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Home My WebLink About20240813Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER ANDERSON COMMISSIONER HAMMOND COMMISSIONER LODGE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: TRAVIS CULBERTSON MICHAEL DUVAL, DEPUTY ATTORNEY GENERAL DATE: AUGUST 13, 2024 SUBJECT: PONDEROSA TERRACE ESTATES WATER SYSTEM— CANCELLATION OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; CASE NO. PTE-W-24-01. On January 18, 2024, an application ("Application") was submitted to the Commission which stated that Ponderosa Terrace Estates Water System, Inc. ("PTE") was sold to Farko Water System Inc. ("Farko")l on October 1, 2016. While the Application's heading requested a transfer of PTE's Certificate of Public Convenience and Necessity ("CPCN"), the body of the Application clearly requested that PTE's CPCN be cancelled. Rather than ask that Farko be issued a new CPCN, the Application requested that the Commission recognize that Farko is operating the system as a not-for-profit organization ("non-profit"). Supplemental information related to this request was attached to the Application. On February 16, 2024, the Commission issued a Notice of Application and Notice of Intervention Deadline. Order No. 36093. No parties intervened. On March 26, 2024, Farko Board of Directors held a meeting with the water users to nominate a new Board of Directors. Seven water users were elected and recently created Cedar Springs Community Water Board of Directors ("Board"). i While the Application indicates that the word"Company"is used in both PTE's and Farko's company names, according to the Idaho Secretary of State,both companies actually use the word"System" instead of"Company"in their respective titles. DECISION MEMORANDUM 1 AUGUST 13, 2024 On May 21, 2024, the Commission issued a Notice of Modified Procedure establishing public comment and reply deadlines. Order No. 36188. Commission Staff("Staff') filed the only comments in this case. On June 17, 2024, the elected secretary of the Board filed with the Secretary of State an application to establish an unincorporated nonprofit association named Cedar Springs Community Water. Attachment A. On July 15,2024,the Commission issued Final Order No. 36259, granted Farko its request for authority to operate as a non-regulated non-profit water company—subject to certain conditions. Specifically, within 30 days of the service date of Order No. 36259, the Commission stated that Farko must have filed a compliance filing with a copy of the non-profit by-laws that has been signed by the Board as well as a signed copy of the minutes of the meeting in which the Board were elected. The Commission noted that, upon the satisfactory filing of these documents, CPCN No. 393 shall be cancelled. On August 1, 2024, secretary of Cedar Springs Community Water, stated minutes of the election of a new board was not taken by the previous Board, that the board members have been meeting monthly, and the by-laws have not been signed and could be signed at its August 2024 board meeting. Attachment B. Staff notes that the Board has only recently been appointed and that the members are volunteering their services and had to learn a lot about operating and controlling a water system with the aid of Idaho Rural Water Association. However, the Board has been responsive in coordinating with Staff. For these reasons, Staff believes that additional time is reasonable. STAFF RECOMMENDATION Staff has sufficient confidence in the new Board to support Staff s belief that additional time is warranted in this matter. This will allow the Board to properly discuss the Commission's requirements at its monthly meeting and submit a compliance filing with its minutes from the March 2024 meeting and provide a copy of the signed by-laws. Therefore, Staff recommends the Commission extend the compliance