LAKEHAVEN WATER AND SEWER DISTRICT King County, Washington REGULAR BUSINESS MEETING A regular meeting of the Board of Commissioners of the Lakehaven Water and Sewer District, King County, Washington, was held on at Lakehaven Center, 31531 First Avenue South, Federal Way, Washington 98003. President McClain called the meeting to order at 6:00 p.m. and asked Commissioner Miller to lead the flag salute. Members/officials present were as follows: Timothy McClain Donald Miller Peter Sanchez Ron Nowicki Leonard Englund 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 It was noted that Commissioner Nowicki was attending the Board meeting remotely. APPROVAL OF AGENDA Upon motion of Commissioner Sanchez, which was duly seconded by Commissioner Miller, the Board unanimously approved the agenda as presented. CONSENT ITEMS Upon motion of Commissioner Englund, which was duly seconded by Commissioner Sanchez, the Board unanimously approved the Consent Items as presented below. 1. Payment of the accounts payable, ACH transaction fees and payroll transactions as listed in the consent item in the total amount of $1,542,509.75. 2. 2017 Redondo WWTP Mixers Rebuild and Inspection Project - Final Acceptance. ACTION ITEMS #1, Federal Way Excise Tax Litigation: Steve Pritchett reported that the King County Superior Court ruled to deny the District's motion for summary judgment and granted the City of Federal Way's motion regarding the City of Federal Way excise tax. The District has the option
Page 2 of appealing the ruling, including requesting direct review by the Washington State Supreme Court. Upon motion of Commissioner Englund, which was duly seconded by Commissioner Sanchez, the Board unanimously voted to appeal the King County Superior Court ruling. INFORMATION ITEMS #1, New Headquarters Building Update and Status Report: Ken Miller reported that the Preliminary Programming and Concept Development phase with options and costs for the new Headquarters is complete. Mr. Miller introduced Jeff Blachowski and Diane Barringer of Helix Design Group Inc. to the Board. Mr. Blachowski provided an update and status report on the new Headquarters. #2, Public Hearing 6:30 PM; 2019-2022 Water and Sewer Rates: At 6:30 p.m. Commissioner McClain recessed the regular meeting and opened the public hearing for the purpose of hearing testimony from the public regarding the proposed 2019-2022 Water and Sewer Rates; 2019-2020 Budget and 2019-2028 Capital Improvement Plan; and Fees and Charges. Mr. Dennis reported that FCS Group recalculated the 2019-2022 water and sewer rates for Federal Way customers that were adopted earlier this year to reflect a small correction in the way the utility tax was incorporated into the rates. He will be presenting an updated water and sewer rates resolution to the Board at a later meeting this year. #3, Public Hearing 6:30 PM; 2019-2020 Budget and 2019-2028 Capital Improvement Plan: Morgan Dennis reported that the attached draft resolution to this information item incorporates the CIP that presented at the last meeting and the 0 & M presented at meeting before last. It also incorporates a 60% realization factor on the CIP and a 85% realization factor on 0 & M. #4, Public Hearing 6:30 PM; Fees and Charges: John Bowman reported that Brian Asbury previously reviewed the 2019 fees and charges at the last meeting and that staff is available to answer any question of the Board or the public. Hearing no testimony, Commissioner McClain adjourned the public hearing and reconvened the regular meeting. #1, New Headquarters Building Update and Status Report: Jeff Blachowski continued his presentation on the New Headquarters Building Update and Status Report. Commissioner Sanchez reviewed notes he made after reading the updates and status report and Mr. Blachowski answered questions of the Board. The Board thanked Mr. Blachowski and Ms.
