20240806SWS to Staff 2B - scansubmissiion 2 b.pdf

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 40: Please provide a copy of the current insurance contract that
includes premiums and coverage along with any invoices from the insurance provider.
.Answer: The °`Umbrella Policy" from Philadelphia Insurance Company all the
all the Esprit divisions. Water Company share is $7,000.00. We have
corrected the original Journal Entry it the 2023 Test Year profit and loss
statement submitted with our application. This correction results in an
increase in our insurance cost of approximately $6,568.00
Company Response 4/24/2024

[e-mail]
From: [e-mail]
t: Tuesday, April 23, 2024 11:40 AM
Jeffrey Merkeley
Subject: FW: stoneridge (espirit)
From:Scott Kanemoto<SK nemoto crestins.com>
Sent: Wednesday, March 6, 2024 1:18 PM
To: Susan Salazar<ssalazarC crestins.com>; Rebecca Loughnan <beccaloughnan@ mail.corn>
Cc: Becca <heccastonerid€;eidaho.com>; chansancomcast.net
Subject: Re: stoneridge (espirit)
Hello!
In looking through my notes it looks like the premium billed back to the HOA for the water treatment portion of hte
insurance was roughly$7,000.
Let me know if this helps as you put together your allocations.
Thanks,
Scott
1

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 41- Please provide a list of all the services the parent company
provides Stoneridge Utilities and any cost allocation methodologies used.
Answer: Esprit provides the following services to CIDS StoneRidge Utilities:
1 Office space and supplemental office support items (see office lease
attached in Question #39)
2. Staffing Agency contract labor for operations and administration. (See
original Staffing Agency Agreement dated January 2020 and Amended
Staffing Agency Agreement dated January 2024 in Question #3).
3. ROW, water rights, easement, and equipment lease (See ROW, water
rights, equipment and easement lease in Question #39)
The allocation of the costs for each of the three agreements is as
follows:
A. Office space and operation costs are allocated 60% to Water
Company and 40% to Sewer Company (Blanchard Utility
Services). Labor and equipment cost is allocated 70% to Water
Company and 30% to Sewer Company. allocation-- The amount
of office space and labor involved in operating the water
company is significantly higher than sewer operations—i.e.
monthly meter readings, winterization testing,
disconnects/reconnects, backflow preventers, chlorine treatment
level monitoring, unstable electric power grid, record keeping,
billing and payment collections, alarm/monitoring system issues,
water line failures, fire hydrant testing, reservoir/storage
management.
4. Water rights are allocated 100% to water company, ROW, easement
and equipment is allocated in the following manner-60% water &
40% Sewer.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 42: Please provide a copy of the Company's bank statements
for 2022 and 2023.
.Answer: Please see the attached bank monthly statements for 2022-202
on memory stick
a-,
4
Company Response 4/24/2024

Case # SWS-W-24-01 -StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 43: Please provide the supporting documentation for the JD
Resort Uncategorized expenses of $1,049.02.
Answer: This entry was discovered after we forwarded a copy off our 2022-
2024 QB file to IPUC.
Our year-end review of accounting records revealed this check (#1449)
payment of $47,241.38 was for accrued interest ($46,192.36) plus a
$1,049.02 reduction in the principal balance on the loan. We moved the
$1,049.02 from Misc. Expense to a decrease in loan principal during our
review.
This line of credit was converted to additional equity investment in the Water
Company at year end 23 per our application to IPUC for issuance of
stock/interests etc.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 44: Please provide all documents for the DEQ Loan.
.Answer: Please see attached copy of the DEQ loan agreement for Happy
Valley,
Company Response 4/24/2024

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Ada�
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STATE OF IDAHO
7 . DEPARTMENT OF
ENVIRONMENTAL QUALITY '`
'A . '
1410 North Hilton•Boise,Idaho 83706-1255•[phone] Dirk Kempthorne,Govemor
G.Stephen Allred,Director
August 28,2003
Mr.Dean Allara
CDS Stoneridge Utilities,LLC
P. O.Box 280
364 Stoneridge Dr.
Blanchard,ID 83804
Dear Mr.Allara:
I am please to inform you that your application for loan in the amount of $213,450 from the
Drinking Water State Revolving Fund has been accepted. The loan offer is enclosed.
Once this offer has been accepted,please complete the project schedule on pages 5 and 6 and
sign the offer on page 10. A copy of the signed offer should be kept in your files. Tile
original loan offer and the completed EPA Form 4700-4 should be returned to Bill Jerrel in
this office at the address listed above.
If you have any questions regarding this loan offer please contact Bill Jerrel at(208)373-0400
or John Tindall in our Coeur d'Alene office at(208)769-1422.
Mector
Ired
cc: John Tindall,Coeur d'Alene Regional Office

