20070518Wyatt rebuttal.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
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Chas. F. McDevitt
Dean J. (Joe) Miller
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May 18, 2007
Via Hand Delivery
Jean J ewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Re:Case No. UWI- W -06-04
Dear Ms. Jewell:
Enclosed for filing, please find nine (9) copies of the Rebuttal Testimony and exhibits of Gregory P.
Wyatt, and the Rebuttal Testimony of Scott Rhead, with a copy of each designated as "Reporter
Copy . A computer disc containing the testimony is also enclosed.
An additional copy of the documents and this letter is included for return to me with your file
stamp thereon.
Very Truly Yours
McDevitt &: Miller LLP
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Dean J. Miller
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Enclosures
Dean J. Miller (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
Joe (fY mcdevitt- miller .com
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Attorneys for United Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INc., TO
AMEND AND REVISE CERTIFICATE OF
CONVENIENCE AND NECESSITY NO 143
CASE NO. UWI-O6-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
REBUTTAL TESTIMONY OF GREGORY P. WYATT
May 18 2007
A.'
Please state your name.
Gregory P. Wyatt.
Are you the same Gregory P. Wyatt who provided Direct Testimonyin this
proceeding?
Yes, I am.
What is the purpose of your Rebuttal Testimony?
I will respond to certain statements contained in the Amended Direct Testimony
of Mayor Nancy Merrill.
On page 2 of her testimony Mayor Merrill indicates the City has been preparing to
serve the Trailhead area because of its "partial location within the City s impact
area, its consideration in the City s Comprehensive plan, and its inclusion in the
City s Master Water Plan." Please respond.
First, Trailhead is not within the area of the City s Master Water Plan. Attached as
Exhibit 2 is the City s water planning map indicating that the northern border of
the water planning area is south of Homer road. This is confirmed in Mr.
Brewer s testimony at page 2, lines 16-17. The Trailhead development is north of
Homer Road. The City s own Comprehensive Plan, adopted February 13, 2007
page 16 states
, "
In 2005, the City adopted a Water System Master Plan that
defines existing and future service areas. The Master Plan identifies major
infrastructure requirements in the service area including storage tanks and water
transmission mains from Linder Road to Highway 16 and from Homer Road to
Highway 20/26." Eagle s own Comprehensive Plan confirms that Trailheadis
outside of the City s water planning area. Second, the portion of property
Wyatt, Re
United Water Idaho Inc.
intended to be developed by Trailhead, and for which United Water has filed its
request for service area expansion in this proceeding, is outside the City s area of
impact. Attached as Exhibit 3 is the City s Area of Impact Map which is Map 1.
incorporated in the City s Comprehensive Plan adopted February 13 2007. In
shows the north boundary of the area of impact as Homer Road. Thus, I do not
understand the Mayor s reference to "consideration in the City s Comprehensive
Plan" as cities may only prepare comprehensive plans for areas within their
impact area. Finally, I am not sure what is meant by the phrase "been preparing to
serve." I have seen no tangible evidence of preparations for service.
On page 2-3 Mayor Merrill argues that Trailhead should be part of the City
because it will use City amenities and will have the advantage of the benefits of
the City without paying for them. Please respond.
Mayor Merrill does not define the words "amenities" or "benefits" so there is no
way to know the substance of the so-called "amenities" or "benefits.
Does the City of Eagle currently provide water service to the majority of its
residents?
No. The City of Eagle currently provides water service to only a small portion of
its residents; those who live in the Lexington and Brookwood subdivisions area.
At the end of April 2007 , the City s water system served 1 328 customers, which
when converted to population using a 3X multiplier, equates to a population of
less than 4 000 persons, or only 19% of the 20 951 City of Eagle, 2007 population
estimated by the Community Planning Association (COMPASS) as found on the
COMPASS website.
Wyatt, Re
United Water Idaho Inc.
If the City of Eagle currently serves water to only about 19% of its residents, who
provides water service to the remaining City residents?
Predominantl y, water service is provided to Eagle City residents by Eagle Water
Company and United Water Idaho. Eagle Water Company s 2007 Annual Report
to the Idaho Public Utilities Commission indicates that they provide water service
to 2 885 residential customers or a population of about 8 655 , using the 3X
multiplier. United Water Idaho currently serves 1 672 customers within Eagle
City limits, representing a population of about 5,000. The remaining population
within the City of Eagle likely receives their water service from individual and
private wells.
Does the City of Eagle provide sewer services to its residents?
No. Sewer service to the residents of Eagle is provided by the Eagle Sewer
District, which is not a part of the City of Eagle.
Does the City of Eagle provide roadway services to its residents?
No. Roadway services within Eagle and all of Ada County are provided by the
Ada County Highway District (ACHD).
What "amenities" then might be provided by the City of Eagle?
I as I stated previously, as used by Mayor Merrill in her testimony it is impossible
to know what the word is intended to encompass. However I searched the City
website and found that they do offer five parks with one more under development.
They also offer a library.
Where are these parks located in relation to the Trailhead development?
Wyatt, Re
United Water Idaho Inc.
All but one of the parks are located south of Floating Feather Road and east of
Eagle Road with all but one clustered between Eagle Road and Highway 55.
From Trailhead the closest park is about 3 miles away. In reality, the City of
Eagle s parks are closer to some residents of the cities of Boise and Garden City
than they are to Trailhead.
