EXHIBIT 19-B

Memorandum

Date: June 2, 2006

To: Rick Dickhaut

From: Beverly Chaney

RE: Board Member Questions Concerning the Purchase of ATV for Winter Access to the SHSRF.

In response to two questions raised by the Board at the May Board Meeting, Cory Hamilton and I found the following:

Question 1: What is the nature of the agreement that Mike Dormody has with Cal-Am regarding maintenance of the San Clemente Road as an emergency exit for Rancho San Clemente?

Answer 1: I called both Bruce Dormody, Mike’s son, and Don Lingenfelter, Cal-Am’s Watershed Caretaker. Neither returned my call at the writing of this memo.

But, my understanding is that Cal-Am doesn’t do regular winter maintenance on the San Clemente Reservoir “Out” road. This is the road on the backside of the ridge between the dam and the Facility that we must drive in the winter when the river is flowing above ~350 cfs over the Sleepy Hollow Ford. This road is frequently muddy, slippery, rutted and has small rock slides that make it very dangerous or impassable during winter storms. This road would not be used by the Dormody’s during the winter since they would not be able to cross the Ford. They would instead use the “In” road between the SCR and the main Cal-Am Sleepy Hollow gate.

The SCR “In” road is maintained by Cal-Am in the winter, but still might not be passable in a regular truck during the night and early mornings due to rock slides that haven’t yet been cleared.

Question 2: Are there any ATV type vehicles that we might consider that use alternative fuels? (Propane for example?).

Answer 2: ATVs are built to run on gasoline or diesel. The diesel version costs approximately $3,000 extra. An electric model would not have enough power or run-duration to be a reliable emergency vehicle. In addition, we have no way of keeping it charged. No models that run on propane or other fuels were found.

U:\staff\word\boardpacket\2006\2006boardpackets\20060622\PubHrgs\19\item19_exh19b.doc