Member News

Jeffrey R. Hines Named President of The York Water Company

Jeffrey R. Hines was named president and chief executive officer of The York Water Company effective March 1, 2008. Mr. Hines previously served the company as corporate secretary, chief operating officer, vice president of engineering and engineering manager.

Mr. Hines, 46, was selected as the successor to Jeffrey S. Osman, 65, who has been President/CEO since 2003. Mr. Osman will continue to serve the company as a director.

Mr. Hines has been with York Water for 18 years and has also had 17 years of service with the U.S. Army Corps of Engineers. He received a degree in civil engineering from Bucknell University and a master’s in business administration from York College of Pennsylvania. He is a registered Professional Engineer in Pennsylvania and Maryland and a licensed Waterworks and Wastewater Operator in Pennsylvania.

Mr. Hines is a past chairman of both the Pennsylvania Chapter of the National Association of Water Companies and the Pennsylvania Section of the American Water Works Association.

Water Utility Valuation

NAWC Associate Member David Hayward, of Hayward Consulting Group, had his article, Water Utility Valuation: Beyond the Dartboard Approach published in the spring and summer 2006 issues of the prestigious Business Appraisal Practice journal.

The full article, which went through an extensive peer-review process by the Institute of Business Appraisers, Inc., is reproduced and included in his Web site: www.Haywardconsultinggroup.com. Excerpts from the article include: “Valuing water utilities, a truly complex task today, requires a detailed computer model to capture all appropriate relevant variables.” Such a computer model, “FinMod: A Valuation Model for Water Utilities” is available through NAWC. Included in Hayward’s Web site is a full description of FinMod including a summary of its benefits and value. See www.NAWC.org/publications. (Contact him regarding customizing the model for a specific water utility.) His workbook: Valuing a Water Utility is also available through NAWC.

The article also stated: “Intelligent water utility valuation discussion minus such a formal model is nearly impossible. Missing or overlooking any single issue (e.g., the amount of investment necessary to correct an arsenic problem) could be very costly for a potential purchaser. The list of due diligence issues is both long and complex. In the context of a water utility valuation assignment, one client finally concluded that there were: ‘…no reliable shortcuts…’ and ‘…if we don’t get an expert valuation, then we are pretty much guessing [about the] purchase...’ "

Finally, the article states: “Because of some water utilities’ sizes, clients requesting valuation studies can save substantial sums of money by engaging valuation analysts to prepare thorough reports. Even smaller water utilities with book assets in the $5 million range or less can experience significant gain or avoid potentially large losses through a limited, and possibly qualified, valuation report. A properly prepared and thoroughly researched valuation study can keep a client out of both the poorhouse and the courthouse. The major savings versus the cost of being wrong usually justifies both time and expense necessary to conduct such.”

Kentucky American Water Names New Vice President of Operations

Kentucky American Water announced that Keith Cartier has been selected for the position of vice president of operations. Cartier most recently served as director of business performance for American Water's Southeast Region. In his new role, Cartier will oversee Kentucky's water quality, field services, production and maintenance operations.

“Keith will be a valuable asset to the Kentucky American Water team and brings lots of energy and strategic focus to the business,” said Kentucky American Water President Nick Rowe. “I'm pleased that he has joined our local team and look forward to the contributions he will make within the company and in the community.”

Before joining American Water in 2003, Cartier provided management consulting services in strategy, process improvement and benchmarking to a number of large firms in the United States and Canada. He also worked for Duquesne Light Co., where he focused on planning, strategy and operational performance improvement.

A native of Pittsburgh, Cartier is a graduate of the University of Pittsburgh, where he earned a Bachelor of Science degree in civil engineering, as well as a master's degree in business administration.

Southwest Completes $150 Million Expanded Credit Facility

Southwest Water Company announced the completion of a new $150 million credit facility with a syndicate of nine banks led by Bank of America. The new five-year credit facility expires in 2013 and replaces the existing $100 million facility that was due to expire in 2010. Southwest Water expects to use the credit facility for general corporate purposes, including acquisitions.

"This new credit facility supports our plans for continued growth, lowers our borrowing costs and provides additional capital for potential acquisitions," said Mark Swatek, Southwest Water chief executive officer and chairman. "We are pleased that we were able to establish relationships with several new commercial banks while maintaining close ties with our existing bank partners."