North Kootenai Water District

September 7, 2006

Board Meeting Minutes

A. Call to Order/Roll Call:

Meeting called to order at 12:30 p.m. by President Davis.

Present: Jack Berger, Director/Vice President

Linda Davis, Director/President

Richard Fairhurst, Director/Secretary

Maimie Moore, Director

Excused: Tom Crimmins, Director

Staff Present: Phil Boyd, District Engineer

Bob Covington, District Attorney (12:35)

Mike Galante, District Manager

Visitors: None

B. Consent Agenda:

1. Minutes of 08/03/06 and 08/17/06 Board Meetings

2. Bills for August 2006

3. Financial Statements for August 2006

Approve Item #1 of the Consent Agenda. Hold Items #2 & 3 until 09/21 meeting.

Director Berger – motion, Director Fairhurst – second.

Approved unanimously by those present.

C. Oral Communications:

1. Public Hearing – 2006/07 Budget:

Opened at 12:43 p.m.

Properly noticed and taped. No oral or written comments.

Closed at 12:44 p.m.

2. Point Hayden Mains:

City of Hayden Lake meeting on area improvements held on 09/05/06 at 7:00 p.m.; 65 of 100 attending answered survey questions: 8 residents wanted $10,000 per lot for improvements, 11 wanted to spend $4,000 per lot, and 46 wanted $0 per lot.

Questions for NKWD – would we replace all piping without L.I.D.? No by Board vote, but, will look into replacing bad section as it fits into Capital Improvements Plan.

D. Written Communications:

1. Susan Kirk – 8622 N Starr Loop:

She had a leak in her irrigation system and can’t afford to pay bill. Let her pay over 6 month period, cut bill per leak repair policy, turn off sprinklers and not use, and try to reduce her bill per indigent fund policies.

2. Newspaper Article, RE: East Seasons Acres Lack of Water per Shelly Wright:

Put pressure recorder on system during next hot spell.

3. Fernbrook Subdivision – Dr. Ernest Folks:

Confirm ‘Will Serve’ letter sent on 09/06/06 for Fernbrook Subdivision – lot split for Dr. Ernest Folks.

E. Treasury Report / 3-Year Capital Improvements:

Hold to next meeting.

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

1. Hillside Reservoir:

Wall up, waiting for crane for roof panels. Leak test on week of 09/18/06.

2. Gozzer Rate Analysis:

Will be completed in two weeks.

3. Arrow Point Annexation:

Letter and petition going to Arrow Point residents on 09/07/06 to be signed by President.

Staff:

2. East Seasons Road Reservoir:

Design to be completed by the end of September.

5. Flow Chart – Developers:

Ready by 09/21/06 meeting.

13. Lakeland School/Pond’s:

Attorney to give ’Letter Of Credit’ (Bonecelli) to District Manager.

17. Lakeland School District:

Current construction problems resolved. School to re-solicit bids for 8” pipe for Board approval.

14. Lancaster Realignment:

Easements not yet secured.

4. Selkirk Meadows:

Doing poor job on pipeline.

15. Leisure Park:

Residents to meet on 09/30/06; RE: getting water from North Kootenai Water District.

G. District Manager – Mike Galante:

1. HHOA Project:

Will be 60% complete by this year – project completion date should be 10/29/06.

Sub-contractor, SI Construction – Mike Sperly. Our engineer and attorney will generate their bills to date.

Approve Pay Request #1 (15%) for $179,615.79.

Director Fairhurst – motion, Director Moore – second.

Approved unanimously by those present.

2. Budget 2006/07:

Published 08/23/06. Approve Budget.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

Purchase ¾ ton GMC pickup for $26,998.40.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

3. Gozzer Ranch:

Hired operator from HARBS for sewer and water. Repairing leak in overflow sewer pond. Developer has not delivered list of assets. Special meeting on 09/15/06 for site inspection.

4. Forest Ridge Subdivision (Rimrock):

Off-site improvements moving ahead nicely.

5. Dodd Road:

Hazzard paid $2,500 of $5,000 needed for Improvement Study.

Staff:

10. Wal-Mart:

No news.

H. District Attorney – Bob Covington:

1. QLPE Discussion:

Using approved document with actual per-project costs.

2. Lancaster Well #3:

Hearing date on 10/19/06.

3. Water Rights – Sierra Club Protest:

Reconciliation meeting on 09/21/06. Gathering usage data for amending permit request from 2 cfs to 4 cfs (after 09/21/06 meeting).

4. Dalton Gardens Inter-Tie:

No action.

5. Ordinance 99-4:

Approve amendment to Ordinance 99-4.

Director Moore – motion, Director Berger – second.

Approved unanimously by those present.

6. Annexation of Honeysuckle Glades and Selkirk Meadows:

Approve publishing for annexation of Honeysuckle Glades and Selkirk Meadows.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

7. Annexation of Gozzer Ranch and Lake Club:

Approve annexation of Gozzer Ranch Golf & Lake Club.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

Staff:

6. Potts – Settlement:

Meeting on 09/25/06.

H. Board Members:

1. Director Fairhurst – Missing Resolutions:

Reconciled differences with Attorney.

Into Executive Session at 4:18 p.m.

Out of Executive Session at 4:36 p.m.

Discussed personnel matters.

Increase Manager’s salary to $68,000 per year effective 10/01/06.

I. Adjournment:

Meeting adjourned at 4:45 P.M.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

Richard Fairhurst, Secretary/Treasurer