20091217notice_of_application_trh.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
December 17 2009
IN THE MATTER OF THE PURCHASE AND
SALE OF TROY HOFFMAN WATER
CORPORATION (CERTIFICATE OF
CONVENIENCE AND NECESSITY NO. 280)
CASE NO. TRH-09-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on November 12, 2009, an Application was
filed with the Idaho Public Utilities Commission (Commission) requesting approval of the sale
of Troy Hoffman Water Corporation (THWC) by Bentwood Park LLC to Dalton Square LLC.
Dalton Square will operate the THWC as a corporation and continue to operate under the THWC
name. The Application is solely for approval of the change of ownership.
Dalton Square is familiar with the Commission s regulatory authority and rules and is
prepared to abide by existing directives. They are aware of the Commission s website and have
made themselves familiar with the Utility Customer Relations Rules (IDAPA 31.21.01) and
Utility Customer Information Rules (IDAPA 31.21.02.). Dalton Square is familiar with the
water system testing requirements of the Idaho Department of Environmental Quality and is
prepared to fulfill those ongoing requirements.
Dalton Square represents that it has the business experience, financial ability and
water system expertise to operate and maintain the system. Dalton Square is owned by Ron
Stadley and Ken Murren and was formed in 2006. Dalton Square owns light industrial buildings
for rent in Coeur d' Alene as well as apartments for rent in Plummer. Mr. Stadley has been the
water master for THWC since 1995 and is qualified to operate a pressurized potable water
system, both through his hands-on experience of handling the day-to-day operations
maintenance and emergencies as well as through being licensed as a drinking water operator
which requires ongoing continuing education classes. Mr. Stadley holds a current Drinking
Water Operator License. Mr. Stadley has also been an electrician since 1988 and owns his own
electrical company. He holds a master electrician license in four states. Mr. Murren has 25
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
years of experience in commercial and residential construction. He owns a general contracting
and landscaping business and specializes in custom homes. He is currently in the process of
preparing to take his tests to receive both his Drinking Water Operator License and Backflow
Assembly Tester License.
There is no deed transferring title to the water system because THWC is the
corporation that owns the real estate and Dalton Square is purchasing the corporation. Included
with the Application are copies of the Purchase and Sale Agreement between Bentwood Park and
Dalton Square. The transfer of ownership:toQk place April 1 , 2009. Also included is a copy of
the Drinking Water Operator License held by Ron Stadley, a copy of Dalton Square s Certificate
of Existence from the Idaho Secretary of State, and a copy of the Idaho Tax Commission s 2009
Valuation ofTHWC for $16 081.
The Purchase and Sale Agreement, Attachment A to the Application, shows the
purchase price of $65 000 as the value the seller and buyer agreed upon for sale/purchase of
THWC. Dalton Square acknowledges that it is aware that the valuation of the system by the
Commission will be the basis established by the Commission at the time the present rates were
established and adjusted for additional depreciation and improvements. Dalton Square
understands it is its responsibility to justify any additions to the valuation.
Included with the filing also is a brief business plan which explains how Dalton
Square intends to incorporate the THWC into its other business interests and a copy of notice
sent to customers on November 10 2009 , informing them of the sale.
Dalton Square acknowledges that:it understands that accounting for the water system
must be in accordance with the Commission s Uniform System of Accounts and must be
maintained on a stand-alone basis separate and apart from any other business activities of the
buyer. It is the intent ofthe buyer to continue to use the services of All Service Electric to do the
billing for the water system and to complete and meet the Commission s accounting
requirements. All Service Electric has been doing the billing for THWC for the last three years.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. TRH-09-01. The Commission has preliminarily found that the public
interest in this matter may not require a hearing to consider the issues presented and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
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submission rather than by hearing.Reference Commission Rules of Procedure IDAP A
31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to THWC's Application and the use of Modified Procedure in Case No.
TRH-09-0l is Friday, January 15,2010.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If comments or protests are filed within the deadline
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. TRH-
W -09-01 should be mailed to the Commission and the Company at the addresses reflected
below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Seller:
Bentwood Park LLC
c/o H. James Magnuson
PO Box 2288
Coeur d' Alene, ID 83816
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Purchaser:
Dalton Square LLC
Attn: Ron Stadley
710 W. Dalton Avenue, Suite B
Coeur d' Alene, ID 83815
All comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. TRH-09-
and Purchase and Sale Agreement may be viewed at www.puc.idaho.gov by clicking on "File
Room" and "Water Cases " or can be viewed during regular business hours at the Idaho Public
Utilities Commission, 472 W. Washington Street, Boise, Idaho.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
-titDATED at Boise, Idaho this day of December 2009.
MPTON, P SIDENT
!J~
MARSHA H. SMITH, COMMISSIONER
lONER
ATTEST:
J a D. Jewel
Commission Secretary
bls/O:TRH-09-01 sw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE