20030317Application.pdf

if Y'C;
-'c
"~'\ '-' \
.. 1 ,fj:- .;,L.'9\...' . --
fiLED
-"'"
APPLICA 'fiON1FIDR 7AWR~~hL
iD,~,1;G ?,';\%LrC
UTiliTIES cof'1H1SSiONMarch 13.2003
.""~",-~-,-"_,,..-.---,-,.~.,~.,-,_..~,~,
Idaho Public Utilities Commission
Attn. Commission Secretary
472 West Washington
Boise, ID 83804 S t1/S -tAJ- a J- 0 I
NEW CASE
Application of CDS Stoneridge Utilities, LLC for approval to acquire the service
territory of Happy Valley Ranchos Inc., to complete an interconnection, to borrow
funds, to amend Certificate of Convenience and Necessity Number 395, and
implement a surcharge.
Application is hereby made by CDS Stoneridge Utilities, LLC (SU or Stoneridge) for
approval by the Idaho Public Utilities Commission for Stoneridge to complete an
interconnection between the existing SU water system and the neighboring Happy Valley
Ranchos Inc. homeowner s association (HVR) water system; to borrow funds from the
Idaho Department of Environmental Quality (DEQ) to complete the construction ofthe
interconnection; to amend Certificate of Convenience and Necessity Number 395 to
include the HVR customers within SU's service area, and; to implement a surcharge of
$12.04 per month applicable to only to customers on the HVR side of the interconnection
to service the debt for the project. The surcharge will expire upon satisfaction of the loan
taken out to complete the interconnection project in 20 years.
The HVR water system has been experiencing significant water quality problems.
Extremely high iron in the water from the HVR wells has necessitated the installation of
filters that are expensive to maintain and has resulted in the accumulation of iron deposits
in the pipes on the system. HVR initiated discussions with SU regarding a possible
interconnection between the two systems in order to gain access to the high quality SU
water supply.
CDS Stoneridge Utilities, LLC (SU) and Happy Valley Ranchos Water, Inc. (HVR) have
reached an agreement in principle regarding the merger of HVR users into the SU system
(please find enclosed Exhibit A an executed Letter of Understanding between SU and
HVR). Additionally, HVR users voted 82% in favor of coming onto SU's system as
outlined in Exhibit A (please find enclosed Exhibit B a letter to SU from the president of
HVR representing the votes from their users). The primary reason, but not the only
reason, for this heavy vote in favor of HVR coming on SU's system relates to the quality
of water HVR has in their wells.
The effects this connection will have on the existing customers of SU will be minimal as
the level of service, infrastructure and quality of water has been excellent for a number of
years. HVR customers will experience better quality water and a higher level of service
since SU has a full time staff. Upon completion of the interconnection project, customers
on the HVR side of the interconnection will become customers of SU and begin paying
the authorized tariff rates of SU plus the $12.04 monthly surcharge. This surcharge rate
could fluctuate up or down depending on the final cost of design, construction and
completion of this interconnection. These customers are metered and are currently paying
$21 per month for zero to 20 000 gallons. These customers will experience an increase
their water rates of approximately 25-52% (depending on the number of gallons actually
consumed).
The legal description of the service area to be transferred to SU from HVR, plat maps of
both systems and preliminary engineering and estimated cost detail of the interconnection
project are attached as Exhibits C, D & E.
A Letter of Understanding in regards to this agreement has been executed (Exhibit A) and
the parties are currently working toward a definitive legal agreement. This agreement can
be cancelled by SU in the event something is discovered in the due diligence process not
previously accounted for. Additionally, this agreement is subject to the approval of this
Application by the Idaho Public Utilities Commission and receiving debt financing from
the Idaho Department of Environmental Quality (DEQ).
Financing sources for this project will come from minimal grant dollars for engineering
design from the DEQ and low cost (2%) debt financing from the DEQ. Attached as
Exhibit F are copies of the DEQ Drinking Water Loan & Grant Summary of Steps &
Requirements , our letter as to the completion of "Step 1" the Priority List and a contract
showing the completion of "Step 2" the Consultation Selection. As you can see we have
engaged in "Step 3" working our way through DEQs 8-step process. The DEQ
encourages the merging of smaller systems together into fewer larger water systems.
There is no other financing for this project contemplated at this time.
Exhibit G provides an overview of the debt financing (using the cost estimates from
Exhibit E) and the calculation of the surcharge required for the debt service costs.
