GUESTS:

KALBERER GATE ISSUE: Patron, Jackie Kalberer requested an audience with the Board regarding her gate. The District has replaced the old check boards with a gate. Now the water runs under a gate instead of over the check boards. Ms. Kalberer claims that because it is on a down slope the current does not allow water to go into her pipe. She believes that the gate needs to be cut across the top below the ditch level. She believes that water will not go into her pipe that is diagonal to the ditch because the water goes under the gate as opposed to over the gate. Ms. Kalberer is in Director Coleman’s division. He agreed to go out to the Kalberer property to inspect the situation and report back to the Board.

DAVID HADLEY-HERMISTON SCHOOL DISTRICT POTENTIAL LAND SALE: The Hermiston School District has submitted a Purchase and Sale Agreement along with an appraisal of $50,000 to HID for the purchase of 4.2 acres of property on Theater Lane.

Mr. Hadley brought a City of Hermiston Zoning Map and described some of the features, history and future intentions of the City from the map. Mr. Hadley suggests that the District may want to consider existing and proposed development of properties in and around this area in making their decision, including the fact that south of the property the City of Hermiston Planning Commission approved on May 11, 2010, the Cimarron Terrace Planned Unit Development.

He suggests that HID consider establishing an ultimate closing date for the sale, since as long as the Agreement is open HID may be limited with its ability to market or sell the remainder of the property. He suggests that HID obtain a preliminary title report, include it as part of the counteroffer and state clearly which title exceptions are going to exist when the School District obtains the deed from HID.

After extensive discussion, it was agreed that the Board will think about this matter and discuss it further at the next Board meeting.

DAVID HADLEY-BURNS DESERT SKY SUBDIVISION DEVELOPMENT AGREEMENT: Mr. Hadley is working diligently on the completion of the Development Agreement and certificate of deposit (CD) from Mr. Burns through Banner Bank. He has researched the CD option and is confident in the District’s ability to collect on the CD if necessary. Mr. Burns expressed concern over the return of his funds not being until the end of the water season following the installation of the pipeline. The Board continues to agree that satisfactory completion of at least one water season is needed to make sure that the facilities function properly and do not leak. They are not willing to change this agreement issue.

Mr. Hadley will continue negotiate between to the parties to get this matter completed.

MINUTES: The Board reviewed the minutes of the April 8, 2010, Regular Board Meeting. Director Jeppeson moved to approve the minutes as presented. Director Locke seconded the motion and it carried unanimously.

FINANCIAL STATEMENTS & VOUCHERS: The Board reviewed the Profit & Loss Report for April 2010. The Board reviewed and signed the April/May 2010 Vouchers Report. Vouchers Numbered 36553 through 36632 were reviewed and approved. The Board also signed expense checks.

POTENTIAL LAND SALE – COLUMBIA LIFE KNOWLEDGE CENTER (CLKC): Manager Wilcox reported that has been in contact with them and they have applied for a grant through Soil & Water Conservation District that they could potentially use for property improvements.

COLEMAN OATH OF OFFICE: Manager Wilcox read and Director Coleman agreed to the Oath of Office for the term of January 1, 2010, to December 31, 2010.

Director Locke moved to accept these changes to the 2010 Fee Schedule as presented. Director Jeppeson seconded the motion. There being no further discussion, motion carried unanimously.

HEALTH INSURANCE REVIEW: The District’s health insurance plan runs on a June to May policy year. The Board was provided with the new insurance rates summary from SDAO for their review. The increase for the current policy term is 12.4%. The Board was informed that further changes may come as the federal government’s changes are implemented in January 2011. The new laws state that employer provided health insurance premiums will be added to the employee’s W-2.

FORECLOSURES: Business Manager, Annette Rambel submitted two accounts to the Board that meet the requirements to be forwarded to the District’s attorney to begin the foreclosure process. The two accounts submitted were Bruce & Kathy Allen’s property 5N2823 700 and Dale Morrell’s property 4N2821B 801.

Director Locke moved to have the Allen & Morrell accounts forwarded to Attorney Doug Hojem to begin foreclosure proceedings. Director Jeppeson seconded the motion. There being no further discussion the motion carried unanimously.

ADJOURNMENT: There being no further business, the meeting was adjourned by Vice-Chairman Bergstrom at 6:13 p.m.