Board Meeting Minutes – February 27, 2021

Call to Order:

Welcome: Darton, President

Present/Quorum (yes): Darton, Todd, Clint, Matt, Morris (10:45am), Gini, Paul, Dave (Manager). Guest: None

Consent Items

Approved? – Contents and order of this Agenda: Approved

Approved? – Minutes of January meeting: Approved

Information Items

Guest Speakers comments (if any): None

Board Member comments (if any): Gini mentioned she had sent Call for Candidates form to board members and hoped they had seen them. Members had and they looked good. There are three board members, Todd, Darton and Paul who will have reached the ends of their terms and the board wondered whether they would run again. Darton and Todd said they would. Paul said he thought it would be good to have new people on the board so he would not reapply if we got new candidates applying to join the board. But if not he would reapply. Darton said he would if he could step away from being the President. We decided the Annual Board Meeting will be on June 26.

President’s Report :

• Darton discussed having an Executive Committee meeting to discuss and plan for compensation changes. The meeting is scheduled for March 13 at 10am by zoom.

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Manager/Operator Report (Dave):

• Dave said he hoped we all saw the change order he sent us on the piping at the Sandy Shores Filtration project. He said we had to make this change. Cost of change is a bit over 9K. Paul said we were almost at the very end of the project install so there was very little chance there would be any other change orders coming. He thought we were lucky this was the only one.
• PSE has changed the kind of electric panel they are allowing us to install. They want 100 amp panels installed rather than a 200 amp. Dave said we really should have a true 3 phase system but we couldn’t afford the cost of this at this time. We will add this $90K system as a future Operations upgrade in the Capital Improvement Plan. Todd asked what the expected cost will be to make this change from a 200 amp panel to the 2 100 amp panels and Dave said it will be minor.
• Pacific Crest will be requesting an time extension to complete the Sandy Shores Filtration project until April due to the changes.
• Darton put forward a motion to approve the change order on the piping at a cost of approximately $9K. Unanimously approved.
• Dave asked if we could go ahead with fixing the soffits and gutters at the DWA building since $37K had been put into the budget this year for this repair. Darton put forward a motion to approve moving forward with this repair using the $37K. Unanimously approved. Dave will coordinate this with our contractor.
• Dave has ordered the replacement steel door for Dockton Springs building. Should be arriving next week. Cost was $326.
• Dave has signed up for two classes to fulfill the education requirements to keep his certification current. He is taking a class to be able to diagnose problems with the computer program that will be installed at Sandy Shores Filtration building. This is a one day course. He is also signed up for a course in Water Disinfection. This will take 3 days. He will be gone from 3/16-19 for these classes and during that time Paul volunteered to cover his daily inspections.

Committee Reports:

Finance Committee (Todd):

• Todd says we are fine financially. Business operations re a bit up but will balance out. System operations costs have been low. Taxes are low because we are still budgeting for KC tax. We have paid $280K towards the filtration project which is on target.
• Todd is planning a budget review with Dave this month to see if there are any issues. Particularly interested in seeing if there are any material deficits we might need to plan for. Todd says he tends to be too optimistic about our income but we are now showing a 7K income overage from what we had on the budget. He explained that it’s hard to get this exact because unknowns like if we have a wet spring or not can affect it. He typically puts in extra for things like foreseeable increases to things like salaries. The two areas he sees increases in our costs are staff costs and energy costs. Dave predicts that going forward we will likely see increased electric costs with the new filtration system. Todd thinks we should plan for an increase in inflation. Discussion occurred about the increase in the cost of construction projects due to the Texas freeze and plumbing and electric issues with that. Workers and materials are being sent there so construction has gotten more costly in the rest of the country.
• Todd mentioned that we always put $15K aside for unscheduled maintenance. This is not a capital improvement; it is maintenance. We will continue carrying that $12 K for the County Right of Way tax that may be decided some time.
• The Operations expenses have gone from $201K to $229K primarily due to labor and energy costs as mentioned earlier.
• We are going to have to address a loss moving forward.

Water Production Committee (Paul):

• Paul was in contact with Duncan about the King County Franchise lawsuit we are part of. There is a question of whether it is financially worth it for us to continue being part of the lawsuit if the legal fees we pay are the full fee and not the discounted ones we have paid up until now. Will we save money staying in the lawsuit if we pay full fee as apposed to leaving the lawsuit and not spending that money for legal charges and use this money if King county wins. Paul will be in discussions with Duncan to see if our discount will continue and based on that we can make a decision.
• Duncan will soon be issuing a letter regarding the Dockton Springs well points to King County. This has dragged out a bit because additional documentation has been being discovered in our files at the office which will strengthen our position in the discussion.
• Now that we are reaching the end of construction at the Sandy Shores Filtration location, all inside work is almost completed and the locks to the building are on and functioning. Trenching is still open around the building for piping work so be careful is you go up there. Todd was wondering if we had any thoughts about landscaping around the structure. He thought it had not been included in the budgeting. We will need to think about this in the future.
• Construction equipment will be pulled out in March.

CIP and Planning Committee

• Darton said there are no updates to the CIP yet but by next month’s meeting updates will be presented.
• Executive committee meeting will meet 3/13 to discuss compensation.
• Quarum was met to approve the motion to allow the piping change order at the Sandy Shores project and approve the motion to install new soffits and gutters at the Dockton Water building.

Old Business / Carryover Items

• None

New Business / Discussion Items

• None

Other Business

• None

What did we decide?

• Dave: Install new door at Dockton Springs when it arrives. Participate in continuing Ed classes. Work on Budget with Todd. Work on CIP with Todd and Darton. Arrange with contractor for work on soffits and gutters at Dockton Water building.
• Darton: Work with Todd and Dave on CIP update. Lead Exec. Committee in Compensation review.
• Paul: Attend Executive Committee meeting re compensation. Cover Dave’s daily inspections when he is in classes 3/16-19.
• Gini: Make changes to Call for Candidates form, format the ballot.
• Todd: Work on budget. Review possible changes to payment rate.
• Matt: Attend Compensation Committee meeting.
• Clint: Attand Compensation Committee meeting.
• Morris: Attend Compensation Committee meeting.

Next Board meeting: March 27, 2021