The Sheep Creek Water Company held its annual shareholders’ meeting on Saturday, May 3, 2025, at 10:00 a.m. at the Pinon Mesa Middle School Auditorium. Approximately 50 shareholders attended in person, with additional votes cast by proxy. The meeting included financial and operational updates, public comments, and votes on board elections and a proposed construction project.
President Andy Zody called the meeting to order. Director Kellie Williams led the Pledge of Allegiance, and Director Eric York delivered the invocation. The current Board of Directors—Andy Zody, Luanne Uhl, David Nilsen, Eric York, and Kellie Williams—were introduced, along with legal counsel Ernie Riffenberg, company staff, and former board members in attendance.
During the public comment period, shareholder Peter Barnes expressed opposition to the idea of selling the water company, emphasizing community ownership. Laura Stienmann addressed the board regarding a six-acre parcel she and her husband had offered for well development. She stated they would consider selling the property if delays continued. Zody responded by explaining that the Stienmann property had initially been considered but was ruled out due to changing restrictions related to recent Joshua tree endangered species status.
In the financial report, Zody said the company ended 2024 with a net loss of about $250,787. He explained that most of that loss came from the cost of drilling a new well, which was paid for using a loan. While showing a loss might seem negative, it actually reduced the company’s tax bill to around $625, which was paid in April. Shareholders voted to approve the financial report included in their meeting packets.
Zody also shared some key financial figures that reflect the company’s overall health. For every dollar the company owes in short-term obligations, it has $23.28 in current assets—such as cash, accounts receivable, or anything that can be easily turned into cash. This is known as the current ratio. The quick ratio, which looks only at the company’s most liquid assets (like cash and equivalents), stands at $13 to every $1 owed. Finally, the company has $3.04 in total assets for every $1 of debt, showing that it owns far more than it owes overall. These numbers indicate that the company remains in strong financial shape and can comfortably meet its expenses, even though it reported a loss for the year.
Zody also reported a recent theft involving a company trailer containing $60,000 in equipment. While the trailer was recovered, the contents were lost. In response, Director David Nilsen proposed the construction of a 50-by-80-foot steel building to house and protect company tools and materials. The proposal also includes converting an existing garage, attached to the current offices, into a community meeting space. The board emphasized that while the total cost of the project is currently unknown, they needed shareholder approval during the annual meeting to avoid delaying the project for another year. Nilsen estimated the building might be completed for under $150,000, though Zody later stated it may cost closer to $400,000. Sheep Creek must have plans drawn up and submitted to the county to receive a final cost estimate, and that initial job requirement/permitting phase is expected to cost between $15,000 and $20,000. “We want to move fast on this,” Zody said, referencing the timeline.
The building will be paid for using Tier 3 revenues, which will not require any increase in water rates or new assessments for shareholders. Tier 3 is the highest billing level, applied to customers who use significantly more water than what is covered by their share allotment.
The board and the building project were subject to shareholder votes conducted by ballot. The existing Board of Directors—Zody, Uhl, Nilsen, York, and Williams—were re-elected with 3,569 votes each. Peter Barnes received 410 write-in votes. The building project was approved with 3,508 votes in favor and 771 opposed.
Insurance coverage for the stolen equipment was discussed. Nilsen confirmed that a claim had been filed and said the company is awaiting a response. Tapia noted concerns about the potential for increased premiums following a payout. Tapia also raised concerns about scrap yards not tracking the identities of individuals recycling metals, which may have included the missing equipment.
Zody concluded the meeting by thanking shareholders for their participation and encouraged continued engagement in monthly board meetings. The re-election of the board and approval of the building proposal were recorded which closed out the 2025 annual meeting.
