Notice of 2021 Annual Meeting of Shareholders

TO ALL SHAREHOLDERS OF GORGOZA MUTUAL WATER COMPANY:

NOTICE IS HEREBY GIVEN that the annual meeting of the shareholders of GORGOZA MUTUAL WATER COMPANY will be held on Wednesday, December 8, 2021, commencing at 6:00 p.m. in the multi-purpose gym at Park City Day School located at 3120 Pinebrook Road, Park City, Utah.  The following matters of business will be transacted at the meeting:

1. Review and approval of the April 24, 2019 shareholder meeting minutes.
2. Presentation of independently prepared 2020 and 2019 comparative financial statement review report and proposed budget and cash flow projection for 2021.
3. General update on the condition of the water system and discussion of recently completed and proposed capital improvement projects.
4. Elections to fill two, three-year term seats on the board of directors. 
5. Discussion of any other matters of business properly brought before the board of directors.

            Pursuant to the Company’s Bylaws, the date of this notice is the record date for determination of the shareholders entitled to vote at the meeting.  The issuance of certificates representing the respective classes of stock and transfers of shares which are affected after the record date will not alter the determination of shareholders entitled to vote at the meeting.  A list of those entitled to vote will be available for inspection ten days prior to the meeting at the office of the Company.

            The meeting location was chosen to allow social distancing.  Masks are strongly encouraged for everyone and required for those who are unvaccinated.  If you are unable or do not want to attend the meeting in person, you are requested to complete and return the proxy available HERE in order to assure sufficient representation at the meeting.  Proxies must be delivered by 5pm on Tuesday, December 7^th via email to gmwc@gorgozawater.com, mailed or hand-delivered to the Gorgoza Mutual Water Company, 7950 Pinebrook Road, Park City, UT 84098 or faxed to 435-649-8126.            

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MANDATORY WATER RESTRICTIONS

            Following guidance from the State of Utah and Summit County, Gorgoza Mutual Water Company is implementing mandatory watering restrictions effective immediately.  Gorgoza’s water resources remain adequate to meet demand, however, in response to Utah’s extreme drought conditions and to prepare for a possible long-term drought cycle, restrictions have become necessary as follows: 

• Even-numbered addresses only water Monday, Wednesday, and Friday.
• Odd-numbered addresses only water Tuesday, Thursday, and Saturday.
• No watering Sunday to allow wells to recharge.

While no more than three days per week is mandatory, Gorgoza strongly urges all shareholders, especially those at higher elevations and on north-facing slopes or heavily shaded lots, to voluntarily commit to watering only two days per week as follows:

• Even-numbered addresses only water Monday and Friday.
• Odd-numbered addresses only water Tuesday and Saturday.

The Ecker Hill Middle School and Homeowner Associations will be contacted directly and placed on watering schedules more specific to their needs and location.  In addition, spring water deliveries to Mount Olympus Water have been reduced by 50%.  (Please note, spring water revenue has funded several infrastructure projects over the years, and Pinebrook uses the same amount of water in one summer day as is delivered to Mount Olympus Water in about four months.)  

All watering must be on the day specified, whether in the early morning or late evening, but not during daylight hours.  Noncompliance with the mandatory watering schedules, excessive usage, or unrepaired leaks may result in the assessment of monetary penalties. 

If you haven’t already done so, please sign up for a free WaterSmart account on Gorgoza’s website or visit www.gorgozawater.watersmart.com to actively monitor your water usage and be alerted of potential water leaks.  It is a valuable tool to help monitor and control your water usage. 

Thank you very much for your cooperation and understanding.

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Drought Report and Notice of Rate Change

The Gorgoza Mutual Water Company has worked hard over the years to develop what we consider the finest privately owned water company in Summit County, consistently providing high quality water at low rates.  We have multiple wells and storage facilities, all of which were located and developed to provide the best possible hedge against the variable precipitation patterns in this, the second-driest state in the nation.  We monitor the depths of water in each of our wells, the amount of water in our storage tanks, and the performance of our several pressure zones on a real-time basis so that we can manage our valuable resources in an efficient and economical manner.

While the Company is fundamentally sound, the current drought is extreme and presents challenges that are unprecedented in our 45-year history. We have been able to meet your needs without interruption, but our system has been stressed.  We have been able to maintain our water deliveries over the years without the need for rationing (with only one exception) and hope to be able to do so going forward even during these dry times.  The Company continues to make upgrades in anticipation of future challenges, and we want to tell you about our plans.  They include encouraging conservation through individual monitoring and rate structure incentives, as well as further investment to develop new capacity.

