20130903Reply.pdf

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-!a. - F-+-r .'{ r:.. f i.r, ;rtt -SPIRIT LAKE EAST WATER COMPANY
P.O. BOX 33gg
COEUR D ALENE ID 83816
187717ss - 9287
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
August 29,20t3
cAsE NO. SPL-W-13-01
IN THE MATTER OF THE APPLICATION OF SPIRIT I.AKE EAST WATER COMPANY
FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVICE.
To The ldaho Public Utilities Commission:
Enclosed for filing are an original and an electronic copy of the Applicant's "Reply by the Spirit
Lake East Water Company to the Commission Staff Comments".
Leslie B. Abrams, President
Spirit Lake East Water Co.
Reply to Staff Report
sPL-W-13-01
RE:
August 29,2013
Spirit Lake East Water Company
P.O. Box 3388
Coeur D AIene lD 83816
(87717ss-e287
tii:? S-i?
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SPIRIT IAKE EAST WATER COMPANY FOR
AUTHORIW TO INCREASE ITS RATES AND
CHARGES FOR WATER SERVICE.
cAsE NO. SPL-W-13-01
REPTY BY THE SPIRIT IAKE
EAST WATER COMPANY TO
THE COMMISION STAFF
COMMENTS
COMES NOW Spirit Lake East Water Company ("Spirit Lake" or "Company'')
and hereby files this reply to the report of the Staff (Staff) of the ldaho Public
Utilities Commission.
STAFF ANATYSIS
Change of Company Ownerchip and Management
The Cornpany agrees with the Staffs comments regarding the change in
ownership of the assets of the Company and the current management of the
Company by Water Works, lnc. However, due to the complexity of the related
nature of the Spirit Lake East Water Company and Water Works, lnc. the
Company has decided that beginning November L,2013 the Company wil! hire
dedicated employees and will no longer retain Water Works, !nc. to provide
Reply to Staff Report
sPL-W-l3-01
August 29,2OL3
contract services for licensed water operations and customer administration
duties.
System Description
The Staff correctly described the Spirit Lake East Water Company and its
infrastructure. The Company would like to note that we recently replaced the 100
hp well pump and motor in an emergency service call on July 28, 2013. The total
cost for installation of the motor and pump was approximately 512,836.93 please
see enclosed 16 page exhibit number 1, includes RC Worst invoice for services
rendered, Water Works lnc. invoice for emergency on call operator, and a copy of
the previous invoice for service from Strate Line, lnc., the crane company that was
provided during the last pump/motor failure in 2007 as their most current invoice
was not available at the time of this filing. The replaced pump assembly was in
use for almost eight years and according to information provided by the
manufacturer, please see enclosed 1 page exhibit number 2, this is the maximum
life expectancy for a 100 hp motor that has been installed and operated properly
within the manufacturers requirement's. With this information in hand the
Company will need to restock a back-up pump and motor at an expected cost of
approximately 522,954.43, which does not include the cost of freight, as the
equipment is not locally available and the Company will need to plan for future
replacements each 6-8 years, please see enclosed I page exhibit number 3. The
Company would also like to revisit the possible addition of a second well source to
provide water to the customers during any period of time when maintenance or
replacement is necessary on our current well. A second source would mean no
disruption in service for the customer and would remediate the necessity for
repairs and maintenance to be billed out at emergency call out rates which would
lower the cost during such circumstances significantly.
Previous System Problems and lmprovements
Applicant accepts the Staffs explanation and investment totals for the
system improvements.
Staff Audit
Reply to Staff Report
sPL-W-13{1
August 29,zOLl
Staff in its report recognizes the Company lacks financial controls such as
budgets and normal reconciliations that are not currently available. The Company
also recognizing this as a problem has since hired an accountant that has
performed all reconciliations up to current and will continue to provide monthly
accounts reconciliations, as well as will be performing accounts payables, payroll,
annual tax returns and will work with Staff to set up the Company to successfully
follow regulatory accounting standards. The cost of the accountant and their
duties, both monthly and annually were not included in the employee cost
adjustments made by the staff, please see 2 page enclosure exhibit number 4. The
Company would ask that the Staff include the accounting costs in the operating
expenses. The Company has also started working on creating a budget and will
complete the budget once the rate case reaches completion. The Company is also
currently working to create a Capital lmprovement plan and budget to guide us in
the replacement of major infrastructure items such as rneters and booster pumps.