On March 28 , 2003, a notice of this Application will be provided to all customers on both
water systems. A copy ofthat notice is attached as Exhibit H together with a mailing list
of all customers on both systems.
The primary contact for SU regarding this Application is:
Dean Allara
Managing Member
364 Stoneridge Road
Blanchard, ID, 83804
[phone]
The primary contact for HVR is:
Steve Hites
President
PO Box 370
Blanchard, ID 83804
[phone]
We request that the Idaho Public Utilities Commission expeditiously process this case
and issue its order in a timely manner so the project may go forward to completion during
the upcoming construction season.
~=y,
ill
Dean Allara
Managing Member, CDS Stoneridge Utilities, LLC
-'-
Exhibit A
eo.;0.2003 3:54AM N:.35J~
--". ~
STONERIDGE
A GaL" ""0 RECRE"TIONAL COMMUNITY
O, eO)! zeo
'3154 STONERIOC~ ROllO
I!ILANCHARO. IDAHO e~804'
PHO..~ BOO.IIS2-2!U&
208"'37-314&
FAX 209"'37-3046
STONERIOGEIOAHO,COM
February 6,2003
Happy Valley Ranchos Water, Inc.
Board of Directors
Attn. Steve Hites-President
This is a Letter of Understanding between Happy Valley Ranchos Water, Inc. (HVR) and
CDS Stoneridge Utilities, LLC (SU) regarding the merger ofHVR users onto SU -water
system. After completion of this merger current and future HVR users will be customers
. of the SU water system. SU will provide all water services to the HVR customers. These
services include, but are not limited to, water service to the end user, ongoing
maintenance, billing and collections. The Idaho Public Utility Commission (lPUC) will
regulate all services provided by SU. The HVR entity will cease to provide setVi ces to the
users and all plant and equipment aSsets owned by HVR to be utilized after the
interconnection is complete would become the property ofSU. All plant and equipmentowned by HvR. that will not be utilized for the interconnection will become obsolete and
will remain in the ownership ofHVR. Additionally at the discretion of the Board of
Directors ofHVR, HVR may retain a board seat on SU Board of Directors. Per the letter
dated January 11 2003 it is SU understanding that you have authorization from your
users to move forward in this regard.
In order to connect the HVR users to the SU water system! notable engineering,
cons1l11ction and capital equipment is required to upgrade HVR's current plant and
equipment and connect it to SU water system. These engineering, construction and
capital equipment costs will be born by the end users ofHVR via debt financing and/or
grant proceeds attained by SUo The financing is to be provided by the Idaho Department
of Environmental Quality (DEQ) at an interest rate of 2% amortized over 20 years. The
current engineering, construction and capital equipment costs are estimated to be
approximately $200,000. The exact amount financed will be determined by the actual
amounts expended. The construction and capitaIequipment amount paid for these
services will be determined via a competitive bid process. Once the work has been
completed and HVR end users are on the SU water system, there will be a Special
Assessment for the HVR users only, to ensure the principal and interest are paid 'back on
the payment schedule as dictated by the terms of the DEQ loan. It is anticipated to take
six months to attain the financing approval from DEQ.
Upon determination of the necessary preliminary engineering costs HVR and SU will
make reasonable efforts to agree to split such costs in the event the merger does notmaterialize.
eb.:C.2003 8:54AM !l~!1 " . . v . 3
Upon execution of a Definitive Agreement between HVR and SU, SO will have a period
of 60 days to perfonn all necessary due diligence on the HVR plant and equipment. In the
event that SU finds an issue with said plant and equipment, as determined in SU's sole
discretion, SU has the right to terminate the Definitive Agreement and has no furtherobligations.
Additionally, this Letter of Understanding and any Definitive Agreement executed
hereafter is subject to receiving approval from the IPUC and funding ftom DEQ. In the
event either of these events do not happen this Letter ofUnderstandjng and any
Definitive Agreement signed hereafter will be null and void.
It is expected that a definitive agreement win be reached by March 15, 2003 and IPue
and DEQ approval will be attained no jater than September 15,2003.
Sincerely,
Dean Allara
Managing Member, CDS Stoneridge Utilities, LLC
Agreed and Accepted:
-X~ Al(ZA8J
Steve Hites
President, Happy Valley Ranchos Water, Inc.
Exhibit B
; ;;J;"~L.l.:u.-:l 11 , ::00:3
;3 teneRi dge .: c. mp ,:.rJ.:t'
1 Blanchard Road
BlaT~ch,3Lt-, Idaho 83804
At tn:De,
:,.
Alla.r21
ue3Lt- loll:-. All,:i..ra
his lette~- is to ':Jjnfi~-m the conversation :lOU h.:i.d ",i th La.r~"yBurk 0 f Happy Valley Ranchos Water Board.
The vote was 82' in favor of StoneRidge and 18' in favor of
keeping o~- ow~n well. We ca~n be working on this at the same
