20250121Attachments B-G - Petition for Reconsideration.pdf

RECEIVED
Tuesday, January 14, 2025
IDAHO PUBLIC UTILITIES
COMMISSION
Attachment B
Memorandum of Jeff Merkeley regarding phone
conversation with Pat Eberlein, Commercial RE Broker
On ground lease rental rates
Petition to Reconsider SWS-W-24-01 Page 26 of 36

Memorandum
Date: December 19, 2024
From: Jeff Merkeley
RE: Annual ground lease rates Analysis
I spoke with Pat Eberlein of Kiemle Hagood Commercial RE brokers office
in Coeur d' Alene Idaho this morning on the phone regarding market annual
lease rates for ground in the StoneRidge Golf Community.
Pat suggested the typical analysis is to determine the market value of the
land and use an 8% annual yield on that value to calculate the lease rate.
In StoneRidge the three (3) acre reservoir lake used by the Water Company
for Water Storage the "highest and best use-"would be for development of
Golf Course Front Residential Lots. County zoning allows lot sizes down to
less than 6,000 square feet.
Three acres is 43,560 SF x 3 = 130,680 gross SF. Common area would —'
require approximately 30% or 39,204 feet leaving a net developable lot
area of approximately 91, 476 SF. 91,476 divided by 6,000 sf/lot would
yield approximately 15 residential lots.
Currentlyfull developed residential lots are being bought/sold in
Y P 9
StoneRidge for $125,000 each. The raw land value for the undeveloped
land would be approximately 22% of the finished lot value or $27,500 per
lot.
$27,500 per lot times a lot yield of 15 lots from the 3 acres would be
$412,500 in total raw land value in its current state.
Assuming an 8% annual return rate, the raw land would rent for $37,500
annually or $3,125/monthly.
Petition to Reconsider SWS-W-24-01 Page 27 of 35

Memorandum
Date: December 19, 2024
From: Jeff Merkeley
RE: Annual ground lease rates Analysis
I spoke with Pat Eberlein of Kiemle Hagood Commercial RE brokers office
in Coeur d' Alene Idaho this morning on the phone regarding market annual
lease rates for ground in the StoneRidge Golf Community.
Pat suggested the typical analysis is to determine the market value of the
land and use an 8% annual yield on that value to calculate the lease rate.
In StoneRidge the three (3) acre reservoir lake used by the Water Company
for Water Storage the `highestandbestuse"would be for development of
Golf Course Front Residential Lots. County zoning allows lot sizes down to
less than 6,000 square feet.
Three acres is 43,560 SF x 3 = 130,680 gross SF. Common area would
require approximately 30% or 39,204 feet leaving a net developable lot
area of approximately 91, 476 SF. 91,476 divided by 6,000 sfllot Would
yield approximately 15 residential lots.
Currently fully developed residential lots are being boughtlsold in
StoneRidge for$125,000 each. The raw land value for the undeveloped
land would be approximately 22% of the finished lot value or$27,500 per
lot.
$27,500 per lot times a lot yield of 15 lots from the 3 acres would be
$412,500 in total raw land value in its current state.
Assuming an 8% annual return rate, the raw land would rent for $37,500
annually or$3,1251monthly.
Petition to Reconsider SWS-W-24-01 Page 27 of 35

Attachment G
Insurance Premium Updated Quote
Petition to Reconsider SWS-W-24-01 rage 28 of 35

[e-mail]
From: Scott Kanemoto <[e-mail]>
Sent: Friday, December 20,2024 1.47 PM
To: [e-mail]
Cc: Ashley Lehi
Subject: Water Treatment Premium
Chan,
If we take the total premium on the property and allocated the proportionate share of property coverage to the water
treatment buildings plus the general liability premium,the annual premium is$8,605.
Let me know if you need anything else.
Thanks,
Scott Kanemoto,CIC
Vice President I Broker
skanemoto crestins.com I crestins.com
c.[phone] I d.[phone] I f.[phone]
275 S.Main St.,Suite 100 1 Longmont, CO 80501
2000 S.Colorado Blvd.,Suite 11100 1 Denver,CO 80222
CREST
Click here to upload files.
CA dba Crest Insurance Agency I License#OM96244
CONFIDENTIALITY NOTICE The information contained in this communication, including attachments is
privileged and confidential. It is intended only for the exclusive use of the addressee. if the reader of this
message is not the intended recipient, or the employee or agent responsible for delivering it to the intended
recipient, you are hereby notified that any dissemination,distribution or copying of this communication is
strictly prohibited. if you have received this communication in error, please notify us by telephone
immediately.Thank you.
i

