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HomeMy WebLinkAbout20050823Rhead affidavit.pdfDean J. Miller McDEVITT & Mll.-LER LLP 420 West Bannock Street O. Box 2564-83701 Boise, ill 83702 Tel: 208.343.7500 Fax: 208.336.6912 Joe (g) mcdevitt - miller.com r~CEIVEO '-"' titL_._ r"= ll"'C f; , , : 4'JJW0 g\~ 't it) HO t)UELIC' ' -r I ! ' '' " f'o ~ l '"' U I Lit i L ~ T'If\ b Attorneys for Applicant ORI GINAL BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF UNITED WATER IDAHO INC. FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO Case No. DWI - W -04- AFFIDAVIT OF SCOTT RHEAD STATE OF IDAHO County of Ada :ss Scott Rhead, being first duly sworn upon an oath, deposes and says: I am the Managing Engineer for United Water Idaho Inc. In that capacity I have been responsible for negotiations with respect to the intended one-year lease of the Initial Butte water right. The lease agreement was conditional upon Idaho Department of Water Resources ' (IDWR) review of eligibility criteria set forth in the Snake River Basin Water Right Acquisition Program set forth in the Invitation for Offers to Sell dated December 7 2004. At the time of the hearing the proposed amount was 11 992 acre feet. IDWR, however only approved 3 240 acre feet as eligible for payment on July 29, 2005. Attached hereto is the final Addendum to Water Right Lease Agreement as executed by the Company and approved IDWR. Pursuant to the Addendum Agreement the AFFIDA VIT OF SCOTT RHEAD - total annual lease payment to be received by the Company is the sum of $53,460, less a ten percent (10%) administrative fee payable to IDWR, for a net rent of $48 114. I am over the age of 21 years and make this affidavit of my own knowledge. Dated this day of August, 2005. Scott Rhead SUBSCRIBED AND SWORN to before me this .a1 day of August, 2005. ci t -tt No for D?AHO ResIdIng at Commission Exp.Dt'o-,;) ....O)t AFFIDAVIT OF SCOTT RHEAD - 2 CERTIFICATE OF SERVICE I hereby certify thaI on the ~~ay of August, 2005, I caused to be served, via themethodes) indicated below, true and correct copies of the foregoing document, upon: Brad M. Purdy Attorney for the Community Action Partnership Association of Idaho 2019 North 17tl1 Street Boise, Idaho 83702 Fax: 208.384.8511 bmpurd V (g) hotmai I.com William M. Eddie Advocates for the West O. Box 1612-83701 1320 West Franklin Street Boise, Idaho 83702 Fax: 208.342.8286 billeddie (g) rmci. net Bill Sedivy :. Idaho Rivers United O. Box 633 Boise, Idaho 83701 Fax: 208.343.9376 iru (g) idahori vers .org Sharon Ullman 9627 West Desert A venue Boise, Idaho 83709 Fax: 362-0843 sharonu (g)cableone.net Chuck Mickelson Boise City Public Works O. Box 500-83701 150 North Capitol Boulevard Boise, Idaho 83702 Fax: 208.384.7841 cmickelson (g)citvofboise.org Douglas K. Strickling Boise City Attorney s Office O. Box 500-83701 150 North Capitol Boulevard Boise, Idaho 83702 Fax: 208.384.4454 dstrickling (g)citvofboise.org AFFIDAVIT OF SCOTT RHEAD - 3 Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email Hand Delivered S. Mail Fax Fed. Express Email rt/ Scott