MINUTES OF REGULAR MEETING

OF THE BOARD OF COMMISSIONERS OF

COAL CREEK UTILITY DISTRICT

OF KING COUNTY, WASHINGTON

Held February 8, 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 February 8, 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 25, 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.

EAST KING COUNTY REGIONAL WATER ASSOCIATION

Peadon reported that he had attended the most recent meeting of the East King County Regional Water Association. He advised regarding the dues invoice to the District for membership for the year 2006 in the Association. Although the Association’s budget had not increased, dues to its members had increased by 37% due to the withdrawal of the City of Renton from the organization. The pending invoice to the District for membership dues was $5,967.94. Peadon recommended the District maintain its membership in the Association and pay the invoice due to its many benefits to the District and the District’s customers. Following discussion, Kunkel so moved. Anderson seconded the motion which was carried unanimously.

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 District had recently made certain public records available to the City regarding the Coal Creek sewer interceptor line which the District had conveyed to King County. However, the City was requesting additional public records which the District will now try to make available if they can be located and are not exempt from public disclosure. The Board authorized Peadon to use District’s bond counsel as appropriate to assist District staff regarding the matter.

ENGINEER’S COMMENTS

Penhallegon presented a report dated February 8, 2006 on the status of various District engineering projects.

MANAGERS’ COMMENTS

Peadon advised that it may no longer be necessary to send a letter to King County regarding the County's proposal to prepare a regional water system plan. The Board had previously discussed the matter and had determined that an additional regional water system plan was not necessary or appropriate and other water system purveyors in King County had already advised the County to that effect. Peadon advised he had discussed the matter with the Executive Director of the East King County Regional Water Association and will keep the Board further advised.

Peadon provided the commissioners with copies of a letter dated February 1, 2006 from the Cascade Water Alliance advising of environmental compliance relating to the central segment of a transmission pipeline the CWA was now considering to convey drinking water from Tacoma’s second supply pipeline to Cascade members. He will keep the Board further advised regarding the matter.

COMMISSIONERS’ COMMENTS

Anderson advised that a position for a manager had become vacant on the Washington Association of Sewer and Water Districts' Board of Directors and recommended that Peadon be considered for the position. He was concerned that the District no longer had direct representation on that Board due to the expiration of the terms of office for both Jones and Martin on that Board. Following discussion, the Board determined to support Peadon’s appointment to fill the position on the Board.

Kunkel requested information regarding the status of fencing for the 580 Reservoir. Jones advised that bids had been received for that project and would be presented to the Board at the retreat for consideration.

Martin advised that she planned to attend the Section III State Association meeting to be held on September 14, 2006.

Martin advised that she planned to attend the seminar on prevailing wages to be held on March 6, 2006.

Martin advised that she had attended the last MWPAAC meeting and reported on the business which had been discussed at the meeting.

Martin requested Board approval to attend an AWWA conference to be held on April 23-24, 2006 regarding Hurricane Katrina and the federal and state responses to that event. A portion of the program will address planning impacts relating to water and wastewater systems. She advised that she preferred to attend that conference in place of attending the State Association Fall conference. She felt that the cost of the two conferences was comparable. Following discussion, the Board took the matter under advisement.

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. 36374 in the amount of $3,287.82.

The Board approved for payment Water/Sewer Maintenance Fund Voucher Nos. 36375 though 36416 in the amount of $391,647.28.

The Board approved for payment Water/Sewer Maintenance Fund Voucher No. 6432 in the amount of $29,727.50.

The Board approved for payment Water/Sewer Maintenance Fund Voucher Nos. 6433 though 6460 in the amount of $67,095.73.

The Board approved for payment Water/Sewer Maintenance Fund Voucher Nos. 6461 though 6477 in the amount of $18,315.00.

OTHER DISTRICT BUSINESS

As there was no further business or persons to be heard, the meeting was adjourned at 6:15 p.m.

Richard D. Anderson, Commissioner

Pamela A. Martin, Commissioner

Douglas C. Kunkel, Commissioner