North Kootenai Water District

May 11, 2006

BOARD SPECIAL MEETING MINUTES

A. Call To Order/Roll Call

Meeting called to order at 6:00 p.m. by President Davis.

Present: Jack Berger, Director/Vice President

Tom Crimmins, Director

Linda Davis, Director/President

Maimie Moore, Director

Excused: Richard Fairhurst, Director/Secretary

Staff Present: Phil Boyd, District Engineer

Bob Covington, District Attorney

Mike Galante, District Manager

Brad White, District Field Supervisor

Visitors: Arthur B. Macomber, Attorney-at-Law

B. Agenda Items:

1. Public Hearing On Water Fees:

President Davis introduced staff.

District Manager gave brief biography of the North Kootenai Water District, history of the District, and reason for public hearing.

District Engineer presented 4 major goals of the proposed rate structure: Base fixed cost, pay as used basis for water, funded depreciation, and to promote water conservation. Last rate increase was in 2001. Rates charged are based on fixed cost, Debt Service Surcharge, and water usage. The District has used in the past a 3 tier water rate system. A 4^th tier is proposed; this tier is designed to promote water conservation. The goal of the Board was not to affect those households that use low amounts of water.

President Davis opened floor to questions and answers.

Tami Sonnen, 2077 Sundown Dr., placed a verbal phone call to the District office May 11^th, she also contacted Phil Boyd, District Engineer. She expressed concern that the existing houses should not have to pay higher rates, and that the new houses should have to pay impact fees. She has a family of 5 and in the summer she uses 50,000 gallons per month, waters her lawn sparingly, and she should not be penalized with the higher 4^th tier.

Public Hearing closed at 6:12 p.m.

C. Adjournment:

Meeting adjourned at 6:12 p.m. by President Davis.

Michael Galante, District Manager