20240405Comments_3.pdf

RECEIVED
Friday, April 5, 2024 10:42:25 AM
IDAHO PUBLIC
UTILITIES COMMISSION
Idaho Public Utilities Commission
P.O Box 83720
Boise, Idaho 83720-0074
RE: PUBLIC COMMENTS (VIA EMAIL TO: [e-mail])
CASE NO. SWI-W-24-01
SYRINGA WATER COMPANY
Application for Certificate of Public Convenience & Necessity (CPCN)
INTRODUCTION:
These Comments are filed by the Boards of Directors for the Syringa Heights
Homeowners'Association, Additions 5-9, and The Syringa Grove, both water customers
of the Syringa Water Company. (Customers). An additional HOA, Syringa Heights
Additions 1-4, have chosen not to participate in these Public Comments although they
too are water customers of the Syringa Water Company.
All three HOA's comprise 77 lot owners in our respective 3 subdivisions, 54
current residential water connections, plus 4 water connections at the HOA entry gates,
and 23 vacant lots with existing water meter connections that are guaranteed water
service in the future by virtue of their lot ownership in Syringa Heights. All properties are
in Kootenai County, Idaho and all are serviced by the Syringa Water Company. Bob
Hamilton, owner of the Syringa Water Company, was also the developer of the Syringa
Heights development and sold lots to customers with water, electrical and natural gas
connections to each lot. Each property purchaser was also required to pay Bob
Hamilton $5,000 -$7,000. as a connection fee to the Syringa Water Company system
that uses treated CdA lake water for its customers.
On information and belief, Syringa Water Company services approximately 108
total water connections, 79 current plus 29 planned in the future. This information is to
the best of our knowledge as the HOA's have never been able to get an accurate count
of total water connections serviced by the Syringa Water Company. The significance of
this information is our belief that for many years, dating back to the inception of all 3
developments, total water storage capacity of the Syringa Water Company, for designed
daily water demand and, most importantly, required fire protection for all Syringa and
Grove homeowners, has been deficient for the current 54 residential connections, and
even worse when the remaining 23 vacant lots are eventually built upon. To complicate
this situation further, when the additional 31 non-HOA water connections that Syringa
Water Company also currently services, or will serve in the near future (making 108 total
water connections), the total existing water deficiencies become significant and
potentially very dangerous if a fire were to break out in any of these 3 developments.
1

Fortunately, no fires have occurred, but the risk to HOA homeowners has been present
each year for many years nonetheless, raising fire insurance liability issues as well.
Customers contend the above facts reveal long-standing water system design
deficiencies and development project priorities over the years. Adequate water storage
capacity, especially for fire protection for all HOA rate-paying members, should have
been provided since the inception of these developments. It was not, and now Syringa
Water Company is engaged in an aggressive effort to substantially increase water rates
to its existing customers in order to correct the long-standing deficiencies and also to
improve and expand its water system infrastructure for new rate paying customers.
Customers assert that correcting long-standing water system deficiencies should not be
considered capital improvements. The deficiencies should have been corrected years
ago, at the sole expense of Syringa Water Company, and not its current customers.
Further, the proposed expansion of the Syringa water system to benefit new water
customers should be financed by them, and not existing rate paying customers. These
are NOT operating expenses of the company.
Customers contend that the Presumption of Contributed Capital (IDAPA
31.36.01) Rule No. 103, should apply to these issues and prevent Syringa Water
Company from including these repair and development costs into their base water rates
for Customers.
Customers further assert that funding for correcting these critical system
deficiencies could have been paid by the $5,000-$7,000. water system connection fees
collected by the Syringa Water Company from each property purchaser over the last 10-
15 years of operation. For the 108 water connections it is estimated that Syringa Water
Company currently services, these $5-7,000 connection fees should have produced
$540,000. - $756,000 in income to the Syringa Water Company, a substantial
contribution to the costs to correct the long-standing infrastructure deficiencies. The fact
that these choices were not made by Syringa Water Company years ago should not
permit them to now raise water rates for all existing customers to finance these long
overdue water system repairs.
ISSUES:
1 . On information and belief, the Syringa Water Company has been an Idaho Domestic
General Business Corporation since November 2, 2001 (date of Incorporation per
the Idaho Secretary of State, control ID 0000430573). As an Idaho water utility,
engaged in selling water to the public, it appears that the Syringa Water Company
was required by Idaho law to be regulated by the IPUC years ago, (Idaho Code Title
61 , Chapter 1 , 61-104, 61-125, 61-129). Such regulation should have begun shortly
after the Syringa Water Company's incorporation on November 2, 2001 , and before
2

beginning the sale of water to rate paying customers. Twenty-two + years later,
Syringa Water Company is only now applying for regulation by the IPUC.
- What is the consequence to the Syringa Water Company for failing to apply for
IPUC regulation for the last 22+ years, as required by Idaho law, and operating
unregulated since 2001?
- Would IPUC regulation over the last 22+ years have ensured that the existing
water storage and fire protection deficiencies by Syringa Water Company would
not have been allowed to have occurred due to IPUC supervision?
- Will the new IPUC regulation of Syringa Water Company address the propriety of
the new 2024 water rate increases by Syringa Water to its existing customers in
order to pay for the correction of long-standing system deficiencies and also
improve and expand its water system infrastructure for new water rate
customers?
2. For at least the last 10+ years, the monthly water bill from Syringa Water Company
was $50.00 per month that included up to 20,000 gallons of water per month. Higher
water consumption resulted in incrementally higher water bills. In early 2023, the
monthly water fee increased from $50.00 to $60.00 that also includes up to 20,000
gallons of water. Effective January 2024, Syringa Water Company rates have now
increased to $110.00 per month for 20,000 gallons of water.
BACKGROUND: In December 2023, HOA water customers were notified by
Syringa Water Company of substantial water rate increases to begin in January
2024, reportedly to finance capital improvements of the Syringa Water system.
These improvements are reportedly necessary to increase water storage for existing
and proposed new water connections and to provide adequate fire protection water
storage as well.
The new 2024 water rates proposed by Syringa Water Company, mailed to each
Customer in their December 2023 water service invoice (See Attachment # 1), appear
to have been created to cover new annual operating costs of the Syringa Water
Company according to their draft 2024 Expense and Budget sheet.
(See Attachment # 2).
Customers contend these new water rates, and the method of applying the new
rates, appear to be a result of inaccurate calculations to determine the dollar amounts
needed to be charged to existing users. The new rates appear to be based on total
annual gallons used per customer and invoiced on a monthly basis using a sliding tiered
scale, in order to cover annual costs of the Syringa Water Company and a reasonable
profit.
3

Customers assert that, in addition to the arguments above that NO water rate
increases should be justified to correct long-standing system deficiencies, regardless of
water consumption tier, the new upper water consumption tiers 3,4 and 5 are punitive
and discriminatory, without any factual data to backup any increase in cost to produce
more water. The cost of the lake water itself is static regardless of consumption levels
and only the proportionate additional water treatment costs should generate additional
water costs to the higher water users. Thus, the new upper consumption tiers are solely
for the purpose of punishing higher water consumers that Bob Hamilton refers to as
"water hogs". Since the raw product cost of lake water remains near zero each year,
what then explains the need to drastically increase water prices for existing customers
for 2024?
The answer is obvious — Syringa Water Company needs capital to correct the years
of water system deficiencies in storage capacity and fire protection water storage. As
argued above, these expenses should be borne by Syringa Water Company alone and
not passed on to its existing water customers. These new expenses should be
considered "contributed capital" and not allowed. Same with Syringa Water seeking
capital to pay for an expansion of its entire water system to accommodate additional
rate paying customers. The cost of these capital improvement expenses should be
included as development expenses where the new water connections will be installed
and amortized by Syringa Water Company for new water customers to pay with their
own water bills, and not by existing customers in Syringa Heights and Syringa Grove.
On January 8, 2024, the Presidents of the Syringa Heights HOA, and The Grove
HOA, sent Bob Hamilton a letter in response to the new proposed 2024 water rates.
(See Attachment # 3). This letter expressed dissatisfaction with the new rate increases
and concerns over the rate structure calculations explained by Bob Hamilton. Also,
mathematical errors were found as well creating even more confusion about these
proposed rate increases.
In response to the above January Bch letter, Bob Hamilton requested a "face to face"
meeting with the Presidents of the 3 HOA's. This meeting was held on February 2, 2024
at Bob Hamilton's residence. Bob handed out a 5 page undated document that he
prepared in an attempt to explain his point of view that included inaccurate calculations
with absolutely no backup data. (See Attachment # 4). His letter was argumentative,
condescending and threatening to the HOA customers who out of necessity, purchase
his water every month and every year.
At this meeting, Bob Hamilton also advised that "this document was not to be made
public and he would not provide any further information to the HOA's from this point
forward, only to the PUC". This 5 page document did not explain to our satisfaction how
the rates were determined nor justified. The document also provided a totally new
method of calculation for the monthly invoices by applying the rates to the gallons used
4

in contradiction to the method used in previous years. This new method may appear to
be fair and reasonable for tiers 1 and 2, but for tiers 3,4 and 5 it takes the punitive action
to another level, when in reality it should be calculated using the same method as tiers 1
and 2.
3. Attachment # 6 is an example of new 2024 rates and calculations that Syringa
Water Company intends to charge as described on page 4 of the 5 page document
that Bob Hamilton presented to the 3 HOA presidents at the February 2, 2024
meeting. (Attachment # 4). The proposed 2024 rates were never substantiated nor
justification data provided, they are purely arbitrary. Also, the method of applying
those rates to the gallons used has been and continues to be incorrectly performed
for upper tier users.
4. Customers contend that the water rates charged for the each tier up, i.e., Tier 1 to
Tier 2, Tier 2 to Tier 3, etc, should begin with one (1) gallon above the previous tier
and not revert back to the very beginning of zero gallons used as is presently
proposed by Syringa Water Company. (See Attachment # 7).
5. As previously indicated, total water storage capacity for daily water system
operations, plus fire protection, is currently deficient. (See Attachment #5). This is
true for current users and will continue to be true when vacant lots with water meter
boxes in our subdivisions are built out, as they are guaranteed users. This
attachment is page 35 of a Welch Comer engineering report, dated July 10, 2023.
Customers encourage the IPUC to review the full Welch Comer report that consists
of a complete evaluation of the Syringa Water Company including its present water
system status and projections for proposed system upgrades for additional
customers to be added to the current water system.
6. Attachment #8 is a letter from Kootenai County Fire & Rescue, dated September
26, 2022, to Welch Comer Engineers which states in essence that any new
residential lot connections for the Syringa Water Company will fall under the most
current adopted fire code at the time of new lot creation. The nearby Camas Estates
subdivision, also developed by Bob Hamilton, was approved by Kootenai County on
November 11 , 2018, which resulted in 4 new lots being connected to the Syringa
Water Company system. Customers contend these 4 new water connections
required Syringa Water Company to comply with the 2018 Fire Code for water
storage capacity of 180,000 gallons. Their failure to comply renders the entire
Syringa Water system to be grossly deficient by 175,542 gallons. (See Attachment
#5) which is page 35 of the Welch Comer report dated July 10, 2023.
7. Welch Comer also performed a transfer pump analysis for the Syringa Water
Company and this analysis is contained in their July 10, 2023 report. The analysis
showed that the transfer pump capacity is currently deficient. This is true for current
5