ime the PUC is acting on YClur application. The~-e fore we arelookinq' :Eo~..,a.rd to a meet.ing "lith you t,(1 diso:~uss OUl,- next,
moY
,,, .
:lou m...r either call LarrI Burk or mysel f , Steve Hites , to setu~ ::.. IT'."=",,tin.:;).
Sir..,::;e~-ely
3t,E:'\re Hi t.es President
:i.~lpy Va.llE:Y R:u.:..chcls W,:i.te~- IrJ.c.
~)
:tz;
f1~;;L.c - t-/3 2-(
Exhibit C
EARGE MAPS IN CASE FILE
Exhibit D
LARGE MAPS IN CASE FILE
Exhibit E
JAMES A SEWELL & ASSOCIATES
Consulting Engineers
Newport, WashinQton
11/26/02
EJE
Paqe 1 of
CLIENT: Stoneridge Utilities, Bridge Partners, Inc.
PROJECT: Water System Connection to Happy Valley Ranchos Water System, Alternate 1
SUBJECT: Enqineer s Estimate of Probable Cost, Assuminq 2002 Construction
Prices are based on area contractor rates and include material and installation costs.
WITH PUMPHOUSE
Mobilization 000.000.
8" PVC Pipe, C900 CL 150 500 15.500.
Connection to Existing Systems 000.000.
8" Gate Valve 750.500.
Road Crossing w/Surface Repair 20.600.
Sand Bedding 500 500.
Pumphouse Construction 00b.000.
Air Relief Valve Assembly 500.500.
Fire Hydrant Installations 250.18,000.
Small Blowoff 500.500.
Large Blowoff 000.000.
Recoat Tank Interior 500.11,000.
Install Additional Storage Tanks-000 Gal 000.10,000.
Subtotal Construction 147,100.
Contingency 10%
\ $
700.
Total Construction 161 800.
Allied Costs, Engineering, Legal, Admin 25%500.
TOTAL ESTIMATED PROJECT COST 202 300.
Cost per ER, Total 200.
Cost per ER, Monthly w/20 yr 2% DEQ Loan 11.
Exhibit F
~DriD~1I2 Wa,er Loan & GraDt
Summary of Steps & Reouirements
Priority List - To be eligible for a loan or grant. a qualified entity (district. municipality. association or private
public drinking water system) must be placed on the DEQ Priority Lists. These lists are developed each spring
and they go into effect in July, An interested entity should submit a lener to DEQ describing the project with
emphasis on how public health will be protected by completing the pr~ject.
Consultant Selection - Hire an engineer to prepare an engineering report and environmental evaluation in
accordance with Idaho Code 67-2320, Documentation that the engineer selection process was done in
accordance with Idaho Code will need to be kept on file, The engineer must be licensed in Idaho and have
liability insurance and the engineering contract must be approved by DEQ if the entity receives a DEQ grant or
would like the costs for the engineering report to be retroactively fundable through the loan,
EngiReeriDg Report - Complete an engineering report and the environmental review process in accordance with
state guidelines. This report will be used to solicit comments from the public and agencies on the proposed plan.
Up to 50% of the costs of preparing this report could be covered through the DEQ drinking water grant
program. If the entity does receive a loan in the future for design and construction. it is possible for the 50%
matching share or 100% of the costs for preparing the report to be included in the loan, The DEQ project officer
should be consulted before hiring a consultant to determine how this retroactive reimbursement can occur.
'-t.Incur Debt - A district. municipality or association. must hold a bond election or form a Local Improvement
District (LID) or receive a Judicial Confirmation to incur debt. A private system must demonstrate that there is
adequate security for the repayment of the loan,
Capacity Assessment - Receive Boise State University (BSLJ) recommendation for funding after BSU and DEQ
conduct a "Managerial. Financial and Technical Capacity Assessment
Loan - Receive a loan currently at an interest rate of :3.75% for 20 years, Starting July I. 2001 . the rate will
change to 3 75% for portions of the project not related to Safe Drinking Water Act compliance and 2% for those
portions of the project related to Safe Drinking Water Act compliance, Some projects will have a composite rate
of less than' 3.75% but greater than 2%, Projects involving the consolidation of two (2) or more water systems
. may also receive the 2% interest rate, Disadvantage loans may be awarded if the applicant can show that
household median income does not exceed 80% of the statewide non-metropolitan median household from the
most recent census data- and the annual cost of drinking water service for residential customers exceeds 2% of
the median household income.
Loan Conditions - Two (2) important loan conditions are the following:
The operator in charge of the water system will need the appropriate level of certification or have
graduated from an approved training program and demonstrate he or she is competent to operate the
facility,
Individual water meters may need to be installed throughout the system and utilized for billing users,
Design and Construction - Prepare plans and specifications and submit to DEQ for approval. Bid the proJect in
accordance with Idaho Code Proceed to construction,
Contact:John Tindall
