20051109Comments.pdf

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SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 1895
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
HILL VIEW DEVELOPMENT CORPORATION
TO OBTAIN WATER SERVICE TO COVENANT)
HILL SUBDIVISION, AN AREA WITHIN THE
CERTIFICATE BOUNDARIES OF BOTH
EAGLE WATER COMPANY AND UNITED
WATER IDAHO INC.
CASE NO. EAG-O5-
UWI-O5-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of
Petition, Notice of Proposed Order and Notice of Comment Deadline issued on October 19, 2005
submits the following comments.
BACKGROUND
On October 7 2005, Hillview Development Corporation (Hillview) filed a Petition with the
Idaho Public Utilities Commission (Commission) requesting water service to Covenant Hill
subdivision, an area located at 1501 and 1601 West Floating Feather Road in Eagle, Idaho. The site
is 48.54 acres and has recently been approved by the Eagle City Council for development of 41
single-family lots.
STAFF COMMENTS NOVEMBER 9 , 2005
A portion of the proposed Covenant Hill subdivision is within the certificated service area of
Eagle Water Company (Eagle Water), and a portion is within the certificated service area of United
Water Idaho Inc. (United Water). Attachment A is a map showing the location of the Covenant Hill
subdivision in relation to the certificated area boundaries of the two companies. Hillview requests
that United Water provide water service to the subdivision.
On October 19, 2005 , the Commission issued a proposed order that included the following
findings:
Based on the foregoing and the need for expeditious treatment of the request for
service, the Commission finds that the public convenience and necessity requires us
to approve the Petition of Hillview Development Corporation and authorize water
service to Covenant Hill subdivision by United Water, Idaho Inc. In doing so, we
find Hillview s request for a single water provider to the subdivision to be
reasonable. We also find United Water to be capable of providing adequate service
in a timely manner and to have demonstrated a willingness to provide service.
Proposed Order at 2.
STAFF ANALYSIS
Hillview is constructing a pressurized irrigation system for the subdivision and requires only
potable water from a water company. Because the site is relatively small and will comprise only
lots, it is Hillview s desire to have only one water company provide service to the site. Only five of
the 41 lots lie within the current certificated area boundaries of United Water. Staff believes that it
would not be practical to split the subdivision so that five lots are served by United Water while the
remainder are served by Eagle Water. Staff agrees with Hillview that only one water company
should provide water service to the entire subdivision.
It is Staffs understanding that Hillview first approached Eagle Water requesting service.
As represented in the filed Petition, Eagle Water Company informed Hillview that there was a
water line at the northeast corner of the site that could provide service to the Covenant Hill
subdivision. However, Eagle Water to guarantee adequate service believed that it would be
necessary to loop its primary main line from both the north and south sides of the subdivision.
Eagle Water s nearest, and one of its most productive wells, is located south of the Covenant Hill
subdivision. In addition, it is good engineering practice to loop main lines. Extending a main line
from the south, however, would require that Eagle Water obtain several easements from adjacent
property owners.
STAFF COMMENTS NOVEMBER 9 2005
It is Hillview s belief based on contact with Eagle Water representatives that there has been
no effort put forth to acquire the necessary easements, nor has Eagle Water provided any assurance
that it can meet the required fire flows for the subdivision (i., a minimum of 2 000 gallons per
minute measured at 20 psi for a duration of 2 hours for homes up to 6 200 square feet).
Staff has discussed Hillview s request for service with Eagle Water. Eagle Water admits
that it has made no effort to acquire the necessary easements. Eagle Water further admits that
unless additional information is provided to the Idaho Department of Environmental Quality
demonstrating its ability to provide adequate service, it is currently prohibited from connecting any
new customers to its water system until an additional supply source or sources are provided that are
large enough to meet minimum state peak hour demand requirements or maximum daily pumping
demand plus equalization storage. Reference IDAPA 58.01.08.550.03. A copy of a September 7
2005 letter from the Department of Environmental Quality to Robert DeShazo of Eagle Water
discussing the moratorium on new connections was included with Hillview s Petition.
Staff does not believe that Eagle Water will be able to take actions soon enough to cause the
moratorium to be lifted without causing unreasonable delays in Hillview s development plans.
Because the Covenant Hill subdivision straddles the certificate service area boundaries of both
Eagle Water and United Water, Staff advised Hillview to inquire of United Water as to whether
United Water was able to provide water service and the fire flows required.
As represented in the Petition, United Water has informed Hillview that United Water has a
well to the northeast of the Covenant Hill subdivision site and an existing water main along the
subdivision s entire north boundary. Based on a design the developer s construction manager
provided to United Water, United Water by letter dated October 5 , 2005 , estimates the total
construction cost for the installation of the pipes, fittings, fire hydrants and services necessary to
serve the new subdivision to be $164 807. This figure is comprised of the contractor s cost of
$146 870 for materials and installation, plus United Water s inspection and overheads. Once
United Water has approved design drawings, construction of the water facilities could start within a
couple of weeks.
RECOMMENDATIONS
Because United Water has facilities immediately adjacent to the Covenant Hill subdivision
and because Eagle Water is currently unable to connect new customers, Staff recommends that
STAFF COMMENTS NOVEMBER 9, 2005
United Water be authorized to provide water service to the Covenant Hill subdivision. Staff
believes that the Commission s October 19 2005 Proposed Order is reasonable and should stand as
written. Staff further recommends that United Water be directed to submit to the Commission maps
showing the revised certificated area boundary that incorporates the Covenant Hill subdivision.
Respectfully submitted this
Cj
day of November 2005.
Scott oodbury
Deputy Attorney General
Technical Staff: Rick Sterling
Dave Schunke
i :umisc:comments/eagwO5.3 - uwiwO5 .3swrpsdes
STAFF COMMENTS NOVEMBER 9, 2005
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Attachment
:G- W-05-Case No. ~WI-
05-
Staff Comments
11/9/05
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 9TH DAY OF NOVEMBER 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN CASE
NOS. EAG-05-03 /UWI-05-, BY MAILING A COpy THEREOF, POSTAGE
PREP AID, TO THE FOLLOWING:
ROBERT DESHAZO
PRESIDENT
EAGLE WATER COMPANY INC
PO BOX 455
EAGLE ID 83616-0455
JOHN LEE
CONSTRUCTION COORDINATOR
UNITED WATER IDAHO INC
PO BOX 190420
BOISE ID 83719
DON BUTT
HILL VIEW DEVELOPMENT CORP
150 E AIKENS SUITE A
EAGLE ID 83616
MICHAEL R McGOWN
ADMINISTRATOR
DEQ
1445 N ORCHARD
BOISE ID 83706
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SECRETAR
CERTIFICATE OF SERVICE