users and will continue to be true when vacant lots in our subdivisions are built out
as they are guaranteed users. (See Attachment # 9).
Customers have not been able to obtain from Syringa Water Company accurate
and/or reliable data on the number of other connections outside of our subdivisions that
have also been guaranteed water connections. All additional water user connections
outside of our subdivisions without improvements to the current system will only make
current deficiencies worse, especially and most importantly, adequate water storage for
fire protection for our three HONs.
Syringa Water Company has had 15-+- years to correct these deficiencies and failed
to do so. In many instances they have failed to even acknowledge any deficiencies exist
or to what degree. As a private corporation, Syringa Water Company has been reluctant
to provide us with requested information in the past. In the past two years, our HOA's
have tried to get accurate and reliable data from Syringa Water Company to determine if
our homes were in danger from inadequate supplies of water for consumption and fire
protection. We have received a limited amount of conflicting data, to the point it is
difficult to rely on information they provide either verbally or in writing, due to the lack of
backup data. Syringa Water Company now refuses to provide any information to our
HOA"s as of February 2, 2024.
RELIEF SOUGHT:
1 . For Syringa Water Company to be regulated by the IPUC from this point forward
as required by Idaho law and, as interested parties, Customers be furnished
copies of all documentation provided by Syringa Water Company to the IPUC, as
allowed by IPUC Rules and Regulations.
2. For the IPUC to determine whether it is appropriate for the Syringa Water
Company to raise water rates on current HOA customers to correct years of
water system deficiencies for inadequate water and fire protection water storage
or does the Presumption of Contributed Capital rule apply?
3. For the IPUC to determine whether it is appropriate to raise water rates on
current HOA customers for water system upgrades to provide water service to
new non-HOA customers in other developments or does the Presumption of
Contributed Capital rule apply?
4. For Syringa Water Company to be regulated by IPUC from this point forward for
the purposes of investigating and determining a rate schedule that accurately
calculates the water rates to cover allowable costs and a reasonable profit on an
annual basis without a windfall profit from the increased revenue collected from
6

high end users (tiers 3,4 and 5) over and above that collected from all other
users — Idaho Code Title 61 , Chapter 5, 61-502 and 61-503.
5. As a compromise for Syringa Water Company operating for 20 + years without
regulation as required by law, we also request that IPUC immediately require
Syringa Water Company to revise their method of applying the rates to the
gallons used in a proper and correct manner until the tariffs are established and
approved by the Commission, giving IPUC an opportunity to complete their
investigation and audit to determine a rate schedule and method of calculation
that is fair and reasonable for ALL parties.
6. For Syringa Water Company to increase their water storage capacity in
compliance with 2018 Fire Code Regulations to eliminate any deficiencies at no
cost to the lot owners of Syringa Heights and The Grove.
7. For Syringa Water Company to increase the transfer pump capacity to eliminate
any deficiencies at no cost to the lot owners of Syringa Heights and The Grove.
8. For Syringa Water Company to correct any other deficiencies that may exist at
this time, whether known to us or not in order to bring the system into compliance
at no cost to the lot owners of Syringa Heights and The Grove.
9. For the IPUC to regulate Syringa Water Company from this point forward to
insure that no additional water connections are made to the existing system
(other than those guaranteed to the currently platted vacant lots in our respective
subdivisions) without an engineering and compliance review for the necessary
upgrades at no cost to our lot owners.
10.Syringa Water Company has recently signed an agreement with a Bennett Bay
development project nearby to provide water to an apartment complex to be built
and to a restaurant near this project. Ten new water connections are
contemplated. Kootenai County public records indicate that a Water Connection
and Service Agreement was filed with the County on October 4, 2023. The
parties to this agreement are Sawmill Point Development, Inc. (Bob Hamilton)
and WG Bennett Bay Apartments, LLC, et al. (See Attachment 10).
QUESTIONS:
- Does the Presumption of Contributed Capital (IDAPA 31 .36.01) Rule No. 103,
apply to this new water project by the Syringa Water Company, which is
unrelated to our 3 HOA's and which expands their customer base? Syringa
Customers contend that the total costs to Syringa Water Company for this new
water project should be considered contributed capital and excluded from the
base rate charged to customers in Syringa Heights and Syringa Grove HOA's.

- Can the IPUC require that Syringa Water Company manage the supply of water
to the new Bennett Bay connections separately from the Syringa Heights and
Syringa Grove developments, including allocation of separate water supply costs
that determine the water rates to be paid by these new customers?
- Which customers have priority for water from the Syringa Water Company—
existing customers of the Syringa Heights and Grove HOA's or new customers
being contemplated in the Bennett Bay Development?
- Bob Hamilton has stated if the Bennett Bay project does not proceed, he has no
intention of increasing the current Syringa water storage capacity to bring the.
system into compliance for water supply and fire protection.This is a major
concern for Customers and we believe this would be a violation of'Idaho law.
Respectfully submitted on behalf of the membership of the Syringa Heights HOA,
Additions 6-9, and the Syringa Grove HOA.
DATED: � �
Pete Capano, residerd
Syringa Heights Homeowners'Association
2038 S. Panoramic Drive
Coeur d'Alene, ID 83814
Ro6e4k F. Ferrell, President
Syringa Grove Homeowners'Association
1913 Scharelant Lane
Coeur d'Alene, ID 83814
Attachments 1-10
8

ATTACHMENT 1

SYRINGA WATER COMPANY
PO BOX 3064
COEUR UALENE, ID 83816
208 - 704- 2041 * [e-mail]
n c o t
Please note the new phone number now available for customer service messages and the new rates for the
2024 year as stated in your recent mailer.
Tier Gallons used Rates/fees
Standard fee $60.00
1 st tier 1-20,000 gallons used $2.50/thousand gallons
2nd tier 20,001 -40,000 gallons used $4.00/thousand allons
3rd tier 40,001 - 80,000 gallons used $6.00/thousand gallons.
4th tier 80,001 - 120,000 gallons used $12.00/thousand gallons
5th tier 120,001+gallons used $14.00/thousand gallons
If you feel your contact information,billing address,or email information is not accurate in our system
please email any corrections to:
syring [e-mail].

ATTACHMENT

2024 SYRINGA WMER BUDGET—
Elds Asinell!<[e-mail]>
Tua W/17/2023 139 NO
Thbob haWtan<aiIswrbub@ho4W=m>
2024: SYRINGA WATER EXPENSES AND BUDGET.
C'Azi-:s. Uzsm:73-
1 MAL C
w2,73 FREQ JSi2T s2024�'
INSURANCE $ 8,000.00 ANNUAL 8,000m $ 665.67
BILLING&CLERICAL $ 4,000.00 ANNU,0J. 4,30.00 $ 400.00
OFFICE SUPPLIES $ 1,200.00 ANNUAL,_ $ 1,200.00 $ 100-00
LEGAL& TAX ACCOUNTING $ ,2.400.00 ANNUAL 2,400-00 $ 200.00
PERMITS AND FEES ANNUAL $ -
*f OTA71-14
POUVER&UTILITIES 26,1300.00 ANNUAL 26.OaD.00 2.168.67
ENGINEERING TECH 6,000.00 ANNUAL $ GAOUD $ 500.00
UEQ-WATER MASTER CONSULTATION $ 4,800.00 ANNUAL $ 4,800.00 $ 400.00
MATERIAL&TESTING SUPPLIES $ 3,600.00 ANNUAL $ 3.600.00 $ 300.00
WATER MASTER(avo has parday per 31.5 days at$30-00) $ 21,960.00 ANNUAL $ 21,960.00 $ 11.830.00'
METER READING(8 HRS per$30.00-May thru October) $ 1200.00 ANNUAL $ 1,200.00 $ 100.00
FILTER SCRAP(2man-4hrs each at$30-00 per hr) $ 480.00 2)(PER YR $ 480.00 $ 40.00
FILTER VACCUME(14 the per season-2hr.Part men at$30.00) 1,680-00 WC PER YR 1.680.00 $ 140.00
27t 07
it BUILDING REPAIR 6,000.00 ANNUAL 6,000.00 $ 600.60
FILTER LINER RE PLACELW4T(replacement approx.In 10 ym) $ 30,000.00 EVERY 10YRS- $ 3,000.00 $ 260.00
FILTER SAND REPLACEMENT(replement approx.In 6 yrs.)) $ 50,000.00 EVERY 6 YRS $ 8,000.00 $ 666.67
VEHICLES&EXCAVATORS $ 40,000.00 EVERY 5 YRS $ 8,000.00 $ 666.67
PUMP REPLACMENT $ 60,000.00 EVERY 20 YRS $ 3,1304.00 $ 250.00
`Ccl'(W'0�cl-o
C.9.S 7-
19%
20M AllikulwV-1 BuDir^R-1-T OTAL
Una Hems Never in Previous 13ud9K
llama Not Charged or Paid by ftdnga properties or Sawmill Point
10/1 71,7fll)'A A4K

Syringa Heights Flloffieor ners & Water Users
January 8, 2024
Bob Hamilton
President
Syringa Water Company
Coeur D'alene, ID 83816
Dear Bob,
We like to document at this time and inform you that the three HOA boards, on behalf of
all your (homeowners) customers, are displeased with the 2024 water rates, compilation
and graduated rate structure calculations. We concurred that with your explanation,
(both verbal and written), the new fee structure has created more questions and
confusion.
Below are examples:
Rates: we understand the price of doing business is increasing and just about every
thing and commodity has been affected by inflation. You mentioned you had compiled
these rates based upon your budget, divided by the number of users currently drawing
water, stated at 78. You also based funding this budget using the new monthly base of
$110. Question: does this take into account for the revenue received during the higher
consumption months? A quick calculation using the average monthly consumption for all
the homeowners, based upon a spreadsheet you shared with the board in August of
2021, is nearing 60K. Using proposed new rates, this threshold amounts to approx $400
of revenue per homeowner, far exceeding the budgetary base requirement of $110 per
month.
You also mentioned that your budget total would be divided by the number of users to
calculate your monthly based rate. How does this base rate change as new additional
users come on board? Can we assume that if the total budget expense (dividend) is
being shared by a higher number of users (divisor), the monthly base rate will be driven
lower?
Graduated Rate Structure: The fact that they are not linear but progressive, we feel they
are punitive as well as forced conservation. In analyzing said structure, in the chart
provided, you depict six separate consumption ranges and rates per 1000 gallons used.

