Season 3 Episode 13: Navigating Arizona's Water Challenges and Opportunities with EPCOR - podcast episode cover

Season 3 Episode 13: Navigating Arizona's Water Challenges and Opportunities with EPCOR

Nov 13, 202429 minSeason 3Ep. 13
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Episode description

In the next episode of Let's Talk Business Phoenix, Shawn Bradford, Senior Vice President of Regulated US Water at EPCOR, discusses various aspects of EPCOR's operations, including their mission and impact in Arizona. Hear about the unique opportunities and challenges of water infrastructure in Arizona, the importance of water reuse and recycling, and key legislative proposals. Shawn also outlines EPCOR's future priorities, relationships with municipalities, and goals for community involvement and growth. Don’t miss this insightful episode to stay updated on the future of water infrastructure in Arizona!

Transcript

Todd Sanders (Host):

Welcome back to the podcast. We're excited to have you here today. We have a very special guest, Shawn Bradford, who's the Senior Vice President for Regulated US Water for EPCOR is here today. Shawn, thanks for joining us.

Shawn Bradford (Guest):

Thank you for the opportunity. Really happy to be here.

Todd Sanders (Host):

Appreciate that. Well, obviously you're well-known in the community, but for those who don't necessarily know you, tell us a little bit about Shawn and maybe something we wouldn't know that's not on your bio.

Shawn Bradford (Guest):

Yeah, so I've been in the utility space for my entire career. I started actually on the East Coast, grew up outside of Boston, Massachusetts and started out in the field as a utility worker. And went back to school at night three times, raised a family in the middle of all that, and moved around in the country and made my way to Arizona in 2006. And I've been here ever since.

Todd Sanders (Host):

So kind of right before the great recession you got here.

Shawn Bradford (Guest):

Got to see the boom and the bust.

Todd Sanders (Host):

Yeah, you did.

Shawn Bradford (Guest):

Yeah. Interesting times back then.

Todd Sanders (Host):

Okay. And something about you that we wouldn't necessarily know?

Shawn Bradford (Guest):

So I relocated to Goodyear, Arizona and I had an opportunity to join Fighter Country Partnership. An amazing organization, really support the mission on the base. And as an honorary commander, I got an opportunity to fly in an F-16, and they actually let me fly the jet for about 20 minutes.

Todd Sanders (Host):

Really?

Shawn Bradford (Guest):

Yeah. Very cool experience.

Todd Sanders (Host):

And did you use the airsick bag?

Shawn Bradford (Guest):

I got close, but no, I did not.

Todd Sanders (Host):

Awesome.

Shawn Bradford (Guest):

Yes, but very close.

Todd Sanders (Host):

Yeah, a lot of blue sky, a lot of brown earth and kind of mixing in between.

Shawn Bradford (Guest):

Amazing. I got to pull 5Gs in a turn.

Todd Sanders (Host):

Really? Did you stay awake?

Shawn Bradford (Guest):

I got very close to not staying awake to going to sleep. He told me, "Don't pull back if you don't want to pass out." I said, "So I won't pull back that hard." Really good instructions.

Todd Sanders (Host):

Well, great. They do great work and certainly critical for us here in Arizona.

Shawn Bradford (Guest):

Amazing. Yes. Amazing organization.

Todd Sanders (Host):

Just like water. So EPCOR I think is well-known. People know the name but maybe don't necessarily understand what the mission is. Tell us a little bit about the company.

Shawn Bradford (Guest):

Yeah, so we're a private utility. We're actually owned by the city of Edmonton, so in Alberta, Canada. Yes. So back in the mid-90s, they made a decision to privatize their water and power utility with an edict of growing. So we're an independently run organization. We have an independent board of directors, and we've grown our utility now for the past 25, 30 years across four provinces in Canada.

And we moved into the United States in 2011 and we acquired a utility in Fountain Hills and then have grown across the Southwestern US since then. So now we're in Arizona, New Mexico, and the state of Texas.

Todd Sanders (Host):

And in Arizona, that footprint has grown significantly. I think you're probably busting at the seams in your current offices looking to move, I hear. What's the story there?

Shawn Bradford (Guest):

So we've seen organic growth in the double digits for the better part of a decade. Just recently added our 100,000th new connection in the West Valley, so 100,000 homes have been built in the West Valley in just the past 12 years. So, tremendous growth. We've grown from about 170 employees to over 600. And to your point, we're actually moving our US headquarters to Glendale, Arizona in the fall.