As the Company rnoves through this process they will be contacting Staff and a
licensed Engineer for assistance.
Summary Schedule of Adjustments
The Company accepts the Staffs Attachment A, Summary Schedule of
Adjustments.
Additions to Plant in Service
The Company accepts the Staffs proposed Additions to Plant in Service and
would like to note again that the Materials and Supplies Inventory of the well
pump and motor were put into service on July 28th 2013.
Tota! Rate Base
The Company accepts the Staffs Total Rate Base.
Revenues
The Company accepts the Staffs investigation of the Companies accounts
receivables and revenues.
Reply to Staff Report
sPL-W-13-01
August 29,2013
Operating Expenses, lncome Statements, and Revenue Requlrements
The Company accepts the Staffs adjustments to the Companies operating
costs, income statements and revenue requirements, however the Company
would like to note that with the termination of the operations and maintenance
contract with Water Works, !nc. the Company will need to provide its own tools,
equ i pment, transportation, custo mer commu n ications, emp loyee payrol I
expenses, and accountant costs.
Rate Design
The Company recognizes that the rate design proposal submitted with the
initial rate case request was not sufficient and would have produced a significant
revenue deficiency. Therefore, the Company accepts the Staffs recommended
Rate Design and believes that the recommended Rate Design will allow the
company to meet its revenue requirements as provided by the test year. The
Company appreciates the efforts put forth by the Staff to ensure a recommended
rate design that would benefit the health of the water system and conservation
efforts.
Typical Monthly Billing and Rate lmpacts
The Company accepts the Staffs recommendation to approve the
Companies request to implement monthly meter reading and billing procedures.
Other System Operation and Management lssues
The Company agrees with the Staffs findings regarding water production,
consumption, and losses.
Billing and Collection
The Company accepts the Staffs assessment of the billing and collections
process and the Company will work with Staff to ensure that all notices, etc. are in
accordance with the UCRR.
Reply to Staff Report
sPL-W-l3-01
August 29,2013
CompanyTariff
The Company accepts the Staffs recommended Tariff changes and will work
with Staff to revise the Tariff.
Rules Summary and Explanation of Rates
The Company accepts the Staffs recommendation to create a summary of
rules and an explanation of rates with the help of Staff and to provide the
required documents upon initiation of service and annually thereafter.
Customer Relations
The Company accepts the Staffs comments regarding customer relations
and appreciates the Staffs recognition of the Companies customers that are in
favor of a rate increase for the Company.
Staff Recommendations
The Company accepts all of the Staffs recommendations. The Company
appreciates all of the Staffs hard work and would like to thank the Staff for
conscientiously working with the Company and its Customers.
Respectfully submitt edthis4 day of August 2013.
Leslie Abrams
President, SLEWCo.
Reply to Staff Report
sPL-W-13-01
August 29,2OL3
co.
EXFECT mE 8E3r rAOm R aHORS?
625 Best Ave, Coeur d'Alene ID 83814
Phone: [phone] Far 208.667.8775
www.rcworst.com
Bill To:
Spirit Lake East
PO Box 3388
Coeur d'Alene, iD 83816
{lxh ri? i {" l'!r, J-
Dat'{J SERVICE I]IIVOICE
Invoice No.:
Invoice Date:
Due Date:
Custom No.:
Job No,:
232247
08/1212013
09/1U2013
c103951
9927
.Iob Locationr
Pump House
Liberty Drive
Spirit Lake East ID 83859
Spirit Lake East - T2fr8O - Pull and Replace Well Fump
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Labor Job Order - Oveitime - Ben Palmer
Labor lob Order - Overtime - Joe Follini
Labor Job Order - Overtime - Hlke Cordon
Labor lob Order - Overtime - Mike Cordon
Labor lob Order - Regular - Mike Cordon
Labor lob Order - Overtime - Joe Fsllini
Labor lob Order - Regular - loe Foltini
Labor lob Order - Overtime' Ben Palmer
Labor Job Order - Regular - Ben Palmer
EQUIPMENI USED _ ON ]OB ORDERS
EQUIP UsE IOB ORDERS - PUMP HOI5T UNn # 04
EQUIPMENT USED - ON JOB OR.DEflS
EQUTPMENT USED -- ON JOB ORDERS
BAN}IT EAND 201 SS U2"
BAN}IT BUCKLE 201 iS 1I2'
ADVANCE HEAT SHRINK I'X24'
HR
HR
HR
4.00
4.50
4.00
$131.2s
$131,2s
$131,25
$131.25
$87.s0
$131.25
$87.s0
$131.2s
$87.s0
$0.80
$s0.00
$0.80
$0.80
91,74
$1.07
$14.00
$525.00
$s90.63
$525.00
$1,050.00
$s90.63
$1,050.00
$s68.75
$1,050.00
$szs.00
s39.20
$800.00
$3e.20
$s9.20
$s2.20
$12.84
$28.00
Ref T/$ 11629, 13757 & 13766 Joe Follini, Ben Palmer & ftlike Ccrdon Sunday 7-28-13, 7:30 pm-l2:00 am. Overtime
rates apply.
