high water usage period.

Mr. Mundall reported that the materials only to repair the toe corrosion on the big tank will be $2500. Mr. Mundall was instructed to find out how much installation and inspection costs would be prior to proceeding with the project. It was suggested that Mr. Steenmeyer be contacted to see if he would provide supervisory oversight on the work and what his charges would be to perform these services.

Mr. Sexton was instructed to calculate the costs for daily consumption if NUD water needed to be purchased.

Mr. Sexton reported that he has been unable to purchase an excavator for $30,000. The Commissioners agreed to raise the amount to $45,000.00 and that figure is to include everything necessary to operate the equipment including a trailer.

There being no further business the meeting was adjourned at 12:50 pm

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Tony Sexton; Superintendent, Dan Mundall; Engineer, Joan Grindeland and Jackee Zweekhorst; Office Managers.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the May 10,2004

Board Meeting with corrections. Motion Passed.

Ms. Grindeland reported that she received an email from King County regarding test wells that will be placed at the Brightwater tunnel location. One of the wells will be placed off center of the tunnel, the other two wells will be placed up off of 195^th in various locations to provide for flow tests.

Dr. Hungar requested a plan, as well as costs, from Mr. Sexton regarding the purchase of a new water tank for the high tank maintenance vs. purchasing water from Shoreline Water District. The District has rights to purchase 200 thousand gallons of storage water from Shoreline Water District.

Mr. Sexton presented the letter to the people ( Mr. Perego) on the 51^st project , as well as FD#16 regarding moving the fire hydrant that is out of compliance. We have had no response as of yet.

Ms. Grindeland reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $261,839.00, Capital Improvement Fund at $394,721.63,

PWTF at $272,402.64 and Market Rate Account at $469.47. Revenue for the month of May totaled $44849.20 with $1622.27 in interest payments, $35,661.29 in water sales, $7,565.64 in CIF. Vouchers No. 009011 through No. 009055 in the amount of $82,402.10 were authorized for payment.

Commissioners requested that Ms. Grindeland and Ms. Zweekhorst inquire into an exit audit prior to Ms. Grindeland leaving the district.

Mr. Sexton informed the Board that the District truck was having overload springs installed today to haul the excavator. The District trailer will need jacks to stabilize the loading and unloading of the excavator the cost is estimated at $300.00.

Ms. Grindeland suggested that a resolution be put in place for the policies regarding the Kubota (excavator). Mr. Sexton will be checking with the City of Lake Forest Park regarding their policies on city equipment, and drafting a resolution for the District. Ms. Zweekhorst will make sure that the Kubota is fully insured.

Mr. Sexton reported on the status of the 185^th and 32^nd Street easement project, regarding the private street meter placement. All meters are to be moved off of 32^nd Street and placed onto 185^th Street. All meters on 35^th Street easement are to be abandoned, lines are to be installed from new meters to all homes at District expense. There are nine residences to receive new services. The District is to send out a letter certified advising all property owners involved in this project that they will need to allow permission to use the easement, or they will be held responsible for new service to the meter. Mr. Sexton estimated the total cost of the project at between $5000.00 - $6000.00.

Mr. Sexton reported that the shop is to be painted by staff.

Mr. Sexton reported that one artesian pump has been replaced, and the second pump that needs to be replaced will cost $300.00. Both pumps will be up and running for summer. The reason the pumps were burning up seems to be blockage as well as worn seals. Mr. Currie would like a safety switch placed on the artesian pumps.

Mr. Mundall reported that in regards to the re-piping of the artesian wells, the District needs to find a machine shop to custom machine a well adapter. The re-piping of the artesian is on hold, Dr. Hungar requested that Mr. Sexton locate a machine shop to custom make eight adapters to finish the project. The DOH requested that this needs to be corrected, and we are now late responding to the DOH. Mr. Mundall stated that this has to be corrected prior to next sanitary survey, Mr. Mundall will make sure it happens.

Mr. Currie inquired as to plans for the carport. Mr. Sexton is to obtain plans as well as costs for the planned expansion and present it at next board meeting. The estimated total for a 600 square foot carport with storage room and contractor for slab floor will be approximately $25,000.00 - $30,000.00. Mr. Sexton is to photograph existing building and provide measurements for architect to draw up building plans. Staff will be responsible for framing and roofing carport. Mr. Mundall is to be uninvolved with this project.

Board meeting set for July 12, 2004 is to be rescheduled to July 19, 2004.

Mr. Mundall stated that the DOH would like the System Plan revised edit returned. The District is in potential danger of being put on yellow status. Ms. Grindeland states that we are already on yellow status for not complying with the DOH request. We have to have the System Plan to the DOH prior to next sanitary survey. A public meeting for the approval of the System Plan needs to be held. A notice needs to go out with the next billing and state that the public meeting will be held at the July 19, 2004 Board Meeting at 9 am. There should be a statement made in the notice reflecting WAC264-290-100-(8). A draft of the System Plan will be available in the District office for review.