L. Campbell Hand Delivered Moffatt Thomas S. Mail101 South Capitol Blvd., 10tlJ. Floor FaxO. Box 829-83701-0829 Fed. ExpressBoise, Idaho 83702 EmailFax: 208.385.5384 sic (g)moffattcom Mark Gennari Hand Delivered United Water Management S. Mail200 Old Hook Road FaxHarrington Park, NJ 07640-1799 Fed. ExpressMark. Gennari (g)UnitedWater.com Email AFFIDAVIT OF SCOTT RHEAD - 4 LEASE SUMMARY: Lease No. Lessee: United Water Water Rigbt Nos. 02-2341, 02-2358, 02-2420, 02-2339 ADDENDUM TO WATER RIGHTS LEASE AGREEMENT This Addendum Agreement ("Addendum ) made and entered into between the undersigned UNITED WATER IDAHO INC., P.O. Box 190420, Boise, Idaho 83719- 0420 ("Lessor"), and IDAHO GROUND WATER APPROPRIATORS, INC. ("IGWA" acting for and on behalf of American Falls-Aberdeen , Bingham, Bonneville, Jefferson Magic Valley, North Snake and Southwest Irrigation Districts, whose address is P. Box 1391 , Pocatello, Idaho 83204 (collectively "Lessee ) for the purpose of amending the Water Rights Lease Agreement entered into between the parties May 11,2005: A. WHEREAS, Lessor and IGWA entered into a Water Rights Lease Agreement dated May 11 , 2005 ("Lease ); and B. WHEREAS, the Lease provided in paragraph 3 that the total acres and rent would be subject to adjustment based upon IDWR's review of Lessor s water rights and determination of eligible and qualifying acres; and C. WHEREAS, based upon IDWR's review and "Summary of Eligible Acres dated July 7, 2005 , copy of which is attached, Lessee s eligible acres and volume has been determined as set forth in said Summary resulting in a change in the amount of rent; and D. WHEREAS, the parties enter into this Addendum Agreement for the purpose of amending the Lease and reflecting the actual acres eligible, volume eligible and rent payment. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Paragraph 1 of the Lease is amended to reflect the following corrected acres and volume: Acres EIi~Volume Eligible 720.3240. 2. Paragraph 3 is amended to reflect the total rent of $53,460., one-half of which has been paid, with the remaining one-half due on December 1 , 2005 , less the ten percent (100/0) administrative fee to IDWR. LEASE OF WATER RIGHTS - 3. Except as above amended , the Lease between the parties is hereby reaffirmed and shall remain in full force and effect. DATED this day of August, 2005. LESSOR: UNITED WATER IDAHO INC. By: LESSEE: IDAHO GROUND WATER APPROPRIATORS, INC. TIM DEEG, Pre tient By: ATTESTED: RANDALL C. BUDGE, Secretary 20 0 5 L E A S E A N D R E N T A L O F H I G H - LI F T S N A K E R I V E R W A T E R R I G H T S TH R O U G H T H E I D A H O W A T E R S U P P L Y B A N K BY I D A H O G R O U N D W A TE R A P P R O P R I A T O R S AM O U N T E L I G I B L E F O R L E A S E I R E N T A L 2 PA Y M E N 1 2 To t a l P a y m e n t 1 Pa y m e n t 1 Ad m i n i s t r a t i v e Es t i m a t e d T o t a l PO R T I O N S O F Ac r e s E l i g i b l e Vo l u m e E l i g i b l e Pa y m e n t R a t e by I G W A to E n t i t y Fe e t o I D W R Re n t a l P a y m e n t WA T E R R I G H T S Wa t e r R l a h t O w n e r s 1 fo r L e a s e ( a e l fo r L e a s e / R e n t a l ( a f l 'o n e e / a f l (5 0 " of e s t i m a t e d To u r l l 11 0 " P a v m 8 n t 1 1 (1 0 " P a v m e n t by I G W A LE A S E D / R E N T E D Ala c a n o F a m i l y , L L C . 