20060531Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO 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 APPLICATION OF
UNITED WATER IDAHO INc. TO AMEND AND)
REVISE CERTIFICATE OF CONVENIENCE
AND NECESSITY NO. 143.
CASE NO. UWI-O6-
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
Application, Notice of Modified Procedure and Notice of Comment /Protest Deadline issued on
May 8, 2006, submits the following comments,
BACKGROUND
On April 26, 2006, United Water Idaho Inc, (United Water; Company) filed an Application
with the Idaho Public Utilities Commission (Commission) for authority to amend and revise its
Certificate of Public Convenience and Necessity No, 143, as amended. Reference Idaho Code ~ 61-
526; IDAP A 31.01.01.112, United Water seeks to add an area known as the Trailhead Community
to its certificated service territory. The area of expansion is located in Ada County north of the City
of Eagle in an area more particularly described as: a parcel ofland being all of the West 1/2 of the
STAFF COMMENTS MAY 31 , 2006
Southwest 1/4 of Section 27 and all of Section 28, Township 5 North, Range 1 East, Boise
Meridian, Ada County, Idaho,
The developer of the Trailhead Community has requested that United Water extend water
service facilities to the area, United Water contends that the Trailhead Community area is not
within the authorized service territory of any other public utility water corporation under the
Commission s jurisdiction nor, it contends, will the extension interfere with the operations of any
other water utility under the Commission s jurisdiction. United Water further contends that there
are no known public entities, persons or corporations with whom the expansion is likely to compete,
ANALYSIS
Staff has prepared a map showing the area United Water wishes to add to its certificated
area, The map also shows the boundaries of the property owned and planned for development by
Kastera Homes. The map also shows the current service territory boundaries of United Water
Eagle Water Company, and the City of Eagle. A copy of the map is included as Attachment A.
United Water asserts in its Application that there are no known public entities, persons or
corporations with whom the expansion is likely to compete, However, on May 11 , 2006 , a letter
was submitted by counsel for the City of Eagle stating that the defined area of expansion requested
by United Water includes an area and development that will be served by the City of Eagle
municipal system, A copy of the letter is included as Attachment B. According to the letter
Kastera Homes has previously contacted the City of Eagle regarding annexation into the City, The
City of Eagle states that it is taking steps to accommodate the developer s request. The City
included a copy of a letter from Kastera Homes documenting the developer s alleged request for
annexation, That letter is included as Attachment C, In subsequent conv~rsations with the City
engineer, Staff was reassured that Kastera had agreed to be served by the City of Eagle and that the
City of Eagle had adequate capacity to serve the proposed development.
Staff contacted a representative of Kastera Homes to clarify whether it was seeking water
service from United Water or from the City of Eagle. As represented by Kastera, City
representatives met with Kastera on May 19, 2006 to discuss water service, Kastera alleges that the
City, despite its desire to provide service, admitted that it did not have the capability to provide
service to the area for at least two years. In response, Kastera informed the City that it would renew
its request for service with United Water. Kastera claims that the City accepted Kastera s decision
to receive service ttom United Water. Following the meeting, on May 24, 2006 , Kastera sent a
STAFF COMMENTS MAY 31 2006
letter to United Water restating its request for water service ttom United Water. A copy of that
letter is included as Attachment D. Kastera further claims that it agreed with the City of Eagle to
prepare a memorandum of understanding spelling out the terms under which the City would provide
service should Kastera choose to develop property in the future that lies within the City s Area of
Impact.
As a result of this turn of events, Staff also contacted the City of Eagle to verify Kastera
latest claim that the City had conceded that United Water would provide service to Trailhead. The
City s engineer and attorney both contest Kastera s representation. The City's representatives
contend that the City still has the desire and the ability to serve Kastera s proposed development.
The City maintains that it has the ability to immediately serve 1300 additional homes north of Eagle
with no additional wells or storage facilities, Kastera s development will total approximately 700
homes at full build-out.