Mr. Mundall stated that the PWTF, 185^th Street proposed design should be accelerated. A permit is needed from DOH and Mr. Mundall is creating the detailed specifications for the 185^th – 30^th Street. Dr. Hungar would like to see the pipe extended across 30^th connect to Ballinger Way to 185^th in a loop. With a "T" in the joint at 30^th with a valve. Mr. Mundall would like this to go to bid in September 2004.

The next probable section of the PWTF project will be the Bryant-Streich easement.

Mr. Currie reported that the Scada 3000 is installed with power supply and backup battery. Ms. Zweekhorst gathered the information regarding a second phone line but found that it was not needed. Mr. Steve Mundall has completed the software install and the line is up and running. The next task is to feed the Scada 3000, so that the test will tell the depth and amount of well water. Well 1 or 2 can be done immediately, 3 and 4 have Brightwater equipment already installed and cannot be done until the equipment is removed.

The Public Health Department sent a request to sample the soil at the WHPA for arsenic. The testing would require a depth two feet below the ground. Dr. Hungar would like to see the testing done to make sure there are no issues with the soil.

The fencing at the WHPA property line needs to be cleared of the bushes.

Mr. Sexton will be looking into costs to replace the standpipe to serve high and intermediate zones.

There being no further business the meeting was adjourned at 11:50 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall; Engineer, Roy Blackwell, Field Worker and Jackee Zweekhorst; Office Manager.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the June 14, 2004

Board Meeting with corrections. Motion Passed.

Dr. Hungar suggested Ms. Zweekhorst gather information regarding the costs for an exit audit, for the change over of office manger from Ms. Grindeland to Ms. Zweekhorst.

Mr. Currie suggested that since the public hearing notice was not sent out with the July Billing, that a separate notice be sent out reflecting the Public Hearing will be held at the August 9, 2004 Board Meeting.

Dr. Hungar would like to know why we couldn’t buy pumps for the maintenance of the high tank vs. purchasing $25,000.00 worth of water from Northshore Utility District.

The District’s new fire hydrants have a ring at the base that can be replaced if they are hit. The old fire hydrants are not repairable; we are able to use scrap replacement parts from Shoreline Utility District. If we cannot get replacement parts from Shoreline Utility District the hydrants need to be replaced with new hydrants.

Regarding the leak on 178^th , the City of Lake Forest Park is satisfied that it is not our leak, therefore we are not responsible.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $224,931.82, Capital Improvement Fund at $402,913.89,

PWTF at $221,374.25 and Market Rate Account at $430.43. Revenue for the month of June totaled $37,475.59 with $1,515.32 in interest payments, $28,725.07 in water sales, $6,036.08 in CIF. Vouchers No. 009056 through No. 0090128 in the amount of $52,151.17 were authorized for payment.

Dr. Hungar inquired as to the Franchise Agreement, and whether Northshore Utility District is collecting the 6% from all customers. Dr. Hungar would like the Attorney Mr. Jonson contacted regarding the Franchise fee as to if partial customers need to pay the increase when other customers are not yet required to pay.

Mr. Blackwell and Mr. Mundall attended the Brightwater meeting; the following Water Districts had representatives attending Woodinville, Kenmore, Bothell and Shoreline. Mr. Mundall felt that Mr. Pederson’s new agreement was acceptable.

Mr. Currie inquired as to what is the time frame when filing a claim for services rendered for the Brightwater project.

Mr. Hungar would like Mr. Sexton to expedite a policy regarding the excavator, so that a resolution may be put in place.

Mr. Blackwell states that all road striping has been completed. Hydrants on routes 1,2 and 3 have been painted. Route 4 should be completed with in the week.

Mr. Blackwell has detected a leak on Ballinger Way, east of 37^thAve. It is a 6" main that will be repaired this week.

Mr. Blackwell has had the summer help cut the tops of the hedges, at the district office. The rest of the hedges will be done this week. The clippings will then be taken to the transfer station.

Mr. Currie provided a drawing of the system, wiring diagram for the Scada 3000.

Mr. Mundall arrived at 10:45 a.m.

Mr. Blackwell stated that the shallow well pump is down and is currently being repaired. The pump should be back up and running within a week.

Mr. Blackwell stated that the WHPA has been partially cleared of brush, the remainder will be cleared in the next two weeks.

Mr. Currie would like the summer help to locate the evergreen trees and clear the weeds around them.

Mr. Currie is inquiring as to why the artesian pumps need to be pumped up hill. Mr. Currie would like to know why the pump direction has not been corrected to pump down hill. Mr. Currie stated that we should not just be fixing the pumps we should be correcting the flow direction.

Mr. Mundall has stated that the best decision for correcting the shallow wells would be submersible pumps. Approximately 4 of the pumps would be needed. Mr. Mundall states that a quick fix can be accomplished, by obtaining new fittings from a hardware store to fix the minor valve leaks. Mr. Currie suggests that when we get the rebuilt pumps back the pump not be turned on again until the bleed line is installed.

