North Kootenai Water District

June 21, 2007

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

Tom Crimmins, Director

Linda Davis, Director/President

Richard Fairhurst, Director/Secretary

Maimie Moore, Director

Staff Present: Mike Galante, District Manager

Laura McAloon, District Attorney (1:03)

Phil Boyd, District Engineer (12:45)

Visitors: None

B. Consent Agenda:

1. Minutes of 06/07/07 Board Meeting

2. Bills for May, 2007

3. Financial Statements for May, 2007

Approve Consent Agenda.

Director Crimmins – motion, Director Moore – second.

Approved unanimously.

C. Oral Communications:

None

D. Written Communications:

None

H. District Manager – Mike Galante:

1. HHOA Project:

Lakes Highway District wants to repave full width of Lower Hayden Lake Road. Project required to pave ½ of roadway – remove from Norm’s contract, give value to Lakes.

Starting Tobler/Half Mile roads. Installing temporary services and issued preventative boil order.

On June 4, 2007, there were 52 contract days left; probably won’t make deadline.

Liquidated damages are $500 per day. Engineer to make $500/day work for his costs. Contractor is working 6 days per week. The contractor will be required to pay for extra day’s inspection. NKWD asking bid cost for pipe bursting.

2. Point Hayden Main Replacement:

A Memorandum of Understanding prepared and waiting to be signed. NKWD commitment is $55,000 with anything over to be paid by the City of Hayden Lake.

3. Twin Lakes Well:

New pipeline is into well field. New #2 pump will be installed on 06/25/07. Pipeline is 30 days ahead of schedule.

Twin Lakes Golf Course Clubhouse – need to move 400± of 4” pipe out of new parking lot work area; replace with 8” in Fir Lane. Golf Course may pay for labor.

4. Lakeland School/Pond’s:

Letter of Credit from the Pond’s developer is $102,421. Need to find Lakeland agreement to $60,000 L.I.D. The Pond’s obligated to L.I.D. by annexation agreement.

5. Chateau DeLoire:

Development is on Hwy 97. Preliminary engineering study by Rob Tate presented. A Memorandum of Understanding for NKWD to own & operate water and sewer systems to be developed. NKWD to get costs up front for engineering review expenses.

E. Treasury Report:

Discussed 3-year Capital Improvement Plan.

F. District Attorney – Laura McAloon:

1. Executive Session:

Into Executive Session at 1:52 p.m. (Phil Boyd left meeting at 1:52 p.m.)

Out of Executive Session at 3:14 p.m. (Phil Boyd returned to meeting at 3:15 p.m.)

Discussed personnel matters.

Director Fairhurst left meeting at 3:15 p.m., Director Crimmins continued taking minutes.

2. Water Rights – Sierra Club Protest:

Tried to get progress update but Attorney (Peter) not available.

3. Conservation Plan:

Nothing new.

Staff:

10. Gozzer Ranch:

Scheduling an on-site review. Transfer of water & sewer assets is moving forward. NKWD may consider options to contract operation if operator is not on staff.

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

1. SH-41 Transmission Line – Twin Lakes:

Project ahead of schedule – main to be pressure tested.

2. Conservation Plan:

Draft by 07/01/07.

3. Capital Improvement Plan:

Reviewed by Board.

4. Panhandle Mobil Estates:

Review in progress.

Staff:

2. Forest Ridge Subdivision:

Staff to review request of waiver of Capitalization fees for 2 irrigation meters.

I. Board Members:

No items.

J. Adjournment:

Meeting adjourned at 4:09 p.m.

Director Berger – motion, Director Moore – second.

Approved unanimously by those present.

Richard Fairhurst, Secretary/Treasurer