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Follow on Google News | CLWSC’s Cost Inefficiencies Passed on To ConsumersIt appears from their filing with the State, plus numerous inputs from its customers, that Canyon Lake Water Service Company (CLWSC) has experienced gross operating inefficiencies.
By: CEWR CLWSC was purchased by San Jose Water Company (SJW) on May 31st, 2006. SJW’s most recent quarterly financial statement indicated a 2.3% increase in net income over the last quarter. In their July 28th release, SJW also noted a 19.7% decline in water production costs over last year. According to an article published on December 22, 2009 by Michelle Leder at Morningstar ® , “Over at SJW, the salary increases are even heftier. On Friday, the company, which operates the San Jose Water Company, filed this 8-K disclosing the raises for several top executives. CEO W. Richard Roth will make $625K starting in January — a 31.5% increase over the $475K he made this year. The filing doesn’t give any explanation for the hefty raise, nor does it say what Roth was making before, so you have to dig through older filings in order to get a comparison. It’s clear the company didn’t want to disclose this number because in the very same filing, it does provide a comparison for another executive who’s getting a raise: CFO David Green, whose salary is going up around 13%. * CEWR has requested information from CLWSC’s General Manager on the Company’s strategy to maximize the value of scarce operating funds and plans to implement both short and long term cost containment initiatives, to no avail. All efforts by CEWR to support CLWSC in the implementation of any profit opportunities by way of identifying unnecessary expenses have received no response. “It appears that CLWSC has decided it easier to pass the cost of their inefficiencies to the users by demanding an ever increasing rate structure.” *Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions. # # # The Coalition for Equitable Water Rates (CEWR) is a non-profit organization of local residents representing residential and business interests to insure that fair and competitive water rates are provided by the Canyon Lake Water Service Company. End
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