Mr. Currie reports that Mr. Mundall has installed all of the software for the Scada 3000. Mr. Currie installed the lower tank gauge, although the wiring is not installed yet. Mr. Currie informed us that the gauge for the high tank needs to be replaced it is not working properly. Mr. Mundall stated that he would bring in a new gauge. Mr. Sexton has purchased the parts for well number three to be hooked up to the Scada 3000.

Mr. Currie states that all wells need to be wired to the Scada 3000, so that data may be gathered. Mr. Currie stated that there is spools of wire that is more than enough to complete the project. Mr. Currie would like the wiring as follows: sixteen-foot posts will be used for well one to well two and twelve-foot posts will be used for the remainder of the system. Mr. Mundall states that a sixteen-foot post will be needed so that twelve feet can be placed above ground for vehicle clearance . Mr. Currie would like this project completed prior to the end of August.

Mr. Mundall states the letter that was approved by the Commissioners previously has been sent to the City of Lake Forest Park regarding the Franchise agreement. Dr. Hungar would like Ms. Zweekhorst to inquire as to the percentage other districts are required to pay through franchise agreements.

Mr. Mundall states that there is a second Brightwater project meeting being held today, it is very advantages of a district representative to be present, just in case their might be a discrepancy to appear.

Mr. Mundall reports that the bid-detailed specs for the trust fund project are not complete, the general specs are complete. Once they are complete we can go to bid; the approximate time frame for permits looks to be two – three weeks. We are looking at the first of September to bid.

Dr. Hungar requested that Ms. Zweekhorst and Mr. Mundall create a System Plan letter to be distributed to all District customers as soon as next week. Mr. Hungar would like Ms. Zweekhorst and Mr. Mundall to look into the WAC for the specifics of the notification.

There being no further business the meeting was adjourned at 11:50 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Public attendees present: Rich Donner, Resident; and Neil Jensen, City of Lake Forest Park Engineer.

Dr. Hungar opened the public hearing, and asked if there were any questions.

A resident that lives at 18415 51^st Place NE (Rich Donner), stated that he would like to see the main replaced as well as the private road paved. Mr. Mundall stated that the project is projected to take place between 2006-2010.

Dr. Hungar stated that we have an older system that needs to be updated. We have performed smaller projects such as repairing leaks and other emergencies due to the condition of our system. We have currently purchased a backhoe; therefore we can complete projects within the District. Mr. Donner is very concerned with the very poor condition of the road pavement on 51^st Place NE.

There being no further business the public meeting was adjourned at 9:25 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the July 19, 2004

Board Meeting with corrections. Motion passed.

Dr. Hungar stated that Gaylord Lenker has been cutting down trees in the WHPA; he has also planted evergreen shrubbery. A neighbor called the authorities to report trees that were being cut down potentially within distance of hitting their home. A police officer responded to the WHPA and stopped Mr. Lenker from cutting down any more trees. A letter needs to be sent to Mr. Lenker informing him that he may not cut anymore trees down within the WHPA or remove the wood.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $180,200.01, Capital Improvement Fund at $409,595.09,

PWTF at $227,813.90 and Market Rate Account at $343.64. Revenue for the month of July totaled $59,994.55 with $1459.52 in interest payments, $50,876.38 in water sales, $9,118.17 in CIF. Vouchers No. 0090129 through No. 0090174 in the amount of $34,901.55 were authorized for payment.

Regarding the PWTF NE 185^th Street and 32^nd Place project. Mr. Sexton sent out six letters notifying residents that we are replacing service lines. Mr. Sexton also sent out notices to the surrounding locations informing them of the project specifications. Mr. Sexton will have to mole under 185^th Street to install the first two services. Mr. Sexton feels that to be the most important part of the project at this time.

Mr. Mundall had the parts machined that were needed to provide an approved sanitary protection to the artesian wells.

A discussion was held regarding re-piping of the artesian wells.

A discussion was held regarding the requirements as well as the supervision of the summer help.

The sensor wires need to be installed in the SCADA system located in the W.H.P.A. Mr. Sexton and the field help will place the wire in ¾" conduit for crossing the road. Completion of the Scada 3000 system will be the end of August.

Ms. Zweekhorst is to research $90,000.00 in revenue reported in March 2004. Dr. Hungar believes that the amount should have been credited to Brightwater claims, not revenue.

Dr. Hungar held a discussion regarding possible rate increases in January 2005. Mr. Sexton is to review rates of other utilities for comparison.

Mr. Sexton needs to review the numbers for our budget.

Mr. Mundall and Commissioner Currie attended the King County council meeting held on July 19, 2004. The LFPWD Brightwater contract passed nine to two. The County Executive is expected to sign as directed.

Dr. Hungar announced that Mr. Blackwell would receive an hourly rate increase as well as full benefits.

Mr. Hitchcock would like to take manager II training online. Mr. Davis and Dr. Hungar agreed.

Dr. Hungar stated that the flushing of the system was started two years ago and needs to be completed by Mr. Sexton in the fall/winter.