Todd Sanders (Host):

That's excellent news. So clearly, there's an interesting story here in terms of growth. But the company, most people are familiar with municipal water providers. Talk to us a little bit about the difference.

Shawn Bradford (Guest):

So the private water space is a bit unique. We're nationally about 15 to 20% of the market. In the state of Arizona, actually one in four folks that live in the state get water from a private water utility like EPCOR. We're by far the largest in the state of Arizona, and we're seeing our footprint continue to grow.

Todd Sanders (Host):

So when we talk about service territory, what would we be thinking about?

Shawn Bradford (Guest):

So Metro Phoenix, we are in Buckeye, Peoria, Surprise, Goodyear. We're in parts of Glendale, Phoenix, Scottsdale, Paradise Valley, Fountain Hills. And our most recent acquisition, we purchased the troubled utility in San Tan, Johnson Utilities. Purchased that about three years ago, and we've been down there running that utility and now owning it for the better part of five years.

Todd Sanders (Host):

And certainly we'll talk about this a little bit more later, but certainly the Rio Verde as well.

Shawn Bradford (Guest):

Yes, and Rio Verde Foothills. That was the one that made international news, a unique story around Rio Verde Foothills and how we ended up getting there.

Todd Sanders (Host):

And a fascinating story, which we'll get back to here in a minute. So clearly a growth engine, I think a really cool Arizona success story in terms of where you started, where you are today. Talk to us a little bit about your role.

Shawn Bradford (Guest):

So I lead the regulated business unit. So for us, that's utilities that are regulated in Arizona by the Arizona Corporation Commission and in New Mexico by the PRC, the Public Regulatory Commission. That's the majority of our business in the Southwestern United States. The regulated part of our business serves close to a million people across 28 communities and three states. So, pretty large operational footprint.

And I lead the business unit on a day-to-day basis. And I make sure that we're positioned not only to provide service to customers on a day-in and day-out basis but that we're looking to the future, making sure that as the state continues to grow, EPCOR has opportunity to grow.

Todd Sanders (Host):

What are some of your biggest challenges day to day?

Shawn Bradford (Guest):

Right now it's people, it's resources. The economy in Arizona is booming. The economy in Texas is booming and we're seeing some tension there, getting a quality staff, making sure that the people that we have we can retain and then going out and finding those qualified operators to run our systems.

Todd Sanders (Host):

Obviously, you're overseeing a lot of folks, have a lot of responsibility. I think people are always interested that that I talk to listen to the podcast. Tell us a little bit about your leadership style.

Shawn Bradford (Guest):

For me, it's about empowering our people to make decisions and we really try to push that down into the field. We're out touching our customers on a day-in and day-out basis, and I want to make sure that the staff that are out in the field that are working with our customers have the abilities to make the decisions that are necessary so that our customers can go back and feel that they were satisfied.

We have an internal metric where we want to make sure that we have first call resolution. So if you're a customer of EPCORs and you call and you have an issue, we want to make sure that we resolve that issue on the first time you reach out to us. So if we have to roll a truck, we want to make sure that that truck fixes the issue, addresses your concerns, answers your questions. Or if you just need to speak to a customer care agent, we want to make sure that they provide you the answers that you need so that your questions are resolved and you go home satisfied.

Todd Sanders (Host):

Well, that's huge. You have obviously a lot of responsibility and great when things are going well. How do you handle mistakes?

Shawn Bradford (Guest):

I think you're trying to learn from them. And my big thing is you don't want to make the same mistake twice. And I think for the most part, we do a pretty good job at that. When you're talking about public water, it's the health of the community. So you don't have an opportunity to be right most of the time. You have to be right all of the time. So we really focus on safety and we make sure that we focus on water quality to the customer.

Todd Sanders (Host):

Sounds like a really great culture.

Shawn Bradford (Guest):

Yeah, it's a good organization to work for.

Todd Sanders (Host):

So we mentioned the New York Times and the fact that there's I think a lot of misunderstanding. And sometimes, you might see a headline that's obviously misleading that you have to dig in for the information. Give us a sense for Arizona's water situation. Where do we stand?

Shawn Bradford (Guest):

So first off, water scarcity isn't anything new for the state of Arizona. We've done a tremendous job growing our state for the past 70 plus years. And a statistic I like to throw out that kind of fascinates some folks is that we're using the same amount of water today that we did in the 1950s, and that's through water conservation and water reuse and being good stewards of the environment.

