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LAKEHAVEN UTILITY DISTRICT
King County, Washington
SPECIAL BUSINESS MEETING
December 1, 2005
A special meeting of the Board of
Commissioners of the Lakehaven Utility District, King County,
Washington, was held on December 1, 2005 at the Lakehaven Center, 31531
First Avenue South, Federal Way, Washington, 98003.
President Stewart opened the meeting at 6:00 p.m. and asked
Commissioner Mayer to lead the flag salute. Members/officials present
were as follows:
Ed Stewart - President of the Board
Beverly Tweddle - Vice President of the Board
Don Miller - Secretary of the Board
Tom Jovanovich - Commissioner
Dick Mayer - Commissioner
Bert Ross - Engineering Manager
Steve Pritchett - General Counsel
Morgan Dennis - Director of Finance/Information System
Mr. Perry was excused from the meeting as he was unavailable.
APPROVAL OF AGENDA
Upon motion of Commissioner Mayer, which was duly seconded by
Commissioner Jovanovich, the Board unanimously approved the
evening’s agenda as presented.
CONSENT ITEMS
- Accounts Payable Vouchers and Payroll Transactions Approval:
Warrant dates of 10-31-05, 11-16-05, 11-22-05, 11-28-05, 11-29-05
and 11-30-05.
Upon motion of Commissioner Miller, which was duly seconded by
Commissioner Mayer, the Board unanimously approved the Consent
Item as presented.
ACTION ITEMS
#072, 2006 Fees and Charges – Resolution No. 2005-1056: For
discussion purposes, Commissioner Mayer made the motion to adopt the
resolution approving the proposed Fees and Charges for 2006 and
Commissioner Tweddle seconded his motion.
Mr. Dennis stated that this resolution and the two that followed this
item were discussed at the last Board meeting with the exception of the
Fees and Charges resolution. He stated that this resolution incorporated
revised Capital Facilities Charges (CFC) values, based on the discussion
at the last meeting. He added that he and Mr. Perry had done some fine
tuning to the Capital Improvement Program during the last week to ensure
nothing had been left out. He then stated that it appeared that the CFC
for water should be lowered by $16 per ERU. Commissioner Tweddle then
inquired about the proposed addition to the Fees and Charges that
imposed a charge to developers when District staff attends the
Development Review Committee (DRC) meetings at City Hall. This item was
then discussed by the Board and staff; it was noted that the purpose of
this charge is to compensate for staff time spent attending those
meetings. Mr. Ross then explained how staff proposed to collect this
charge. Mr. Pritchett then referred to the location in the Fees and
Charges resolution that discusses the leasing of water and sewer ERU’s
and explained how the charge will be calculated, which would ensure that
everyone would pay the same rate.
Upon motion of Commissioner Mayer, which was duly seconded by
Commissioner Tweddle, the Board unanimously adopted Resolution
No. 2005-1056, authorizing the collection of fees and charges and
establishing the description and implementation of such fees and charges
and superseding Resolution Nos. 2004-1017, 2004-1028 and 2005-1050.
#073, 2006 Water/Sewer Rates – Resolution No. 2005-1057: Mr.
Dennis stated that his resolution incorporates a 3% water rate increase,
which amounts to approximately $5 per year per customer on average. He
added that the sewer rates remained unchanged from the prior year. Mr.
Pritchett stated that there was a small revision to the resolution and
went on to explain the District signed an agreement with the City of
Auburn in 2004 relating to the boundaries of each agency and providing a
differential rate for those customers transferring from Auburn to
Lakehaven. A discussion followed as to the basis for this charge. During
the discussion, Mr. Pritchett likened this project to the water system
upgrade that was done in former Water District #56 as a condition of
merger.
Upon motion of Commissioner Mayer, which was duly seconded by
Commissioner Tweddle, the Board unanimously adopted Resolution
No. 2005-1057, adopting water, sewer and street lights rates and
superseding Resolution No. 2004-1029.