There being no further business the meeting was adjourned at 12:27 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager; Richard Donner, Resident.

Dr. Hungar called the meeting to order at 9:05 am.

Ms. Zweekhorst reported that water sales revenue for the September billing period (July/August usage) was in the amount of $98,400.00.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $190,520.60, Capital Improvement Fund at $419,416.67,

PWTF at $234,201.88 and Market Rate Account at $313.70. Revenue for the month of August totaled $28,820.81 with $1459.52 in interest payments, $22,188.93 in water sales, $4566.36 in CIF. Vouchers No. 0090175 through No. 0090221 in the amount of $36,295.95 were authorized for payment.

Ms. Zweekhorst has been for searching information regarding fees cities charge for franchise agreements and right-of-way and construction permits. She has found that six percent seems to be the amount most commonly charged for franchise fees. She has not been able to find the right-of-way information to date.

Mr. Sexton would like to extend employment for Robert McDonough from summer help to full-time field support. Dr. Hungar would like to see on paper what that would cost the district. Ms. Zweekhorst is to research the legal position of the District with regards to eligibility for Health and Retirement benefits, and the policies that must be followed.

Mr. Hitchcock will be taking online courses to continue his training in water management. Mr. Currie and Dr. Hungar have approved two online courses.

Mr. Sexton stated that some new beach houses would be required to install a fire sprinkler system inside the homes. This brings up concern for the potential water that would be needed if there is a fire. He is to obtain more information from other districts concerning additional supply requirements and if there are additional charges and meters installed when that service is provided.

Dr. Hungar would like further information regarding the fire-flow system at the school. The attorney needs to be contacted regarding charging the school a $4000.00 install fee for the installation of a separate meter. The meter would measure water usage in case of a fire. A discussion was held on whether the existing separate fire hydrants in the rear yard of the Lake Forest Park Grade School should have a meter installed to monitor any use of water. Mr. Sexton would like to charge another meter charge for the fire flow instead of a separate meter installation.

The staff recommends adopting a rate structure similar to the one used by Seattle Public Utilities. The proposal would affect the average user by reducing the base rate and increasing the water usage, so those using large quantities of water would pay a higher rate than those using lower amounts. Dr. Hungar stated that we should consider a rate increase for 2005 and that it needs to be passed by the December meeting. A discussion followed with the staff reporting their recommendation on this matter. This includes a substantial increase in the one-hundred-cubic-foot rate and a reduction in the fixed meter charge rate. Mr. Currie would like Mr. Mundall, Ms. Zweekhorst and Mr. Sexton to create a resolution regarding a rate increase and bring it to the October meeting for discussion. The Commissioners would like multiple rate comparisons for consideration.

Ms. Zweekhorst informed the Commissioners that we currently wait forty-five days from the billing date before applying late charges to delinquent accounts.

Ms. Zweekhorst is to research what it would take to set up credit card processing.

Mr. Sexton stated that he and Mr. Mundall have been looking into comparing radio-read meters vs. manual-read meters. The radio-read meter package deal that was offered would include ninety-five meters, the software as well as a laptop for $21,000-22,000.00. If the entire District were installed with radio-read meters the approximate cost would be $100,000.00 and would reduce the time from four days currently to one day for all meter reading (if all of our meters were radio-read). Presently the District’s cost for manually meter reading annually is approximately $7488.00. A discussion continued on various aspects of radio read-meters. Mr. Davis and Dr. Hungar would like to see manual-read meters vs. radio-read meters compared visually on paper to compare the two processes.

Dr. Hungar would like to see the money that it would take to set up radio-reads spent on the 51^st street project, since that money could be spent to complete an entire project vs. spending the same amount on radio reads that would only pay for a partial set up.

The minutes of the August 9, 2004, Board Meeting will be held and approved with corrections at the October Board Meeting.

There being no further business the meeting was adjourned at 12:14 am.

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Dr. Hungar called the meeting to order at 9:09 am.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the August 9, 2004

Comprehensive plan public meeting as written. Motion passed.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the August 9, 2004 general board meeting as written. Motion Passed.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $190,520.60, Capital Improvement Fund at $419,416.67,

PWTF at $234,201.88 and Market Rate Account at $313.70. Revenue for the month of September totaled $91,723.17 with $1459.52 in interest payments, $75353.78 in water sales, $10186.77 in CIF. Vouchers No. 0090222 through No. 0090270 in the amount of $38,282.39 were authorized for payment.

Dr. Hungar offered to have Ms. Hungar assist Ms. Zweekhorst writing the meeting minutes.

Ms. Zweekhorst will be contacting Bank of America regarding the deposit fee that is being charged on the District checking account monthly.

Ms. Zweekhorst reported that she has been unable to find any information regarding right-of-way permits included in franchise agreements.

Mr. Sexton reported on the leak at the intersection of N.E. 178^th and N.E. 180^th Streets, stating that it was in the older six-inch steel main, just before it connects to N.E. 180^th.

Ms. Zweekhorst is to research the fees related to the collection of NSF checks.

