SHAREHOLDER TO SHAREHOLDER: Annual Meeting Voting Share History for Cedarpines Park Mutual Water Company

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ANNUAL MEETING VOTING SHARE HISTORY

Annual Meeting	Connections	Total Shares	Less Not In Good Standing	Needed For Quorum	Shares Represented	Quorum Achieved?
07-30-1966						YES at 50% + 1 to change Quorum to 20%
07-29-1967		3,084				No - 20% not achieved
07-27-1968						No minutes found - presuming last Saturday of July
07-26-1969						No minutes found - presuming last Saturday of July
07-25-1970		3,314	- 50	653	1,316	YES at 20%
07-31-1971						No minutes found - presuming last Saturday of July
07-29-1972						No minutes found - presuming last Saturday of July
07-28-1973						No minutes found - presuming last Saturday of July
07-27-1974						No minutes found - presuming last Saturday of July
07-26-1975						No minutes found - presuming last Saturday of July
07-31-1976						No minutes found - presuming last Saturday of July
07-30-1977						No minutes found - presuming last Saturday of July
07-29-1978						No minutes found - presuming last Saturday of July
07-28-1979						No minutes found - presuming last Saturday of July
07-26-1980						No minutes found - presuming last Saturday of July
07-25-1981						No minutes found - presuming last Saturday of July
07-31-1982						No minutes found - presuming last Saturday of July
07-30-1983	657	3,923		785	833	YES at 20%
07-28-1984	666	4,030		2,015	886 1/2	no - Quorum changed to 50% +1 by Board of Directors without shareholder approval. Meeting adjourned to 09-08-1984
07-27-1985						No minutes found - presuming last Saturday of July
07-26-1986	686	4,120		2,061	1,246	no
07-25-1987						No minutes found - presuming last Saturday of July
07-30-1988	697	4,232		2,116		no
07-29-1989		4,281		2,142	1,850	no
07-28-1990	722	4,272		2,136		no
07-27-1991						No minutes found - presuming last Saturday of July
07-25-1992						No minutes found - presuming last Saturday of July
07-31-1993						No minutes found - presuming last Saturday of July
07-30-1994	740	4,263		2,132	1,167	no
11-01-1994		4,273*NR		2,137	1,561	no - 1,561 voted on loan/grant but need 2,137 to approve reported at this Monthly Meeting
11-15-1994		4,273*NR		2,137	2,316	YES - 2,198 (95%) in favor of loan and 118 (5%) against reported at this Monthly Meeting, allegedly a 50% +1 quorum to approve USDA Loan. Proof of ballots requested in a 2011 lawsuit was never produced by CPPMWC
07-29-1995						No minutes found - presuming last Saturday of July
07-27-1996						No minutes found - presuming last Saturday of July
07-26-1997						No minutes found - presuming last Saturday of July
07-25-1998						No minutes found - presuming last Saturday of July
07-31-1999						No minutes found - presuming last Saturday of July
07-29-2000						No minutes found - presuming last Saturday of July
07-28-2001						No minutes found - presuming last Saturday of July
07-27-2002						No minutes found - presuming last Saturday of July
07-26-2003						No minutes found - presuming last Saturday of July
07-31-2004		4,251*NR		2,126	614	no - 32 shareholders were present
07-30-2005		4,287*NR		2,144	392	no
07-29-2006		4,317*NR		2,159	328	no
07-21-2007		4,373*NR		2,187	177	no
07-26-2008		4,439*NR		2,220	420	no
07-25-2009	784	4,387		2,137	373 or 8.5%	no - annual minutes found. 1,822 needed for quorum
09-18-2010	740	4,449		2,226	499	no - 07-31-2010 was the original meeting date. The Board changed to 09-18-2010 to allow Perry Dahlstrom his pre-planned vacation in July.
07-30-2011	728	4,340	- 257	2,043	564	no
07-28-2012	735	4,190	- 386*NR	2,096	1,395	no - The shares not in good standing were not deducted!
08-03-2013	713	4,173		2,088	582	no - 07-27-2013 was the original meeting date. The Board changed to 08-03-2013 to accomodate Glen Dark's business trip. However, 4 witnesses observed Mr. Dark and his wife outside the CPPMWC office on 07-27-2013.
07-26-2014	749	4,143		2,073	764	no
07-25-2015	753	4,134		2,068	429	no
*NR = Not Reported, calculated from Reported shares needed for quorum. The 07-25-2009 Annual Meeting had "odd" numbers to establish quorum. Possible 113 shares not in good standing not accounted for. The 07-28-2012 Annual Meeting shares not in good standing of 386 was not deducted! Instead of 2,096 the correct number of shares needed for quorum should have been 1,903.

