[HollyMutual-Announce] Shareholders' Meeting Follow-up and Water Status

[Holly Mutual Water Company]

All:

The seating was a bit thin, but we managed to hold Holly Mutual's Annual Shareholders' Meeting this past Wednesday evening and accomplished a quorum. Thanks to everyone who provided their proxies and especially those who attended and tracked down the needed last-minute proxies! All five board positions were subject to elections, and Jerry Kirshenbaum volunteered to stand election (thanks!) along with the four pre-existing board members. All five board positions were filled by acclamation. The shareholders discussed our current well status, plans, and financial position. There were several suggestions made, including considering the extension of Holly Mutual's role to act as a neighborhood association and potentially represent the neighborhood. The board will consider these, and from my personal perspective, all appeared doable with zero cost to our shareholders, particularly as the board members serve as volunteers.

I've been checking on water availability over the past few days, particularly because we are running on a single well (Piedmont), while the other (Whitehall) is being repaired for an infant mortality issue. My observation was that we generally are running out of water by 8:00-9:00 am, and that Piedmont goes back online sometime around 2:00 pm. Because this could interfere with properties still activating their systems during daylight hours, a suggestion was made at the shareholders' meeting to restrict water availability from 24 hours/day to 3:00 am-5:00 pm.

We are pumping an unusually high amount of water, and our concern is there may be a water leak somewhere in the system and/or someone's irrigation system is leaking/running 24 hours per day. Therefore Colorado Water Well has been called to investigate a possible leak on Plateau Dr and to change the well timers to only distribute water from 3:00 am-5:00 pm for the next week. On or after June 1st, we will reset the well timers to provide water only from 3:00-10:00 am, and on June 16th, the timers will run from 12:00 midnight-10:00 am, assuming the Whitehall Well is in operation by that time.

Cheers,

Mark