C oeur d' Alene DEQ Office
[phone]
ehru~" ,i e""-'
Jan 28 03 04: 5610 A. Sewell L Assoc.50944721 12 10.
s ookane
Hulton Building
9 South Washington, Suite 708
Spokane, Washington 9920 I
[phone]
[phone] Fax
'-''- '
\ICJ VJ
, ..::; \
:::v l..." tJ
JAMES A. SEWELL & ASSOCIATES
Consulting Engineers & Land Surveyors
Newoon
600 4th Street West
Newport, Washington 99156
[phone]
[phone]
[phone] Fax
SandDoint
Pend Creme ProfesslOllal CCRter
30336 Highway 200. Suire C
Sandpoint, Idaho 83864
[phone]
Fax [phone]
Civil Enginecnng "Electrical Engineering *Land Surveying .BUlldlng Inspection
May 24, 2002
Department of Environmental Quality
21 10 Ironwood Parkway
Coeur d'Alene, ill 83814
Attn:
Subj:
John Tindall, P.E.
Stoneridge Utilities, Connection of Happy Valley Ranchos Water System, Water SystemImprovements
Request to be Included on Prionty Funding ListRef:
Dear John:
On behalf of Stoneridge Utilities Company and Happy Valley Ranchos Water, lnc" we wish to requestconsideration to be placed on the Priority Funding List for DEQ GrantJLoan Program funding of water
system improvement projects,
The projects include connection of the Happy Valley Ranchos Water System to the Stoneridge WataSystem, and improvements to U".e Stooeridge Water System. We have included an Engineer s Estimateof Probable Cost for both projects, each of which Itst total estimated project costs for these projects,
It is our understanding that placement on the Priority Funding List establishes no. obllgation to acceptprogram funding; however, If sufticient interest exists, we also understand that the projects could befunded as early as this year.
We appreciate your consIderation of this request. Should you need additional infonnation or if youhave questions or conunents, please don t hesitate to. cantact me ar afficials af each water company.
Sincerely,
JAMES A. SEWELL & ASSOCIATES
::"'010"8
:;J!1 bur
EJE/eje
pc: Dean Allara, Bridge Partners, Inc., 60 East 3rd Ave, Suite 112, San Mateo.. CA 94401 wieDelHappy Valley Ranchos Water, Inc., P.O. Box 158, Blanchard, ID 83804 w/enclFile wieDel
Licensed in Washington . Idaho., & Montana
Feb 25 03 12:01p A. Sewell & Assoc.5094472112
CDS STONERIDGE UTll.JTIES LLC
HAPPy V ALLEY RANCHOS WATER SYSTEM CONNECTION 2003
AGREEMENT FOR ENGINEERING SERVICES
This Agreement, made this 25th day of F ebruarv 2003
by and between CDS Stoneridge Utilities LLC , hereafter
referred to as the OWNER, and
referred to as the ENGINEER:
J ames A. Sewell & Associates hereinafter
THE OWNER intends to construct the Happy Valley Ranchos Water System
Connection 2003 in BoMer County, State of Idaho
which may be paid for in part with financial assistance from the Idaho Department of
Envirorunental Quality, hereinafter referred to as DEQ , and for which the ENGINEER agrees to
perfonn the various professional engineering services for the design and construction of said
system upgrade.
The Happy VaHey Ranchos Water System COimection 2003 project consists of installation
approximately 3 500 LF of 8" waterline with appropriate appurtenances. construction of a pump
house, installation of approximately 8 fire hydrants, recoat interior of the upper HVR water tank
and install two additional 3,000 gallon water tanks at the upper HVR water tank.
WITNESSETH:
That for and in consideration of the mutual covenants and promises between the parties hereto, it
is hereby agreed:
SECTION A: ENGINEERING SERVICES
The ENGINEER shall furnish engineering services as follows:1. The ENGINEER will conduct preliminary IllvestlgatJons, prepare preliminary drawings
. provide a preliminary itemized list of probable construction costs effective as of the date
of the Engineering Report, and submit an Engineering Report following DEQ instructions
and guides. The Engineering Report shall confonn to the outline as provided in Section
58.01.22.030.01 of the Rules for Administration of Planning Grants for Public Drinking
Water Facilities. Additionally, the Report shall confonn to the Drinking Water Facilities
Outline and Checklist for Engineering Reports as published by the DEQ
As a part of the Engineering Report. and for the purposes of the lPUC , the ENGINEER
will provide a detailed legal description for the Happy Valley Rancho water system area
to be acquired. The ENGINEER will also provide plat maps ofHVR system and the
Stoneridge system, and will provide a drawing showing how the interconnection will be
made.
- -- .- -
Ft!b 25 03 12:02p A. St!wt!ll ~ Assoc.5094472112
CDS Stoncridgc Utilities LLC
Happy Valley Ranchos Water Sys8em Connection 2003
Agreement for Engineering Services
Page 2
The Engineering Report will include a detailed description of the construction required
and the estimated costs to interconnect the two systems. The Report will also include
prcJiminary construction drawings. When the Engineering Report is accepted, final plans
and specifications will be prepared and submitted for approval.