38 0 . 11 4 1 . $3 8 . $2 1 , 97 3 . $1 9 , 77 6 . $2 , 19 7 . $4 3 , 94 7 . 10 0 3 4 , 10 0 4 3 Cl o v e r H o l l o w , L L C . 24 7 0 . 74 1 0 . $3 8 . $1 4 2 , 64 8 . $1 2 8 , 38 3 . $1 4 , 26 4 . $2 8 5 29 6 . 23 8 6 , 23 8 7 . 23 8 8 , 71 4 8 31 4 1 . 94 2 4 . $3 8 . $1 8 1 , 42 7 . $1 6 3 , ~ 8 4 . $1 8 , 14 2 . 7 4 $3 6 2 85 4 . 23 6 1 , 70 0 1 , 10 0 2 0 Fa l c o n B u t t e F a a m s I n c . -M u m h Y F l a t s Fa l c o n ' B u t t e F a a m s - M u r p h y F l a t s 16 5 . 23 5 . $3 8 . $4 , 52 3 . $4 , 01 1 . $4 5 2 . 04 7 . 70 0 1 St o r a a e C l a i m 2 - 70 0 1 Fa l c o n B u t t e F a r m s , I n c . - Sin k e r B u t t e 19 0 6 . 57 2 0 . $3 8 . $1 1 0 ; 1 1 1 . 9 3 $9 9 , 10 0 . $1 1 , 01 1 . $2 2 0 22 3 . 22 5 1 10 0 1 7 Gr i n d s t o n e B u t t e M u t u a l C a n a l C o . 72 6 9 . 21 8 0 7 . $3 8 . $4 1 9 , 78 4 . $3 7 7 , 80 6 . $4 1 , 97 8 . $8 3 9 56 9 . 22 6 2 Ha r t l e y , D o n 50 2 . 15 0 7 . $3 8 . $2 9 , 02 5 . $2 6 12 2 . 6 4 $2 , 90 2 . 5 2 $5 8 05 0 . 23 6 1 23 7 0 70 0 1 . 10 0 2 0 Hu l e t , B l a i n e 56 9 . 17 0 8 . $3 8 . $3 2 , 88 8 . $2 9 . 59 9 . $3 , 28 8 . $6 5 23 6 1 70 0 1 10 0 2 0 Mo r r i s , G . P a t r i c k & J . M i c k e y 81 1 . 24 3 3 . $3 8 . $4 6 , 85 2 . $4 2 , 1 6 7 . $4 , 68 5 . $9 3 70 5 . 21 8 6 10 2 4 9 Sa i l o r C r e e k W a t e r C o m p a n y 11 9 . 35 8 . $3 8 . $6 , 90 1 . $6 , 21 1 . $6 9 0 . $1 3 80 2 . 10 0 3 5 10 0 4 3 So u t h E l m o r e I r r i g a t i o n C o . . I n c . 34 8 3 . 4 10 4 5 0 . 2 $3 8 . $2 0 1 , 16 6 . $1 8 1 , 04 9 . $2 0 , 11 6 . $4 0 2 33 2 . 22 1 0 22 6 9 23 6 7 Un i t e d W a t e r I d a h o , I n c . 72 0 . 32 4 0 . $1 6 . $2 6 , 73 0 . 00 . $2 4 , 05 7 . $2 , 67 3 . $5 3 , 46 0 . 23 3 9 , 23 4 1 , 23 5 8 24 2 0 TA B L E I : S U M M A R Y O F E L I G I B L E A C R E A G E A N D P A Y M E N T N O . 1 F O R L E A S E A N D R E N T A L TO T A L S : 21 , 54 0 . 65 , 43 7 . $1 , 22 4 , 03 3 . $1 , 10 1 , 63 0 . $1 2 2 , 40 3 . $2 , 44 1 , 06 7 . I T h e I d a h o G r o u n d W a t e r A p p r o p r i a t o r s ( I G W A ) e n t e r e d i n t o p r i v a t e l e a s e a g r e e m e n t s r p r i v a t e a g r e e m e n t s " ) w i t h e n t i t i e s w h o e i t h e r o w n w a t e r r i g h t s o r h a v e t h e a u t h o r i t y t o l e a s e w a t e r r i g h t s t o t h e W a t e r S u p p l y B a n k ( b a n k ) . I G W A f i l e d a p p l i c a t i o n s t o le a s e a n d r e n t p o r t i o n s o f t h e s e r i g h t s t o t h e b a n k a n d a t t a c h e d t h e p r i v a t e a g r e e m e n t s a s e v i d e n c e o f t h e a u t h o r i t y t o f i l e o n b e h a l f o f t h e w a t e r r i g h t o w n e r s . I G W A r e p r e s e n t s t h e L e s s o r i n th e l e a s e w i t h t h e b a n ~ a n d w i l l i s s u e i n d i v i d u a l p a y m e n t s t o t h e wa t e r r i g h t o w n e r s . 