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 still 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, Director Bergstrom moved to submit a counterproposal of $15,000 per acre, with six months to close and that they obtain a preliminary title report. Director Locke seconded the motion. There being no further discussion, the motion was taken to a vote and passed with four in favor, zero opposed and one abstained.

Mr. Hadley will handle the negotiations for this matter.

DAVID HADLEY-BURNS DESERT SKY SUBDIVISION DEVELOPMENT AGREEMENT: Paul Burns has signed the Development Agreement for Desert Sky Estates, obtained and delivered the Certificate of Deposit letter from Banner Bank, delivered the mylars and paid all of the applicable fees.

Manager Wilcox mentioned to the Board that there was one change. Due to supply, 4’ field fence was permitted to be used along with the temporary 6’ chain link fence.

Director Bergstrom moved to accept Certificate of Deposit Assignment and the Development Agreement and to have Chairman Miller and Manager Wilcox signed the Agreement for the District. There being no further discussion, the motion passed unanimously.

MINUTES: There were no minutes presented to the Board at this meeting.

FINANCIAL STATEMENTS & VOUCHERS: The Board reviewed the Profit & Loss Report for May 2010. The Board reviewed and signed the May/June 2010 Vouchers Report. Vouchers Numbered 36633 through 36666 were reviewed and approved with one item adjustment that needed to be reclassified. The Board also signed expense checks.

POTENTIAL LAND SALE – COLUMBIA LIFE KNOWLEDGE CENTER (CLKC): Manager Wilcox has had no contact with anyone regarding this matter this month.

The roof on the addition has moss problems under the shingles on the south side of the house. The contractors recommend replacing the shingles on that area of the house and to spray the rest of the roof. The estimate for the kitchen and roof repairs is $2,500 to $3,000. Director Bergstrom noticed that the trim of the house needs to be repainted. Director Bergstrom moved to approve the repairs to the kitchen floor and roof at the Echo rental house. Director Jeppeson seconded the motion. There being no further discussion, the motion passed unanimously.

The Board would like management to get estimates to repaint the exterior of the 4^th Street rental house. Chairman Miller also requested that the graffiti get cleaned up from the side of the office building.

There is water seeping out on Banker Ln and getting into Mike Kay’s backyard. On Tuesday the crew went to that area to research the problem. Water is hitting a hard layer and traveling downward. The District currently has a hole dug along the pipe and a sump pump pumping the water back into the canal. They planned to make a dry well that they can pump out of until the end of the season when they can put in a cut-off wall.

Manager Wilcox suggested to the Board that the District needs address these issues of developers cutting into natural drainage areas and coming back to the District to correct the problem. He suggests taking language like what is in the development agreement that people will have to sign and agree to before being issued permission for a building permit. This would inform the builder that the District is not responsible for seepage when they cause these problems by building below a canal.

Chairman Miller suggested that Manager Wilcox research this matter, confer with Attorney David Hadley and bring a proposal back to the Board for review.

KALBERER: Director Coleman went look at the problem the Ms. Kalberer reported with her check being replaced by a gate. Director Coleman did not find any problems with her water delivery system.

JEPPESON FLOODING PROBLEM: Manager Wilcox explained to the Board that the Bureau of Reclamation is still flooding their property. They have been shut-off twice and want to know what they can do to get water. Manager Wilcox told them to get an orifice plate. If they open up then the Jeppesons and the Zinters get very little water. The Bureau says that they don’t have the funds to install a sprinkler system. Director Jeppeson cannot finish installing his pipeline because they are saturating his land. They were notified along with all of the other patrons on that line that they needed convert to sprinkler. Manager Wilcox will speak to personnel at the Yakima Field Office to try to resolve the situation.

ADJOURNMENT: There being no further business, the meeting was adjourned by Chairman Miller at 5:30 p.m.