A special meeting of the Board of Commissioners of the Lakehaven Utility District, King County, Washington, was held on August 28, 2000 at Lakehaven Center, 31531 First Avenue South, Federal Way, Washington, 98003.

President Tweddle opened the meeting at 6:00 p.m. and asked Mr. Ross to lead in the flag salute. Members/officials present were as follows:

Beverly Tweddle - President of the Board
Don Miller - Vice President of the Board
Tom Jovanovich - Secretary of the Board
Dick Mayer - Commissioner
Ed Stewart - Commissioner
Don Perry - General Manager
Bert Ross - Water Operations/Engineering Manager
Morgan Dennis - Director of Finance/Information Systems
Steve Pritchett - General Counsel

Upon motion of Commissioner Mayer, which was duly seconded by Commissioner Miller, the Board unanimously approved the minutes of the regular meeting of July 27, 2000 as submitted.

Upon motion of Commissioner Mayer, which was duly seconded by Commissioner Miller, the Board unanimously approved the evening's agenda as presented.

1. Vouchers, Warrant Dates of 8-22-00, 8-29-00, 8-30-00, 8-31-00
2. Correction of 8-14-00 Voucher Approval

In response to a question from Commissioner Jovanovich, Mr. Ross explained the work that was performed by Paramount Pacific. In addition, it was noted the voucher to Precision Meters was payment for meters being placed in inventory.

Upon motion of Commissioner Mayer, which was duly seconded by Commissioner Jovanovich, the Board unanimously approved the following Consent Agenda Items:

1. Voucher Approval
   
   Maintenance Fund No. 11-333-0510, warrant date of August 30, 2000, Nos. 6728 - 6803, total amount of $272,668.64.

   Construction Fund No. 11-333-3510, warrant date of August 31, 2000, Nos. 6804 – 6824, total amount of $487,444.04.

   Capital Fund 98 No. 11-333-3520, warrant date of August 22, 2000, Nos. 6698 – 6700 (wire transfer), total amount of $19,288.96; warrant date of August 29, 2000, No. 6701 - 6727, total amount of $159,242.05.
   

2. Correction of Consent Agenda Item No. 2, dated August 14, 2000.

# 47, 2000 Emergency Generators – Purchase Approval: Mr. Perry stated he had invited Howard Moreland, the District's Electrical/Instrumentation Electrician and project lead, to attend the meeting and address the Board's questions. Mr. Moreland began his presentation by noting each of the vendors that had been contacted relative to the bid for this project; unfortunately, only two vendors had submitted bids. He then provided the Board with the reasoning why other vendors had not submitted bids.

Commissioner Jovanovich stated he had spoken to a vendor who sells generators and volunteered to look at the detailed information at no charge, as he does not sell the entire package, to determine if he felt the numbers were correct. Mr. Moreland referred to the specifications stating the vast majority of the District's generators in the field were from one of the manufacturers in question. Commissioner Jovanovich expressed his wish for a policy that requires three bids on major purchase like this and would recommend further research to obtain another bidder. Commissioner Tweddle noted that in some instances for unique equipment, it might not be possible to obtain three bidders. Commissioner Stewart inquired as to which generators were the most common and a discussion ensued as to the different brands of generators in the field and the benefits of each. During the discussion, it was noted if the Board wished to change anything regarding this item, they would have to authorize a rejection of all bids and begin the process again. Mr. Perry noted the bidding process for a project at Well 10A would begin soon and it would be beneficial to have the generator for that site by that time so the contractor could install it generator during that project. The discussion continued relative to the proposed costs for the various generators and the benefits and drawbacks of the specifications being so stringent. At the conclusion of the discussion, Commissioner Mayer stated he felt that staff had been diligent relevant to this project. In addition, there was a time constraint with this project that could impact another and he suggested moving forward. Commissioner Miller agreed and added he would encourage staff to determine if there were ways to improve the process in the future.

Upon motion of Commissioner Mayer, which was duly seconded by Commissioner Miller, The Board, with Commissioners Mayer, Miller, Tweddle and Stewart voting in the affirmative and Commissioner Jovanovich voting in the negative, approved the purchase of the 2000 Emergency Generators, as presented by staff.

#1, 2001-2002 Budget Presentation: Mr. Dennis began by addressing issues discussed at the last meeting and distributing new documents, which included information regarding a policy addressing conservation, information relating to penalties, revised copies of the Capital Improvement Projects (CIP) worksheets and revised revenue projections.

The origination of penalties was the first item addressed. In reviewing the information at hand, it became evident that no certain area of the District could be pointed out as being the most prevalent for receiving doorhangers. He pointed out the budget had been revised to reflect the money being received through penalties and added the numbers were weighted in case they were skewed for some unknown reason this year.

Mr. Dennis then stated he had investigated the inventory charge included in rates that had been discussed at the last meeting. He discovered this procedure has been in place for a very long time and there was very little documentation on it. This charge was developed in an attempt to put a cost on the clerical time required to take equipment out of inventory and put it into service. He added that since this was a clerical function, the cost should be based on a labor hour, and it was actually more involved than that.