filing due date to October 1, 2024. DECISION MEMORANDUM 2 AUGUST 13, 2024 COMMISSION DECISION Does the Commission wish to grant the Board until October 1, 2024, to submit a compliance filing with documents requested in Order No. 35259? Michael Duval Deputy Attorney General 1:\Uti1ity\UDMEM0S\PTE-W-24-01 Decision Memo.docx DECISION MEMORANDUM 3 AUGUST 13, 2024 C t 0005783149 SAT s� STATE OF IDAHO For office use only �¢ ��• t°•� Office of the secretary of state, Phil McGrane y c UNINCORPORATED NONPROFIT ASSOCIATION -FILED- AGENT APPOINTMENT File#:0005783149 Idaho Secretary of State { ATE o� PO Box 83720 Date Filed:6/17/2024 9:00:59 PM F Boise, ID 83720-0080 (208)334-2301 Filing Fee:$30.00 f c r Unincorporated Nonprofit Association Agent Appointment l Select one: Standard, Expedited or Same Day Service(see Standard(filing fee$30) descriptions below) r 1.The name of the unincorporated nonprofit association is: r Cedar Springs Community Water 4 2.The complete street address of the principal office is: Principal Office Address 1083 PONDEROSA ROAD SAGLE, ID 83860 3.The mailing address ofthe principal office is: F Mailing Address None 4.Registered Agent Name and Address Registered Agent Registered Agent Stephani Blackburn Physical Address: CEDAR SPRINGS COMMUNITY WATER t 1083 PONDEROSA RD t SAGLE, ID 83860 Mailing Address: CEDAR SPRINGS COMMUNITY WATER 34 SILVER REEF RD SAGLE, ID 83860-9386 t A statement appointing a registered agent takes effect on filing by the secretary of state and is effective for five(5) years after the date of filing unless canceled or terminated earlier. ® I affirm that the registered agent appointed has consented to serve as registered agent for this entity. I- Member Signature: ( Stephan Blackburn 0611712024 Sign Here Date I• Job Title: Secretary f f t k t ( f Attachment A Case No. PTE-W-24-01 Decision Meeting 'age 1 of 1 August 13, 2024 Page 1 of 1 8@/24.8`9mw Mail'Travis Culbertson'Outlook Attachment Re: UPDATE: Cedar Springs COm0OUDitV Water db@ Fark0 Water Case No. 9IE-mJ-24-01 Decision Meeting Steph8Oi Kier <Steph8Oi.ki8[@gOnai1.[OOl> August l3, 2O24 Thu 8/l/20Z47:37 PM Tn:Travis Culbertson ^TravisIu|bertson@puc.idaho.gov` 1 4attachmen1s (1 M8) 2024-07-22[SCVVWater BOARD K4EET|NG.docx; 2024-04'22 Farko Water BOARD MEET|NGdocx; 2024-05'20 Farku Water BOARD MEET|NG.docx; 2024'06'17 Farku Water BOARD K4EET|NG.docx; CAUTION- This email originated outside the State of Idaho network.Verify links and attachments BEFORE you click or open, even if you recognize and/or trust the sender. Contact your agency service desk with any concerns. Travis, Here are our meeting minutes for all Our meetings, | do not have minutes from March, because that is when the new board was voted in and | do not believe that Larry took notes, We still have not signed byi8vvS' \ will work On getting that done 8t our August meeting. Steph8ni On Thu. 4ug 1' 2024 at 1:4OPK4 Travis Culbertson < C�� ' Ilc|]oS L Hope all �uwell. Do you think l can get a copy of the minutes from the March meeting and copy of the signed hv-}av/S? We need to submit compliance filing by August 14to show the Commissioners that the homeowners of the water system have truly taken over the operations and day-to-day functions. The fi[iogis really simple and I will help prep it for submission. I'm happy tn discuss this with anyone over the phone. Thanks, Travis Culbertson Auditor [dubo Public LJd|itiesConmoniSsioo i (}: 208-334-0375 From:Travis Culbertson« QuI.iIaho.0ov> Sent: Monday,July I2' IO243:4DPK4 To:Stephani Kier<ste Q��8��l�� Danie|Va|dez« Q0�iicoID>; k8arte[e||ura ; Brenny Ross< >; Nick Pignutb <Y��@iQE�11k@Q��O2��]ohnKuba ��J��4�/��ii�g�!