So we're used to dealing with a scarce water supply. We live in the desert. You just have to go outside to recognize that you're in a desert environment. And I think we've done a really good job positioning the state for growth.

We've got some upcoming challenges though. We've got some additional pressures on the Colorado River and we're going to, I think, expect to see additional call-downs in terms of the water that will be allocated to Arizona. And that's going to create some challenges for us.

But I think we have tremendous opportunity. There is some areas of the state that we haven't tapped into those water resources, and I think there's opportunities to continue to push infrastructure and new technologies into the ground to generate more water and stretch the water that we have as far as we can.

Todd Sanders (Host):

Well, I'm sure you have on your team, people who can forecast weather, forecast way into the future. And you're a hydrologist, clearly the Colorado is a big focus for us. What are they telling you for the next year? What should we be expecting?

Shawn Bradford (Guest):

I think for the next year, the level of cuts we've seen in the last two years, we expect to be maintained in place through 2025. So we're in that tier one level shortage and we expect to see that continue into the near future. I think longer term, we expect to see additional cuts on the Colorado River.

I think ADWR is doing a good job getting all of our statewide stakeholders to a table. We're a part of the Governor's Water Council. There's 46 members that are really focused on what are the next set of water regulations we need to put into place so that the state of Arizona can continue to grow. And we're laser focused on that, and that's about using the limited resources we have as best as we can, but it's also planning for the future. We need to be looking at things like direct potable reuse or desalination. Those are opportunities for us.

We don't necessarily need them today or even tomorrow, but in the next 10 or 20 years, those are going to be water resources that I think are going to need to be brought to the table so that Arizona can reach its full potential.

Todd Sanders (Host):

And so obviously, you're a for-profit organization. Water is your livelihood. Sounds like you're, as a company, still bullish on Arizona?

Shawn Bradford (Guest):

Absolutely, yeah. We think it's a great place to have a business. We think it's a great place for people to relocate their businesses too. And we think that we have the water portfolio certainly in our service territory to meet our future growth demands.

Todd Sanders (Host):

So what do you... I'm sure you have casual conversations. You travel around the country and people say, "Well, I wouldn't want to move to Arizona because they seem to have a lack of water." What do you tell people?

Shawn Bradford (Guest):

Well, first off, you have to I think get into the details on a little bit, what does that exactly mean? There's water scarcity. There's no way of getting around that. I think we need to set some additional groundwater rules, so in terms of how we pump the groundwater that we do have in our aquifers and manage those a bit more prudently. I think we have to maximize the amount of water that we do have in the Colorado River. I can tell you when we reach out to smaller communities across the country, water loss is a huge issue. I mentioned Johnson Utilities, a fairly large utility, it had over 28% water loss when we acquired it.

Todd Sanders (Host):

Define that a little bit for people who might...

Shawn Bradford (Guest):

So for every gallon of water we pumped out of the ground, we lost about 25% of that water on the way to the customer's house.

Todd Sanders (Host):

Through leaks and systems?

Shawn Bradford (Guest):

Through leaks and just failing infrastructure. And we actually recently identified a leak that we estimate to be one million gallons a day. And the operational data we have shows that that has been leaking at that rate for 10 plus years under the prior ownership.

And we used artificial intelligence actually. We worked with Microsoft on analyzing data to determine where in this water line this leak was occurring, and we were able to go out very quickly and very cheaply fix it and essentially generate a new source of supply for our customers.

Todd Sanders (Host):

Yeah, absolutely didn't know it was there. And I'm assuming at some point, that water will be recoverable in the aquifer.

Shawn Bradford (Guest):

Oh, absolutely, yes. So the water that's leaked into the ground, we will be able to pull back out. Now that that's not happening, we've got an additional one million gallons of capacity for future growth.

Todd Sanders (Host):

Absolutely. So people think about the water situation a lot differently. Sometimes, they think it has to do with more supply, sometimes it's conservation. How do Arizonans do in terms of conservation? What grade would you give us as a state in terms of a people that think about conservation and act on it?

Shawn Bradford (Guest):

I can tell you that our per customer or per capita water consumption continues to drop. So I think we're doing a really, really good job. I'd say B-plus, so you can always be better. I think when you work with developers and landowners, they're doing a really good job on smart development, increasing density in areas where it makes sense, making sure that we're using the right type of landscaping materials on the outside so that you're minimizing your outdoor water usage. And then all the high efficiency appliances and fixtures that we see that manufacturers are now bringing to market are stretching those water resources even further.

