North Kootenai Water District

June 15, 2006

Board Meeting Minutes

A. Call to Order/Roll Call:

Meeting called to order at 12:33 p.m. by President Davis.

Present: Jack Berger, Director/Vice President

Tom Crimmins, Director

Linda Davis, Director/President

Richard Fairhurst, Director/Secretary

Maimie Moore, Director

Staff Present: Phil Boyd, District Engineer

Bob Covington, District Attorney

Mike Galante, District Manager

Visitors: Steve Kunas – Parkwood Business Properties

Kathryn McKinley

Art Macomber – Private Attorney

B. Consent Agenda:

1. Minutes of 05/18/06 and 06/01/06 Board Meetings and 05/11/06 Special Meeting.

Approve Consent Agenda including Bills for May 2006, and Financial Statements for May 2006.

Director Crimmins – motion, Director Berger – second.

Approved unanimously.

C. Oral Communications:

Steve Kunas – Parkwood Business Properties: Discussed the inequity in the new rate structure as it is applied to inherently high volume users. Staff to discuss with Steve the problem. Board to discuss the apparent problem for large water users.

Kathryn McKinley – Gozzer Ranch: Petition for annexation of Squaw Bay & Gozzer Ranch delivered. Sewer system designed for 560 ER’s, enough to handle Arrow Point, Gozzer Ranch, and Squaw Bay. Meeting will be set up after Gozzer Ranch puts up deposit and rate study is completed. Attorney Covington to set up public hearing on annexation.

Mike Galante: HARSB wants to put a repeater antenna on the Clark View tank. Attorney to check if there will be conflict with other existing antenna and bring back to next meeting.

D. Written Communications:

District Manager distributed a copy of Coeur d’Alene’s Consumer Confidence Report for review.

E. Treasury Report / 3-Year Capital Improvements:

District Engineer distributed updated copy of 3-Year Capital Improvement Plan for review.

F. District Engineer – Phil Boyd, P.E.:

1. Lancaster Realignment:

Our relocation plans will be completed by the end of June. Project should be under $100,000.; three quotes will be obtained.

2. Point Hayden Mains:

Inform City of Hayden Lake that we are withdrawing our commitment and the $450,000 will be returned to General Fund for use on other NKWD projects.

Director Crimmins – motion, Director Fairhurst – second.

Approved unanimously.

3. Selkirk Meadows:

Rescind Atlas Road pipeline route decision of last meeting.

Director Crimmins – motion, Director Moore – second.

Approved unanimously.

Express to developer our willingness to help with acquiring easements.

4. Hillside Reservoir:

Weather holding up progress. Completing site drainage. Project needs longer ladder (+$564.) and site disturbance bond (+$1,000.).

5. QLPE Discussion:

Engineer to put together fee schedule for subdivision water system inspection. Attorney to review QLPE requirements. Approve draft QLPE document.

Director Berger – motion, Director Crimmins – second.

Approved unanimously.

G. District Manager – Mike Galante:

1. HHOA Project – Award – Lakes Hwy:

Contract awarded to Norms. Lakes Highway District Board reviewed and approved agreement.

2. Leisure Park:

Water connection to NKWD to be discontinued on August 1, 2006. Membership apparently wants to join NKWD.

3. Vacuum Truck – Lease/Purchase:

Manager to bring back proposal for lease/purchase or purchase at next meeting.

4. Lakeland School District:

Lakeland accepted agreement for additional pipeline to Rice Road/Pinehurst. NKWD to issue Conditional Will Serve letter if model shows 2,370 g.p.m., at 20 p.s.i., at current Twin Lakes development.

Director Berger – motion, Director Crimmins – second.

Approved unanimously.

H. District Attorney – Bob Covington:

Into Executive Session at 3:52 p.m.

Out of Executive Session at 4:14 p.m.

Discussed Agenda Items H1, H2, and H3.

1. Lancaster Well #3:

See above.

2. Water Rights – Sierra Club Protest:

See above.

3. IDEQ Loan Application:

Approve Task Order for HHOA project inspection.

Director Berger – motion, Director Moore – second.

Approved unanimously.

4. Resolution – Cap Fee Increase:

Resolution signed – previously approved.

5. Resolution – Rate Changes:

Resolution signed – previously approved.

Staff:

13. Easement to Rimrock Road/Dodd Road:

Accept Brendis and St. Peter easements.

Director Berger – motion, Director Moore – second.

Approved unanimously.

11. Fox Hollow:

Plans being reviewed.

I. Board Members:

No items.

J. Adjournment:

Meeting adjourned at 4:40 P.M.

Director Moore – motion, Director Berger – second.

Approved unanimously.

Richard Fairhurst, Secretary/Treasurer