�� [odyFneer� Q��'col�> Cc:Jim Williamson jdaho'Qgv>; Dion Holton < > Subject: Re: UPDATE: Cedar Springs Community Water dba Farhn Water Hello everyone, Dio exciting to see things moving in the right direction. l hzzovvvvc are excited atthe Idaho Public Utilities Comumiomiou("}xl]C") for this ucvva you have shared. Just accoobmder, FuckoWatcr 8yoh:ous is aregulated utility in the State ofIdaho. To become unregulated, Farko had to file an Application to request to become httpo:xout|oox.mffioa.00m/mai0nbox/mA*\MkADovN|dxwTvzOc3wvv|twGuxNc1|0TkzmvF|Mz|uv]xxxMEv0aoGAAw**\AwonpeSxycSqYpxpvQox|... 1/3 8/6/24,8:49 AM Mail-Travis Culbertson-Outlook unregulated. Staff supported the position for the water company to become unregulated. On July 15, 2024, the Commission issued an Order if it no longer falls under the PUC's jurisdiction. It did not explicitly do as such. Instead the PUC is asking for some documents to be filed. See attached. For this reason I am responding to this email. The Commission essentially says to become unregulated Farko Water System needs to submit a compliance filing within 30 days. The two items that need to be submitted by August 14 are 1) a copy of the by-laws that are signed by the new board, and 2) a signed copy of the minutes when a new board was voted in. If the two items are readily available, I can help you submit them and we can move on and be done. However, if the by-laws have not been signed, is there a plan or an expectation they could be signed by August 14? Regarding the meeting when a new board was voted in, were there minutes taken? If so, are they signed? If no minutes taken, I believe we took some notes and could possibly help with this, as long as they can be signed. I know this email sounds like a lot, but I am here to work through this with you. If questions, I am available by email or we can setup a time to discuss this. If you are still having a board meeting tonight, I am happy to call in and discuss this as well. Thanks, Travis Culbertson Auditor 3 Idaho Public Utilities Commission O: 208-334-0375 From: Stephani Kier<stephani.kierra?gmail.com> Sent: Wednesday,July 10, 2024 6:43 PM To:Stephani Kier<stephani.kier@gmail.com>; Daniel Valdez<daniel.b.valdezC«?gmail.com>; Marte Cellura <metalmarte@ proton mail.com>; Brenny Ross<brenn bcrlandservices.com>; Nick Pignotti <Nickjpign_i@gmail.com>;John Kuba <kuba549@gmail.com>; Cody Freer<cocl kel1323@gmail.com> Cc:Travis Culbertson <Travis.Culbertson(auc.idaho.gov>;Jim Williamson <Jim.Williamson@deq.idaho.gov>; Dion Holton <dholton idahoruralwater.com> Subject: UPDATE: Cedar Springs Community Water dba Farko Water CAUTION: This email originated outside the State of Idaho network.Verify links and attachments BEFORE you click or open, even if you recognize and/or trust the sender. Contact your agency service desk with any concerns. Hi all, I wanted to provide a quick update to everyone prior to our next board meeting on 7/22/24, We are currently active with the Idaho Secretary of State under Cedar Springs Community Water. I have secured an EIN and started the application to be considered Tax Exempt with the IRS. I spoke with Larry and he is going to write a $200 check so that we have funds to open our own bank account. He will continue to oversee our water system as the licensed operator, but understandably will need us to take over all expenses. He will write a check for the remaining balance at the end of the month after ensuring he has any outstanding expenses covered. Attachment B Case No.PTE-W-24-01 Decision Meeting August 13,2024 https:Houtlook.office.com/mail/inbox/id/AAMkADcwNjdhNTY2LTc3NWItNGUxNCl iOTkzLWFIMzl2YjkxMjExOABGAAAAAAANfmp2SxyCSgYpxpvQDKI... 2/3 8/6/24,8:49 AM Mail-Travis Culbertson-Outlook If the board is in agreement, I would like to signup for Quickbooks and have automated billing set up ASAP (funds are currently scarce, and board members have been personally taking on expenses). Please send reply to this email with your vote. If approved, I will work with Nick and Brenny to try to get this set up prior to our next board meeting. At this time, we still need the following: 1.) D&O Insurance to be active 2.) Legal council for changes to our bylaws Stephani Stephani Attachment B Case No. PTE-W-24-01 Decision Meeting August 13, 2024 hftps:l/outlook.office.com/mail/inbox/id/AAMkADcwNjdhNTY2LTc3NWItNGUxNCl iOTkzLWFIMzl2YjkxMjExOABGAAAAAAANfmp2SxyCSqYpxpvQDKI... 