Mr. Dennis then addressed the CIP. He stated he had requested that project managers with multiple projects attend the meeting to answer questions of the Board. Mr. Ross asked Angela Peters to begin and she explained the upgrade to the telemetry room at the Water Operations Building, which will be renovated. The renovation included installing one panel, which will replace all of the current telemetry equipment, new paint, carpeting, two workstations and a filing cabinet. At the conclusion of Mrs. Peters' presentation, Mr. Ross took the opportunity to publicly thank her for all the work she had done on the budget for Water Operations.

Gene Yoder, the Supervisor of Field Maintenance, was the next to address CIP items. He began by discussing the Service Connection Replacement Program, which included replacing galvanized pipe with high-density polyurethane pipe. He also mentioned the Meter Replacement Program. The next item was the Global Positioning System, an instrument used to locate utilities, etc. He noted using this device would improve mapping and locates, adding there had been a fair amount of damage done to piping because of mislocates. A brief discussion ensued on this issue, during which Mr. Perry explained how the process would work. He added this type of device was used for new construction as well as service renews. The next item discussed was the Computer Maintenance Management System, which was a software package developed to track all workorders to enable staff to accurately track what is going on at each residence as well as be able to cross reference incidents. In response to a question from Commissioner Tweddle, Mr. Dennis noted he and Don Feierabend were both on the committee of staff to research this project. Mr. Yoder added an outside consultant had been retained who would report to the committee. Mr. Yoder explained the amount allotted for this project included the cost of software, training and labor to input all information. Mr. Yoder next discussed the Maintenance Building Modifications. He stated the figure given was a very rough figure used to determine the best way to proceed to house Field staff, as there currently is a space problem. A discussion ensued as to what kind of consultant would be best to address these types of issues. The next item for discussion was a copier for Field staff. A discussion ensued relative to the needs of Field staff and the proposed cost of the copier. Mr. Yoder then explained the need for a Light Tower, which was the next item listed. He described the piece of equipment being proposed, adding staff felt there was a need for a larger tower to be used for night work. He was directed to delete this item from the list and was authorized to purchase the tower. The next item was the vehicle allocation and Mr. Yoder stated he would address this issue when wastewater items were discussed, adding he would be providing the Board with a matrix, which would include a listing of the District's vehicles and their suggested replacement dates, among other items.

Commissioner Jovanovich inquired as to the status of the Meter Replacement Program as money had been allotted for this in the proposed budget. He added he had been under the impression this program had been deferred. It was noted a dollar amount had been attached to the project, which should be clarified if the project would be moving forward. A discussion ensued relative to this subject. It was noted that the program had been modified since its inception and included more elements. During the conversation, Mr. Perry stated he had discussed the issue with two Board members and it was then determined a presentation would be made at a Board meeting to provide the entire Board with the information. The Board then thanked Mr. Yoder for the presentation.

John Lee, the District's Project Engineer, was the next to review the projects of which he was in charge. He began with General Pre-Design for Road Projects, noting the District had no control over these types of projects as they were scheduled by other agencies. He then referred to the 23rd Avenue South Water Main Relocation. He noted this item had been presented before and briefly explained the location of the project and the work being done there. The next item was SR 161 Water Main Relocation, Phases I and II. He explained the project and the reasoning for stretching the project to 2004. Mr. Lee then discussed the South 356th Water Main Relocation project and what was involved. He stated the South 320th Street/Pacific Highway South Intersection project was the next item and it was currently in progress. The District had "piggybacked" onto the City of Federal Way's contract for this project, through an interlocal agreement. Another project on the list with which the District has partnered was the SeaTac Mall/South 320th Street Water Main Relocation project. He explained this project to the Board and what was involved. The next project of discussion was the Pacific Highway South Water Main Relocation: South 312th/South 320th project. He reviewed the estimated costs for the District's portion of the work, based upon the length of the job in relation to costs for the South 320th Street/Pacific Highway South Intersection project. This project was also developed by "piggybacking" onto the City's contract. Mr. Lee advised the Board he had recently received plans for another project not listed on the CIP, adding this project would be allocated to "Undefined Projects". The ongoing Water District #56 ULID 3/Marine View Drive Replacement project was discussed next. Mr. Lee noted this project should be completed in 2001. Sacajawea Junior High Distribution Main was the next project. Mr. Lee stated staff was currently contracting with the contractor for Phase 3. He stated the majority of the work was completed; however, the full Phase 3 job was scheduled for completion in late December so money was included in 2001. Mr. Lee next referred to the Grandview Loop Closure. He noted this project's location was South 50th Avenue, south of Spider Lake and added it carried a low priority. The SeaTac Mall tie was presented next. Mr. Lee stated this project was currently in construction and was anticipated to close at the end of 2000. The next project was the 2000 Distribution System Improvements and Mr. Lee explained the locations of the two projects, which comprised this item and the costs of them. The next item of discussion was the South 286th Water Main Replacement Project. He briefly explained this project, noting it had been given a low priority. At the conclusion of the discussion, the Board thanked Mr. Lee for his presentation.