Todd Sanders (Host):

So that low water use dishwasher makes a difference?

Shawn Bradford (Guest):

A hundred percent. The laundry washing machine is a huge improvement. The front load washing machines use a fraction about a third of water that a traditional washing machine would use.

Todd Sanders (Host):

So if you could tell us the one thing that could make a difference for all of this, that one thing we should be thinking about. What is that one thing?

Shawn Bradford (Guest):

Outdoor water usage. It's 60 to 70% of the water that's delivered to your home goes outside. So it's really a matter of making sure that you're... If you want grass, you can have grass. I'm not an anti-grass guy, but if you want grass, you need to know how to water it. You need to know to water it right, and you need to be able to monitor for leaks.

Irrigation systems are prone to leakage, and there's some simple ways to read your water meter on your own. This technology we're rolling out in San Tan that's going to actually alert customers when their water consumption is high, we'll actually be able to send you a push text message to say, "Todd, we've detected water leakage in your home for 24 hours. You may have a problem with your indoor or outdoor fixture," and that would allow you as a homeowner to go out and fix that problem before you waste a bunch of water.

Todd Sanders (Host):

Well, and you get the bill because certainly that would be a significant...

Shawn Bradford (Guest):

Huge impact.

Todd Sanders (Host):

Number.

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

So yeah, so don't necessarily have to get rid of your grass or think about it. But if you do, make sure that you're doing it in a way that's going to minimize the loss...

Shawn Bradford (Guest):

Correct.

Todd Sanders (Host):

Along the way.

Shawn Bradford (Guest):

And all of the landscaping plants and materials that you have around your yard, make sure that you've got the right ones that are really acclimated to a desert lifestyle and that you're watering those correctly as well.

And you should be adjusting your outdoor irrigation timer two to three times a year based on the season. So in the summer, obviously you're going to water it a little bit more, but we're getting close to now where you can start to wind that back and then you're going to make another adjustment January, February when it gets really cold for a few months. And that's going to save you a tremendous amount of water and ultimately help the environment.

Todd Sanders (Host):

Makes sense. Kind of like our pools in the winter, they don't go down.

Shawn Bradford (Guest):

Correct.

Todd Sanders (Host):

Summer, they evaporate.

Shawn Bradford (Guest):

It does evaporate, yes, exactly.

Todd Sanders (Host):

Okay. Well, you mentioned infrastructure and the importance of modernization and the technology associated with it. What's out there on the horizon that you think we really need to focus on?

Shawn Bradford (Guest):

So first off, there's... I don't know how many thousands of wastewater treatment plants across the state of Arizona. Those wastewater treatment plants really need to be focused on cleaning the wastewater that they receive to the highest standards possible and then either reusing or recharging that water back into the aquifer.

So EPCOR as an internal target, it's actually in our sustainability report for the company where we target 93% of the wastewater we receive, we directly reuse it or recharge it into the ground and we're over 95%. It's what our actual performance is. So it's taking that water that comes from a customer, you send it to their tap, they use it, they send you back wastewater. It's making sure that all of that wastewater goes to a beneficial reuse, either recharge it into the aquifer and recover it later or send it to a customer that they can use that water instead of pumping additional groundwater or surface water resources to say water grass or grow agricultural crops, things of that nature.

Todd Sanders (Host):

Well, and I think we've all heard about the idea that you could have wastewater become drinking water. And certainly, it's not new. The Space Station does it. I know in Israel it's a normal thing, but I think here it's maybe just a cultural issue.

Shawn Bradford (Guest):

The reality is we've been doing it for 20 plus years, so we have what we call indirect potable reuse. So we take our wastewater that's been treated, we inject it back into the ground and then we pull it back out and use it as drinking water. So it's indirectly being used by customers. You can very easily make it direct potable reuse and go right from the back of the wastewater treatment plant, run it through some advanced purification systems, and then deliver it to customers' taps.

And we're actually partnered with the city of Phoenix. They're looking at a very large DPR facility at their 91st Avenue Wastewater Treatment Plant. And we're one of the partners, and we're actually going forward with a feasibility study to look at what are the costs. The technology is the easy part. It's the messaging to make sure that customers understand what it is that they'll be consuming, and it's really cost. It's going to really be driven by how expensive will that water be.