[e-mail]
Prom: Scott Kanemoto <[e-mail]>
Sent: Friday, December 20,20241.47 PM
To: [e-mail]
Cc: Ashley Lehi
Subject Water Treatment Premium
Chan,
If we take the total premium on the property and allocated the proportionate share of property coverage to the water
treatment buildings Pius the general liability premium,the annual premium is$8,605.
Let me know if you need anything else.
Thanks,
Scott Kanemoto,cic
Vice President [ Broker
skanernotogcrestins com , crestins.Com
c. [phone] l d.[phone] 1 f.[phone]
275 S.Main St.,Suite 100 j Longmont,CO 80501
2000 S.Colorado Blvd.,Suite 11lo0 I Denver,CO 80222
CREST
Click here to upload files.
CA dba Crest Insurance Agency ( License#0M96244
CONFIDENTIALITY NOTICE The information contained in this communication, including attachments is
privileged and confidential. It is intended only for the exclusive use of the addressee. If the reader of this
message is not the intended recipient, or the employee or agent responsible for delivering it to the intended
recipient,you are hereby notified that any dissemination,distribution or copying of this communication is
strictly prohibited. If you have received this communication in error, please notify us by telephone
immediately.Thank you.
i

Attachment D
InMrity Management 2024 Invoice Analysis
Integrity 2024 Contract Expense
JGM
12-Dec-24
2024
Month Invoice Amt.
April $ 3,765.24
May 4,521.52
June 3,552.93
July 4,415.53
August 4,826.89
September 4,375.71
October 3,573.70
November 3,581.07
Total 8 Months $32,612.59
Monthly Average for 8 months $ 4,076.57
Annualized Amount $48,918.89
Petition to Reconsider SWS-W-24-01 Page 20 of 35

Copies of Inte ri 2024 Water Invoices
Petition to Reconsider SWS-W-24-01 Page 30 of 35

Integrity Water Management kwke No. STRW 1120
PO 13ox 468
Athol,ID 83801
[phone] fax[phone]
IN VOICE
Witmer
Name Stoneridge Utilities Date 4/30/24
Address 364 Stoned Road
City Blanchard State ID ZIP 83804
Phone
Qi4yr DesaW&n lkit Price TOTAL
1 Water System Management Services in April, 2024. $3,500.00 $3,500.00
2 2 hrs: After hrs turnoff @ customer's request, 127 Skyline,4/17. $75.00 $150.00
8 8 miles for system services from 4/1 to 8.* $0.67 $5.36
18 18 miles for system services from 4/7 to 13. $0.67 $12.06
t 53 53 miles for services from 4/14 to 20. $0.67 $35.51
83 83 miles for services from 4/21 to 27.** $0.67 $55.61
10 10 miles for services fron 4/28 to 30. $0.67 $6.70
*Note that mileage is not billed for routine travel to and from
Stoneridge system during normal business hours.
**Includes pressure loss construction sample lab run to CDA.
$3,765.24
Payment Details m .$0.00
0 Cash
Check
0 TOTAL $3,765.24
Due by the 10th of the following month.
Balances over 30 da s will incur finance Office Use Only
cha s of 1%per month.
Note that any mileage rs bihed at the IRS approved rate of 67 cents per mile.
-r.