You mentioned that the City of Eagle has a library. Please identify its location
and proximity to Trailhead.
The Eagle City Library is located at 100 North Stierman W ayin Eagle, which is
east of Eagle Road and just north of East State Street. The library is over four
miles away from Trailhead.
At pages 2-3 of her testimony Mayor Merrill discusses the City
comprehensive planning efforts. Please respond.
By definition a Comprehensive Plan applies only within a City s area of impact
so its planning efforts have no application to the portion of Trailhead for which
United Water has filed its request to serve, which is outside the City s area of
impact.
On page 3 of her testimony Mayor Merrill refers to Exhibit 201 and states that it
indicates properties surrounding Trailhead that are in some phase of being
included within the City. Have you reviewed Exhibit 201 and does it show
properties along with their phases of being included within the City?
I have reviewed the exhibit and it appears to indicate the City s planning area and
area of impact, but does not indicate anything related to phases of lands with
Wyatt, Re
United Water Idaho Inc.
regard to inclusion within the City of Eagle. Also, since Trailhead lies outside of
the City s Impact Area, the City s Comprehensive Plan maps could not refer to it.
On page 3-4 of her testimony Mayor Merrill describes the development of a City
Comprehensive Plan and indicates that Exhibit 202 is a portion of the Plan
addressing water. Have you reviewed Exhibit 202 and does it relate to water?
I have reviewed the exhibit and the only significant portion relating to water is
page 19 from the Plan which identifies five items referring to water rates and
Eagle s future water system.
What do you make of Exhibit 202?
The City appears to have an ambitious goal of developing its own municipal
water system, but is in the very early stages of implementation. I believe
developers who are ready to construct now would not want to be exposed to the
risk and uncertainty that may result from the City s desire to embark on such a
complex venture as designing, constructing and eventually operating a municipal
water system.
On page 4 of her testimony Mayor Merrill responds that the Trailhead
development has been included in the City s Comprehensive Planning process
and that Trailhead will be located in the City of Eagle. Please comment.
This statement can not possibly be accurate because of the aforementioned fact
that the City of Eagle s Comprehensive Plan addresses only areas within the
City s Impact Area, which Trailhead is not. Additionally, as previously noted, the
City s own Comprehensive Plan and water planning map confirms that Trailhead
is outside of the City s water planning area.
Wyatt, Re
United Water Idaho Inc.
Mayor Merrill also indicates on page 40fher testimony that United Water did not
participate in development of the City s Plan. Please comment.
If United Water received notice of the planning effort, it was only a general public
notice. United Water s participation was not specifically requested by the City
and our views were not solicited. In any event, whether United Water did or did
not participate does not seem relevant to the question of which water provider is
currently better prepared to provide service to Trailhead.
On page 4-5 of her testimony Mayor Merrill indicates the City will participate in
Trailhead's Ada County plat approval proceeding and "recommend that the
county disallow the application and direct the developer to file a request for
annexation with the City and include using City water." The Mayor indicates
there could be "significant detrimental effects on the City" and "it would disrupt
the City s planning process and would negatively affect the City s water system
development, roads and open spaces." Do you concur?
No. I see no way that water service to Trailhead by United Water could result in
the detrimental effects and planning process disruption the Mayor refers to. In the
first place, Mayor Merrill provides no specifics as to how the purported
detrimental effects and planning process disruption would occur. As stated
previously, Trailhead is outside of the City s Impact Area and thus not considered
in its Comprehensive Plan. Additionally, the City s own Water Master Plan
shows no future water facilities north of Homer Road, which is south of
Trailhead. Finally, as previously noted, United Water currently serves about 25%
Wyatt, Re
United Water Idaho Inc.
of Eagle residents without any identified detrimental effects or disruptions to the
City of Eagle.
On page 5 of her testimony Mayor Merrill also says the City can provide water
less expensively than United Water. Do you agree?
It is true that currently the City s tariff rate for water service is somewhat less
than United Water s. The City s current rates, however, may not include recovery
of the costs associated with the City s ambitious plan to build a municipal water
system. These costs are unknown but potentially huge. Whether those costs are
eventually recovered through consumption rates, connection fees , surcharges, or
some other mechanism, they will create upward pressure on the City s overall
cost of service.
Does that conclude your testimony?
Yes it does.
Wyatt, Re
United Water Idaho Inc.
CERTIFICATE OF SERVICE
I hereby certify that on the rday of May, 2007, I caused to be served, via the
methodes) indicated below, true and correct copies of the foregoing document, upon:
Jean Jewell, Secretary Hand Delivered
Idaho Public Utilities Commission S. Mail '-S
472 West Washington Street Fax '-S
O. Box 83720 Fed. Express '-S
Boise, ID 83720-0074 Email '-S
ewell (fY uc.state.id.
Bruce M. Smith Hand Delivered '-S
MOORE SMITH BUXTON & TURCKE S. Mail
950 W. Bannock, Suite 520 Fax '-S
Boise, ID 83702-5716 Fed. Express '-S
Email '-S
Thomas Morris Hand Delivered
Kastera Homes S. Mail
372 S. Eagle Road, Suite 375 Fax '-S
Eagle, ID 83616 Fed. Express '-S
tom. morris (fY kastera. com Email '-S
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