STATE OF IDAIHO
DEPARTMENT OF ENVIRONMENTAL QUALITY
LOAN OFFER,ACCEPTANCE AND CONTRACT
FOR DRINKING WATER TREATMENT
DESIGN AND CONSTRUCTION
SECTION L INTRODUCTION
The Idaho Department of Environmental Quality(Department)is authorized by Title 39, Chapter
76,Idaho Code,to make loans from the State Drinking Water Revolving Loan Account(Account)
to assist public water systems in the construction of drinking water treatment facilities. The
Department has determined that the CDS Stoneridge Utilities,LLC has established eligibility for a
loan under the terms of the Idaho Code and the Rules for Administration of Drinking Water Loan
Account,IDAPA 58 Title 1, Chapter 20(Rules).
A completed application for a Drinking Water Design and Constriction Loan has been submitted
to the Department by the Applicant. The Department hereby offers a loan to the Applicant according
to the terms and conditions contained in this document and the Rules.
SECTION II.DESCRIPTION OF PROJECT
This loan offer is for design and construction of the following project:
A. Loan Project Number: DW-9918
B. Applicant: CDS Stoneridge Utilities,LLC
P.O.Box 280
364 Stoneridge Dr.
Blanchard,ID 83804
C. Terms: $213,450 at 2%interest to be repaid in biannual
installments over 20 years.
D_ Project Description: Integration of the Happy Valley Ranchos water system into the
Stoneridge water system.Construction includes approximately
3500 feet of 8-inch transmission line, fire hydrant,booster
pump station and improvements to the existing reservoirs.
1

Loan No. DW-9918
E. Estimated Project Budget
1. Administration&Legal $ 14,000
2. Engineering Fees 31,900
3. Construction 167,550
4. Total $213,450
SECTION III. GENERAL CONDITIONS
This offer may only be accepted by signature by an authorized representative of the Applicant. Upon
acceptance by the Applicant,this offer shall become a loan contract and the Applicant shall become
a Borrower.By accepting this offer,the Borrower agrees to all terms and conditions set forth in this
document and the Rules:
The Borrower agrees:
A. To not transfer,assign or pledge any beneficial interest in this contract to any other person
or entity without the prior written consent of the Director of the Department of
Environmental Quality (Director). To not enter into sale, lease or transfer of any of the
property related to the project. To not snake any additional material encumbrances to the
project without the prior written consent of the Director. To not incur any liabilities that
would materially affect the funds pledged to repay this loan without the prior written consent
of the Director. To not delegate legal responsibility for complying with the terms,
conditions,and obligations of this contract without the prior written consent of the Director.
Notwithstanding any other provision of this paragraph,the Borrower may sell or otherwise
dispose of any of the works, plant, properties and facilities of the project or any real or
personal property comprising a part of the same which shall have become unserviceable,
inadequate, obsolete or unfit to be used in the operation of the project, or no longer
necessary, material or useful in such operation, without the prior written consent of the
Director which will not unreasonably be withheld.
B. To enter into such contractual arrangements with third parties as it deems advisable to assist
it in meeting its responsibilities under this contract.
C. To fulfill all declarations,assurances,representations and statements in the application and
all other documents, amendments and communications filed with the Department by the
Applicant in support of the request for this loan.
D. To comply with applicable State and Federal employment requirements including,but not
2