Please Hote: Atl equipment use charged on 7-29-13 timesheets.
Labor to check the wett pump. lt was misslng a winding in the motor. We returned with a hoist truck and parts and
started putling the well.
HR
HR
HR
HR
HR
HR
MI
MI
MI
MI
8.00
6.75
8.00
6.50
8.00
6.00
49"00
16.00
49.00
74.00
30.00
12.00
2.00
fi.ef T/5 13768, 13628 t 11767 lvtike Cordon, Joe Fcllini & Ben Palmer llonday 7-29-13. 12:00 arn-2:45 pm,
Overtime rates apply. Regular rates start at 8:00 am.
Labor to Full ths wetl and instatl a nqw 100 HP, 4S0 GPI{ pump/motor that was provided by the cuttomer. We tested
the syrtem at it ran at 129 amps - 480 6pM.
FT
EA
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c103961 23?,?4.7 R.C. Worst & Company Inc,laf2
4 rhib i+ NIn 1_p$z
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ADVANCE HEAT SI.IRINK 31 4i:/aqI
scoro{ TApE RUBBER 3/4 X 30Fr
TAPE EI.fCTRICAL A33 3/4'X66',
AECTRICAL WRAP TAPE 21( lOOfi
MISC SERVICE @NSUMABLES
Labor Job Order - Regular - loe Folllnl
EQUTPMEfiT USED - ON rOB OROERS
ILsco sPucER 2 scRW 2-!*vt/iRE
Non Stock <Mbc supdles and food purchased)
EA
EA
EA
EA
EA
2.00
1.00
2.00
r0,00
1.00
r.75
47.@
$11.72
$20.38
$5,50
$6.30
$100.00
$87.s0
$0.80
$5.43
$17.49
$23"44
$20.38
$11.20
$63.00
$100.00
$153.13
$37.60
$16.29
$17.49
RefTlS 13632 Joe Folllni Tuesday 7-30-13
Labor to check the well. The soft $art was tripped. We changed the ramp and stop tlme.
HR
MI
EA
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3.00
1.00
Subtotah $7,948.18Thlhk you for choorlng R,C, Worrt & Cornpahy lnc.
for your lrSater and Wartewater needs
A flnance chaee of l"tf, per month, wtth a mlnlrnum of 30.50 wltt be
apptled agalnrt unpald batancet 30 dayr after lnvolce d{re date.
Sales Taxr $13.64
Total: t7r961.82
cl03961 23247 R.C. Worst & Comparry Inc 2af 7
;frd#ilE#il#i*flHs
-wffiffim--'r',il {rl r rJii (tLt; {8 "'{$A'ifi{L!{i
P"O. Box 9?0
Rathdrum,ID 83858
BillTo
Spirir Lake East Water
P.O. Box 3388
Coeur D Alcne ID 838t6
lnvoice
Oate lnvoice #
8/t t20l 3 2t l0
l.?08.667.0726 CDA 0ffice
1.208.667.0745 CDA Fax
infb@mywaterworksonl ine. com
CREDIT CARD PROCESSING NOW
AVAILABLE!!!
P.W.S No.Due Date Project
It/t/20t 3 Wcll Emergcncy call
Service Dates Description Amount
0?118/20r3
$7t29!XAt3
07/301t013
Auto Dialer call 630 pm. Immeiliately respond to alann. Fiud low watcr situation
in rcsgrvoir and well pump in the auto position but not running. l(cset pump and try
to s{art, Pump porvcr throws spark from ground and pomp woot start. Call liccnsed
clectricians RC Worst to respond. RC Worst finrls that motor needs to be rcplaced.
