20250422Comment_1.pdf

From: [e-mail] <[e-mail]>
Sent:Tuesday, April 22, 2025 11:50 AM
To: secretary<[e-mail]>
Subject: Case No.: VID-W-25-02; Public Comment
To whom it may concern:
Please find attached the public comment I would like to file in the following matter:
Case Number: VID-W-25-02
Description: TIC UTILITIES--APPLICATION FOR AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO
Thank you for your anticipated cooperation and assistance in this matter. If you have any
questions or concerns, please contact me at my information below.
Sincerely,
Chris
Christopher Norton
346 North Star Ln.
Sandpoint, Idaho 83864
Chris Phone: [phone]
Chris Email: chrisnortoniphone gmail.com

Name: Christopher Norton
Email: chrisnortoniphonekgmail.com
Phone: [phone]
Address: 346 North Star Ln., Sandpoint, Idaho 83864
Re: Case No.: VID-W-25-02
Company: TIC Utilities, LLC
Matter: Application of TIC Utilities, LLC for Authority to Increase its Rates
Case No.: GNR-W-24-01
Company: Valiant Idaho, Inc. and TIC Utilities, LLC
Matter: Investigation into Valiant Idaho, Inc. and TIC Utilities, LLC
To: secretgakpuc.idaho.gov
INTRODUCTION
My wife and I are full time residents of The Idaho Club and have been for over 5 years. Before
we retired, I was educated and employed as an engineer and a lawyer. We began construction on
our home at 346 North Star Ln. beginning in 2019 and moved into our home in early 2020. I was
a member of the Board of Directors of The Idaho Club Homeowners Association from 9/2022
through 5/2024 and served as the chair of a committee formed by the Board of Directors to
investigate the possibility of the Homeowners Association buying the water system at issue in this
matter from Valiant Idaho, Inc. ("Valiant") and TIC Utilities, LLC ("TIC"), hereafter collectively
called "Applicant". During that investigation, the committee members spent hundreds of hours
examining thousands of pages of documents. Through that process,I accumulated far more details
and specifics than the typical resident of The Idaho Club. Accordingly, my response will most
likely be longer and more detailed than other responses that may be filed. My response will address
the following issues:
1. Applicant's request is neither just nor reasonable.
2. Application and attached Exhibits.
a. The Application
b. Rate Base Plant in Service (Applicant's Exhibit 1-Schedules A-C)
c. Revenues, Expenses and Income Statement (Applicant's Exhibit 2-Schedules
A-C)
i. Revenues (Applicant's Exhibit 2-Schedules A)
ii. Expenses (Applicant's Exhibit 2-Schedules B)
iii. Income Statement (Applicant's Exhibit 2-Schedule C)
d. Proposed Tariff Schedule (Applicant's Exhibit 6)
e. Water System Schematic
3. Various rules and regulations that Applicant has violated.
a. Applicant's Violation of Duty of Honesty to the Commission.
b. Applicant's Violation of IPUC Order 36312.
c. Applicant's Violation of Idaho Code § 61-622
d. Applicant's Violation of Idaho Utility Customer Relations Rules
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e. Applicant's Violation of Idaho Fire Code
f. Applicant's Violation of Idaho Rules for Public Drinking Water Systems
4. Applicant's practices, customer relations and retaliatory actions.
5. Request for action by the IPUC.
1. APPLICANT'S REQUEST IS NEITHER JUST NOR REASONABLE
Section 61-622 (5) of the Idaho Public Utility Regulation provides the Idaho Public Utility
Commission("IPUC") shall issue orders approving tariffs that it finds "to be just and reasonable."
An examination of Applicant's filings demonstrates that Applicant's requests are neither. Even if
one assumes the accuracy of the numbers contained in the Application, which I do not and are
addressed in Section 2, Applicant's own numbers demonstrate the gross overreaching of their
request. In their public notice,Applicant states that if their application is granted, its "revenues
would increase by 294%, or $ 249,043.00 per year." In Applicant Exhibit No. 2, Schedule A,
Applicant lists its total revenue in 2024 as $128,0391.An increase of 294%over$128,039 is equal
to $376,434. The public notice also states the revenue would increase to $377,082 ($249,043 +
$128,039). Using the smaller of these numbers and subtracting Applicant's proposed expenses of
$233,936.332 yields a proposed net income of $142,497.67 ($377,082 - $233,936.33). Using
Applicant's proposed Net Income of $142,497.67 and Applicant's Total Rate Base of
$605,400.753, yields a Return on Capital of 23.5% ($142,497.67/$605,400.75). This proposed
Rate of Return is neither just nor reasonable.