We found several errors in your calculations and or we are confused as to the math or
formula used to calculate said rates.
I believe we can concur that for 2024, the base rate of $110 is figured at $60 for access
and $50 for 20K gallons ($2.50/K or 20 x $2.50 = $50). At range 20-40K, you charge
$4.00/K, meaning if a customer used 40K gallons, we would assume the base $110,
then 20K gallons at $4.00/K adds another $80 to the base $110 for a total of $190. You
calculate $240 at 36K, which by your math should actually be $174 ... $110 base plus
16K at $4.00 adds another $64!
Same for each and every chart range; at 40-80K, using your 63K example should be
$328 versus $404 (base $110, plus $80 for 20-40K plus $138 for 23K). For chart range
80-120K, using your 90K example should be $550 versus your $940, your chart range
120-160K, using your example 160K should be $1470 versus your $2340 and your final
chart range 160-200K, using your example of 200K should be $2030 versus your
$2900!
These are huge disparities that your customers need clarification on and if applicable,
correction!
And finally, we do need more explanation on how you will calculate the six month
wintertime usage without reading the meter. What we understand or assume is that you
will read the meter in May after six months usage and calculate total gallons consumed
and bill for any amounts above 120K, rebate if below. There's confusion since paying
the base at $110, $50 is charged for 20K of water per month. We further assume if we
consume less than 20K per month, invoices should reflect less than $110, thereby
making adjustments to the May invoice.
In closing: Bob, all three HOA's can agree that Syringa Water has provided great
service and great water. We can also appreciate that you maintained adequate supply
when other neighboring systems and that of CDA proper, had shortage issues or were
asked to conserve. Additionally, we want to recognize and thank you for the pumping
upgrades within the system to meet the 225 GPM engineering recommendation.
We believe the real issue since inception has been the reading of the meters, or lack of,
billing irregularities and miscommunication.
We trust that you will review this letter in earnest and communicate accordingly. Thank
you.
Respectfully submitted,
Syringa Grove HOA
Syringa Heights HOA 1-4 Additions & 5-9 Additions

ATTACHMENT 4

Regarding an unsigned letter dated 1/08/24.
First, I wish to emphasize that Syringa Water is in the process of applying for regulation by the
Idaho Public Utilities Commission and expenses budgets and rates may be reviewed and
regulated depending on the state's decision about regulating Syringa water.
Second, the information that I provided to the water users before the first of the year was a
courtesy only. My goal was to let people know why I was no longer working towards
annexation by North Kootenai Water. The rates they proposed were outrageous, but I
mentioned that I would not oppose proceeding to annexation if 60%+of water users wanted to
proceed.
It seems that the writer of the unsigned letter dated 1/08/24 either did not read the material I
had provided , or was incapable of understanding it. I am going to attempt to address the
contents of that letter point by point as clearly and simply as possible.
Under what appears to be a heading entitled, "rates", you make the false assertion that the
budget provided and rates extrapolated were somehow associated with a base rate of
$110.00. Nowhere in any material I provided did I say that.
The budget that I built and provided for reference is a compilation of costs and reserves
necessary to continue to provide safe and reliable water service. It was not based on a $110.00
base times 78 users. The $110.00 figure was used as an example of a user's cost when 20,000
gallons is consumed in one month. It represents a $60.00 access charge plus$2.50 per
thousand gallons X 20. If a customer uses less than 20,000 gallons in a month, then their bill
would be less.
For example, a user uses 10,000 gallons in a month.
The bill would be calculated as follows: $60.00 plus$2.50 X10 or $85.00. Have I made this
easy enough to follow? I.
On the spread sheet referenced, the paragraph entitled, "rates", is not representative of
average monthly use as you falsely assert. It is in fact the meter reading sheet for the month of
August 2021 --which I recall providing to only two people in strict confidence.
I did so to illustrate the excessive water use of some users. It is the meter readings for the
month of August -- usually the biggest water consumption month of the year. The average use
of "60,000 gallons per user" which you state, is rendered inaccurate by the fact that there
were 13 users at 100,000 gallons to 182,000 gallons each.
These are what I call "water hogs" or "special" users. The real average of normal users(48 of
61) is more like 40,000 gallons per month each. So that someone who actually uses an average
amount of water (40,000) would pay$190.00. In addition, your statement that a user of
60,000 gallons would pay around $400.00 for the month is grossly inaccurate. Let us do the
math.
$60.00 plus 20X$2.50 is $110.00 plus $4.00 X20 for the second 20,000 gallons or $80.00.
Are you with me so far?
Pg 1 -

Lastly$6.00 X20 for the last 20,000 or $120.00. For a grand total of$310.00.
The meter reading sheet you refer to above is titled "August 2021".
The first column is: previous meter read.
The second column is: present meter read and
The third column is: water consumed in gallons.
July, August, and September represent the biggest water use of the year every year. In the case
of August 202161 users used 3,806, 780 gallons. By contrast, winter use is usually at or just
under 1,000,000 per month -- substantially less.
Winter use accounts for seven months of the year. In order to illustrate for you, I copied the
daily use at the water plant for 23 days in January of this year , which is the date of the first
draft of this writing. In 23 days, the 78 users in the system used 719,000 gallons of water. If
we divide that number by 23 days we should get average daily use for the system. or 31,260
gallons per day.
Please correct me if I am wrong, but if we take the daily use and multiply it by the number of
days in the month, (31) we get a pretty accurate feel for the monthly use -- 969,090
gallons. When we divide that number by 78 users we get an excellent idea of average use per
month per user for seven months of the year.
Apply the rate formula and the bill for most people would be $60.00 + $2.50X 12.42= 31.05
for a total of $91.05. 1 can only conclude that throwing around the $400.00 amount as an
average is intentionally misleading.
In the second paragraph under the title, "below are examples" , you talk about calculation of
the base rate and adjusting bills downward as new users come on the system. The short
answer is "No.", and I will explain why in the next couple of paragraphs. When Avista adds a
100 home subdivision to the grid, do they adjust your bill downward? NO!
As I understand the IPUC process, a new budget is created by adjusting actual costs and
reserves every year and rates are computed based on that data.
The budget for 2024 is $123,334.40 (please see the budget I provided in the previous
information package.) Anyone who thinks they can run a company of this size and complexity
for that amount or less is welcome to do so. I feel certain that adjustments by the IPUC will
increase this amount considerably. The annual budget divided by 12 months ( the number of
months in a year) is $10,277.87 per month, divided by 78 users is$131.77 not$110%. Since
we have established that the average user may pay between $85.00 and$110.00 per month in
the winter months, we have accounted for any additional income generated in the 3 months of
summer. You should be aware that system expenses in the summer are also considerably
higher.
The budget amount divided by 12 divided by the number of users only tells me the average
amount I need per user to operate the system. While a new customer represents new income,
Pg 2

they also create additional costs, billing, administration, decreased pump life, decreased filter
sand life, increased utility and regulatory costs, increased labor costs. Adding new users does
not necessarily mean lower costs to existing users. In fact, and this is an important
point, please pay attention!
A water company costs are based on the cost of gallons pumped, treated, and delivered. The
result of which is that the "special users" drive the cost up for everyone! Of the three people I
am told composed the unsigned letter, at least one of you is a "very special user".
The question posed regarding progressive, as opposed to linear rates, asks if they are intended
to be punitive and force conservation. Absolutely! They are.
Almost every rate schedule I have seen from other private and community water companies are
progressive. The rate increases with volume of individual use. Please refer to those proposed
by NKW for our system as well as those for Gem Shores And Hayden Haven which 1 provided
with the package of information presented before the first of the year which, apparently was
also not read or again was beyond comprehension. Since you have chosen to make public the
meter reading sheet for August 2021, which I asked to be kept in confidence so as not to
embarrass people who were excessive users, 1 will use an example from those users to
illustrate why.
Buddy Ferrell used 120,330 gallons of water in Aug. of 2021. Anyone who has seen the
100,000 gallon storage tank across the freeway knows that it is huge. It is 16 feet tall. If one
took that tank and added three feet to it and filled it to the brim that would be 120,000
gallons. If all 78 users used as much water as Mr. Ferrell in the month of August, we would
need to pump and treat 9,385740 gallons in a month.The most we have pumped and treated
per month to date is about 5,400,000.
In fairness to Mr. Ferrell I checked his 2023 use for August it was 70,090 gallons. I have to
assume that is a testament to the effectiveness of progressive billing and rates that encourage
conservation. The Syringa Grove Gate however used 112,000 gallons last August. Looking at
I.P.U.C. regulations I could turn that off and lock it if that continues and I anticipate the
possibility of shortage. Mr. Krum used 123,600 gallons in May of last year, i think that was a
broken pipe in landscape system, however August use was 113,400 gallons. I am confident that
will change in 2024.
Regarding the first two paragraphs of page two of the unsigned letter, I reviewed your
numbers and concur: I did make calculation errors when converting the rates to examples of
costs. Fortunately the bills are calculated by a computer using quick books, not me. I apologize
for any confusion that may have caused. I think I must have used another rate schedule when
doing the calculations, as I experimented with several to find one that worked. Good thing that
actual dollar amounts used to represent various scenarios of cost are all lower by your
calculations. Thus doing a better job of proving the point I was trying to make. That NKW rates
were two and sometimes three times the new rates for Syringa water. Thanks for that.
Pg 3

To be as clear as I can, the following are Syringa water rates:
1. Oto 20,000 gallons. — $60.00 plus $2.50 per thousand gallons used. A bill may be less
than $110.00 if fewer than 20,000 gallons are used; hence rendering ludicrous the idea
that$110.00 is some kind of base rate. At this level of use, Syringa's cost is 38%of
NKW. That is just over one third.
2. 20,000 to 40,000 gallons is billed at$4.00 per thousand over 20,000.
Our example based on 36,000 gallons is as follows: $60.00 plus 20 X$2.50 = $110.00
Plus 40 X$16.00= $64.00.
For a total of$174.00. NKW's charge for the same volume would be $520. Syringa's rate
again one third of NKW. Please let me know which bill you would prefer getting.
3. 40,000 to 80,000 gallons is billed at$6.00 per thousand for any use over 20,000.
4. 80,000 to 120,000 gallons is billed at$12.00 per thousand for any use over 20,000.
5. 120,000 and above is billed at$14.00 per thousand for any use over 20,000.
The following is how winter rates will be calculated. The last meter reading will occur on or
around the 15th of October. We will assume an average use of 20,000 per month per user. If
that ends up being high we will adjust downward in the following year in order to be close to
actual use. The first reading of the new year will be on or about the 15th of May. Your
assumption about adjustments is accurate. Any overage will be billed to the user and less use
will appear as a credit and be deducted from a future bill.
In conclusion I would like to point out that the budget 1 provided prior to the first of the year in
an attempt to be open honest and transparent, must have not been reviewed by the writers. It
included thousands of dollars per year that go into the water system by other companies
�. owned by the Hamilton Family. Wealthy person water welfare!
I will go over those items with the writers when we meet to review the unsigned letter and this
response. In addition it included reserves for repair and replacement of necessary
infrastructure, something not contemplated by Syringa water before. Emergency expenses in
past years have been subsidized by Syringa Properties or Sawmill Point development.
I was attempting to make this point:
There are three options.
1. Syringa water has rates that pay the company bills and holds reserve funds for system
improvement and repair, and we continue to provide abundant and safe water.
2. The system goes over to NKW and rates double and triple.
3. The system fails. I would like to point out that Kootenai #1 in Sunnyside has system failures
two or three times a year. The latest was last week when the main electrical at the lake pumps
exploded and caught fire, creating negative pressure and draining treated water back into the
lake. They had to import water from the city just to keep the filters from going dry and killing
the medium. Last summer they had 3 or 4 weeks where outside water use was prohibited
altogether Because intakes were not maintained and cleaned causing mud to flow into the
filters and shut off water production.
Pg4-

I could goon and on but the point is this: Failure to budget for reserve and replacement costs
you in problems. We could do the same and in a few years we would be just like them.
Post script. I will no longer communicate with the boards about the water system beyond
billing for community water use, gates and entry landscape. There will be no more reports at
HOA meetings. Once we are regulated I will provide in writing the minimum information
required by the I.P.U.0 to the individual users. 1 will no longer tolerate the abuse that seems to
come my way every time I provide more information than the bare minimum. I don't need the
pain associated with people I considered to be friends having secret meetings and sending
unsigned letters.
Bob Hamilton -= l
Pg 5