3/3 Farko Water BOARD MEETING 04/24 22 APRIL 2024 / 5:00 PM / SILVER REEF RD, SAGLE, ID ATTENDEES Present Cody Freer, John Kuba, Stephani Blackburn, Nick Pignotti , Brenny Ross, Marte Cellura, Absent Daniel Valdez Guests N/A ORDER OF BUSINESS Unfinished Business 1. N/A New Business • Top priority is risk liability mitigation (do not sign bylaws until new ones are ready to be immediately signed into effect, add clause about liability, board members covered by insurance) • Review and revise bylaws • IRWA will provide instruction to properly set up the new Nonprofit (new name, EIN, recorded with the Idaho Secretary of State, Federal taxes, IPUC, Title Companies) • 3 in favor of new nonprofit name: Cedar Springs Community Water • Bank account benefits to be discussed: o Quickbooks online banking o Mountain West o P1FCU • Structure of meetings moving forward: board members will present agenda items, to be added they will require someone second adding to the Action Items 1. Board members will review and add comments to Bylaws prior to submitting to IRWA legal council to finalize new bylaws. 2. Nonprofit will be set up properly with guidance from IRWA. 3. Vote on which bank to open with CLOSING We will hold the next board meeting on: 5/20/24 at 5:00pm on Pristine View Dr. , Sagle, ID The meeting ended at: 6:37pm Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment B Case No.PTE-W-24-01 Decision Meeting August 13,2024 Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment B Case No. PTE-W-24-01 Decision Meeting August 13,2024 Cedar Springs Community Water dba Farko Water BOARD MEETING 05/24 20 MAY 2024 / 5:00 PM / PRISTINE VIEW DR, SAGE, ID ATTENDEES Present Cody Freer, John Kuba, Stephani Blackburn, Nick Pignotti, Marte Cellura, Daniel Valdez, Brenny Ross Absent N/A Guests Dion Holton (IRWA) ORDER OF BUSINESS Unfinished Business 1. Nonprofit Status 2. Banking Options 3. Board Member Insurance 4. Bylaw legal review and ETA for voting Bylaws into effect New Business • Lead testing site locations • April 2024 monthly operating report • Water members interested in getting involved • Apply for water rights once new entity established • IRWA board training online Action Items 1. Secure board insurance, all in favor of giving authority to treasury to obtain 2. Push bylaws through to IRWA legal 3. Contact GIS to establish a physical address for the pumphouse 4. Secure samples from 5 sites for lead/copper (2 clear results in a year) CLOSING We will hold the next board meeting on: 6/17/24 at 5:30pm on Silver Reef Rd. The meeting ended at: 6:18pm Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment B Case No.PTE-W-24-01 Decision Meeting August 13,2024 Cedar Springs Community Water dba Farko Water MEETING BD ARD 06/24 17 JUNE 2024 / 5:30 PM / SILVER REEF RD, SAGLE, ID ATTENDEES Present Cody Freer, John Kuba, Stephani Blackburn, Nick Pignotti, Daniel Valdez, Brenny Ross (virtual) Absent Marte Cellura Guests Dion Holton (IRWA) , Jim Williamson (DEQ) ORDER OF BUSINESS Unfinished Business • SeeuFelead testing site '^ a};enr • Secure samples from 5 sites for lead/copper (2 clear results in a year) • 3 of 5 returned (waiting on Dustin and Brian) • April 2024 monthly operating report (Monthly Chlorination Report) • Water members interested in getting involved (temp deprioritized) • Gentaet—GIs to-establ i sh a physieal addFess f e r the pumpheuse • Secure board insurance (general liability for the board, D&O insurance $1,000-$1,200 annual) Insurance is 2 weeks from completion of paperwork • Banking - Mountain West (6 votes in favor) • Bylaw legal review, board members sign bylaws • Apply for water rights once new entity established (temp deprioritized) • IRWA board training in July (Dion) • Meeting space (TBD) New Business 1. Certification prep (distribution in Post Falls, ID) 2. Aquadrone quote - repairing the tank ($6,000 for everything) Willing to work with a monthly payment (2-5,OOOb gal tanks) . 