20070220Comments.pdf

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33588 North West Kelso Drive
Spirit Lake Idaho 83869
l.(20K) 623 3244
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February 12, 2007 .\!r
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Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
RE: CASE NO. SPL-O6-
Dear Sir or Madam:
I believe the attached enclosure will reaffirm my opinion regarding the Notice of Public
Hearing on the above application of the Spirit Lake East Water Company on February 28 2007
at the Spirit Lake Elementary School at 1800 hours.
Following years of benign neglect on the part of County, State and Federal agencies to
gently guide a company into the path of compliance, we are now met with a crisis situation in
which said agencies may now impose conditions which impel said Company lu It:IIlUVt: ilsdf
from the management position it now occupies.
Possibly in the higher plane in which said agencies move the Company s request is only
a minor consideration. After witnessing the benign neglect of said agencies for the past 29
years, the contemplation that Spirit Lake East Water Company (RA.Hanson, Hanson Industries
Et AI) may feel compelled to abandon said water Company to the tender mercy of said agencies
and devote their efforts to future improvements in the Spokane Area. Not a pretty picture for a
resident without any water rights.
We are not simply addressing the topic of Water Rates, we are involved with the future of
a Company servicing a fragile twenty-six mile water line, in an area of relatively small service.
Simply expressed; Big Line:Few Clients.
Looking to the future, I am concerned that should such a possibility come to pass, the
successor will be a company adequately financed and with the means; equipment and talent to
undertake such an endeavor at minimal expense to the few. I know that at present, with the
backing of R A. Hanson, and Hanson Industries, this backing exists. I can t say the same for
some of the endeavors I have witnessed in Kootenai County.
I believe every effort should be made by the Attorney General, Department of
Environmental Quality and the Public Utilities Commission to gently urge said Company to
pursue a course which can not only be profitable to said Company, but one which promotes the
general welfare of the residents of Spirit Lake East and Treeport as well.
LOT 111
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Spirit Lake Idaho 83869
l.(20K) 623 3244
Jean Jewell
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
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February 14 2007
RE: CASE NO. SPL-O6-
Dear Ms Jewell:
I enclose the comments which were addressed to the Editors of the Idaho Spokesman
Review and the Spokesman-Review respectively. I don t believe they will have any impact on
the Rate Hearing, but may serve as a background to the agencies concerned.
My main concentration as a former Registered Investment Advisor, is the capitalization
of the Spirit Lake East Water Company. In the event the Company desires to relinquish its
interest in the Spirit Lake East and Treeport Plats, for whatever reason, I would like to be
reassured as a homeowner, that any successor will have the capitalization, equipment and talent
to maintain a relatively lengthy service. I have seen too many companies fail as the result of
well meaning intentions without the former requirements. The saleability of the firm should be
based on the Company s capitalization and rate of return on investment, rather than any
non-profit desire to do good. Ifthe Company s capitalization is increased as a result of a
substantial rate increase it makes it a more likely prospect for future purchase.
I am located in the First Phase of the SLPLAT development and my home was built in
1978. I took occupancy in the Summer of 1993. An increase from $12 per month to $24 a
month represents about 2 1/2% on an annual basis. In comparison, Association dues in
SLEPLA T were authorized an annual increase of 3% a year, but were never enforced until a few
years ago.
I don t live on Monroe Street in Spokane, with a 2" service, an 18 inch, steel water main
in the Street and 60 PSI at the tap. I haven t checked their bills lately, but Fred's Appliance and
PBS weren t too happy when they got their bills in 1993. I was the Project Engineeer on Monroe
virtually from Montgomery to Francis. I live in Spirit Lake East by choice and accept the
present conditions at what I consider to be an acceptable cost. By contrast, house and lot are
now valued by the County Assessor at almost twice the amount of the purchase in 1993.
Working together, PUC, DEQ, and the Attorney General can make the whole procedure a
much more palatable situation than it is at present. The Department of Veterans' Affairs is no
longer concerned with conditions in SLEPLA T following the long lead of most commercial
financial institutions. Having denigrated the capabilities of the Boise Office they are now
content to continue their operation in Denver. Their Loan Officer, Joe Reno , once asked me if
Spirit Lake East was part of the United States, prompting my inquiry to the Director, who
reassured me that it was.
Enclosure: Memorandum and Letter to Scott Maben I S-
MEMORANDUM
From: Robert A. Costigan, Spirit Lake East Resident r;FC;E
To:Steven A. Smith, Editor, Spokesman-Review 7007
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Subj:Ii"0 ,', 0Idaho Spokesman-Review article on Spirit Lake East Water CompanYUI!~h::i.I~~H:/;I~-;'-u ...,
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Ref:Northwest Idaho Edition, Friday February 9, 2007
1. When I wrote my cell phone use article for inclusion in the Opinion Page, I didn t expect to
contact the S-R again for several months, except to renew my subscription.
