KPSD Board Meeting Minutes July 12, 2021


Written by Laura Dallas

July 12, 2021

BOARD MEETING was called to order at 6:00 p.m. by Board Chairman Jim Osman.  Other Board members present were Eric Paull, Bob Thurston, Larry Ellis and Cliff Sires. Employees present were Tanner Weisgram, Colleen Johnson, and Laura Dallas. Public in attendance was Mark Johnson, Brett Converse, Steve Holt, Ben McGrann, Mark Haymond and Peter Haymond.  Brian Werst, District’s Legal Counsel attended via Zoom.



  • 6:00 pm – Brian Werst, District Legal Counsel
  • 6:15 pm – Brett Converse, JUB
  • 6:30 pm – Ben McGrann, Ponderay Cottages
  • 6:45 pm – Mark Haymond, Haymond Brothers Construction           

ADDITIONS TO AGENDA: Less than 48 hours. 

Minutes:  Minutes from the June meeting were approved as submitted.

Financial Statements:  Financials were not available at the time of the meeting due to software changes.  Will have at the Budget Workshop on the 20th of July.  Checks were not presented at this time for Board signatures.  Colleen will print out and call members in for signature.

Maintenance Report:  Maintenance Report was approved as submitted.


  1. NPDES Permit: Brett updated Board on the continuing lake study, still talking to Sandpoint about regionalization, and Schweitzer still in talks about land applying. Sandpoint may be performing a rate study, if so, it should be ending the same time as the lake study. Another option that has presented itself is the construction of a new golf course that would have approximately 86 acres of irrigated land for the district to utilize for land applying.  The group may be presenting to Board as early as next month.
  2. The Board, with Brian Werst, the District’s legal counsel, discussed the Seven Sisters, LLC request for recoupment on their Sewer Main Extension (SME) costs. It would be recoupment from the property to the East of Seven Sisters Development should they decide to connect to Seven Sisters, LLC SME.  The original contract for the SME that was signed by all parties outlined specifically that all receipts associated with the cost of the SME had to be turned into the District within 90 days of completion to be considered for recoupment.  The final phase of the SME was completed in 2015.  Receipts were not presented to the District.  Brian noted that it would need to be a unique reason to accommodate an unprecedented decision to go outside of the normal contract agreement and the Board would need to memorialize the reasons why. Eric moved to deny the request for recoupment due to the request being far outside of the 90-day deadline for receipts.  Cliff seconded the motion.  All in favor. The request from Seven Sisters, LLC regarding the re-assignment of capacities is moving forward with Colleen working with Mauricio from Seven Sisters, LLC while Sean Hefley is out of the office.
  3. Budget Workshop is being held on Tuesday, July 20th. Jim has asked for a comparison report to be available that would show the gap over the years of operating costs to rates collected.  The report is to show where the District is at closing the gap so that reserves are not being transferred. Should show the projected year as well.
  4. Ben McGrann, Ponderay Cottages addressed the Board requesting the change of the New User Facility Fee for the Additional Dwelling Units (ADUs) to be less than 1 ER. Jim reminded the Board that there was discussion of metering the properties for usage; however, it would still be adding a new rate for ER purchasing and it would need to be addressed at a Public Hearing.  Ben stated that surrounding areas are charging a connection fee for ADUs at 50% of a single-family residence.  Ben does not believe he can justify paying over $15,000 per lot for sewer connection fees. He is not sure how many of the 17 residences will also want the ADU.  The infrastructure is being designed for 17 homes with 17 ADUs. The District is aware of some additional areas where “Tiny Homes” are being proposed and this seems like it will be coming up more in the future. Some discussion around what defines a “Tiny Home” and an “ADU” such as square footage, number of fixtures, size of ADU as compared to Single-Family Residence. For the budget meeting on the 20th of July the Board would like some research on what defines the ADU.  Colleen will reach out to the City of Sandpoint as well as engineering for some industry standards. Tanner added that with looking at outside areas we need to keep in mind how “Tiny Homes” benefit the entity – City vs District. As the benefit to the City for “Tiny Homes” may include increased City utilities as well as taxes. The District will be holding a Public Budget & Rate Hearing the end of August 2021 as part of its budget year end reporting.  No decision was made.



