HomeMy WebLinkAbout20110128Application.pdfMcDevitt & Miller LLP
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P.O. Box 25641l~nl\lN 28
Boise, Idaho 83tJO'1:" ,PM 12: 35 Chas. F. McDevitt
Dean J. (Joe) Miler
Januar 28,2011
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Cotnssion
472 W. Washigton St.
Boise, Idaho 83720
Re: UW-W-ll-01-United Water and City of Eagle
Dear Ms. Jewell:
Enclosed for fig in the above matter, please fid an orial and seven copies of the Application
regadig United Water Idaho Inc.
Kidly retu a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier IL
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DJM/hh
Enclosures
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CD-0:o
Dean J. Miler (ISB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVIIT & MILLER LLP
420 West Banock Street
P.O. BOX 2564-83701
Boise, Idaho 83702
Tel: 208-343-7500
Fax: 208-336-6912
joeW2m(devitt-miler .com
ion JÃN 28 Piî 12: 35
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No. UWI-W-LL-OL
OF UNITED WATER IDAHO INC., AND
THE CITY OF EAGLE, IDAHO FOR APPLICATION
APPROV AL OF AN EMERGENCY
INTERCONNECTION AGREEMENT and
REQUEST FOR MODIFIED PROCEDURE
COME NOW United Water Idaho Inc. (United Water), and the City of Eagle, Idao (City
of Eagle) (collectively, the Paries), and apply to the Commission for an Order approving the
Emergency Interconnection Agreement (Agreement), attached hereto as Exhibit A, and in support
thereof, respectfully show as follows, to wit:
1.
United Water is a regulated public utilty providing water service to the public in the City
of Boise and surrounding areas, including pars of the City of Eagle. The City of Eagle is an
Idaho municipality providing water service to the public in pars of the City of ßagle. In some
places the water systems of United Water and the City of Eagle are adjacent to each other.
APPLICA TrON-l
The two water systems are currently interconnected to each other by a pressure regulating
valve (PRV) and vault owned by the City of Eagle which is currently configured to enable water
supply to be made available to the City of Eagle's system from United Water's system, under
certain circumstaces. This existing interconnection is governed by an agreement between the
parties that was executed in 1997.
The Paries have negotiated this new Agreement with a view toward replacing the existing
agreement and modifying the interconnection facilities so as to provide a source of water supply
to each party in the event of emergency.
n.
Among other things, the Agreement provides:
. United Water wil design, construct and build modifications to the existing
interconnection to enable the two-way flow of water between the two systems.
Each party wil thereafter own the facilties on their respective sides of the
interconnection, as shown on an attchment to the Agreement. The estimated cost
of construction and allocation of costs betweeii the Paries is shown on an
attachment to the Agreement. (Article i).
. Upon the occurrence of a scheduled or unexpected event, each pary wil either sell
and deliver or receive and purchase supplies of water. An interconnection
activation will occur automatically by operation of the PRV. The rate for service
supplied by United Water to City of Eagle wil be the Volume Charge set forth in
United Water's Schedule No.1, General Metered service, as the same now exists
or may hereafter be altered by the Commission. (Article II).
APPLlCA TION-2
· The Agreement wil not become effective until the Agreement is approved by the
Commission.
II.
The Agreement is in the public interest and should be approved because, among other
reasons:
· The customers of each party wil have access to supplies of water in the event of
emergency or other problem occurring on one of the party's system, thereby
ensuring continuous and reliable service.
· The Agreement provides a least-cost redundancy solution for both parties, when
compared to the cost each part would incur to construct its own facilities.
. When United Water sells supplies of water under the Agreement, United Water
will receive payment at the full taiff volumetric rate, not at a discount. Likewise,
when Eagle sells supplies of water under the Agreement, it wil receive payment at
Eagle's then existing published volumetric rate, not at a discount.
· The allocation of construction costs between United Water and Eagle is reasonable
in that each party is assuming responsibilty for those constrction costs required
to modify the interconnection to accommodate water flow to their respective water
system, and are sharing equally those costs that wil serve each par equally.
iv.
The Paries believe a heanng is not necessar to the consideration of this Application and
request that it be processed under Modified Procedure.
APPUCA T10N-3
WHEREFORE, the Parties respectfully request that the Commission enter its order:
t. Approving the Agreement and United Water's intended performance under the
agreement;
2. Confrming that the prices to be charged by United Water to the City of Eagle for
delivery of water supplies are reasonable;
3. And granting such other relief as is appropriate in the circumstace.
DA TED this ii~ day of January, 2011.
