Important To Retain Current Board Members



With all of the anger and accusations ongoingithin theommunities of Pine and Strawberry, it is easy to overlook an important question, when will there be more water and how much?

Research shows that the K2 site is extremely promising and that if allowed to proceed we could have water in our pipes from just the test well, by the end of this July, followed by a production well in 2009.or financialnformationeference www.WaterForPineStrawberry. com.

Compare this to the course ofctions that will be necessary to hook up to the Strawberry Hollow and Milk Ranch private wells.

Convert to a Domestic Water Improvement District, hire financial and engineering consultants to obtain valuation of Pine-Strawberry Water Companies,ropose plans to finance purchase, obtain cost of connecting two wells, improvements and attorney fees. That is assuming that Mr. Pugel and his private well is allowed out of the CC&N (see Web site).

Before we can get any of the "we have water now" into the system the procurement of the two water companies needs to take place. Given the lowstimates by RCW $2.6Ma third less than they were valued atn 2003) and the animosity RCW holdsoward Brooke,t isost likelye willead down the condemnationoad. This isrecisely where Cave Creek ended up when it decided in 2002 to buy Cave Creek Water Company. Extensive litigationnd lawyer fees followed, and finally as a result of using mediation at the suggestion of the judge,he transfer was not completed until April 2007. Had they decided to go to trial, it would have been longer.

As regards to valuations,y the end of December 2005, the Cave Creek appraiser said the system was worth $11M, hadhey waited and gone to trial in September 2007 the appraiser would have hado up the value to between $12M and $13M. Obviouslyhe two parties differed on the price. In the end, Cave Creek paid $19.5M, they felt it was too high but were unsure at what price the jury would come in with. The full report is available at the referenced Web site.

RCW claims that there are 89 million gallons per year, available from these twoells. This works out to 169 gpm, not much different to what is expected from the K2 well. Strawberry Hollow has never provided production numbers to the public, and the Milk Ranch Well has never been operational, i.e., in production, herefore there is no concrete information on its sustained yield.

We need to retain the existing PSWID board members: Gary Sherlock, Forrest McCoy, James Richey and Wes Suhr, and get additional water into our system this year.

Thank you for taking the time to read this.

Pamela Mason


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