LAKEHAVEN UTILITY DISTRICT King County, Washington REGULAR BUSINESS MEETING A regular meeting of the Board of Commissioners of the Lakehaven Utility District, King County, Washington, was held on at Lakehaven Center, 31531 First Avenue South, Federal Way, Washington 98003. President Miller called the meeting to order at 6:00 p.m. and asked Commissioner Englund to lead the flag salute. Members/officials present were as follows: Donald Miller Ronald Nowicki Leonard Englund Charles Gibson Timothy McClain John Bowman Steve Pritchett Morgan Dennis Ken Miller President Vice President Secretary Commissioner Commissioner General Manager General Counsel Director of Finance/Information Services Engineering Manager APPROVAL OF MINUTES Upon motion of Commissioner Gibson, which was duly seconded by Commissioner Englund, the Board unanimously adopted the minutes of April 9, 2015, as presented. APPROVAL OF AGENDA Commissioner Miller requested to move Information Item #4, Uniform Rental Services, to Action Item #3. Upon motion of Commissioner McClain, which was duly seconded by Commissioner Englund, the Board unanimously approved the agenda as amended. CORRESPONDENCE The Board commented that they enjoyed reading the "thank you" letters received from Mr. Andrew's students for allowing them the opportunity to attend the Water Festival held at the Green River Community College last month. CONSENT ITEMS Upon motion of Commissioner Nowicki, which was duly seconded by Commissioner Englund, the Board unanimously approved the Consent Items as presented below.
Page 2 1. Latecomer Approval; Resolution No. 2015-1249. 2. 2013-2015 Water Quality Laboratory Services Contract Extension. 3. Accounts Payable Vouchers and Payroll Transactions with the warrant dates of 4/22/15, 4/23/15, 4/24/15, and 4/27/15. Maintenance Fund No. 11-333-0510 4/22/15 Voucher no. 39313-39335, total amount of $7,711.22; 4/23/15 Voucher nos. 39336-39435, total amount of $499,017.20; 4/27/15 Voucher no. 39444, total amount of $108,420.53. Construction Fund No. 11-333-3510 4/24/15 Voucher nos. 39436-39443, total amount of $52,553.96. Payroll - Fund No. 11-333-0530 4/24/15 Direct Deposits: $215,587.41 Employee Warrants: $9,662.70 Benefit Warrants: $85,059.22 (Voucher nos. 39445-39462) HRA VEBA Forfeiture: $935.38 Withholding/FICA: $101,657.28 Total Amount of: $412,901.99 4. Surplus Property; Resolution No. 2015-1248. ACTION ITEMS #1, Board Meeting Schedule: Steve Pritchett reported that the Board has been invited to attend the official opening of the Green River Filtration Facility and to tour the facilities on May 4, 2015 from 9:30 a.m. to 1:00 p.m. In the event there are more than two Board members attending the opening and tour, the Board will need to set a special meeting. Upon motion of Commissioner Gibson, which was duly seconded by Commissioner Englund, the Board unanimously set a special meeting on May 4, 2015 to attend the opening of the Green River Filtration Facility and to tour the facilities. The Commissioners will meet at Lakehaven Utility District at 8:00 a.m. to carpool to the event that is scheduled to start at 9:30 a.m. and end at approximately 2:00 p.m. #2, Network Security Review Consultant Selection: Morgan Dennis reported that at the March 26, 2015 Board meeting, staff presented a summary of the proposals received for the
Page 3 network security services contract. Six proposals were received and after reviewing the proposals, it is staff's recommendation to select Moss Adams as the consultant for this contract. Upon motion of Commissioner Englund, which was duly seconded by Commissioner McClain, the Board unanimously approved the contract with Moss Adams for review of the District's network security in the amount of $32,240.00. #3, 2015-2017 Uniform Rental Services: Dale Haase reported that the 2015-2017 Uniform Rental Services contract bid proposals were sent out and that only our current provider, Aramark Uniform Services, submitted a bid proposal. After review, it is staff's recommendation that the Board authorize the General Manager to execute the contract with Aramark. Upon motion of Commissioner McClain, which was duly seconded by Commissioner Gibson, the Board unanimously approved the General Manager to execute a new 2015-2017 Uniform Rental Services contract with Aramark for a cost not to exceed $68,656.32. INFORMATION ITEMS #1, DE Semi-Annual Status Report: Brian Asbury reported that development notably increased and is continuing to climb in comparison to the past few years. Mr. Asbury reviewed the Developer Extension Semi-Annual Status Report with the Board and staff. Mr. Asbury responded to various questions of the Board. The Board thanked Mr. Asbury for an informative report. #2, 2013-2015 Insurance Broker Services Contract (12-1099): Steve Pritchett reported that the current Broker Services contract is due to expire December 31, 2015, and that staff would like the Board to review and discuss the direction the District should