2. Subsequent to this article, I believe that R A. Hanson, the man, deserves recognition and
appreciation for the vision and foresight he had in creating the Spirit Lake East Plat. The
relationship between the Community, Mr. Hanson, Hanson Properties, and SLEWATERCO
hasn t always been an easy one, but lets face it. Mr. Hanson took on a substantial undertaking at
a time when no one else had the vision, stamina or means to take on the development of a
burned over six square miles and turn it into a viable development.
3. Corners were cut in the review, but that was primarily the failure ofthe agencies, County,
State and Federal to involve themselves in the project. Spirit Lake East is an enforced Plat.
never encountered one, until I did the research in 1994, and that only when I found my title
company failed to include 26 pages of documents in their search. They saved me $26.
Commercial lending institutions go through the motions and PUD resolutions are a routine
enclosure to loan documents. The V AlDepartment of Veteran Affairs handling of the PUD from
1977 on would make a movie parallelling that of the "Keystone Cops.Veterans were routinely
denied the Loan Guaranty process until the Spring of2001. Two projects, geographically
abutting one another and two different results.
4. No reviewing authorities other than the Commissioners, the Tax Assessor and the Recorder
were involved in the SLEPLAT. No Public Minutes exist. In the Tax Assessors file there is
only one letter, other than one I composed for a neighbor. Summarily the Agent stated he
thought the properties were appraised to highly, since most of the Owners were from Out of
State.
5. To me and many others, RA. Hanson and Hanson is the Spirit Lake East Water Company.
for one would hate to see R A. Hanson abandon his creation. I looked at the plant and the
system before I moved in here. Yes, there were deficiencies even then, but they were tolerable
and over the years problems developed, but they were relatively minor inconveniences when
compared to the benefits. Compared to my rowboat excursion in the underground reservoir on
the Spokane South Hill it was an uncontested crap shoot. I commuted to Spokane for almost a
year before retiring here.
6. This is a fragile 26 mile water system with the possible demand for 378 five or ten acre
properties when fully developed, Treeport and Spirit Lake East. Spirit Lake East deserves better
than this article.
LOT 111
33588 North West Kelso Drive
Spirit Lake Idaho 83869
l. (20K) 623 3244
Scott Maben, Editor
Idaho-Spokesman Review
608 NW Boulevard, Suite 200
Coeur d'Alene, Idaho 83813
My dear Mr. Maben:
When a neighbor contacted me concerning your recent article on Spirit Lake East Water
Company, I felt compelled to share my thoughts regarding your article with you.
In 1993 , I attempted to purchase my present home using my Veterans Administration Loan
Guaranty to acquire a lower interest rate. I was informed by the V A Representative in Boise
Chief, Construction and Valuation Officer, Roy Sims, now deceased, the VA had not guaranteed
any loans in the Spirit Lake East Plat since first requested to do so in 1977. There were serious
concerns about the plat, one of which involved water. Inquiring further, with Department of
Environmental Quality, in Couer D' ALENE, I was informed the VA was mistaken, the VA had
confused the SLEPLAT with Sheep Springs, a smaller development, located to the Northeast.
went commercial with Washington Mutual, which requires a Planned Unit Development rider in
the loan agreement.
I maintained contact with the VA, namely CC&V Officer Jerry Outlaw until the present. In the
Spring of 200 1 , the responsibility for V A Loans was transferred to the Denver Regional Office
and the position of Mr. Outlaw was downgraded to that of Management Analyst, despite
stringent protests to Messrs. Otter and Craig, my lawful representatives to the House and Senate.
As a consequence ofthe transfer, all records pertaining to the Spirit Lake East Plat and the V A'
long-standing position on this PUD, disappeared. Possibly the same group that handled our
President's attenda..'1ce records. No records concemingthe period from the VA Loan Circular in
1977, only a copy of a Memorandum from the V A Loan Guaranty Attorney s lengthy
involvement with Hanson Properties exist, SW ABO, ZILCHE, ZERO, although for years the
VA declared they would not guaranty loans in SLEPLA T until the "rights of all residents, not
just Veterans are protected." I have the original ofthat one.
