I'm ready. Okay. Great. Let's go on the record then. So this is the time set for the hearing in docket number WDash21307ADash I said 3Ones. It's 21. Sorry. It's 21307ADash25Dash0137, and WDash01816ADash25Dash0137, which is the matter of the application of Global Water, Ocotillo Water Company Inc, and Spanish Trail Water Company to modify their existing CCNNs.
Good morning, everyone. Welcome to those in the room, those online. I'm looking at you both. Welcome to the ACC. So my name is Jane Rodden. I'm the administrative law judge who assigned herself to this matter. And first thing I'll do for the record is to take appearances. So I'll start with Global. Good morning, your honor. Robert Medley on behalf of Global Water Resources Inc on and I'm representing today Global Water, Acatillo Water Company Inc. Great. And on behalf of Spanish Trail Water Company?
I think you're muted. Good morning. I apologize for that, your honor. This is, my name is Chad Kolevizner, and I'm making an appearance on behalf of Spanish Trail Water Company. Wonderful. Welcome. Thank you. And on behalf of commission staff? Good morning, your honor. Bridgette Humphrey on behalf of commission staff. Present with me today are our staff witnesses, Randwick, and Guadalupe ARTs. Great. Alright. First, thank you all for your patience while we work through the little technological stuff, but now we got it working. So before we get started, does anyone have any preliminary matters to discuss?
I'm not aware of any pending motions or problems. Alright. Then we can get on. First is the time where I ask if there's any public comment to be made, and I will note that there are no members of the public this morning in the hearing room nor online to make public comment. So we will go to opening statements. Mister Metley, did you have an opening? I did, your honor. Thank you. For context, I'll just give a brief history of of of this case. In April, 2024, Global Water, Ocotillo, and the city of Tucson entered into an asset purchase agreement in which the city
agreed to sell seven separate potable water production, treatment, storage, transmission, and distribution systems in Pina County to Global Water, Ocotillo. On 05/10/2024, Global Water Ocotillo filed an application Commission requesting of a requesting approval of a new CCNN to serve these seven areas. The requested service area included approximately 4,854 acres serving approximately 2,200
active water customers. One of the service areas included in the sale was entitled Thunderhead Ranch. During staff's analysis of the initial CCNN application, it was discovered that a small portion of the service area of Thunderhead Ranch overlapped with the existing CCNN territory of Spanish Trails Water Company. In order to proceed with the extension application, Global Water Acatillo filed a notice of errata removing the overlapping area from the application. In decision seven nine six seven
nine in January 2025, the commission approved the extension application determining there was a need for water service in the extension area and that Global Water Acatillo was a fit and proper entity to serve these areas. With respect to the overlapping area, decision seven nine excuse me, 79679 specifically noted, quote, there are two customers located in the overlapping area for Thunderhead Ranch. After the acquisition, Global will continue to serve the Tucson Water customers in the areas that are outside
the CCNN approved in this decision, and the company is working with the other utilities to reach a permanent resolution. To address this, on 06/26/2025, Global Water Acatillo and Spanish Trails Water Company entered into a transfer agreement whereby Spanish Trails has agreed to transfer the overlapping area to Global Water Acatillo. Currently, Spanish Trails does not have any infrastructure in the overlapping area and service to the overlapping area at the On 06/30/2025, the applicants filed a joint application with the Commission for approval to modify both existing
CCNNs and approval of the transfer agreement. On 08/18/2025, the applicants filed an amended joint application to provide additional information pursuant to Arizona Administrative Code Rule fourteen-two-four zero two. That amended application we've marked as Exhibit A1. Upon staff's review of the application, staff concluded the following, the transfer of Spanish Trail's rights to provide water utility service to the proposed transfer area to Global Water Acatillo and an amendment to the applicant's CCNN is in the
public interest. Global Water Acatillo is a fit and proper entity and has the technical, managerial and financial capability to serve existing and future customers in the proposed transfer area. The proposed transfer will have no adverse effect on the quality of service or the operation of the Thunderhead Ranch water system. That because customers in the area that are subject to this application are currently receiving water utility service from Global Water Aquitio, the proposed transfer will have no impact on existing Global Water Aquitio customers.
