REGULAR MEETING – MARCH = 20, 2007

BOARD MEMBERS PRESENT &= nbsp; &nbs= p; &= nbsp; &nbs= p; VISITORS

&= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p;

Cra= ig Johnston = ; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; Keith Worley

Jim Matchett = ; &n= bsp; = ; &n= bsp; = ; &n= bsp; = ; John Aitken

Ton= y Lucas &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; Nancy Aitken &= nbsp;

Mike Hayes = &nb= sp; &= nbsp; &nbs= p; &= nbsp; &nbs= p; Patricia Peterson

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Gary Peterson – Excused Absence

STAFF / CONSULTANTS=

Diana Miller – District Manager

Sco= tt Monroe – SEMOCOR, Inc.

1.0 CALL TO ORDER

&= nbsp; The meeting was called to order at 16:30.

2.0 NEW BUSINESS

2.1 MEETING MINUTES - A motion was made and seconded; (RESOLUTION 07-022): TO APPRO= VE THE MINUTES OF THE FEBRUARY 20, 2007 REGULAR BOARD MEETING OF THE PERRY PARK WATER AND SANITATION DISTRICT<= /st1:City>, AS PRESENTED. Passed unanim= ously.

2.2 = WATER/SEWER PERMITS – The following permit had already been approved:=

&= nbsp; 1349 Arrow Construction &= nbsp; 914 Cottonwood Lane

&= nbsp; Five (5) permits have been issued year to date.

2.3 <= span style=3D'font-size:12.0pt;font-family:Arial'>DISBURSEMENTS – A motion was made and seconded; (RESOLUTION 07-023):

TO APPROVE CHECKS 18370 – 18410 IN THE AMOUNT OF $107,317.56 FROM WELLS FARGO BANK WEST.&nb= sp; Passed unanimously.

A motion was made and seconded; (RESOLUTION 07-024): TO RATIFY CONSENT AGENDA ITEMS DATED FEBRUARY 23, 2007 IN THE AMOUNT OF $2,869.46 WHICH WERE PREVIOU= SLY DISBURSED FROM WELLS FARGO BANK WEST. Passed unanimously.=

A motion was made and seconded; (RESOLUTION 07-025): TO RATIFY CONSENT AGENDA ITEMS DATED MARCH 9, 2007 IN THE AMOUNT OF $3,971.79 WHICH WERE PREVIOUSLY DISBURSED FROM WELLS FARGO BANK WEST. Passed unanimou= sly.

Director Hayes let the District Manager know that he was looking forward to a check register that was easier to read. She let him kn= ow that as soon as the Customer Billing System conversion was complete, she wo= uld generate a customized check register via Crystal Reports.

The Board requested specific details on check number 183= 85 for emergency repairs done on Crow Drive. The staff explained that the water main= was too shallow and did not meet the District’s standards for coverage. Insulation of the line was included in the repair work. <= /p>

3.0 STAFF AND CONSULTANT REPORTS

3.1 PERRY PARK WATER AND SANITATION DISTRICT SYSTEMS REPORT – The members of the Board reviewed the monthly operations report which had been submitted by SEMOCOR, Inc.

3.2= MO= NTHLY STAFF REPORT – The members of the Board reviewed the Monthly &= nbsp; Staff Report which had been submitted by the District Manager.<= /p>

The Board discussed the White/DGKS Feasibility and Impact Study. A motion was made and seconded:&nbs= p; (RESOLUTION 07-026): TO ACCEPT THE WHITE/DGKS FEASIBILITY AND IMPACT STUDY. Passed unanimously.

The Board requested clarification and background informa= tion on the number of taps that the District holds in reserve. Mr. Monroe let the Board know that this information was available in the 2001 Master Plan. The District Manager let the Board know that she would research the source of information and also insure that updated tap reserve estimates be included = in Comprehensive Master Plan update that is underway.

The Board discussed the Riesling/Meribel Village LID #1 Water and Sewer Feasibility Study 2. A motion was made and seconded: (RESOLUTION 07-027): TO ACCEPT THE RIESLING/MERIBEL VILLAGE LID #1 WATER AND SEWER FEASIBLITY STUDY 2. Passed unanimously.

