LAFCO Correspondence to Mutual Water Companies

I understand that the Local Agency Formation Commissions (LAFCO) in several California counties have sent correspondence to all mutual water companies within their boundaries about the requirements of Assembly Bill 54. Among other things, AB 54 requires all mutual water companies that operate public water systems to have their board members undergo a two-hour training on their responsibilities as directors, and to submit a map of their service area to LAFCO by December 31, 2012. If your mutual water company receives such a notice, and you would like to know more, please see my earlier post here about AB 54, and here about the required training course.

4 Comments on “LAFCO Correspondence to Mutual Water Companies

  1. Can you provide me with sample records retentions policies for mutual water companies – in particular related to certificates of stock. Our company was founded in the late 1880s and we have all the stock certificates. Can we dispose of stock certificates that are not current?

    • Blank stock certificates can be disposed of, yes. The only consequence would be that you might need to order more later. I would recommend shredding them to avoid any problems. You do need to retain your stock ownership ledger indefinitely, but that should not take up an unreasonable amount of space, and it can be maintained electronically rather than physically. If you need anything else, please contact me directly. Thanks.

    • I have a follow up question. For example: Mr. Smith was a sotck holder from 1880 – 1910. He then sold the property; the new owner became the stock holder and a new stock certificate was issued. The property has exchanges hands many times. Do we need to keep Mr. Smith’s stock certificate or the stock certificates of the subsequent stock holders other than the current stock holder?

    • No, you do not need to keep the stock certificates themselves. Your corporate records should contain information about the transfers of ownership, but you do not need to maintain the physical copies.

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