#074, 2006 Budget – Resolution No. 2005-1058: Mr. Dennis
stated that the actual budget and a list of Capital Improvement Projects
were included in this resolution. He added that this incorporates the
Fees, Charges, the Capital Facility Charges and the increase in water
rates. He added that a change had been included, which was the inclusion
of the project to update the Comprehensive Wastewater System Plan from
the version presented at the last Board meeting. He added that the
physical look of this resolution was different because all the proposed
Capital projects are now listed as a part of the budget. In addition,
there is a capital reserve fund for Capital Expenditures.
Upon motion of Commissioner Mayer, which was duly seconded by
Commissioner Jovanovich, the Board unanimously adopted Resolution
No. 2005-1058, amending the 2005-2006 biennial budget.
#75, Lakota Lighting Project: Jim Fleming, the District’s
Wastewater Treatment Plant Supervisor, addressed the Board and stated
that the energy audit had been completed and staff is prepared to move
forward with the purchase of new lighting fixtures before the price
increases. It was noted that 50% of the project costs would be
reimbursed by Puget Sound Energy at the completion of the installation
of the lights. Mr. Fleming noted that staff also planned to do the same
type of project at the Redondo Wastewater Treatment Plant.
Upon motion of Commissioner Mayer, which was duly seconded by
Commissioner Jovanovich, the Board unanimously approved the
purchase of the new lighting fixtures for the Lakota Wastewater
Treatment Plant from Graybar, for an approximate cost of $48,834.84,
including tax and freight.
#76, Customer Bill Printing Outsourcing: Mr. Dennis began by
stating the AFSCME bargaining unit had responded to his inquiry relating
to the proposed outsourcing of bill printing. They had indicated that
because no staffing changes would result, this would not present any
problem for them. He went on to review the issues surrounding the
reasons for this project. He then stated that staff had sent out
Requests for Proposals (RFP) in August; two firms responded and they
were both from out of state. The Board then directed staff to contact
the local firm that also provides this type of service. The local
company submitted an estimate of the costs, which classified them as the
apparent low bidder for the work. Mr. Dennis added that a contract will
be prepared that would provide a means to cancel the contract if staff
determines that the service provided by this company was unacceptable.
He added that staff intends to keep the Documatch machine as it is
utilized for more jobs than printing and stuffing the bi-monthly water
and sewer bills. When asked for a timeframe to begin this service, Mr.
Dennis stated staff has a large amount of inventory that is used
exclusively with the Documatch machine and would like to continue to use
this machine until the inventory is depleted. He noted he hoped to begin
the new process sometime in the first quarter of 2006. A discussion then
ensued about online billing and how that would work. Subsequent to the
discussion, it was the consensus of the Board to consider this item.
Upon motion of Commissioner Miller, which was duly seconded by
Commissioner Tweddle, the Board unanimously authorized the
General Manager, pending approval of the contract by the General
Counsel, to execute a contract for bill printing and mailing services
with Databar of Edgewood, Washington.
#77, Board Meeting of 12-22-05; Consider Canceling or
Rescheduling: Mr. Pritchett stated there were items that staff would
like to bring to the Board before year end. A brief discussion followed;
subsequent to the discussion, it was the consensus of the Board to
consider this item as follows below.
Upon motion of Commissioner Tweddle, which was duly seconded by
Commissioner Miller, the Board unanimously approved canceling the
regularly scheduled Board meeting of December 22, 2005 as well as
scheduling a special meeting on December 15, 2005 at Lakehaven Center at
6:00 p.m.
