Porto Cima Townhome Property Owners Association P.O. Box 482 Lake Ozark, MO. 65049 (573) 216-2380 www.portocimatownhomepoa.com

October 3, 2005

Dear Villa LaCresta Townhome POA Member:

At the August 26, 2005 POA board meeting, one item of discussion was the high cost of irrigation water at Villa LaCresta.  For August, the irrigation water bills at Villa LaCresta totaled $4,095.37.  The POA has had a good initial experience with the lake water pumping systems installed in May at Bello Point, and in July at Punto Piloto.  Now with this experience behind us, the board would like to replicate comparable savings at Villa LaCresta.  Nelson Land Services has been asked for a proposal to install a lake water pumping system to provide for the irrigation water at Villa LaCresta.

Preliminary figures show a 2.7 year payback of the estimated initial cost of $29,907.28.  Included in this payback analysis are the replacement costs of the pump, which has an estimated service life of 15 years, as well as the annual maintenance and electrical costs.  Had such a system been in place during July & August, estimated saving would have been approximately $6,800.

Because of the excellent return on the investment, and cost savings compared to present water costs.  The board plans to move ahead with this irrigation pumping system for Villa LaCresta.  The installation would be completed for the 2006 summer season.  The $29,907.28 cost of the system would be paid for by a special assessment of all Villa LaCresta owners. 

We are currently in the process of submitting an application for a lake water pumping permit.  Once the water pumping permit is received from Ameren UE and the US Corps of Engineers, a special assessment bill of approximately $880.00 will be mailed to all Villa LaCresta Owners.  This billing would probably occur in early 2006.

The board feels strongly that this project is in the best interests of the owners.

Sincerely

Todd Nelson, POA Manager, For the board.