August 2015

POSSUM KINGDOM LAKE ASSOCIATION
BOARD OF DIRECTORS MEETING
August 8, 2015

Minutes

The following agenda items were discussed or acted on:

1. Call to Order- Jim Lattimore called the meeting to order at 9am at Bryan Insurance conference room in Graham, Texas.
2. Determination of a quorum present-Directors present were Jim Lattimore, Mert Fewell, Monte Land, Mikl Fuqua, Scott Wheatley and Russell Madden.Directors not present were John Connally and Jimmy Crenshaw.  Guests present were Linda Lattimore, Wendy Fuqua, Jeff Young, James Smith, Hank Lattimore, Brent Nance and Marsha Bettis.
3. Introductions, Consideration for Directors Position-Jim Lattimore asked that everyone attending introduce themselves and identify the part of the lake they represent.

1. Election of new directors- Jim Lattimore called for a motion to elect James Smith (Sportsman World), Brent Nance (Westside), Marsha Bettis (Westside) and Jeff Young (The Cliffs) as new PKLA directors.  Monte Land made a motion to add new directors.  Scott Wheatley second.  Motion passed unanimously.
2. Briefing on current issues
   1. Review of settlement agreement with BRA-Lattimore & Fewell-BRA application to TCEQ for additional one million acre feet of water to sale is ongoing.  Jim report was to update new directors on current status.  Negotiations over 6 months with BRA eventually lead to a BRA/PKLA settlement. PKLA remains an interested party in the application process.

Points of settlement:

• 997 BRA has to do studies.Prediction study that in the next year lake will not drop
• Sedimentation study is required.
• Calculations on firm yield must be done.Water present 75% of the time in the lake
• Before the settlement the Drought of record was in the 50’s. Now drought of record is the current new drought that just ended.
• BRA is required to update all models and do prediction models.
• BRA now must look to the future as they analyze water sales.Key is PK is highest reservoir and once water is released it is gone to be released throughout the basin.  Only a rain event can replace released water.
• BRA and PKLA agreed to release a joint press release of settlement.
• Once PK spills, PK opens gates and releases water, certain studies are required by BRA.BRA has asked to delay these studies because TCEQ application has not been decided.
• Biggest threat to PK is resale of water.Abilene really wants additional water.  Abilene wants to buy water rights and deliver water using the pipeline being built from PK to Breckenridge.  BRA must allow these resale water permits to be purchased.  This could ultimately allow more water sales out of PK.

6. Discussion on status of BRA application

SOAH Judges rendered an opinion that includes over 300 pages of findings and recommendations.  Their recommendation is approval with a number of conditions.  The Judge’s proposal has been sent to TCEQ.  TCEQ Commissioners will probably meet on BRA’s application in October/ November to make a final decision.

1. Briefing on BRA Board meeting of 7/26/15-Land-The Land’s and Fewell’s attended the BRA meeting.  The following BRA Board agenda items were discussed:

• Remarks from the public- Granbury Officials attended the meeting and asked BRA to reopen the Halff study.Troy Allen pointed out with both lakes full this was the perfect time to reopen this study that affects lake levels. He also suggested that the Board should carefully consider bids before making a decision on selling the remaining Commercial properties at PK.
• Agenda #9-Executive Session- Mike Patterson was awarded the Bid for the remaining PK property for $14,150,000.
• Agenda #16-2016 water rate was set at $70.50.All nine gates at Morris Shepard Dam have been completely reworked.  Brazos Water Master budget will become part of water sales rate calculations in the future.  State Water Plan for 2016 still not available.  Allen Creek Reservoir remains a priority for BRA and should be coming on in 2020-2022.

8. Financial and Membership Report
9. Current membership- Total 891 New- 6Renew-885

Directors discussed educating PK Land owners on the importance of PKLA’s efforts to protect water levels for the future.  A sustained membership drive was agreed to be the format for this effort.  James Smith, Brent Nance, Russell Madden and Monte Land were all asked to work on membership drive.

1. Projections of expenses/bills-Land- Monte Land made a motion to pay Tail Fish for new web site and Master Press for signs.  Scott Wheatley made second.  Motion passed.
2. Ongoing expenses-Consultants-Lattimore Jim pointed out to directors that when the settlement with BRA was signed it required ongoing consultant expenses to analyze the studies BRA is now required to conduct at an estimated $15,000 to $20,000.
3. Discussion of PKLA organizational details-Lattimore & Wheatley
   1. Should we incorporate as a non-profit?  Benefits and downsides Discussion on organizing PKLA so that they can accept donations.  PKLA’s challenge currently is not adapting to modernize communication.  Social media links would start to take us into a new communication era.  Ongoing obligations to monitor BRA models will be a continuous expense.  Communicating with membership and generating funds to pay experts to help analyze BRA models will be future considerations for the Association.
   2. If we incorporate, what entity(s) should we create?
   3. What would be the functions of each?  If we reorganize as 501C3 Problem is no political activity.   501C4-Can engage in political activity.  Paying lobbyist, hydrologist, lawyers C4 status.  Political advocacy will remain part the PKLA’s future.
   4. What reporting requirements would we create? Directors decided to table the issue of 501C3 for now and to pursue the sustaining membership drive.
4. Web site redesign and update-Marketing strategy meeting will be held at Lattimore’s house.  A fresh look for the PKLA web-site is being worked through.  Making the page more user friendly and providing membership more information.
5. Set meeting date for next PKLA directors meeting

BRA Directors will meet October 26, 2015.  PKLA Directors set their next meeting for November 7, 2015.

1. Adjourn-The meeting adjourned at 11:35am.