20030418Reply.pdf

FROM PHONE NO.
~7:;J./
Apr. 18 2003 01: 56PM P2
RECEIVED IT)FILED
ZOD3 APR 18 PM 2: 52 P. T .E.. Water System Inc.
2626 Wreneo Loop Road
ndpoint. Idaho S3
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UT IU/j,fiO PUbliC
lIlESGOMMISSION
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Telephone [phone]
April 16,2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the matter of P.C. involvement
in P.E Water System Inc.. Failure
to stand by the final order dated
August 8,2002 ordered by P.C..
Page 18 under OEDER. P.
lED and desided to (:bangc the
SO called f"mal order a few months
after its start period.
Case No. P.W..03-
c. ORDER TO SHOW CAUSE
TO ALL QUESTIONS TALKED
ABOUT AND LISTED IN THIS
DOCUMENT.
Noti(:e of Hearing order No. 29212
In reference to your fint sentence in yonr Show Cause you make the statement that
the Idaho Public UtUites Commission with the power and jurisdiction to supervise and regulate
every public utility wjthin the State of Idabo. My Qnestion is why haven t the P.C. done
what there ordered to do? Why is there only about 30 public water utilities under P.1J.C. control
when there are probably hundreds in the state of Idaho? I was told by Bob Smith that P.
has the right to control public water that sel'\'ices one unit or more. IfP.C.'s controHs good
for one then it shonld be good for aD. Why are the 30 or so public water systems now under
the control of P.C. being discriminated against and being made to comply when all the
otber public water company do not have to comply? I have asked this question to the staff
member Bob Smith and he told me that there is not enough personnel or money to take under
control all of the public water utilities. HP.C. ean t supervise all the Public Water Uti lites
then they should Dot supervise any. I was just at a meeting in March to get my water
certification review and there were 3 different water company attending that sell water for
profit, one having 400 units, none ofthese know anything about P.C. How (:oroe? I want
the full disclosure of every bit of paper work that P.c. bas on all the Public Utilities that
are now under tbeir controL I want tbe contact person s name and phone number. I also
want a complete list of every public water utilitie in the state of Idaho. I suggust that P.
contact D.Q"7 water testing agencies, water certification agendes, IWWOCB, INC. and
the Idaho Tax Dcpt. to get the complete list of all the publk water utilities in the state of
Idaho. I want this information 80 I can possibly start a class action law suit against P.C..
I was told by staff member Michael Fuse and Lisa Norbstrom that when the Commissions
final order came out in August 8, 2002 it would be a done deel and it (:oold not be changed.
I operated under this order for a few months until I was told by Michael Fuss that it looked
like P.C. was going to change the order allowing part time landowners to only have to pay
for 4 months of water per year. This is not what the final order dated August 8, 2002 indicated.
The annual r~enue to be received by P.E. Water" was to be 526,600.00.
Page 1
FROM PHONE NO. Apr. 18 2003 01:56PM P3
This was to be collected by resideDt owners ~ $ 48.00 per month and all other owners ~ 25.
per month. These monthly amounts were based of a twelve month period to arrive at the
$ 26 600.00 per year amount. This is spelled out in great detail in the P.s fmal order
dated August 8, 2002. Attention to page 18 under the beading ORDER and also attachment
1 in the final orders from P.c. dated August 8t 2002. P.C. elected to break the agreement
final order dated August 8, 2002 therefore P. T.E. is taking the stand that P. T .E. is not having
to ~ommit to any orders ordered by P.C. because P.C- cannot be trusted and they have
lied. Even Michael Fuss admitted to Ole at the last phone eoversation we had that yes indeed
I had been lied to but there was nothing I or he could do. Because of the now even move
-reduction in revenu~ beause ofP.s new change, I had to take matters into by own
hand and try to save this company and my investment-Because of what I did I have regained
about 6 customers that had pulled out of the water system. Most of these (:ustomers were being
told by P.C. that they had to pay $48.00 per month for part time use. They are now paying
$25.00 per month. I have re~lassed the landowners into 2-classes that I had before P.
got involved with my company. Resident owners and NonmResident owners. Resident owners
pay $48.00 per month and non-resident owners pay $25.00. I told the landowners this, If you
want to help pay for the operation, maintenance, upkeep and repairs of tbis water system
then you are going to have to pay for water for twelve months a year. In this small water
system you can t expect to only pay for water when you want it and pot help pay for the
yearly eJ:pencC$. If the landowners elect not to take ser'Vice from this water system then
thcy will be withdrawn from the system. At present I have 12 residents and 21 non residents
on the system. If everyone pays this amounts it is $1101.00 per month or $13,212.00 per year.
One thing that really bothers me is I was required by D.Q. to update the water system by
putting in a ~hloranation system and a second welL P.E. Water System lnc. did not have
the money to do this so I refin.anced my home and loaned the money to P.T-E Water so
that the system could be updated. This was done a short time before P.C. got
involved with this water company. P.C. informed me that I could not get my money back
that I bad loaned to P.E. to make the required repairs. Why doe s P.C. have the right
to do this? This has pnt a severe hard ship on roe because I have to pay back the loan.