Todd Sanders (Host):

So beyond the sort of cultural side of it, let's talk about the science. So we obviously have wastewater coming in. What's coming out, tell us what does that look like?

Shawn Bradford (Guest):

So what's coming out of like, say, the 91st Avenue Wastewater Treatment Plant is A-plus class effluent. So it's graded very similar to school. You can have a C-class plant, a B-class plant. A-plus class is the highest quality effluent that a wastewater treatment plant can produce. You can directly use that on athletic fields. So if you had a baseball stadium or a football stadium, you can put that right out there on the grass. It's not going to get anyone sick. There's no bacteria. We test for bacteria on a daily basis.

To take it the next step, there's additional filtration. You want to make sure that any microbes or any other bacteria has been fully removed from that water supply. So you run it through some advanced filtration systems and then at that point, it's considered potable and you can drink it without any issues.

Todd Sanders (Host):

And when we get to scale, which I think we will, what is going to be the impact for Arizona to have something like that in play?

Shawn Bradford (Guest):

So the 91st Avenue plant, I was just on a panel last week with the city of Phoenix, I think they mentioned that at full build-out that could deliver 90 million gallons of a new water supply into Metro Phoenix.

And the thought is the city of Phoenix would reuse all of the water that's generated from that facility. And then a partner like EPCOR would get an exchange where we would send them wastewater. They would take the wastewater that's ours, treat it, clean it, and then directly reuse it. And then as an offset, we would get an allocation of, say, CAP water that we could then use and run it through our surface water treatment plants and deliver that new resource to our customers.

Todd Sanders (Host):

So it's symbiotic relationship and-

Shawn Bradford (Guest):

100%.

Todd Sanders (Host):

...beyond just that one plant as we look to adopt this across the state. This could really take a significant bite out of the "shortage".

Shawn Bradford (Guest):

A hundred percent. A hundred percent. I mean, desal is always what we call the moonshot, or there's been talk about moving water from the Mississippi floodplain all the way over to the Southwestern United States. That's a long putt. That's a lot of effort.

Todd Sanders (Host):

That's a long way.

Shawn Bradford (Guest):

We don't have any oceanfront property in the state of Arizona, so you're talking about a desal plant in Mexico. And that really is going to involve two countries or the state of California and all the environmental requirements there. So I think things like direct potable reuse is the next logical step before you look at the larger moonshot type desalination projects.

Todd Sanders (Host):

Excellent. Well, and it's something that's certainly in the horizon, and that's another arrow in the quiver for us-

Shawn Bradford (Guest):

A hundred percent.

Todd Sanders (Host):

...here in Arizona. Obviously, another part of this is policy. You mentioned the allocation from the Colorado River and where we are in terms of the compacts. But also here in Arizona, there's been some legislation. I believe you were involved last session and some legislation. Want to speak to us a little bit about that?

Shawn Bradford (Guest):

Yeah. So we first off, we appreciate the effort of Governor Hobbs and the legislature and really moving water to the front of the line. There was I think 70 plus bills that started out at the beginning of session that related around water. We were happy to see a big one for us was the Harquahala legislation.

So in 1991, there was some regulation that was passed that really was put in place to protect rural Arizona from large water exportation. They were worried about companies coming in, public-private entities coming in and pumping all this groundwater that's needed to provide rural service to customers and moving that into the large metropolitan areas. But the legislation set aside some basins, and one of them was the Harquahala basin that does allow for water importation into the valley. And the legislation really leveled the playing field and it allowed private entities like EPCOR to have access to that water.

Our argument has always been our customers are residents in Surprise or Peoria or Goodyear or Buckeye. They're not private customers that don't provide benefit to the greater community. They're members of the cities and towns that we provide service to. They're citizens. So not having EPCOR have access to water like that could generate higher costs for our portion of, say, Surprise customers, where Surprise could access that water.

So now that that legislation's passed, that's going to open up I think the first large basin of water that can be imported into the valley. And that's the next, I think, big tranche of water that's going to come in. And then as that continues to develop, also look at McMullen and Butler and move those water supplies into the state.

It's new for us in Arizona. If you look at Texas, they've been doing that for the better part of two decades. And they're very comfortable with inter-basin transfers, having the necessary controls in place so that the rural customers are still protected. You don't over-allocate. But that's something that we do across the country. It's new for us here in Arizona. So it's taken some time taking some legislative changes to get there. But I think this is a new bucket of water that really opens up development really on the west side of the valley, especially Buckeye could really benefit from Harquahala water.

