2010 Shareholders’ Meeting
Las Positas Mutual Water Company
Minutes of the Annual Shareholders' Meeting
June 15, 2010
Held at the First Baptist Church – Fellowship Hall
949 Veronica Spring Road
(Prepared by Dan Higgins, Secretary )
At approximately 7:10PM, Director Rick Donovan announced that a quorum of shares was not yet represented but that a shareholder with a number of proxies was on his way. He suggested that President Jeff Childers go ahead and introduce the newly hired well operator, Mike Stephens. Mike was thus introduced and asked to provide some information about himself and his experience in water and well operations.
Mike explained to shareholders that he has 32 years of experience while working for the Goleta Water District as a well operator and supervisor of wells and distributions systems, retiring in December, 2005. He also served as operator of a number of private water systems and continues to carry out that role. He also has the required California Water Treatment and Distribution System Operator Certifications.
At 7:20PM, Rick Donovan announced that 415.5 shares were now represented at the meeting, giving the needed quorum. Jeff Childers then called the meeting to order for official business.
LPMWC Secretary, Dan Higgins, noted that copies of the minutes from the 2009 Shareholders’ Meeting were available as handouts and asked for Shareholders to review those minutes for accuracy and completeness. It was moved and seconded that the minutes be approved and the motion passed unanimously.
Treasurer Alice Donovan then presented the Financial Report. The Balance Sheet as of June 14, 2010 showed $196,428 in the Money Market Checking account (Special Assessment account), $14,325 in the Regular Checking account, and $5,530 in the Savings account, for a total of $216,283. After a brief discussion, it was moved and seconded that the Treasurer’s report be accepted. The motion was unanimously approved.
The next item discussed was the reason for the dismissal of Lawrence Price as our well operator. Jeff Childers explained that Lawrence has been paid $500 per month for a set of baseline activities (such as checking the well operation, adding chlorine, etc.) but additional work is supposed to be billed separately as it was approved by the Board. Lawrence, however, has not billed LPMWC for this ‘extra’ activity for a number of years! It was noted that the Board had been demanding that Lawrence get his billings up-to-date for several years. Despite this, Lawrence had submitted only a few bills, but none for years from 2007 to the present. It was noted that this situation makes it impossible for LPMWC to know how much money we have for needed repairs and well site upgrades. We also have great difficulty in verifying that Lawrence’s bills are correct, due to the long delay times since the work was done. The few old bills that have been submitted indicate that Lawrence may eventually claim that LPMWC owes him on the order of $100,000 for all this past work!
Three different shareholders at the meeting indicated that they had similar problems with Lawrence. He had done work for them on their property (non-LPMWC owned water lines) and they had not received bills for periods of a year or more. When bills were finally submitted, amounts were larger than expected. Stockholders asked that LPMWC should notify all shareholders (i.e. including those not present at the meeting) of this problem and the fact that Lawrence has been dismissed as our well operator. Stockholders present at the meeting expressed unhappiness that this situation had gone on as long as it had. They asked if the Board had good records of just what work Lawrence had actually done in past years and how much time he had spent working on various tasks. Board member admitted that tasks were generally verbally approved and did not include detailed cost bids. Records do show some things like flushing mains and tank cleanings but not all work that may be charged. Stockholders suggested that the Board should contact a lawyer and discuss issues such as the length of time over which non-billed expenses are valid. It was also asked that the Board should call a special meeting in 6-7 months time to report on what has been done to resolve this problem.
The next item of business was the election of the Board of Directors. Nominations were called for and it was moved that the current Board be re-elected. No other nominations were made. That motion was seconded and unanimously approved. The elected Board members are Jeff Childers, Rick Donovan, John Holehouse, Dan Higgins, and Layne Wheeler.
The final item of business was a discussion of the continuation of the Special Assessment. It was also noted that our water costs are still low compared to what we would be paying under Goleta or Santa Barbara water districts. A continuation of the Special Assessment for one year was proposed, seconded, and unanimously approved.
The meeting was adjourned at about 8:45PM.