REGULAR MEETING OF THE BOARD OF DIRECTORS

April 19, 2017

1:30 p.m.

The meeting was called to order by Chairman Nicholson with Jim Hickey, Curt Lorenz, Mike Sims and John Handler present. Also present was Manager Bruce Halverson, Keri Scott and Janet Lease. There were no members of the public present.

MINUTES

Jim Hickey made a motion to approve the minutes of the March 15, 2017 meeting as presented. The motion was seconded and passed unanimously.

FINANCIAL REPORT

Mike Sims asked about the progress payments to Kennedy/Jenks Consultants for the Administration Building Force Main Project. Kennedy/Jenks has a contract for the project and they are nearing the end of the contract but there will be more payments until the project is completed and all specifications are completed. Mike Sims made a motion to approve the financial report for the month ending February 28, 2017. The motion was seconded and passed unanimously.

UNFINISHED BUSINESS

There is no unfinished business at this time.

NEW BUSINESS

Resolution 2017-04: Declaring Surplus Property

A list of equipment not needed anymore is presented to the Board to declare it surplus. The items on the list will be offered to other local governments. Anything left will then to be offered to the general public. Curt Lorenz made a motion to adopt Resolution 2017-04: Declaring Surplus Property. The motion was seconded and passed unanimously.

Personnel Committee Report

The Personnel Committee for 2017-2018 was Owen Nicholson, David Wilson and Manager Halverson. The committee met after the salary surveys had been received. The consumer price index for 2016 was 2.6%. Owen Nicholson and Manager Halverson summarized the report recommending the following: 1-Adjust the Pay Range Table by 2.5% rounding down from the Portland CPI rate of 2.6%, 2-The Manager will remain at the top of Pay Range Table (Range 15, Step 6), 3-The only salary adjustments will be due to the Pay Range Table adjustment, 4-No changes in the non cash benefits.

REGULAR MEETING OF THE BOARD OF DIRECTORS

April 19, 2017

Page Two

NEW BUSINESS CONTINUED

Personnel Committee Report Continued

It was also noted the health insurance program with SDAO is reporting a 2% decrease in premiums for health & vision, no changes in life insurance and an 8% increase in dental. John Handler made a motion to accept the Personnel Committee Report dated April 6, 2017 as presented. The motion was seconded and passed unanimously.

MANAGER'S REPORT

Projects Update

Manager Halverson updated the Board on the following projects:

Administration Building Force Main Project: The remaining paving will take place when the weather gets better.

Manhole Repairs: We are evaluating the latest TV inspections to outline any leaky manholes that need to be sealed. C-More Pipe will do the repairs once 10 manholes are determined needing resealed.

Change in the Disinfection Methods: The costs for chlorine and sulfur dioxide continue to rise so it is time to finalize the research and change the process of chlorinating and de-
chlorinating. The process which has been extensively researched over the last couple of years is using sodium hypchlorite (bleach) and sodium bisulfite (SBS). The NBWA will purchase the equipment from a company called TMG, who will do the installation and train the staff. The product will come from a company called North Star who will provide the tanks with the purchase of their product. If a tank fails, then North Star replaces it at no cost. The current cost of the chlorine and sulfur dioxide is around $25,000-$30,000 a year. With the change to bleach and SBS, the estimated cost will be around $8,000-$11,000 a year. Along with the cost savings, the safety hazards will be greatly reduced since we will not be handling compressed gas anymore. Manager Halverson reported he has contacted DEQ to get permission to transition out of chlorine gas to the new method. DEQ usually supports getting away from compressed gas. Once the okay is received from DEQ, the transition will begin with hopes of getting the system up and operating in July 2017. One other option was researched - peracetic acid, however, the pilot projects in the Portland area did not produce good results. Algae is always a problem with lagoon systems and there seems to be no real good solution to eliminate algae except installing a large, very expensive filter system.

REGULAR MEETING OF THE BOARD OF DIRECTORS

April 19, 2017

Page Three

BOARD COMMENTS

The upcoming May meetings were reviewed: The Budget Committee Meeting will be held on May 3, 2017 at 7pm. After discussion, the regular meeting of the Board of Directors will be held on May 17, 2017 with the time change to 1:30pm. Owen Nicholson will not be in attendance for the May meetings.

PUBLIC COMMENTS

There were no members of the public present.

There being no further business, Chairman Nicholson adjourned the meeting at 2:00 p.m.

Owen Nicholson, Chairman

Bruce Halverson, Manager