Integrity Water Management krmlce No. STRW524 -,_,,,
PO Box 468
Athol,ID 83801
[phone] fax[phone]
IN VOICE
Custtmer
Name Stoneridge Utilities Date 5/31/24
Address 364 Stoneridge_Road
City Blanchard State ID ZIP 83804
Phone
Desertion tlrit Prim TOTAL
1 Water System Management Services in May, 2024, $3,500.00 $3,50600
1 Turn on service @ customer's request, 48 Ironwood,on 5/2. $100.00 $100.00
1 Turn on service @ customer's request, 108 Ironwood, on 5/2. $100.00 $100.00
1 2 2 hrs:After hours emergency, main booster pumps failure, 5/4. $75.00 $150.00
1 Shutoff service @ 53 Lakeview on 5/22. $100.00 $100.00
1 Shutoff service @ 155 Skyline on 5/22. $100.00 $100.00
1 Turn on service @ 155 Skyline on 5/23. $100.00 $100.00
1 Turn on service @ customer's request, 84 Bunker, on 5/20. $100.00 $100.00
1 Turn on service @ customer's request, 946 Chatwald, on 5/30. $100.00 $100.00
i 140 140 miles for services from 5/1 to 11.** $0.67 $93.80
24 24 miles for services from 5/12 to 18. $0.67 $16.08
70 70 miles for services from 5/19 to 25.** $0.67 $46.90
i 22 22 miles for services from 5/26 to 31. $0.67 $14.74
*Note that mileage is not billed for routine travel to and from
Stoneridge system during normal business hours.
**Includes lab run for construction samples, after hours booster
pum failure&readin meters.
$4,521.52
Payment Details ...$0.00
0 Cash
Check
0 TOTAL $4,521.52
Due by the 10th of the followin month.
Balances over 30 da s will incur finance Office Use Only
charges of 1%per month.
Note that any mileage is billed at the IRS approved rate of 67 cents Fier mile,

Integrity Water Management Im imNo. STRW 624
PO Sox468
Athol,ID 83801
[phone] fax[phone]
IN VOICE
custmim
Name Stoneridge Utilities Date 6/29/24 �
Address 364 Stoneridge Road
City Blanchard State ID ZIP 83804
Phone
Qty Desrip,thn Lk t Ptles TOTAL
1 Water System Management Services in June, 2024. $3,500.00 $3,500.00
17 17 miles for services from 6/1 to 8. $0.67 $11.39
11 11 miles for services from 6/9 to 1 S. $0.67 $7.37
35 35 miles for services from 6/16 to 22. $0.67 $23.45
16 16 miles for services from 6/23 to 29. $0.67 $10.72
a
1
l
i
i
*dote that mileage is not billed for routine travel to and from
Stoneridge system during normal business hours.
t
x
$3,552.93
Cner Payit Details . . �$0.00
0 Cash
Check
TOTAL $3,552.93
Due by the 10th of the following month.
Balances over 30 da s will incur finance Office Use Only
charges of 1%per month.
Note that any mileage is billed at the IRS appmved rate of 67 cents permile.

Integrity Water Management rmteNo. STRW724 -WWI
PO Box468
Athol,ID 83801
[phone] fax[phone]
#/1M Y1r//ir►
Customer --- -
Name Stoneridge Utilities Date 7/31/24
Address 364 Stoneridge Road
City Blanchard State ID ZIP 83804
Phone
Qty Dwirtp bn U*Prim TOTAL
1 Water System Management Services in July, 2024. $3,500.00 $3,500.00
4 4 hrs:After hours power outage, reset pumps,fill reservoirs, 7/8. $75.00 $300.00
5 5 hrs:After hours power outage,well#2 failure on 7/21. $75.00 $375.00
19 19 miles for services from 7/1 to 6. $0.67 $12.73
107 107 miles for services from 7/7 to 13. $0.67 $71.69
43 43 miles for services from 7/14 to 20. $0.67 $28.81
162 162 miles for services from 7/21 to 27. $0.67 $108.54
28 28 miles for services from 7/28 to 31. $0.67 $18.76
i
i
*Note that mileage is not billed for routine travel to and from
1 Stoneridge system during normal business hours.
L=
$4,415.53
Payment Details $0.00
0 Cash
Check
0 TOTAL $4,415.53
Due by the 10th of the following month.
Balances over 30 da s will incur finance Office Use Only
charges of 1%per month.
,vote that any rrrrleage&,6i/!ad at the/RS appraved rate of 67 cents per RAM