�C ��\ '11 Will L INII` � ' �'>>

3.3.4 TO RA-—GE
The future storage analysis was performed based on the same analysis criteria as
presented in Section 2 and will evaluate the same storage components as the current
storage analysis. Storage requirements for the system were evaluated based on the
projected number of EDUs and associated demands as presented in Section 3.2. Table
3-9 below summarizes the future storagerag se deficient.analysis for the existing 100,000-gallon
reservoir. As shown below(the current sto
As discussed previously in Section 3.2.1, once expanded beyond its current lots,
Syringa Heights must provide the current required fire flow. Considering the current fire
flow requirement (1,000 gpm for 2 hours), the fire flow requirement would stay the
same through Growth A-2. Bennett Bay will require an increased fire flow storage
amount (1,500 gpm for 2 hours or 180,000 gallons).
Table 3-9:Storage Capacity Analysis Based on Future Demand
f o • • • .;N-tal
Total
age rage
Storage Sto
• •• .•
• •. I
79 3,396 0 31,950 18,579 120,000 173,925 100,000 -73,925
108 3,396 0 53,865 25,399 120,000 202,660 100,000 -102,660
• Ate: 111 3,396 0 56,132 26,105 120,000 205,633 100,000 -105,633
121 3,396 0 63,689 28,456 180,000 275,542 100,000 �-l5,542
3.3.5 DISTRIBUTION SYSTEM
The modeling scenarios presented in Section 2.9.5 were evaluated with respect to the
future demands, Growth A and A-2. Growth B was modeled separately and will be
discussed in Section 4 as it requires improvements and a water main extension to
serve. A complete set of results can be found in Appendix F.
3.3.5.1 MODEL ANALYSIS BASED ON FUTURE DEMANDS
Scenario 1: (PHP, Maintain 40 psi Throughout the System)
The objective of this scenario is to maintain a minimum pressure of 40 psi during PHP
under the condition where all equalizing storage has been depleted and the source
(lake intake, Cliff House boosters, sand filtration, transfer pump)and boosters are
operating as normal. The following is a summary of the operating conditions modeled
in this scenario:
Wr=�C:H C:01\Al-R®� Page 35
I

ATT A CH 1AM �( : hl' il ' fi

Exhibit #6
Example of 2024 applied Rates & Calculation
based on Syringa Water Company stated methods
2/22/2024
The usage figures per user and number of users in each tier are reasonable assumptions based on limited
information obtained from Syringa Water
Syringa Water
2024 rates
per K gal
Exhibit#1
Standard Fee $60.00
1st tier 1-20,000 gal used $2.50
2nd tier 20,001-40,000 used $4.00 over 20k gal
3rd tier 40,001-80,000 used $6.00 over 20k gal
4th tier 80,001-120,000 used $12.00 over 20k gal
5th tier 120,001 +gal used $14.00 over 20k gal
Estimated
Number Monthly Rate Number Money Total Gal
of users Usage in K gal per K gal of Months Collected Used
Standard Fee 79 NA $60 12 $ 56,880 NA
winter months 79 6 $2.50 6 $ 7,110 2,844,000
HOA entries 4 30 20 $2.50 6 $ 1,200 480,000
summer only 10 $4.00 6 $ 960 240,000
summer months 25 10 $2.50 6 $ 3,750 1,600,000
summer months 25 25 20 $2.50 6 $ 7,500 3,000,000
5 $4.00 6 $ 3,000 750,000
summer months 20 50 20 $2.50 6 $ 6,000 2,400,000
30 $6.00 6 $ 21,600 3,600,000
summer months 9 85 20 $2.50 2 $ 900 360,000
65 $12.00 2 $ 14,040 1,170,000
summer months 9 100 20 $2.50 2 $ 900 360,000
80 $12.00 2 $ 17,280 1,440,000
summer months 9 125 20 $2.50 2 $ 900 360,000
106 $14.00 2 $ 26,460 1,890,000
As demostarted here, the method of applying the rates to the gallons used has always been incorrectly performed
by Syringa Water Company for upper tier users. The rate charged for the next tier up should begin with one gallon
above the previous tier and not revert back to the very beginning of usage or any other arbitrary number(20k gal),
as illustrated here. This method creates hidden profit.
Totals $ 142,020 20,394,000
Annual Budgeted Expense per Exhibit#4 $ 110,120
The Difference equal PROFIT $ 31,900
This equates to a PROFIT of 29%
"`This percentage of Profit would be over 2.1/2 times the amount Syringa Water proposes

ATTACHMENT

Exhibit #7
Example of 2024 applied Rates & Calculation
based on a proper method of calculation
2/22/2024
The usage figures per user and number of users in each tier are reasonable assumptions based on limited
information obtained from Syringa Water
Syringa Water
2024 rates
per K gal
Exhibit#1
Standard Fee $60.00
1st tier 1-20,000 gal used $2.50
2nd tier 20,00140,000 used $4.00 over 20k gal
3rd tier 40,001-80,000 used $6.00 over 40k gal
4th tier 80,001-120,000 used $12.00 over 80k gal
5th tier 120,001 +gal used $14.00 over 120k gal
Estimated
Number Monthly Rate Number Money Total Gal
of users Usage in K gal per K gal of Months Collected Used
Standard Fee 79 NA $60 12 $ 56,880 NA
winter months 79 6 $2,50 6 $ 7,110 2,844,000
HOA entries 4 30 20 $2.50 6 $ 1.200 480,000
summer only 10 $4.00 6 $ 960 240,000
summer months 25 10 $2.50 6 $ 3,750 1,500,000
summer months 25 25 20 $2.50 6 $ 7,500 3,000,000
5 $4.00 6 $ 3,000 750,000
summer months 20 50 20 $2.50 6 $ 6,000 2,400,000
20 $4.00 6 $ 9,600 2,400,000
10 $6.00 6 $ 7,200 1,200,000
summer months 9 85 20 $2.50 2 $ 900 360,000
20 $4.00 2 $ 1.440 360,000
40 $6.00 2 $ 4,320 720,000
5 $12.00 2 $ 1,080 90.000
summer months 9 100 20 $2.50 2 $ 900 360,000
20 $4.00 2 $ 1,440 360,000
40 $6.00 2 $ 4,320 720,000
20 $12.00 2 $ 4,320 360,000
summer months 9 125 20 $2.50 2 $ 900 360,000
20 $4.00 2 $ 1.440 360,000
40 $6.00 2 $ 4,320 720,000
40 $12.00 2 $ 8,640 720,000
5 $14.00 2 $ 1,260 90,000
Totals $ 122,820 20,394,000
As demostarted here,the method of applying the rates to the gallons used has been correctly performed for all
tier users.The rate charged for the next tier up begins with one gallon above the previous tier and not revert back
to the very beginning of usage or any other arbitrary number, such as 20k gal.This method creates a reasonable
profit and corresponds to the%that Syringa Water Company desired.

Annual Budgeted Expense per" $ 110,120
The Difference equal PROFIT $ 12,700
This equates to a PROFIT of 12%

ATTACHMENT 8

VNGVNrVAS 1 9URVrVOR5
Kootenai r
County Fire & Rescue
,.:
Fire Marshal's Office -
1590 F.Seltice Way
Post Falls,Ill 83854
Tel: 208-7'77-8500 --•
Fax: [phone] J
www.kootenaiftrc.com
September 26, 2022
Steve Cordes
Principal Engineer
Welch Cramer
208.664.9382
- - suer cs�t+welcltctotnc:r.com
RE: Syringa Heights'Water System
To Whom it May Concern.
I have been asked to evaluate the current water system and provide guidance for future development. All
---- current residential lots will fall under the cede in place at the time of original subdivision. I have reviewed
the provided infortnation and tbund the current status of the Syringa Heights is as listed below.This
b T follows the original approval of the subdivision. Any new residential lots will fall under the most current
adopted code at time of lot creation, This will also apply for any commercial construction projects. The
- current 2018 IPC requirements are listed for reference.
Current System:
/alu lI A
Current storage capacity: .100,000 Gallons
' Current available fire flow: UN{rug rsecent testing has leers'recorded.)
For residential development fire flow requirements should follow the IFC Table B 105.1 with a minimum
of the following:
Er�xn 2018 Fire Cade required storage capacity: 180,000 gallons
2018 Fire Code required fire flow: 1,500 gpm @ 201xri
AIIIIN a

ATTACHMENT

I
Source i
•wth� . Available7
sCapacity
Source
Gr Capacity with
•. •
Phase Largest Source
•• • •
•
Current 79 135 225 90
Filter Bays Growth A 108 184 225 41
Growth A-2 111 189 225 36
Growth B 121 206 225 19
r
Table 3-6:Transfer Pump Capacity Analysis-MDP with largest Source Cffline Based on Fut e
Demand
R
Current 79 135 0 -135
Growth A 108 184 0 -184
Growth A-2 111 189 0 -189
Growth B 121 206 0 -206
The sand filtration system has a capacity of 225 gpm and will be sufficient for all
growth projections. As shown in the tables above: the lake intake pumps will be
deficient at Growth B,the Cliff House Booster is projected to be deficient at Growth A,
and the transfer um is current y e icienMe
to its l
ackm�itiga�te ,
ules. The addition of a recon ary pump ran
current and future deficiencies.
In addition, the source capacity was analyzed based on simultaneously providing the
MDP and fire flow to the entire system. Since the transfer pump capacity is the limiting
capacity, it was analyzed for the growth scenarios in Table 3-7 (rather than showing all
four sources).
VVEL.0-+ CMAER�®r. Page 33
I

ATTACHMENT 10

JENNIFER LOCKE 22 P 2950141000
KOOTENAI COUNTY RECORDER
KKR Date 1 0/04/2023 1 0:09AM
REC]OF WELCH COMER AND ASSOCIATES
RECORDING FEE: $73.00 AG
,,Recopdat the request of
4 Aud'i!r Recording Return to:
f s,P.S.
\,66ViV-fl, t Ave., Suite 303
qO
oeu�}'�cl, ne, 0 83814
A tfi:?Xz"P terson
CONNECTION AND SERVICE AGREEMENT
Th ' R OI C ION AND SERVICE AGREEMENT ("Aacement"), is entered into
effective as of he, d of ,2023(the"Effective Date")between SYRINGA WATER
COMPANY, dales co oration("Company"), SAWMILL POINT DEVELOPMENT, INC., an
Idaho corporationaw BENNETT BAY APARTMENTS, LLC, an Idaho limited liability
company ("W(7) and IS HOSE, LLC, an Idaho limited liability company ("House", and
together with WG,"Cu to e "). �yawmill,and Customer are sometimes individually referred to
herein as a"Party"and bqEectlyergs tl�e Parties."
WG owns certain rcqlX nally located at 6889 E. Coeur d'Alene Lake Drive, Coeur
d'Alene, Idaho 83814 with a pfrcel 'denXic tion member of 50NO3W-29-7250, which real property is
legally described on Exhibit A(t e r Pr e %.Ubuse owns certain real property adjacent to the WG
Property and generally located at 613_L ---sr{d'Alene Lake Drive,Coeur d'Alene,Idaho 83814 with
a parcel identification number of 50140 -29 00,whichjrpal property is legally described as on Exhibit
A (the "House Property"). The WG e y and the,,Ho i Property, together with any adjacent real
property designated by Customer in accordance wi Sec " n .6 below, may be collectively referred to
herein as the"Customer Properties �.-
� �r
Company owns and operates a water system ("W-ate`r System") that provides domestic and fire
suppression water service to certain properties w adjace to the Syringa Heights subdivision in
Coeur d'Alene,Idaho that are located near the CustoPr
m
Sawmill owns certain real property located ihin,tli - ri Heights subdivision in Coeur
d'Alene,Idaho with parcel identification numbers of 0-K297J- hi
2- 1 ,9-K297-002-010-B,and 0-L522-
000-UTL-0, which real property is legally described on it B t "Sawmill Property'). Certain
portions of the Water System, including the Company's ting }water ge tank is located on the
Sawmill Property.
f.f'
Customer desires to obtain domestic water service fromnpanyAh,;tkovides for ten (10)
equivalent dwelling units("EDU")(the"Required Water Service")for fts C�oan uses.Company
desires to permit Customer to make certain improvements to the Water 5stem-• n ure in order for
Company to provide the Customer Properties with the Required Water Servile Saw i deb} es to provide
Customer with the right and license to access the Sawmill Property for pu s ?f pdin ting upgrades
and improvements to portions of the Water System located on the Sawmill Prope _-
The Parties desire to enter into this Agreement in order to memorialize trine�nts with
respect to the foregoing matters.
i
In consideration of the mutual covenants and agreements set forth in this Agreemen a`rid a.goo
and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,..,d d xiten
to be legally bound hereby,the Parties hereby covenant and agree as follows: �' r
I
1 ti�1

