The meeting was called to order by Mike Deck at 4:04 PM. Those in attendance were board members (Mark Johns, Nick Bennett and Bob Champ) and Water System Operators (Frank Hauke and Dick Winters). Mary Wagner (Bookkeeper) was also present. Rick Moeller (board member) was absent (excused). No members of the public were present (John Wagner was present at the end of the Inclusion Hearing).

Secretary’s Report:

The minutes of the 14 November 2005 meeting were discussed. Nick Bennett made the motion that we approve the minutes of the 14 November 2005 meeting. Mark Johns seconded the motion, which was approved unanimously.

Nick Bennett made the motion that we open the inclusion hearing for 16 Ponderosa Drive. Mark Johns seconded the motion, which passed unanimously.

A board order of inclusion was prepared by Dick Lyons’ staff (legal). The board order included a description of the property and the publication notice. No written objections were filed. It was up to the board to determine if it was in the best interest of the District to include the property. It was noted that the water line would only have to be extended approximately 300 feet because the property owner was going to purchase an easement that would lessen the distance of the extension. Terry Kenyon had estimated the cost of this extension. Mike Deck had a reimbursement agreement which stipulated this estimated cost of extension to be $50,240. The agreement will assure that subsequent inclusions which connect off the extension will reimburse the property owner. It was also noted that the property owner responsible for the main extension to 510 Ponderosa Drive would be reimbursed accordingly. There was concern from Lafayette that the length of the extension could contribute to stale water. Mr. Wagner was aware of this and the 300 foot run in stead of the 1100 foot run should diminish the risk of stale water. The size of the tap was discussed and Mr. Wagner was inclined to install a ¾ inch meter.

Nick Bennett made the motion that we approve the board order for inclusion. Mark Johns seconded the motion, which was approved unanimously.

The board order was signed by the president and secretary and will be given to Dick Lyons (legal) so that it can be executed. The account number will be 122. A copy of the reimbursement agreement was given to Mr. Wagner. Mary will fax an invoice to Mr. Wagner for the tap fee. Terry will develop a plan to extend the line.

Nick Bennett made the motion that we close the inclusion hearing. Mark Johns seconded the motion, which passed unanimously.

Finance Report:

Mary Wagner had e-mailed the financial packet to the board (Balance Sheet, P&L ytd comparison, P&L budget vs. actual and the transaction report). Also e-mailed were the usage comparisons and the storage tank project expenses vs. budget. Mary noted that the $400 for the inclusion had not yet been deposited. Mary also noted that the bond payment was made on November 30^th.

Frank e-mailed the following report to the board and presented it at the meeting.

• We put in 1 hrs monitoring and 3 hrs maintaining the system from November 8, 2005 thru December 6, 2005.

• Took water sample for E-Coli lab test at 7493 Spring Drive fire hydrant. Chlorine measured 0.96 mg/l. Sample passed.

• Read water meters on 11-30-2005.

• Flushed an outline fire hydrant at 7529 Spring Court.

• We purchased a tool to remove the valve covers. It cost $67.37. We had to modify it to make it work.

The procedure for flushing the hydrants was discussed. The chlorine level is measured during the flush and the procedure should reflect this. Frank will review the procedure and correct, if necessary.

Mark had a final invoice from Terry Kenyon itemizing the engineering costs for the storage tank. Mary will pay the final invoice and this will close out the paying for storage tank.

Nick Bennett handed out a Budget Development Package Rate Proposal which stated the principles used in establishing the water rate scenarios that he had summarized in the handout. Nick reviewed the different rate scenarios. The primary reason for a rate increase is the funding of capital projects stipulated in the IGA with Lafayette. Because our revenue primarily comes from water, a wet summer could significantly affect our water revenue. Therefore, the base rate and the lower levels of water usage have to be raised. The board looked at the scenarios and decided that the rate #3 scenario would give us the best revenue and earnings to fund the capital projects.

Nick Bennett made the motion that we approve rate #3 beginning in January 2006 with a base rate of $51.50 per month and increases per thousand gallons as stipulated in the rate table. Mark Johns seconded the motion, which passed unanimously.

The inclusion fee is currently $400 and it is surmised that the legal fees will actually be more than this. Nick Bennett made the motion that we increase our inclusion fee to $500, effective immediately. Mark Johns seconded the motion, which passed unanimously.

Mark will hunt up a description of the Gen set for insurance purposes and get a copy to Mike.

A motion was made to adjourn by Mark Johns, seconded by Nick Bennett and unanimously approved. The meeting was adjourned at 6:20 PM.

The above is respectfully submitted by the secretary…Bob Champ, December 13, 2005.