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The directors of the Howell Mountain Mutual Water Company voted last week to terminate negotiations with the St. Helena Hospital for purchase of its water system. The proposal on the table would have cost the Angwin users $3 million. The condition of the Hospital system was never revealed, and many Angwin residents saw it as a "pig in a poke."
The Board action represents a complete victory by the Angwin water company membership, which has been opposing the purchase of the Hospital system for two years. In three actions during that period, the members of the mutual company have expressed their opposition to the Board's proposal. First, the majority responding to the Board's own advisory vote rejected the idea. Second, the membership voted by ballot 10-to-one to take the purchase decision out of the hands of the Board, and to make any deal subject to a vote of the full membership. Third, three out of four candidates for a new Board campaigned vigorously against the purchase and all three won the largest number of votes.
The full text of the motion to halt negotiations reads as follows:
RESOLVED: As of April 20, 2005, the HMMWC agrees to stop efforts to seek acquisition of the St. Helena Hospital water system. No further spending on this effort is authorized. The board authorizes its representatives to seek reimbursement of HMMWC expenses from St. Helena Hospital, as specified in the Memorandum of Understanding (hereafter "MOU") between St. Helena Hospital and the HMMWC. Further, the board authorizes termination of the MOU after negotiations for reimbursement are completed.
The water company board, over objections from the membership, spent $212,000 pursuing the purchase of the Hospital system, but never did undertake a study of the condition of the system.
In another action, the Board accepted the resignation of Gilbert Muth from the Board, and elected Adam Pease as president.
Muth was the most vocal advocate for purchase of the Hospital System. Without his leadership, the four remaining members of the old board are not expected to push the issue.
Pease brings a wealth of experience in Board governance to the company. He has been president of three different non-profit organizations, and is currently president of a software research company. He enjoys the confidence of the Angwin community.
On taking office, Pease repeated his campaign promise, to bring better judgment and a more democratic atmosphere to the Board. His statement to the membership is as follows:
"I look forward to being part of a more harmonious and accountable Board that truly serves its membership. We must provide full disclosure of all information about the state of the company to our membership. My goal will be to trim expenses and ensure prudent financial decisions that result in a stable water supply and the lowest possible water rates for the long term."
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