WHAT IS THE MEMBERSHIP SHARE REGISTRY

THE SHARE REGISTRY Mutual water company shares do not have any cash value and merely represent the right to receive water service on the property. There is obviously a value to such a water entitlement, but it is not a cash value, and the value of the shares is normally tied to the land receiving the water service plus the appurtenant properties to the METERED account. One (1) share is required for every 3,000 square foot of property. The CPPMWC’s share registry is comprised of 2 distinct share groups: 1. METERED accounts are households that have a water meter and receive water. There are 2 (two) fixed charges and 1 (one) variable charge that are charged BI-MONTHLY to the account: METER CHARGE ======= $49.48 ( equates to $296.88 annually ) MEMBERSHIP FEE ===== $45.58 ( equates to $273.48 annually ) CONSUMPTION CHARGE = is a variable amount based on the amount of water usage registered on the water meter read on a bi-monthly cycle 2. UNMETERED accounts often referred to as "99 accounts" are vacant properties that DO NOT have water meters and DO NOT receive water. These are Shareholders who have purchased shares on their vacant properties if and when they decide to build on that property. Currently the water company charges $10,000 for a new meter. That cost of a new meter will be discounted based on the number of years shares are held "in good standing" on the "99 account". There is 1 (one) fixed charge that is charged ANNUALLY to the account: MEMBERSHIP FEE ===== $273.48
BYLAWS SECTION 7.02 The maintenance and keeping of the Company Share Registry is the responsibility of the Board of Directors per Section 7.02 of the Bylaws. An inaccurate registry will affect the true number of shares to be calculated for a Shareholder quorum at their Annual Meeting. It has been discovered that sometimes Shareholders do not have enough shares or have too many shares.
WHAT YOU CAN DO? The Company does not have the adequate resources to keep this information up-to-date. Help the Company and the Shareholders by validating the Number of Shares you own. Remember for every 3,000 sq ft of property ( residential plus appurtenant lots ) you own, that you are required to own 1 share per every 3,000 sq ft. For example: 4,000 sq ft is your METERED account 1,000 sq ft is the 1st contiguous vacant lot 5,000 sq ft is the 2nd contiguous vacant lot 10,000 is the TOTAL sq ft (4,000 + 1,000 + 5,000) 3.33 is calculated (10,000 / 3,000) 4 SHARES are required because of the rounding up of 3.33 Having an accurate Share Registry will provide the water company the ability to implement ASSESSMENTS BY SHARES as per the Company Rules & Regulations without controversy and/or legal liabilities. ASSESSMENTS BY ACCOUNTS and or on a separate class of shareholders are contrary to the Company Rules & Regulations even though the Board of Directors have used this method in the past.

