District Engineer, Mr. Rick Lunsford, opened the discussion by saying, "We had essentially backed up studies done back in the mid 80’s about the outfall line which was overloaded. And studies done two and a half years ago say ‘yes, it does overload when you have rainfall that is somewhat between 1" and 3" of rain overload and surcharge.’ We had some flow meters installed by a company that submitted a proposal to the District. They installed them on Friday by 7:30 p.m. which was great because we had rain on Saturday. So the timing on that was terrific. We’re having flow meters installed at different locations in the system, that way we can tell what the outfall line flow is, what the lines for the flow is for West Hickory Tree Trunk Line and East Hickory Tree Trunk Line and it will also allow us to tell how much infiltration you’re getting in all those locations. It will also tell us how much infiltration you’re getting in your outfall line between the point there where West and East comes together and all the way down to the metering stations. We’ll be able to analyze and point out what the line capacity is, how much flow we’re getting based upon rainfall data. In addition, we’ve been looking at some alternatives. The District did authorize us to proceed with the design of Hickory Creek Segments 2 and 3 and there are plans that are ready to go to bid. There are three easements the District has moved forward based on information. The problem is the segment that Dallas is designing between Hwy 175 and Edd Rd. is about 4,000 feet of land and that’s the segment that the Corps of Engineers has indicated they won’t approve for its proposal. They have asked to do alternative alignments."

Mr. Lunsford added that they suggested alignment changes and presented them to Dallas Water Utilities, along with a prepared map and basically pulled a lot of the line out of the creek. Mr. Lunsford believes the alignment will be approved by the Corps of Engineers based upon

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conversations he has had with them. Dallas Utilities has reviewed the proposed alignment changes and they have sent a letter stating they would like to review it some more because they

have some concerns. In order for them to do the design surveys for any reconsideration in this segment, it could be anywhere from 12 to 14 months from the time they request the surveys.

Board President, Mr. DeBorde said that Dallas Water Utilities is asking the District to do the extra work, but they are the ones holding up the project. Mr. DeBorde also said the District is carrying the biggest load and paying for everything. Mr. Lunsford concluded that the District relies on Dallas to do everything and they’re not in a hurry to get it done. Also, the Corps of Engineers whole criteria now is that if you can avoid the creek and a lot of the line Dallas has right now with current alignment is right in the middle of the creek for a significant portion of it crosses the creek numerous times and so it does not meet the current criteria. In agreement with Dallas, they are doing the design for that shared segment, which they began six or seven years ago.

Mr. DeBorde asked if the District suggested a realignment to the Corps of Engineers, would it have to be redesigned. Director, Ms. Gray answered by saying that the District could do a lot of changes and they could probably do a lot of things if they had the money to do it. But the District has gone over the limit on their borrowing and some of the suggestions and changes that are being brought to the District are about a million dollars more than what the District had borrowed.

District’s Attorney, Mr. Roger Beecham said Dan Almon is trying to get some facts and figures together. He will be meeting with him, along with Mr. Lunsford, to see if it’s feasible. Mr. Beecham added that he had gone to a permit proceeding in Austin, some time ago, and the City of Balch Springs testified against the District by saying that there would be no growth in the next 10 years in the City of Balch Springs.

Mr. Lunsford said that if Dallas goes through the steps they’re going through to get to realign in the south and the District has to come in and do what Dallas is going do in their time schedule, the whole process could take about 2 ½ years. He also said they’re looking at what kind of solution there is so that the District doesn’t get in a no growth situation and if there is a way they could do something to eliminate this 2 ½ years or more period.

Mr. Beecham requested for General Manager, Dan Washington, to set up a meeting with the developers, along with Mr. Lunsford and Real Estate Consultant, Gary Williamson, to discuss alternatives.

III. WORKSHOP ADJOURNED at 8:15 p.m.

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David Bradshaw, Secretary

Board of Directors