Todd Sanders (Host):

Sure. And there's so much opportunity in the Buckeye area for new development as well.

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

Obviously, a policy is a job that's never done.

Shawn Bradford (Guest):

No.

Todd Sanders (Host):

There's always more. Anything in the future you're thinking about in terms of a policy, some sort of policy move for Arizona?

Shawn Bradford (Guest):

So, Ag to urban was a big discussion point in the last legislative session. Ultimately, a bill got to the governor's desk and she made the decision to veto it. I think some additional work needs to be done in Pinal County as well as in Maricopa County on the impact that this conversion of having agricultural land be extinguished and having urban development, city development occur on top of it. And we need to make sure that we do it in a way that's reasonable so that as the agricultural usage is converted, you're doing it in a way that there's a net benefit to the aquifer.

Todd Sanders (Host):

So, that it's done in an appropriate way?

Shawn Bradford (Guest):

Correct. Correct. And I think the governor sent some clear policy signals that if we pull a gallon of water out, we want to make sure that we have an opportunity to put some of that water back in so that there's a net benefit to the aquifer, which is the right thing to do.

Todd Sanders (Host):

Absolutely. And you mentioned the city of Phoenix, obviously there's a lot of municipalities within your area, your service area. How do you work with municipalities? Or you mentioned CAP, Central Arizona Project, or friends at SRP in doing the work that you do here in Arizona?

Shawn Bradford (Guest):

So the first thing for us is we have to provide safe, reliable service to our customers. That's kind of our table stakes. So the first thing we need to do is take care of our customers, which are residents of all these communities. Once we're able to accomplish that, and I think we have a pretty dedicated track record that shows that we're really good at providing that safe, reliable service, then it's about getting out into the community, finding areas of need.

We spent a lot of time in San Tan, that's our most recent acquisition, making sure that that community is not only provided service from a wastewater perspective but are there organizations and agencies that align with our values but giving back to the community. And making sure that there's opportunities for EPCOR not only as a company but we encourage our employees with a thing called Helping Hand grants, where if an employee dedicates 30 hours of their time, we in turn give that employee a check to support their organization.

Todd Sanders (Host):

Well, and I think that shows that you're involved in more than just a service territory, but also in our community.

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

I want to get your sense for where you expect EPCOR to be in the next 5 to 10 years. What's that look like?

Shawn Bradford (Guest):

I think you're going to see us continue to grow across the Southwestern United States. We think that the water market is a great market to be in. We think we have some unique expertise, especially around troubled utilities. We think that we have a secret sauce where we can go into a troubled utility, big or small, make all the necessary improvements in a pretty quick timeline.

Johnson Utilities is a great example. We've put close to $250 million of investment in the ground in three years. So we can move very quickly, investing large quantities of money to improve quality of service and really the quality of life of those customers. And we think that's attractive as water scarcity continues to be an issue, as some utilities fall behind and don't make the necessary investments. We think EPCOR is uniquely positioned to go in and help those communities, help those utilities.

And then all the organic growth that we see in the valley, I think the West Valley is just halfway there. I don't even know if it's halfway. There's a lot of upward mobility and a lot of upward growth that I think we're going to see across the West Valley. And EPCOR wants to be positioned to be able to serve all of that growth.

Todd Sanders (Host):

Well, it sounds like a major player too on the conservation side.

Shawn Bradford (Guest):

Hundred percent. Hundred percent. And that's a pillar of safety is a huge component for us but also water conservation, whether it's direct water reuse, water leakage. We're really happy to report that the majority of our systems that we've owned and operated for an extended period of time have water loss less than 10%, which is considered world-class.

Todd Sanders (Host):

Yeah. So what's the industry standard there?

Shawn Bradford (Guest):

You want to be under 10. Most of our systems are right around five. We've taken Rio Verde, excuse me, not Rio Verde, Johnson Utilities. It's 28 when we'd acquired it. It's sitting at 12 as of last month. So again, more work to be done. It's still at 12. I want to get it to 6 or 7%, so reduce it by another 50% where it's already at. But going from 28 to 12 in three years is pretty impressive.

Todd Sanders (Host):

Absolutely. Well, we'll spend a few weeks in the Netherlands this summer, and it's interesting to go to a place of, we both have water challenges. They have the opposite.