take for brokerage services. Mr. Pritchett suggested that the Board consider if they want to go through a selection process to see what is available on the market or if they want to stay with the current broker. Mr. Pritchett reported that District staff is handling smaller claims in-house entirely and that larger claims (over $10,000.00) are handled through an insurance adjuster. Discussion was held on the need for insurance brokerage services. Mr. Pritchett suggested having Kim Wilson of Brown & Brown attend an upcoming Board meeting to answer any questions of the Board. Mr. Pritchett will arrange for him to attend an upcoming Board meeting. #3, City of Federal Way Franchise Agreement: Steve Pritchett reported that negotiations have begun between the District and the City of Federal Way to renew the District's right-of-way franchise. The current Franchise Agreement expires on May 24, 2015. As it is anticipated that the negotiations will last beyond the current term of the franchise, the District and the City have agreed to extend the franchise under its current terms through the end of the year. The City plans to present the extension ordinance for a first reading at their May 5th Council meeting. The Board could then authorize the District's acceptance of the extension at the
Page 4 May 14th meeting, followed by City Council's approval of the ordinance on May 19th, with an effective franchise extension date on May 24th. COMMITTEE REPORTS/COMMISSIONER COMMENTS Commissioner Gibson reported on the Government Entity and franchise negotiation meetings he attended. Commissioner Englund reported on PNWS AWWA conference and encouraged others to attend. Commissioner Englund reported on the Personnel Committee meeting that he attended. Commissioner Miller thanked all of the Commissioners' wives for judging the poster contest entries. Commissioner McClain reported on the WASWD conference that Commissioner Nowicki and he attended. Commissioner Nowicki reported on the handouts he provided for the Board to review consisting of Debt Review Team Notes and presentation to MWPAAC entitled 'Moving Toward a Lean Culture'. Commissioner Nowicki reviewed this presentation with the Board and staff and provided examples on how the District could benefit from creating such a culture. STAFF REPORTS General Counsel: Mr. Pritchett provided an overview of the Assumption Bill and handed out a copy of a draft letter to Governor Inslee supporting the Assumption Bill for the Board members to sign. The Commissioners signed the letter and thanked Mr. Pritchett for drafting the letter. Mr. Pritchett also reported on other bills that the District is following that are still being considered. Mr. Pritchett reported that he and other staff members will be attending the WAPRO Public Records Officers spring training tomorrow in Lynnwood. Mr. Pritchett reported that he will be attending the AWC conference in Yakima the beginning of May. Lastly, Mr. Pritchett reported that there was another lien foreclosure action filed against the District and that he provided copies to the Board for their review. Director of Finance/Information Systems: Mr. Dennis mentioned he will be meeting with FCS Group to review rates and Capital Facilities Charges. Engineering Manager: Mr. Miller reported on the six city road projects that he and staff are currently working on and the Pump Station 33B valuation study. Mr. Miller reported that staff is working on new bar screens at the Lakota WWTP and that the Bio-filter project at
Page 5 Redondo is almost ready to bid. Mr. Miller reported that he should get the retaining wall engineering report next week. General Manager: Mr. Bowman reported that John Barton accepted the Wastewater Manager position and the next objective is to fill the Assistant Wastewater Manager position. Mr. Bowman reported on a water main break at 362nd in the Spider Lake area and commented that Mr. Miller is working with Wes Hill in getting the final design completed for replacement of the line. Mr. Bowman further reported that action to get temporary service in advance may be needed and that he wanted to make the Board aware of this. Mr. Bowman reported on the theft of brass meters. Commissioner Nowicki reported on a customer complaint he received from the Attorney General's Office on Monday. He will forward the message on to Steve Pritchett and John Bowman. EXECUTIVE SESSION At approximately 8:45 p.m., the regular meeting was recessed in order to conduct an executive session pursuant to RCW 42.30.110(1)(i) for the purpose of discussing potential litigation. It was stated that the executive session would last approximately 10 minutes and that no action is anticipated. At approximately 8:49 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 8:49 p.m. President Miller Yea Nay Abstain ATTEST: Vice President Nowicki Yea Nay Abstain
Page 6 ecretary Englund 4./ Yea Nay Abstain e/44 Commissioner Gibson Yea Nay Abstain Commissioner McClain Yea Nay Abstain