Mr. Blackwell is to cover for Ms. Zweekhorst while she is in training for the Quick books program.

Ms. Zweekhorst is to look into the benefits regarding a contract employee compared to a regular employee. She will contact the Public Employee Retirement System as to regulations for seasonal/temporary employee benefits. Dr. Hungar stated that Mr. McDonough will stay on as a seasonal employee as long as this can be done without providing a full benefit package.

Mr. Mundall arrived at 10:31 am.

Mr. Sexton reported on the PWTF project beginning on N.E. 185^th Street and the progress with changing the residential service lines on 32^nd Place N.E. and Ballinger Way N.E. affected by the PWTF project.

Mr. Sexton stated that some new houses are to have fires sprinklers installed. A discussion occurred regarding all the options on how the district should proceed with the installation and fees to customers. It was agreed that prior to the end of the year, a new fee schedule should be adopted. The staff recommended that the meters on all buildings with fire sprinkler installations should have a separate valve enabling domestic water service to be turned off without affecting the fire sprinkler service line. Mr. Sexton stated that existing fire sprinkler connections on commercial or public buildings, such as City Hall and on elementary schools, should have their systems updated to include the detector check meter. These should also be installed on all residential fire sprinkler systems.

The staff recommended raising the base rate from $1.79 per ccf to $2.75 per ccf and to consider lowering the fixed fees for water service for those customers who use the least amount of water. The commissioners agreed they would like more information on the effect of these changes on water usage by the customers.

The matter of radio-read meters was discussed. The staff was asked to provide more information, including a breakdown of costs.

Mr. Mundall provided information on regulations governing small, in-house projects. He stated that any project under $25,000 in total costs could be done by the District with public notification 15 days prior to the start of construction.

Regarding the PWTF project on N.E. 185^th Street, Mr. Mundall stated that he has submitted the permit applications to the Department of Health and the City of Lake Forest Park. He also stated that the District will receive the rest of the 2001 PWTF funds in mid-2005. As soon as the permits are granted, we will be ready to advertise a contract for bid. He will contact the District’s attorney regarding the bidding process.

Mr. Currie left the meeting at 11:52.

Mr. Mundall reported that the City has informed him that they do not want new construction during the ten-year period following resurfacing of a street. A discussion followed concerning the effects of this request. This led to a discussion of the future replacement of the water mains on Ballinger Way to the shopping center. The City of Seattle may elect to terminate use of their main on Bothell Way that currently provides fire protection to the center. The District purveyor contract terminates in 2011.

There being no further business the meeting adjourned at 1:15 PM

Commissioners

Commissioners present: Gordon Hungar, Timothy Davis, and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; Jackee Zweekhorst, Office Manager; Richard Donner, Resident.

Dr. Hungar called the meeting to order at 9:04 am.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the September 13, 2004 Board Meeting with corrections. Motion passed.

Mr. Currie moved and Mr. Davis seconded approving the minutes of the October 11, 2004 Board Meeting with corrections. Motion passed.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $207,552.53, Capital Improvement Fund at $435,640.87,

PWTF at $247,025.84 and Market Rate Account at $369.33. Revenue for the month of October totaled $26,339.26 with $1518.74 in interest payments, $21,957.95 in water sales, $2839.07 in CIF. Vouchers No. 0090271 through No. 0090313 in the amount of $26,220.51 were authorized for payment

Four separate water districts are currently serving the City of Lake Forest Park. Dr. Hungar would like the staff to contact the attorney regarding how it is possible to charge a franchise fee to one District within a city but not other Districts.

Ms. Zweekhorst has been experiencing some difficulty contacting technical support for Waterware. The commissioners advised Ms. Zweekhorst to draft a letter regarding her expectations as a client. Mr. Mundall requests that we use caution with Waterware as he is not sure if they are undergoing a merger or a shutdown and we do not want to experience starting a new billing program right now. Mr. Mundall stated that the staff should contact current Waterware users to see what their technical support experiences have been in the past.

The Commissioners would like Ms. Zweekhorst to contact the Attorney to research the specific benefits we are required to offer our employees. (Medical, dental, life insurance, and accidental death coverages.)

The Commissioners have agreed to a discussion regarding all fees charged by the District with a new fee schedule resolution to be adopted in December.

The District is currently being charged a fee from Bank of America for deposited items. Bank of America stated they would contact us to let us know if they can place a permanent credit on the account monthly. Ms. Zweekhorst will contact King County to research what the interest would be for us to leave the funds in their possession.

The Commissioners have agreed that we will no longer use the postage machine of The City of Lake Forest Park . We will manually place stamps on the billing. Ms. Zweekhorst is to send a letter to the City informing them of our intentions.

Mr. Sexton stated that the 32^nd Place meters are 90% complete and a few hours of work are needed for completion on the customer’s side. The two meters need to be connected on Ballinger Way. Dr. Hungar stated that all meters are to be placed in the right-of-way unless we have received an easement. Mr. Sexton stated that he will complete the 32^nd Place project within the month.

