20070518Yorgason rebuttal.pdf

Robert B. Burns, ISB No. 3744
MOFFATT, THOMAS, BARRETT, ROCK &
FIELDS, CHARTERED
101 S. Capitol Blvd., 10th Floor
Post Office Box 829
Boise, Idaho 83701
Telephone [phone]
Facsimile [phone]
7 rbb~moffatt.com
17-047.
Attorneys for Capital Development, Inc.
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
12 APPLICATION OF UNITED
WATER IDAHO INc. TO AMEND
13 AND REVISE CERTIFICATE OF
CONVENIENCE AND NECESSITY
14 NO. 143
CASE NO. UWI-O7-
DIRECT REBUTTAL
TESTIMONY OF INTERVENOR
J. RAMON YORGASON IN
SUPPORT OF APPLICANT
UNITED WATER ID AH 0 IN C.
Yorgason, Di-Reb 1
Capital Development, Inc.
BOI MT2:650234.4
Please state your name and identify your position with Intervenor
Capital Development Inc.
My name is J. Ramon Yorgason, and I am the president of Capital
Development, Inc.
Are you the same Ramon Yorgason who provided direct testimony
in this proceeding?
Yes.
What is the purpose of your rebuttal testimony?
I would like to respond to certain statements contained in the direct
testimony of Mayor Nancy Merrill and of Vern Brewer.
Mayor Merrill, at pages 3-4 of her direct testimony, and Vern
Brewer, at pages 2-3 of his direct testimony, have expressed concern that your
Lanewood Estates development conform with the City of Eagle' s comprehensive
plan. Do you know whether your development application to Ada County is in
substantial compliance with Eagle s comprehensive plan, as well as its planning
and zoning requirements?
Yes, it is. We have undertaken a review of our Ada County
application to determine its compatibility with Eagle s comprehensive plan and its
planning and zoning requirements and believe our Lanewood Estates
development both substantially complies with Eagle s requirements--other than
with respect to who would provide water service to the development-and would
be approved by Eagle with but possible minor revisions if our property were
annexed by it.
Yorgason, Di-Reb 2
Capital Development, Inc.
BOI MT2:650234.4
Has the City of Eagle initiated annexation proceedings with respect
to your Lanewood Estates development?
No. Although we have been invited by representatives of the City
of Eagle to request annexation, Eagle has neither initiated annexation proceedings
itself nor requested our consent to its annexation of our property.
At pages 6-7 of his direct testimony, Vern Brewer expressed
concern that allowing United Water to serve the Lanewood Estates development
would frustrate completion of Eagle s water system and associated services. Is
this a legitimate concern?
I don t think so. I believe Mr. Brewer s primary concern has to do
with the extension of a 16" water main through the Lanewood Estates
development. This water main can obviously be extended through Lanewood
Road already, and I also have no problem with Eagle extending the water main
beneath the streets of our development if Eagle will construct the main in
conjunction with the orderly improvement of our project. Capital Development
Inc. will provide Eagle with an easement to this effect, if it requests one.
Do you have a response to Mr. Brewer s additional concern that
excluding Lanewood Estates from Eagle s system would raise the cost of storing
water to the remaining residents of Eagle?
Yes. Eagle should reduce the size of its planned storage reservoirs
and related improvements to accommodate the reduced number of users of
Eagle s services resulting from United Water s service of the Lanewood Estates
development. By doing so, those connected to Eagle s system will pay for only
Yorgason, Di-Reb 3
Capital Development, Inc.
BOLMT2:650234.4
those lesser improvements they use, and the residents of Lanewood Estates will
not be asked to subsidize the residents of Eagle.
Do you have a concern that the residents of Lanewood Estates
might be required to subsidize the residents of Eagle?