The ENGINEER will furnish 10 copies of the Engineering Report, and layout maps to the
OWNER.
The ENGINEER will prepare an Environmentallnfonnation Document in accordance
with DEQ instructions and guides. The Enviromnentallnfonnation Document shall
conform to the Environmental Information Document Outline and Checklist as published
by the DEQ.
The ENGINEER will attend conferences with the OWNER, representatives ofDEQ, or
other interested parties as may be reasonably necessary.
After the Engineering Report and Environmentallnfonnation Document have been
reviewed and approved by the OWNER and by DEQ, and the OWNER directs the
ENGINEER to proceed, the ENGINEER will perfonn the necessary design surveys,
accomplish the detailed design of the project, prepare construction drawings
specifications, and Contract Documents, and prepare a final cost estimate based on the
final design for the entire system. It is also understood that if subsurface explorations
(such as borings, soil tests, rock sounding and the like) are required, the ENGINEER will
furnish coordination of said explorations without additional charge, but the costs incident
to such explorations shaH be paid for by the OWNER as set out in Section D. hereof.
The Contract Documents furnished QY the ENGINEER under Section A- 7 shall utilize
DEQ endorsed construction Contract Documents, including DEQ Supplemental General
Conditions, Contract Change Orders, and partial payment estimates. All of these
documents shall be subject to DEQ approval. Copies of guide contract documents may
be obtained from DEQ.
Prior to the advertisement for bids, the ENGINEER will provide for each construction
contract, not to exceed 10 copies of detailed drawings, specifications, and contract
documents for use by the OWNER, appropriate Federal, State, and local agencies from
whom approval of the project must be obtained. The cost of such drawings.
specifications, and Contract Documenls shall be included in the basic compensation paid
to the ENGINEER.
The ENGINEER will furnish additional copies of the drawings. specifications and
contract documents as required by prospective bidders, material suppliers, and other
interested parties, but may charge them for the reasonable cost of such copies. Upon
award of each contract, the ENGINEER will furnish to the OWNER five sets of the
drawings, specifications and contract documents for execution. The cost of these sets
shaH be included in the basic compensation paid to the ENGINEER. Original documents.
survey notes, tracings, and the like, except those furnished to the ENGINEER by the
OWNER, are and shan remain the property of the ENGINEER.
The drawings prepared by the ENGINEER under the provisions of Section A- 7 shall be in
sufficient detail to pennit the actual location of the proposed improvements on the
ground. The ENGINEER shall prepare and furnish to the OWNER without any
additional compensation, three copies of a map(s) showing the general location of needed
construction easements and permanent easements and the land LO be acquired. Property
10.
II.
- -
F~b 25 03 12:02p A. S~.~ll L Assoc.5094472112
12.
CDS Stoncndge Utilities LLC
Happy Valley Ranchos Water System Connection 2003
Agreement for Engineering ServIces
Page .3
surveys, property plats, property descriptions, abstracting and negotiations for land rights
shall be accomplished by the OWNER, unless the OWNER requests, and the ENGINEER
agrees to provide those services. In the event the ENGINEER is requested to provide
such services, the ENGINEER shall be additionally compensated as set out in Section D
hereof.
The ENGINEER will attend the bid opening and tabulate the bid proposals, make an
analysis of the bids, and make recommendations for awarding contracts for construction.
The ENGINEER will review and approve, for confonnance with the design concept, any
necessary shop and working drawing furnished by contractors.
The ENGINEER will interpret the intent of the drawings and specifications to protect the
OWNER against defects and deficiencies in construction on the part of the contractors.
The ENGINEER will not, however, guarantee the perfonnance by any contractor.
The ENGINEER will establish baselines for locating the work together with a suitable
number ofbenchmarlcs adjacent to the work as shown in the contract documents.
The ENGINEER will provide general engineering review of the work of the contractors
as construction progresses to ascertain that the contractor is conforming with the design
concept.
Unless notified by the OWNER in writing that the OWNER will provide for resident
inspection, the ENGINEER will provide resident construction inspection. The
ENGINEER'S undertaking hereunder shall not relieve the contractor of contractor
obligation to perfonn the work in confonnity with the drawings and specifications and in
a workmanlike manner; shall not make the ENGINEER an insurer of the contractor
performance; and shall not impose upon the ENGINEER any obligations to see that the