As more thoroughly discussed in Section 2(d) below, Applicant's proposed tariffs are 300% to
500%of the average of the 18 tariffs approved by the IPUC during the last 3 years. Moreover,the
charge per gallon requested by Applicant is more than 500% of the average cost approved by the
IPUC over the last 3 years and 250%of the highest amount ever approved by the IPUC during the
last three years.
2. THE APPLICATION AND ATTACHED EXHIBITS
(a) The Application
On the first page of its application, Applicant asserts that it "provides water service to 317
residential customers". The water service to The Idaho Club is the same water service that
Applicant was providing when Applicant attempted to sell the water system to Gem State Water
Company, LLC ("Gem State"). Gem State filed an application for approval to buy the water
system from Applicant (Case No. GSW-W-23-01) on February 6, 2023. In its application, Gem
State represented to the IPUC that "The Selling Parties [Applicant] own a water supply and
distribution system that serves approximately 148 residential customers in or near Bonner County,
Idaho. The area currently served by the Selling Parties [Applicant] is in the general vicinity as the
territory served by Gem State Water...The Selling Parties [Applicant] serve a development
' Line 12,Exhibit No.2,Schedule A.
2 Line 21,Exhibit No.2,Schedule B.
s Line 11,Exhibit No. 1,Schedule C.
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sometimes known as The Idaho Club 4." Granted, there have been a handful of new homes that
have been completed since February of 2023, but the number of customers has not doubled.
I submit the reason Applicant has stated that it has 317 residential customers is an attempt to avoid
the presumption of contributed Capital (Rule 103 of 31.36.01 — Policies and Presumptions for
Small Water Companies) that the IPUC has already held applies to the water system that is the
subject matter of this Case.
(b) Rate Base Plant in Service (Applicant's Exhibit 1-Schedules A-C)
Rule 103 of IDAPA 31.36.01 entitled PRESUMPTION OF CONTRIBUTED CAPITAL (RULE
103)provides"In issuing certificates for a small water company or in setting rates for a small water
company, it will be presumed that the capital investment in plant associated with the system is
contributed capital, i.e.,that this capital investment will be excluded from rate base." Rule 101 of
IDAPA 31.36.01 defines a small water company as a company having gross revenue of less than
$50,000 or it"Provide[s] service to fewer than three hundred(300) customers or propose initially
to provide service to fewer than three hundred (300) customers." The term Customer is further
defined in IDAPA 31.21.01.005.02 as "Customer. Unless restricted by definition within a rule or
group of rules to a particular class of customer, "customer"means any person who has applied for,
has been accepted by the utility, and is: a. Receiving service from a utility; or b. Has received
service within the past ten(10) calendar days prior to termination by the utility; or c. Has assumed
responsibility for payment of service provided to another or others."
I believe there are approximately 148 (the number represented by Gem State) customers in the
water system involved in this Case. There is nothing close to the 317 customers suggested by
Applicant. The IPUC should conduct an audit of the 317 purported "customers" cited by
Applicant, and determine how many qualify as customers, as defined by IDAPA 31.21.01.005.02.
I submit that the actual number will be approximately half of the 317 identified by Applicant, and
that Applicant simply misrepresented the actual number to the IPUC.
Why is this significant? The issues of small water company's contributed capital and Applicant's
recovery of its development cost through the sale of lots has already been decided. In Order No.
35971, the IPUC found that the water system involved in this case was a small water system, that
"the evidence in the record does not show that the Selling Parties [Applicant] or any other entity
involved in the construction of the water system have not recovered the cost of this endeavor
through the sale of lots in the area that it serves", "that Gem State has failed to overcome the
presumption of contributed capital under IDAPA 31.36.01.102" and "[c]onsequently, all current
plant-in-service of the Selling Parties' [Applicant's] water system shall be excluded from rate
base.""
Applicant is unhappy with IPUC's Order No. 35971 and simply wants to relitigate these issues.
However, Page 8 of ORDER NO. 35971 provided "Any person interested in this Order may
petition for reconsideration within twenty-one (21) days of the service date of this Order. Within
4 Page 3,Application for approval to acquire the assets of the Water Business of Valiant Idaho,Case No.GSW-W-
23-01
e Order No.35971,Pages 6 and 7.