2 T h e " Aa e s E l i g i b l e f o r L e a s e " r e p r e s e n t s t h e n u m b e r o f a c r e s d e t e r m i n e d t o b e e l i g i b l e f o r p a y m e n t b a s e d o n c r i t e r i a s e t f o r t h i n t h e p r i v a t e a g r e e m e n t s b e t w e e n I G W A a n d t h e w a t e r r i g h t o w n e r s , a n d i n a c c o r d a n c e w i t h W a t e r S u p p l y B a n k r u l e s . Th e ' Vo l u m e E l i g i b l e f o r L e a s e l R e n t a l " r e p r e s e n t s t h e v o l u m e o f w a t e r d e t e r m i n e d t o b e e l i g i b l e l e a s e a n d r e n t a l . W I t h t h e e x c e p t i o n o f U n i t e d W a t e r I d a h o r i g h t s a n d a po r t i o n o f t h e l a n d s o f f e r e d b y F a l c o n B u t t e F a a m s , t h e d i v e r s i o n v o l u m e w a s c a l c u l a t e d at 3 . 0 a c r e - f e e t p e r a n n u m p e r aa e ( a t y / a c ) b a s e d o n t h e h i s t o r i c di v e r s i o n p e r a c r e r e c o g n i z e d i n p r e v i o u s l e a s i n g p r o g r a m s b y I D W R a n d R e c l a m a t i o n . I n c o n f o r m i t y w i t h a n a p p r o v e d p e r m a n e n t E x c h a n g e b e t w e e n R e c l a m a t i o n a n d U n i t e d W a t e r I d a h o IG W A o f f e r e d t h e f u l l v o l u m e a u t h o r i z e d u n d e r t h e W a t e r r i g h t s ( 4 . 5 a t y / a e ) i n p r i v a t e l e a s e a g r e e m e n t w i t h U n i t e d W a t e r I d a h o . T h e D e p a r t m e n t h a s a g r e e d t o r e c o g n i z e a w i t h d r a w a l v o l u m e o f 4 . 5 a t y / a c f o r t h e a m o u n t o f w a t e r s h o w n t o h a v e b e e n d i v e r t e d th r o u g h t h e 2 0 0 4 E x c h a n g e o n t h e B o i s e R i v e r . U n i t e d W a t e r p r o v i d e d i n f o r m a t i o n d o c u m e n t i n g a d i v e r s i o n o f 3 2 4 0 a f i n 2 0 0 4 a n d i s t h e r e f o r e o b l i g a t e d t o i d l e 7 2 0 a c r e s wit h i n t h e p l a c e o f u s e d e s c r i b e d b y t h e S n a k e R i v e r w a t e r r i g h t s . T h e v o l u m e as s o c i a t e d w i t h F a l c o n B u t t e F a a m s I n c . - S t o r a g e C l a i m ( n o . 4 ) r e f l e c t s t h e v o l u m e a u t h o r i z e d un d e r w a t e r r i g h t 2 - 70 0 1 a n d i s a p p l i e d t o 1 6 5 . 9 a c r e s u n d e r t h i s L e a s e A c c e p t a n c e . Th e " Pa y m e n t R a t e " w a s n e g o t i a t e d b e t w e e n I G W A a n d t h e w a t e r r i g h t o w n e r s . I t i n c l u d e s t h e t e n ( 1 0 % ) a d m i n i s t r a t i v e f e e t o b e a e d i t e d t o t h e w a t e r s u p p l y b a n k i n a c c o r d a n c e w i t h W a t e r S u p p l y B a n k ru l e s . 