GENERAL MANAGERS REPORT FOR MAY 2006 The well has been drilled to a total depth of 1225 feet. Unfortunately, when the driller was extracting the drilling tools, the cable broke and the drill bit with about forty feet of cable fell into the well. The driller has recovered the cable, and will recover the drill bit and stem this week. We are in the process of negotiating a contract for the management of the golf course. This is not a lease of the course, but instead, a management contract that allows for a cooperative effort between the District and the contractor. A modification to the union contract has been negotiated with the union concerning the restructuring of personnel in the bargaining unit. A letter of understanding is available to anyone upon request. The General Manager and the water operators visited the water facilities in Cloudcroft to facilitate an interchange of ideas and to become familiar with their operation. They have a polymer injection system to enable the use of surface water and lined settling ponds. They agree, however, that the use of surface water will not be practical for much longer. I, along with some other members of the community, attended the May meeting of the South Sacramento Water Group. Senator Vernon Asbill was the main speaker and gave a report on the hydro-geological study of the Southern Sacramento Mountains. The hydrologist in charge of the study from New Mexico Tech was there to give the report, as was a hydrologist from Sandia National Laboratories. The initial phase of the study, which includes Timberon, has been completed. The results are currently being mapped and should be available to the public sometime in June, 2006. I made a proposal to the County to increase our trash disposal fee to $8000. We have not yet been told whether we will get it. We are in the process of placing an extra dumpster at the transfer station to handle building materials. If the building materials can be separated from household trash, we will then be able to purchase a compactor to compact the household trash. We anticipate that this will reduce the number of pulls each month from four to one. This will significantly reduce the cost to the District of trash disposal. The dumpster will be placed as soon as we complete signs for them. Billy R. Gideon General Manager