Loan No. DW-9918
limited to,Equal Employment Opportunity and Civil Rights requirements.
E. To make efforts to award subagreements to Minority and Women-owned businesses
(MBE/WBE). The fair share goals, 1%and 1%respectively,will be in bid solicitations and
documentation of efforts to obtain MBE/WBE participation will be required of any
contractor who fails to attain the goals. Quarterly reports of MBE/WBE utilization will be
prepared on forms supplied by the Department.
F. To provide evidence of ownership in the form of fee simple title or long-term lease and right
of access or easements for real property on which the project is to be constructed. Clear title
to all real property necessary for the successful operation of the facilities shall be guaranteed
by the Borrower for the useful life of the project.
G. To take affirmative action to ensure that the project shall be completed and operated in
conformance with federal and state laws relating to occupational health and safety.
H. That ifprior to completion of this contract the project is damaged or destroyed,there will be
no reduction in the amounts payable by the Borrower to the Department.
I. That in the event there is any default in the payment of either the principal amount or the
interest due under this contract, or any breach by the Borrower of any of the teens or
conditions of this contract,the entire principal amount and whatever interest is due to the
date of payment may be declared due and immediately payable. The amount of such default
shall bear the same interest rate as applies to the principal of this loan from the date of
default until the date of payment by the Borrower. All costs incurred by the Department due
to such default,including court costs and attorney's fees,shall be repaid by the Borrower to
the Department.
J. That any waiver by the Department at any time of the rights or duties under this contract shall
not be deemed a waiver of any subsequent or additional rights or duties under this contract.
K. That the use by the Department of any remedy specified in this contract for its enforcement
is not exclusive and shall not deprive the Department of the right to seek any other
appropriate legal or equitable remedy-
L. That this agreement is binding upon the Borrower and the Department,and any person,office
or entity succeeding the Borrower or the Department.
M. To comply with all applicable federal, state and local laws.
3

Loan No. DW-9918
SECTION IV.PROJECT MANAGEMENT
The Borrower agrees to:
A. Require the prime engineering firm(s)and their principals retained for engineering services
to carry professional liability indemnification to protect the public from the engineer's
negligent acts and errors of omission of a professional nature. The total aggregate of the
engineer's professional liability indemnification shall be one hundred thousand dollars
($100,000) or twice the amount of the engineer's fee,whichever is greater. Professional
liability indemnification must cover all services rendered for all phases of the project,
whether or not those services are state funded,until the certification of project performance
is accepted by the Department.
B. Comply with the Public Contracts Bond Act,Title 54,Chapter 19,Idaho Code,including
requiring the prime construction contractor retained for construction to carry performance
and payment bonds equal to one hundred percent(100%)of the contract price. The bond
will be released when the constructed facility is accepted by the Borrower.
C. Assure that contracts related to the project which provide for arbitration allow appeal of any
resulting arbitration decision to a district court or allow the arbitration to be non-binding on
both parties if either party desires not to use arbitration as a method of dispute settlement.
D. Jointly with an engineering consultant provide assurances that the physical and operational
integrity of the works,rvvhen constructed,will achieve the level of treatment provided for in
the design specifications.
B. Provide for the accumulation of fiords through charges made for services or otherwise, for
the purposes of(1) establishing a fund dedicated solely to the repayment of principal and
interest on this loan, (2) capital replacement and (3) future improvement,betterment, and
extension of such works occasioned by increased usage on the facility.
F. Provide a plan and program for an equitable user charge system for payment of operation and
maintenance of constructed facilities. The user charge system shall be approved by the
Department and enacted by the Borrower prior to receiving final payment. Make available
on an equitable basis the services of the project to the residents and commercial and
industrial establishments of the area it was designed to serve.
G. Develop and adopt a water system protection policy approved by the Department prior to
receiving final payment of loan funds.
H. Provide an operation and maintenance manual for the project approved by the Department
prior to receiving final payment of loan funds.
4

Loan No. DW-9918
I. Provide adequate staffing and qualified operation and maintenance personnel as specified in
the operation and maintenance manual approved by the Department .
J. Assure that the operator in charge of the facility has a level of competency commensurate
with the nature of the facility. He(She)must be certified as a Drinking Water Operator in a
class equal to or greater than that of the facility.
K. Assure that treatment facility personnel shall participate in operator training programs
approved by the Department and designed to assure competence in the operation and
maintenance of the facility.
L. Commence satisfactory operation and maintenance of the drinking water treatment facility
on completion of the project in accordance with applicable provisions, riles of the
Department and any other applicable law,rule or regulation and not discontinue operation
or dispose of the facility without the written approval of the Department.
M. Review and update the user charge system at least biennially during the life of this agreement
to assure that all costs including applicable debt retirement,operation and maintenance are
offset by sufficient revenues.
N. Maintain project accounts in accordance with generally accepted accounting principles issued
by the Financial Accounting Standards Board(FASB).
SECTION V.SPECIAL CONDITIONS
A. The Borrower shall complete the project in accordance with the following schedule:
Number of months from Task
Loan Acceptance
10%Design Review
50%Design Review
90%Design Review
L User Charge System Approved
} Water System Protection Ordinance Approved
Final Plans,Specifications and Bidding Documents
Bid Summary
Award Construction Contract
` Project Management Conference
Plan of Operation Amendment
Draft Operation& Maintenance Manual
Staffing Plan
Construction Completion
5