3 " T o t a l P a y m e n t 1 b y I G W A - w a s c a l c u l a t e d b a s e d o n o n e h a l f ( 5 0 % ) o f t h e - Es t i m a t e d T o t a l R e n t a l P a y m e n t b y I G W A - . F o r t h e p u r p o s e s o f t h e f i r s t p a y m e n t , a l l o f t h e e l i g i b l e a c r e s w e r e c o n s i d e r e d t o h a v e b e e n l e f t i d l e i n a c c o r d a n c e w i t h c r i t e r i a s e t f o r t h in t h e p r i v a t e a g r e e m e n t s , a n d t h e w a t e r s u p p l y b a n k l e a s e a c c e p t a n c e a n d t h e r e n t a l a g r e e m e n t b e t w e e n I G W A a n d t h e W a t e r S u p p l y B a n k . C o m p l i a n c e w i l l b e m o n i t o r e d t h r o u g h o u t t h e i r r i g a t i o n s e a s o n . " Pa y m e n t 1 t o E n t i t y " r e p r e s e n t s n i n e t y p e r c e n t (9 0 % ) o f t h e T o t a l P a y m e n t 1 , a n d t h e " Ad m i n i s t r a t i v e F e e " r e p r e s e n t s r e m a i n i n g t e n p e r c e n t ( 1 0 % ) . T o t a l P a y m e n t 1 b y I G W A = ( A a e s E l i g i b l e f o r L e a s e ) x ( P a y m e n t R a t e p e r A a e ) x ( 5 0 % ) ; Pa y m e n t 1 t o E n t i t y = ( T o t a l P a y m e n t 1 b y I G W A ) x ( 9 0 % ) . No t e : I G W A i s t h e l e s s o r a n d r e n t e r i n t h i s t r a n s a d i o n . T h e r e f o r e , I G W A i s r e q u i r e d t o pa y o n l y t h e 1 0 % A d m i n i s t r a t i v e F e e t o I D W R a n d w i l l i s s u e I n d i v i d u a l p a y m e n t s t o t h e w a t e r r i g h t o w n e r s o r e n t i t i e s . Up d a t e d : 0 7 0 7 2 0 0 5 20 0 5 R E N T A L O F H I G H - LI F T S N A K E R I V E R W A T E R R I G H T S TH R O U G H T H E I D A H O W A T E R S U P P L Y B A N K BY I D A H O G R O U N D W A T E R A P P R O P R I A T O R S AM O U N T E L I G I B L E F O R R E N T A L I AY M E N T 1 ; s To t a l P a y m l i n t 1 Pa y m e n t 1 Ad m i n i s t r a t i v e Es t i m a t e d T o t a l PO R T I O N S O F Ac r e s E l i g i b l e Vo l u m e E l i g i b l e Pa y m e n t R a t e by I G W A to E n t i t y Fe e t o I D W R Re n t a l P a y m e n t WA T E R R I G H T S Wa t e r R i g h t O W n e r s 1 fo r R e n t ( a c ) fo r R e n t a l ( a f ) (p r i c e / a f ) (5 0 % of E s t i m a t e d To m ' J (9 0 % Pa y m e n t (1 0 % P a y m e n t bY I G W A RE N T E D Lit t l e V a l l e y M u t u a l I r r i g a t i o n C o m p a n y 19 9 . 59 7 . $2 0 . $6 , 15 5 . $5 , 53 9 . $6 1 5 . $1 2 , 31 0 . 24 4 2 , 2 - 24 4 3 , 2 - 70 3 0 , 2 - 70 6 8 72 2 1 Mo n t i e r t h , E d w a r d R a y , 51 4 . 1~ . $2 0 . $1 5 , 91 0 . $1 4 31 9 . $1 , 59 1 . $3 1 , 82 0 . 21 9 1 B Su s a n & H e r b e r t R . Sn a k e R i v e r R a n c h , L t d . 76 1 . 4 22 8 4 . $2 0 . $2 3 , 52 7 . $2 1 , 17 4 . $2 , 35 2 . $4 7 , 05 4 . 23 7 9 TA B L E I . S U M M A R Y O F E L I G I B L E A C R E A G E A N D PA Y M E N T N O 1 F O R R E N T A L O F W A T E R TO T A L S : 47 & . 42 6 . $4 5 , 59 2 . $4 1 , 03 3 . $4 , &5 9 . $9 1 , 18 5 . 1 T h e I d a h o W a t e r R e s o u r c e B o a r d ( I W R B ) e n t e r e d i n t o p r i v a t e l e a s e a g r e e m e n t s ( " p r i v a t e a g r e e m e n t s " ) w i t h e n t i t i e s w h o e i t h e r o w n w a t e r r i g h t s o r h a v e t h e a u t h o r i t y t o l e a s e w a t e r r i g h t s t o t h e W a t e r S u p p l y B a n k ( b a n k ) . T h e rig h t s , o r p o r t i o n s t h e r e o f , w e r e l e a s e d t o t h e W a t e r S u p p l y B a n k t o m a k e w a t e r a v a i l a b l e f o r m i t i g a t i o n p u r p o s e s d u r i n g t h e 2 0 0 5 i r r i g a t i o n s e a s o n . 