20020405Final Order No 28994.pdf

Office of the Secretary
Service Date
April 5,2002
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AN APPLICATION )REGARDING THE SALE OF THE STONE-)CASE NO.SWS-W-01-01
RIDGE WATER SYSTEM (CERTIFICATEOF )PUBLIC CONVENIENCE AND NECESSITY )NO.365)BY KEITH GARNER AND ISSUANCE )OF A NEW CERTIFICATE FOR THE SERVICE )AREA TO CDS STONERIDGE ASSOCIATES-)LAND,LLC AND A REQUESTFOR A )RECONNECTION/STAND-BY FEE.)ORDER NO.28994
On December 21,2001,the Idaho Public Utilities Commission (Commission)received
an Applicationapprising the Commission of the sale of the Stoneridge Water System and requesting
that existing Certificate of Convenience and Necessity No.365 in the name of Keith Garner dba
Stoneridge Water System be cancelled and a new certificate for the service area be issued to CDS
Stoneridge Associates-Land,LLC (CDS).Reference Idaho Code §61-526;IDAPA 31.01.01.111.
The StoneridgeWater System is a public utility providing water supply to the Stoneridge golf resort
communitynear the town of Blanchard,in Bonner County,Idaho.CDS is a Utah Limited Liability
Company qualified to do business in Idaho dba Stoneridge Water Company.The Application (as
amended by letter dated February 01,2002)also requests approval of a reconnection fee of $50 or
at the customer's option,a $14 stand-by fee for each month during the period of discontinued
service.No other change in rates or charges is requested.
Accompanying the Application are copies of:
1.A Purchase and Sale Agreement between Keith Garner and Cully W.Davis
(or related assigns)dated November 8,2000 together with an addendum
dated December 22,2000.
2.A Bill of Sale dated March 29,2001.
3.A Special Warranty Deed dated March 29,2001 bearing the stamp of the
Bonner County Recorder indicating it was filed as Instrument No.579483
on April 2,2001.
4.An inventoryof Real Property transferred in the sale.
5.An inventoryof Personal Property transferred in the sale.
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6.A set of Financial Statements for purchaser for October 2001.
7.A Certificate of Existence for CDS Stoneridge Associates-Golf,LLC from
the State of Utah.
8.An Application for Registration of Foreign Limited Liability Company
bearing the stamp of the Idaho Secretary of State.
Commission Notices of Application and Modified Procedure in Case No.SWS-W-01-1
issued on February 8,2002.The deadline for filing written comments was March 1,2002.All
customers were provided with a copy of the Commission's Notice.The Commission Staff was the
only party to file comments.
Commission Staff notes that CDS has been operating this water system since January 1,
2001 and that CDS has retained the Stoneridge Water System employee responsible for the
operation and maintenance of the system.Staff believes that CDS has demonstrated both the
financial and technical ability to operate and maintain the water system.Staff recommends that
CDS be directed to segregate the water system operation from the other business activities of CDS.
Staff further recommends that all water system assets be separately identified and that an
accounting system consistent with the Commission's Annual Report Form be established.
As reflected in Staff's comments,Staff researched Commission case files for the
Stoneridge Water System and discovered that a reconnection charge was approved by Commission
Order No.28376 in Case No.SWS-W-00-1.That Order approved reconnection fees of $14.00
during office hours and $28.00 for after office hours.The owner,Keith Garner,was directed to file
tariff sheets consistent with the Order.Mr.Garner,it appears,never filed the tariff nor did he
provide the information to the buyer.Staff has discussed these disconnect/reconnect charges with
the Applicant's representative,Mr.Roger Sanders,who has agreed that the charges approved by
Order No.28376 are acceptable for the time being.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case
No.SWS-W-01-01,includingStaff's comments and recommendations.
Based on the established record and a review of Idaho Code Title 61,we find it
reasonable to approve the sale of the Stoneridge Water System to CDS.We find it reasonable to
cancel Certificate of Convenience and Necessity No.365 issued to Keith Garner and issue a new
Certificate No.395 to CDS Stoneridge Associates-Land,LLC dba Stoneridge Water Company.In
ORDER NO.28994 2
so doing,we require that CDS operate the public water utility as a separate business entity,separate
and distinct from all other business activities.
As a regulated water utility,CDS is required to adopt the Commission's Utility
Customer Relations Rules,Utility Customer Information Rules,and an accounting system
consistent with the information required by the Commission's Annual Report for small water
companies.A separate accounting system is to be established for the water system activities and
detailed receipts of time records are to be maintained.
Previously approved rates or charges for water service to the Stoneridge Water System
continue to be effective.The Commission notes that CDS has agreed to abide by the previously
approved disconnection and reconnection charges.Reference Order No.28376.While we find it
reasonable for the Company to require a two day advance notice for disconnection,we find the
requirement of a written request to be unreasonable.CDS is directed to file new tariff sheets
reflecting authorizedrates,including non-recurring charges and general service provisions.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction and authority over CDS
Stoneridge Associates-Land,LLC dba Stoneridge Water Company,a water utility,and the issues
raised in this application,pursuant to Title 61 of the Idaho Code and the Commission's Rules of
Procedure,IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above,IT IS
HEREBY ORDERED and the Commission does hereby cancel Certificate of Public Convenience
and Necessity No.365 previouslyissued to Mr.Keith Garner dba Stoneridge Water System,Bonner
County,Idaho.
IT IS FURTHER ORDERED and the Commission does hereby issue Certificate of
Public Convenience and Necessity No.395 to CDS Stoneridge Associates-Land,LLC (CDS)dba
Stoneridge Water Company for service to the Stoneridge water system in Bonner County,Idaho.
CDS is required to furnish a more precise legal description of the served area for the Certificate file.
IT IS FURTHER ORDERED and the Commission does hereby authorize continuance of
the rates and charges for water service previously established and approved for the Stoneridge
Water System.CDS is required to file new tariff sheets,signed by an authorized representative,
reflecting the name of the new owner.
ORDER NO.28994 3
IT IS FURTHER ORDERED and CDS is required to adopt and implement the
Commission's Customer Relations Rules (IDAPA 31.21.01),Customer Information Rules (IDAPA
31.21.02),and Small Water Policies (IDAPA 31.36.01)includingan accounting system consistent
with the information required by the Commission's Annual Report for small water companies.
IT IS FURTHER ORDERED and CDS is required to inform its customers of the
Commission approvedrates and policies.
IT IS FURTHER ORDERED and CDS is required to make written petition or
application to the Commission prior to any proposed change in ownership of the Stoneridge Water
Company system.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this þ'A
day of April 2002.
PAUL KJELL ER,PRESIDENT
MARSHA H.SMITH,COMMISSIONER
ENNIS S.HANSEN,COMMISSIONER
ATTEST:
D.Jewell
ission Secretary
vid/O:SWSW0101 sw
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