Loan No. DW-9918
User Charge System Enacted
Water Protection Ordinance Enacted
i Final O&M Manual
Final Inspection
Initiate Operation
t Final Payment
B. The above schedule constitutes the project schedule;all amendments to the project schedule
must be approved by the project engineer in the DEQ regional office,prior to becoming
effective.
SECTION V1.SECURITY REQUIREMENTS
The Borrower agrees:
A. Upon completion of construction this loan will be evidenced and secured by a promissory
note in the amount of$213,450 plus accrued interest, if applicable.The loan will be repaid
solely from revenues provided by a surcharge, approved by the Idaho Public Utilities
Commission, from the Happy Valley Ranchos customers. A copy of the promissory note
will be attached to this contract and incorporated by reference.
B. To establish a reserve account that within 5 years will contain an amount equal to 1 year's
repayment of principal and interest due on this contract. A minimum of 20 percent of the
total reserve will be deposited annually during the 5-year period. In the event Borrower fails
to make any repayment due on this contract,Borrower shall innmediately use the fiends in the
reserve account to pay the past due principal and interest on this contract. Borrower will
inforrn the Department in writing when fiends from the reserve account are used. Within 30
days of using the funds in the reserve account,Borrower will replenish the reserve account
in an amount equal to the amount borrowed from the reserve account. The reserve account
may be used by the Borrower solely for the purpose of securing repayments on this contract.
C. Establish and maintain accounting records for the water system as an enterprise fund separate
from the wastewater system.
D. Establish and maintain a cash budget that contains an amount equal to one and one-half
months of operating expenses.
E. Prior to completion of construction complete a capital improvement plan and capital budget
to address long-term capital improvements to the drinking water system.
F. Prior to completion of construction establish policies that address safety and/or risk
management and operating emergencies.
6

Loan No. DW-9918
SECTION VII.LOAN DISBURSEMENTS
The Borrower agrees_
A. This loan shall be used solely to aid in the financing of the Borrower's project.
B. Requests for actual disbursement of loan funds will be made by the Borrower using forms
provided by the Department. Upon approval of the disbursement request by the Department
loans funds shall be released to the Borrower.
C. The costs set forth in Section II have been determined by the Department to be eligible costs
for funding. Some of the costs, however, have been estimated, and the actual costs may
differ from such estimated costs. A project review by the Department will determine final
eligible costs for the project.
D. If the actual eligible cost of the project is determined by the Department to be lower than the
estimated eligible cost,the loan amount will be reduced accordingly.
E. Payment of the final five percent (5%) of this loan, shall be withheld until the following
requirements are met:
1. The Borrower's engineer certifies(a)that the project has been.constructed according
+� to plans and specifications previously approved by the Department and(b)that the
1 project is fully operational;and
2. The Department has inspected the project and verifies the engineer's certification;and
3. The Department has determined that all terms and conditions of this agreement have
been met; and
4. A final loan repayment schedule has been completed; and
5. All security requirements of Section VI have been satisfied.
F. This offer is subject to the existence of the offered sum of money in the Account at the time
of payment. Should the offered sum of money not be available in the Account at the time
of payment,the Department hereby agrees to pay the Applicant the offered sum of money
on the basis of the Applicant's priority position immediately upon the accrual of said sum in
the Account_
SECTION VUL REPAYMENT TERMS AND SCHEDULE
The Borrower agrees:
7
1

