Inscription Canyon Water Company Board of Directors Meeting

Inscription Canyon Water Company Board of Director’s Meeting January 26, 2021

Agenda – ICWC BOD Meeting Jan 26 th, 2021 Call to Order – Board Business Online meeting process – Reminder of Company Mission Approval of Draft Agenda Approval/acceptance of Minutes to Board meeting held Dec 18 th 2020 Annual BOD Election Results Seating of 2 new Board Members Thank you to departing Board Members Election of Corporate Officers Treasurer’s Report Operations Summary Items of note Old Business 2020 Summary and Report Card Additional items New Business 2021 Planned Financial and Operational Activities Member’s Comments and Questions Adjournment

Mission: Provide a safe, clean, affordable and reliable water supply to all members and customers Be transparent from a management and financial perspective Plan and Operate like a company that will soon have 1000 user/customers Responsibly manage our supply and delivery systems for the future

2020 -21 ICWC Board of Director’s Election Two Board Positions up for election for two year terms 513 Ballots cast Results counted and certified on January 22 nd Candidate results: Dan Cancelleri – 298 votes * Ray Damesek – 233 votes Michael Hubbard – 313 votes * * elected

Election of Officers President VP of Operations Treasurer Secretary

Treasurer’s Report Giles Howard

Financial Commentary Financial Results for 2020 were sound, commensurate with budget and cash flow was excellent. Extraordinary items relative to the initial budget were: Higher revenue than planned for sale of water, primarily to the TRR lake. Additional legal fees due to the restructuring of the company, obtaining and assembling missing records and documents, correcting erroneous filings and obtaining ACC approval. The reimbursement of legal fees, $70, 556. 39 incurred during an ARC dispute. On the Balance Sheet we show an additional court ordered reimbursement due from one of the individuals involved in the dispute.

Operations Report Mark Armstrong

Items of Note: Total water pumped was up 17% over 2019 Metered loss 364% higher than 2019 Sterling Ranch new line flushing Molly Way regular flushing Water delivered to members was up 18% y/y Water delivered to the TRR Lake was up 14% y/y Unaccounted for water losses were down 14. 6% y/y to 3. 13% Landscape use was up 20% with most of the increase in Whispering Canyon Construction use was up 31% y/y

ICWC 2020 Report Card Perform an audit on current delivery operations practices Upgrade and publish process for problem reporting, tracking and resolution Perform annual hydrology testing on aquifer used by all wells Evaluate delivery system reliability risks Manage disposal of old water meters Finalize and perform the asset transfer from ICRWUA to ICWC ACC hearings Transfer of CC&N’s Business operations/Accounting and website changes Pass current entity on to ARC (if applicable) with new name/bylaws Finalize 25 year lease renewal for ICR wells – August 2020 Commence preparations of Rate case for ACC review Evaluate current financial reserve strategy Establish routine updates to website/email

Additional 2020 Activities: Rationalized Bank accounts Opened ICWC accounts/closed ICRWUA accounts Cleaned up/ re-cast financial reporting Created a Contingency Account with a balance of $50, 000. 00 The Board will discuss and determine the appropriate balance for 2021. Created a Capital Account to prepare for the replacement of equipment in a timely and appropriate manner. Funding will be determined by appropriate depreciation schedules. Converted all accounts to online banking with online bill pay Finalized ARC lawsuit and recouped majority of legal fees Monitored inspections and testing in TRR Sterling Ranch Added rotating security cameras to hydrant locations

ICWC 2021 Planned Activities ACC Rate Case – Commence in April TRR system Capacity/water use Plan TRR expansion to Sterling Ranch and Cooper Hawk Ridge WC expansion to phases 5 and 11 Reallocation of funds for Capital and contingency accounts Haulage and Emergency Power Contracts for ICR wells Lock Box Electronic Payments Process ICR Lot 1 -180 ARC transfer to Owners New building structure for ICR well #1 Ongoing tank and structure maintenance Continued hydrant camera surveillance Annual hydrology testing

Member’s comments, suggestions and questions Please Identify Yourself/Wait until given the floor Speak loudly/clearly Limit your time to allow others a turn

Thank You Adjournment