News from 10/16/11 12:00am to 4/11/12 12:00am

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April 11, 2012

WELL 5 UPDATE- work continues on the telemetry that controls well 5 and the relay pump station. We have actually pumped to the tank and once the telemetry is finished, well 5 will be on line!

February 11, 2012

WELL 5 Update - Work continues on the well 5 site and the transfer pump at well 3. If all continues on schedule, and the weather cooperates, well 5 should be on line in April!

December 6, 2011

Annual Board Meeting Minutes
MOUNTAIN MEADOWS MUTUAL WATER COMPANY
(A California Corporation)

Minutes of Annual Meeting of Members
December 3, 2011

The annual meeting of the Members (the "Members") of Mountain Meadows Mutual Water Company, a California corporation (the "Company"), was held at 9:00 a.m. on December 3, 2011, at the Crowley Lake community center in Crowley Lake, California.

Present at the meeting were David Richman, Blair Hafner and Vicky Phelps, constituting a majority of the Board of Directors. Board member Bill Archibald was absent. Also present in person were three Members (in addition to the Board members) and another 28 Members were represented by proxies.

David Richman, Vice President of the Company, acted as Chairman of the meeting in the absence of Bill Archibald, and called the meeting to order at 9:00 a.m.

Approval of Minutes of 2010 Annual Meeting

Upon motion made by David Richman and seconded by Blair Hafner, the minutes of the annual meeting held on October 30, 2010 were unanimously approved.

Actions during 2011

The Chairman reviewed the actions taken by the Board during 2011, including:

a. Gave an overview of the status of new well 5. The pump has been installed, the Edison electrical work is virtually complete, and most of the other wiring, water main and vault work is near completion. Still missing is the variable frequency drive that controls the speed of the pump and the telemetry. The new well should be online and operational by some time in early spring 2012. Testing will have to be done at that time in order to satisfy the county health department. When well 5 is online, wells 1 and 4 will go offline and the system will no longer be using blended water. This will alleviate the uranium issues in the system.
b. At well 3, a new pump station was built to relay the water around the pressure control station. Well 3 is actually set up for two new pumps, but only one has been installed at the moment. The second pump will not be installed until testing has been completed on the first new pump.
c. Painted the pump house by well 3 since it had not been repainted since it was built.
d. Underwent a recent needs assessment by a representative from the California Rural Water Association. The representative concluded that the Company is well equipped and well managed for a system of its size. The Chairman also recently attended a training class offered by the Association in Mammoth.
e. Continued to enforce collections through the use of warning letters and shut off notices. Shut off notices are generally used only when an overdue account reaches about $500.
f. Monitored water usage of Members. The amount of overage billing for 2011 was $3,400 less this year than last year. The number of individuals who went over their annual allotment increased by two. However, six or more houses are in foreclosure and had minimal water usage this past year. Consequently, the average water use per user went up from 161,000 to about 180,000 gallons.

Discussions

The Members discussed means of encouraging Members to continue to conserve water. Ideas included an increase in punitive rates and/or reimposing specific watering days. However, no decisions or changes were made.

A Member inquired about security at well 5 which is a popular spot for viewing of the July 4 fireworks. The Chairman explained that the Company could fence in the property, but this could cause access issues. As all buildings and equipment will be locked, security should not be an issue, but the Chairman will monitor the situation over the next year.

Financial Review

The Chairman reviewed the financial status of the Company and gave a brief overview of financial and capital expenditures made by the Company over the past year. Revenues for the quarter ended September 30 were $43,563, which included a substantial amount of overage billing. Some of the delays in completing well 5 have allowed the Company to stay within its cash flow. The Company had cash reserves of $135,000 as of September 30. However, the amount necessary to complete well 5 will likely exceed $135,000. The Chairman reminded Members that one of the reasons for increasing rates last year was to help cover the costs of installing well 5 and thereby avoid any assessments of the Members. It is anticipated that well 5 can be completed with the cash flow from ongoing billings. However, once the well is complete, the Company will need to build up its cash reserves once again.

Proxies/Quorum/Board Election

The Chairman announced that, while the Company had received a number of proxies from Members who did not attend the meeting, the number of proxies received, coupled with the number of Members present, did not constitute a quorum of Members. Therefore, the annual election of Board members could not be held and, pursuant to the Company bylaws, the current Board members will continue to serve on the Board. The Board has traditionally had five members, but has been operating with only four members following the death of a Board member. Pursuant to the bylaws of the Company, the current Board members can elect a person to fill a vacancy on the Board. Therefore, upon motion duly made by Vicky Phelps and seconded by Blair Hafner, the Board unanimously elected Hal Cady to fill the vacancy on the Board.

Adjournment

The meeting was adjourned at 10:15 a.m.

November 18, 2011

WELL 5 UPDATE- The pump was installed today and the installation of all plumbing and mains is virtually complete. There is still work to be done, and we expect the well to be operational in the spring.

October 16, 2011

WELL 5 UPDATE - Work continues on well 5, albeit at a slower pace than we hoped. We are still waiting for the pump to be installed at the well along with electrical. You might have notices Edison installing some new poles. They still need to run wires and install a transformer.

The work at the pump station is almost complete. With the installation of the electrical and telemetry, it should be ready to go.

We anticipate being up and running in the spring.

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