Thunderhead Ranch Water System has sufficient well production and storage capacity to serve the current customers and allow for reasonable growth. The Thunderhead Ranch Water System is in compliance with both ADEQ and ADWR and that both Global Water, Acatillo, and Spanish Trails are in compliance with the commission. In addition, Global Water agrees to both staff recommendations in that Global Water Aquatiel will charge customers in the proposed transfer area current rates and charges in effect and will file a copy of a franchise agreement or what
is known now as a license agreement for the proposed transfer area within two years of the effective date of the decision in this matter. As I previously stated, we'll present one exhibit today. That'll be the amended application. We'll also present one witness to support the amended application. Spanish Trails, through their counsel, will also present a witness to support the amended application and be available for questions. In conclusion, applicants are seeking the transfer of the Spanish trails rights to provide water service in the overlapping area,
thereby amending the certificated areas of both companies to accommodate the transfer. Thank you. Thank you, mister Metley. Nicely done. I appreciate the history. Spanish Trail. Mister, would you say your name slowly so I call it the Kolo Dizner. Kolo Dizner. Thank you. Sorry. Do you have an do you have an opening this morning? We're here in support of approval of the application, but we, I'll waive my opening statement. Great. Alright. Thank you. Thank you. And, miss Humphrey, did you have an opening statement? I mean, opening statement this morning?
Just briefly, your honor. Basically, to thank mister to start off by thanking mister Metley for his thorough, summary of both the company's position and staff's position in this case, with which we are in agreement. Staff is recommending that the applications be granted as requested with the conditions and terms suggested by mister Medley. And with that, I don't believe we need to repeat everything that mister Medley just told us about. We'll we'll hear that often enough this morning. Thank you. Alright. Thank you, miss Humphrey. Alright.
Mister Metley, are you is your witness going first? Or yes, your honor. Okay. The company calls miss Ruth Townsend to the stand. Can you say her last name again? Townsend. Townsend. Okay. Is the little green light on where you are? Yes. Okay. Can you swear her in, please? Alright. Good morning. This is, the court reporter. Could you please raise your right hand for me? Do you solemnly swear or affirm that the testimony you're about to give at this time and place will be the truth, the whole truth, and nothing but the truth? Great. Thank you. I did not hear her response. Sorry. I did. Okay. That's good. Thank you.
Yeah. It's hard for her to swear you in and type at the same time and talk in the microphone and yeah. Anyway, go ahead, mister Metley. Thank you, your honor. Good morning, miss Townsend. Could you please state your name and business address for the record? And by whom are you employed? And what is your position in Can I get you to put the microphone a little bit closer? Yeah. I think you have to get kinda yeah. I think it is better. And, miss Townsend, what is your position and duties at Global Water Resources Incorporated? Okay. And on whose behalf are you testifying today? And what
will Oh, I didn't have it on enough. I'm sorry. Much better. Should we repeat that? Robin, do you need us to repeat anything? I can hear her fine. Interesting. Sounds like she's in. Okay. Great. Perfect. No. You don't need to repeat. It was just her name and address. And, miss Townsend, briefly, what will you be testifying to today? I am supporting our exhibit a dash one, which is Global Water Ocasio's application for transfer from Spanish Spanish Trail, of the CCN in the in the joint overlapping area.
And with respect to a one, you should have a copy of that in front of you. Do you? I do. Can you just, for the record, identify exhibit a one? It is the amended joint application filed by Global Water Ocotillo and Spanish Trail Water Company. Okay. And can you just briefly describe, exhibit a one for the record? Yes. This is the joint application where both companies request approval to transfer from Spanish Trail to Global Water Ocotillo,
the overlapping area, that was part of the City Of Tucson and Global Water Ocotillo asset purchase agreement. Okay. And and just for clarity for the record, we we did file two two joint applications. A one in front of you, is that the amended joint application? It is. Okay. Thank you. At this time, do you have any changes or modifications to exhibit a one? I do not. You adopt a one as your sworn testimony today? I do. Okay. And is Global Water Acatillo currently serving two customers in the overlapping area?