Loan No. DW-9918
A. This loan shall be repaid in the manner set forth in the promissory note that shall be attached
to this contract and incorporated by reference.
B. To pay biannual payments of principal and interest and to fully amortize this loan not later
than twenty 20 years from project completion. Interest will begin accruing with the first
disbursement. At the end of construction accrued interest will either be paid to the
Department or incorporated into the final loan amount if the approved amount has not been
exceeded.
C. This loan contract shall remain in full force and effect until all loan proceeds, including
principal and interest, have been paid in full or the contract is otherwise suspended or
terminated by the Department.
SECTION IX.SUSPENSION OR TERMINATION OF LOAN CONTRACT
A. The Director may suspend or terminate this loan contract prior to final disbursement for good
cause including,but not limited to,the following:
1. Commission by an employee or agent of the Borrower,of any of the following acts
which affects the Borrower's obligations under this contract: fraud,embezzlement,
theft, forgery, bribery, misrepresentation, conversion, malpractice, misconduct,
malfeasance,misfeasance,falsification or unlawfiul destruction of records,receipt of
stolen property or any crime for which the maximum sentence includes the possibility
of one(1)or more years'imprisonment.
2. Violation(s)of any terns of Bus loan contract; or
3. Any willful or serious failure to perform within the scope of the project, plan of
operation and project schedule,terms of engineering subagrecinents,or contracts for
construction; or
4. Utilizing a contractor or subcontractor who has been debarred for good cause by any
federal or state agency from working on public work projects funded by that agency.
B. The Director will notify the Borrower in writing and by certified mail of the intent to suspend
or terminate this loan contract. The notice of intent shall state:
l. Specific acts or omissions which form the basis for suspension or termination; and
2. Availability of a contested case hearing,before the Board of Environmental Quality,
conducted as provided for in the Rules of Administrative Procedure Before the Board
of Environmental Quality,IDAPA 58.01.23.et seq.
8
1

Loan No. DW-9918
C. If the Borrower does not initiate a contested case hearing before the Board by filing a petition
within the time period specified by the Rules of Administrative Procedure Before the Board
of Environmental Quality,IDAPA 58.01.23 et.seq.,the Department may thereafter terminate
or suspend the loan contract by written notice to the Borrower. If the Borrower initiates a
contested case,the termination or suspension shall be determined by the Board.
D. Upon written request by the Borrower with evidence that the cause(s) for suspension no
longer exists, the Director may, if funds are available, reinstate the loan contract. If a
suspended loan contract is not reinstated, the loan will be amortized and a repayment
schedule prepared in accordance with the provisions of the loan contract.
E. No terminated loan shall be reinstated. Terminated loans will be amortized and a repayment
schedule prepared in accordance with the provisions of this loan contract.
SECTION X.ACCESS AND INDEMNIFICATION
The Borrower agrees to:
A. Provide the Department,or its authorized agents,access to all files,records,accountings and
books relating to the management and accountability of this loan.
B. Indemnify and save harmless the Department,its agents,and its employees from any and
all claims,actions,damages,liabilities and expenses directly or indirectly connected to the
Borrower or its agents,employees,contractors,or assignees actions related to the location,
design,construction,operation,maintenance,repair, failure or deactivation of the project or
any part of the project.
,� 9

Loan No. DW-9918
SECTION XI.OFFER
The offer set forth herein must be accepted,if at all,on or before October 29,2003. An acceptance
must be accompanied by a resolution of the Applicant's governing body authorizing the signator to
sign on the Applicant's behalf for the purpose of this agreement.
Dated August 28,2003.
rec o
rtment of Environmental Quality
SECTION MI.ACCEPTANCE
CDS Stoneridge Utilities,LLC,by and through its undersigned representative,accepts the foregoing
offer and agrees to discharge all obligations and to comply with all terms and conditions contained
herein.
Representative
t- v iL.t>,: , v
Name and Title of Representative-type or print
Date
10