My first meeting with P.C. was with Bob Smith in Sand point Idaho. Bob Smith told me
that my company was worth nothing and he said I likely would never make a profit. He also
said it wonld be next to impossible to sell the water company. His suggestion was for me to
give it to the landowners or just walk away from it. I was also told this from Lisa Norbstrom
and Michael Fnss. The Commission also stated that this company is a barely viable part-time
business as stated on page 18 of the August 8, 2002 report. What right do you have to run
down my business and try to make me give up my business that I have worked hard the last
17 years to improve. At this time no water has been shut off or disconnected to any
landowners. Most of the landowner seem to accept the fact that if they want water to
their property then they are going to have to help pay for the e~penses monthly. P.
turned over the information that P.E. is a public water system to the Idaho Ta.1: agency.
Idaho Tax accessed that the value of this company was $130,000.00. I was sent a tax
bill for $1254.00 based on the $130,000. worth. Why is my (:ompany worth $130,000.
when aU the staff members and commissioner say that the business b~ worthless. Why
do state agency not confer with each other.
page 2
FROM PHONE NO. Apr. 18 2003 01: 57PM P4
Why didn t the State Tax agency get the company information from P.1J.C. so that
they could make an honest value. Why did the system fail?
This is just another screw up caused by P.C.. P.E. does nt have the money to pay this
tax at this time. Inclosed if; a breakdown of the expenses that were sent to the Idaho Tax
agency and tbe cover letter sent them. P.E. Water System Inc. does nt own anyofthe
property that the water system is located on. AU of the property is owned by Robaer
Cobott and Zaderea Raphael. The complete chloranation system and second well is now
owned by Robaer Cohort and Zaderea Raphael since P.E. is Dot able or allowed to pay
back the amount loaned to P.E. by Robaer Cobott and Zaderea Raphael.
ORDE.R TO SHOW CAUSE
1. I'm asking for damages for the downgrade of P.E. f..om a -viable business to a non-
viable business since P.C. Involvement in the amount of $300 000.00.
2. I,m asking for $50,000.00 from the staff and commissioners making fun and telling me that
my business is worth nothing.
3. I want to be reimbursed in the amount to $50,000.00 for all the time spent furnishing
information to P.C. in their investigation army company, two trips to Boise, hearing, and
many meeting in Sandpoint and on the property. I excepted the finding of the Commission
in their letter dated August 8, 2002 but when they elected to change their fmding and lied
to me then it mf!ot that I did all of tbis information gathering to DO avail
4. I want $3000.00 per day for every day since the changes where make. I do not know
when these new changed went into effect as I ne-ver received phone calls or correspondence.
These changes are uncalled for and it just further convinces me that '' only purpose
is to put this company out of business one way or the other.
S. I want answers to all the question in this letter and I want all the paper work requested.
6. I object to the Testimony of Michael Fuss. Michael Fuss is a staff member with P.
and his comments are prejudice.
7. rm asking for $SOO,OOO.OO in damages for being discriminated against. Being selected
out of many public water system to comply to P.C.'s (:ontroJs when there are many publi(:
water company that don t have to comply simply be(:ause P.tLC. does nt ha-ve the personnel
or money to do their job correctly.
page 3
FROM PHONE NO. Apr. 18 2003 01:58PM P5
I have a great amount of difficulty desideing if I should attend this so (ailed hearing on
Apri128! 2003. This hearing is going to be conducted by the P.C. which cannot be
trusted because oftheir tieing. Why should I belie-ve anything that the P.C. says?
Its obvious tbat the P.lT.C. has only one purpose in mind and tbat is to put thjs company
out of business. It is not rigbt that the landowners have to worry if the water system is
going to continue or not. Quite a few of these landowners have children aDd they are
not faroilys of high income. These familys con not afford to put in their own wells. P.
has told me that if this company goes ont of business than the landowners will have to have
their water hauled in or they will have to put in their own wells and that this problem is of no
concern to them. With my plan I am tryjng to save the system and provide water to the
landowners that want water. Its very simple, if yon want water available to your property
then you are going to have to pay for it.
I want an independent arbitrator to hear this case, one that is not prejudice one way or the
other. There are a lots of issued here and I want the issues heard in great detail and not
skimed over like P.C does. Issues might not be importance to P.C but they are very
importance to me. The...e are a few greedy landowner that like to cause trouble and they
don't want to have to pay for water at all. P.C. listens to these landoWJIer and agrees
with them without investigating both sides. Since P.C. involvement in this company and
since the final order was issued on August 8, 2002 this company, according to P.c., was.
to receive and annual revenue of $26 600.00. Since August 8, 2002 till April 2003
the annual revenue has dropped to $13,214.00. It wouldn t be this amount if it wasn t for
the customers that came back after my letter was sent out io January 2003. Why is
P .C. trying to put this company out of business? This company was doing just fine
before P.s involvement and when P.tJ.C. set the rates is when the many customers
desided to put in tbeir own wells. The customers did not like the rates and the fact that they
were going to have to put up with P.lLC.. I have lost many customer since P.
involvement and I want to be compensated from P.C for my loss. P.C. made mistakes
with this water company trying to supervise it and the loss is to tbe company not P.lJ.C..