Page 3 Barringer for the presentation. The Board mentioned that it will set up a special meeting to review and discuss the new headquarters further. #5, 2018 Lakota Interim Digester Pumped Mixing Change Order: Ken Miller reported that at the May 24, 2018 Board meeting, the General Manager was authorized to execute a contract with Award Contractor for this project and that the project is about 95% complete. During construction, operators noticed that the digester transfer pump suction pipes were not working properly, and recommend that the suction pipes be modified and added to the interim pumped mixing contract. The estimate received from the contractor for the necessary repairs and changes will most likely exceed the General Manager's authorization limit, but should not exceed $40,000.00. Staff is asking the Board to move this information item to an action item so the repairs can be made to complete this project. Upon motion of Commissioner Sanchez, which was duly seconded by Commissioner Miller, the Board unanimously amended the agenda to add Action Item # 2, 2018 Lakota Interim Digester Pumped Mixing Change Order; Approval. Action Item #2, 2018 Lakota Interim Digester Pumped Mixing Change Order; Approval: Upon motion of Commissioner Sanchez, which was duly seconded by Commissioner Miller, the Board unanimously approved the General Manager to spend up to $40,000 in change orders to complete the necessary repairs to complete this project. #6, 2018 Lakota Aluminum Chlorohydrate Purchase: Brian Richardson reported that Lakota WWTP is in need of securing a small interim supply of aluminum chlorohydrate as a tool for process control during potential plant upsets. Northstar Chemical, Inc. is the only local supplier able to provide the necessary quantity in totes in a next day timeframe. Staff is requesting that the Board consider the proposed Competitive Quote Waiver in the amount of $35,024.00. Upon motion of Commissioner Nowicki, which was duly seconded by Commissioner Sanchez, the Board unanimously amended the agenda to add Action Item # 3, 2018 Lakota Aluminum Chlorohydrate Purchase; Approval. Action Item #3, 2018 Lakota Aluminum Chlorohydrate Purchase; Approval: Upon motion of Commissioner Nowicki, which was duly seconded by Commissioner Sanchez, the Board unanimously designated Northstar a sole source provider for this purchase and approved the General Manager to purchase up to 48,000 pounds of aluminum chlorohydrate, estimated cost of $35,024.00, inclusive of freight and tax. COMMITTEE REPORTS/COMMISSIONER COMMENTS Commissioner Sanchez reported on the Green River Filtration Plant tour he attended. He commented on a letter to the Union dated November 2, 2018 and on the response time. Also
Page 4 commented on the Yakima Open Public Meetings Act violation article that Steve Pritchett provided to the Board for their review. Commissioner Miller reported on the Pacific Northwest Clean Water Association Conference in Boise, Idaho that he attended. Commissioner Nowicki reported on the Pacific Northwest Clean Water Association Conference in Boise, Idaho that he attended as well. He informed the Board that he will be in town the week of December 11th and requested that the special meeting to discuss the New Headquarters be scheduled sometime that week. Commissioner McClain set a special meeting on December 12, 2018 at 2:00 p.m. to discuss the New Headquarters as an information item. Commissioner McClain reported on the Personnel Committee meeting and Chamber Luncheon that he attended. Commissioner Englund reported that Commissioner Miller and he met with John Bowman on Tuesday and observed the line cleaning crew. He reported on the tour of the Green River Filtration Plant. Commissioner Englund asked about letters that were sent out to customers regarding their billing accounts. Mr. Pritchett explained the circumstances surrounding the letters that were sent out to customers. Mr. Dennis explained the billing conversion that affected approximately 100 accounts that pre-dated Lockbox and Paymentus and reported that these accounts have been corrected. STAFF REPORTS General Counsel: Mr. Pritchett reported that he be giving a presentation to the High line Local Government class on November 20th and will be on jury duty December 7th. He informed the Board that the City of Edgewood agreed to the District's proposal to pay the utility taxes into the registry of the Court and that a Stipulation and Agreed Order will be filed with the court. As a result, there will not be a need for the Executive session tonight. Engineering Manager: Mr. Miller reported that he is currently working on Solids Project at the Lakota WWTP and is looking at the asset management at the Plant. He also informed the Board that he has been asked if he would consider presenting on an I & I project at a conference in Oregon. General Manager: Mr. Bowman provided the Board with a copy of an article Trane published on the District's UV Project. Mr. Bowman reported on the Senate Bill 3021, which they call American's Water Infrastructure Act of 2018, and how it will affect the District. He informed the Board on
Page 5 obligations that will need to be completed by March 31, 2020, and that the District will need a consultant to assist with this. Mr. Bowman provided congratulatory letters for the Board President to sign to Eddy Oliver and Patrick Lilley for their Wastewater Collection I certifications and to Devin Hopper for his Wastewater Collection II certification. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at approximately 8:12 p.m. Pr sident McC ain Yea Nay Abstain ATTEST: Yea Nay Abstain Vice President Miller Yea Nay Abstain Secretary Sanch Commissioner Nowicki Yea Nay Abstain ommissioner Englund Yea Nay Abstain