Yes, I do. I have been advised by legal counsel that because our
property is not within the city boundaries of Eagle, Eagle would have the right
under the law to discriminate in multiple respects against those living in
Lanewood Estates, such as by charging them more for water or limiting service in
the event of a water shortage. In fact, I was advised that Section 6-4G ofthe
Eagle Municipal Code specifically provided for the preferential treatment of the
residents of Eagle with respect to water service until last month when it was
amended because of this PUC case. Of course, Eagle can also amend its
municipal code again as soon as this PUC case is decided, or at any time later, to
discriminate in any manner it chooses without recourse by me or the future
residents of Lanewood Estates or the Puc. That concern is part of the reason I
asked United Water-which I have found to be a tested and reliable provider
whose rates and services are regulated by the PUC-to provide water service to
Lanewood Estates.
What other reason did you have for asking United Water to
provide water service to Lanewood Estates?
Although both Mayor Merrill and Mr. Brewer have testified about
the anticipated construction ofthe necessary improvements to Eagle s water
system for Eagle to timely serve Lanewood Estates, Mr. Brewer admits in his
Yorgason, Di-Reb 4
Capital Development, Inc.
BOLMT2:650234.4
direct testimony at page 3 that Eagle does not have established water rights to
provide this service and that Eagle s pending applications for such water rights
have been protested. Thus, even assuming Eagle s pending applications are
initially approved, a judicial appeal could deprive the City of Eagle of the
necessary water rights to provide water service for an indeterminate period, and
perhaps forever. Considering the fact that we are currently paying $76 000 a
month in interest on our purchase of the first half of the land and, as a result of
our recent negotiations with the seller of the property, will be paying more than
double that amount as we take down the second half of the land in two increments
over the next two years, we simply cannot afford to run the risk that Eagle s hopes
with respect to getting its water system operational this summer will prove
unfounded.
Finally, Mayor Merrill also expressed concern at pages 2-3 of her
direct testimony that the City of Eagle will be adversely impacted by your
Lanewood Estates development because the residents of the development will use
the amenities that Eagle offers. What is your response to this concern?
As I earlier indicated, Lanewood Estates will be developed in
substantially identical form whether or not it is annexed by the City of Eagle.
Accordingly, whether United Water or Eagle provides water service-which is
really what the present controversy is all about-the impacts on Eagle will be the
same. Further, the principal impacts of our proposed development will be on the
roads, sewers, schools, and fITe and sheriff s departments, and the City of Eagle is
not responsible for any of these "amenities." Finally, if Eagle wants the residents
Yorgason, Di-Reb 5
Capital Development, Inc.
BOI MT2:650234.4
2007.
of Lanewood Estates to be residents of the City of Eagle, Eagle can always annex
their property.
DATED this 18th day of May 2007.
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1. Ramon Yorga
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SUBSCRIBED AND SWORN to before me this 18th day of May
Yorgason, Di-Reb 6
Capital Development, Inc.
BOI MT2:650234.4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 18th day of May 2007, I caused
a true and correct copy of the foregoing DIRECT REBUTTAL TESTIMONY
OF INTERVENOR J. RAMON YORGASON IN SUPPORT OF
APPLICANT UNITED WATER IDAHO INc. to be served by the method
indicated below, and addressed to the following:
Gregory P. Wyatt
UNITED WATER IDAHO, INC.
P. O. Box 190420
Boise, ID 83719
E-mail: greg.wyatt~unitedwater.com
Dean J. Miller
McDEVITT & MILLER, LLP
420 West BanriockStreet
P. O. Box 2564
Boise, ID 83701.
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E-mail: joe~mcdevitt~miller.com
Scott Woodbury'"
Deputy Attorney General
IDAHO PUBLIC UTILITIES COMMISSION
472 West Washington Street
P. O. Box 83720
Boise, ID 83720-0074
E-mail: scott.woodbury~puc.idaho.gov
Bruce M. Smith
MOORE, SMITH, BUXTON & TURCKE
CHTD.
950 West Bannock Street, Suite 520
Boise, ID 83702
E-mail: bms~msbtlaw.com
J. Ramon Yorgason, President
Capital Development, Inc.
6200 N. Meeker Place
Boise, ID 83713
E-mail: capdev~cableone.net
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Yorgason, Di-Reb 7
Capital Development, Inc.
BOI MT2:650234.4