The meeting was called to order by Mike Deck at 4:04 PM. Those in attendance were the board members (Bob Ristinen, Bob Farmer, Bob Champ, Mike Deck and Bill Barclay), and Terry Kenyon (Engineering). Our two Operators (Dick Winters and Frank Hauke) were present. Mary Wagner (Bookkeeper) was also present.

Comments:

The purpose of this meeting was to work out the 2002 budget for the upcoming budget hearing at the November 19, 2001 regular meeting. The recent hydrant testing was discussed. These tests showed that flow was between 650 and 1000 gpm over a 5-minute test on 3 hydrants. Discussion ensued on the testing

Mike passed out some preliminary worksheets. Our first objective was to set the water rates. The average amount of water used per household had to be estimated. This topic was discussed in some detail. It was decided that we would use an average of 10,000 gallons per month per household. We estimated 98 households would be active during 2002. The rate used for 5-10K gallons was $2.73. It was thought that, if anything, this was a conservative number for our planning purposes. Cost of the water, in this volume, from Lafayette is $1.83 per thousand gallons. Our total revenue was on the order of $111,000.

The minimum fee (taps not being used) was also discussed. It was decided that the minimum fee should be increased from $20 to $25 per month per tap.

The budget work session continued with discussions on each line item in the budget.

The number of billing periods during the year was discussed and it was decided to bill nine times per year (more often during the summer months).

Our total expenses were on the order of $77,000.

The Capital Revenue and Expenses were then discussed.

The Capital Expenses were discussed in detail. The generator and the fire pump were discussed and it was decided to keep these items in the Capital Budget, pending future hydrant testing. The water mains in Benchmark were also discussed with respect to the Capital Plan and at the recommendation of Frank and Dick it was decided that these mains are probably in good working order and the cost of replacing them could be dropped from the Capital Budget.

Mike presented a long term capital plan (to 2018). This plan was discussed in detail. Items in the long-term capital plan were the 100,000-gallon storage tank, the Paragon Loop, the Empire-Spring Loop and the Panorama-Spring Loop. These surcharges will come out of the $46.50 and $25 monthly fees. It was decided that these charges would be enough to fund the future Capital Improvements.

Mike will be absent at the budget hearing on the 19^th of November and Bill will preside at the hearing. We will have the finalized budget to be approved at this meeting.

Newsletter:

Mike passed out the draft of the Newsletter to be included with the bills. This was reviewed and changes will be made regarding clean-up items and billing frequency.

Auditors:

Bob Farmer made the motion that we appoint Schommer and Watkins as our auditors. Bob Ristinen seconded the motion, which passed unanimously.

Reimbursement Agreements:

Reimbursement agreements will be adjusted for actual line extension charges. These agreements will be signed when checks are dispersed.

A motion was made to adjourn by Bob Champ, seconded by Bob Ristinen and unanimously approved. The meeting was adjourned at 6:09 PM.

The above is respectfully submitted by the secretary…Bob Champ, November 13, 2001.