Memorandum
Date: September 30, 2024
To: The Honorable Lake County Board of Supervisors
From: Lloyd Guintivano, County Counsel
Subject: Consideration of Voting for Election of Directors to Highlands Water Company
Executive Summary:
The County of Lake ("County") owns at least six parcels that are located within the boundaries of the Highlands Water Company service. This ownership makes the County a shareholder with the right to participate in the Highlands Water Company's election to determine members of its Board of Directors.
The County received the attached proxy documents from Highlands Water Company on or about September 24, 2024, providing the County with the option to either designate Jeff Davis as proxy for the County "to vote and otherwise represent all of the shares . [f]or the election of the following persons as directors of the corporation to serve until their respective successors shall be elected and shall' qualify as set forth in the Amended and Restated By-Laws." The shareholders meeting for voting the directors is scheduled for September 30, 2024, 10:00 a.m. - 2:00 p.m.
Alternatively, the County can attend the shareholders meeting on September 30, 2024, 10:00 a.m. - 2:00 p.m. to cast the vote for directors. Highlands Water Company stated that voting in person at this meeting will override any previously submitted proxy.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action:
1. Whether to submit the proxy documents for each County-owned property located within the boundaries of Highland Springs Water Company's service.
2. Authorize a County representative to attend the September 30, 2024 shareholders meeting in-person and determine whether votes should be cast on behalf of the County at said meeting.