,.-IN
Service Covenant. Company covenants and agrees that it will furnish the Required Water
S iceda.,the Customer Properties upon the terms, conditions, and covenants set forth herein. Company
N%sh4ll- i�t be}obligated to provide the Required Water Service in the event Customer fails to perform any of
S,ob'I'fga ' ns set forth herein,or any other condition to Company's performance hereunder is not satisfied.
2 ater Rights. Company represents and warrants to Customer that (i) Company has
sufficierw tr t �erate the Water System and to provide the Required Water Service,and(ii)all
of th Compfaci4u with respect to the Water System are located within(a)real property owned by
the Compan;V�Wit")WiIN19L
iNted easements across real property not owned by Company, including the
Sawmill open,or_ �croachments permitted by state or local jurisdictions.
3. Wat r SS tem Sfudy.and Scope of Improvements.
3. f relimin Engineering Report. Prior to the Effective Date, Company
caused a preliminary gi rm r ort e "Company PER")to be prepared for the scope and level of
improvements require Z17Me e�isti ;deficiencies in the Water System, which improvements are
described on Exhibit C( mvanv�ystem Improvements"),and the Company PER has been approved
by the Idaho Department of E�uo�fle l Quality CME-T).
3.2 Faciliit 4'la Castbm r Preliminary Engineering R ort. Prior to the Effective
Date, Customer has caused (i) a a ' 'ty pl to�Yie p ared, and approved by IDEQ on August 3, 2023,
that,among other things,demonstrates mp"S s existing Water System(subject to the completion of
the Company System Improvements' ustother System Improvements(as defined below))has adequate
capacity to provide the Required Wate ,vice to theeQu'stor%er Properties(the"Facility Plan"),and(ii)a
preliminary engineering report(the"Customer PEl 'and et r with the Company PER,the"PERs")to
be prepared for the scope and level of improvement�.regnu- ed Jo update the existing Water System such
that Company will be able to provide the Requ�ed Vate,r.Shrvi to the Customer Properties(the"Customer
System Improvements"). As of the Effectiv6,Date, the,41arties anticipate that the Customer System
Improvements will consist of those items generallr' d rp' fd- nb 'bit D,but the final scope and level of
the Customer System Improvements shall be determined base-ZT;on�he Customer PER that is approved by
the IDEQ and any other required federal, state, count} city_et`'lo 1 governmental or quasi-governmental
authority,entity or body(or any department or agency th eo unsd'etion over the Company or Water
System (collectively, "Governmental Authorities") in acco anpe-wi th'j all applicable laws and other
regulatory requirements. Customer shall cause the Customer PE to lkr#vwed and approved by IDEQ
and any other Governmental Authorities in accordance wi a 1 pljpa 1e;Jaws and other regulatory
requirements.Company shall reasonably cooperate with Customff-lx l'e p essing and submission of the
Customer PER to IDEQ and any other Governmental Authorities,a d tI e l'actons reasonably necessary
to assist Customer in Customer's efforts to obtain final approval of lu%,Grustgnf6pn-t, including,without
limitation, attending meetings with IDEQ and Governmental Author'iti quest by Customer and
executing such applications and any other documents necessary or cone nt3'' sp t to the Customer
PER that are required to be executed by the Company. Customer shall Ifrdvi Co fan with courtesy
copies of the Customer PER, any preliminary or initial drafts thereof, a 5u p moKing, ocumentation
relating thereto during the period in which the Customer PER are being complet df�Company
reasonably apprised and provide informal status reports to Company regardin d ome ' r�gress in
completion of the Customer PER and the approval thereof by applicable Governm it rif es. The
submission,processing and approval of the Customer PER shall be conducted at Cusco so^^nand
expense. For avoidance of doubt, the Customer System Improvements shall not inc t 'Corryftagy
System Improvements or any other improvements to the existing Water System than ertad t-b the
Company's existing service area, all of which shall be made by the Company at the Computy'A.465le
and expense in accordance with the requirements of the Company PER and Governmental A .or*6s.,,
I
2 \ ,

r +
4. Required Land Dedications and Easements.As soon as practicable following the Effective
G ►pany, Sawmill, and Customer shall make commercially reasonable, good faith efforts to
ti,-'ne i e d enter into certain licenses, easements, or other acceptable land dedications to: (i)permit the
\ oPtructi n and placement of the Company System Improvements on the Sawmill Property;(ii)permit the
tSt9&rPr0TJpe !,,es;
n� lacement of the Customer System Improvements on the Sawmill Property and the
(iii) provide Company with perpetual non-exclusive easements for access over the
Sawrnil Pr d-tl`ieCustomer Properties such that Company may install,repair,maintain,construct
and r lace ^porq of the Water System located thereon, including any Customer System
Improvem , an4 ,i ,pr6vW a non-exclusive easement to Company for a new raw waterline over the
Customer ropefrties.�'Ifor tkie Ampany to be able to deliver additional water to its slow sand filter
(collectivel' theA e ` nts").
5 )ffo etiodaL-CMpany System Improvements. As soon as practicable following the
Effective Date, rqP4 shall 69mmence construction of the Company System Improvements and
thereafter cause the s e completed not later than May 31, 2024 (the "Company Improvements
Completion Date"). o y� v s nd agrees that it shall complete the Company System
Improvements in a goo2b amid orkmian manner, lien free, and in compliance with all applicable laws,
codes, and regulations, and,-other- moments of any applicable Governmental Authorities at the
Company's sole cost and ex}' , oT` Any hall provide Customer with courtesy copies of any plans or
specifications for the Company 0stemxmprvern , and shall keep Customer reasonably apprised and
provide informal status reports astoy��.g�d Company's progress in completing the Company
System Improvements. ,
6. Customer Takeover ) smht If the ofnpam fails to complete the Company System
Improvements on or prior to the Company Improv ►entsr�Qonip1�letion Date,Customer will have the right,
but not the obligation, to assume control 0�- �1 oyany)desi�gnated portion of the Company System
Improvements("Take-Over Right")using, afl' ust mere' ''soleoption, either Company's contractor that is
completing the Company System Improvement',or a generat'contractor selected by Customer.In the event
that Customer exercises its Take-Over Right,Saws W kYgrant%Customer,and Customer's contractors,
agents, and employees, a temporary license to enter upon Ikreew ill Property and any adjacent property
owned by Sawmill and water utility easements for the lurpaswof rforming all or any part of the Company
System Improvements consistent with Section 4. Notwitbst nd#n us er's exercise of the Take-Over
Right, Company will remain liable for any and all costs wit res Ito he completion of the Company
System Improvements.Should Customer exercise the Take-C ver(ki hf;.,C,ast mer may periodically submit
invoices for the amount of any costs of completion of the Cmpannly Sy, ein yprovements incurred, and
Company shall pay to Customer the amount of each invoice received'wi*fi tw�nty (20) days following
receipt thereof. Customer's utilization of the Take-Over Right or aO gtfisr,- ight_.Provided herein will not
in any way limit any other claim Customer may have under this Agi�ent. ,/'"��
7. Improvement Notice; Election to Proceed. Upon (i) Cusomexls' ei of final approval
of the Facility Plan and Customer PER from IDEQ and other applicable%-6x rnii �al uthorities, (ii)
Customer's determination of the scope and cost of the Customer System rgv�medts, ii) Customer's
will be roI vai ' ' ustomer's
determination that all Required Easements have been or p ax�}rd {�
determination that the Company has or will have completed the Company System�r em, o or prior
to the Company Improvements Completion Date, Customer may provide writtern Company
whether it will agree to perform the Customer System Improvements at its sole cyst+ ce (the
"Improvement Notice"). In the event that Customer provides the Improvement N66a aryd'ther er
completes the Customer System Improvements upon the remaining terms and conditions oftv`
' gfedinZ,�—,
Company shall be irrevocably bound to serve and provide the Required Water Service tt,�
Properties.If Customer elects to terminate this Agreement by written notice to Company pri to, i y �'
3 ��

r
th rovement Notice, this Agreement shall terminate and neither party shall have any further
obligatittn to the other hereunder.
8. Plans and Specifications for Customer System Improvements. As soon as practicable
\.],] 1n3 ustomer's delivery of the Improvement Notice, Customer shall cause plans and specifications
r th om System Improvements (the"Plans and Specifications")to be prepared and approved by
allh ap is Go ernmental Authorities. Company shall reasonably cooperate with Customer in the
procossii� s�t of the Plans and Specifications, and take all actions reasonably necessary to
assist' ustom tt Cush s efforts to obtain approval of the Plans and Specifications and authorizations
necessary, o bnst Abe-C%torner System Improvements, including, without limitation, attending
meetings th 9oiier*ient orities if requested by Customer and executing such applications and any
other doe nts,races of co,uvenient with respect to the development of the Customer System
Improvements iat,a3 e r ire �fo be executed by the Company. Customer shall provide Company with
courtesy copies bf te'Pl Specifications, any preliminary or initial drafts thereof, and supporting
documentation re]Ao rdto dulih the period in which the Plans and Specifications are being completed.
Customer shall keep 6m 2hyrea onab apprised and provide informal status reports to Company
regarding Customer's 4og o taiga*final approval of the Plans and Specifications from applicable
Governmental Authoriti Th6surfiissxon, processing and approval of the Plans and Specifications shall
be conducted at Customer's sgle co nA-exq�ense.
S y
9. Construction of fgustoir vsiem Inwrovements.
9.1 Temporary CgFdtrudtion icense. Company and Sawmill hereby grant to
-X
Customer(and its employees,contract'o�a;cou fftants,and agents)a non-exclusive license to:(i)enter upon
any real property owned,leased,or to whWthe Compa yo 8xwmili otherwise have rights for the purpose
of constructing and completing the Customer Syste . ve nts, and(ii)modify, adjust, and alter the
Water System, as necessary, to construct an completeegustomer System Improvements, and to
integrate the same into the Water System. `
\
9.2 Customer System Im rove onstru ion. As soon as practicable following
receipt of final approval of the Plans and Specifications roT-9- pgic le Governmental Authorities and any
other required permits to construct the Customer yst fm ovements (collectively, the "S^ystem
Construction Documents"), Customer shall commence haAA -er__U- its best efforts to construct and
cause the Customer System Improvements to be completed tfbs ly'Pn accordance with the System
Construction Documents.Customer shall cause the Customer Sy em I v ments to be constructed and
completed in a lien-free manner, substantially in complia ce w th alk a' licable laws, codes, and
regulations, and the requirements of any applicable Governmema1utenti Customer shall cause
Company to be named as an additional insured on any policies ogms�a o Odned or maintained by
Customer or its contractors that relate to the completion of the Cdgto er S)wie ' provements for the
duration of the construction period.Customer shall obtain lien waivers ofn con tors that construct
the Customer System Improvements, and shall provide copies of the � any upon final
completion of the Customer System Improvements.
9.3 Final Conveyance.Upon final completion of the Custo�ys�eZw
ements,
Customer shall dedicate, convey, and deliver the Customer System Improve �trecjf
'drranties
relating thereto to the Company for no separate consideration, other than the right to e`�lfe Iitequired
Water Service in accordance with Section 10 below. y`' �}
10. Company Water Service. F�
i
4 ��,

