LAKE FOREST PARK WATER DISTRICT
      GOOD WATER NATURALLY

LAKE FOREST PARK WATER DISTRICT
MINUTES OF A SPECIAL MEETING OF THE
BOARD OF COMMISSIONERS
January 24, 2011

A special meeting of the Board of Commissioners was held at the District office located at 4029 N.E. 178th St., Lake Forest Park, WA at 2:00 pm on Monday, January 24, 2011.  Notice of the meeting was posted on the front door of the District office and emailed to the Commissioners at least 24 hours prior to the meeting.  Commissioners Timothy Davis, William Currie and Dr. Julie Hungar were present.  Also present were Alan Kerley, District Water Manager; Dan Mundall, engineer; Bill Donahue, volunteer advisor to the Board, and Richard Jonson, counsel.  Accounting firm representatives also attend parts of the meeting as described below.  

Mr. Davis called the meeting to order at 2:00 pm.

Office Administration Discussion.  Mr. Mundall stated that during the recent audit conducted by the State Auditor’s office, he was requested to check on an item purchased from Costco and reimbursed to the office administrator from District funds.  Costco purchase records were then circulated and he said that led to further examination of records by Mr. Kerley and him. Mr. Kerley stated that he also  reviewed District payroll records and further examination by a professional accountant is needed.  

Interview and Selection of Accounting Firm. At 2:15 pm, Kim Fyfe and Dale Bonn of Vine Dahlen Co. co entered the meeting.  They presented their qualifications and hourly rates to perform accounting services for the District and discussion concerning the District’s needs for accounting services their capabilities followed. Mr. Jonson stated that the District was interviewing more than one accounting firm and that a selection decision would be made within the next day or so. Ms. Bonn stated that she would prepare an email tomorrow summarizing her firm’s availability and hourly rates.  Ms. Fyfe and Ms. Bonn left the meeting 2:50 pm.  

Discussion followed concerning the District’s accounting procedures.

At 3:00 pm,  Kim Lamson from Werner O’Meara & Co. entered the meeting and she presented her firm’s qualifications and hourly rates.  Discussion of the District’s accounting needs and her firm’s capabilities followed. Mr. Jonson advised that the District was interviewing more than one firm and would make a selection decision within the next day or so.  Ms. Lamson stated she would prepare an email summarizing her firm’s rates and qualifications and left the meeting at 3:45 pm.

Mr. Kerley reviewed the District’s insurance coverage through the Water and Sewer Risk Management Pool.  Discussion of using an accountant provided by the insurance pool versus an accountant engaged by the District was discussed.

Mr. Davis moved and Dr. Julie Hungar seconded having the District engage an accounting firm to inspect District records and provide accounting assistance.  The motion passed unanimously.

After discussion, Mrs. Hungar moved and Mr. Davis seconded a recommendation that the firm of Werner O’Meara & Co. be engaged to provide the District with accounting assistance and authorized Mr. Kerley to engage that firm on an hourly basis if, after reviewing the emails from those firms, the rate and availability information received is consistent with that presented at the meeting.  The motion passed unanimously.

Performance of Office Administrator.  At 4:06 pm, Mr. Davis announced an executive session for approximately one-half hour to discuss the performance of the District’s Office Administrator.  Mr. Donahue then left the meeting.  

At 4:34 pm, the executive session was concluded and the regular session of the meeting was reconvened.

Mr. Jonson recommended that the District’s credit card be cancelled and that the District engage a payroll services provider as soon as possible.  The following motions were adopted on an emergency basis.

Mr. Davis moved and Mrs. Hungar seconded a motion to close the District’s VISA credit card issued by the Bank of America and directed Mr. Kerley to prepare a resolution for signing. The motion passed unanimously.

Mrs. Hungar moved and Mr. Davis seconded a motion authorizing Mr. Kerley to engage, on behalf of the District, a highly qualified payroll services provider, such as ADP or Paychex, for assistance with District compensation payments and preparation of payroll tax returns.

Next Meeting. The Board agreed to next meet on Wednesday, January 26, 2011 at 3:00 pm at the District office.  

There being no further business, Mr. Davis adjourned the meeting at 4:50 pm.