Santa Cruz County grants water utility franchise to Cactus State Utility

Manuel Ruiz, Chairman / District 1
Manuel Ruiz, Chairman / District 1
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Cactus State Utility Operating Company, LLC, an Arizona corporation, has been granted a franchise by the Santa Cruz County Board of Supervisors to operate and maintain water utility lines in certain unincorporated areas of the county. The company acquired the assets of Santa Cruz Water Company after approval from the Arizona Corporation Commission on August 25, 2023. The transaction was finalized on November 16, 2023.

The franchise allows Cactus State Utility Operating Company, LLC to use public streets, highways, roads, and alleys within specific property sections for constructing and maintaining water utility infrastructure. This agreement is valid for twenty-five years starting April 15, 2025.

The ordinance outlines several conditions for the franchise holder. “The franchise herein granted is made subject to the right of the Board of Supervisors at any time to impose such reasonable restrictions and limitations as to the use of said streets, roads, highways and alleys as may be deemed best for he public safety and welfare.” It also states that all expenses related to alterations or damages resulting from infrastructure work will be borne by Cactus State Utility Operating Company.

Responsibility for damages or injuries caused during operations falls on the company: “The Grantee hereof shall be responsible for any damage or injury resulting to any person or property caused by its use and occupancy under this franchise and that the County of Santa Cruz shall not be liable for damages resulting to the water transmission and distribution and water pipes and mains system resulting from the use and maintenance of said highways, streets, alleys, avenues and public thoroughfares.”

Other provisions require compliance with county requirements regarding infrastructure placement. Any sale or transfer of rights must be reported in writing to county authorities. The privileges granted are non-exclusive; similar franchises can be issued by county officials at their discretion.

If Cactus State Utility Operating Company wishes to renew its franchise after twenty-five years, it must begin negotiations with Santa Cruz County at least six months before expiration.

Recent educational data show ongoing challenges in Santa Cruz County schools. In the 2022-23 school year AASA assessment, over seventy-four percent of students in grades three through eight did not pass mathematics (https://www.azed.gov/), while more than sixty-six percent failed English (https://www.azed.gov/). High schoolers performed similarly on ACT exams: eighty-four percent failed mathematics (https://www.azed.gov/) and seventy-two percent failed English (https://www.azed.gov/). More recently in 2023-24 assessments, only eighteen percent of high schoolers passed ACT mathematics (https://www.azed.gov/), while just over twenty-three percent of third through eighth graders passed AASA mathematics (https://www.azed.gov/).

“ORDINED by the Board of Supervisors of Santa Cruz County, State of Arizona,” concludes Rudy Molera as Chairman.



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