Mr. Sexton stated that the crossed meters on 47^th Place were fixed.

The staff stated that it is possible to read the meters in two and one-half days. There is now a meter reading schedule to be followed; the staff will be using the schedule for two months. After that time the staff will review how well the time is being managed using a schedule.

Mr. Sexton stated that Mr. Charles Larkin would be a very capable candidate for the temp/ seasonal worker for meter reading. The District cost would be PERS at approx. $186.00 dollars a year, and his pay rate would be $14.00 an hour.

Dr. Hungar would like the temp/seasonal worker’s priorities to be meter reading and then 185^th/32^nd Place project. Mr. Sexton would like the Commissioners to create a list of projects by priority. Mr. Sexton will do the same for the next board meeting.

Mr. Mundall stated that the DOH engineer quit on short notice; therefore it is holding up the District going to bid on the PWTF project until we get an approval on our specs. We should have the notice from the DOH with in a week. The easements have already been obtained for all of the 51^st & partially for the 47^th project. We need easements on Beach Dr., Feasels Alley, 180^th, and Weathervane Lane. 45^th Place will be the next PWTF project.

The Commissioners would like the staff to send a letter to the Beach Drive residents requesting an easement. If we are unable to obtain easements within a reasonable amount of time, we will consider proceeding as we did on the 32^nd Place NE project.

Mr. Sexton is to obtain estimates on the cost of a poly pipe reel trailer, as well as what it would cost to have a device made to attach to the excavator trailer.

The staff would like the commissioners to approve a brush or trimming fee, when the District has to maintain the landscaping within or around the meter boxes. The staff would like a notice to go out to these individuals requesting that they trim the described area; if non -compliant a second notice is to go out with a $35.00 charge to the account if the District must do the trimming.

The staff would like the Commissioners to approve a fee for turning the meter off for residents that spend half the year in the District and half the year traveling. Currently there is no fee; the staff would like to recommend a $30.00 shut off fee as well as holding the customer responsible to pay the meter charge and CIF fee. When the resident returned for water service they would be responsible for the turn-on fee of $30.00. (This action would be reported on a change of owner form.) The other suggestion would be to pull the meter completely, and the resident would have to pay to re-install the meter.

Mr. Currie left the meeting at 12:45

Dr. Hungar stated that regardless of meter type CIF stays in effect on every property.

Mr. Mundall reported that Larry Jones from Coal Creek Water District as well as Commissioner of Alderwood Water District stated that they will permit us to review the Franchise Agreement that Alderwood Water District has signed.

Mr. Mundall reported that the Brightwater drilling had a problem, the second well casing collapsed and they will be drilling a second hole. There will be a Brightwater meeting held at the District on November 09, at 10 am. The meeting will cover billing, invoicing and specs.

Mr. Mundall reported that the edit on the System Plan should be returned from the DOH before the end of the year.

Mr. Donner stated that SPU decided to stay with manual read meters vs. radio-read meters based on a cost difference of half the price.

Mr. Mundall stated that the engineering is done for the re-piping of the artesian wells. The physical work needs to be scheduled. Mr. Mundall requested that one well be completed first to estimate the time it will take to complete the entire job. Dr. Hungar would like to see this project completed prior to next summer.

A special meeting was scheduled for Wednesday, November 17th at 9:00 am to discuss rate increases and unfinished business.

 There being no further business, meeting adjourned at 1:18 PM

Commissioners

Commissioners present: Gordon Hungar and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Dr. Hungar called the meeting to order at 9:20 am.

Mr. Currie moved approving the agenda.

Dr. Hungar would like all fees combined into one resolution. A discussion continued regarding rate increases.

Mr. Mundall arrived at 9:36 am.

The staff recommends a water unit increase from $1.79 to $2.50, with a base rate reduction from $37.88 to $35.00. The gross amount of income would be approximately $514,683.00. Currently the gross is $447,000.00. These figures were found using four years of customer history. The second option would be increase the water unit from $1.79 to $2.20 and leave the base rate at $37.88. The approximate increase in income would be $47,000.00 annually.

Dr. Hungar would like to review increasing the water unit from $1.79 to $2.15 and leaving the base rate at $37.88. Mr. Currie recommends a 20% increase on water unit and leave the base rate at $37.88.

The Commissioners agreed that the water unit rate will be increased to $2.15 or $2.20 and the base rate will be $ 37.88 or possibly a small reduction. Meters, new water service, and construction will be increased equal to neighboring districts. Fire protection units will pay the full cost of installing water services.

Mr. Currie left the meeting at 11:57 am.

The Commissioners would like a resolution that the District will accept direct debit and credit card payments with the customer accepting all associated processing fees. There will be further discussions at a later date regarding direct debit and credit card payments.

Dr. Hungar contacted Washington Mutual regarding the fees associated with multiple deposits and they stated that Washington Mutual does not service Government Agencies.