UNITED WATER IDAHO INC.
~~Æ:DE~
L Mayor JamëS . ~
BY:~
APPLICATION-4
EMERGENCY INTERCONNECTION AGREEMENT
THIS AGREEMENT, made as of the ch~ day of j)C"~
et /0 , is by and between the CITY OF EAGLE ("Eagle"), a municipal corporation
organized under the laws of the State of Idaho.with its principal offce located at 660
East Civic Lane, Eagle, Idaho 83616, and UNITED WATER IDAHO INC. ("United
Water"), a corporation organized under the laws of the State of Idaho with its
principal office located at 8248 West victory Road, Boise, Idaho 83709,
WITNESSETH:
WHEREAS, Eagle owns and operates a municipal water utility system
furnishing water service to the public in parts of the City of Eagle; and
WHEREAS, United Water owns and operates a public water utilty system
and furnishes water service to the public in Boise and surrounding areas, including
parts of the City of Eagle; and
WHEREAS, Eagle owns an existing pressure regulating valve (PRV)
interconnection and vault configured to enable water supply to be made available to
Eagle's system from United Water's system under certain circumstances; and
WHEREAS, United Water and Eagle now desire to improve and utilize the
existing interconnection between United Water's and Eagle's water systems
("Interconnection") to provide an emergency source of water supply for each part
on the terms and conditions set forth herein;
WHEREAS, the parties wish to set forth their agreement for the modification
and financing of the Interconnection and all associated improvements by which each
Page i of 13
c:\documents and settings\tosbom\desktp\emergency interconnection agreement. draft v 2 O.docx
EXIA
party wil deliver water to the other at the specific metered interconnection and their
agreement as to delivery, receipt and payment for water delivered through the
Interconnection;
NOW, THEREFORE, in consideration of these premises and of the mutual
promises and undertakings hereinafter set forth, the parties hereto, intending to be
legally bound hereby, agree as follows:
ARTICLE i
The Interconnection
1.1 Interconnection. The Interconnection covered by this Agreement is
shown on Exhibit Ai which is attached to this Agreement and expressly made a part
hereof. The Interconnection currently exists and shall serve for the delivery of water
supply both from Eagle to United Water, and from United Water to Eagle. The
Interconnection currently has a PRY controllng the flow of water across the
interconnection from United Water to Eagle. The Interconnection will be modifed as
discussed in Section 1.3 below to enable water flow to occur in both directions.
1.2 Applicability of Agreement. The terms of this Agreement shall apply
only to the aforementioned existing Interconnection. Provision of water through any
new interconnections that may be constructed in the future between the parties'
systems shall be subject to a separate agreement.
1.3 Construction and Maintenance of the Interconnection.
(a) The parties agree that the existing Interconnection requires certain
modifications, including additional piping, valves, vault modifications, metering, and
- 2-
controls, in order to enable the two-way flow of water, and are wiling to share the
cost of the said modifications in accordance with the plans and estimate attached as
Exhibit B.
(b) United Water shall design, construct, build and install the modifications
in accordance with the plans attached as Exhibit B. United Water shall supply or
arrange for the provision and/or performance of all required services, goods,
materials, engineering and construction (collectively, the "Work") needed to
complete the modifications in a sound and workmanlike fashion. For purposes of
this Article i, the "Work" shall be deemed to include and comprise the completed
design, engineering and construction required by this Agreement.
(c) Each part shall maintain the valves and other appurtenances on its
side of the system at the point of connection. All valves on the Interconnection shall
be set to normally remain closed and shall be used only as set forth herein.
1.4 Designs and Specifications. United Water shall supply to Eagle all
designs, specifications, drawings, schedules, blueprints, and engineering for the
Work for approval prior to finalization, which approval shall not be unreasonably
withheld.
1.5 Supervision of the Work. Except as otherwise provided herein, United
Water shall have the right and obligation to supervise and control the Work
including, but not limited to, the determination of construction means, methods,
techniques, sequences and procedures; monitoring and enforcement of compliance
with the project documents; approval and acceptance of the Work; and the review,
- 3-
approval and processing of applications for payment to contractors and materialmen
engaged on the Work. Neither part under this Agreement is in any respect acting
under the Agreement as agent, employee or representative of the other party to this
Agreement and is, in all respects, an independent contractor hereunder.
