20081010Pinardi Affidavit.pdf

../
..ORIGINAL
0E. Cf=lvi:n,\.... .1-. ',,,;jb,'"
Dean J. Miler ISB #1968
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise,ID 83702
Tel: [phone]
Fax: [phone]
joe!fmcdevitt-miller .com
2008 OCT l 0 PH I: 32
IDAHO PUStle
UTILITIES COMMISSION
Attorneys for Teton Springs Water & Sewer Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
TETON SPRINGS WATER AND SEWER
COMPANY LLC, INC, FOR THE ISSUANCE
OF A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY, FOR
APPROVAL OF RATES AND CHARGES FOR
WATER SERVICE, FOR APPROVAL OF
RULES AND REGULATIONS GOVERNING
THE RENDERING OF WATER SERVICE.
STATEOFIDAHO )
County of Ada )
) Case No. TTS-W-08-01
)
) AFFIDAVIT OF JON PINARDI
)
)
)
)
)
)
Jon Pinardi, being first duly sworn upon an oath, deposes and says:
1. I am the general manager of Teton Springs Water and Sewer Company ("Teton Springs"
or the "Company") and make this Affdavit to respond to certin points contained in the Sta
Comments, filed herein on September 5, 2008. I am over the age of21 years and make this
Affdavit of my own knowledge.
2. Staff Comments at page 12 recommend that the Company install meters for the
approximately fift (50) service lines previously installed without meters. Based on my
AFFIDAVIT OF JON PINARDI- 1
experience in the operation of Teton Springs, I estimate of the cost of complying with this
recommendation would be approximately $750 per unit for a total of$37,500.
If the other Staff recommendations regarding the Company's allowed revenue
requirement are accepted Teton Springs wil not have adequate cash flow to fud such a project,
and in my opinion, the financial condition of the Company would be so weakened borrowing of
the funds from a commercial lender would be impossible.
3. Staff Comments at page 15 recommend that the Company undertake a more aggressive
meter reading program than initially proposed by the Company. Based on historical experience I
calculate the additional cost of complying with Staff s proposal is approximately $9,310 per year
(200 homes ~ 10 minutes per home x 4 readings per year = 8,000 minutes = 133 Hour ~ $70
per hour = $9,310).
4. As noted in Staff Comments, despite adequate public notice, no customers attended the
Staff sponsored public workshop. The Commission has received only two wrtten comments
from customers. Staff Comments speculate this "may be due to the fact that Teton Springs is a
resort where residences are not occupied year around. (Staff Comments, Pg. 20). In my
experience, customers and lot owners within the development closely monitor matters relating to
water service and are not hesitant to express disagreement when policies of the water system are
thought to be objectionable. For, example, the earlier effort to create a water and sewer district
was thwared by adverse customer reaction. I believe a more likely explanation for the lack of
customer comment in this case is that customers do not object to the Company's rate proposals.
With respect to the two written comments received by customers, it should be noted both
of the persons who submitted comments are plaintiffs in pending civil litigation. It is tre that
the Teton Springs development is not immune to the nation-wide deterioration in real estate
AFFIDAVIT OF JON PINARDI- 2
markets. Resort communities such as Teton Springs have been paricularly hard-hit. In
consequence, I anticipate very limited, if any, customer growth for the Company in the
immediate futue and Teton Springs may experience a decline in the number of active customers.
I believe ths circumstace makes the need for an availability charge even more compellng-it
will avoid loading the fixed costs of the utilty onto a potentially shrinking customer base.
5. Given these economic circumstances, it is likely the Company wil be required to incur
legal expenses to collect delinquent customer accounts and possibly represent its interests in
foreclosure or banptcy proceedings. These activities, hopefully, wil protect the Company's
existing customers from increased bad debt expense that would have to be recovered in rates. In
my experience, Teton Springs can expect to pay at least $200 per hour for competent legal
representation. The Staff recommended allowance for ongoing legal expense of$1,332 would
provide for less than 7 hours of legal services, which is far below the level of legal effort that
wil be required in the foreseeable future.
6. Furer your affiant sayeth not.
Dated this 10 day of October, 2008.
State of Idaho )
:ss
County of ÁQ l'c::L.. )
On this \0 day of October, 2008, before me, the undersigned, a Notary Public in and said
State, personally appeared Jon Pinardi, known or identified to me to be the person whose name is
subscribed to the within instrument, and acknowledged to me that he executed the same, and that the
statements therein contained are true to the best of his knowledge and belief.
IN WITNESS WHREOF, I have hereunto set my hand and affxed my offcial Seal the day and
year in this certificate first above written.
SHANNON R. HERNDON
NOTARY PUBLIC
STATE OF IDAHO
¿- \. I' \\,,~"-v- ...._~ ~l. ~..-~,_
Notary Public for IDAHO
Residing at: \.) ilò\s t "0
Commission Exp.: \\ . Ol ' cfi~
AFFIDA VIT OF JON PINARDI- 3
CERTIFICATE OF SERVICE
I hereby certify that on the ffy of October, 2008, I caused to be served, via the
method(s) indicated below, true and correct copies of the foregoing document, upon:
(LJean Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
Boise,ID 83720-0074
jjewell!fpuc.state.id. us
Scott Woodbur
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise,ID 83720-0074
jjewell~puc.state.id. us
AFFIDAVIT OF JON PINARDI- 4
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
~..ù
~..
~..
)L
~..ù
~..
~..