20070518Wyatt rebuttal.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street
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Boise, Idaho 83702 i:.. '
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Chas. F. McDevitt
Dean J. (Joe) Miller
May 18 , 2007
Via Hand Delivery
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83720
Re: UWI~ W ~07 ~
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 and exhibits of Scott Rhead, with a copy
of each designated as "Reporter s Copy . A computer disc containing the testimony and
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 CSt MILLER LLP
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DJM/hh
Enclosures
Dean J. Miller
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 (gJ mcdeviU- miller com
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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
CASE NO. UWI-O7-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
REBUTTAL TESTIMONY OF GREGORY P. WYATT
May 18 2007
Please state your name.
Gregory P. Wyatt.
Are you the same Gregory P. Wyatt who provided Direct Testimony in 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 filed on behalf of the City of Eagle.
Do you have a general observation regarding Mayor Merrill's testimony?
Yes. Mayor Merrill makes various references to the effect that Lanewood should
be or will be within or be part of the City of Eagle, (See Merrill Testimony page
, line 13 , and lines 17-18; page 3, lines 3-4; and page 4, line 3 , and line 19). I
believe this more represents Mayor Merrill's desire rather than fact. The future
Eagle City limits cannot be known with certainty. It is a prediction of future
events, and like all predictions of the future is subject to some degree of
uncertainty. More specifically, it is not at all clear that the City can annex either
Lanewood or other developments in the absence of the landowner s consent.
As I discuss later in my testimony, many aspects of the City s case depend
on the predicted occurrence of future events, all of which are subject to
uncertainty. In contrast, United Water s case is based on currently existing facts
that are not subject to uncertainty.
Wyatt, Re
United Water Idaho Inc.
At page 2 of her testimony Mayor Merrill describes the Lanewood development
as being "adjacent to the City limits and generally surrounded by other
development . Is this an accurate description?
Only in a very loose sense. As illustrated by Exhibit 3 attached the Lanewood
development only touches the City boundary along a small area at the south end
of the Lanewood development, so it is "adjacent" only along a small border. And
it is not "surrounded by other development." As illustrated on Exhibit 3 , virtually
all of the land surrounding Lanewood is currently agricultural ground.
On pages 2-3 of her testimony Mayor Merrill argues that Lanewood 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 what the so-called "amenities" or "benefits" are intended to
encompass. I would note that the Lanewooddevelopment is 3.5 miles west and
1.5 miles north of the City s business center.
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 areas.
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
Wyatt, Re
United Water Idaho Inc.
estimated by the Community Planning Association (COMPASS) as found on the
COMPASS website.
If the city of Eagle currently serves water to only about 19% of its residents, who
provides water service to the remaining City residents?
Predominantly, 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.
Wyatt, Re
United Water Idaho Inc.
Where are these parks located in relation to the Lanewood development?
All the parks are located east of Eagle Road with all but one clustered between
Eagle Road and Highway 55. From Lanewood the closest park is about 4 miles
away and the farthest is over 5 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
Lanewood.
You mentioned that the City of Eagle has a library. Please identify its location
and proximity to Lanewood.
The Eagle City Library is located at 100 North Stierman Way in Eagle, which is
east of Eagle Road and just north of East State Street. The library is also over
four miles away from Lanewood.
Similarly, on page 3 of her testimony, Mayor Merrill says that Lanewood
homebuyers will "be able to take advantage of the benefits of the City without
paying for them." Do you agree?
Again, the word "benefits" is not defined, so it is impossible to know if this is the
same thing as "amenities" or something different.
On page 3 of her testimony Mayor Merrill refers to Exhibit 201 and states that it
indicates properties around Lanewood 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
regard to inclusion within the City of Eagle.
Wyatt, Re
United Water Idaho Inc.
On page 3 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 exhibit 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. As Mr. Yorgason
indicated in his direct testimony I believe developers who are ready to construct
now do not wish to be exposed to the "risk and uncertainty arising out of the
City s desire to enter into a new and complex venture: the establishment
construction and operation of a municipal water system." (Yorgason Direct
, pg.
3).
On page 4 of her testimony Mayor Merrill states that "Lanewood will be located
in the midst of the City of Eagle " and that how Lanewood is developed will
have a significant influence on the City." Do you concur?
As I noted previously Lanewood is 3.5 miles from the City s business center and
is bordered to the west by agricultural grounds. Currently, and for the foreseeable
future, it is difficult to see how Lanewood is "in the midst" of the City. Nor is it
immediately apparent how Lanewood's choice of water provider will have a
significant influence on the City . As previously noted, United Water provides
Wyatt, Re
United Water Idaho Inc.
water service to approximately 25% ofthe City of Eagle s residents without
detrimental affects to the City of Eagle.
Mayor Merrill also indicates on page 4 of her 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
currentl y better prepared to provide service to Lanewood.
On page 4 of her testimony Mayor Merrill indicates the City will participate in
Lanewood'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 will 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 do not understand how water service to Lanewood 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. Additionally,
although the City s Water Master Plan shows a future water main in a small
portion of the southwest comer of the Lanewood development, this location
follows Ada County s planned future alignment of Floating Feather Road, and
Wyatt, Re
United Water Idaho Inc.
Eagle would have ability to install its water main in the road right of way
regardless of who provides water service to Lanewood. Finally, as previously
stated, United Water currently serves about 25% of Eagle residents without any
identified detrimental effects or disruptions to the City of Eagle.
Mayor Merrill, on page 5 of her testimony, claims that "By the time Lanewood
completes the County approval process and is ready to utilize water, the City
system will be ready." Do you agree?
No. As I have noted above, this, again, is a prediction of future events which is
subject to significant uncertainty. Mr. Rhead, on pages 1 through 3 of his
Rebuttal Testimony, clearly points out that Eagle s contention that it will be able
to provide service to Lanewood in the near term is highly speculative and fraught
with potential delays.
On page 5 of her testimony Mayor Merrill also says the City can provide water
less expensively than United Water. Do you agree?
Not necessarily. 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 ~day 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
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
iiewell~puc.state.id.
Bruce Smith
MOORE, SMITH, BUXTON & TURCKE
950 W. Bannock, Suite 520
Boise, ID 83702-5716
Robert B. Bums
MOFFATT THOMAS
101 S. Capitol Blvd. 10th Floor
O. Box 829
Boise, ID 83701-0829
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