Subject: Water system status report for mid-year meeting

We are all aware that this summer we experienced a number of water purity test results that indicated that we had coliforms (non-harmful bacteria) in our water system. Those results meant that we had to follow the state-mandated protocols for determination of the source, chlorination and flushing, and notification of our members.

In the midst of this effort we also experienced a few test results that were positive for E-coli. This meant that we were subject to visits and inspections by representatives of the state Department of Health and we had to issue a "boil water" notice. Fortunately, we had received near perfect scores on our five-year inspection in August of 2006 and the inspectors found no fault with the way that we maintain our system or with the way that we responded to the tests. They reissued our Green operating permit in August of this year.

The exhaustive battery of tests and retests proved that our water was free of any kind of bacteria and we have had no reoccurrence. The understanding and cooperation of all our members during this situation is greatly appreciated! The personal assistance of Clive Defty, owner of King Water, is also appreciated.

We were not able to determine the cause/causes of the bad tests - except that a herd of cattle were grazing just across West Beach Road and air-borne bacteria could have lodged in the outdoor hose bibs from which the test samples were drawn. We have learned not to take samples from outdoor hose bibs and have switched to the less convenient - but more hygienic practice of sampling indoor faucets. Next year we may budget to buy a special sampling "pedestal" with a protected tap. This can be installed along the main distribution line and will not inconvenience anyone.

The state inspectors labeled our multiple bad tests situation "The Perfect Storm." The following analysis addresses the impact of that "storm."

Financial effects of "The Perfect Storm" and other factors:

• At our annual meeting on March 31, 2007 the members approved the water system budget for 2007:

  Fixed costs:	$5,460
  Variable costs:	$1,000
  Re-capitalization:	$1,250
  Total budget:	$7,710

• The members approved the hook up for the Hamburgs' and the purchase of a used generator from the Elphicks'. The Hamburgs' paid us $1,000 which paid for the hook up ($390.59) and the generator ($500) leaving $109.41 added to our normal water receipts.
• The members approved an increase in our insurance coverage for the water system ($150.42).
• Required - and expensive - VOC and IOC tests were made one year earlier than I anticipated when I calculated the budget ($200 and $290).
• The persistent positive results for coliforms (and E-coli) in water purity tests, April through June, necessitated several chlorinations and flushings of our reservoir tank and distribution system, a "super-chlorination of our four filters, plus meetings with the State DOH and King Water (our state-certified water system manager) and several series of purity tests. This added about two thousand dollars of unanticipated costs.
• Adding the routine - and budgeted - costs for the rest of 2007 to those costs accumulated so far this year will make the total cost of our water system $9,680.73. This will be $1,970.73 above our budget!

Anticipated receipts:

• At our annual meeting the members approved retaining the usage fee per gallon that we have been paying ($0.0055), while beginning a surcbarge of $25 per quarter, begi~ng with the second quarter of 2007, for all the members, regardless of whether they are connected to our water system.
• Adding the normal water usage for the rest of this year we can anticipate "selling" about 1,141,049 gallons by the end of the year. [We sold 1,145,652 gallons in 2006.] This will provide $6,275.77 in receipts.
• We can anticipate receiving $1,725 (23 members x $25 x 3 quarters) from the assessment. Our net receipts will be about $8,000 ($6,275 plus $1,725) for 2007 - against costs of about $9,681 - provided that there are no other "surprise" costs this year.

Decisions for the Board:

• We should plan no expenditures beyond those budgeted (e.g. a shed for the emergency generator; an additional red alarm light on the top of the pump house; an automatic pump shut off switch for power failures; an engineer's assessment of the adequacy of our filters).
• We should determine how best to make up the difference between the amount budgeted for our water system and its actual costs.

Jim Patton
Chairman for Water System Operations