We are. And have those customers been notified of this application and hearing? They have. I'm gonna direct your attention now. It's gonna be it was gonna be marked as exhibit s one. That would be the staff report in this case. Do you have that in front of you? I do. K. Have you had an opportunity to review the staff report? I have. Could you please turn to the recommendations on page seven? Yes. Let me know when you're there. I'm there. Does the company support staff's recommendation,
number one, requiring the company to file its approved rates and charges within thirty days of this decision? It does. Does the company support staff's recommendation, number two, requiring the company to file a license agreement within two years of the effective date of this decision? We do. Okay. Thank you. I have no further questions, your honor. I offer her for cross examination. Sorry. Mister Kola Diesner, do you have anything? So first of all, my video won't stay on. Just I thought. So I still see your name or your Yeah. Trying my best. And, no, I have no direct examination of my witness,
but, Mark Weinberg is here and available if you have any questions. Great. Thank you. Staff, do you have any questions for this witness? Just briefly, your honor. Thank you. Good morning, miss Townsend. Good morning. Is it the case in this matter that that, the two customers in the overlapping area have always been served by, Global Water or its predecessor Tucson Water? That's my understanding. Yes. And Spanish Trail does not have any infrastructure, in which it through which it could serve the two customers and the and the,
the overlapping area in question. Is that correct? That is. Thank you. And, you are are you you mentioned that you were in agreement with the recommendations of staff contained on page seven. Did you also review the conclusions contained on page seven of the staff report exhibit as one? I did. And are you in agreement with the conclusions read by staff in that in that document? Thank you. I have no further questions, John. Okay. Thank you, miss Humphrey. Thank you for asking my questions for me. So my understanding, there are only two customers affected.
Correct? Correct. And are there any other assets that are in this transfer area, or is it just the service lines? It's just the lines. We already have the underlying infrastructure. No wells or storage tanks in this area? That we would transfer. We already have everything from the transfer agreement. Okay. Alright. Do you know and I know I think there's a Spanish Trail witness potential, but do you know how far away the Spanish Trail current facilities are to this to these customers? Yes.
1.2 miles. Do you know how big is this area? Do you know, like, Anchorage? If you give me just a moment, we have it here in our documents. I believe it's in staff's document. My apologies. I think it's probably in the decision. If you would like, I can take a look in here and see if I have it marked. When you say the decision, you mean the prior decision? I do. Sorry. Decision number 79679. Your your honor? Yeah. Are are you are you seeking the acreage of the overlapping area? Yes. Okay. Yes. May I redirect her on this one?
Yes. Thank you, sir. Okay. Miss Townsend, if you would go to exhibit a one, our, our amended application, and if you go to exhibit two, which is which is the the map Yes. That information should should be on on that page. You can Thank you, sir. You're welcome. 26.5 acres. I'm just gonna walk over and look at your copy of the exhibit because when I copied this Let the record reflect that the witness was able to show me where it says 26.5 acres, and I appreciate her assistance.
Do you know, like like, two residences are these residences on the Yes. They are. Are they little ranchettes or that that's a lot of acreage for two houses. Do you know or do you know the potential for development? So the entirety is not fully developed, so there would be room for growth. I it is my understanding. There are two ranchettes is is the right word. Okay. Is your application, if you know, does it talk about how many customers are in the entire Thunderhead Ranch area?
Our application, I don't know if it's Or if you happen to know. Yes. If you give me one minute, I do have that. Find the right page. Apologies. I knew the entire amount of our why. Okay. Well, that's okay if you don't know. It's it's just Your honor, if it would be helpful, we could file a late file exhibit. If you're looking to the the number of customers by service area. We do have them. We had that in the original application. Okay. Well, I can look in that docket and take to our official notice of that application. So that's great. Thank you,
mister Metley. It's alright. And, you know, when we get the transcript of this proceeding, large gaps of time don't show up. Right? Looks like we were all for knew everything. Oh, actually, your honor, I'm I'm looking at decision 79679. And if if you take paragraph 56, the Thunderhead Ranch Water System consists of two wells, two storage tanks with a total capacity of 49,500 gallons, one pressure tank, one booster pump, 7,811 linear feet of mains, and 62 customer meters.
