North Kootenai Water District

August 20, 2009

Board Meeting Minutes

A. Call to Order/Roll Call:

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

Present: Tom Crimmins, Director/President

Richard Fairhurst, Director/Secretary

Alanna Grimm, Director

Jack Hern, Director

Shirley Stoller, Director/Vice President

Staff Present: Mike Galante, District Manager

Phil Boyd, District Engineer

Mike Ormsby, District Attorney

Visitors: James Mulligan – Ohio Match Customer

Sandy Young – The Falls at Hayden Lake

B. Consent Agenda:

1. Minutes of 08/06/09 Board Meeting

2. Financial Statements for July 2009.

3. Bills for July 2009.

Approve consent agenda.

Director Stoller – motion, Director Grimm – second.

Motion approved unanimously.

C. Oral Communication:

1. James Mulligan – Requesting relief from costs of water service leak on property. Use standard leak policy for May, June, July and August billings.

Director Hern – motion, Director Stoller – second.

Motion approved unanimously.

D. Written Communications:

1. Annexation request and request for service for Fox Hollow subdivision (Rimrock Road), consisting of 60 lots. A Public Hearing will be held on 09/17/09.

Director Stoller – motion, Director Hern – second.

Motion approved unanimously.

Attorney to review documents.

E. Treasury Report:

None.

F. District Attorney – Mike Ormsby:

2. The Falls at Hayden Lake – Late Comer’s Agreement:

The Agreement is not yet ready. The Developer will front $50,000. The Will Serve letter has been signed. Approved Late Comer’s agreement. Finalize Memorandum of Understanding (MOU) in 15 days; $398,000 yet due. Approve development agreement; $50,000 down, 15 day delay on balance.

Director Hern – motion, Director Grimm – second.

Motion approved unanimously.

Approve Late Comer’s Agreement in principal and authorize President to sign final agreement.

Director Hern – motion, Director Grimm – second.

Motion approved unanimously.

3. 4-S Ranch:

Idaho Department of Environmental Quality (DEQ) wants L.I.D. before loan commitment. The 4-S Ranch wants a 30 year loan term. DEQ wants additional town meeting on 09/09/09 or 09/10/09.

5. Twin Lakes Dock Association – Dismissal:

Document executed – NKWD no longer named in suit.

4. Employment Decision/Employee Manual:

To be handed out to Board for review. Adopt by resolution. Original draft from ICRMP.

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

1. Project Status:

See 08/19/09 project status report.

2. Bond Market/SRF Analysis:

District Engineer to check into alternate sources of funds for revenue bonds.

H. District Manager – Mike Galante:

1. Wal-Mart:

Open building bids on 09/10/09.

F. District Attorney – Mike Ormsby:

1. Executive Session:

Into Executive Session at 2:30 p.m. (Idaho Code 67-2345b).

Director Stoller – motion, Director Grimm – second.

Motion approved unanimously.

Phil Boyd and Mike Galante left meeting.

Out of Executive Session at 4:55 p.m.

Discussed personnel.

Uphold discipline of Brad White as proposed by District Manager.

Director Hern – motion, Director Grimm – second.

Ayes: Director Hern, Director Grimm, Director Crimmins

Nays: Director Fairhurst, Director Stoller

Establish Construction/Maintenance III position with $23.26 as top step in matrix.

Director Hern – motion, Director Grimm – second.

Motion approved unanimously.

Establish employee review committee, Director Crimmins and Director Stoller.

Mike Galante returned to meeting.

H. District Manager – Mike Galante:

3. ICRMP Reimbursement:

Determination by ICRMP next week.

4. City of Hayden – Special Use Permit:

City has approved special use permit for well building.

2. Verizon LOI:

Try to negotiate elimination of free water.

I. Board Members:

No items.

J. Adjournment:

Meeting adjourned at 5:14 p.m.

Director Stoller – motion, Director Grimm – second.

Motion approved unanimously.

Richard Fairhurst, Director/Secretary