BOARD MEETING AGENDA (DRAFT), February 22, 2025

The meeting will be a hybrid format, both in person at the DWA building and online via Zoom. All shareholders are invited to attend.

Link https://us02web.zoom.us/j/5160276420 Meeting ID 516 027 6420.

Call To Order:

Welcome

Present/Quorum

Consent Items:

Approve: Contents and order of this Agenda

Approve: Minutes of previous meeting.

Information Items:

• This meeting is being recorded on Zoom. The recording will be made available on the DWA website so Shareholders who cannot attend the meeting may hear the discussion.
• Please keep mics muted unless speaking. Be aware of camera’s on/off status.
• Very full agenda.
• Everyone is invited to ask questions but comments should be brief and relevant to the discussion. Speakers may be asked to conclude remarks so that all may participate and keep the meeting moving in a timely manner. Please be courteous and maintain civil discourse.

Guest Speakers comments (if any):

Board Member comments (if any):

President’s Report:

• Follow-Up Survey on Conservation Easement
  • Preliminary Results indicate continued support for selling the conservation easement. Additional responses still need to be tallied, but preliminary results indicate 44% strongly support selling the easement, 24% support, 9% are neutral, 21% strongly oppose, and 3% did not respond.
  • Remaining questions and concerns for King County Parks include:
    • Liability: Will DWA or King County Parks if someone is injured on the property?
      • At the January meeting, we were assured that DWA would not be liable for any accident or injury on the property.
    • Parking: Where will cars park?
      • At the January meeting, we were told that a parking lot would not be built on the property. A lot on Hake Rd. currently owned by King County Parks was identified as a possible site for a future parking area.
      • At the January meeting, we were told that King County Parks does not foresee significant increased pressure/traffic in the area.
    • Access: What access will the public have?
      • At the January meeting, we were told that there would be a single “in-out” trail from SW 268th St across the property to the Manzanita Natural Area. This would be a walking trail only. The development of this trail will likely take a few years due to the current backlog of trail needs in the larger King County Parks system. The existing network of trails and roads in the Manzanita Natural Area would remain. No additional trail development is planned.
    • Future residential development: Is it guaranteed that no residences will built on the property in the future? Can King County Parks later sell or lease the land to a developer or agent?
      • The final language of the purchase and sale agreement for the conservation can still be negotiated, but the current offer – and any future version – includes express agreement that any and all development rights to the property will be permanently removed. The easement will be granted:
        • “…exclusively for the purpose of removing all residential development rights and all commercial development rights and conserving the Conservation and Habitat Values of the Protected Property. Grantor expressly intends that this Easement runs with the land in perpetuity and that this Easement shall be binding on Grantor’s successors and assigns.”
        • “It is the purpose of this Easement to assure that the Protected Property will be retained forever in its natural forested and open space condition and to prevent uses of the property that will significantly impair or interfere with the Conservation and Habitat Values of the Protected Property.”
    • Conservation easement vs. selling the property: Would King County Parks prefer to purchase the property if we did not need access for a well?
      • At the January meeting, we were told that King County Parks prefers to purchase property and would be interested in doing so if DWA was willing to sell it. However, they would not grant and easement for well development so if we need a well or future water access, we should retain ownership.
    • DWA ability to install a well: What assurances does DWA have that we will be able to install a well and/or associated facilities on the property?
      • The final language of the purchase and sale agreement for the conservation can still be negotiated, but the current offer – and any future version – includes express agreement that a municipal well will be permitted:
        • “Municipal Well. *Note the right to install a well will be retained. Location to be determined.”
    • Signage, maps and website: What signage will be installed to indicate access points? What signage will indicate no access and no parking? How will digital maps and websites but updated to correctly identify boundaries, etc.?
    • Maintenance: Will King County Parks mow the grass apron on SW 268th St?
  • Remaining questions and concerns for DWA include:
    • Funds: How will the proceeds be used? Is this a good long-term investment?
    • Groundwater quality: Will the conservation easement protect the quality of the groundwater? Could activities on the property contaminate the groundwater?
    • Water rights: When will DWA seek to renew the water right on the property?
    • Feasibility of future well: How likely is it that DWA will develop a well on the property? Should the property be retained without the easement to guarantee future use/well?
    • Conservation easement vs. sale: Is it better to sell the property outright (if well development unlikely)? Should DWA pursue a lot line adjustment and sell most of the property instead?
    • Alternative to Dockton Springs: Is Dockton Springs safe from saltwater intrusion? How much must sea level rise to contaminate Dockton Springs (making a new well necessary)?
    • Taxes: What are the tax implications for DWA?
      • DWA does not currently pay any property taxes.
    • Liability: Is DWA confident we would not be responsible for injuries, etc.?
    • Restrict development: DWA should ensure that only a foot trail will be developed, and that no other road or other improvements will be made on the property.
    • Maintenance: Is DWA assured that King County Parks will assume maintenance of the property, including the grass apron bordering SW 268th St?
    • Parking: DWA should not agree to the easement without an express solution for parking from King County Parks.

Manager/Operator Report:

• Bookkeeping and billing hours – increase due to new software
• Hake Rd water main replacement project – proposed scope of work and estimated cost (~$80,000)
• Other

Water Production Committee:

CIP Planning Committee:

Finance Committee:

• Financial summary reports for Q2 and First Half ’24-’25
  • Q2 vs Prior Year:
    • Overall, our revenue got back on track (there was very low water usage in Q1).
    • However high utility costs and Unscheduled Maintenance costs took some of the shine off.
  • First Half – ’24-’25 vs Prior Year
    • It would be good to promote the Good Neighbor Fund, again, to recruit more donors, or higher donation amounts.
    • We end the half with quite a bit more money in the bank than last year as we continue to rebuild our capital funds.
  • First Half ’24-’25 vs Budget
    • Impact of delayed price increase will be about $10,000 — we can manage that AND it means shareholders kept a bit more in their pockets.
    • We will go somewhat over budget (negative) for Operations, but we’ll be under budget for capital projects.
    • Note bottom line that we already, at 6 months, have more money in the bank than expected at the end of June.
    • As we get into budget season we’ll put out a Forecast for the year.

Community Outreach Committee:

Old Business / Carryover Items:

• Idea for possible new By-Law (which will ultimately require vote of membership) that defines a new “Legacy Fund” (to operate as a “Quasi Endowment”) that will define restrictions on the management of a “windfall” from any transaction (sale, lease, etc…) related to 268th/Hake Springs property. (Todd)

New Business / Discussion Items:

• Doxo spam (Todd)

Other Business:

What Did We Decide?

• APRIL:
• DARTON:
• DAVE:
• PATRICK:
• PAUL:
• SAM:
• SUSAN:
• TODD:

Next Board Meeting: Saturday, March 22, 2025

Board meetings are usually held on the fourth Saturday of the month at 10:00 AM. The November and December meetings are often combined into a single meeting in early December to avoid conflicts with holidays. Upcoming meeting dates are: March 22, April 26 and May 24. The Annual Shareholders’ Meeting will be June 28.