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

They have a little too much, but it's good to know that we have you and EPCOR here in Arizona that's a part of a solution in terms of making sure there's an adequate water supply and certainly conservation that will serve us well...

Shawn Bradford (Guest):

A hundred percent.

Todd Sanders (Host):

For decades to come.

Shawn Bradford (Guest):

Yes. Agreed.

Todd Sanders (Host):

Well, we're going to finish off with a quick lightning round if you're okay with that.

Shawn Bradford (Guest):

Absolutely.

Todd Sanders (Host):

I thought it was good to know you in a different way. So what was your first job?

Shawn Bradford (Guest):

I worked at an aquarium.

Todd Sanders (Host):

At aquarium?

Shawn Bradford (Guest):

Yes. A fish aquarium. So I was around water-

Todd Sanders (Host):

In Boston?

Shawn Bradford (Guest):

In Boston, in Framingham, Massachusetts.

Todd Sanders (Host):

What did you do?

Shawn Bradford (Guest):

I cleaned the fish tanks. So I'm the low person on the totem pole. I was 14 years old and I was the guy that went in and cleaned up all the fish tanks. So I was around water.

Todd Sanders (Host):

Ironically in water?

Shawn Bradford (Guest):

Yes. Salt and fresh water.

Todd Sanders (Host):

That's where you got your gills?

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

Okay. What'd you learn?

Shawn Bradford (Guest):

You got to take care of the customer and you got to do good maintenance. If you don't stay on top of maintenance, it's going to come back to bite you. And aquariums are a great example of that.

Todd Sanders (Host):

That'd be a good place to learn the lessons of maintenance. First concert?

Shawn Bradford (Guest):

AC/DC.

Todd Sanders (Host):

Excellent.

Shawn Bradford (Guest):

Yes. Back in Black Tour, 1982-ish, I think.

Todd Sanders (Host):

I highly respect that. Very good. First car?

Shawn Bradford (Guest):

A 1977 Malibu Classic station wagon.

Todd Sanders (Host):

Very specific. I like that.

Shawn Bradford (Guest):

My parents had a station wagon. That's what we drove way pre-mini van days. And that was the first car that my dad, it was a hand-me-down. He gave it to me. But it was a Malibu Classic station wagon, like an orange colored. It was a horrifically-

Todd Sanders (Host):

That's perfect.

Shawn Bradford (Guest):

Yeah.

Todd Sanders (Host):

Well, and of course little did he know that that's where you're going to stuff like a hundred of your best friends.

Shawn Bradford (Guest):

I had lots of kids. There was no seatbelt laws back in the day. So we had lots of kids going to concerts in the back of that station wagon, a hundred percent.

Todd Sanders (Host):

I can see that. Very good. I like that. What's your hidden talent to wrap this up?

Shawn Bradford (Guest):

Pretty good cook.

Todd Sanders (Host):

Yeah?

Shawn Bradford (Guest):

Yeah, pretty good cook.

Todd Sanders (Host):

What's your specialty?

Shawn Bradford (Guest):

I make a really good meatball, veal, pork, and beef. And I love to sous vide. I'm a sous vide now on steak. I really like cooking steak.

Todd Sanders (Host):

So you mentioned the three meats. What's the secret? We won't tell anybody.

Shawn Bradford (Guest):

It's two pounds of beef, a pound of pork and a pound of veal. And it just makes the meat a little bit more tender, a little bit more tasty with the veal. And then it's a bunch of herbs in which we won't talk about. That's the secret. That's the secret part. But yeah, that's one of my specialties. My wife won't eat a meatball out anywhere.

Todd Sanders (Host):

Wow. Okay. So you've definitely reached the pinnacle?

Shawn Bradford (Guest):

If she's happy on that.

Todd Sanders (Host):

That's right.

Shawn Bradford (Guest):

A hundred percent.

Todd Sanders (Host):

There you go. Talk about it. Happy customer, right?

Shawn Bradford (Guest):

Yes.

Todd Sanders (Host):

Very good. Well, thank you for spending this time with us. Thanks for all the work you're doing in the community, and we'll look forward to circling back with you soon as more information comes to light in terms of where we are and where we're headed on.

Shawn Bradford (Guest):

Appreciate the opportunity and really, thanks, Chamber, for everything you guys do. You do a phenomenal job.

Todd Sanders (Host):

Thank you. Appreciate it.

Shawn Bradford (Guest):

Thank you.

 

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