| It’s More Fun to Cook for a Crowd, But You Can’t Invite Everyone to Dinner | |
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If persistence is the key when
it comes to regulatory affairs, then discipline is the key when it comes to
growth. We continue to pursue only those growth opportunities that make
sense for our stockholders and our customers. On the regulated side of the
business, we completed three acquisitions in 2005: a 350-connection system
called Cypress Gardens in New Mexico; a 270-connection system serving areas of Portola Valley and unincorporated San Mateo County in California; and a 169-connection company called Gamble Bay Water, Inc., in Kitsap County, Washington. On the non-regulated side of the business, we launched our Extended Service Protection (ESP) Program. For a monthly fee of $4.95, customers can be protected if the water line between the meter and their home needs repair. The program was introduced in three California districts in 2005, and more than 1,800 customers have already enrolled. We plan to offer it in our remaining California districts by the middle of 2006. We think ESP is an ideal way for us to leverage our expertise in the water business to provide a new, unregulated service to our regulated customers. Also in 2005, we entered into an agreement to operate the water, wastewater, and recycled water systems of Tejon Ranch, the largest piece of private land in the state of California. Currently, the system serves 12 large customers, but the area is expected to be developed further in the next 25 years. Finally, we realized $2.2 million in gains from sales of properties no longer used or necessary for serving our customers. We predict that our surplus property sales program will continue to allow us to maximize the value of excess real estate in future years. Looking forward, we will continue our disciplined approach, pursuing regulated growth in the western United States and seeking opportunities to increase non-regulated revenues through ESP, our surplus property sales program, lease of certain sites for cell phone antennas, and innovative arrangements to provide water quality testing, billing, and other services to third parties. |
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| Professional Chefs Get the Best Results | |
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With the retirement of Ray
Taylor, Vice President of Operations, several Officers assumed new
responsibilities: Dan L. Stockton was named Vice President, Corporate
Development and Corporate Secretary; Robert R. Guzzetta was named Vice
President, Operations; Francis S. Ferraro was named Vice President,
Regulatory Matters and Corporate Relations; and Paul G. Ekstrom was named
Vice President, Customer Service and Information Systems. Joining the
Officer team, Michael J. Rossi was promoted from Chief Engineer to Vice
President, Engineering and Water Quality. Finally, Martin A. Kropelnicki was named Vice President, Chief Financial Officer and Treasurer. Offering opportunities for new responsibilities is just one way that we develop and further energize our people, and it is not limited to our Officers. Temporary assignments are offered throughout the Company to give employees the chance to learn and grow. We also offer more traditional training opportunities, such as the Project Management course offered to managers and supervisors in 2005. And, our Continuous Improvement approach to the business continues to yield excellent results, both in terms of the improvements in service and efficiency that result, and in terms of the skills it enables every employee to build, including critical thinking, public speaking, and problem solving. |
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