GENERAL MANAGERS REPORT FOR DECEMBER 2005 In the November Board of Directors meeting, I was asked why we had not used the bentonite we have to seal the fishing lakes behind the lodge. I was only able to give a partial answer, however, I feel that it is important for the community to know the complete answer. I said that we hadn’t had time to do that because of more important projects. That is true, but It is fortunate that we didn’t have the time, because since the time the Bentonite was purchased, things have changed. As everyone is aware, the drought caused the spring flow to diminish significantly, forcing us to turn to wells to provide our drinking water. Wells provide good drinking water, but they are far more costly in producing water than is the spring. We plan to use the spring water for drinking water as soon as the spring flow returns sufficiently, but during the last three years, while the spring flow has been down, the New Mexico Environment Department has lowered the limits for allowable turbidity in drinking water. The limit used to be 5 ntu’s but now it is 0.3 ntu’s. While turbidity in our spring water will fall below the 5 ntu requirement, it will not come close to the 0.3 ntu requirement, even after passing through our filtration plant. Therefore, we are faced with the necessity of making significant modifications to our treatment plant, or finding an alternate method of reducing the turbidity of the spring water. During the last summer, we have seen the spring flows return to more than 250 gallons per minute. This has helped considerably in our irrigation needs, but we cannot use it for drinking water. If, however, we deepen the upper lake, seal it, and make it into a drinking water reservoir, the turbidity from the spring will settle out before we send the water to the plant. This would save us from having to modify the treatment plant. Building a drinking water reservoir is expensive, but it solves the turbidity problem while providing an additional 5 days of backup water for the community. We are working with the engineers to design additional storage and installation of pressure reduction valves. They were here on Friday, December 16, to discuss the initial design phases of the project. We have painted handicap parking spaces in the parking lot in compliance with the Americans with Disabilities Act. We will be placing Additional striping for the rest of the parking lot in the near future. We are also in the process of installing yield signs on selected streets. The next one to be installed will be Merlin. We have received an annual report from BEH Drug Screening Co. The report states that during the past year 16 employees were tested for illegal drug and alcohol usage and no one tested positive. In addition, we did pre-employment testing on new hires. Billy R. Gideon General Manager