I. President’s Corner

Water meters: we hope we will soon be able to stop talking about them and start installing them. We have tentative approval of our engineering and installation plan, but now are dealing with the financial group at MDE, Maryland Department of the Environment. While we had hoped to complete all of the installations by the end of 2013, it appears that several provisions of the loan application requirements will stretch that schedule. We have complied with all of the preliminary requirements of MDE, and have put the materials portion of the solicitation out for bid. By MDE rules, that must be posted for 30 days, and then we have one week to award the bid, which must be reviewed and approved by MDE, finally giving us a cost for the construction, which must again be applied for and approved in multiple steps. Once that step is completed, we will complete the application, authorize a resolution to borrow the money, and finally set a date for signing off on the loan. We will then order materials and begin construction. We do not anticipate problems, since we have already installed 226 meter pits, virtually without issue, but I am sure some minor problems will arise. When we begin construction, there will be approximately an additional 574 pits to install, as well as 226 digital electronic meters to be installed in the existing pits. Each and every installation will be inspected by a water cooperative representative, and finally by an inspector from MDE, before payment for those installations can be released. If you have questions or problems once construction begins, please call and let us know. We will address any issues which arise in a timely manner, and we will make every effort to return your property to the state it was in before construction. We will also be notifying members of approximate dates of installation and of temporary outages which may be necessary. Please be patient: this is definitely the biggest project we are ever likely to undertake, but with the biggest benefit, since only one-half of the money will have to be paid back, so it will be a wonderful asset to our system and our members.

During the last year, while working on the meter project requirements, Dennis DiBello and the staff at the water company also oversaw the construction of a 40' X 60' building at the top of Locust Street. This building houses a 20,000 gallon tank which will enable the homes at that lofty elevation to enjoy the same water pressures as everyone else, gives us a "cushion" of extra water for times of high usage, and has allowed the installation of a hydrant at the corner of Locust and Ash which could not exist before, expanding hydrant coverage to the entire community served by Beaches Water Cooperative. We hope to eventually drill a new well at the location, but for now, it will serve as a pumping station and a storage building. While doing that, they completely rebuilt the Rausch Plant at Balsam in Calvert Beach, installing a 20,000 gallon pressure tank there as well, replacing a leaking 1000 gallon tank and bringing the building up to like-new condition. The combination of these improvements gives us extra capacity in the system, improves water pressure where needed, provides redundancy and dependability, and will eventually allow us to balance the supply and pressure of water from all well sites. I want to thank Dennis and the dedicated staff at the water company for their continued accomplishments on a tight budget.

As I have mentioned previously, we cannot now trace any water usage, since the entire system is interconnected, and we have only the meters which account for gross usage at each pumping station. We will begin tracking individual usage as soon as the initial meters can be installed and read in an effort to gather data for rate-setting. We must ensure the long-term financial viability of the cooperative so that we can all depend on a supply of clean water into the future. Many people may find that they have an unreasonable amount of water being used at their home, perhaps due to leaks which cannot now be traced. Variations in metered usage will be noticeable and will allow us to notify members when that occurs so that you can track wasted water. Others will make the decision that they want to water more to maintain the landscaping around their homes, and are willing to pay for it. We will always, however, continue to encourage conservation, low-flow faucets, toilets and shower heads, and reasonable uses for water in our community, but the difference is that those who use more will pay their fair share of the costs for that usage.

Please plan to attend our annual meeting in September, and if you cannot attend, please return your proxy vote. The meter installations may require that we modify the By-Laws of the cooperative to align properly with the new system, and we would need a quorum for the vote. Thanks, and we hope to see you there.

II. Water System Operations, Maintenance & Improvements

Much of the focus of this year's Maintenance & Operations has been toward the upcoming Water Meter Installation Project and finishing the Booster Pumping Station & Storage Building. We have been getting ready for the meter project by identifying the locations of all the existing shut offs at homes and also to make plans to deal with situations where we can not find the existing shutoff. If we have found your shutoff, the cap will be freshly painted blue and a blue mark on the road as well. If we have not marked yours and you know where it is please mark it with a stake and give us a call. Finding some of these old shutoffs is going to be time consuming and if we bring in special equipment, very expensive. With the original roots of the BWC system having been developed in the late 1920s we have pipe in the ground that is reaching over 80 years. In the cases where we are aware of the water main piping with past leaks we will plan for the replacement as part of this project. Remember the water line from the shutoff to the house is the responsibility of the member. As we have opportunities we will make improvements to the BWC water mains as we carry out the installation of the meter pits. The meter pits themselves along with the meters represent a major improvement to the system. A schematic of the meter pits is provided to show the many components that exist within the meter pit. There is a new lockable shutoff valve and a backflow preventer. The meter yoke accommodates standard size meters. The radio read meters that we are looking at will be state-of-the-art that have a useful life between 10 to 20 years. The meter pit project work will require work in the right-of-ways. Please be assured we will return these areas to the same or better condition than they were in prior to the work.