Operator calls in Strats l..ine cran* and remains on site to supen'ise pump
replacemenl moniior rcmaining lvaler in reservoir, and respond to customer
relation issucs please scc altu:hed phonc log. Over time rates,
llegular rates,
[-orv wats alarm. I I am. Respond immediately, molor/pump rvont snn. Call in RC
Wor$.t to ehcck newly instdled pump. Ramp and sop timcs needed to bc adjusted
for the new application.
9l t.25
450.00
270.00
'lhank you fnr your business.Total sl,63 r.25
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srrate Lifra,\k[.bi,+ \.lo x ?q, t5
(Crane & Rigging)
W. 8804 Heavenly View Court
Coeur d'Alene, lD 83814
(208) 659-7s23 Beferenced on lnvoice #
customer: I n,'-,'I /. 1- ,8, n Dateof Service: Jl 'f-,a Z E,,'
Street:Phone:Project: E* ,,, ^a ./? ,r,,,.../
City: lState:zip:Locarion: O//. ,tfl C;- i/1^ ,(,
Description olservices(%Z ,/.- /- - /-, ,... f 4- - r1l
)2, ,// ,-n .//tl)ztt, .. ., ,, --. / Or,.,2,,,--. ,// Za-!\ z fr--r^ ,/
t.- t // ^a;.t;,
/r?'1/t a ./ .Dzt Q-'? a /. fi.2
Equipment / Material Unit
Measure
Unit
Quantity
Unit
Price Total
Drh- /av (T- oletr",/o-(rrr,,oJ,//DBt 9(/osl 8d
) qfl Ir, ./://c t, a tT) ct-zro ".-- /Un,,/?_ r 2 /to. n
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On site contact: fr2, /.,nr. *Subtotal 72,/J gd
Approved byt , -C , ./ ,1, /. f, , f Tax
Purchase Order #:Total Amount Due ?]lr/?6
A. THAT THE AMOUNT OF THIS SERVICE OROEB IS DUE IMMEDIATELY UPON RECEIPT ANO THAT INTEREST SHALL ACCRUE ON THE DECLINING UNPAID PHINCIPAL
BALANCE THEREOF AT THE BATE OF 18% PER ANNUM COMMENCING THIRTY DAYS AFTER DATE OF SEBVICE OROER.
B. IF IN THE SOLE DISCRETION OF STRATELINE INC. IT BECOMES NECESSARY TO BETAIN AN ATTORNEY FOF COLLECTION OF THIS INVOICE. OR IF SUIT ACTION IS
INSTITUTEO TO COLLECT THE AMOUNT OF THIS IN\OICE, OB ANY POHTION THEREOF, SAID FIRM OR INDIYIOUAL WLL PAY IN ADDITION TO ANY COSTS ANO OIS.
BURSEMENTS PRCMDED BY STATUE, A REASONABLE ATTORNEY'S FEE ANO ALL COSTS OF COLLECTION.
THE PEBSON SIGNING HAS REAO ANO UNDERSTANDS THE PFO!'ISIONS OF THIS CONTBACT. EXPRESSLY ACKNOVI/I.EDGES THE EXTENT ANO VALUE OF THE SEH.
VICES ANO EOUIPMENT BENOEBED AS ITEMIZEO ABOVE, ANO EXPRESSLY STATES THAT HE HAS AUTHOFITY TO SIGN THIS CONTRACT FOR AND ON EEHALF OF
THE FIRM OR INOIVIDUAL WHOSE NAME ANO AODRESS APPEAR AT THE TOP OF THIS CONTRACT.
r.<7.0- -tb
Sfrate Line Inc., Crane & Rigging
8804 West Heavenly View Lane' Coeurd A'lene, ID 83814
CUSTOMER:
Spirit Lake East Water Co.
15807 E. Indiana Ave.
Spokane, Wa 99216
,tK\^i(,ri + No L pa{ Ua
INVOICE # 6001
INVOICE DATE 4I3I2OO7
PLEASE PAY A^^ '^ ^.