C. should step up to tbe bat and be made to pay for their mistakes.
We live in this "United States of America that bas many freedoms ODe of which is freedom
of spee(:b and we live in a Democracy not in a socialist form of government. My question
is why does P.C. have the right to control every aspect or my company?
THANK YOU
Robae Cobott, President
page 4
FROM PHONE NO. Apr. 18 2003 01: 59PM P6
Company Number:04'100,021
WATER DISTRIBUTION INDUSTRY
OPERATOR'S STATEMENT
PONDEROSA TERRACI= ESTATES
WATER
Under the penalties of perjury, I hereby certify that this statement h9S been prepared under my direction and
supervision from the original books and records of said com~ny and that the facts statementS alKI
schedules In this statement are true, correct and complete to the best of my knowledge.
-,- "'"" ,..,
A /r~J 3-1?-~(J0.3
Ptl~tUMe Till. ~--
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l~"pno"'Numb8t
Rbdl+EI!.. Co /3tJ-rL"
.._
;:loB-;tk3- ~ 7~o
FROM PHONE NO. Apr. 18 2003 01: 59PM P7
REVENtJE & EXPENSE DETAILDe~cri fion Accl No.
REVENUE
1 Total Operating Revenue
2 DEQ Fees Billed Separately to Customers
3 Hookup or. Connection Fees Collected
4 Commission Approved Surcharges Collected
OPERATING EXPENSES
5 labor - Operation & Maintenance
6 labor - Customer Accounts
7 Labor - Administr:1ltive & General
Salaries, 00(:$1"$ & Directors
9 Employee Pensions & Benefits
10 Purchased Water
11 Purchased Power & Fuel for Power
12 Chemicals (Includes Chemical Container Deposits)
13 Materials & Supplies - Operation & Maintenance (Includes Postage)
14 Materials & Supplies - A&G, Customer Care (Includes Postage)
15 Contract Services - Professional (Accounting" Legal, & Management. Fees)
16 Contract Services - Water Testing
17 Contract Services - Other
18 Rentals. Property & Equipment
19 Transportation Expense
20 Insurance
21 Advertising
zz Rate Case Expense
23 Regulatory Commission Expense
24 Bad Debt Expense
25 Miscellaneous
26 Total Operatin Ex 25)
OTHER TAXES OR FEES
List of Taxes or Fees Current Year
27 Real & Personal Property Tax
28 Idaho State Income Tax
29 Payroll Tax
30 State Corporation License Fees
31 Idaho Public Utilities Fees
32 Other Fees
Water Distribution Industry (CA4)
601.
601,7..
601.
603
604
610
615-16
618
620.1-6
620.8 ,.
631-
635
636
641-
650
656-59
660
666
667
670
675
401
.5~
.:t. s- 65':
5(,. .60'
(p ;;i9.7;3
Amount of Increase or
Decrease from Preceding Year
Revised: 12/1/2001
FROM PHONE NO. ~pr. 18 2003 02:00PM P8
2626 Wrenc:o Loop Road
Idaho 83864
Water System Inc.
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Tek!phQnE! 208-263-2720
March 16~ 2003
State Tax Commission
800 Park Blvd.
Plaza 1 V
Boise, Idaho 83722
Attention Pat Burch
I filled Obt the tax forms that we had discussed 00 the phone.. The information given was
only the expenses paid by the company with the revenue the company had. There are additional
expenses that were not paid because no money to pay them. These additional expenses were
about $4000.00 owed to myself for w;!ge due to all the extra work (:8used by P.
involvement and also there was no moneys for profit or for a reserve tot' any problems in the
water systero. J would like to know how the State Tax Commission came up with the value
of 5130,000.00 for this water system. H P.C. ~ a state agency, gave the State Tn Commission,
a state agency, the information that Ponderosa Terrace Estates Water System Inc.. was now
a public water system then why wouldn t The State Tax Commission talk to P,C. and get
the infonnation on tbis ~mpany to use for figuring the Tax. Before any company ~ome$
public there are many audits and a lot ofresearcb done by P.C. in their inyestigatioB or
the water system. Who would know better the value of a company than P.C after all
their research. I can t find any paper work showing I received paper work from the State
Tax Commission prior to the Tax Packet sent out in December 2002. I knew nothing about
this tax and was never informed by any agency of such a tax. You have assessed this
company 51254.19 which I can t pay and something should be done to correct this unjust tax.
This (:Ompany according to P.C. ba.,'I; no value and I have been told by staff members at
C that I should find a way to get out of my involvement with this water company.
Inclosed is a copy ofthe final report and decision dated August 8, 2002 from P.
Please look at page 18. Also inclosed is the letter I delivered to the Bonner County Tax
Commission asking for an extension and a tax reduction. Please do something to lower
the impending tu. The 12 resident landowners on this system, most having children, are
for the most part low income households and they would not be able to survive if the water
system shut down. H you have any questions about the paper work please call me
at 208-263-2720. I will be out of town starting March 19 for about a week.
YOU
Robaer Cohott, President