3. DEQ: Work on deficiencies. Cannot replace anything, only repair until the full facility review by engineer (-$50,000) . Work from CAP. Action • Install mailbox, submit new physical address form to LISPS, set up mail forwarding from Farko PO Box to new address • Apply CSCW to Secretary of State, apply for new EIN with IRS • Set up MountainWest bank account(signers: chair, treasurer & secretary) • Complete forms for insurance • Legal review of bylaws CLOSING Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment Case No. PTE-W-24-01 Decision Meeting August 13,2024 We will hold the next board meeting on: 7/22/24 at 5:30pm on TBD The meeting ended at: 7:05pm Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment Case No.PTE-W-24-01 Decision Meeting August 13,2024 Cedar Springs Community Water dba Farko Water BOARD MEETING 07/24 17 JUNE 2024 / 5:30 PM / CEDAR HILL RD, SAGLE, ID ATTENDEES Present Cody Freer, John Kuba, Stephani Blackburn, Brenny Ross (virtual) , Daniel Valdez Absent Nick Pignotti Guests Dion Holton (IRWA) ORDER OF BUSINESS Unfinished Business • • April 2024 monthly operating report (Monthly Chlorination Report) • Secure board insurance (general liability for the board, D&0 insurance $1,000-$1,200 annual) Insurance is 2 weeks from completion of paperwork • Banking - Mountain West • Bylaw legal review, board members sign bylaws • IRWA board training in July (Dion) New Business 1. New email was set up: cedarspringscommunitywater gmail.com 2. Lead and Copper test results were received and shared electronically and printouts mailed with the individuals at test sites in accordance with DEQ requirements. 3. DEQ requires updates to contacts in the DEQ portal. 4. Invoices will go out 7/31/24 both electronically and physical mailers 5. Newsletter will be sent out with invoices: a. Introduction to board, new entity name, address for billing b. Update on items the board is working on c. Lead/Copper testing results and next steps. 6. Mailbox keys will reside with Secretary (Stephani) , Chair (Cody) and Treasurer (Brenny) 7. Review water system, receive keys from Larry (attendees: Larry, Eric & Dion (IRWA) , Cody (CSCW) (week of 8/11/24) 8. Soft approval from IRWA for Dion to act as licensed operator for CSCW, Dion will provide a firm start date once full approval is provided. 9. EIN secured, and IRS exemption application submitted. Strict rules required for maintaining exemption status, requirements will be reviewed once exemption is granted. Action • Update contacts in DEQ portal. Title Printed Name Signature 1 Chair Cody Freer 2 Secretary Stephani Blackburn Attachment Case No.PTE-W-24-01 Decision Meeting August 13,2024 • Email and mail July invoices • Create newsletter, review and mail with invoices • Identify a new location for monthly chlorination with DEQ. • • Set up mail forwarding from Farko PO Box to new address • Apply GSGW—te SeeFetaFy of State apply feF new EIP! with 1RS • Set up MountainWest bank account (signers: chair, treasurer & secretary) • Set meeting with Larry to review the water system • Complete forms for insurance • Legal review of bylaws • Move Avista bills • Connect with new Silver Reef resident to receive new hookup payment if this has not already been paid. CLOSING We will hold the next board meeting on: 8/19/24 at 5:30pm at Boondocks 88 Westmond Rd, Sagle, ID 83860. The meeting ended at: 6:50pm Title Printed Name Signature 1 Chair Cody Freer Attachment B 2 Secretary Stephani Blackburn Case No.PTE-W-24-01 Decision Meeting August 13,2024