ANNUAL MEMBERSHIP MEETING

• CALL TO ORDER  –  The 2008 Annual Membership Meeting convened at 7:00p.m. in the conference room of Kingsland Water Supply, located at 1422 West Drive in Kingsland, Texas. President Linda Raschke presided over the meeting.  She called the meeting to order at 7:00 p.m. and asked everyone to stand for the Pledge of Allegiance. Ms. Raschke thanked everyone for attending the annual meeting of Kingsland Water Supply Corporation.  She stated that this was an important meeting for the membership and she does appreciate you (the members) taking the time to attend.

Ms. Raschke addressed the membership - Tonight we have two positions to fill for the Board of Directors.  As you are aware, we have had a new board since January 2007.  In the past year, we have been involved in many changes here at Kingsland Water Supply.  We were able to hire a full time General Manager – Earl Foster.  He joined the company in October of this past year and has been doing an outstanding job.  His knowledge of the industry and the community has been invaluable.  Please take time to visit with Earl and get to know him and share any issues or concerns that you may have.

We are also in a “transition period” with regard to our Office Manager position.  Mona Wilson resigned at the end of the year.  Mrs. Wilson and her husband have relocated from the area – we want to wish Mona the best of luck.  At this time, please join me in welcoming Sharon Valentine in the temporary position.  Sharon has done a great job of stepping in and taking control of the bookkeeping and organizational duties and we do appreciate having her with us.

 
2) Sign In and Ballot Casting by Eligible Members  – Linda Raschke asked members to sign in and cast ballots. Linda explained that as of 5:00 p.m. last night we were still short of a quorum and need everyone who has not signed in to do so and we will verify the ballots and quorum.

3) CREDENTIALS COMMITTEE CHAIRPERSON REPORTS A QUORUM IS ESTABLISHED - Preston Mason established that we do have a quorum. Linda Raschke announced that two seats are up for election. Candidates for these seats are:

Bob Bender
Theodore J. Lenoch
Leon Seidl Sr.
Glen Shipman
          

4) APPOINTMENT OF TELLERS COMMITTEE  - Linda Raschke appointed Preston Mason, Carol Smith and Ted Phillips to the committee and they adjourned to tally the votes.
                                                                        
5) FISCAL YEAR 2007 AUDIT PRESENTED BY MIKE CENTER – Linda introduced Mike Center as the auditor of KWSC. Mike presented an overview of the 2007 fiscal year audit. (Full copies were available at the meeting to the members and attached to these minutes). The Water Supply is in excellent shape, continues to grow, and is positioned for future growth. This audit report is as of September 30, 2007 which is the end of our fiscal year. Mike reviewed all income and expense items, the Statement of Members’ Equity, cash flow reports, and all asset and liability accounts. Mike closed his presentation by praising the board and the staff of KWSC for the work done this past year. Linda thanked Mike for his report

6) MEMBER QUESTIONS – Linda Raschke asked if the members have any questions that they would like to ask.
Judd Wyatt asks why the professional fees soared. It is explained that the increase was due to the interim manager hired through contract services before Earl Foster was hired.  Judd  Wyatt also asked why we are purchasing water from LCRA and is this ongoing? Earl Foster explained that the water purchase will be ongoing and that the water is treated and used as drinking water. Mr. Wyatt then asked about the plant, to which Earl also answered that the plant is in need of an upgrade because it has reached its production capacity. Mr. Wyatt also asked why the water revenue was down for last year and it was explained by the board it was due to the heavy rainfall during the summer months, which is usually our peak season. Mr. Wyatt also asked about KWSC and KMUD merging. Bob Bender addressed this question with a response of we are not prepared to comment at this time.
Bob Bender Sr. asked why KWSC employees couldn’t vote at the annual meetings.  The board explained that the employees can vote as long as they are KWSC members.

7) MINUTES FROM THE PREVIOUS SPECIAL MEETING AND MANAGERS ANNUAL REPORT – The minutes for the previous special meeting held March 27, 2007 were read by Earl Foster.  Bob Bender made the motion to accept the minutes, Leon Seidl seconded the
motion. Linda announced that the motion carried.
            Earl Foster gave his annual managers report.

Fiscal Year 2006/2007

• Re: October 1, 2006 through September 30, 2007

Growth of the Corporation

• The Corporation issued 141 New Memberships
• Total Membership 2488 plus multiple service units @571 = 3059 total sue’s

Continued Training

• February CPR certification attended by Mona, Eloina, Sharon, Chris D., Chris M., Jeff, Lonnie, Lendel, Sean, Bill
• May Surface Water I in Marble Falls attended by Jeff Leverton, Chris Dunbar.
• June Surface Water II in Marble Falls attended by Jeff Leverton, Chris Dunbar
• June Customer Service Inspection attended by Chris Dunbar
• July Groundwater Class in Cottonwood Shores attended by Sean Schreiber
• September Surface Water I in Kingsland attended by Brad Beeching
• October Kingsland Water and Kingsland MUD held a joint Chlorine Safety Awareness for the Community Officials.  Approximately 40 people attended.
• November Safety Class in Kingsland attended by Sean Schreiber, Chris Dunbar, Lindel Graniger, Chris Mueller
• December Basic Water class in Horseshoe Bay attended by Brad Beeching

Summer Flooding

• The summer flooding caused damage to several lines, 10-inch water line crossing creek by Dairy Queen, 12-inch line on Texas Avenue, these lines were damaged by the flooding. 
• The summer flooding also uncovered several lines, 8 inch water line on county road 309 was uncovered in two separate locations, Kingsland Ranch @ 2342 6-inch line uncovered and several other locations had lines uncovered. 
• Flood Damage claims were in the amount of 55,368.00 dollars, FEMA Reimbursement in the amount of 43,187.04.  Total cost to KWSC 12,180.96 dollars.