2 T h e " Ac r e s E l i g i b l e f o r L e a s e " r e p r e s e n t s t h e n u m b e r o f a c r e s d e t e r m i n e d t o b e e l i g i b l e f o r p a y m e n t b a s e d o n c r i t e r i a s e t f o r t h i n t h e p r i v a t e a g r e e m e n t s b e t w e e n I W R B a n d t h e w a t e r r i g h t o w n e r s . a n d i n a c c o r d a n c e w i t h W a t e r Su p p l y B a n k r u l e s . Th e " Vo l u m e E l i g i b l e f o r L e a s e / R e n t a l " r e p r e s e n t s t h e v o l u m e o f w a t e r d e t e r m i n e d t o b e e l i g i b l e l e a s e a n d r e n t a l . T h e d i v e r s i o n v o l u m e w a s c a l c u l a t e d a t 3 . 0 a c r e - f e e t p e r a n n u m p e r a c r e ( a t y / a c ) b a s e d o n t h e h i s t o r i c d i v e r s i o n pe r a c r e r e c o g n i z e d i n p r e v i o u s l e a s i n g p r o g r a m s b y I D W R a n d R e c l a m a t i o n . Th e " Pa y m e n t R a t e " w a s n e g o t i a t e d b e t w e e n I W R B a n d t h e ' wa t e r r i g h t o w n e r s . I t i n c l u d e s t h e t e n ( 1 0 % ) a d m i n i s t r a t i v e f e e t o b e c r e d i t e d t o t h e w a t e r s u p p l y b a n k In a c c o r d a n c e w i t h W a t e r S u p p l y B a n k r u l e s . 3 " T o t a l P a y m e n t 1 b y I G W A " w a s c a l c u l a t e d b a s e d o n o n e h a l f ( 5 0 % ) o f t h e " Es t i m a t e d T o t a l R e n t a l P a y m e n t b y I G W A " . F o r t h e pu r p o s e s o f t h e f i r s t p a y m e n t , a l l o f t h e e l i g i b l e a c r e s w e r e c o n s i d e r e d t o h a v e b e e n l e f t i d l e i n ac c o r d a n c e w i t h c r i t e r i a s e t f o r t h I n t h e p r i v a t e a g r e e m e n t s , a n d t h e w a t e r s u p p l y b a n k l e a s e a c c e p t a n c e a n d t h e r e n t a l a g r e e m e n t b e t w e e n I G W A a n d t h e W a t e r S u p p l y B a n k . C o m p l i a n c e w i l l b e m o n i t o r e d t h r o u g h o u t t h e ir r i g a t i o n s e a s o n . " Pa y m e n t 1 t o E n t i t y " r e p r e s e n t s n i n e t y p e r c e n t ( 9 0 % ) o f t h e T o t a l P a y m e n t 1 , a n d U t e " Ad m i n i s t r a t i v e F e e " r e p r e s e n t s r e m a i n i n g t e n p e r c e n t ( 1 0 % ) . T o t a l P a y m e n t 1 b y I G W A = ( A c r e s E l i g i b l e f o r L e a s e ) x (P a y m e n t R a t e p e r A c r e ) x ( 5 0 % ) ; P a y m e n t 1 t o E n t i t y = ( T o t a l P a y m e n t 1 b y I G W A ) x ( 9 0 % ) . N o t e : IG W A i s t h e r e n t e r i n t h i s t r a n s a c t i o n a n d i s r e q u i r e d t o p a y t h e a m o u n t i d e n t i f i e d u n d e r T o t a l P a y m e n t 1 t o t h e w a t e r s u p p l y ba n k . , A 1 0 % A d m i n i s t r a t i v e F e e wU l b e r e t a i n e d , a n d t h e I D W R a n d w i l l I s s u e i n d i v i d u a l p a y m e n t s t o t h e w a t e r r i g h t o w n e r s o r e n t i t i e s . Up d a t e d : 0 7 0 8 2 0 0 5