Tuesday, October 28, 2008

FIRGROVE MUTUAL WATER COMPANY
Regular Meeting Minutes
Date: 10/28/08 Time: 6:00 p.m.


I. Call to Order and Roll Call. S. Williams called the meeting to order at 6:00 p.m. Board Present: S. Williams, S. Salmon, N. Donovan, and M. Hinds. Board Absent: H. Keith. Staff Present: L. Jones, L. Triplett, M. Gipson, and V. Epp.

II. Approval of 9/23/08 Minutes: S. Williams called for review of the meeting minutes. Upon one correction to the minutes, S. Salmon moved to accept the minutes as corrected. M. Hinds seconded the motion. Motion passed 4 to 0 with Board present.

III. Resident/Customer Comments: Staff received a call and letter from a customer where a main break occurred in the Springfield area. Customer wanted to report how impressed she was with the way staff handled the main break.

IV. General Correspondence and Articles: None.

V. Action Items:
A. FCSG Proposal – L. Jones distributed a summary of FCS Group’s proposal to complete a water utility financial plan and share charge analysis. N. Donovan moved that we hire FCS Group to complete the scope of work as presented and summarized for a fee not to exceed $47,550. S. Salmon seconded the motion. Motion passed 4 to 0 with Board present.
B. Red Flag Policy – Staff explained a new law requiring private/public entities to develop a program that would help guard against identity theft. L. Jones became aware of this requirement at the recent water conference. L. Jones distributed a copy of an Identity Theft Prevention Program that staff developed. Upon review and a few suggested modifications, S. Salmon moved to adopt the Identity Theft Prevention Program. M. Hinds seconded the motion. Motion passed 4 to 0 with Board present.
C. Tacoma Service Area Relinquishment – L. Jones reported that Tacoma would like to permanently relinquish part of their service area to Firgrove because it will take too long for Tacoma to be able to service the area. L. Jones stated that Firgrove has enough water to permanently service that area, based upon the most recent evaluation of water rights and growth projections. The area is located adjacent to zone 2A, SE section, and is approximately 34 acres. M. Hinds moved to give L. Jones authorization to sign the service area agreement with Tacoma. S. Salmon seconded the motion. Motion passed 4 to 0 with Board present.
D. Hydrological Study – L. Jones distributed the Robinson Noble & Saltbush (RNS) scope to complete their part of the Water System Plan. After review, N. Donovan moved to accept the RNS Scope of Services, Exhibits A and B, for a cost not to exceed $13,980 total. S. Salmon seconded the motion. Motion passed 4 to 0 with Board present.
E. Demographics Study – L. Jones distributed a summary of costs proposed by HDR to complete the Demographics/Conservation chapter of the Water System Plan which would also include water use efficiency information. Total cost for this proposal is $19,588. S. Salmon moved that we accept the HDR proposal. N. Donovan seconded the motion. Motion passed 4 to 0 with Board present.
F. T-mobile Lease – Staff explained that staff had negotiated increased fees for a second T-Mobile cell tower lease, which is ready to be executed. The new lease included an escalator for cost of living. N. Donovan moved to give L. Jones authority to sign the T-mobile contract on behalf of the company. S. Salmon seconded the motion. Motion passed 4 to 0 with Board present.

VI. Staff Reports:
A. Finance:
• Cash Sheet – No questions.
• Employment Security Division Law – L. Triplett explained that the law covering unemployment insurance for company officers is changing in 2009. Under the new law, officers are covered unless we request that they be exempted. Because the Federal unemployment tax credit earned by paying the state tax results in lower over all taxes staff will not request the exemption.
• DWSRF Update – L. Triplett reported that the state-requested supplemental financial information has been submitted.
B. Operations:
• 94th Street Project – M. Gipson reported that RS Underground has completed its work on the project and now Firgrove staff needs to relocate a few meters and abandon a 2-inch line.
• Tank Cleaning – M. Gipson distributed the tank cleaning report from June 2008. He also showed the Board a video of the tank cleaning process. Our tanks are in very good condition. AWWA recommends tank cleaning every 5 years. We are in alignment with our maintenance matrix.
C. Engineering:
• New Tank Site – V. Epp reported that Paul Bunyan is still undecided about allowing us to locate Firgrove’s new tank on their site. In light of that information and because of DWSRF loan requirements, staff is now evaluating other possibilities within our service area west of Meridian. Staff and consultant are evaluating a few potential sites and preparing a comparison matrix. More information will be available at the next Board meeting.
D. Administration:
• Solar Panels – L. Jones reported that staff evaluated using solar panels for energy needs and determined that it is not cost effective for larger installations but is considering using solar energy to power a small pump at a PRV station.
E. Board:
Investments – The Finance Committee met and L. Triplett talked to Jeff Allen, Firgove’s financial advisor at UBS. Jeff suggested another meeting with the Finance Committee to review investment options considering the state of the economy. At this time, the company’s conservative portfolio has helped reduce investment losses. Paperwork was completed for using BECU as a Firgrove depository.

VII. Informational Items: None.

VIII. Executive Session: None.

IX. Adjournment and Next Meeting: The next Board meeting was set for Tuesday, November 18. A tentative Board meeting was set for Tuesday, December 16. N. Donovan moved to adjourn the meeting at 8:03 p.m. and S. Salmon seconded the motion. Motion passed 4 to 0 with Board present.

X. Pending Items: Nothing added, subtracted, or changed.

XI. Board Committees: Nothing added, subtracted, or changed.