The Commissioners have agreed the late fee is to stay at 10% of the current balance. The delinquent payer door hanger fee is $25.00. The disconnect fee is to be increased to $30.00 and the reconnect fee to $30.00. There is to be a maintenance fee of $50.00 for trimming around the meter box for non-compliant customers.

Dr. Hungar would like the current PWTF completed in 2005. Dr. Hungar would also like the next PWTF project application started as soon as possible

Ms. Zweekhorst reported that the District has been in error with PERS and HCA due to policy changes in 1999. We have not paid benefits to Mr. Blackwell for PERS from October 2001-August 2004, and Ms. Zweekhorst for HCA medical benefits from June to November 2004. The Commissioners approved vouchers for retroactive payments of benefits.

There being no further business, meeting adjourned at 1:28 PM.

Commissioners

Commissioners present: Gordon Hungar and William Currie.

Others present: Dan Mundall, Engineer; and Jackee Zweekhorst, Office Manager.

Dr. Hungar called the meeting to order at 10:04 am.

Contract approval

A discussion was held regarding the bidders.

Earthwork is being considered as the winner.

We had considerable references Mercer Island had a ten-year work references and six projects completed.

Mr. Sexton will perform day to day inspections Mr. Mundall will do weekly inspections, change orders and specific inspections.

We are going to start the easiest PWTF and work are way to the hardest therefore our Contractors as well as the District will learn so that we may avoid large mistakes.

Mr. Currie would like Earthwork Enterprises to come to the Board Meeting on December 13, for a professional introduction.

Mr. Mundall will be sending out a letter to all of the bidders stating that we have chosen another Contractor.

Mr. Currie moves to accept the bid from Earthwork Enterprises for the 185^th Street project for the sum of $82,8623.00 plus tax.

Work is to commence at all reasonable speed.

Dr. Hungar seconded the motion.

There being no further business, meeting adjourned at 10:20 AM.

Commissioners

Commissioners present: Gordon Hungar and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Dr. Hungar called the meeting to order at 9:20 am.

Mr. Currie moved and Dr. Hungar seconded approving the minutes of the November 08, 2004 Board Meeting with corrections. Motion passed.

Mr. Currie moved and Dr. Hungar seconded approving the minutes of the November 17, 2004 Special Meeting with corrections. Motion passed.

Ms. Zweekhorst reported that after payment of vouchers the funds had the following balances: Maintenance Fund at $207,552.53, Capital Improvement Fund at $435,640.87,

PWTF at $247,025.84 and Market Rate Account at $220.75. Revenue for the month of November totaled $58,479.20 with $1597.60 in interest payments, $42,079.67 in water sales, $8453.24 in CIF. Vouchers No. 0090314 through No. 0090373 in the amount of $35,127.51 were authorized for payment

Ms. Zweekhorst reported that the Waterware billing program is working fine with no problems at this time.

Mr. Blackwell was contacted by WETRC the school the staff attends for confined space training. WETRC stated that we are within their guidelines for a reduced fee of $15.00 a class, we had been paying a full fee for classes of $140.00.

Mr. Sexton reported that the 32^nd place project was completed from the Districts opinion. Although 18529 32^nd Place needs to be hooked up and soldered by a licensed plumber. The charges for a licensed plumber at 18529 32^nd Place will be at the Districts expense based on the District wanting new water lines and meters installed.

The leak on Ballinger Way has been repaired and closed up, The City of Lake Forest Park sent us a letter with the permit stating that if we dig prior to a permit we will incur double the charges.

Mr. Sexton reported that there is a leak on 180^th Street we are waiting to receive the easements as well as the plans in order to replace the main and turn-off the water to the leak.

Charles Larkins and Graham will be reading meters so that Tony and Roy can work on projects.

Mr. Sexton stated that regarding Easement agreements 51^st is done 180^th is partially completed, Beach Drive should be the next project the residents need to be notified if we do not get a letter giving permission or Easements we will turn the water line off. We will put meters at end of street and residents will need to come to us.

Mr. Mundall reported that resident Lotion is agreeable to an easement, Judge Libby there could be a potential problem acquiring an easement. We could use the utility easement that is on that street although we will still be looking at a potential problem with Judge Libby.

The Commissioners have approved a $10,000.00 spending account for Mr. Sexton to purchase tools that are needed for the District. Mr. Sexton and Mr. Mundall found a construction mole for $2700.00; the current rate for this piece of equipment is $5-7K.

Mr. Sexton reported that the poly pipe trailer is painted and possibly ready for pick up.

All permits have been acquired they are all good for a year, Mr. Sexton has all of the permits so he can work from project to project for some time.

The policy for the Small Works Roster is Companies requesting to be placed on the Small Works Roster need to contact us to be rolled over from year to year with a current copy of Insurance provided.

The Small Works Roster is not needed for Maintenance or Architectural projects.

Ms. Zweekhorst is to provide Mr. Mundall with the email that was sent from the State Auditor’s office as well as the attachment giving the state guidelines on Small Works Roster requirements.

