The BLSMWC Capital Improvement Plan to be financed through our approved United States Department of Agriculture (USDA) Loan, as presented at the June 3rd Annual Shareholder’s Meeting is progressing on schedule. MC Engineering was awarded the Engineering/Design portion of our project on June 12th based on the recommendation of the selection committee and a unanimous vote of the Board of Directors. MC Engineering’s proposal met all technical, cost and schedule requirements and has an excellent history and rapport working with our USDA counterparts.

Over the next few months there will be significant focus, based on field surveys, in determining the proposed water meter turnout locations for all new meters to be installed. Included in this process will be the distribution of a “Meter Location Sheet” provided to each shareholder, and interactive communications through “Public Outreach Workshops”. During these workshops, the homeowner’s responsibilities for installing the mainline pipe from the meter to the house will be discussed in detail.

As discussed at the Annual Shareholder’s Meeting, the LRPC will continue to measure water usage for the remainder of 2017 based on an 87% increased sample size of up to 633 new meters installed. The meter usage data will be factored into our future rate structure for 2018 and beyond. At this point, the 2018 rate structure will be comprised of three fee components: (1) a USDA Loan financing surcharge for the meter and infrastructure capital improvements; (2) a Base Rate for water consumption up to a not‐to‐exceed monthly cubic foot allocation; and (3) an Extra Capacity Usage Fee for additional water consumption exceeding the monthly cubic foot allocation. Based on analysis to date, it is estimated that shareholder combined fees for #1 and #2 above will be comparable to the existing 2017 resident and lot fees.