MINUTES OF REGULAR MEETING

OF THE BOARD OF COMMISSIONERS OF

COAL CREEK UTILITY DISTRICT

OF KING COUNTY, WASHINGTON

Held March 22, 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 March 22, 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. Dave Hutley, District Engineer, and John Milne, General Counsel, were also present.

CONSENT AGENDA

Approval of minutes - regular meeting of February 22, 2006.

Approval of minutes - special meeting of February 23, 2006.

Approval of minutes - special meeting of February 24, 2006.

Approval of minutes - regular meeting of March 8, 2006.

CITIZENS’ COMMENTS AND CONCERNS

There were no citizens in attendance.

EXECUTIVE SESSION - PERSONNEL

Martin requested an executive session to discuss a personnel matter. Following discussion, Anderson made the motion to convene an executive session on that basis. Kunkel seconded the motion which was carried unanimously. Before convening the executive session at 5:10 p.m., Martin advised that the executive session would be concluded at approximately 5:30 p.m. At 5:30 p.m., the executive session was extended until approximately 6:00 p.m. At 6:00 p.m., the executive session was concluded and open public meeting was reconvened.

PERSONNEL

Peadon advised that as of May 1, 2006, he would have 30 years of service as a public employee under the PERS 1 retirement system and could retire with full retirement benefits. However, he enjoyed his work with the District, held several leadership positions in organizations in which the District was involved and wanted to bring to completion the Lower May Creek/Windtree Sewer Project which he had been working on for several years. Given Peadon's experience and expertise, and the Board's desire that he assist in the completion of that project, the commissioners discussed whether Peadon would be interested in a reduced role with the District should he retire. He indicated that he would consider that possibility. Following discussion, the Board requested that Peadon and Milne review the applicable rules and regulations regarding Peadon’s eligibility for retirement and the possibility that he may have some continued but reduced role with the District after retirement. The Board also requested that Peadon determine what impact his possible retirement may have on his officer positions in various organizations relating to District business and to report back to the Board.

RINZ LITIGATION

Peadon advised that the litigation between former District employee Wayne Rinz and various parties relating to the failure of a District crane which had resulted in injuries to Rinz had been settled and the portions of the crane which had been in the custody of the partys' experts for examination and testing had been returned to the District. Due to the destructive nature of the testing, Peadon felt that the equipment had no value and should now be disposed of. Following discussion, Kunkel made a motion to adopt Resolution No. 1680 determining that the equipment had no value and authorizing staff to dispose of the equipment as appropriate. Anderson seconded the motion which was carried unanimously.

VAL VUE INTERLOCAL AGREEMENT

Peadon provided the commissioners with copies of a revised draft interlocal agreement with Val Vue Sewer District and Southwest Suburban Sewer District to jointly own and utilize an easement roller. The draft addressed the cost of the equipment, schedule of usage and possible lease of the equipment to other municipalities. The Board had discussed the draft at its March 8, 2006 meeting. Peadon advised that the purchase price had been slightly increased due to improvements to the equipment made by Val Vue and recommended the District approve the agreement and purchase an interest in the equipment for use in the District. Following discussion, Anderson made the motion to approve the agreement and to purchase the equipment at a cost not exceeding $11,500 and to authorize Peadon to sign the agreement on behalf of the District by the adoption of Resolution No. 1681. Kunkel seconded the motion which was carried unanimously.

SURPLUS EQUIPMENT SALE

Jones reported to the Board regarding the bid notice for the sale of equipment which was surplus to the District pursuant to resolution previously adopted by the Board.

95TH WAY AND WINDTREE AC WATER MAIN REPLACEMENT

Jones described certain AC water main that he recommended now be replaced and requested authorization to go out for bid for the work. He advised that the AC water main to be replaced was the last remaining AC water main in the District. Following discussion, Kunkel so moved. Anderson seconded the motion which was carried unanimously.

ATTORNEY’S COMMENTS

Milne requested that the numbering of certain resolutions which had been adopted by the Board at its March 8, 2006 meeting be amended due to scrivner's error. Martin then re-numbered and initialed the resolutions as requested by Milne.

ASSISTANT MANAGER’S COMMENTS

Jones provided the commissioners with copies of a letter dated March 16, 2006 from David Evans & Associates relating to the Coal Creek Multifamily developer extension requesting the connection of the completed portion of the project’s water main to the District’s water main at 132nd Place S.E. for fire flow needs during construction. Jones recommended that the request be approved. Following discussion, Anderson so moved. Kunkel seconded the motion which was carried unanimously.

MANAGER’S COMMENTS

Peadon provided the commissioners with copies of an “action items” list which had been discussed and requested by the Board during the recent Board retreat. The commissioners liked the format of the action items list and requested that Peadon update the list monthly for consideration at the meeting when the engineer’s monthly project engineering status report was not presented.

Peadon presented Resolution No. 1677 establishing financial and budgetary policies to manage the District's financial resources. The Board had discussed the draft policies at the recent Board retreat and had requested that the policies be presented at a future meeting. Following discussion, Anderson made the motion to adopt Resolution No. 1677 establishing the financial and budgetary policy. Kunkel seconded the motion which was carried unanimously.

Peadon presented Resolution No. 1678 establishing conference attendance and travel expense through reimbursement policies. The draft policies had been considered by the Board at the recent Board retreat and the Board had requested that the policies be presented at a future meeting. Following discussion, Kunkel made the motion to adopt Resolution No. 1678 establishing the conference attendance and travel reimbursement policies. Anderson seconded the motion which was carried unanimously.

Peadon presented Resolution No. 1679 revising and establishing the policies and procedures for charge cards issued to District officers and employees. Draft policies regarding the issuance and use of credit cards had been discussed at the recent Board retreat and the Board had requested that the policies be presented at a future meeting. Following discussion, Anderson made the motion to adopt Resolution No. 1679 revising and establishing the District’s credit card issuance and usage policies. Kunkel seconded the motion which was carried unanimously.

COMMISSIONER’S COMMENTS

Martin reported on her attendance at the annual meeting of the Water and Sewer Risk Management Pool which had been held on March 17, 2006.

Martin reported on her attendance at the Newcastle City Council meeting on March 20, 2006 as well as a public meeting held on March 21, 2006 regarding the siting of a new library to be constructed within the City. She advised that she also planned to attend the March 28, 2006 meeting of the King County Library Board where the matter would be furthered discussed.

APPROVAL OF VOUCHERS

The Board approved for payment Water/Sewer Maintenance Fund Voucher Nos. 36485 through 36504 in the amount of $76,800.20

OTHER DISTRICT BUSINESS

As there was no further business or persons to be heard, the meeting was adjourned at 7:20 p.m.

Richard D. Anderson, Commissioner

Pamela A. Martin, Commissioner

Douglas C. Kunkel, Commissioner