TIIIS AMOTJNT $3243.86
Makc chccks payable to:
Strate Linc Inc.. Crane & Rieuine
------- ----- - -- - - - --- -- - - - --- - - - -- - - - - ---- - -- - ---- -- -- - - - - - -- - - -- -PLEASE DETACII AITID RETT'RN TOP PORTION WITH PAYMENT
Strate Line Inc.. Crane & Rigging
8804 West Heavenly View Lane
Coeurd A'lene, ID 83814
ll
Insonity is hereditary; you get itfront yow kids!
rlalll
.cxh\bi+ No, 2 DaSe t
OFranklin EtecGnic
DATE: D,ecember 19,2012
FROM: Rick Campbell
SUB.JECT:
Hour ratings for bearings; Life expectancy of motors; Mean Time between Failurcs (MTBF)
Frequently we are asked "Houv long should a submersible motor last?" ln jet pumps, sprinkler
pumps and other aboveground mounted horizontal shaft motors, this is fairly easy question to
answer. Not as easy to answer regarding a submersible motor.
Jet pumps, sprinkler pumps and centrifugal pumps along with other aboveground motors use ball
bearings. The life expec'tance of a ball bearing is govemed by ftiction between the bearing raoes
and the steel ball bearings. Bearing standards are set by organizations like AFBMA (Anti-friction
Bearing Manufacturers Association) and ANSI (American National Standards lnstitute). Life
expectancy of these bearings is generally rated in hours, with common life hour ratings of 10,000
and 20,000 hours. These ratings are normally expressed in 810 & L10 life ratings.
Franklin Electric does not use ball bearings in our submersible motors. lnstead we use a water-
lubricated thrust bearing design commonly called a 'Kingsburf or "Mitchell' design.
Kingsbury/Ulitchell bearings ride on a film of water that has almost zero friction. This is similar to
your car hydroplaning on the highway. Since there is little to no friction, there is little to no wear.
Since Franklin does not use ball bearings inside our submersible motors, B10 and L10 ratings do
not apply.
The expected life of our submersible motors is highly dependent upon installation and operation
conditions. Therefore, the actual operating life is highly variable. !f our recommendations are
not followed, the motors may be irreparably damaged before or during installation, within
seconds of operation, or as a result of electrical surges on the power lines anytime during its life
cycle. The damage may not manifest itself as a infant mortality failure but the motors life
expectancy will most likely be shortened. Although we do not have good records on the life of
our motors past the warranty period, our best estimate would be that if our installation and
operation conditions are met, the life expectancy of a 100 Hp Franklin submercible motor
shouldreach6-8years.
Again, the values provided are in reference to the submersible motor and the motor is only one
@mponent of a complete water system. Any problem that develops within the water system can
affect the life of the motor.
oxhibi+ I'lo 3 PAAa I
R.C. Worst & Company Inc.
625 Best Avenue
Goeur d'Alene, ID 83814
l-ake East
F0 Box 3388
d'Alene,ID 83816
525 Best Avenue
Coeur d'Alene, ID 8381+3740
Epest the Bast frorn RC. WoGt
SALE QUOTATTON
QuoE llumber:
Quote Date:
Quote Valld UnUl:
Account llumber:
24749
o8lo2l20t3
Lol0u20r3
c103961
Refenence:
Terms:Net 30 Days
Sales Person: Scott Jessick
Ship Via:
Item Number DesoipUon QuanUty Unit Prlce
FECZ!960460
TMP
FRNKLN SUB MOTOR TOOHP 8" ZI6OV
Grundfos 47551000-9 Pump End 475GPM 100HP 9-Stage
1.00
1.00
$14320.00 $14,320.00
$7345.50 $7,345.50
$21,665.5O
$o.oo
$0.00
$1,299.93
$221965.43
Subtotal
Mlsc
Freight
Sale Tax
Total
208.664.2133 - Phone 208.557.825 - Fax lnfo@1ct^,0rsL@m lrrvw.ElYorSLOm
Page t of 1
-qj*h ibi+ No 4 P"r (
Name /Address
irit Ldrc Eas Watcr Co.
B0 BOX 338t
Cocu/d Alanc, ID 83816
Jalane Johnson, LLC
2571 N Ivylane
Post Falls, ID 83854
Quote
Dato Quote #
7n9a0t3
Rep Project
Descriptlon Total
Includes Accounls Payablc, Payrolt, Monthly, Quartcrly, and Annual Reporting (Monthly
Chargc)
500.00
Total s500.00
oxhibi+ No 4 p(F Z
Name/Addrcss
Spiritl^rkc Erst \Vst6 Co.
PO BOX 3388
Coafd Alarc, lD 83t16
JalmeJohnson, LL,IC
2571 N Ivylare
Post Falls, ID 83854
Quote
Date Quote #
Tllgaott
Rep Prci€c-t
Descdptlon Total
Annuat Tax Rehrm 700.00
Total 3700.00