work is performed in a safe manner.
The ENGINEER will cooperate and work closely with DEQ representatives.
The ENGINEER will review the contractor s applications for progress and final payment
and when approved, submit same to the OWNER for payment.
The ENGINEER w;JJ prepare necessary contract change orders for approval of the
OWNER, DEQ, and others on a timely basis.
The ENGINEER wm make a final review prior to the issuance of statement of substantial
completion of all construction and submit a written report to the OWNER and DEQ. Prior
to submitting the final pay estimate, the ENGINEER shan submit a statement of
completion to and obtain the written acceptance of the facility from the OWNER and
DEQ.
The ENGINEER win provide the OWNER with one set ofreproduclble record (as-built)
drawings, and two sets of prints at no additional cost to the OWNER. Such drawings will
be based upon construction records provided by the contractor during construction and
reviewed by the resident inspector and from the resident inspector s construction data.
If State statutes required notices and advertisements of final payment, the ENGINEER
shall assist in their preparation.
The ENGINEER will be available to furnish engineering services and consultations
ecessary to correct unforeseen project operation difficulties for a period of one year after
the date of the statement of substantial completion of the facility. This service will
include instruction of the OWNER in initial project operation and maintenance but will
not include supervision of normal operation of the system. Such consultation and advice
13.
14.
15.
16.
18.
19.
20.
21.
22.
24.
._,- - --
F eb 25 03 12: 02p A. Sewell & Assoc.5094472112
25.
26.
CDS Stonendgc Utilities LLC
Happy Valley Ranchos Wattr System Connection 2003
Agreement for Engineering ServIceS
Page 4
shan be furnished without additional charge except for travel and substantial completion.
The ENGINEER further agrees to obtain and maintain at the ENGINEER'S expense
such insurance as will protect the ENGINEER from claims under the Workman
Compensation Act and such comprehensive general liability insurance as wiH protect the
OWNER and the ENGINEER from all claims for bodily injury, death, or property
damage which may arise from the perfonnance by the ENGINEER or by the
ENGINEER'S employer of the ENGINEER'S functions and services required under this
Agreement.
The services caned for in the Section A-I through A-S of this Agreement shall be
completed and the report submitted within
sixty (60)calendar days from the date
of the authorization to proceed. After acceptance by the OWNER and DEQ of the
Engineering Report and upon written authorization from the OWNER, the ENGINEER
will complete final plans, specifications and Contract Documents and submit for approval
of the OWNER, DEQ, and all State regulatory agencies within
ninetY (90)calendar
days from the date of authorization unless otherwise agreed to by both parties.
If the above is not accomplished within the time period specified, this Agreement may be
tenninated by the OWNER. The time for completion will be extended by the OWNER
for a reasonable time if completion is delayed due to unforeseeable causes beyond the
control and without the fault or negligence of the ENGINEER.
SECTION B - COMPENSATION FOR ENGINEERING SERVICES
I .The OWNER shaH compensate the ENGINEER for preparation of the Engineering
Report and the Environmentallnfonnation Document in the sum of
Fifteen Thousand
and 00/100 Dollars ($ 15.000.) after the review and approval of the
Engineering Report and Environmental Infonnaiion Document by the OWNER and DEQ.
The OWNER shall compensate the ENGINEER for design and contract administration
engineering services in the amount of: (Select (a) or (b))
Fifteen Thousand and 00/100 DoHars($ 15.000.
As shown in Attachment 1 (Not a part of this Agreement)
When Attachment 1 is used to establish compensation for the design and contract
administration services, the actual construction costs on which compensation is
determined shall exclude legal fees, administrative costs, engineering fees, land
rights, acquisition costs, water costs, and interest expense incurred during the
construction period.
The compensation for preliminary engineering services, design and contract
administration services shall be payable as follows:
EomeerUle: ReDOl1 aDd E8viroameotal 18formatio8 Documeat E82U1eerill2
Services. The ENGINEER will render to OWNER an itemized biB for such
services, once each month, for compensation for such services perfonned as
F~b 25 03 12:03p J. A. S~w~ 11 & Assoc.5094472112
CDS SIoneridgc: Utilities LLC
Happy Valley Ranchos Wal.c:r System Connection 2003
Agrc:emc:nt fOl' Engineering Services
Page 5
described in Section B- Compensation for Engineering Services, the same to be
due and payable by the OWNER to the ENGINEER on or before the 10111 day of