Integrity Water Management inwbeNo. STRW824
PO Box468
Athol,ID 83801
[phone] fax[phone]
/AWOM
(ustorner
Name Stoneridge Utilities Date 8/31/24
Address 364 Stoneridge Road
City Blanchard State ID ZiP 83804
Phone
Qey Dsscrkt[bn urdt Price TOTAL
1 Water System Management Services in August, 2024. $3,500.00 $3,500.00
2 2 hrs:After hairs Well#2 failure on 8/4. $75.00 $150.00
3 3 hrs:After hours meter break @144 Homstead Rd(caused by $75.00 $225.00
customer)on 8/10. +
2 2 hrs: 2nd meter break caused by same customer @ 144 $50.00 $100.00
Homestead on 8/12.
5 5 after hours:Meter break&temporary repair west of 178 $75.00 $375.00
Lakeview(NOT customer caused)on 8/17.
2 2 after hours: Post DEQ required pressure loss notices within 24 $75.00 $150.00
hours on all Lakeview properties on 8/1 B.
36 36 miles for services from 8/1 to 3. $0.67 $24.12 z
117 117 miles for services from 8/4 to 10. $0.67 $78.39
# 131 131 miles for services from 8/11 to 17. $0.67 $87.77
172 172 miles for services from 8/18 to 24. $0.67 $115.24
i 13 13 miles for services from 8/25 to 31. $0.67 $8.71
1 Harvest Foods/Ace Hardware for meter repair parts on 8/12. $12.66 $12.66
$4,826.89
Payment Details . . ... $0.00-
Q Cash
4$ Check
0 TOTAL $4,826.89
Due by the 10th of the foHowi month.
Balances over,30 days,will incur finance Office Use Only
charges of 1%per month.
Note that any mileage is holed at the fRSapvrovedrate of&T cents permile.

Integrity Water Management bmice No. STRW924 �.
PO 8ox468
Athol,ID 83801
[phone] fax[phone]
Customer
Name Stoneridge Utilities Date 9/30/24
Address 364 Stoneridge Road
City Blanchard State ID ZIP 83804
Phone
QtY elan Ulft Ptbe TOTAL
f 1 Water System Management Services in September, 2024. $3,500.00 $3,500.00
1 86 Ironwood turnoff on 9/27. $100.00 $100.00
1 Greensides irrigation meter turnoff on 9/27. $100.00 $100.00
1 Vineyards irrigation meter, building#5 turnoff on 9/30. $100.00 $100.00
1 15 Fairway turnoff on 9/30. $100.00 $100.00
i 1 14 Fairway turnoff on 9/30. $100.00 $100.00
1 Vineyards irrigation meter#3 turnoff on 9/30. $100.00 $100.00
x 1 Vineyards meter,between buildings 4& 5 turnoff on 9/30. $100.00 $100.00
1 Vineyards meter, between buildings 1 & 2 tumoff on 9/30. $100.00 $100.00
21 Z1 miles for services from 9/1 to 7. $0.67 $14.07
15 15 miles for services from 9/8 to 14. $0.67 $10.05
52 52 miles for services from 9/15 to 22. $0.67 $34.84
25 25 miles for services from 9/23 to 30. $0.67 $16.75
i
i
$4,375.71
Payment Details »... . $0.00'
0 Cash
Check
0 TOTAL $4,375.71
Due by the 10t1h of the following month.
Balances over 30 da s will incur finance Office Use Only
chaos of 1%per month.
Note that any mileage is Idled at the IRSapMved rate of 67 cents per vn&

Integrity Water Management liwice No. srnw 1024
PO Box 468
Athol,ID 83801
[phone] fax[phone]
INVOICE LU
Customs el
Name _Stoneridge_Utilities Date 10/31/24
Address 364 Stoneridge Road
City Blanchard State ID ZIP 83804
Phoneµ
Qqr DwrIption lkit Plrlcs TOTAL
1 Water System Management Services in October, 2024. $3,500.00 $3,500.00 r
5 5 miles for services from 10/1 to 5 $0.67 $3.35
t 21 21 miles for services from 10/6/12. $0.67 $14.07
57 57 miles for services from 10/13 to 19. $0.67 $38.19
22 22 miles for services from 10/20 to 26. $0.67 $14.74
5 5 miles for services from 10/27 to 31. $0.67 $3.35
i
1
's
i
f
$3,573.70
Payment Details $QA0-
0 Cash
4$ Check
0 TOTAL $3,573.7D
Due by the 10th of the following month.
Balances over 30 days will incur finance Office Use Only
cha of 1%per month.
Note that any mr7eage is billed at the/RSarlproved rate of 67 cents per mile.