Great. Thank you, mister Mintley. I did have that noted but didn't find it very quickly. It's hard. Excellent. I'm gonna ask mister Metley this even though he's not sworn in. Do you know if that included the two customers? That would that would not have included the two customers because we removed we removed those That's right. On our amended application. Cool. Sorry. Alright. Did you have any redirect? I'm gonna stop. I I do not, your honor. Thank you. Anyway, the staff have anything further? No. No further questions. Thank you. Alright. Well, thank you. Thank you, miss Thompson.
You can step down and I appreciate your patience and willingness to be here today. Did you want a copy of this, a one? Yes. That'd be great if you could leave a one with me. You can just leave it on the table there. Mister Kolodysner, did you want to do you have a witness? As I mentioned, we we your honor, we do have a witness, Mark Weinberg, that's prepared to answer any questions. I don't have any direct exam examination. Okay. Just let We just everything else. I didn't mean to cut you off. Just let me check my notes. Can I I asked through you?
So, miss Townsend testified that the nearest facilities for Spanish Trail Water Company were 1.2 miles away. Is that comport with your understanding? That's accurate. Okay. Thank you. Then I don't think I need to speak with your witness unless staff wants to. Staff is shaking. Anyway, I think I cut off staff and then they were shaking their heads. They don't need to talk to their witness. Alright. Miss, Humphrey, you have a witness? We do. We have two witnesses, your honor. First, we would call Brian Witt. Great. Standby to be sworn in.
Mister Witt, do you solemnly swear or affirm that the testimony you're about to give at this time and place will be the truth, the whole truth, and nothing but the truth? I do. I thank you very much. Thank you. Mister Witt, would you state your name and your business address for the record? My name is Ryan Witt, w I t t. My business address is 1200 West Washington Street, Phoenix, Arizona 85007. By whom are you employed and in what position? I'm employed by the Arizona Corporation Commission, and I am the principal engineer.
And, I assume that you assigned yourself this case to evaluate? Yes. I did. And as a matter of fact, were you also, were did you also work on the on the earlier case, docket number 24DashO107? Yes. I did. And did you review the application and the amended application in this matter? Yes. I did. Can you tell us briefly what your, evaluation consisted of? Briefly, we looked at the, I looked at the water loss, production, storage capacity, as well as the,
basically any of the tariffs, as long as well as the compliance standings with ADEQ and ADWR as well as the commission. And, I'm showing you what's been marked as exhibit s one. Is that the staff report in this case? Yes. It is. And is there an engineering report attached to that staff report? Yes. There is. Did you prepare that, engineering statement? Yes. I did. And, do you have any corrections or modifications to the engineering report? I do have one correction.
Give me one moment, and I'll tell you exactly where it is. I'll show it on page one of your reports. On okay. So exhibit two, my report on page one, it says that decision number 79679 is dated 01/01/2025, and that should be 01/22/2025. With that change, are you adopting the engineering report as part of your sworn testimony here today? Yes. I am. Did you hear the summary mister Medley provided in his opening statement of the facts
in this case? Yes, I did. Is there anything you would like to add to that? The the summary is very accurate. The only, thing is when we did our calculations, that 62 customers includes the two. So when we actually did our calculations and wrote up our engineering report, we excluded the territory, but we did take into account those two customers because they were already part of the consumption data. Did did you evaluate, whether the Thunderhead Ranch system had sufficient capacity to serve the two customers in the
overlapping area? They definitely do because the capacity capacity numbers are based upon all 62 connections, including those two that are outside the CCNN area. Are you aware of any planned growth in the area? No, ma'am. I am not. Did you consider whether, at all whether, the system would have the capacity to serve any growth that did occur in this small overlapping area? Based upon their actual production capacity and their actual storage capacity, They certainly could serve growth in that area. The area itself is kind of very spread out.
So as we're driving around to the different systems, you would come across three mailboxes, but you wouldn't see any home anywhere near. So, these people had a lot of space, and if they were gonna subdivide, they certainly could. But the, company would have no problem whatsoever in in serving reasonable growth. Did Shavrin, your conclusion, as to, whether the company, has the engineering capacity, and management skills to provide service to the overlapping area in this case? They certainly do, especially given the fact that they are already providing said service.