#78, Election of Board Officers: Commissioner Miller began the
discussion by suggesting Board members follow the rotating process,
adding he felt this procedure has worked well. He then nominated
Commissioner Tweddle to the position of President and Commissioner Mayer
seconded the nomination. Commissioner Tweddle then accepted the
nomination and the vote was unanimous. Commissioner Mayer then nominated
Commissioner Miller to the position of Vice President and Commissioner
Tweddle seconded the nomination. Commissioner Miller accepted the
nomination and the vote was unanimous. Commissioner Mayer then nominated
Commissioner Jovanovich to the position of Secretary and Commissioner
Tweddle seconded the motion. Commissioner Jovanovich accepted the
nomination and the vote was unanimous.
In summary, the new officers for 2006 are as follows:
President - Commissioner Tweddle
Vice President - Commissioner Miller
Secretary - Commissioner Jovanovich
COMMITTEE REPORTS/COMMISSIONER COMMENTS
Commissioner Miller inquired as to the date of the Auditor’s Exit
Conference and Mr. Dennis indicated he was attempting to have that
meeting moved to a different time and would let the Finance Committee
know the finalized date. Commissioner Mayer reported the next Accident
Review Board meeting was scheduled for the next Monday and he would be
unavailable to attend that meeting. Commissioner Tweddle expressed an
interest in attending that meeting in Commissioner Mayer’s place.
Commissioner Stewart stated he felt the District had accomplished a lot
in this last year and added he felt this had been a very productive
year. He also noted his disappointment that the contract negotiations
had not yet been completed, but then added he felt that staff was to be
congratulated for all the hard work. Mr. Ross thanked Commissioner
Stewart for his comments on behalf of staff.
STAFF REPORTS
GENERAL COUNSEL: Mr. Pritchett reported that an
unemployment hearing was scheduled the next day for a former
employee. It would be a telephone hearing with an Administrative Law
Judge that had been assigned the case by Employment Security. He
went on to briefly explain the issues surrounding this issue. Next,
Mr. Pritchett stated that typically, in connection with the adoption
of previous rate resolutions where the Board has maintained
unchanged rates, a press release is prepared and submitted to local
newspapers to notify the District’s customers of the action taken.
He then stated that he felt it would be wise to get the information
out that was voted on at this meeting as well as include a note that
the District continues to provide safe clean water. Mr. Pritchett
next reported he has been receiving calls from a consultant working
with Cingular relating to the cost of the lease the District has
with that company. He went on to explain that the consultant was
proposing a rate guarantee in exchange for lowering of the base rent
and the annual rent inflator. It was the consensus of the Board to
continue with the current agreement.
DIRECTOR OF FINANCE AND INFORMATION SYSTEMS: Mr. Dennis
reiterated that the Finance Committee members were scheduled to
attend the Auditor’s Exit Conference but added that if other Board
members wished to also attend, he could schedule more than one
meeting.
ENGINEERING MANAGER: Mr. Ross reported a meeting had been
scheduled with a representative of the local Chamber of Commerce the
next day and he, along with Mr. Perry and Wes Hill, the District’s
Development Engineer/Manager of Development Services, would be
attending that meeting. Mr. Ross then stated that the Lakota Beach
sewer construction was very close to substantial completion and as
soon as staff learns that the system is to the point where
connections can be made, a letter will be sent to the property
owners informing them of the news. Commissioner Stewart expressed an
interest in observing the operation of the system after the pumps
have been installed. Next, Mr. Ross reported the construction
contract on the Pacific Highway South Water Main Relocation project,
Washington State Department of Transportation phase, between South
272nd Street and South 284th Street was going to bid and staff hoped
to recommend award of the contract at the first meeting in January,
2006.
EXECUTIVE SESSION/COLLECTIVE BARGAINING
At approximately 7:10 p.m., the regular meeting was recessed to
discuss collective bargaining negotiations and to hold an Executive
Session for the purpose of discussing potential litigation. It was
estimated that the closed session collective bargaining would last five
minutes and the executive session would last 15 minutes.
At approximately 7:30 p.m., the Executive Session was adjourned and
the regular meeting was reconvened.
ADJOURNMENT
There being no further business to come before the Board, the meeting
was adjourned at approximately 7:30 p.m. |