Page 3 of 21

seven (7) days after any person has petitioned for reconsideration, any other person may cross-
petition for reconsideration. See Idaho Code § 61-626." As the Selling Parties in that case,
Applicant clearly was interested in that Order and could have petitioned for reconsideration.
Having failed to do so,they are attempting to collaterally attack the Order in violation of Rule 61-
625 (Title 61 Chapter 6, Procedure before Commission and in Courts).
At line 29 of Applicant Exhibit No. 1, Schedule A, Applicant lists Total Plant in Service as
$1,052,051.75. Applicant does not list nor provide the receipts for any of the items described.
However, from Applicant's descriptions of the items (Wells, Purification Systems, etc.), it appears
these are the identical items identified by Gem State in the approximately 90 pages of invoices
submitted by Gem State in its Reply to the Comments of the Commission Staff and Supplemental
Invoices to Gem State's Reply Comments to the Commission Staff filed in Case No. GSW-W-23-
01 (filed on July 6, 2023 and July 10, 2023 respectively). Again, these investments have already
been reviewed by the IPUC and the IPUC has determined these expenses were recovered through
Applicant's sale of lots.
The only significant expenses that were most likely not included in Gem State's filings are the
costs incurred by Applicant in its attempt to correct its violation of IDAPA Department of
Environmental Quality, 58.01.08 Idaho Rules for Public Drinking Water Systems regarding
minimum pressure for distribution systems. This violation will be discussed in greater detail in
Section 3(f)Applicant's Violation of Idaho Rules for Public Drinking Water Systems. The costs
of installing the pumping station at the top of Moose Mountain should not be included in the rate
base because those expenses were incurred to bring Applicant in compliance with the law after it
has been in violation for many years. Moreover, the Applicant has already recovered those costs
through the sale of lots in The Idaho Club.
To investigate the actual Total Plant in Service, I would suggest the IPUC obtain and examine the
invoices used to support Applicant's claim for its Total Plant in Service. The IPUC could determine
whether these expenses were incurred by Applicant or an affiliated entity, whether they were
previously included in the invoices submitted by Gem State in Case No. GSW-W-23-01, and
whether they were subject to the IPUC's prior ruling that Applicant had already "recovered the
cost of this endeavor through the sale of lots in the area that it serves".
Finally, if there is any question as to whether Applicant has recovered their cost through the sale
of lots, the IPUC can easily determine this through a request for production of documents. Valiant
acquired The Idaho Club real property and assets in 2014 when Valiant acquired the property
through a tax sale. On July 7,2014,Valiant acquired"the real property subject to the County's tax
deeds for a payment of$1,665,855.14.In exchange for this payment Valiant received a Redemption
Deed from the County that was recorded on July 8, 2014." See,Valiant Idaho, LLC vs. JV L.L.C,
Supreme Court of Idaho, Docket No. 44584, 2018, Page 2. Since that time, Applicant has sold
130 properties located in The Idaho Club. A complete list of the properties sold by Valiant Idaho
LLC through warranty deeds was exported from the Bonner County Clerk's website
(https:Herecorderpublic.bonnercountyid.gov/bonnerweb/search/DOCSEARCH98S5), and is
attached as Norton Exhibit 1. The list contained in Norton Exhibit 1 does not contain properties
given by quit claim deed or easements. If there is any question as to whether Applicant has
"recovered the cost of this endeavor through the sale of lots in the area that it serves",then a request
Page 4 of 21

for document production sent to Applicant for the sales contract and price for each lot included in
Norton Exhibit 1 would determine the total value recovered by Applicant through the sale of lots.
With regard to the costs associated with installing the pumping station at the top of Moose
Mountain (the area which is serviced by this pumping station), these lots are some of the most
expensive in The Idaho Club and Applicant has already sold most of these lots and the sales
documents should show that Applicant has already recovered significantly more than the costs
incurred to comply with the IDAPA 58.01.08 Idaho Rules for Public Drinking Water Systems
regarding minimum pressure for distribution systems. It would be the antithesis of the law
requiring pressurized drinking water systems for Applicant to suggest that it can sell lots which do
not comply with the drinking water pressure requirements of IDAPA 58.01.08, and when years
later, it finally installs a pumping station to comply with minimum water pressure, that Applicant
gets to assert those expenses should be considered additional Plant in Service. Finally,Applicant
has pending an application to develop and sell lots at the very top of Moose Mountain. The sale
of these lots will provide additional funds over and above the cost already recovered for installing
the pumping station through the sale of lots.