Disposed of Vehicles and Equipment

• 2002 Dodge Intrepid
• 1997 Ford F-150 Truck
• 1993 Ford F-150 Truck
• 1958 Fork lift
• 1990 Ditch Witch
• Lawn Equipment 2 gas weed eaters, push mower, Toro tractor mower
• Sign on Trailer
• 20’ equipment trailer
• 16’ barricade trailer
• 12’ lawn trailer
• Total received for items 18,810 dollars.

New Equipment

• Small boring machine to bore new service connections.
• Rock Bucket and a 2’ bucket for backhoe
• A diesel containment was installed for the diesel tanks

Plant

• Hauled 24 tanker truckloads of sludge out of backwash pit.
• Super chlorinated filter #7 to clean thoroughly.
• Monthly calibrations on all online instruments.
• PLC at plant was damaged had to replace PLC.
• Added sand to several filters to bring filters back up to specifications.
• Added a bentonite feed system to help settle out floc.
• Replaced several backwash valves.
• Installed online turbidity meter to Clarifiers.
• Installed clay valve at water intake to help control amount of water that is pumped to the head of the plant.  Also remote controls were installed so that it can be controlled at the plant.
• Installed spare motor on raw water pump, so bearings could be replaced on motor.
• Work on Clarifier #1, scrapers, air nozzles.
• Replace clearwell motor #5 due to wear.
• Installed new mixer at head of plant.
• Replace valve on Clarifier #2, and Clarifier #3.
• Cleaned up lab thoroughly.
• SCADA computer failed, had to move hard drive to a separate computer to bring SCADA back up.

Field Maintenance

• Extended 8-inch line on Willowwood 1400 feet installed fire hydrant and 6-inch meter, vault, check valve, vault for Windchime new service.
• Extended line on Geronimo approximately 1000 feet.
• Extended 8-inch line on Post Oak and set fire hydrant.
• Extended 3-inch line on Boxwood.
• Extended 8-inch line on Link 500 feet.
• Signed Contract with Nelson Lewis to start on Lookout Mountain project.

Conclusion

This past year the KWSC has faced many challenges with the summer floods and the continued growth of the Kingsland Community. The KWSC Board of Directors has been working very diligently to provide the best possible service to this area. Through their endless efforts and well as, the hard work of the management and staff it is our mission to provide excellent customer service and superior water to our members
Earl also explained that the  1400” 4” line was replaced at Windchime was replace due to stand Pipe damage and that this would now provide better service and fire flow.

8) ELECTION AND VOTING RESULTS  –   Preston Mason announced the election and voting results.

Seat 1

Bob Bender                  232
Theodore J. Lenoch 87

Seat 2

Leon Seidl Sr.               179
Glen Shipman                64

Article III Section 4 C    
For                   245
Against             26

Article IV Section 2
For                   247
Against             15

Article IV Section 9        
For                   275
Against             19

Article V Section 8(b)
For                   282
Against             14

Article IX Section 2(a)
For                   278
Against             17

Article IX Section 2(c)
For                   272
Against             24

Article             X Section 1
For                   259
Against             38

9) REMARKS BY NEWLY ELECTED DIRECTORS – Leon thanked the membership for the vote of confidence and stated that this has been a learning experience. He has learned how to make water and has gotten to spend time with the employees of KWSC.  Bob Bender thanked the members for voting.

10) ELECTION OF OFFICERS – Officers were not elected. The Election of officers will be held at a special meeting to be set for a future date.

11) CLOSING REMARKS BY PRESIDING OFFICER – Linda thanked the credentials committee for their work – Jim Jones, Eloina Contreras, Carol Smith and Ted Phillips. A special thanks to Carol Smith who put in a lot of hours and hard work on the credentials committee.

Linda thanked the membership. The members are invited to ALL of the monthly meetings and encouraged to please participate. Bob Bender thanked the members for their confidence in the Board.

12) MEMBER COMMENTS – The Board is thanked by the membership for bringing honesty back into KWSC.  The members request a clarification of the Proxy requirements for next year’s annual meeting. The Board agreed and will do some re-wording as well as more advertising of the Annual meeting and the need for the Proxies

            13) ADJOURNMENT – Bob Bender made a motion to adjourn the meeting, Leon seconded the motion. Linda announced that the motion carried and the meeting was adjourned at 8:13 p.m.

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