  1. The City of Ponderay is holding Ponderay Days again this year. The District has historically donated $150.00 for the event.  Bob moved to donate again this year in the amount of $150.00.  Larry seconded the motion.  All in favor.
  2. There have been requests within the District for dumping of personal RVs into private cleanouts. This has been allowed in some cases without the purchase of an additional connection fee; however, no formal agreement has been put into place by the District.  The Board and Brian Werst discussed the merits of creating a new agreement form that would be signed and recorded against the property.  This document is acknowledgement of the rules and regulations that would be put into place thus allowing the District to enforce any misuse of the dumping site.  The new agreement would include a definition of how the dump site can be used and a fine structure for any misuse up to including the purchase of the additional connection fee. The District will need to add this new practice into the District Rules and Regulations.  Colleen will work with legal on the proper wording for the agreement.
  3. Mark Haymond addressed the Board on behalf of himself and his brothers – Haymond Brothers Construction. (For the record full disclosure was made by Board Chairman, Jim Osman, that he is a friend of Mark’s.)  Mark and his brothers, as 95 Express, LLC, are under contract to purchase a parcel of land on Highway 95 just north of GVD.  They were approved through planning and zoning unanimously for the construction of the carwash.  There is, after the approval, some opposition to the project so it may be months before they can get started.  However, they would like to move ahead with sewer approval.  Mark is suggesting that 95 Express, LLC purchase 5 ERs when submitting the building permit application for approval, then prior to occupancy being approved they would be purchasing an additional 25 ERs.  The District would be able to monitor this as it will be a pressure system and cannot be utilized until valve is turned on by the District.  Cliff motioned to accept the proposal of purchasing 5 ERs with building permit application and an additional 25 ERs at occupancy approval.  Larry seconded the motion.  All in favor.



  1. Single-Family Residence Sewer Service Request, NNA 4th Avenue, Bl 22, Lot 23 Twin W Properties
  2. Single-Family Residence Sewer Service Request, NNA 4th Avenue, Bl 22, Lot 24 Twin W Properties
  3. Single-Family Residence Sewer Service Request, NNA 4th Avenue, Bl 22, Lot 22 Twin W Properties
  4. Single-Family Residence Sewer Service Request, 120 Carnelian Avenue, Tom & Susan Miller
  5. Commercial-Industrial Sanitary Sewer Request, 258 McGhee Road, Laneco Marine
  6. Commercial-Industrial Sanitary Sewer Request, 80 McNearney Road, KCS Field Service, LLC
  7. Commercial-Industrial sanitary Sewer Request, 870 Kootenai Cutoff Road, (Food Truck at Animal Shelter) Panhandle Pizza Kitchen



  • 72-206 (f): To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated but imminently likely to be litigated.  The mere presence of legal counsel at an executive session does not satisfy this requirement. 

Motion to close regular Board Meeting and enter Executive Session was made by Bob and seconded by Eric.

Roll Call:           Eric – Yes         Bob – Yes         Jim – Yes         Larry – Yes       Cliff – Yes

Entered Executive Session at 7:33 pm.  In attendance was Board Chair Jim Osman, Board Members Eric Paull, Bob Thurston, Larry Ellis, and Cliff Sires. Employees present were Tanner Weisgram and Colleen Johnson.  Brian Werst, District’s Legal Counsel attending via Zoom.

Motion to come out of Executive Session by Cliff and Seconded by Bob.

Roll Call:           Eric – Yes         Bob – Yes         Jim – Yes         Larry – Yes       Cliff – Yes

Decision was made to have Brian Werst proceed with the counter offer as determined by the Board.

Motion to accept decision by Bob ad seconded by Cliff.

Roll Call:           Eric – Yes         Bob – Yes         Jim – Yes         Larry – Yes       Cliff – Yes

Motion to adjourn meeting by Larry and seconded by Cliff.  All in favor.

Meeting was adjourned at 7:47 pm.

Meeting signed by Laura Dallas, District Clerk.

Executive Session signed by Colleen Johnson, District Business Office Manager.

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