2013 Shareholders’ Meeting

Las Positas Mutual Water Company

Minutes of the Annual Shareholders' Meeting

June 12, 2013

Held at the First Baptist Church – Fellowship Hall

949 Veronica Spring Road

(Prepared by Dan Higgins, Secretary)

At about 7:15PM, President Jeff Childers announced that a quorum of shares was not yet represented. It was decided to go ahead with some preliminaries that did not require any formal votes. The Board of Directors then introduced themselves. Directors Jeff Childers, Dan Higgins, John Holehouse and Rick Donovan were present, as was the Treasurer, Alice Donovan. Shareholders in attendance then introduced themselves and stated where they lived.

Alice Donovan then began discussion of the financial records that were distributed when shareholders entered. It was noted that day-to-day operational expenses had increased and now exceeded the Connection and Assessment sections of the quarterly billings, but that the Special Assessment income (for capital expenses) had a surplus. It was reported that the total of all accounts for LPMWC totaled $322,185. Alice also reported that Account Receivable were at a reasonable level with no customers more than 90 days behind in paying their bills.

At 7:40PM Director Rick Donovan confirmed that the necessary quorum was represented. Rick announced that 394 shares were represented out of 759.5 total shares. (Additional proxies had been collected to reach the necessary quorum.)  Alice Donovan’s financial report was then officially approved by a voice vote.

The issue was then raised as to whether an independent audit of the LPMWC financial records had ever been carried out. Alice answered that an outside CPA does review the books when preparing taxes but that this is not a formal audit. She also indicated that such an audit was considered common in other non-profits she was familiar with. It was moved by DeeEtt Thompson that an independent audit be carried out on the LPMWC financial records. That motion was seconded and a discussion of the issue ensued. Subsequently, the motion was voted on and passed. Some additional discussion on the audit issue then occurred regarding the cost of an audit. Alice indicated she would look into costs. It was decided that the audit would be carried out if the cost did not exceed $3000; otherwise, the issue would be brought back to the Shareholders.

LPMWC Secretary, Dan Higgins, was then asked to present the minutes of last years shareholders meeting. He noted that copies of the minutes from the 2012 Shareholders’ Meeting were made  available as handouts as shareholders entered and asked for Shareholders to review those minutes for accuracy and completeness. He also reminded shareholders that minutes of past meetings are available on the Water Company web site (www.lpmwc.com or www.lpmwc.org). It was moved and seconded that the minutes be approved and the motion passed.

Jeff Childers then delivered a report on Water Company facilities. He indicated drawings for the  new pressure pump control system had been completed and submitted to the County of Santa Barbara for approval. He indicated that he expected approval with within a few weeks and that construction would begin shortly after permit approval. Jeff then reported that the next improvement to the water system would be to add a second well. There were some questions about the reliability of the aquifer that our well taps. It was reported that the water supply has been adequate in the past, but that the extent of the aquifer is really unknown. A new well would be located as near to the existing well as feasible.

John Holehouse talked briefly about a continued need to conserve our water. Leaking pipes, toilets, or faucets should be fixed. Lawns and other plants should not be overwatered, allowing water to run down streets. It was noted that rainfall was very low this year, and although there is currently sufficient water supply, we should be careful and not waste a valuable asset.

Dan Higgins reported on a comparison of LPMWC water costs with those of the city of Santa Barbara and the Goleta Water District. He displayed a chart showing LPMWC costs for an ‘average’ parcel are less than 50% what the charges would be in Santa Barbara or Goleta. The comparison was based on the total water pumped from the well site last year (roughly 17 million gallons), which corresponds to about 725 gallons per day per parcel, averaged over the year. It was noted that our average usage is high compared to smaller residential properties in Santa Barbara or Goleta and this is probably due to additional gardening/agricultural irrigation. It was noted that the comparison chart is available on the LPMWC web site.

The extension of the Special Assessment was then discussed. Jeff Childers noted that the Board had discussed the issue of the need to increase the amount of income allotted for day-to- day operational expenses and that the Board had voted to increase the Connection fee by $25 dollars a quarter (to a total of $125 per parcel) and to decrease the Special Assessment from $125 per quarter to $100 per quarter. This keeps the total bill of shareholders unchanged. Traditionally, Shareholders have voted on the Special Assessment. It was thus moved to accept this reassignment of fees without changing the total. The vote passed unanimously.

Rick Donovan called for nominations for the election of members of the Board of Directors. It was suggested that Bob Bartlett serve on the Board. Bob declined the nomination. No other names were submitted.  It was then moved that the current Board be re-elected. No other nominations were received, and the current Board members (Jeff Childers, Dan Higgins, John Holehouse, Rick Donovan, and Layne Wheeler) were re-elected.

The meeting was adjourned at 8:37PM.