WHAT IS QUORUM

In order to conduct the annual meeting, a Shareholder quorum of at least 50 percent, plus 1 of the membership entitled to vote must do so, in person, or by submitting a proxy. If there is a lack of a quorum then Shareholders cannot conduct business and or vote for their Board of Directors. A Share Registry in combination with an Accounts Receivable / Billing systems determines the eligible NUMBER OF SHARES entitled to vote per the 50% + 1 Quorum Requirement. Historically the Share Registry has not reflected the true and accurate NUMBER OF SHARES outstanding either due to the varying unreported appurtenant ( vacant ) property acquisition transactions or simple human error in calculating the total shares of a Shareholder's account. Historically per the Accounts Receivable / Billing systems the true and accurate NUMBER OF SHARES "not in good standing" due to delinquent payments and or insufficient shares are not accounted for during the annual determination of the NUMBER OF SHARES entitled to vote. The Board of Directors have been APPOINTED to the Board by other Board members per their discretion and or personal affiliations. Historically, Board members that are "not in good standing" have served and conducted business on behalf of the Shareholders and the company. Shareholders have not been able to VOTE on company business or ELECT and VOTE for their Board of Directors for almost 30 years due to lack of quorum! A documented 50% + 1 Shareholder quorum was achieved in 1966. The Board of Directors with the approval of the represented Shareholders changed the quorum requirement to 20%. About 1984 the Board of Directors were "legally" advised to revert the Shareholder quorum back to 50% + 1.
HOW IS QUORUM CALCULATED? TOTAL shares outstanding LESS the number of shares not in good standing EQUALS (50% +1) of ( TOTAL shares outstanding LESS number of shares not in good standing) For example: 4,000 are the TOTAL shares outstanding as of an Annual Meeting -400 is the number of shares not in good standing 3,600 is the TOTAL shares outstanding (4,000) LESS number of shares (400) not in good standing 1,801 is (50% +1) of 3,600 1,801 is the outstanding number of shares that must be represented for quorum
WHAT IS AN ACCOUNT IN GOOD STANDING? No balance due on the account Metered and UnMetered accounts must have sufficient shares per every 3,000 sq ft Contiguous lots to the Metered account must have sufficient shares per every 3,000 sq ft Board Members MUST HAVE sufficient shares to serve on the Board of Directors
HISTORICAL MISCALCULATION OF QUORUM Upon review of the Annual Shareholder Meeting minutes from 1966 to 2015, there has been no consistent method utilized to calculate the NUMBER OF SHARES eligible to vote and or conduct business at an Annual Shareholder meeting. Within the 49 years ( from 1966 to 2015 ) of reported eligible NUMBER OF SHARES to vote there are only TWO (2) documented instances discovered when the NUMBER OF SHARES "not in good standing" were deducted from the TOTAL OUTSTANDING SHARES. Fair to deduce that for the other 47 years, the TOTAL SHARES needed to establish a quorum was potentially overstated. THE DOCUMENTED MISCALCULATIONS: FACT: In 2009, there is a discrepancy of 113 NUMBER OF SHARES "not in good standing" that were presumed in the Proxy Inspection Results. That number was never carried over and calculated in the Annual Meeting Information handout to Shareholders. FACT: In 2012, although 386 NUMBER OF SHARES "not in good standing" were reported it appears it was not SUBTRACTED from the total shares outstanding. The following was reported in the 2012 Annual Meeting Minutes: 4,190 shares outstanding as of July 28, 2012 386 were the number of shares not in good standing 2,096 EQUALS (50% +1) of 4,190 outstanding shares must be represented for quorum The correct calculation should have been: 4,190 shares outstanding as of July 28, 2012 LESS 386 the number of shares not in good standing 1,903 EQUALS (50% +1) of (4,190 - 386) outstanding shares must be represented for quorum Only 1,395 shares were represented, in person and in proxy as of 1:30PM - Saturday July 28, 2012 Therefore only 508 more shares were needed to obtain a 50% + 1 quorum.

DID YOU KNOW?

These mutual water companies in the San Bernardino Mountains have a 20% quorum requirement.

Skyforest Mutual Water Company -- Established in 1932, has about 1,150 hookups

Valley View Park Mutual Water Company -- Established in 1923, has about 96 hookups

Green Valley Lake Mutual Water Company -- Established in 1938, has about 1,150 hookups

Valley of Enchantment Mutual Water Company -- Established in 1927, has about 750 hookups

Last modified - January 20, 2016