Integrity Water Management kwolm No. STRW 1124
PO Box468
Athol,ID 83801
[phone] fax[phone]
INVOICE =
Customer
Name Stoneridge Utilities Date 11/30/24
Address 364 Stoneridge Road . .., �.
City Blanchard State ID ZIP 83804
Phone
QtY Docription t1n1i(t Puce TOTAL
1 Water System Management Services in November, 2024. $3,500.00 $3,500.00
21 21 miles for services from 11/1 to 9. $0.67 $14.07
} 24 24 miles for services from 11/10 to 16. $0.67 $16.08
i 62 62 miles for services from 11/17 to 23. $0.67 $41.54
14 14 miles for services from 11/24 to 30. $0.67 $9.38
t
$3,581.07
Payment Detailso.oa'x
Cash
I$ Check
TOTAL $3,581.07
Due by the 10th of the followin month.
Balances over 30 days will incur finance Office Use Only
charges of 1%per.month.
Note that any mileage 6 billed at the 1R5 approved rate or 67 cents permile

Attachment E
Rate Case Cost Amortization
Petition to Reconsider SWS-W-24-01 Page 32 of 35

Petition to Reconsider SWS-W-24-01 Page 31 of 35

{ ' 1
Attachment J
Rate Case Amortization
Exhibit 8 Rate Case Costs Amortization
Company Name:CDS StoneRidge Utilities,LLC
Idaho PUC Case Number;SWS-W-24-01
Test Year ended: 12/31/2023 Monthly
Cost Per Months Total Months to Amortization
Sala %to Case Month to Case Cost Amortize Cost
JGM $ 3,000 309/. $ 900 36 $ 32,400 30 $ 1,080
Becca $ 3,000 106% $ 300 36 $ 10,800 30 $ 360
Total Labor $ 6,000 $ 1,200 $ 43,200 $ 1,440
Other Costs
Mailing Costs $ 1,250 30 $ 42
Publication Costs $ 225 30 $ 8
Total Mail/Publish Costs $ 1,475 $ 49
Total Case Costs 1 $ 44,675 $ 1,489

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Attachment F
Water Right Lease Rates
State of Idaho Water Right Bank
Corrected Petition to Reconsider SWS-W-24-01 Page 35 of 36

Jeffrey Merkeley<[e-mail];
Water Right leasing--any thoughts on what the going rate is?
3 messages
Jeffrey Merkeley<[e-mail]> Tue, Oct 22, 2024 at 1:29 PN
ro: Luke Bates <[e-mail]>
we are working on a lease agreement with our parent company and is see 25.00 to$35.00/acre foot per year on the State Water Bank
pricing web page,would you have any
other places to find the current market information in the Panhandle?
thanks Luke!
Jeff
Jeffrey Merkeley
Technical Assistance Group
208-920-0442
[e-mail]
Sates, Luke<[e-mail]> Tue, Oct 22,2024 at 1:40 PN
ro: Jeffrey Merkeley<[e-mail]>
Mr. Merkeley,
From the Water Supply Bank literature, https://idwr.idaho.gov/iwrb/programs/water-supply-bank/pricing/ , I note FY2024
is$23.00/af and will increase to $33.00/af beginning in 2025.
1 recommend contacting Mary Condon who works directly with the water supply bank to gain particulars.
Board's bark
Mary Condon
(208) 25 -496
Bankcidwr.idaho.gov
Regards,
Luke Bates
Sr. Water Resource Agent
Northern Region
P: 208-762-2817
IDAHO DEPARTMENT Of
WATER RESOURCES

Coeur D'Alene, ID 83815-7763
From:Jeffrey Merkeley<[e-mail]>
Sent:Tuesday, October 22, 20241:30 PM
To: Bates, Luke<[e-mail]>
Subject: Water Right leasing--any thoughts on what the going rate is?
CAUTION: This email originated outside the State of Idaho network.Verifv links and attachments BEFORE you click or
pen, even if you recognize and/or trust the sender. Contact your agency service desk with any concerns.
[Quoted text hidden]
Jeffrey Merkeley<[e-mail]> Tue, Oct 22, 2024 at 3:54 PN
ro:"Bates, Luke"<[e-mail]>
Thanks for the info.
[Quoted text hidden]