The Board discussed the Riesling/Meribel Village LID #2 Water and Sewer Feasibility Study 2. A motion was made and seconded: (RESOLUTION 07-028): TO ACCEPT THE= RIESLING/MERIBEL VILLAGE LID #2 WATER AND SEWER FEASIBLITY STUDY 2. Passed unanimously.=

Director Matchett requested clarification on the two (2) included in the title of both Riesling/Meribel Village studies. The District Manager let him know that a study was originally completed in 2005 under the assumption that an inclusion into the District would be necessary.

The Board reviewed a recommendation submitted by TEC for grading and erosion control work required at the A-2 well construction site. After a brief discussion, a motion was made and seconded: (RESOLUTION 07-029): TO ACCEPT THE PROPOSAL SUBMITTED BY HENKLE DRILLING IN THE AMOUNT OF $7,850 FOR WORK ASSOCIATED WITH THE DOUGLAS COUNTY GRADING AND ERROSION CONTROL PERMIT. Pas= sed unanimously.

Director Hayes provided the Board and audience with a summary of the activities that had been completed by the Reservoir Committe= e. He summarized the plan for determining the most appropriate reservoir site(= s). He discussed many factors that must be analyzed when selecting a reservoir location. Soil testing, environmental concerns and operational requirements were noted.

The Board reviewed a proposal for Engineering Services Related to Evaluation of Raw or Reclaimed Water Storage Reservoir Sites that had been submitted by Nolte Associates, Inc. The proposal had previously be= en reviewed and is recommended by the Reservoir Committee and Mr. Alan Hill the District’s attorney. Director Hayes requested that the District Manag= er have verbiage in Article 7 – Payment of the General Terms and Conditions agreement be modified to accommodate the District’s Board Meeting schedule. A motion was made = and seconded: (RESOLUTION 07-030): TO ACCEPT THE PROPOSAL SUBMITTED BY NOLTE AS= SOCIATES, INC. IN THE AMOUNT OF $61,795 PLUS TIME AND MATERIALS FOR WORK NOT INCLUDED= IN THE WORK ORDER. Passed unanimously.

The Board reviewed a proposal for Threatened and Endange= red species and wetland assessments for 4 alternative reservoir sites which had= been provided by Walsh Environmental Scientists and Engineers, LLC. The work performed would be in conjunction with the efforts of Nolte Associates, Inc= . A motion was made and seconded: (RESOLUTION 07-031): TO ACCEPT THE PROPOSAL SUBMITTED BY WALSH ENVIRONMENTAL SCIENTISTS AND ENGINEERS, LLC IN THE AMOUNT OF $10,934 TO PERFORM ENVIRONMENTAL ASSESSMENTS ASSOCIATED WITH RESERVOIR SITE SELECTION. Passed unanimously.

The Board reviewed a memorandum from the Urman Company t= hat identified health insurance rate increases (11%) that would become effectiv= e in July 2007. Director Lucas exp= ressed concern about health care costs in general being out of control. Director Matchett reviewed the goals of the Staffing Committee and the need to addre= ss the various components of employee compensation as a total employee compensation package. A motion was made and seconded: (RESOLUTION 07-032) TO RENEW THE DISTRICT’S CEBT MEDICAL (PPO III) POLICY VIA THE URMAN COMP= ANY FOR ONE YEAR. Passed unanimously.

The members of the Board reviewed the monthly Project St= atus Report which had been submitted by the District Manager. =

The members of the Board reviewed the monthly Service Improvement Project Status Report which had been submitted by the District Manager.

The District Manager let the Board know that the annual audit was underway and that a representative would attend a Board Meeting in April to answer any questions that the Board might have related to the audit and general accounting principles.

The Board provided feedback on financial reports that had been produced from the new computer system. Director Hayes commented that revenue for the year was lower than projected.

4.0 OLD BUSINESS / IMMEDIATE ISSUES

4.1 Director Johnston requested information on a new Douglas County division related to storm water drainage and run-off.

5.0 AUDIENCE PARTICI= PATION

None.

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6.0 ADJOURNMENT= - A motion was made and secon= ded; (RESOLUTION 07-033): TO &= nbsp; ADJOURN THE REGULAR MEETING. Passed unanimously. The meeting adjourned at 18:= 40.

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ATT= EST:

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Sec= retary