From:                              Lake Village <lvhoa@lakevillage.com>

Sent:                               Wednesday, October 13, 2010 10:37 AM

To:                                   Lake Village

Subject:                          KGID Letter re: Water Meter installations

Dear Lake Village Homeowner,

You have likely recently received a letter from Kingsbury General Improvement District (KGID) regarding their intent to install water meters - either a building Master Meter only or a Master Meter with sub-meters for individual residential units. Their letter requires that all Unit Owners in a building indicate that they want the sub-meters by executing the attached Water Meter Agreement and returning to KGID by November 30, 2010.

As a first step, I have contacted Michelle Runtzel at KGID and discussed several problems that they may encounter in Lake Village. Many of our Owners are absentee and unfamiliar with the water line and shut-off valve layouts. We think it is safe to assume that most, if not all, unit Owners would want the individual unit sub-meters installed. Owners in a building aren't always in communication with each other and probably won't coordinate to decide what everyone collectively wants to do regarding this question. Owners won't even know if sub-meters are an option for their building until it has been inspected by KGID.

We plan to meet with KGID staff early next week to review and plan for the potential problems. We also think it would be prudent to have Morris Alfano, our Maintenance Manager, accompany a KGID engineer to each building to confirm which buildings are candidates for the sub-meters and which have an issue that prevents sub-metering, so that we can tell owners of their situation and they can make an informed decision. There may also be legal questions regarding the Water Meter Agreement which the Association's legal counsel should review.

We recommend that you hold the KGID letter, and do nothing at this time. We will provide you additional information to help you decide on the appropriate alternative for you after our meetings with KGID.

Thank you ~

Art