1. Lady Creek Water System
Annual Members’ Meeting
April 16, 2018
Welcome!
Please sign in at the entrance table
Take a copy of last year’s minutes, financial statements, and bylaws if you need them
The materials are also on our website
The minutes will not be read aloud during the meeting. 1

2. Objectives of Annual Meeting
Inform and educate the membership about the water system
Review recent activities & accomplishments
Present plans for current year and beyond
Answer your questions
Feel free to ask as we go, or at end of meeting
If you wish to make a statement or ask a question, please give your name and cabin location first
Conduct corporate business 2

3. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 3

4. Introductions
Board consists of volunteers from the membership; all are cabin owners
Each Board member will introduce themselves
Name and current position with LCWS
Length of time on LCWS Board
Vocation or background
Cabin location
Length of time with cabin 4

5. Introductions; Contractors
Water Master, David Jacob of Hydra Engineering (9 years)
Executive Secretary, Marilyn and Eric Peterson of Mountain Quail Business Services (6 years)

6. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 6

7. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 7

8. Mission Statement
The mission of Lady Creek Water System is to provide clean, safe water service to the member cabins on a consistent and reliable basis at a reasonable cost. 8

9. 2017 President’s Report
Replaced Zig Zag River mainline bridge (Road 35) damaged during December 2015 wind storm
We repaired some of the damage at the headworks caused by storms last winter
Lightening strike knocked out some components
Other items damaged by wind
We found 28 leaks representing a potential of 138 gallons per minute (gpm) water loss
We had sound financial performance again and lowered dues for 2017 9

10. Operating Objectives Reliability
Goal: Water available to members at all times except
for planned shutdown days due to major repairs
or upgrades.
Results: 0 system-wide days w/o water in 2017;
Storage tank was never empty. No system-
wide outages since May However,
other limited and localized outages are
occasionally experienced. 11

11. Operating Objectives Reasonable Cost
Goal: Keep costs of water service reasonable; use members’ money wisely. Complete transparency with funds raised for capital improvements.
History: We have significantly reduced annual member dues and operating costs of LCWS. Capital assessments are tracked separately and all use of funds is reported to the membership each year. 12

12. Operating Objectives
Reasonable costs 13

13. Key Operating Statistics
Total gallons (000’s) 9,625 22,228
Minimum water flow (gpm)
Unplanned days w/o water
Test failures
Water leaks located (gpm) 14

15. Recap of 2017
Replaced Zig Zag River mainline crossing bridge and restored full service to Road 35 members
Repaired components damaged at headworks
Found & eliminated leaks representing 128 gpm of potential water loss
Financial results better than budget
Any questions about 2016? 16

16. Future Plans Continue to make system improvements
Prepare project plans to submit to USFS
Replace remaining old mainlines
Plan for fourth well at headworks
Eliminate problem service lines & connections
Keep costs low
Keep water flowing consistently
Continue to operate in a business like manner

17. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 18

18. Water Master David Jacob
David has been Water Master of LCWS since March 2008
During his stewardship, we have dramatically improved our system
Chronic out-of-service conditions eliminated
Water flows dramatically reduced
Mainline replacement program re-invigorated
All system improvements done to proper standards
In March 2017, David was awarded Water Operator of the Year by Oregon Association of Water Utilities 19

19. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 20

20. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 21

21. Capital Planning 2016 recap of actual spending vs budget
Proposal for system improvements 22

22. 2018 – 2020 Rolling Capital Plan
Board of Directors recommends approval of the following:
Approve 2 more years ( ) capital assessment of $140 per member per year (already approved )
Approve the list of projects as presented in the rolling capital plan 23

23. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 24

24. Election of Directors
The Board of Directors consists of 7 members, each serving a three-year term on a staggered basis.
Currently, we have one unfilled position (vacancy).
Every year, some board terms expire and an open election is held to fill the vacancies. This year 3 terms expire, plus we have a vacant position.
Nominations are now open: 25

25. Election of Directors Introduction of any new nominees: Name
Cabin location and years ownership
Background/vocation
Prior service on LCWS Board?
Reason(s) for wanting to serve on Board
Election of Directors 26

26. Agenda Welcome and introductions
Approval of 2017 Annual Meeting minutes
President’s report
Water Master’s report
2017 Financial report and 2018 operating budget
Capital Improvements Plan
Election of Directors to the Board
Question and answer session 27