1.6 Access to and Acceptance of the Work. Each part shall, at all times,
be allowed reasonable access to, and opportunity to inspect the Work, and, before
providing emergency water supply under this Agreement, have the right to finally
accept the Work as sufficient for purposes of delivery of emergency water supply in
a reasonable manner, consistent with its water system operations.
1.7 Permits and Licenses. United Water shall obtain any permits, licenses
or other authorizations required under any federal, state or local law, statute, rule,
regulation, ordinance or other authority for the Work.
1.8 Ownership and Maintenance of the Interconnection. Eagle shall retain
ownership of the Interconnection vault and shall maintain responsibility for the
electrical utility service costs of the Interconnection. Each part shall have all right,
title and interest thereto, and shall own the piping, valves, meters and
appurtenances on its own portions of the Interconnection as identified on Exhi~it B,
and shall be responsible for maintaining same. Maintenance and replacement
costs of the Interconnection items that are to be co-owned by the parties, such as
the meter, data logger, and vault hatch, etc. shall be shared equally by the parties.
- 4-
ARTICLE II
Supplies
2.1 Sale and Purchase of Emergency Water Supply (Supplies). In
accordance with this Article II, each party shall deliver and sell, and the other part
shall receive and purchase the Supplies through the Interconnection from time to
time during the term of this Agreement. The sale and purchase of Supplies shall
only occur as the result of a scheduled or unexpected event, temporary in nature.
2.2 Notice of Intent to Receive and Purchase Supplies through the
Interconnection. Because the Interconnection is controlled by PRV's, a pressure
drop caused by a scheduled or unexpected event wil initiate Interconnection
activation. As soon as either part is aware of the Interconnection activation, that
part is obligated to notify the other part immediately. The receiving party shall
then notify the supplying part within four (4) hours as to the nature and expected
duration of the emergency, and with regard to the anticipated volumes of water
required. Notices pursuant to this paragraph may be verbal, but shall be confirmed
within two (2) business days in writing, which may be transmitted by facsimile or
emaiL.
2.3 Supply. Availabilty of supply by a supplying part is dependent upon
that part's ability to supply water at and during the time of the request by the
requesting party.
2.4 Meter Readings and Tests. Eagle and United Water shall each have
the right to access the meter at the Interconnection and to conduct a test of meter
accuracy. All costs associated with each part's exercise of this right shall be the
- 5-
responsibility of such part. The parties agree to share equally any and all costs for
repairing, recalibrating or replacing the meter if it is found to register inaccurately
beyond the American Water Works Association (AWWA) Standards of tolerance. If
the meter is found to register inaccurately beyond a range of tolerance in
accordance with AWWA Standards, an adjustment shall be made to the bils
rendered for service through the Interconnection for the period of time elapsed since
the last previous meter test, but no longer than one year from the current test. The
adjustment to the bil wil be based upon the product of total consumption recorded
by the meter since the last meter test, or one year prior, and one-half the percentage
variance in the accuracy of the meter as determined upon its being tested.
2.5 Charges and Biling Procedures. For billng purposes, the
Interconnection meter shall be read by the supplying part in accordance with its
regular meter reading schedule. Each party shall bil the other in arrears for volumes
delivered to the other through the Interconnection for the period. The rate for service
supplied under this Agreement by United Water shall be the Volume Charge set
forth in United Water's Schedule 1, General Metered Service, as the same now
exists or may hereafter be amended. The rate for service supplied under this
Agreement by Eagle shall be the Consumption Rate set forth in City of Eagle
Resolution 08-33 as the same now exists or may hereafter be amended. No
"customer", "service", "fixed", "franchise" or "IDEO" fees or charges of any type shall
be applicable for billng purposes by either part. Upon receipt of a bil for Supplies,
the receiving part shall make payment in full to the providing part within thirt (30)
days of the date of the bilL.
- 6-
2.6 Water Quality, Quantity, and Pressure.
(a) Each party shall use its best efforts to ensure that the Supplies
furnished hereunder shall be potable and in compliance with all applicable federal
and State of Idaho laws and regulations in effect at the time the Supplies are
delivered to the other party (collectively, the "Water Quality Laws"). Neither party
shall be responsible for the quality of water beyond the point of delivery to the other
party's system.