The first upgrade you will see is the conversion of our metering program from once-monthly readings to one where data will be able in real time.   With the Company’s investment in this system, each home will be able to monitor and adjust water use as the month goes on, if desired.   We expect that this enhancement will result in increased conservation.  It should also allow earlier leak detection and promote more efficient use of your sprinkling systems.  We are excited about these new capabilities and will furnish additional information as they become operational.

An additional project will be to increase our source capacity by drilling a new well.  Our experience in this dry year demonstrates the value of enhancing our water sources.  We have been fortunate to have partnered for more than a decade with the owners of the Woodward resort.  They have allowed the Company to drill and equip two wells on their property.  These wells provide water from Woodward’s separate water rights during the winter months (at Woodward’s expense) and are used exclusively by the Company to supply our system during the summer months.  This beneficial relationship yields hundreds of gallons per minute in additional water from a very favorable aquifer that we would not otherwise be able to access.  We are happy to announce our agreement for the drilling of a third well on the Woodward property this year.  As with the existing wells, the full capacity of the new well will be available to the Company during the summer months.

The Company has been able to maintain the same base assessment rate of $55.00 per month per Class A share for a remarkable 13 years, absorbing increased operating costs, inflationary pressures and, particularly increase electrical costs.  In the meantime, capital projects such as replacement of old water lines and well maintenance have largely been funded from the sale of a small percentage of the Company’s spring water.  While those revenues will continue to be dedicated to capital projects, the metering system upgrade and the new well will require additional capital expenditures which the Company plans to fund with cash, not by increasing debt.

The Company’s Board of Directors has carefully monitored those plans and expenses and has determined that a rate increase is now necessary.  Several rate scenarios were evaluated, and the Board ultimately determined to adopt a rate schedule that would encourage additional conservation measures with minimal financial impact on most water users. Beginning January 1 of this year, the Company’s base water assessment will increase to $60.00 per month for the use of up to 8,000 gallons of water.  Monthly water usage above that amount will be charged at increasingly steep rates to encourage conservation and more equitably allocate our costs of operation.  If you have your account set up on auto-pay basis, please remember to change the base payment amount.

We appreciate the opportunity to serve you.

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Meeting to Review 2020 Water Conservation Plan

The board of directors will hold a virtual public meeting on December 15th at 7pm to review and adopt the 2020 Water Conservation Plan.  Link to the meeting on 12/15/20 https://zoom.us/j/92082901602?pwd=UGxQcWh2bm5XY0F4Zy8va21MTGEwQT09  Meeting ID is 920 8290 1602, passcode 637230.

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Waterline Replacement Buckboard and Stagecoach Drives Summer 2020.

Gorgoza Mutual Water Company will be replacing water lines again this summer as part of our ongoing capital improvement plan. The project is scheduled to start on or about June 15th, with the first phase along Buckboard Drive from the intersection with Pineridge Drive to the intersection with Hitching Post Drive.  The second phase will follow and continue the waterline replacement project started in 2019 from approximately the mid-point of Stagecoach Drive south to the intersection of Stagecoach and Buckboard Drives.  The project will include replacing the water mains and laterals to each home and last through at least September 2020.  For the safety of the crews and efficiency of the project, PLEASE AVOID TRAVEL THROUGH THE CONSTRUCTION ZONES AND USE ALTERNATE ROUTES!  Gorgoza will work diligently to complete the work as quickly as possible.  Homeowners will be notified in advance when water interruptions are necessary.  Your cooperation and understanding will be greatly appreciated!

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Gorgoza Office Building Closed Until Further Notice

In accordance with State recommendations, Gorgoza Mutual Water Company is restricting access to their office building in response to the COVID-19 virus. Be assured that operations are continuing as normal and every precaution is being taken to safeguard your water system and Gorgoza’s staff.  NO PINEBROOK COMMUNITY ASSOCIATION MEETINGS MAY BE HELD AT GORGOZA’S OFFICE UNTIL FURTHER NOTICE.  Please contact your individual Associations regarding alternative meeting locations.

Please make note of the following:
1. To report a water emergency, please call (435) 645-2527 immediately.
2. Payments may be deposited in our Drop Box located just to the east of our parking lot.
3. Questions may be directed to:
a. Email gmwc@gorgozawater.com
b. Phone (435) 649-7948 and follow the menu prompts.

Our primary concern is the safety of your water, which includes the safety of our staff. Thank you for your understanding and cooperation.

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