PRESENT

Jerry Eubanks-President

Jerry Ryan-Vice President

Eugene Watt-Treasurer

Keith Weeks-Secretary

Alinea Coy-Director

Kent Christen-Manager

CALL TO ORDER

Jerry Eubanks called to order at 7:04 P.M.

Amend agenda to show committee reports.

APPROVAL OF MINUTES DATED May 16, 2001

Keith Weeks moved to accept minutes as written . UNANIMOUS.

TREASURER’S REPORT

Gene reported 75% of the year completed. The Operating budget is at 94% collected on Income with expenses at 78%, with many over budget items. Community System income at 83% with expenses at 72%. 12^th Filing expense at 43%. Questions were raised on the validity of the special assessment billing.

MANAGERS REPORT (SEE ATTACHED)

Basic concerns on the Septic truck estimated cost of repairs $1850-$2250 to rebuild the engine. We will be looking at the possibility of contracting out this service from below, with the ability of dumping at our stations (vaults only).

Purchase of a backhoe would run between $19500-$85000 depending on year and hours.

Deep bury projects- Shavano to Maroon Bells complete. 7^th Leachfield started still waiting for permit. May need to bring in fill dirt to complete, which will be above cost on original estimate. Water tie in for filings 4 through 8 is 90 % complete. Will petition the S.I.D. to complete. Looking at starting the 12^th sewer and completing roads next summer. Yardi will be refunding $995.00 for Payroll module. Need to have someone in place by June 2002 in office with Class C license, as of this date office is compliant. Rulon and Associates were awarded contract for audit. They will tentatively start audit on August 1, 2001.

OLD BUSINESS

Budget on hold for approval. Fire Dept. water hauled at no fee. Okay to bill for water and septic haul. Dues are currently waived. Jerry Ryan moved to repair septic truck and keep it for in house usage. Unanimous. Backhoe was tabled.

NEW BUSINESS

Copier on loan. Litigation Committee, per Larry Leff needs to modify with just one member from each board as contact person. Keith Weeks motioned to go with lawyers recommendation. Nominated Alinea Coy, changed to Jerry Eubanks. Jerry Ryan Second. Unanimous.

Kohler see attached. Lots 16 & 19 are building. Looking at purchasing 17 & 18 to replat, need more firm contract. Kent is making decision. New Ops Supervisor job will be posted at designated areas. It has been determined there was criminal activity on the part of the Forum members involved in the original injunction. However the Boards opted not to bring charges. Proposed not to pass on fees to any particular group, but assess all members. Jerry Eubanks moved to rescind prior motion to bill Plaintiff. Unanimous Bylaws are in effect, possible training needed. Standing committees need to be established per new By-Laws, which needs to be by Aug. 31, 2001. These committees would be Rules, Budget, Nominating and Past Presidents. Absolve Bylaws Committee and move to the Rules committee. Jerry Eubanks motioned to accept. Unanimous. Records report, see attached. Possible Joint meeting scheduled for August 18th, 2001.

Closed for executive session.

Motion adjourn. Unanimous. 10:13pm