Date: 5-23-01 Time: 7:11 PM Place: Guadalupe Valley Telephone Coop.

Invocation by Guy Anderson

President Guy Anderson called the meeting to order after a quorum of directors were present.

Board members present:

Guy Anderson

Carrie Myer

Otto Kasten

Fred Rose

Mark Zuercher

Eddie Poindexter

Norman Kuebel

Judy Davenport

Eloy Garcia, Jr.

Absent board members:

Odean Gass

Chuck Knibbe

Jim Harrison

Larry Hull

Tom Halloran

Brenda Lindemann

Tom Halloran has resigned as a board member.

Approve minutes of Previous Meeting: Approved as read.

Status report on continued litigation with Southerland Properties:

An in-depth review of the potential involvement of WORD as a party in this suit was discussed as well as the reasons why WORD’s party status was withdrawn. GRA will seek compensation relief from WORD for the amount reaffirmed in their board meeting on 5-16-01.

The GBRA permit for increasing the firm yield of Canyon Lake has been in the news.

Depositions will be taken from the following GRA members:

Roy Elbel

Eloy Garcia, Jr.

Sharyn Wilson

Steve Grigory

Depositions will be taken from the following TRPA members:

David Davenport

Tom Goynes

Jack Fairchild

David Reichert

Comal County Judge Danny Scheel offered to mediate GRA’s negotiations with Southerland Properties in hopes of settling this suit. The limitation on flow rate has not been established. TRPA members would like a 280-cfs flow rate for good recreation.

Frank Stanush, a GRA member, received a TNRCC letter published on 4-17-01, asking for a change in diversion point for water rights purchased by Southerland Properties. Otto Kasten did not receive this letter even though Otto is down-stream from the original diversion point. A copy of this letter will be forwarded to John Hohn.

By-laws and Charter Committee Report:

Eloy Garcia, Jr. contacted a CPA about the 501.©.3 application. Fred Rose stated GRA is in good standing with the IRS.

· Judy Davenport motioned “to table the by-law review and the 501.©.3 application process until January 2002” – seconded by Fred Rose – Approved.

Membership, Communications, & Litigation Committees Report:

Carrie Myers is working on the flier. The current membership is only 52 families. Carrie obtained a $5000 donation from Lowery Mays. Friends for Rivers should be sending a donation, too. The WORD board agreed to share ¹/₃^rd the legal expenses up to 5-17-01.

Treasurer’s Report of Income, Payments, & Account Balances:

Fred Rose reported he donated $220.88 to GRA.

Bill on 5-1-01 John Hohn misplaced by GWA

CD balance is $14,763. The penalty is only $250 - $300 for early withdrawal.

No formal report of the checking account balance.

· Carrie Myer motioned “to accept a $2500 loan from Eloy Garcia, Jr. to cover the bills and to be re-paid to him as soon as possible” seconded by Otto Kasten -- Approved.

· Eloy Garcia, Jr. motioned “to pay the attorney bills” – seconded by Carrie Myer – Approved.

General Comments & Suggestions:

Adjournment – 9:03 PM.

Respectfully submitted,

Judy Davenport, secretary