20070316Yorgason affidavit.pdf

OR\G\NAL
Dean J. Miller (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Bannock Street
O. BOX 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
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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
AFFIDA VIT OF J. RAMON
VORGASON
CASE NO. UWI-O7-
STATE OF IDAHO
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County of Ada
J. Ramon Yorgason, being first duly sworn upon oath, deposes and says:
I am the President of Capital Development Inc., an Idaho Corporation. Capital
Development Inc., is the developer of the Lanewood Estates development, which is the subject
of this proceeding. I have been engaged in the business of residential real estate development in
Ada County, Idaho for over 30 years, and make this affidavit of my own knowledge.
I have reviewed the Letter Comments of the City of Eagle dated February 23 , 2007
(Letter Comments) and make this Affidavit in response to certain statements therein.
We have made application to Ada County for approval of our Lanewood Estates
development. The County has completed its initial staff review and provided comments on the
application. We have responded to those comments and are awaiting the completion of the
second staff review and scheduling of the initial public hearing. We expect to complete the
AFFIDAVIT OF J. RAMON YORGASON - 1
hearing process with the County and receive approval for our development by May 2007, and to
start construction of the first phase in July 2007.
The Letter Comments (Pg 2.) assert that the City of Eagle s main line will be ready for
use by Lanewood Estates by the time it completes the local government approval process.
However, United Water already has a functioning l2-inch water main in Linder Road
immediately adjacent to our project. Based on the foregoing and my understanding of the
location of existing City facilities, it is highly unlikely that the City would be able to extend its
facilities, including having an active well completed and connected to its water delivery system
by the time we will have approvals to commence construction. It is also exceedingly unlikely -
if not impossible - that we would have approvals from the City to start construction by this
summer if the City were to hear and decide the subdivision application for our Lanewood Estates
development. In fact, in one of our prior City of Eagle subdivisions (Countryside Estates), we
were delayed approximately two years and it took nearly three years to get approvals because the
various affected agencies could not come to an agreement.
In addition to the issue of ability to provide timely interconnection of the Lanewood
Estates development, Capital Development Inc. desires to obtain water service from United
Water because:
A. The review and approval process is shorter using United Water. Normally, DEQ
approval is required for all subdivisions before construction can begin (upon approval of the
water system, DEQ lifts sanitary restrictions and approves construction). This process is
shortened by using United Water. Currently, DEQ allows United Water to independently lift
sanitary restrictions to start construction (DEQ does not need to independently review and
approve United Water s water delivery systems). DEQ does not have the same arrangement with
AFFIDAVIT OF J. RAMON YORGASON - 2
the City. DEQ and the City's outside engineer must both approve Eagle City water plans,
meaning that the review and approval process will result in a delay of at least three months;
B. Any delays in starting construction will be VERY expensive. We have currently paid
for approximately half of the land for our Lanewood Estates development. The interest payment
to hold that portion of the land is nearly $76,000.00 per month. In July, we are contractually
obligated to purchase the remainder of the property (more acres than the first takedown, with a
higher per acre price). Our interest payment to hold the land will more than double to an amount
in excess of $160 000.00 per month. We cannot afford even the chance of being delayed waiting
for the City to get its water system operational; and
C. Because the City is just now in the process of establishing its municipal water system,
there can be no certainty or assurance that it will be able to accomplish all that it must do to
provide water service to the Lanewood Estates development. In this regard, because Capital
Development Inc.' s property is not located within the City, Capital Development Inc. should be
not be exposed to the risk and uncertainty arising out of the City's current desire to enter into a
new and complex venture: the establishment, construction and operation of a municipal water
system.
Dated this ft day of March, 2007. .
SUBSCRIBED AND SWORN to before me this 1!:i day of March, 2007.
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Notary Public for ID
Residing at 1Soi~ -r~
Commission Exp.
MY COMMISSION EXPIRP..8
Jaae 8, 2012
IIOtGt8D 11IIW NOTARY PUBLIC IINDERWRITaI
AFFIDAVIT OF J. RAMON YORGASON - 3
_.m___-
CERTIFICATE OF SERVICE
I hereby certify that on the 11l day of March, 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
472 West Washington Street Fax
O. Box 83720 Fed. Express
Boise, ID 83720-0074 Email
ewell (fY uc.state.id. us
Bruce M. Smith Hand Delivered
MOORE SMITH BUXTON & TURCKE S. Mail
225 N. 9th Street, Suite 420 Fax
Boise, ill 83702 Fed. Express
Email
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DEVITT& MILLER, LLP
AFFIDA VIT OF J. RAMON YORGASON - 4