PLEASE NOTE:Questions concerning cons on of this form should be directed to Cecel' Mfreras at(206 553-2899.
United States Environmental Protection Agency FORM Approved
Washington, DC 20460 OMB No,2090-0014
Preaward Compliance Review Report for Expires 4-30-99
All Applicants Requesting Federal Financial Assistance
EPA
Note: Read instructions on reverse side before completing form.
(Name.P
B. Recipient ame.City, C.EPA Project No.
I. A. Applicant(Name,City,State) State)
��� S7Z.•r rifv�e of -I) ts, (LC j /fiS fJJ'��t6 :Pw- (S�F)
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II. Brief description of;awsu
project,program or activity.
J�/''�f lu �,�✓
l�N TIII. Are any civil rightscomplaints pending against applicant and/or recipient? �Yes &<oIf yes,list thonts and the disposition of each complaint.
IV. Have any civil rights compliance reviews of the applicant and/or recipient been conducted by any Federal
agency during the two years prior to this application for activities which would receive EPA assistance? Yes °
If yes,list those compliance reviews and status of each review.
V. =appliedto
=otherFederal
nce being applied for or is any other Federal financial assistance being J yes C'�No
t,program or activity?
Agency(s)describe the associated work and the dollar amount of assistance.
VI. if entire community under the applicant0s jurisdiction is not served under the existing facilities/services,
or will not be served under the proposed plan,give reasons why.
VII.
Population Characteristics Number of People
1. A. Population of Entire Service Area
B. Minority Population of Entire Service Area
2. A. Population Currently Being Served Q S i)
B. Minority Population Currently Being Served ufr Kt--�,�
3. A. Population to be Served by Project,Program or Activity U
B.Minority Population to be Served by Project,Program or Activity J. K
4. A. Population to Remain Without Service
B. Minority Population to Remain Without Service
Vlll. Will all new facilities or alterations to existing facilities financed by these funds be designed
and constructed to be readily accessible to and usable by handicapped persons? ❑ No
if no,explain how a regulatory exception(40CFR 7.70)applies.
IX. Give the schedule for future projects,programs or activities(or for future plans),by which services will be �L./
provided to all beneficiaries within applicant0s jurisdiction. If there is no schedule,explain why. 5((f C Y� r /� tN r n
X. I certify that the statements i h ve eon this form and all attachments thereto are true,accurate and complete. I acknowledge
that any knowingly false or mil
lea ing statement may be punishable by fine or imprisonment or both under applicable law.
A. Signature of Authorized Official �— Title of Authorized Official , tr✓fFc rt P?E,�l ®` - u3
For the U.S.Environmental Protection Agency
J�Appro�ed !_i D!sapproved
Authorized EPA Official Date
"`� E A OM 4 -4 0)Prcvlous itions are o so ere.

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 45: Please provide a list of any IT expenses the Company has
incurred since the Company's last rate case. Please provide a worksheet
that provides:
a. Description of each purchase;
b. Purpose of each purchase-,
C. Date of purchase; and
d. Cost of the purchase.
.Answer: All IT services are included in the office lease "supplemental"
clause provided by landlord. See Question #39 for copy of the original office
lease agreement between Esprit Enterprises, LLC and CDS StoneRidge
Utilities, LLC.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 46: Please list all available water rights to the Company. Please
provide supporting documentation, including the total maximum water production in acre
feet ("AF) for each water right.
.Answer: Per the attached agreement between Esprit Enterprises and CDS
StoneRidge Utilities, LLC there is only one water right currently being leased
to CDS StoneRidge Utilities, LLC. A copy of that water right from IDWR is
attached.
Company Response 4/24/2024

4/19/24,3:49 PM WaterRightReport-ExternalSearch
Water Right Report : 95-9587( Decreed/Active)
Water Right Owners
Owner Type Name Address City State Postal Code
Current Owner ESPRIT ENTERPRISES LLC PO BOX 770 BAYVIEW ID 83803-0770
Original Owner STONERIDGE WATER CO PO BOX 298 BLANCHARD ID 83804
Water Right Status
Priority Date :4/26/1972
Basis : Decreed
Status :Active
Water Source
Source Source Qualifier Tributary Tributary Qualifier
GROUND WATER
Points Of Diversion (Location)
Source Township Range Section Govt. Lot QQQ QQ Q County Diversion Type
GROUND WATER S4N 05W 20 0 NW SW BONNER
GROUND WATER 54N 05W 20 0 NW SW BONNER
GROUND WATER 54N 05W 20 0 NW SW BONNER
Water Uses
Beneficial Use From To Diversion Rate Volume
MUNICIPAL 01/01 12/31 1.89 CFS 588.60 AFA
TOTAL 1.89 CFS S88.60 CFS
I
Places of Use
This water right has a Lie Place Of Use tea/
i
Conditions
Code Condtions
C18 This partial decree is subject to such general provisions necessary for the definition of the rights or for
of the water rights as may be ultimately determined by the Court at a point in time no later than the er
Section 42-1412(6), Idaho Code.