the following period. OWNER will pay ENGINEER for such services from
OWNER funds up to the budgeL amount of FIFTEEN THOUSAND dollars
($15,000).
ad C -_..--n- .d....istntioD ftll9i8eeri82 Se ices. The
ENGINEER will render to OWNER an itemized bill for such services, once each
month, for compensation for such services perfonned as described in Section B-
Compensation for Engineering Services. the same to be due and payable by the
OWNER to the ENGINEER on or before the lOlh day of the following period.
OWNER will pay ENGINEER for such services from OWNER funds up to the
budget amount of FIFTEEN THOUSAND dollars ($15.000).
SECTION C-COMPENSA TION FOR RESIDENT INSPECTION AS SET
FORTH IN SECTION A-
When the ENGINEER provides resident inspection, the ENGINEER will, prior to the
preconstruction conference, submit a resume of the resident inspector s qualifications
anticipated duties and responsibilities for approval by the OWNER and DEQ. The OWNER
agrees to pay the ENGINEER for such services in accordance with the schedule set out in
Attachment1. The ENGINEER will render to OWNER for such services an itemized bill, once
each month, for compensation for such services performed hereunder during such period, the
same to be due and payable by the OWNER to the ENGINEER on or before the IO'h day of the
following period. Under nonnal construction circumstances, and for the proposed construction
period of Ninetv (90)calendar days, the cost of resident inspection is estimated to be
Thou~ and ()()/l ()() dollars ($6.000.00)
SECTION D- ADDITIONAL ENGINEERING SERVICES
In addition lo the foregoing being perfonned, the following services may be provided UPON
PRIOR WRITIEN AUTHORIZATION OF THE OWNER and written approval ofDEQ.
Site surveys for water treatment plants, sewage treatment works, dams, reservOlTS, and
other similar special surveys as may be required,
Laboratory tests, well tests, borings, specialized geological, soils, hydraulic, or other
studies recommended by the ENGINEER.
Property surveys, detailed description of sites, maps, drawings, or estimates related
thereto; assistance in negotiating for land and easement rights.
Necessary data and filing maps for water rights, water adjudication, and litigation.
Redesigns ordered by the OWNER after final plans have been accepted by the OWNER
and DEQ, except redesigns to reduce the project cost to within the funds available.
Appearance before coUIts or boards on matters of litigation or hearings related to the
project.
- -- -
F eb 25 03 12: 0310 5094472112A. Sewell & Assoc.
CDS Stonendge Utilities LLC
Happy Yaney Ranchos Water System Connection 2003
Agreement for Engtneering Services
Page 6
Preparation of environment impact assessments or environmental impact statements.
Perfonnance of d~led staiOng necessary for construction of the project in excess of the
control staking set forth in Section A-IS.
The: ENGINEER further agrc:c:s to provide the operation and maintenance manual for
facilities when required for
Payment for the services specified in Sections D and F shall be as agreed in writing
between the OWNER and approved by DEQ prior to commencement of the work.
Barring unforeseen circumstances, such payment is estimated not to exceed S 000
The ENGINEER will render to OWNER for such service an itemized bill , separate from
any other billing, once each month, for compensation for services performed hereunder
during such period, the same to be due and payable by OWNER to the ENGINEER on or
before the 1 ()I" day of the following period.
SECTION E- INTEREST ON UNPAID SUMS
If OWNER fai Is to make any payments due ENGINEER within 60 days for services and
expenses and funds are available for the project then the ENGINEER shall be entitled to interest
at the rate of percent per annwn from said 6O'h day not to exceed an annual rate of 12
percent.
SECTION F- SPECIAL PROVISIONS, ADDITIONAL ENGINEERING SERVICES
Easement Acquisition
Construction Staking
$ 3,000.
$ 2 000.
10.
,.---
Feb 26 03 03: 46p
SENT 9V~ ;
~-
25 03 12:~
A. Sewell & Assoc.
80128A5960;
~. s..-II ~ -..oc.
5094472112
~~B.26.03 14:14;
5OS4.7Z I I Z
PAGE 2. /2.
,... -
C8 ..... u.r
..." "'-' ...... ...
I, ~ 181
.. -
fir
' - "",
,.1
SE("11ON G- Alf9,OV AI. BY DEO
11Iia ..... r
""-
\ J I ~ r ....... A ~DEQ. .......... 1 ..-.c
...;j "'"
01.'"
-.-
I _olDlO...""""
-...,..
1118 ....... 11
- .
'" DIO ....
. .. ...,
CI8IIIiIIiI DIO to
.... .. .... ---...
is
.....
Ii8iIiIy
,. ."
r-" Jr' b.A J
.. .
tNI
....~..
r-- 'tV'
....,..... .",~""'
.,..4/1J I or-
..... ....
. J.. n oIDEQ
JIll WIn fIr -_snc -,....LA
.., . "...... .....
"""8G ~. or C8IIIIIII8 to -.c
...
1 T by War
,'
:i ,-iJ
T_""
Tiek
.&1 -..IIw J:k. t"""
-..
(SEAl)
A TTFST
T". NI8c
--- .- .~-~(.--
TiI8e
.- - --- -
m;st K1P
~ !
~'F ;:RIC J .
(SfAL)
Tille OFF!,C;E AI)1INISTRAIDR
ridc -.2
~~
0IIc 2./~~jD31.~ KATIlERINE A RlIRC,FSS
A~.
IDAHO DEP U1MJ!NT Of ~,.l QlJ IUlTY .
By ._-
Type N.- ---
Tille - . -
Exhibit G
OV
E
R
V
I
E
W

