Shareholders: Here is an update on what’s happening at BLSMWC.

DROUGHT:

We are remaining in Stage 2 of our Drought Action Plan. There was no water saved in the Month of July. Our usage was a little higher than 2014, my comparison year. I expected this, especially with the higher temperatures, and all the dead trees. We still have 6% conservation through July for the year. In gallons that’s 1,558,000. We will continue to stress conservation through the rest of the year.

PRESSURE ZONE STUDY: Luhdorff and Scalmanini, our consulting engineers, are finishing up the hydraulic model. It should be complete within the next 2 weeks. This model will be used in the design of our infrastructure replacement projects, and included in the Preliminary Engineering Report for the USDA loan Application.

METER INSTALLATION PROJECT: We have installed 142 radio-read meters in the 2 months since Phase 1 started. There are 134 left to install. They should be installed before the end of September.

RESTROOM AT TREATMENT PLANT: Work is continuing on the restroom. Part of the cement floor has been removed, and Kris Morris is ready to start excavation to install the septic pump in the ground, and plumbing inside the building. The Watermasters are working on this project when they can, probably another 2 to 3 months to complete.

DEAD TREES AT TREATMENT PLANT: The dead trees at the treatment plant were taken down and removed by A1 Land Management. The job was done very professionally and quickly. There is some wood left in front of the Treatment Plant fence, and this wood is being cut up for firewood and will be gone by fall. WELL # 4: Well 4 is operating very smoothly and above expectation. The well is producing 65 to 70 gallons per minute, with minimal loss of water above the pump, and quick recovery. Luhdorff and Scalmanini our well engineers, will do one more well test, next week to verify pump performance, but I am pleased with the operation of the well so far. MC

ENGINEERING PER REPORT: John Pedri and crew are working on the Preliminary Engineering Report, and will have another Draft to me this week. USDA wants the application for the loan to be done digitally and we are getting signed up for that.

We are progressing on schedule.

David Hicks

General Manager

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