Water Right Report : 95-9587( Decreed/Active)
Water Right Owners
owner TYPe Name
Address City State Postal Code
Current Owner ESPRIT ENTERPRISES LLC PO BOX 770 BAYVIEW ID 83803-0770
Original Owner STONERIDGE WATER CO PO BOX 298 BLANCHARD ID 83804
Water Right Status
Priority Date:4/25/1972
Basis:Decreed j
Status:Active
Water Source
Source Source Qualifier Tributary Tributary Qualifier
GROUND WATER
Points Of Diversion(Location) k
Source Township Range Section Govt.Lot QQQ QQ Q County Diversion Type
GROUND WATER 54N 05W 20 0 NW SW BONNER
GROUND WATER 54N OSW 2€1 0 NW SW BONNER 4
GROUND WATER 54N 45W ZO 0 NW 5W BONNER
I
Water Uses
I
Benefidal Use From To Diversion Rate Volume
MUNICIPAL 01,201 1211*31 2.89 CFS 58860 APA
n TOTAL :69 CES 588,CO CPS
Places of Use
This water right has a L31f._ g f
Conditions
i Code Condtions
C18 This part,at decree is<_kfttect to sucli glencral Provisions necessary for tfke c efi€sitlan crf the r gl�#s or for tlla eff iert aJ,=.naskfatrgn
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Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 47: In Attachment B "Details on any affiliated entity relationships," it
states that Esprit Enterprises, LLC leases "Water Rights and use of ROW held over
other private property" to the Company. Please answer the following:
a. Please define "use of ROW held over other private property."
Additionally, please describe how this term applies to the Company-,
In addition to land owned by Esprit (which is the successor Declarant/Developer),
mainlines and service lines in the system likely also pass over other privately
owned land that is not owned by Esprit. Easements were likely granted at the
time of development and/or "prescriptive easement(s)".
b. Please provide a list of the water rights that are leased to the
Company, please include:
See Question #46 response
i. A description of each leased item;
This water right is in use by the two main wells in or near the Well House
ii. Cost of the leased item-, and
The original annual lease amount was $2,000 a month (subject to an 8% annual
increase) billed to the water company only and not shared with anyone else.
iii. Length of the lease;
The lease commenced in 2020 and is a term of 5 years.
C. Please explain if each of the water rights leased are only used by
the Company. If not, please explain how many AF of each leased water right
are used by the Company; and
This water right is used solely by the Company. The total AF of this right is 588.60
AF and is solely used under the lease by the Company
d. Please explain how the water right expenses were allocated to the
Company. 100% to Company from the Esprit lease—see Question #39.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 48-. Please explain if the Company has conducted a load forecast
for the next 5 years. If so, please provide supporting worksheets. If not, please explain
why.
Answer: The Company has not done a future planning for the water
company for the next 5 years. In the last week, our engineers have
proposed an $80,000 Facility Plan update for the water system. As part of
this update a load forecast could be developed for the update.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 49-. In addition to Production Request No. 25, please provide
mileage logs for the vehicles used by the Company for 2023.
Answer: We do not keep a mileage log for the vehicles (ford 150 and 4
wheeler). The vehicle agreement (see Question #39) is "flat fee" lease that
provides for fuel to be provided by the Lessor.
Company Response 4/24/2024

