In the board meeting on January 17th, among other items, the Board voted 5-0 to purchase the 21 water shares currently owned by Phelan/Pinon Hills Community Service District. PPHCSD decided to sell their shares after the recent consolidation attempt fell through, and they are asking $1100 per share.
The plan as I understand it is to hold these 21 shares, along with the other 16 shares held by Sheep Creek Water Company, and eventually sell them when the value of shares increases enough. According to the California Corporation Code, any shares “owned” by Sheep Creek Water Company cannot be voted in the annual meeting, so purchasing these shares lowers the number of possible voting shares to 7,963.
In my opinion, the company should not be spending more than $23,000 of shareholder money purchasing shares. If there’s so much money floating around being unused by the company, they should be lowering the monthly base rate, or saving that money for infrastructure improvement. Just my humble $.02.
This is truly information that needed to be shared. Thank you.