North Kootenai Water District

December 21, 2006

Board Meeting Minutes

A. Call to Order/Roll Call:

Meeting called to order at 12:32 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 (12:42 p.m.)

Mike Galante, District Manager

Mike Ormsby, District Attorney

Visitors: None

B. Consent Agenda:

1. Minutes of 12/07/06 Board Meeting

2. Minutes of 12/12/06 Special Board Meeting

3. Bills for November 2006

4. Financial Statements for November 2006

Approve Consent Agenda.

Director Berger – motion, Director Moore – second.

Approved unanimously.

C. Oral Communications:

None

D. Written Communications:

4. Letter (12/20/06) from Evelyn Bruins asking for backup generator on Hayden Orchards system. Manager directed to send letter stating that high initial and on-going costs keep us from providing back-up generator.

5. Idaho Division of Environmental Quality letter requesting that all customers receive a letter notifying them of possible contamination during recent extended power outage. Letter sent but all NKWD systems tested negative for bacteria.

F. District Attorney – Mike Ormsby:

1. Executive Session:

Into Executive Session at 12:41 p.m.

Out of Executive Session at 1:59 p.m.

Discussed existing and potential litigation matters.

Approve Resolution #2006-11, setting Public Hearing for Arrow Point annexation at 12:30 on 01/18/07 at North Kootenai Water District office.

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

1. SH-41 Transmission Line – Twin Lakes:

Manager to offer Mr. Scarcello $2,000 for needed property at SW corner of SH-41 and Twin Lakes Drive.

2. Wal-Mart:

Northern Lakes Fire Protection District states that required fire flow in now 2,000 g.p.m. – 1,200 g.p.m. for building sprinklers and 800 g.p.m. for fire hydrants. Require stand-by generator on Hayden Well #2 and GTE Well and new electric fire pump.

3. Gem Shores/Hayden Haven:

Several rate structures handed out and analyzed. Send Option #5 (70% depreciation) to residents.

Director Berger – motion, Director Moore – second.

Aye: none

Nays: Director Crimmins, Director Fairhurst, Director Davis, Director Moore, Director Berger

Send Option #2 (50% depreciation) to residents and add tiered structure.

Director Moore – motion, Director Berger – second.

Approved unanimously.

E. Treasury Report / 3-Year Capital Improvements:

Hold to next meeting.

H. District Manager – Mike Galante:

1. Billing Hardware/Check Scanner:

Discussed costs/benefits of new software and machinery.

Go to letter billing; buy equipment and software.

Director Crimmins – motion, Director Berger – second.

Approved unanimously.

2. Rate Increase – Valley Green:

Manager/Attorney to review service agreement for recovering other costs (street lights & park maintenance).

3. Scarcello Easement:

See item G1.

Staff:

19. HHOA Project:

Approve Change Order #7 – culvert installation, water services relocation, added days and roadway changes - $13,715.96.

Director Berger – motion, Director Moore – second.

Approved unanimously.

H. District Manager – Mike Galante:

4. Bodine Acres Subdivision (added item):

President Davis removed herself from the room.

Developer, Copper Basin, to provide stand alone sewer and water system. Existing well on site has 4.0 cfs water right. Will have 750 homes at build out.

Directors interested in pursuing discussions for operation/ownership of sewer and water systems.

Director Crimmins – motion, Director Moore – second.

Approved unanimously by those present.

President Davis returned to meeting.

I. Board Members:

None

J. Adjournment:

Meeting adjourned at 4:10 p.m.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

Richard Fairhurst, Secretary/Treasurer