The Board heard from Mr. French next. He began his discussion with Wells 10, 10A, 15, 15A and 16 Upgrades. He noted Kennedy/Jenks Consultants were retained for the design phase and construction would extend into 2001. He then turned to Corrosion Control, Disinfection and Iron and Manganese sequestering at well sites and briefly discussed the costs for these projects.

A Central Chemical Storage Facility was the next item discussed. Mr. French explained this item to be a possible investigation of what would be needed for a facility in which to store chemicals for the water treatment. He added the allocated costs would go towards retaining a consultant to make this determination. Filtration of Green River water at Wells 19 and 19A was the next project. This included treating Tacoma water for artificial recharge and iron and manganese removal at that site. He noted surface water would also be treated as well to enable it to be injected into the ground as well. Mr. French next discussed the Well 9 treatment for iron and manganese removal. He stated the old well, located at 296th, had not been used for quite a while and was high in manganese. He added staff had previously completed pilot treatment at this site and the budgeted amount was to be used for installing a package treatment facility to treat the water. A discussion followed about the costs and benefits of this proposed project and noted during the discussion was the importance of maintaining an active water right. It would also provide an opportunity to build a small pressure filter type treatment that may be used at other areas and be utilized as a full-scale demonstration model as well. Mr. French stated the next item, which was the Well 29 Site Development including treatment, was the same as the previous project. This well was a few years old and had not been active, due to the high cost of treatment. He then explained staff's plan for this site. The next topic of discussion was Well 10C Pilot Treatment. Mr. French briefly explained the issues surrounding this well and the purpose of this project. A discussion ensued relative to the needs of the District and whether or not these projects were necessary. Mr. Perry noted some of these projects could be moved out into the future to meet the District's needs. He added he felt the Board should hear the presentations from the project managers and then ask questions they may have. Staff would provide the Board the timing on the individual projects and the Board could then make the determination whether or not the particular project should be moved. He added there were currently adequate resources and staff would not attempt to recommend one project over another. The Panther Lake Infiltration System was the next project that Mr. French discussed. Telemetry was installed at this site to reduce labor involved in taking measurements. A photo survey was currently underway to provide instrumentation feedback into the office on conditions of artificial recharge. The Water System Telemetry Upgrade was discussed next. This was a current project, with most of the work being done in house with some consultant work being included. Mr. French then discussed the 312th Street Tank Seismic Upgrade. The project would bring this facility up to par with other sites. The Surplus Bay Mezzanine was the next project. Mr. French explained this project and what it would be used for. At the conclusion of the discussion, the Board thanked Mr. French for his presentation.

John Bowman, the District's Development Engineering Supervisor, was the next project manager to present projects under his lead. Aquifer Storage and Recover Testing at Test Wells 30T, 31T and 32T are long term water supply projects and all were earmarked for obtaining better information on qualifying the Mirror Lake Aquifer as a reservoir facility. The next projects Mr. Bowman discussed were Production Wells 30 and 32. He explained the projects and noted Well 30 could be a high productive well. The OASIS Program was discussed next. He reviewed the costs that were provided over a number of years and explained the actual tasks that would be necessary for this project were, for the most part, unknown at this time; the future requirements were also unknown. The next project was the OASIS Treatment Plant. Mr. Perry explained this was a dual project, one being related to OASIS and the other related to treatment. Staff would be investigating sites for the project and utilizing current groundwater resources. The balance of the Second Supply project was the next topic of discussion. The costs reflected some contributions to the process, such as meeting with the Department of Ecology on a regular basis. Mr. Bowman then reviewed the Auburn intertie project. He briefly explained his reasoning for including this project in the CIP budget. Mr. Perry noted he understood that Auburn and several other neighboring utilities have an interest in OASIS. The deep aquifer at Well 33 was the next project. A discussion ensued on this project as well as water rights and the relationship of the two items. At the conclusion of the discussion about this issue, Commissioner Tweddle stated the Board would be looking to staff for some guidance with these projects before the budget was adopted. Mr. Bowman next discussed Tacoma's Southwest 356th Pump Station. The District would participate with Tacoma on this project. A discussion then followed relative to this project and the benefits it would provide to both agencies. Mr. Bowman then reviewed the OASIS Treatment Plant Transmission Main project. This involved separating sources of sites and moving water from one site to another. The Board thanked Mr. Bowman for his presentation.

Mr. Ross briefly reviewed Water Oversizing Payments, Miscellaneous Easement Acquisitions and Franchises, which were also included in the CIP. He also explained the

Geographic Information System development, which would be spread over two years. It was noted this project would involve a heavy workload and would require additional personnel for a time as well as consultant assistance. Mr. Ross next discussed Water Operations Equipment. A copier for the Engineering area to copy plan-sized pieces was included in this area as well as a large format scanner to scan oversized documents into the system as well as the website.

Mr. Dennis stated money had also been included in the proposed CIP budget for the support of various MIS functions.

At that point, the Board briefly discussed scheduling a meeting for September 12, 2000 at 6 p.m.

There being no further business to come before the Board, the meeting was adjourned at approximately 9:00 p.m.