(b) The maximum instantaneous and the maximum daily Supplies
available for use by a receiving part through the Interconnection are as established
below:
Maximum Maximum Daily Supply
Instantaneous Supply
Eaale supplv to United Water 825 GPM 1.100 MGD
United Water supply to Eagle 1,500 GPM 1.440 MGD
(c) Unless auxilary pumps are authorized by the supplying party, system
pressures available are subject to existing hydraulic conditions at the time of use
and are subject to change without notification to or by either part.
ARTICLE II
Miscellaneous
3.1 Commencement and Term; Effective Date.
(a) The term of this Agreement shall commence on the date of execution
hereof and shall run for a period of five (5) years. This Agreement shall renew
- 7-
automatically from year to year thereafter, unless either part gives notice to the
other eighteen (18) months in advance of its intent to terminate.
(b) Notwithstanding the foregoing, the obligations to provide Supplies
under this Agreement shall not become effective unless and until this Agreement is
approved by the State of Idaho Public Utilties Commission ("Commission").
Immediately following execution of this Agreement, the parties shall prepare a joint
application to the Commission for approval of this Agreement. Each party agrees to
use reasonable best efforts to obtain approval, and each part shall take no ~ction
inconsistent with obtaining approval of this Agreement by the Commission.
3.2 Force Majeure. If the ability of either part to deliver the Supplies is
interrupted or impaired, in whole or in part, due to failure of equipment or facilties,
leaks, required repairs to facilties, strikes, Acts of God, or other extraordinary
circumstances, occurrences or conditions beyond the parties' control, including
action by governmental bodies and authorities, then during the period of such
interruption or impairment, the delivery and purchase obligations described herein
shall be suspended proportionately. Each party specifically acknowledges,
understands and agrees that the obligations of the other part to deliver the Supplies
requires only the exercise of ordinary and reasonable care under the circumstances
to maintain the Supplies and have such available for delivery hereunder, and that
the part delivering Supplies through the Interconnection shall not be liable to the
other part for any interruption of, or curtailment in the Supplies caused by
circumstances beyond its control.
- 8-
3.3 Condition Subsequent. Each party's respective rights and obligations
hereunder are conditioned upon and subject to the receipt of: (a) all necessary, final
and appealable zoning, subdivision and land development approvals; and (b) any
and all permits and licenses required by federal, state and local governments or
agencies thereof to permit the construction and operation of a particular
Interconnection. The parties shall use their best efforts to apply for and obtain all
necessary approvals, permits and licenses at the earliest time practicable under the
circumstances.
3.4 Indemnity.
(a) United Water agrees to indemnify, defend and hold harmless Eagle
and its respective successors and assigns, from and against any and all claims,
demands, causes of actions, suits, judgments, debts, liabilties, losses, damages,
and expenses (including reasonable fees and disbursements of legal counsel) of any
kind whatsoever ("Losses") that may be sustained or suffered by Eagle and are
caused by any material misrepresentation, breach or non-performance by United
Water with respect to any representations, warranties, undertakings, agreements,
covenants or obligations of United Water contained in this Agreement.
(b) Eagle agrees to indemnify, defend and hold harmless United Water
and its respective successors and assigns, from and against any and all claims,
demands, causes of actions, suits, judgments, debts, liabilities, losses, damages,
and expenses (including reasonable fees and disbursements of legal counsel) of any
kind whatsoever ("Losses") that may be sustained or suffered by United Water and
are caused by any material misrepresentation, breach or non-performance by Eagle
- 9-
with respect to any representations, warranties, undertakings, agreements,
covenants or obligations of Eagle contained in this Agreement.
3.5 Successors and Assigns; No Third-Party Beneficiaries. This
Agreement shall be binding upon and shall inure to the benefit of the parties'
respective successors and permitted assigns. This Agreement is deemed to be for
the benefit of the parties hereto, and no entity not a party to this Agreement,
including without limitation industries or persons supplied by either part, shall
acquire any right or claims by reason of this Agreement.
3.6 Authority and Binding Effect. Eagle and United Water each represent,
warrant and affrm to the other: (a) their authority and power to enter into this
Agreement and to make, perform and carry into effect their respective comrnitments,
obligations and undertakings as set forth herein; (b) their authority to enter into and
perform each of the transactions contemplated hereby; (c) that all consents and
authorizations requisite to their execution of this Agreement and performance
hereunder have been obtained; (d) that this Agreement, the transactions
contemplated hereby and the parties' performance hereunder wil not violate any
federal, state or local law, statute, regulation, rule, ordinance, tariff term or other
similar authority application to either of them; and (e) when executed, the Agreement
shall constitute a valid and binding obligation, enforceable by each part against the
other in accordance with its terms.
