2008 Shareholders’ Meeting

Las Positas Mutual Water Company

Minutes of the Annual Shareholders' Meeting

June 10, 2008

Held at the First Baptist Church – Fellowship Hall

949 Veronica Spring Road

(Prepared by Dan Higgins, Secretary. Mr. Higgins was unable to attend the meeting; these minutes are based on notes taken by Jeff Childers.)

At approximately 7:10PM, LPMWC President John Holehouse called the annual meeting to order. At 7:13 an announcement was made that a quorum of shares was represented.

The minutes from the 2007 Shareholders’ Meeting (which had been previously distributed with copies available at this meeting) were reviewed and approved.

Treasurer Alice Donovan then presented the Financial Report. The Balance Sheet as of June 9, 2008 showed $98,113 in the Money Market Checking account (Special Assessment account), $1,335 in the Regular Checking account, and $5,514 in the Savings account, for a total of $104,963. There was also $7606 in the Accounts Receivable account.

In a discussion of financial issues, it was pointed out that existing funds are needed for unfinished work related to the tanks project, including grading, base rock, the evaporation pond, and the driveway. There was also a discussion of shareholders in arrears on their water payments, and it was noted that LPMWC had to pay the Goleta Water District approximately $4000 for 17 days of water use when our well was down.

A report of the new tanks project was the next item of business. John Holehouse, Jeff Childers, Layne Wheeler, and Rick Donovan gave statements regarding the now operational new storage tanks. A cost per unit of water comparison was also presented. A question was raised regarding whether the remaining smell and taste problems with LPMWC water can be eliminated.

In the facilities report it was noted by Lawrence Price that adding the new tanks has reduced some contaminants by approximately a factor of 8.  The need for continued water conservation was pointed out.

The next item was the election of the LPMWC Board of Directors. The current Board was re-elected, with the exception of Bob Roes, who did not wish to serve again. Jeff Childers was elected to replace Bob. Other re-elected members are John Holehouse, Rick Donovan, Layne Wheeler, and Dan Higgins.

New business was discussed next. There was general concern about the possible need for a new, additional well in light of the high cost of using Goleta water as a backup for the current well.

This lead to a discussion on the need for continuing the current special assessment for other needed capital projects. Needed improvement included a reconditioning of the current well and a possible new well with new pump and motor. Shareholders voted to continue the special assessment at its current level for the next year.

The meeting was adjourned at approximately 8:15 PM