O
F

D
E
B
T

F
I
N
A
N
C
I
N
G

&

C
A
L
C
U
L
A
T
I
O
N

O
F

S
U
R
C
H
A
R
G
E

R
E
Q
U
I
R
E
D

F
O
R

D
E
B
T

S
E
R
V
I
C
E
Co
s
t

t
o

H
o
o
k

U
p

H
a
p
p
y

V
a
l
l
e
y

R
a
n
c
h
o
s

W
a
t
e
r

S
y
s
t
e
m

t
o

S
t
o
n
e
r
i
d
g
e
:
20
2
30
0
Id
a
h
o

D
e
p
a
r
t
m
e
n
t

o
f

E
n
v
i
r
o
r
n
m
e
n
t
a
l

Q
u
a
l
i
t
y

L
o
a
n

P
r
o
g
r
a
m
:
I
n
t
e
r
e
s
t

R
a
t
e
Te
r
m

o
f

C
a
p
i
t
a
l
Pa
y
m
e
n
t
s

p
e
r

Y
e
a
r
Mo
n
t
h
l
y

P
a
y
m
e
n
t

o
n

t
o
t
a
l

D
E
Q

L
o
a
n
Mo
n
t
h
l
y

S
u
r
c
h
a
r
g
e

P
a
y
m
e
n
t

P
e
r

HV
R

U
s
e
r

(
8
5
)
00
%
02
3
.
4
0
$1
2
.
II:
(p:
:
I!
I
:
I
I:
)
p:
:Eo
!
..
.
:
I
II:
(
Eo
!
NOTICE OF APPLICATION
March 28 , 2003
Dear Stoneridge Utilities LLC and Happy Valley Ranchos Water Inc. Water Users
This notice is to inform you that on March 14, 2003 an "Application of Approval" was
made to the Idaho Public Utilities Commission regarding the approval for CDS
Stoneridge Utilities, LLC to acquire the service territory of Happy Valley Ranchos Inc.
to complete an interconnection, to borrow funds, to amend Certificate of Convenience
and Necessity Number 395 , and implement a surcharge.
If this application is approved, there will be no increase of rates or change in the level of
service provided to current Stoneridge Utilities LLC water users. In regards to the users
on the Happy Valley Ranchos Water Inc., their rate will a monthly surcharge of$12.04 in
addition to a connection rate of $14 per month, plus .30 per 1 000 gallons consumed.
Your total monthly charge could cost $26.34 if you use only 1 000 gallons per month or
could cost $32.04 if you use 20 000 gallons per month. Currently you are paying a flat
rate of $21 per month for zero to 20 000 gallons a month. Additionally, you will receive a
higher level of quality water not available from your current water source.
A co~plete copy of this "Application for Approval" is on file at our office:
364 Stoneridge Road
Blanchard, ID 83804
[phone]
and is available for public inspection during the business hours of 8AM to 6PM Monday
through Friday.
Sincerely,
Dean Allara
Managing Member, CDS Stoneridge Utilities, LLC