Last year we reported on the installation of the 20,000 gallon tank at the Rausch pumping station. It has been in full operation since last summer and is certainly doing its job. We recently finished construction of a 40 x 60 booster pumping station with storage building at the top of Locust Street and got our Use and Occupancy. This booster pumping station does not have a separate well but stores water off the service main and adds pressure at the highest location in the community. This now represents our 3rd - 20,000 pneumatic tank for increased capacity on the system. You can see by the pictures the building encompasses the tank. Provisions have been made in the construction for a future well and future water storage tank. The storage part of the building will house the supplies, equipment, backhoe, and a maintenance shop. This is a substantial improvement in our operations and maintenance for indoor storage that we did not have before.

New Booster Pump House & Storage building on Locust Road with 20,000 gallon tank inside.

Again, thanks to the many of you who show your appreciation of the guys working in the field. This physically demanding hard work takes a discipline for working under less than ideal conditions. We have a great dedicated field and office team!

Dennis DiBello, Business Manager and Superintendent

III. BWC Shutoff Valves

Rule 11 of the Beaches Water Cooperative reads as follows:

It is, in fact, against the law to do so:

Leaks occurring between the property owner's home and BWC's shutoff are the responsibility of the homeowner. Prior to repairing leaks on your property contact our office to request a water shut off.

IV. Annual Water Quality & Consumer Confidence Report

Our drinking water is safe and meets all federal and state requirements for community drinking water. In 2012, there were no water quality violations. * Our water quality results are based on the monitoring cycle for the contaminant up to December 31^st, 2012. The amount of contaminants in our drinking water is well below levels set by the Environmental Protection Agency in all categories. We routinely monitor for contaminants in your drinking water according to Federal and State laws. All drinking water, including bottled drinking water, may be reasonably expected to contain at least small amounts of some contaminants. It's important to remember that the presence of these contaminants does not necessarily pose a health risk. If you have any questions about the Annual Water Quality Report please contact us at 410-586-8710.

Lead Statement: If present, elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is primarily from materials and components associated with service lines and home plumbing. Beaches Water Co-op is responsible for providing high quality drinking water, but cannot control the variety of materials used in plumbing components. When your water has been sitting for several hours, you can minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water for drinking or cooking. If you are concerned about lead in your drinking water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you can take to minimize exposure is available from the EPA Safe Drinking Water Hotline at 1-800-426-4791 or at http://www.epa.gov/safewater/lead.

Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno-compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV/AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA/Centers for Disease Control (CDC) guidelines on appropriate means to lessen the risk of infection by Cryptosporidium and other microbial contaminants are available from the Safe Water Drinking Hotline (800-426-4791).

V. Financial

The following chart is a breakdown of the budget for the fiscal year 7/1/13 - 6/30/14.

Annual Water Quality & Consumer Confidence Report

Our drinking water is safe and meets all federal and state requirements for community drinking water. In 2012, there were no water quality violations. * Our water quality results are based on the monitoring cycle for the contaminants up to December 31st, 2012. The amount of contaminants in our drinking water is well below levels set by the Environmental Protection Agency in all categories. We routinely monitor for contaminants in your drinking water according to Federal and State laws. All drinking water, including bottled drinking water, may be reasonably expected to contain at least small amounts of some contaminants. It's important to remember that the presence of these contaminants does not necessarily pose a health risk. If you have any questions about the Annual Water Quality Report please contact us at 410-586-8710.

Lead Statement: If present, elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is primarily from materials and components associated with service lines and home plumbing. Beaches Water Co-op is responsible for providing high quality drinking water, but cannot control the variety of materials used in plumbing components. When your water has been sitting for several hours, you can minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water for drinking or cooking. If you are concerned about lead in your drinking water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you can take to minimize exposure is available from the EPA Safe Drinking Water Hotline at 1-800-426-4791 or at http://www.epa.gov/safewater/lead.

Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno-compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV/AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA/Centers for Disease Control (CDC) guidelines on appropriate means to lessen the risk of infection by Cryptosporidium and other microbial contaminants are available from the Safe Water Drinking Hotline (800-426-4791).