20180709Decision Memo.pdf

DECISIOI\ MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDITH PACILLO
DEPUTY ATTORNEY GENERAL
DATE: July 5,2018
SUBJECT:IN THE MATTER OF THE APPLICATION OF JD RESORT TO
ACQUIRE CDS STONERIDGE UTILITIES, LLC WATER COMPANY
AND TRANSFER CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY NO.395; CASE NO. SWS-W-18-01
On June 22, 2018, the Commission received correspondence from JD Resort, Inc.
("JD Resort") seeking Commission approval for CDS Stoneridge Utilities, LLC ("CDS") to sell
its water company and transfer existing Certificate of Public Convenience and Necessity No. 395
to JD Resort.
In its cover letter to the Commission, JD Resort stated that JD Resort is the buyer of
CDS, but that upon closing JD Resort plans to form a new utility company. The purchase and
sale agreement, however, shows Esprit Enterprise, LLC as buyer.
The application also includes various licenses granted to Keith D. Rusho by the Idaho
Bureau of Occupational Licenses, but the application does not state Mr. Rusho's role in the
transaction.
The application also includes an unaudited personal financial statement of Chan
Karupiah, "self employed." Mr. Karupiah, however, executed the purchase and sale agreement
in his capacity as Manager of Esprit Enterprises,LLC, not in his individual capacity.
Staff will attempt to resolve these issues through the investigation and discovery process.
The application also includes a certificate of incorporation, certificate of existence, and
articles of incorporation of JD Resort from the Idaho Secretary of State.
DECISION MEMORANDUM I
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and set a
deadline for petitions to intervene 2l days from the service date of the Order. After the
intervention deadline has passed, Staff will propose a schedule for processing the case.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and set a deadline for
petitions to intervene of 2l days from the service date of the Order?
acillo
Deputy Attorney General
SWS-W-18-01 dec ep
2DECISION MEMORANDUM