And from an engineering perspective, do staff believe that the, granting of the request in this matter would be in the public interest? Yes. I believe it will be in the public interest. Thank you. I have nothing further, mister mister Woods available for Cross. Okay. Mister Metley, did you have anything for this witness? No questions, your honor. And I don't have any questions further. I really appreciate the thoroughness of your, testimony, mister Witt, so thank you. And staff has no redirect. So since there is no cross, so, we would, excuse mister Witt and call miss miss Marlope Ortiz.
Alright. If you could, do you solemnly swear or affirm that the testimony you're about to give at this time and place will be the truth, the whole truth, and nothing but the truth? I do. Thank you very much. Thank you. Good morning. May I please state your name and your business address for the record? My name is Guadalupe Ortiz. My business address is 1200 West Washington, Phoenix, Arizona 85007. By whom are you employed and in what position? I am employed by the Arizona corporation commission utilities division as a public utilities analyst for. And were you assigned to review the application and the amended application of a few
companies in this case? Yes. What did your evaluation consist of? My evaluation consisted of reviewing the application and joint and amended application for administrative completeness, as well as the corporate records, ownership, tariffs, and financial information on file for the applicants, the findings of staff's engineering analysis, and the proposed transfer agreement to determine if the application is in public interest. And you should have it in front of you what's been marked as as exhibit s one. Do you have that? Yes. And is that your stamp report in this case?
Yes. And was that prepared by you or at your direction? Yes. Do you have any changes or corrections to make to that? No. And, are you adopting the contents of that staff report as part of your testimony here today? Yes. Thank you. Your honor, we would move for the admission of exhibit s one. Okay. Any objection to s one? No objection. No. Okay. Okay. S one is admitted. Thank you. And when and while we're admitting that, I would also ask, that you take administer official notice of decision number 79679, which is the decision in the docket 24DashO107.
Yes. Thank you. I will definitely take official notice of 79679. Is that all? Nope. Oh, I have a couple of questions. Oh, okay. Well, I will call qualify. No. It's okay. You just look like you were done. Did you evaluate whether this company has the financial, and management, capacity to continue to provide service to the to the customers in the overlapping area? Yes. And what conclusions did you reach? Based on staff's analysis of the commission's decision, which granted Global Water Arapateo's initial CCNN and the financial conclusion the conclusion that was
brought about in that decision with regard to its financial, capability and its affiliation to its parent company. Staff finds that the company has the financial and managerial, and technical capability to serve the proposed extension area. Thank you. And you the technical aspect, I'm assuming was contained and or based on mister Woods That is correct. Thank you. Do you believe that the granting of the request in this case is in the public interest? Yes. I do. Thank you. I have nothing further,
your honor. Miss Fortis is available for Cross. Okay. Thank you very much. Miss mister Metley, did you have anything? No question, sir. Mister Cole Deissner, do you have anything? No questions, your honor. Okay. Great. And, neither do I because I appreciate all the witnesses here today answering my questions before I ask them. Alright. You may be excused, miss Ortiz. Yeah. Before we go, I don't think I admitted a one. So is there any objection to a one, which is the amended joint application? No no objection. Right. So a one is admitted. Anyone have did you need to make a closing?
Mister Metley heard enough from me today. No. It was great. I appreciate you. So no closing for mister Metley. Anything from you, mister Kolodysner? Sorry. You got to keep unmuting. No no problem at all. Thank you very much. Nothing further from that. Staff, did you have anything further? Nothing from staff. Thank you, your honor. Okay. Before we all leave, I'm gonna go off the record for a moment. Robin, did you have any questions for anybody about anything? Michelle, but no. Oh, Michelle. I'm sorry. I keep calling. That's okay. I called you that all day. That's okay. No questions. Thank you. Okay. Back on the record.
Alright. I'd like to thank, all the parties for being here today and for their testimony, and I will take the matter and advisement and issue a order as, as quickly as I can. So thank you all. Bye. Thank you very much. We're off the record. Bye, everybody. Thank you very much.