10.1 Right to Water Service. From and after the date that Customer conveys the
CtoSystem Improvements to Company (the "Conveyance Date"), Company shall provide the
C,uto Properties with the Required Water Service subject only to the Company's right to
�Z-reitn-b-Urse nt for its regular and customary service charges as provided herein. Notwithstanding the
\,foregomf;f this Agreement does not constitute a vested property right or convey any interest in any
�judk'at wa rights of the Company or the Water System.
J i -Regular Service Charizes.In consideration of receipt of the Required Water Service
from' omp ust:OT venants and agrees to pay for all regular and customary service charges for
such service t arp., igscrd i�common and proportionate with all other users of the Water System,as the
same ma)e, epYMifl�d by�gi�pany from time to time in accordance with the Company's governing
agreements, or r appli;� l<la,ys or regulations.
J k
'RHO). `J a e stem Capital Costs. In consideration of Customer's completion of the
Customer System"n 6}rr yel ien s` d conveyance to the Company, Customer shall not be subjected to or
frequired to pay Comp a�yoo)m tion,)� ok-up,set-up,or similar type of charge for the Required Water
Service.In addition,n th e�sbkoy future owner of all or any portion of the Customer Property
shall be required top �usl
piny_for any capital facilities charges, costs, assessments, or similar
reimbursements for a period q mmptit}Mthe Conveyance Date and continuing until the date that is fifty
(50) years thereafter (the 'to o�mencement Date"). Company and any existing customers
thereof shall complete and be o igM
�4a for art and all capital costs or improvements to the Water
System (as it exists on the Effe 'vte)-tkfaS rxfay required or identified by the Facility Plan and the
Company PER, and Company co egar s .afid agrees that it shall make all of such improvements in
accordance with requirements proms atedy IDEQ o ,other applicable Governmental Authorities.
Following the earlier of(i)the Contrib '• Commenc ent'Rate, or(ii)the date on which the Company
assigns or transfers the Water System to a Qualified ccesg r as� escribed in Section 12.2 below,Customer
and any future owner of all or any portion of e C.4stom�r Pr perty shall be liable for capital facilities
charges,costs,assessments and similar reimb senv4 is jhdt ar posed in common and proportionate with
all other users of the Water System. �•. -
_
10.4 Interru tions or Delays in Trv. ., ai y shall exercise reasonable diligence in
providing an uninterrupted supply of water to Custo �Lwzs nding the foregoing,Company reserves
the right the temporarily interrupt or reduce the delive of un this Agreement when Company
determines that such interruption or reduction is necessary in ase stun emergencies, for inspections,
perform maintenance or repair work. Except in cases of em rgen o�mpany shall give Customer
reasonable notice of any planned interruption or reduction in ater s rvi . ,
10.5 Binding_Effect. All rights conferred by s e nr benefit the Customer
Properties and shall run with the land. It is understood that a copy o�s A w' will be recorded with
the Kootenai County Recorders Office.Any subsequent buyer,lessee,�n e,or Tde
of the Customer
j Properties shall contact Company to ascertain the status of any outstare 'ng I rs from Customer
hereunder. ti
10.6 Service Transfer.Company acknowledges and agrees 1ZietemcFhall have
the right to assign or transfer all or any portion of the EDU's provided to Custom'�,rJa��part e*equired
Water Service to other real property that may be adjacent to the Customer Propertief, o,"y 9ther real
property that is directly adjacent to other real property within the Company's service at6 er s
sole discretion. Notwithstanding the foregoing, any such transfer or assignment shat,ab{ligat ,e
Company to provide additional EDU's in excess of those provided as part of the Required ater e ce
i
5 .

r 10.6 Company Operations and Reserves. Company covenants and agrees that at all
y� t fe ng the pendency of this Agreement that it shall: (i)maintain and keep the Water System in good
f oar a repair; (ii) maintain adequate liability, casualty, and other insurance with respect to the Water
ti.,-'JS ste an (iii) maintain adequate cash reserves for maintenance and capital repairs or replacements of
', ate ystem.
ilure to Complete Customer System Improvements. If Customer fails to complete the
Custom t v ents after delivering the Improvement Notice to Company, Company's sole
and ekrlusiveA edy+W&r shall be to obtain an assignment by Customer of all take assignment(to the
extent ass� ile •Qf' ustomer's entitlements and approvals related to the Customer System
Improvem nts, nd ill re ate i;studies, documents and engineering work for the Customer System
Irnproveme s clegKe .f k Product"), and to obtain copies of all such Work Product from
Customer. Wb k .Erod sl�al not include: (i) materials proprietary to Customer, (ii) confidential
information, (ii"1' 'on subject to a legal privilege (including, without limitation, legal
memoranda), or tl t d faith ' believed to be subject to such privilege, or(iv) that is the subject of
any agreement or ap ic4b e � w4 pro 'biting disclosure, reproduction or dissemination. Company
understands and ackn wl es tla�atY ) to assignment of the Work Product will be subject to the
proprietary rights of any�i error of er consultant preparing the same and any disclaimers or limitations
on reliance or use imposed byr them aid-sQy third party consent, and (b) Customer will have made no
warranties or representations,pf":�wfA4, 'express or implied, as to the right to rely thereon or the
completeness,adequacy,truth o ac cy-bf#W Product.
r
12. General Provisions ,
12.1 Notices.All nor otheriften'tmmunications required or permitted under
this Agreement must be in writing and will be deemed tp, av been properly given (i) upon delivery, if
delivered in person or by facsimile trans .ssio 4vith�eip of electronic confirmation thereof,(ii)upon
email transmission if such notice is given on Bus4riess-7ay nor to 6:00 p.m. Pacific time(and if not it
will be deemed given on the next Business boy) and pr.6visled a copy of any notice given by email
transmission is also subsequently delivered to the part '' another method of delivery permitted
by this Section,(iii)one Business Day after having bee de sit fr overnight delivery with any reputable
overnight courier service,or(iv)three Business Days a}e -halm een deposited in any post office or mail
depository regularly maintained by the U.S.Postal ServirQa �pn y r istered or certified mail,postage
prepaid,return receipt requested,addressed as follows:
If to Company: Syringa Water Com y,I '
P.O.Box 1902
Coeur d'Alene, Idaho 838Y6 �
Attn: Bob Hamilton
Email: allstarbob@hotmail.c�p
If to Sawmill: Sawmill Point Development,Inc,%-
P.O.Box 1902
Coeur d'Alene,Idaho 83816
Attn:Bob Hamilton
Email: [e-mail] {
If to Customer: WG Bennett Bay Apartments,LLC .
Jeanette s House,LLC
717 W. Sprague Avenue, Ste 802
Spokane,WA 99201fJ ffff tl f J

' Attn:Alvin J.Wolff,Jr.
f� Email: [e-mail]
With Copy to: Lukins&Annis,P.S.
717 W. Sprague Avenue,Ste 1600
Spokane,Washington 99201
Attn.Brady M.Peterson
Email: [e-mail]
Notices rf—orn�efr si4y&e7fogal counsel for any Party or an agent of such Party with apparent authority
shall be ec ia11 fecfive act j]p� e from such Party itself.
x L
.11
1 .,2-"' Afsi ent and Transfer.Except as otherwise provided in this Section,Company
may not assign br t sfe tlii reement or any of its rights or obligations hereunder, or engage in any
other transfer of the Co y or Ater System without the prior written consent of Customer,which may
be withheld in Custo er',s sip scr(T! The foregoing prohibition on transfer includes, without
limitation,any asset sal b t" pat Company's sale,transfer,or dedication of the Water System
to any other party,or tr` ter r p3'e ofshares or other equity interests in Company.Notwithstanding the
foregoing,Customer's consers"hal].x gbe-required in connection with any transfer of the Company or the
Water System to the North Kko .� aYs Sewer District or other qualified and experienced public or
private non-profit water system 9�e r �ialif�Successor")so long as all of Company's covenants,
obligations and agreements heeu�t are,epfess assumed by and binding upon such Qualified
Successor,such that Customer willeceiv'e~ e R fired Water Service from the Qualified Successor upon
compliance with the terms and conch s ofs Agreet. Any assignment or transfer made by the
Company in violation of this Section sh4ll••Ke void.
12.3 Right of First Refusal. o`mpAy h Feb grants to Customer a right of fast refusal
to purchase the Company or Water System(t ;` ht First efusal")if Company receives a Bona Fide
Offer.A"Bona Fide Offer"means a written offer to p4chgs6 or transfer all or any portion of the Company
or Water System(including, but not limited to, an` sse of-iNe Water System, or the transfer or sale
of shares or other equity interests in the Company)on t7rm,% Tie otppany desires and is prepared to accept
from a person or a private for-profit entity who has thel rdsent appArent ability to perform. Company shall
provide written notice and a copy of the Bona Fide Of r off.os ier p mptly following receipt thereof.
Within thirty(30)days following Customer's receipt of the n ice Company,Customer may elect to
purchase the portion of the Water System or Company as de ig ated *(c-on.tthe terms stated in the Bona
Fide Offer by delivering written notice to Company. In sue even , C�nipat# and Customer shall use
commercially reasonable efforts to negotiate and agree upon the-f`er;Ks opep ase agreement that are
consistent with those found in the Bona Fide Offer. Should Custom, r dq iue''to gAercise or elect to waive
its Right of First Refusal, Customer shall provide written notice to pan n i rcafter execute such
documentation as may be reasonably required to evidence the same. o sha ereafter be free to
enter into an agreement with the private for-profit purchaser under the.�fe s o�the ona Fide Offer.
However, if a waiver of the Right of First Refusal occurs pursuant to the fd idgpey!p
s, d the terms of
the Bona Fide Offer as it was presented to Buyer are thereafter modified to l�ma s favorable to
the Company prior to the close of escrow, then Customer's Right of First Re EF
tated and
the parties shall comply with the terms of this Section 12.3 with respect to the Bo nff�s odified.
Customer may assign the Right of First Refusal to any parent, subsidiary or afuWmVr at any
time without the Company's consent. y Xl./Z�
12.4 Relationship of Parties. Nothing contained in this Agreement sh "fie dcc d
construed,either by the Parties hereto or by any third party,to create the relationship of pribipai a
or to create any partnership,joint venture or other association between the Parties. l; J
7 �4,