Mr. Mundall stated the PWTF contract has been awarded to Earthwork Enterprises of Mukilteo. There bid was the lowest at $82.862.00 plus tax, we are waiting for proof of insurance to be received within ten days. Legislation states ten days from the award letter proof of insurance must be received or project will be awarded to the next bidder accepted which could be R & J Landscaping.

Mr. Mundall stated that the permit submission for the 45^th Place project should be submitted to DOH & LFP this week. Regarding the bid contract the forty days is from the date of notice to proceed not the award date. The PWTF project will be started mid January 2005. The next PWTF project to be started will be 45^th Place the following project will be 187^th Street. Mr. Mundall stated that he spoke to DOH they will have the submittal in January 2005 DOH has had changes so we will need to edit the submittal and return to them. All mail to DOH should be sent registered return receipt. DOH sanitary should be completed prior to next sanitary review. Mr. Sexton and Mr. Mundall stated that when construction starts they would like to keep track of the material and time frame for the first project. The PWTF sub-drain needs to be placed prior to construction possibly May 05.

Mr. Sexton requests looking into a bore and acquiring estimates from contractors for the WHPA.

The Commissioners agreed upon Resolution Number 303 including Exhibit "A" with a maintenance fee of $75.00 for trimming. The Commissioners would like the right-of-way ordinance reviewed by staff. The staff is to provide a diagram of meter box area with the letter sent for trimming. The trimmings are the customer’s responsibility regarding removal. The Commissioners agreed upon Resolution Number 302 with meter charges decreasing by $.44 cents and water rates increasing $.41 cents. All water consumed will be at $2.20/100 cubic feet.

The Commissioners would like to come in later in the week to sign Resolutions 302 and 303 that have been approved. The Commissioners would like Ms. Zweekhorst to research the Fire Flow charge with regards to new meter installs.

Ms. Zweekhorst stated that the State Auditor’s Office stated that if there is going to be retroactive pay within the District we need a policy. Currently Employee’s are issued retroactive pay for education accomplishments. Ms. Zweekhorst will draft a Resolution for retroactive pay with regards to employee education.

There was discussion regarding additional Resolutions, The staff is happy with Resolution findings. The Resolution Numbers 302 and 303 will go into effect January 1, 2005.

The Seattle & King County Public Health tested are soil, the Tacoma Smelter incidence found are arsenic and lead below the State cleanup levels.

The painting outside of the standpipe will be done. Dan is waiting for the transfer pump and booster. Painting on inside as well as welding outside will be started in winter 2005. Mr. Currie would like the pump installed as soon as possible one received.

The Commissioners would like the anti-corrosion system done; it is approximately a two-day project.

The DOH would like the small wood tank dealt with in the same standards as the high and low tanks. When flushing the well we use the stand by tank for dumping, Options for the small wood tank would be demolition or contact someone interested in removing the small wood tank. At a later date the small wood tank could be replaced with a plastic tank.

Mr. Mundall reported that the SCADA system is continually be upgraded, the office computer keeps crashing. Mr. Mundall is investigating the problem occasionally a reboot is needed.

The Commissioners would like to add on to the existing building and continue on to a three-car garage for additional interior office storage. The staff is to research cost comparison as well as product life for carpeting vs. laminate flooring.

The staff reported the WHPA south side of the property is in need of a hedge or thorny bushes to keep trespassers off the property.

The Commissioners requested that the staff make arrangements for storage water the District contract with Shoreline expires in 2007/2008.

There is a Franchisee fee meeting scheduled with the City of Lake Forest Park on Tuesday, December 14. The discussion should cover permits; ROW, fire hydrants & small routine water services are being negotiated for no fee. Dr. Hungar would like the binding clause removed from the franchise agreement.

Ms. Zweekhorst reported that the Brightwater billing was forwarded to King County in the amount of $48,919.65.

There being no further business, meeting adjourned at 1:40 PM.

Commissioners

Commissioners present: Gordon Hungar and William Currie.

Others present: Dan Mundall, Engineer; Tony Sexton, Superintendent; and Jackee Zweekhorst, Office Manager.

Dr. Hungar called the meeting to order at 9:05 am.

Mr. Currie nominated Dr. Hungar to president of the Board Mr. Davis seconded by telephone. Approved.

Dr. Hungar moved to raise the Superintendent’s salary Mr. Sexton will receive a three and one-half percent increase associated with the current cost of living. Mr. Currie seconded.

Dr. Hungar moved that Mr. Currie be nominated as Secretary Mr. Davis seconded.

Mr. Mundall arrived at 9:25 am.

A discussion was held on resolutions 302 is adopted with minor changes, Mr. Currie moved Dr. Hungar seconded. Commissioners approved.

Resolution 304 and 305 are on hold until Mr. Mundall and Mr. Sexton provide changes.

Dr. Hungar would like the application for the PWTF 45^th Place project started prior to Mr. Mundall leaving for vacation.

Mr. Mundall will be at the construction site two-three times a week to inspect on District behalf. Mr. Sexton will be present on the project daily.

There being no further business, meeting adjourned at 12:30 PM.

Commissioners