In 1977, RA. Hanson undertook the development of two plats; One in Bonner County and one
in Kootenai County. The Treeport Plat consisting of 65 -5 acre tracts went through all ofthe
Hoops with the signatures of all of the various approving authorities; the one in Kootenai
County, recorded in August 1978, shortly before the new zoning ordinance in Kootenai County
would go into effect (with its Septemberlst publication in the Press), ZIP. Check the plat map
in the County Recorder s Office in Couer d' Alene for yourself.
LOT 111
Subsequently R.A. Hanson twice deeded the 20 miles of graveled roadway in the Plat, retaining
utilitiy rights, to the Spirit Lake East Homeowners' Association Incorporated , a Non-Profit
Corporation initiated by himself and Other associates in April 1978. The articles included a
provision that all properties subsequently added would become Members of the said Association
subject to such designation by Hanson Properties. In 1990 for reasons known only to Mr.
Hanson and Others, 13 of the Lots platted in Spirit Lake East were covenanted to the Public
Treeport Plat in Bonner County although they are and remain without any public road access.
After much wrangling over monies for accessing the Private Roads in SLEPLAT, and a closing
by cable of the access, subsequently destroyed by Frank Burns, a resident of Treeport, Mr.
Hanson wrote a check to SLEHOAINC, along with a statement " that it would damage the
relationship between the two communities.Subsequently, Hanson Properties commissioned
the firm of Frame & Smetana, in Couer d' Alene to survey four properties , Lots 271 , 313, 301
and 301 to obtain easements for the sole purpose of accessing the Private Roads in SLEPLA T.
Members of Treeport et al were given access to the described private roads in perpetuity to run
with the land. The privilege of access was not extended to 299, Members of SLEHOAINC.
In 2004 after my presentation to the Bonner County Commissioners, notification of the end of
the Public Road access to Private Property in Kootenai County, the above described lots, was
posted to limit Bonner County liability. Maintenance of the private roads by Bonner County
public works in the easement was discontinued. In November 2004
one access on extended St Joe Drive was blocked with median barrier.
In 1977, RA. Hanson undertook the vast task of aggregating approximately six square miles of
burned over forest land. He did a remarkable job at a time no one else would take on the
responsibility despite a lot of lip service to the contrary by various agencies, not only Kootenai
County, but the State of Idaho, and the Veterans' Administration as well. Compare SLEPLAT
to the vast area of cookie cutter homes you now see clustered on tiny lots on the Rathdrum
Prairie.
I support Spirit Lake East Water Company s application for a rate increase. Have I encountered
water outages, during my almost thirteen years of residency? As a project engineer for the City
of Spokane, I had occasion to shut down water service for adjacent properties during construction
as well. Were the outages my family and I endured catastrophic? Ask some ofthe residents of
West Plains for comparison. Not in the least. Loss of electric power was the major factor, so I
bought a generator to tide us over the infrequent and short lived occurrences until Kootenai
Electric remedied the situation.
LOT III
RA. Hanson and Hanson Industries, to me and many of the older residents here, essentially
represent Spirit Lake East Water Company. My greatest concern is that the Attorney General
the Public Utilities Commission, and the Department of Environmental Quality, and a small
group of others will cause an aging Mr. Hanson to throw up his hands and say to Hell with it
leaving us to the tender mercy of any undercapitalized and ill equipped company to assume the
responsibility for maintaining a 26 mile water system serving a limited membership. The
Secretary of State, once told me Bob, we make the laws we don t enforce them. Without water
rights to pursue our own well or combine with neighbors, the loss of SLEWC at would be a
catastrophe. One reason I purchased here despite the V A, and WM's high interest rate, was I
liked the Four Circles and the privacy, R.A. Hanson incorporated in the Plat. The Circles
remind me of England and my schooling at the JSSC in Latimer. Neither lor members of
family have ever been sick one day as a result of using the yard hydrant or household water and
scorn ex-Californians with ten zone sprinklers and their use of bottled water. I challenge DEQ
to sustantiate poor water quality for me or my neighbors in their dismal oversight of the system.
Over the years, I made several contributions to the Spokesman-Review, one as recently as
yesterday on cell phone usage while driving. During that time I have only one regret. I cringe
every time I see the use of the phrase
, "
I am appalled." in the Letters to the Editor or Opinion
page. That is the most overused word and phrase in the English language.
I wish the I -SR well, but when you do an article with a big photo shoot, for us little people, do a
little digging. There is a story here, but you muffed it. I am sending a copy of this letter to
Steve Smith, maybe he will commission Oliveria to do a follow up on Hanson. Oliveria the
infamous author of the "Ducks in the Swale" at I-SR.
Robert A. Costigan
CC: Steven A. Smith, Editor, Spokesman-Review