Ultra Agreement

  • EPCOR pays only justifiable utility expenses and has not paid the Ultra invoices.
  • EPCOR and the Johnson Utilities, LLC (JU) owner have had discussions regarding termination of the Ultra agreement.
  • At this time the Ultra agreement is a non- issue for EPCOR as the Interim Manager.

Hunt Agreement

  • All utility personnel working at JU are still employed by Hunt Management.
  • EPCOR and JU owner are working together provide for raises to all utility staff.,
  • Hunt has paid vacation bonus to staff in line with industry standards.
  • Hunt has reinstated vacation time for staff
  • EPCOR has not paid the Hunt Management margin fee.
  • EPCOR looks forward to working with JU owner for further staff improvements.

Human Resources

  • Two of the five supervisory “Foreman “positions have been filled for wastewater collections and wastewater treatment plants. Active recruitment is ongoing for the remaining three Foreman positions.
  • An on-call program has been implemented to ensure proper and adequate after-hours service order and emergency response is managed properly.
  • EPCOR worked with the JU owner and Hunt Management to pay vacation bonuses for time that was taken away previously.
  • EPCOR is also working on implementing an after-hours live phone monitoring system, to ensure that customer calls outside of regular business hours are answered by a live person.

Finance

  • Hired a third party accounting firm (CBIZ Mayer Hoffman) to perform an independent audit on agreed-upon procedures to confirm and validate financial processes and controls. Fieldwork has been completed and the report is being drafted.
  • Met with Republic Bank of AZ to more efficiently move funds and earn on JU cash balances. Republic Bank of AZ has updated our transfer and ACH capabilities to make it easier for cash management and it is working on a proposal for earnings on our cash balances.

Water

  • Progress is being made in stabilizing water pressure in various portions of the JU service territory. These improvements are being accomplished through installation of Variable Frequency Drive (VFD) motor controllers, installation of air relief valves, and valve sweeps to verify proper valve positioning. Pressure loggers are continually deployed to gather real-time data to allow further adjustments to system operations.
  • Construction is underway for the installation of a pressure-reducing valve ( PRV) from the Magma and Ricky well sites to the Oasis portion of the system. This will address water pressure and quality issues in Oasis.

Comments