ICR Water Users Association
NEWSLETTER
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
[email protected]
Hal Lobaugh - Vice President
the deeply divisive and I might add
expensive nature of these differences.
Our Mission as a Board is to provide high
quality water to our Customers at a
reasonable price within the constraints and
in compliance with the Regulatory and
Legal requirements imposed on a public
utility. There are currently two main
schools of thought relative to the current
Rate Case 1) force the utility to charge
Tariff (household) rates to the Talking
Rock Golf Course and 2) come to an
agreement between the parties (ICRWUA,
the Interveners and the ACC) to achieve
the Mission of the ICRWUA Board. I
believe these issues have been explained
in detail in the letters mailed to Members
in May and at the Member Meeting in
June.
[email protected]
Bill Meyer – Secretary /Treasurer
[email protected]
Shirley Lilien - Director
[email protected]
Earl Cummings - Director
[email protected]
From the President - Before I begin let me say that what
follows is my view alone and may not
necessarily be shared by all members of
the Board.
As most of you know I was seated as a
Director on the Board in January this year.
Then, in July when my predecessor
stepped down, I was elected to be the
President of the Board. I guess what
surprised me most is not that there are
differences of opinion about the issues the
Board and Members face. Indeed,
differences are in fact quite valuable in
most debates because they raise issues and
positions that a single entity, such as the
Board, may otherwise not see or think of.
Primarily, these differences center on the
current Rate Case now pending at the
Arizona Corporation Commission (ACC).
What did, and continues, to surprise me is
October 2008
Costs have been more than anticipated
simply because there were interventions
and they, by nature and process, take more
time to come to conclusion. Because
ICRWUA must be represented by
Counsel, the meter runs and costs go up
with time. In addition, the negotiations
with Harvard have taken longer and cost
more that originally thought because of
the many issues raised, not just by the
Board and Harvard but by others that we
have tried address to some degree.
The Rate Case will go on, one way or
another and most of the postulated
outcomes are not very favorable to our
Customers in terms of the Rates and
Tariffs that we as Members, must
ultimately bear in the form of costs. The
Boards' approach, in my opinion, will
result in the best outcome for our
Members/ Customers. Some, as I said, do
not agree and do so with great zeal and
energy. The unfortunate thing is that as
the debate has continued, it has become
more and more divisive, vitriolic and in
some cases quite personal.
As but one example of the nature of the
dialog, one of our Members provided this
insight as to his/her view of what should
be allowed to happen: “Bankruptcy, as
distinguished from going out of
business, could actually be a positive
result in the big picture and long view.
This would likely trigger the ACC
taking control of ICRWUA and
operating it until it could emerge from
bankruptcy.
This
would
also,
hopefully, involve removal of the
current Board of Directors, needed
changes to the Company’s bylaws, and
election of a new Board of Directors
with proportionate representation on
the Board from each community
served.” Personally, I fail to see how this
outcome could be of benefit to ICRWUA
Members.
The measure of the ICRWUA, its Board
and Members will not be so much by what
we have done to date, but rather how we
behave between now and the ultimate
resolution approved by the ACC. It seems
to me that we would all be a lot better off
by working together and coming to a
common solution that we can all live with
even if it is not any single approach by
any party. It appears to me that the
positions are so set in concrete at this
point that this will not happen and the
ACC will have to decide what is best; we
may not like the outcome.
I hope I am wrong,
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
October 2008
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
(ie 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.
Members to Elect Two
Two board members will be elected in
December’s election for two year
terms on the ICRWUA Board of
Directors. Two seats are up for
election this year. One currently filled
by Earl Cummings who has decided
not to run for re-election, and Bill
Meyer, who is running for an
additional term.
Candidates are
nominated
by
completing
a
nomination form and submitting it to
the Business Office (via mail or fax)
by November 14th. Ballots will be
mailed by early December with a
voting deadline of December 19th.
Results will be announced in January.
Call Bob Busch (713-0548) or contact
any board member if you would like
additional information.
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 know if the ACC accepts
the agreement until the ACC
announces its decision sometime early
next year.
October 2008
October 2008