Kastera s current plan is to develop property that lies outside of the City of Eagle s Area of
Impact. However, maps provided to Staff indicate that a portion of the property owned by Kastera
encroaches into the City s Area ofImpact (See Attachment E), Kastera is aware that part of its
property lies within the Area of Impact, but it insists that no development will occur on that
property at this time, Kastera understands that future development within the City s Area of Impact
will be served by the City,
RECOMMENDATION
As last represented to Staff, the City of Eagle stands by its objection letter position and its
intention to serve the Kastera property, The City maintains that it has the physical capability of
serving the Trailhead Community. United Water is also capable of serving the development. As
long as United Water follows its established line extension rules, other customers of United Water
should not be adversely affected by the addition of Trailhead. United Water maintains that the City
of Eagle has no authority to extend water services beyond its political boundaries. The City is
proceeding along an annexation path. The City objects to the continued use of Modified Procedure,
Staff recommends that a hearing date be set to establish a more formal record for decision,
STAFF COMMENTS MAY 31 , 2006
Respectfully submitted this
Technical Staff: Rick Sterling
S W :/umisc/ commen ts/uwi wO6 .4swrps
STAFF COMMENTS
31
day of May 2006,
Scott Woodbury
Deputy Attorney General
MAY 31 , 2006
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Case No. UWI-06-
Staff Comments
5/31/06
MOORE SMITH BUXTON & TURCKE, CHARTERED
ATTORNEYS AND COUNSELORS AT LAW
225 NORTH 9TH STREET, SUITE 420
BOISE, ID 83702
TELEPHONE: [phone] FAX: [phone]
STEPHANIEJ. BONNEY
SUSAN E. BUXTON'
MICHAEl C. MOORE!
BRUCE M. SMITH
PAUlA. TURCKE'
CHRISTOPHER E. YORGASON
TAMMY A. ZOKAN
JOHN J. McfADDEN*'
Of Cozmsel
. Also admitted in Oregon
I Also admitted in Washington
, Also admitted in South Dakota
Also admitted in New Mexico
May 10, 2006
Idaho Public Utilities Commission
472 W, Washington Street
Boise, ID 83720
Re: Case No. UWI-06-
Dear Commissioners:
On April 26 2006, United Water Idaho Inc. filed an Application with the Idaho Public
Utilities Commission (Commission) seeking to amend and revise its Certificate of Public
Convenience and Necessity No. 143 , as amended, The referenced Application seeks to add an
area known as the Trailhead Community to UWI's service territory. UWI stated at paragraph VI,
that "There are no known public entities, persons or corporations with whom the expansion islikely to compete.- This is incorrect. The defined area of expansion includes an area and a
development that will be served by the City of Eagle municipal system. The developet Kastera
Homes, has already contacted the City of Eagle regarding annexation into the City, and' the City
is taking steps to accommodate the developer s request. (See attached copy of letter ttom Kastera0 Homes,
) Under existing City ordinances the development will be served by the City, Therefore
the City objects to extension of the UWI certificate to this area.
Sincerely,
MOORE SMITH BUXTON & TURCKE
CHARTERED
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Joe Miller, Esq,
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Attachment B
Case No, UWI-06-
Staff Comments
5/31/06
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RECEIVED & FILED
CITY OF EAGLE
APR 2 2006
File:
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April 18/ 2006
, ,
i"',;Honorable Mayor Nancy M~rrill
and Eagle City Council Members
City of Eagle
660 E. Civic Lane
Eagle, Tdaho83616
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- Dear Mayor Merrill and Eagle City Council Mempers:
KasteraHomes has recently purchased 660 acres of land nq.rth ofJhe
City of Eagle near Willow Creek Road. We have also acquired an
additional 278 acres along State Highway 55 north of Brookside- Lane
near the Shadow Valley Golf Course. Kastera ,Homes is consideririg
annexation of these-lands into the City of Eagle.
Is it possible that we could be invited to attend a work session with
the City Council to discuss the possible annexation of our properties?
Thank you for your assistance in evaluating future annexation of- our
land. Keep up your good work!
Enclosed: Vicinity Map
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Mayor/ City Council
City Clerk
p & Z Dept.
, Bldg: Dept. ,
Attorney- '
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Engineer'
v' --1) dlj
Wayne . Forrey, AICP
Director of Planning and Enti ements
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Attachment C
Case No. UWI-06-
Staff Comments
5/31/06
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Case No. UWI-06-
Staff Comments
5/31/06
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 31ST DAY OF MAY 2006
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN CASE
NO. UWI-06-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
GREGORYP. WYATT
UNITED WATER IDAHO INC
PO BOX 190420
BOISE ID 83719-0420
DEAN J MILLER ESQ
McDEVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
~:))
CERTIFICATE OF SERVICE