ICR Water Users Association
NEWSLETTER
November 2008
CONTACT US
For new service, billing questions or any other water co. matters call:
Business Office:
Address: 246 N Hwy 89, Ste A
Chino Valley, 86323
Phone: 583-0741
Water Co. Manager- Bob Busch
928-713-0548
AFTER HOUR EMERGENCY PHONE NUMBER:
A Quality Water Co.
(ICRWUA System Operator)
Chris Williamson: 928-606-0563
Board of Directors –2008
Hugh Pryor – President
Hal Lobaugh - Vice President
Bill Meyer – Secretary /Treasurer
Shirley Lilien - Director
Earl Cummings - Director
From the President - -
Before I begin let me remind you that what follows is my view alone and may not necessarily be shared by all members of the Board.
The schedules are set for the ICRWUA Rate Case now before the Arizona Corporation Commission (ACC) and the case goes to Hearing on Dec.1, 2008 at the ACC in Phoenix. In the interim, the parties (ACC Staff, ICRWUA, Harvard, Dayne Taylor, intervener) will be providing written testimony to the ACC as prescribed in Judge Stern’s Procedural Order of Sept. 26th, 2008. The first day of the Hearing will be devoted to collecting public comment on the case and I urge any of that can make the time available to travel to Phoenix and provide your input personally, no matter what your position may be.
On Oct. 28th, 2008 Jeff Crockett and Rob Metli of Snell & Wilmer (ICRWUA Rate Case attorneys) conducted an informational meeting for interested Members to hear a layman’s explanation of the Water Service Agreement recently signed by ICRWUA and Talking Rock Parties. Approximately 50 people (including four Board Members) attended to see the presentation and participate in a Q & A session. There was a “spirited” discussion by people who oppose adoption of the Water Service Agreement as well as those in favor. Personally, I thought the presentation as well as the Q & A session went pretty well.
Unfortunately there still appears to be a complete impasse between the members opposed to the WSA and those in favor with little movement on either parties’ part over the past few weeks.
I would like to take this opportunity to express my thanks to those who support the Board and to say that although this has been a difficult time, I feel privileged to have served the past few months as your President. Thank you.
Hugh Pryor
Rate Hearing Now Expected to Take Three Days
Nearly 11 months ago, the Company was scheduled for a one day hearing before the Arizona Corporation Commission to present its case for a “modest” rate increase. Now, after many costly months of filing documents and negotiating sessions, the case is set for hearing by the Commission beginning December 1st. Because of issues raised by the intervener, Dayne Taylor, the Administrative Law Judge in the case, Marc Stern has scheduled three days to hear the case, in which the matter of a rate increase has almost become secondary. The hearing will undoubtedly include testimony regarding the Company’s compliance with a 2001 Commission Order, and the transfer of well(s) to the Company by Talking Rock Golf, along with what the Company has charged and proposes to charge TRGC for water delivered to the golf course. To make matters more interesting, the hearing will take place after the election in November of three new Commissioners who won’t take office until January. The decision in the case won’t likely be made and issued until February, after the new Commission is seated.
Tried Out Our Website? – Here’s How.
ICRWUA began it’s website in late August as a way to help keep members informed. The main page has received over 800 visits in the first three months.
In case you haven’t visited, just go to icrwua.com and you can see the latest water company news. There is a link to a “Newsflash” page containing any current news. There are links to other pages where you can easily view and print meeting minutes, newsletters, service application, water quality report and over 2 years of archived documents including financial statements. If you are interested in the rate case, you can easily pull up specific documents filed in the case by clicking the “Rate Case” link and then the link to documents in the case, including all filed testimony.
Try it! You’ll like it!
Auto Pay Plan Works for Many
Fifty eight customers have now signed up for the Auto Pay Plan. The plan was announced a few months ago in a billing insert. The plan provides for automatic withdrawal of monthly water bills from a customer’s checking or savings account. The customer still receives a bill each month, showing water use and payment. For additional details or sign-up authorization forms, call the business office.
Member Group Requests Access to Company Records
Several members of ICRWUA filed letters with the Company in September, requesting access to inspect and copy company records.
The members requested an opportunity to inspect and copy numerous company documents including Bylaws, Articles of Incorporation, Meeting minutes, Annual Reports to the ACC, accounting records, financial statements, and finally, “a list of the names and addresses of all members and in alphabetical order by class of membership showing the number of votes each member is entitled to cast and the class of memberships held by each member”.
The Company did provide access to the above information as required by law, but to date has not provided additional information the group requested; emails among directors relating to the “survey” conducted at the June 3rd member meeting; emails among directors related to the petition docketed on Sept 11, 2008 by Manager, Bob Busch; invoices and detailed backup from attorneys in the rate case (Snell & Wilmer, LLP) and Tom Bourassa, CPA, accountant for the Company in the rate case
The groups stated purpose in requesting member addresses was “to allow us to send communications to the same Member List as the Board has used in sending several communications, e.g., those sent to members in May of this year relating to the April 18 LOU.”
The group has threatened legal action to get access to the records.
Company Files Additional Testimony in Rate Case
On September 15, 2008, ICRWUA attorneys, Snell & Wilmer LLP. filed Supplemental Testimony with the Arizona Corporation Commission “to Support Request for Approval of the Water Service Agreement”.
As indicated by the title, the testimony supports the company’s case that the agreement, recently entered into by ICRWUA and Talking Rock Golf Club, should be approved by the Commission.
The testimony includes a request for an over all rate increase of 13.75 percent over adjusted Test Year revenues. This equates to a 15.18 percent increase to a customer with a standard 5/8” meter using the average of 7,085 gallons per month. The increase is predicated on the implementation of the Water Service Agreement with Talking Rock Golf Club, which provides that TRGC pays an annual reservation charge plus $1.00 per 1000 gallons for all water delivered to the golf course. The reservation charge is initially $50,000 per year, declining to $10,000 over ten years.
According to testimony, if ICRWUA were to lose all revenue from TRGC (i.e. if TRGC were to leave the ICRWUA system) additional revenue needed would go from 13.75 percent to 72 percent – all of which would have to come from remaining customers. This amounts to $156,000 in additional revenue that would have to come from the approximately 450 customers. That represents nearly $29.00 per month additional from every member (If it could be divided equally among members).
The Company believes that the WSA provides many benefits to members, not the least of which is that the agreement retains TRGC as a special customer and retains the revenue it provides.
Six Via for Board Seats
Six candidates have been nominated to run for the two board seats that will be filled in this year’s election. The winning candidates will be elected for two-year terms and will join three current board members to complete the five-member board. Running for the two seats are Richard Bustamente, Cheryl Kensok, Bill Meyer, Debbie Ott, Scott Robbins and Jimmy Stoner. Ballots will be mailed by early December with a voting deadline of December 19th. New board members will begin serving their two-year term in January.
Our new website icrwua.com
Company Receives Payment
ICRWUA recently received a $30,000 payment from TRGC as financial assistance in the rate case. The payment was part of the terms of the Water Service Agreement executed by the parties in September. The agreement calls for ICRWUA to receive a $30,000 financial assistance payment upon execution of the agreement by both parties. If the agreement is accepted by the Arizona Corporation Commission, ICRWUA is to receive an additional payment of $50,000 as financial assistance. It will not be known if the ACC accepts the agreement until the ACC announces its decision sometime early next year.
November 2008
November 2008