To the Members of
Community Water Company of Green Valley,
(An Arizona nonprofit corporation with members)
It has been nine years since we installed treatment facilities to meet the tighter arsenic standards that were enacted
by the EPA. And it’s been eight years since we made major upgrades to your water delivery system; moving two
of our operating wells east to avoid increasing sulfate l
evels. These system enhancements share two common characteristics—higher operating costs and increased complexity. Coming forward to the present our application for debt to replace an obsolete reservoir with a larger—more secure—reservoir was approved in November by the Arizona Corporation Commission. As a result your reservoirs will store enough water for about two days of water deliveries under normal demand conditions and
improve operating efficiencies. This year was no exception with excellent results obtained from the startup of company-developed arsenic drying beds. These drying beds dramatically reduce the cost associated with handling the waste from our arsenic treatment facilities. Other cost savings continue as we find better ways to manage the billing and work order systems using our recently upgraded computer system. These efforts are increasingly important, as our total water deliveries are continuing a long term downward trend, as is occurring in other Arizona areas. While 2014 financial results are acceptable, the trend for the future is poor. We are delighted with the major system enhancements made to our system and our ability to cut costs in our operations. However, complicated financial guidelines that are in place to ensure that we only pay for assets that are necessary for reliable and safe operation of your system can, in certain situations, make it nearly impossible to recover the full cost of an asset. Your management team has been working diligently to overcome this basic cost recovery problem for many years, and yet our operating margin continues to decline. It is important to maintain the financial sustainability of your company, and to continue generating sufficient revenues to fully meet our expenses, and develop reserves for dealing with unexpected system breakage and capital investments required to maintain aging infrastructure in good working order. Rate increases are necessary to meet these increased costs and maintain financial sustainability. Looking forward, we continue delivery of water that meets or surpasses all health and safety measures that we are subject to. We conduct all of the required tests to check delivered water quality, and publish our report in June of each year. Our Water Quality Report is available on our website at http://www.communitywater.com/wqr.pdf. Please visit our office if you would like a paper copy. Project Renews was started in 2007 to bring renewable water supplies to the Green Valley-Sahuarita area. It has the approval of the Bureau of Reclamation and continues to be developed at no cost to our members. All necessary rights-of-way have been acquired, and a segment of pipeline has been installed in Sahuarita. The final Sahuarita bridge cost sharing payment was made to the town; and pipeline construction is expected to resume in 2016. Our December 2014 survey shows that customer satisfaction remains high. Overall, 84% of respondents were satisfied or very satisfied with your company. Please congratulate our employees for their exemplary service. They are the heart of your company, and their good stewardship has resulted in a reliable and robust water delivery system. We are proud of our safety record and training programs. In 2014, Marc Levesque, an employee of 29 years, was recognized by AZWater Association as the Small System Operator of the Year. Thanks also to our volunteer directors who represent our members’ interests. Their knowledge of the community and our local water issues are valuable and we continue to be delighted with the expertise of the directors serving your company.