12.5 Captions, Construction. The captions of paragraphs within this Agreement �e
iepr convenience only and shall have no effect on its interpretation. Words of any gender used in
�-this.--Abree ent will be construed to include any other gender, and words in the singular number will be
%\.,cF'psCrue�d o include the plural,unless the context requires otherwise.
r 1�.6 Authorization: Binding Effect. Each Party represents to the other Parties hereto
that its X dtiopJ p t nTAgreement has been authorized by all necessary corporate action and that the
indiv' ual w 86ute�-It ' Agreement on behalf of such Party is authorized to do so.This Agreement is
binding upon- ndigp ft benefit of Company and Customer, and subject to Section 12.2, their
respectivesucq`sorsand pied assigns.
<12,.7-'f .�ol ,t to Modification.This Agreement and any provision,covenant, or license
contained hereirl'me e. zed`modified,or amended only with the written and recorded consent of the
Parties.
12.8 ( G rn n w!-� sent to Jurisdiction.This Agreement and its interpretation and
enforcement are govern b eanws the state of Idaho. Each party agrees that venue for any dispute
arising out of or in connection with�hls element will be in Kootenai County,Idaho and each party waives
any objections it may now A*A€ .,*e garding such venue.
12.9 Attorne syee !Ifa pary4s in default under this Agreement,each other party will
have the right, at the expense of the faultifig party, to.Xetain an attorney to make demand, enforce
remedies,or otherwise protect or enfor�lfe rights of tl}e-'non'oefaulting party.A party in default shall pay
all attorneys' fees and costs so incurred.
12.10 Entire Agreement. 4is 4gre,,oentl ets forth the entire understanding of the
Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and
understandings between the parties regarding the`3�* aster of his Agreement.All exhibits referenced
in,and attached to,this Agreement are incorporated in ,and c4nst tute a part of,this Agreement.
12.11 Severability.If for any reason r do o—Nbis Agreement is determined by a
tribunal of competent jurisdiction to be legally invalid or un oWm le,`Ithe validity of the remainder of
the Agreement will not be affected and such provision will e eemmooiified to the minimum extent
necessary to make such provision consistent with applicable w ai ,t in,*m�d ed form,such provision
will then be enforceable and enforced. —"i`� }
I xr/
12.12 Counterpart Execution.This Agreement ma+1�signeal'i>.,Afral counterparts,and
each such counterpart shall be deemed an original, and all such counftprpdgv§hall dzmstitute one and the
same instrument.
12.13 Disclaimer- Preparation of Agreement.This Agre ne:afl ee negotiated by
the Parties.The Parties agree that no presumption shall apply in favor or again§`t iSrP ect of the
interpretation or enforcement of this Agreement. Each Party is advised to haves`tmy- � jree t eviewed
by independent legal and tax counsel prior to its execution. By executing this A re e eich Party
represents that: (i)it has read and understands this Agreement; (ii)it has had the alp t® tain
independent legal and tax advice regarding this Agreement; and (iii)it has obtained h'"'--i �ep t
advice or has freely elected not to do so. ' r^'
I Ff
8 ��

�J44 1
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SIGNATURE PAGE
TO
WATER CONNECTION AND SERVICES AGREEMENT
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
�"f
SYRI_,,GA WA R CW" ANY,INC.,
an Idaho coreitata�,
By:
Name: Robfal
'
Its:
B
Name: George Hamilton Z
Its:
SAWMILL:
SAWMILL POINT DEVELOPMENT rL`
an Idaho corporation .-' `
Name: 09,jX4
Its: 40-0
l }
y
F J

1 '
i ------ �13E�ETT BAY APARTMENTS,LLC,
"-" annldft li ited Iiability company
Name:
Its: 'k., an rr
JEANETTIM H 7 SE,
an Idaho limit liabi">it m y
By:
Name:, tz H. olff r
Its: anager �,f •
[N "tarru,qc'knbwl d s on following pages]
i
i F�

AT OF IDAHO )
,�,"Cour f ootenai )
1t �Un this �' day of .�, 2023,before me,the undersigned, a Notary Public in and for
said to of�d o, pe _al_ly appeared ROBERT HAMILTON, known or identified to me to be the
o SY��nRINGA WATER COMPANY, INC., an Idaho corporation, and acknowledged
the sa.1 t to it 4h 'tee and voluntary act of said corporation, for the uses and purposes therein
mentioned,aid qr�o Mated kat they were authorized to execute the said instrument on behalf of said
corporatio
GIVEI �TA'��I '1P�AND AND OFFICIAL SEAL the day and year in this certificate first above
written. %x, —
LINDSAY SPEN E /�
Notary Public- state �►t Idah -' Notary Public in and for the state of Idaho,
Commission Number 202269 1 r residing at
My Commission Expires 01.04. 029 �����N
(Print Name)
'1"mmission expires:
i (Seal or Stamp)
STATE OF IDAHO ) f
ss. {
i County of Kootenai
On this 3 day of Aj-b�&K, 2023, be a me,t der igned, a Notary Public to and for
said State of Idaho, personally appeared GEORGE H -'oN,_ o or identified to me to be the
[ ,taKA&- of SYRINGA WATER COMPANY, IN ., I o orporation, and acknowledged
the said instrument to be the free and voluntary act of said c rptyon,`f� uses and purposes therein
mentioned, and on oath stated that they were authorized to ex ute t irfstrument on behalf of said
corporation,
GNF,N UNDER MY HAND AND OFFICIAL SEAL the day nd ear 'lhhis,�ertificate first above
written. `
rr
LINDSAY S�PEZCER Pkcvy Pu lic' an1d for the si -e f'fda
Notary Public-State of Idaho residing at 1 �l J
Commission Number20226051 ,
My Commission Expires 01.04.2029
(�Pr e '
My commission expires:}-
(Seal or Stamp)
I��y

i
(.,S14AT216 IDAIO )
�` ✓ �'' ` ) ss.
i ,-'town of kootenai )
n�Lll1, of 2023 1?Ffore the,undersigned,a Notary Public in and for said State
of Idahq pe on ly appeared ��l ' ` "[ q, known or identified to me to be the
t�f- SAWMILL POINT DEVELOPMENT, INC., an Idaho corporation, and
ackno tk saidiWiument to be the free and voluntary act of said corporation, for the uses and
purposes tl}ereinan oath stated that they were authorized to execute the said instrument on
behalf of s e$rp Zon. yeti�on
.
GIVEI �F Rfvl iAND AND OFFICIAL SEAL the day and year in this certificate first above
written. ,r ,.---�..�
LINDSAY$PEN R Notary ublic in and for the state of Idaho,
Not Public-State of a `' r residing at P10Sr"�
Commission Number2022rs 6t ---
vl !11
My Commission Expires 01-04•24 9,� ,, � (Print Name)
a ,,
f �1Glypo ission expires: �1 U�l 2 28
(Seal or Stamp)
Id,
f FI-,'
if+
5�'

A F )
� Cptfiity\r,�►pKss
ekime )
145n is day of 2023,before me,the undersigned, a Notary Public in and for
s i to a ington, personally appeared FRITZ H. WOLFF, known or identified to me to be the
Manage> 0 TT' BAY APARTMENTS, LLC and JEANETTE'S HOUSE, LLC, and
ackn ledge said ent to be the free and voluntary act of said limited liability companies, for
the uses any,p `rposs� e�rt`vnentioned, and on oath stated that he was authorized to execute the said
instrumen on h iehi f Of saic� nA{ d liability companies.
GIVET<IUN- Y AND OFFICIAL SEAL the day and year in this certificate first above
written.
LINDSAY Sp NC" Notary Public in and for the state of D,
Notary Public-Stsi` f
` �' ,.�' residing at
Commisslon Number2022 gt
My Commisslon Exp}res Ot- �'
dsaT
'�.r (Print Name)
'. My c�nmission expires: p 1�Uhl_�g
(Seal or Stamp)
4
w' ''
f r
,. s

✓' EXHIBIT A
TO
WATER CONNECTION AND SERVICES AGREEMENT
LEGAL DESCRIPTION OF CUSTOMER PROPERTIES
u Pr
Parck l:
A portion Of go<6rndient I ft, ,Section 29,Township 50 North,Range 3 West,Boise Meridian,Kootenai
County,Ida**',roofep§4ipdla4y described as follows:
COMMENCING"'a�.�oQfeet West and 800 feet South of the Northeast corner of Lot 4, Section 29,
Township 50 NorCa;West` Boise Meridian,Kootenai County, Idaho; thence
South a distance of 304 fe l he �f^t`
Southeast a distance of approxfih t�el'y�5-feet to the North boundary of the present U.S.No. 10 Highway;
thence
Northeasterly and along the No Q.d y1 fr aid k.S. No. 10 Highway, a distance of Approximately
350 feet to a rocky point; thence "
4
Northwesterly in a direct line to the Pb OF BEG
EXCEPTING THEREFROM a portion of Go rnm,pnCL� 4,5 ection 29, Township 50 North, Range 3
West,Boise Meridian,Kootenai County,Idaho de cried as flows:
I
COMMENCING at a point on the North line of satment ,of 4,being the Northwest corner of Tax
Number 1578 from which the East Quarter corner of s d$K lli a 2 bears South 87°31'28"East,550 feet;
thence
South 00°14'32"West, 800 feet along the West line of Tax 1 to the most Northerly corner of
Tax Number 2034 as described in Warranty Deed as Inst nt No. 146405,` , records of Kootenai County,
Idaho;thence ` }
I South 66023'33" East, 215.45 feet along the Northeasterly line of aid(Ta A34 to an iron rod, one-
half inch diameter; thence
Continuing along said Northeasterly line,South 66023'21"East,29.98 fee(l�o tbe'l�kh esterly line of that
Tract described in the relinquishment of easement, Instrument No. 28743�2;'r eo"rd of K tenai County,
Idaho,the POINT OF BEGINNING;thence �.•` ,
Continuing along the extended Northeasterly line of said Tax No.2034, South& 21"Fast, .52 feet
to the Northwesterly line of that Tract described in Quitclaim Deed, Instrument No/1 , rycords of
Kootenai County,Idaho;thence
+1 k
Continuing on said Northeasterly line extended South 66°23'21" East, 32.01 feet to .1 ppinf,on t
Southwesterly right of way boundary of original U.S.Highway No. 10,as it existed prior to le c tru ra '
t1r'J ,
EXHIBIT A I},y

i
Mis> 'ellaneous Project No. 761, according to the plans thereof on file in the office of the Idaho
T,perfspd ation Department;thence
.1-1'SoiAhste ly, 20.87 feet along the arc of a curve to the left, said curve having a radius of 648.00 feet, a
\xerl e of 01°50'42"and a chord that bears South 62'13'01"West,20.86;thence
ebfitil g aid Southeasterly line, South 58°39'03"West,67.94 feet;thence
LeavN said o heas�ine, North 33°48'00" West, 25.00 feet along the Southwesterly line of said
Tract descri in i 41O f Deed,Instrument No. 1357285 to the Northwesterly corner thereof;thence
North 490A 60",West,�. .Or� t a�ong the Southwesterly line of said Tract described in relinquishment of
easement,Instz�neat Q;,At4h to the most Westerly corner thereof;thence
North 40037'00"13 st S� al2l ng e Northwesterly line of said relinquishment of easement to the POINT
OF BEGINNING.
Parcel 2:
A portion of Government Lot 4, ectio> IFwns ' S0 North,Range 3 West,Boise Meridian,Kootenai
County,Idaho,described as foll s -y% /
COMMENCING at a point on the N me ol'said Govez ent Lot 4,being the Northwest corner of Tax
No. 1578 from which the East Quartei`,�az'ner of said S ctio�29 bears South 87131'28" East, 550 feet;
thence
South 00014'32"West, 800 feet along the W t lizi of�Tdx N . 1578 to the most Northerly corner of Tax
No. 2034 as described in Warranty Deed as Inkrument Nam'146405, records of Kootenai County, Idaho;
thence — '•
South 66123'33" East, 215.45 feet along the Northeas erl�o ,Lid Tax No. 2034 to an iron rod, one-
half inch diameter;thence �--
Continuing along said Northeasterly line,South 66023'21"E t, .98 feet'-Ito�e Northwesterly line of that
Tract described in the relinquishment of easement, Instrume No. 87�01 records of Kootenai County,
Idaho,the POINT OF BEGINNING; thence — /
Continuing along the extended Northeasterly line of said Tax No. 2W-4, uOr-6M21"East, 30.52 feet
to the Northwesterly line of that Tract described in Quitclaim Deed, f s t No. 57285, records of
Kootenai County, Idaho;thence <�
Continuing on said Northeasterly line extended South 66°23'21" East, �.(,�P,KeWto point an the
Southwesterly right of way boundary of original U.S.Highway No. 10 as it eyi-inVicerre�4
struction
of Miscellaneous Project No. 761, according to the plans thereof on file in'`t�}e t e Idaho
Transportation Department;thence
Southwesterly 20.87 feet along the arc of a curve to the left, said curve having a rad& 00 fll','a
central angle of 01°50'42",and a chord that bears South 62113'01"West, 20.86 feet;then 1-17111
�'..•'� '�ram',�`�
Continuing along said Southeasterly line, South 58°39'03"West,67.94 feet;thence ,
EXHIBIT A �� ,