Water Rights - Wells - Streams/Dams/Floods - Forms - Water Data - Maps/Spatial Data - Legal - Board -
About IDWR
Water Supply Bank Pricing
The Board establishes the price for renting water rights from their bank. Presently,the Board has established that the price
for water right rentals is$23/af through 2024 and will increase to $33/af beginning in 2025.An applicant may enter into an
agreement with a water right holder to negotiate a rental rate different than the Board's rental rate.Ten percent (10%) of the
gross rental fee will be retained by the Board for administrative costs of operating the Bank.The lessor (usually the water
right holder) will receive ninety percent (90%) of the gross rental fee as payment.There is no fee to submit a rental
application (https://idwr.idaho.gov/form/water-supply-bank/),only a fee once the rental is approved.There is a fee to submit a
Water Supply Bank lease application (https://idwr.idaho.gov/form/water-supply-bank/).
Local rental pool committees set the price,which the Board must approve,for water that can be rented from the rental pools.
This price may be different for each rental pool and can be determined based on the location where the water is to be used.
For additional information, refer to the rental pool procedures listed on the Water Supply Bank's Administration page
(https://idwr.idaho.gov/iwrb/programs/water-supply-bank/administration/).
'6--T-

Attachment G
Non-Recurring Charges Reconnection Fee
31 Days or Greater
Corrected Petition to Reconsider SWS-W-24-01 Page 36 of 36

IDAHO PUBLIC UTILITIES COMMISSION
Sheet 13 Approved Effective
Replacing all Previous Sheets •,
Per O.N.
CDS StoneRidge Utilities Secretary
RATE SCHEDULE
Schedule No. 1
Recurring Charges
Base Monthly Charges by Meter Size
Availability:
To all residential, multi-family, commercial and irrigation customers excluding bulk water sold to
contractors. Each housing unit is considered to be one (1) Equivalent Residential Unit (ERU).
Commercial ERU's will be estimated using a contribution to peak week calculation as can
reasonably be determined from actual usage or as estimated using IDAPA 58.01.03.007.08
(Wastewater Flows from Various Establishments in Gallons per Day), or some other method
approved by the CDS StoneRidge Utilities, LLC, the Idaho Public Utilities Commission and
generally accepted engineering practices. Both the StoneRidge Timeshare Resort and Motor
Coach Village ERU's are currently covered under existing agreements that stipulate the
respective ERUs for their units.
Customer Charges:
Based on the cost of providing water service, and providing a Return on Investment the
minimum monthly charge with no water included are listed below by meter size.
Meter Size Minimum Monthly Commodity Charge Reconnection Charge (1)
.75 $24.00 $87.00 $.79/1 K $2.94/1,000 Gal.(2) $65.00 $50.00
1.00 $24.00 $154.00 $.79/1K $2.94/1,000 Gal. $65.00 $50.00
1.50 $96.00 $347.00 $.79/1 K $2.94/1,000 Gal $260.00 $50.00
2.00 $170.67 $616.00 $.79/1K $2.94/1,000 Gal $462.00 $50.00
2.50 $266.67 $963.00 $.79/1K $2.94/1,000 Gal $722.00 $50.00
3.00 $384.00 $1,386.00 $.79/1 K $2.94/1,000 Gal $1,040.00 $50.00
4.00 $682.67 $2,464.00 $.79/1 K $2.94/1,000 Gal $1,849.00 $50.00
6.00 $1,536.00$5,546.00 $.79/1K $2.94/1,000 Gal $4,160.00 $50.00
Notes
1. Minimum Monthly Rates are based on continuous service-i.e. 12 months per year.
Disconnect transactions (voluntarily or involuntarily) do not relieve the customer from
the obligation to pay the base Monthly Minimum Charge each month during the
disconnect period.
-� Issued by CDS StoneRidge Utilities, LLC
Issued Per IPUC Order No. Chan Karupiah, Managing Member, Director
Effective: P.O. Box 298, Blanchard, ID 83804
[phone]

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