MINUTES OF REGULAR MEETING

OF THE BOARD OF COMMISSIONERS OF

COAL CREEK UTILITY DISTRICT

OF KING COUNTY, WASHINGTON

Held January 25, 2006

A regular meeting of the Board of Commissioners of Coal Creek Utility District was held at the District office, 6801 132nd Place SE, Newcastle, Washington, on January 25, 2006. The meeting was called to order by Commissioner Martin at 5:00 p.m. Commissioners Anderson and Kunkel were present. District Staff Tom Peadon, Larry Jones and Pam Nelson were also present. John Milne, general counsel, and Marty Penhallegon, District Engineer, were also present.

CONSENT AGENDA

Approval of minutes – regular meeting of January 11, 2006.

Anderson made a motion to approve the consent agenda. Kunkel seconded the motion which was carried unanimously.

CITIZENS’ COMMENTS AND CONCERNS

There were no comments from the citizens in attendance.

BELLAH SEWER SERVICE

The Board had discussed sewer service to the Bellah property located at 11329 Newcastle Way, Newcastle, Washington, at the January 11, 2006 meeting. The existing home on the property was now connecting to an adjacent sewer main and would receive gravity sewer service from that line. However, if the property was subdivided in the future, the property owner would be required to extend the sewer lines in SE 68th to the property or, if the line was installed in SE 68th by others, pay a latecomer reimbursement charge or a local facility connection charge as appropriate to connect the property as subdivided to that line. The preparation of an agreement to be recorded against the property to that effect had been discussed at the prior meeting, but Jones now recommended that the agreement was not necessary because District policy in effect at the time the property may be subdivided in the future would apply to the sewer service request at that time. Following discussion, the Board concurred and no special agreement will be required for the property at this time.

BELLEVUE INTERLOCAL AGREEMENT

Peadon advised regarding the status of the negotiations on various matters with the City of Bellevue relating to the City’s partial assumption of the District. Peadon advised that the City was requesting additional information regarding the Coal Creek sewer interceptor line which the District had conveyed to King County and records will be made available for inspection by City representatives at the District on February 1, 2006.

ATTORNEY’S COMMENTS

Milne advised that King County Water District No. 111 had proposed a presentation to the King County UTRC regarding water-sewer districts to educate that committee regarding districts. Milne and an engineer from the Roth Hill Engineering firm had been requested to prepare and make a presentation to the UTRC if the UTRC wanted the presentation. Water District 111 proposed to share the cost of the legal and engineering time for the presentation with other districts in King County who would also benefit from the presentation and supported the undertaking. Following discussion, the Board took the matter under advisement pending an invitation from the UTRC to make the proposed presentation.

OFFICE MANAGER’S COMMENTS

Nelson confirmed the schedule of the Board’s retreat/special board meetings at the Wild Iris Inn in La Conner, Washington on February 23 and 24, 2006. Staff will provide the commissioners with additional information prior to and at the retreat.

MANAGERS’ COMMENTS

Peadon advised that the District had been invited to jointly own an easement maintenance machine with the ValVue Sewer District and the Southwest Suburban Sewer District. Peadon had provided a draft interlocal agreement to the engineer and attorney for review and comment and will provide further information regarding the proposal at the next regular Board meeting.

Peadon advised that the Water and Sewer Risk Management semi-annual meeting would be held in March, 2006 and he had been invited to run for an officer position on the Board. He requested input from the Board whether the Board supported his involvement in that organization. Following discussion, because of the benefits to the District from Peadon’s involvement in that organization, the Board supported his candidacy for an officer position on the Board.

COMMISSIONER’S COMMENTS

Martin supported the District sending a letter to King County regarding the proposed regional water system plan feeling that an additional plan was not necessary. Peadon advised he will discuss the matter with the executive director of the East King County Water Association and would report back to the Board at the next regular meeting.

Martin advised that she would attend the next MWPAAC meeting to be held on February 1, 2006.

Martin reported on her attendance at the last State Association Section IV meeting.

Martin reported on her attendance at the recent Newcastle Chamber of Commerce Board meeting.

Kunkel advised that he would not be able to attend the next East King County Regional Water Association Board meeting to be held on January 26, 2006, but Peadon will also be attending that meeting and could report back to the Board.

ADDITIONAL CITIZENS COMMENTS AND CONCERNS

There were no comments or concerns from the citizens in attendance.

APPROVAL OF VOUCHERS

The Board approved for payment Water/Sewer Maintenance Fund Voucher No. 36351 in the amount of $689.88.

The Board approved for payment Water/Sewer Maintenance Fund Voucher Nos. 36352 though 36373 in the amount of $11,156.15.

OTHER DISTRICT BUSINESS

As there was no further business or persons to be heard, the meeting was adjourned at 6:10 p.m.

Richard D. Anderson, Commissioner

Pamela A. Martin, Commissioner

Douglas C. Kunkel, Commissioner