v 4
said Southeasterly line, North 33°48'00" West, 25.00 feet along the Southwesterly line of said
�`-— Tact dYpTed in Quitclaim Deed,Instrument No. 1357285 to the Northwesterly corner thereof;thence
\Xo;'49° 3'00"West,7.00 feet along the Southwesterly line of said Tract described in relinquishment of
�fiexp,M s ent No.287432 to the most Westerly corner thereof;thence
\�
North 40 3 0" ti�: 0 feet along the Northwesterly line of said relinquishment of easement to the
POIl OF B-BG Il� -
LESS anyq�ort,}efi/wi n'n of ways for Road and or Trail.
Parcel Identificklo�: ,mumbef 5 NO3W-29-7300
WG Property: '
Parcel 1:
That part of Lot 4, Section'�9,,T 1i;5' North Range 3 West of the Boise Meridian, described as
follows: rl r
c> fJ f l
COMMENCING at the Southeast orr {gf mot, ection 29, Township 50 North, Range 3 West of the
Boise Meridian;thence
North to the Northeast corner of said lot;thence '
West along the North Line,550 feet;thence ��ter'
f fr
South, 1100 feet;thence
Southeast 150 feet to Lake Coeur d'Alene;thence �
� r
Northeasterly following the lake shore of Lake Coeur d'Alen q�fo� T OF BEGINNING.
EXCEPTING THEREFROM the following tract of land convtftf e e�6 Al G''rYrtth,a widow,by Warranty
Deed recorded in Book 119 of Deeds at Page 413,described as fo71-off.
f r' s
COMMENCING AT A POINT 550 FEET West and 800 feet South ofAbjpNor ast'c' er of Lot 4,Section
29,Township 50 North,Range 3 West of the Boise Meridian;thenw
South,a distance of 300 feet;thence �� f
Southeast a distance of approximately 35 feet to the North boundary of presen S.H* ;thence
Northeasterlyand aloe the North bound ti
g boundary of said U.S.Highway 10,a distance of a pr¢�'mk�e1yV350 feet
to a rocky point;thence ''�� '
f
Northwesterly in a direct line to the POINT OF BEGINNING. rr
ALSO EXCEPTING THEREFROM the highway right of way.
EXHIBIT A ��

_QIEXCEPTING THEREFROM a portion of Government Lot 4,Section 29,Township 50 North,Range
i �`-�3,,.West ise Meridian,Kootenai County,Idaho,described as follows:
\. cC( F.,CING at a point on the North line of said Government Lot 4,being the Northwest corner of Tax
luxgkl 1"578 m which the East Quarter corner of said Section 29 bears South 87?31'28"East,550 feet;
SoutltQ?14'3 Eas,,�OwMeAin
�"et along the West line of Tax Number 1578 to the most Northerly corner of
Tax Ni m er Warrant Deed as Instrument No. 146405 records of Kootenai Count, Y y,
Idaho;Thoce rj
V r )
South 66?23'3�'East,f 20 45 e'etalong the Northeasterly line of said Tax Number 2034 to an iron rod, 1/2
inch diameter,t)en
Continuing along said4A�Jshmen�,@fT,#mcnt,
r$a rly)line��QQuth 66?23'21"East,29.98 feet to the Northwesterly line of that
tract described in the Instrument No. 287432, records of Kootenai County,
Idaho,the POINT OF E ' F t�l hce
I �
Continuing along the extend`d,No;flic kqly ine of said Tax Number 2034, South 66?23'21"East, 30.52
! feet to the Northwesterly line o tha a`ct des ribeti-' Quitclaim Deed, Instrument No. 1357285, records
of Kootenai County,Idaho;then
Continuing on said Northeasterly extea3tred South 06?23'21" East, 32.01 feet to a point on the
Southwesterly right-of--way boundary ofpriginal U.S�gliwa`XNo. 10 as It existed prior to the construction
of Miscellaneous Project No. 761, according to a plus ereof on file in the office of the Idaho
Transportation Department;thence �'' f r
�_ �
Southwesterly, 20.87 feet along the are of a c - e to the__10(��,- said curve having a radius of 648.00 feet, a
central angle of 1?50'42"and a chord that bears 9*6t 6 3`Ol" est,20.86 feet,thence
Continuing along said Southeasterly line,South 58?39�,03'6IJ st, .94 feet;thence
Leaving said Southeasterly line,North 33?48'00"West,25.00f6et&1 th Southwesterly line of said tract
described in Quitclaim Deed,Instrument No. 1357285 to the oj�hh7 e f y corner thereof;thence
North 49?23'00" West,7.00 feet along the Southwesterly line o saul��*- ed in Relinquishment of
Easement,Instrument No. 287432,to the most Westerly corner the of;A9V"6'e
North 40?37'00" East, 59.00 feet along the Northwesterly line of said5R1n eislundnr9f Easement to the
POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM those littoral rights quieted to R&P, LP'.4V= Judgment and
Decree Quieting Title in Case CV-14-5345, District Court of the First JudacDi daho, and
recorded April 9,2015 as Instrument No.2493097000,records of Kootenai Couatty, o.
}
� Parcel 2:
A parcel of land being.on the Northwesterly side of the Northwesterly right-of-way bot
of ',5� `w�`
Highway No. 10, Miscellaneous Project No. 761, Highway Survey as shown on the plans thoff
EXHIBIT A �'.��

{
� A e ut,P}Te office of the Idaho Transportation Department,and on the Southeasterly side of the Southeasterly
`. bodridaiy of the irregular tract of land as described in that certain Relinquishment of Easement dated August
�'----`3j/, 195k�ecorded September 8, 1954 in Book 27 of Miscellaneous Records at Page 232, records of
"_,-Xo0t i County,Idaho,and being a portion of Government Lot 4 of Section 29 and the Northwest Quarter
\. tbeSo west Quarter of Section 28, Township 50 North, Range 3 West of the Boise Meridian, more
�ft es 'bed as follows:
BEGIN] at 9a,arty Southerly corner of the irregular tract of land as described in that certain
Relin'q ishme Ea et�t dated August 31, 1954, recorded September 8, 1954, m Book 27 of
Miscellaneo ec .age,232, records of Kootenai County, Idaho, which is shown of record to be
North 33?4N 00 es� 100 t from Station minus 11+20 of said U.S. Highway No 10,Miscellaneous
Project No. 61 J1ighwAy fey&nd approximately 925.0 feet South and 330.0 feet West from the East
Quarter corner f Sic or Z �l)owwnship 50 North,Range 3 West of the Boise Meridian;thence
Northeasterly and J as� ong tli- Southeast Quarter of the above-mentioned irregular tract of land,512.0
feet, more or less,to a oint n t e orth�e, erly right-of-way boundary of construction of Miscellaneous
Project No.761;thenc (� �
South 68?19'00" East, along sar'd o�igiig_xortheasterly right-of-way boundary, 70.0 feet,more or less, to
a point in a line parallel ail/e.t' .kic with and 75.0 feet Northerly from the centerline of said
Miscellaneous Project No. 761, ig a},-S•1uv y;t4 ce
1-1
Along said parallel line as follows
4 ;r
le , having a cr�algle of 10?00'00", a distance of 182.0 feet,
Westerly along 200.0 foot spiral curve�
more or less, to a point opposite Station minus 8 jA-4.4 gf said Highway Survey, Southwesterly along a
648.0 foot radius curve left, 243.0 feet, more 1ess,,�to a oin opposite Station minus 10+59.4 of said
Highway Survey;thence
Southwesterly along a 200.0 foot radius curve lei` centrN angle of 10?00'00" a distance of 65.0
feet,more or less,to a point in the Southwesterly right-Af-wz�—R)uqUary of original U.S.Highway No. 10,
as it existed prior to the construction of said Miscell edus of t No. 761 that bears North 33?48'00"
West from Station minus 11+20 of said Highway Surve the 5
North 33?40100"West,along said original right-of-way boun ary .00..0 e;more or less,to the POINT OF
BEGINNING.
TOGETHER WITH all that portion of abandoned highway as des rib eld i, eluishment of Easement
recorded September 8, 1954 in Book 27 of Miscellaneous Records a Page 232
Parcel Identification Number: 50NO3W-29-7250Ay
r�
EXHIBIT A ,
I

• r�F�l
,r` r
EXHIBIT B
TO
WATER CONNECTION AND SERVICES AGREEMENT
LEGAL DE,SCR.IPTION OF SAWMILL PROPERTY
�F
cl 1�
That ortion � ��l*2,Syringa Heights 7th Addition,according to the Plat recorded in the office
of the ountcc d� mb K of Plats at Page(s)297,records of Kootenai County,Idaho,lying
Northerly#�f t o11q ing OqEq4bed line:
BEGINNING<t thgloo eats c' mer of Lot 9,Block 2 of said Syringa Heights 7th Addition,thence
South 89°3855 a di�stafi of 100.07 feet to and angle point on the East line of said Lot 10,and the
END of said line. . -`�•
Parcel Identification Nii r: 7�60Y-'010-A
Parcel 2:
That portion of Lot 10,Block 2, S"n ,t;s�A Addition,according to the Plat recorded in the office
of the County Recorder in Book K of P (s)297,reds of Kootenai County,Idaho,lying Southerly
of the following described line: F r
BEGINNING at the Northeast corner of Lot 9,31'ock,2-of sy id nga Heights 7th Addition,thence South
89138'55"East a distance of 100.07 feet to an'�ang 'post on� e East line of said Lot 10,and the END of
said line.
EXCEPT that portion of said Lot 10 as described }ii grQui clam Deed recorded as Instrument No.
2492970000,records of Kootenai County,Idaho. l�
Parcel Identification Number:0-K297-002-010-B
Parcel 3: r
�r F
Utility Tract,Camas Hill Estates, according to the plat thereof recorde4 iwgoedk L�0�',ats at Page 522,
records of Kootenai County,Idaho. ' !,.� )
Parcel Identification Number:0-1,522-000-UTL-0 .t
EXHIBIT B o

EXATBIT C
TO
COMPANY SYSTEM IMPROVEMENTS
k. W itetail Booster-upgrade station so it can pump 225 gpm w/largest pump out of service.
2 x" h se Booster-upgrade station so it can pump 225 gpm w/largest pump out of service.
- 3(/S an Filter Transfer- upgrade existing pump to duplex pumps each with a capacity of 225
i p
4: At ,110 pu vh a capacity of at least 25 gpm. The two existing lakc pumps can pump
appr ima gp,klm each• Adding the third pump would bring system capacity up to 225
gp w large t pu A, service.
tt
f
y�
EXHIBIT C � � ,

EXHIBIT D
TO
Z -'� CUSTOMER SYSTEM IMPROVEMENTS
It is anti ipa ttttomer System Improvements will include: i
r
• A i4W6fiahon try upi reservoir to be built on the Sawmill Property;
• A pota�e water kme -6ss the Sawmill Property to the Customer Properties from South Helen
Drive; '�,�r�,r
• Any necess�y t h pn stem re hydrant,water meter,and other appurtenances within the
Customer Properties C lr ,
1 c
Y
Yr h
X
�f
S�Yf

• D Kenneth Baumgarten [e-mail]
• Pete Capano pcap49 _yahoo.com
• Robert F. Ferrell rdoublef(@aol.com