Case # SWS-W-24-0 1-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST NO. 50: In reference to the "Tiered" commodity charge for
Residential Meters discussed on Sheet 5 of the Marked-up Tariff #5
submitted on March 20, 2024, please respond to the following:
a. Please explain the rationale and/or criteria the Company used to
determine the water volume levels (0-9,999 gallons, 10,000 to 19,999
gallons, and 20,000+ gallons) for each of the proposed Tiers. Please
provide any associated work papers in excel format with all formulas intact.
and enabled.
b. Please explain the rationale and/or criteria the Company used to
determine the proposed charge for the "second tier" and the "third tier"
($3.75 and $5.25, respectively). Please provide any associated work papers
in excel format with all formulas intact and enabled; and
C. Please explain the rationale and/or criteria the Company used to
determine the Tiered rates that would only apply to Residential meters and
not other service types. Please provide any associated work papers in excel
format with all formulas intact and enabled.
Answer: This was a first step to encourage conservation within our system
by incentivizing users to be more aware of how much water they are using.
In 2022, North Idaho experienced a significant drought. In fact, a local golf
course - Ranch Club shut down for the summer due to lack of water.
Stoneridge Utilities anticipates future droughts and to encourage and change
behavior for conservation, tiered pricing is being implemented.
There is significant concern for both water quality and conservation of the
Rathdrum Prairie Aquifer due to growth and increasing use of the aquifer.
Recent IPUC Staff recommendations and Commission decisions have
addressed these concerns by focusing on meeting a larger portion of
revenue requirement increases from the commodity rather than the
minimum/customer charge. "(Citing Bitterroot Water Case No. BIT- 05- ,
Order No. 23966)"
Two of our larger customers i.e. Timeshare and Motor Coach Village utilize
average use for system capacity allocation based on their meter size rather
than equivalent ERU's for peak demand. Question # 9 asked for the water
Company to quantify the system's ability to meet historical average and
.� peak demand. At this stage, system capacity is allocated based on average
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
flow and it is conceivable that peak demand may create a safety issue as it
could drain the system of minimum line pressure requirement and may even
fall below the minimum 20 psi safety requirement. This may contaminate the
drinking water system and without active pressure monitoring throughout
the system, people may get sick, which is a potential liability.
The tier pricing proposed is to address capacity allocation to large customers
who are not paying their fair share of system allocation for peak flow. The
fact that the timeshare resort and motorcoach facility are located close to
the pumps, they utilize most of the facility as the water gets pumped up to
the reservoirs and flows back down to their point of use. We will be
submitting a revised Tier Pricing Table specifically addressing larger meter
customers.
The Water Company is proposing a "Special Contract" (To be approved by
IPUC) to eliminate the use of our fire hydrants in a "non-metered/non-
backflow protected" state to fill swimming pools, operate street cleaning
trucks, and hydro-vac trucks etc.
This Special Contract will replace our "Bulk Water" sales rate and ensure that
all water will be both metered and protected by the back flow prevention
devices.
This new "Special Contract" will be available to any potential customer to
purchase "no firm excess water" during non-peak time, utilizing fire
hydrants, and other access points to our water system.
This contract will use tier pricing to potentially generate additional income
to utilize excess capacity during non-peak demand periods.
This rate could potentially be offered to Timeshare Resort, Motor Coach
Village, SPOA HOA and any other large user(s) to incentivize them to protect
and conserve our finite water resources.
Company Response 4/24/2024

Case # SWS-W-24-01-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST No. 51: In reference to the Golf Course commodity charge
receiving a 10% discount discussed on Sheet 6 of the Marked-up Tariff #5
submitted on March 20, 2024, please respond to the following:
a. Please explain the rationale and/or criteria the Company used to
determine that the Golf Course commodity charge should be
reduced 10%. Please provide any associated workpapers in
excel format with all formulas intact and enabled and:
b. Please identify the specific customer(s) and account numbers (s)
who will receive the 10% discount.
Answer: Historically the golf course primary irrigation account #0 -0298-00
has received a 10% discount on commodity charges (currently $.71/1,000
vs $79/1,000) that all other customers pay for their usage. We understand
the 10% discount was based on the irrigation account being interruptible in
the event there was not sufficient water supply to fulfill all other non-
interruptible customers and the Golf Course irrigation demand at the same
time. We do not possess any work papers or formulas upon which the
original 10% discount was determined.
In Marked-up Tariff #5 we propose to continue this 10% discount forward in
the event Golf Irrigation to purchase water from the Water Company in
addition to the water it will use from its new well.
Company Response 4/24/2024

Case # SWS-W-24-0 1-StoneRidge Water Company General Rate Case
2nd Production Request
REQUEST No. 52: Please provide proof of revenue requirement workpapers
that include "Tiered" rates and all other proposed rates not included in the
Application but are proposed in the Marked-up Tariff #5 submitted on March
20,2024. Please provide all workpapers in excel format with all formulas
intact and enabled.
Answer: We forecast no change in Revenue as we anticipate the tiered
pricing model will lead to water resource conservation by many of our
customers. The projection of changes (that were not included in the
Application) of how the other proposed rates in Tariff #5, will impact
customers behavior cannot be predicted.
Company Response 4/24/2024