3.7 Consent to Assignment. The parties' respective rights and obligations
hereunder shall not be assignable or delegable whether by sale, assignment, merger
or otherwise without the prior written consent of the other except if another entity
- 10 -
purchases all or substantially all of the assets of either part, in which case
assignment shall be effective upon notice to the other part.
3.8 Amendment. This Agreement may be amended only by written
instrument, signed by the part to be bound.
3.9 Entire Agreement. This Agreement embodies the entire agreement
between the two parties with reference to the subject matter hereof, and there are no
agreements, understandings, conditions, warranties or representations, oral or
written, expressed or implied, with reference to the subject matter hereof that are not
merged in this Agreement or superseded hereby.
3.10 Terms Severable. Should any term of this Agreement be held invalid
or unenforceable, such determination shall not render the remaining terms of this
Agreement invalid or unenforceable unless to do so would cause the Agreement to
fail of an essential purpose.
3.11 Notices. Any notices required or permitted to be given hereunder shall
be in writing, shall be effective upon receipt (unless otherwise provided herein), and
shall be delivered by facsimile transmission or by United Water States mail, first-
class postage prepaid, addressed to the parties as follows:
If to United Water:
General Manager
8248 West Victory Road
P.O. box 190420
Boise, 1083719-0420
Phone: 208-362-7327
Fax: 208-362-7069
Email: greg.wyatt~unitedwater.com
- 11 -
with a copy to:
United Water Water Management & Services
200 Old Hook Road
Harrington Park, NJ 07640
Attention: Legal Department
telecopy (201) 767-7018
If to Eagle:
Public Works Director
660 E. Civic Lane
P.O. Box 1520
Eagle, ID 83616
3.12 Titles. The titles appearing herein have been inserted for convenience
of reference only and shall not be deemed a part thereof or considered in construing
the parties' rights and obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed and delivered, and their respective corporate seals to be hereunto
affixed by their duly authorized offcers, as of the day and year first written above.
UNITED WATER IDAHO INC.
By:
S, MAYOR
Name:
Title: ~ ¡:/løø~
lerkf easurer ,,¡IIU"'"", 'i,
......' C\,íY Op ",.. h 'i
(CITY SEAL) ,:.... ............:;-1 'i..~ * .. c.0RPo.. ..~ ~:: #f"' · \. ":: : .. .A:tn:- .- s ... ('. ."(Je'Z b ..: ~ ~i .(A i : :; 7' ...;.Po .( ,\,... *" $
.... .,.; ...~-1TED \'1.. ,:
;', "...0 ........0 ","IIII P IDA.~ ........
"iiiiiun""'" - 12 -
State of Idaho
County of Ada
Sub~cribed and sworn before me this
~y br~taj p. W\ftI
,.ÄiUU....' 'i,.... \l0RCu ..... '... ..........1'/0 ....." . v.....L ... '-
. ~. ~ÅRY.. ~:.S: o~ .:--i~, , .i.'. 2;"' l ¡
;, ~pu~\l ~ .~ ¡" ,:' ~e" '.'\' !I
.,~ Jl¡. -... \04 ,
"##"Øl A tS of l",~''-it....",t
~d. "- day of ~~ ,2010
Lj~ èl ~.w:t~PUb7~
My Commission Expires on: r i J ,40 i '0i
- 13 -
EAGLE INTERTIE PRELIMINARY ASSUMPTION OF PROBABLE COST
Cost Allocation
DESCRIPTION UNITS COST TOTAL United Eagle
PIPING MODIFICATIONS LABOR 48 $50 $2,400 $2,400
PIPING MATERIAL 1 $897 $897 $897
6" CLA-VAL PRV Combo (RATE OF FLOW)1 $4,582 $4,582 $4,582
8" FLOW METER 1 $2,200 $2,200 $1,100 $1,100
BILCO HATCH 1 $3,000 $3,000 $1,500 $1,500
TELMETRY LABOR 15 $55 $825 $413 $412
DATA LOGGER 1 $2,500 $2,500 $1,250 $1,250
TRANSDUCER 2 $500 $1,000 $500 $500
SUB TOTAL $17,404 $12,642 $4,762
10% Omissions & Contingency $1,740 $1,264 $476
6% state tax on materials $851 $590 $261
Total $19,995 $14,496 $5,499
-1
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