In addition to selling residential lots,Applicant also owns and operates The Idaho Club golf course,
restaurant and related facilities. How many of the purported Rate Base Plant in Service expenses
were incurred for the benefit of The Idaho Club golf course? On Applicant's Exhibit No. 1,
Schedule C between lines 10 and 11, Applicant states the "ADJUSTMENT FOR NON-
DEVELOPER PROPERTIES" is 76.97%. The IPUC should examine what this figure includes
and how it was calculated. The IPUC can then determine how much of the plant in service was
incurred for the benefit of the golf course, how much of the annual expenses should be included
as golf course expenses rather than water company expenses,and what revenue the water company
should receive from the golf course and related facilities for water that Applicant provides to the
golf course and related facilities.
(c) Revenues, Expenses and Income Statement(Applicant's Exhibit 2-Schedules A-C)
i. Revenues (Applicant's Exhibit 2-Schedules A)
When the independent Board of Directors of the Idaho Club HOA and the water system acquisition
committee were looking at the possibility of the HOA acquiring the water system,one of the issues
we looked at was what revenue would be generated by the sale of water to The Idaho Club Golf
course and its related services if the HOA owned the water system. Likewise, what expenses
would be incurred by the HOA to service only The Idaho Club golf course and related services?
Unfortunately, we never got this information because Applicant refused to provide the committee
with the information we requested as part of our due diligence investigation. This will be discussed
later in Section 4.
Nowhere in the application does Applicant indicate how many gallons The Idaho Club Golf course
uses on an annual basis. Nor does it identify in Applicant Exhibit No. 2-Schedule A the revenue
that will be obtained from The Idaho Club Golf course(Line 3 ofApplicant Exhibit No.2-Schedule
A is left blank). Likewise,how many of the expenses identified in Applicant's Exhibit 2-Schedule
B are associated with The Idaho Club Golf course and its related facilities?
Page 5 of 21

On Applicant's Exhibit No. 1, Schedule C,Applicant indicates the "ADJUSTMENT FOR NON-
DEVELOPER PROPERTIES" is 76.97%. If 23.03% (100% - 76.97%) is associated with non-
developer properties, then clearly there should be some accounting for the revenues and expenses
associated with the 23.03%of non-developer properties. The IPUC should conduct an audit of the
costs associated with these non-developer properties to determine the amount of non-developer
properties, and what amount should be removed from line 21 of the Pro-Forma Expenses in
Applicant's Exhibit No. 2-Schedule B.
Applicant's Pro Forma revenue, expenses and income statement are purportedly based upon the
2024 actual results. When the independent board members and the water system acquisition
committee looked at the possibility of purchasing the water and sewer systems, Applicant
presented the board and committee with a Summary of Proposed Sale of Water& Sewer Systems
at The Idaho Club ("Applicant's Proposal to HOA") that was purportedly based upon the actual
2023 numbers and Pro Forma 2024 numbers. A copy of the proposal from Applicant is attached
as Norton Exhibit 2.
In Applicant's Exhibit 2-Schedule A, it states the actual Total Revenue in 2024 was only$128,039
and the Pro Forma revenue going forward will be only $128,039 (See line 12). In contrast, in the
Applicant's Proposal to HOA, the actual revenue for water service for 2023 was $154,967.11 and
the Pro Forma revenue for water service for 2024 was $170,000. How could the revenue drop in
2024 from $170,000 to only $128,039 (over $40,000 or roughly 25 percent)? The answer is
simple-Applicant collected only 9 months of water revenue rather than 12 months. In 2023 and
the first 6 months of 2024, Gem State collected the water payments for Applicant under an
Operations Agreement. See footnote (2) on page 5 of the Applicant's Proposal to HOA attached
as Norton Exhibit 2. This is consistent with the customer's experience. As customers, we had to
mail our water payment checks to Gem State. Gem State billed in advance so that an invoice
would be sent in January for the future months of January, February and March. See attached
Norton Exhibit 3.
In the third quarter of 2024, Panhandle Management, Inc. took over the invoicing for Applicant.
In contrast to the advance billing of Gem State, Panhandle Management billed in arrears so an
invoice for July,August and September was not mailed out until September 30,2024. See attached
Norton Exhibit 4. Similarly,the invoice covering the 4th quarter of 2024 (October,November and
December)was mailed out on December 31,2024. See Norton Exhibit 5. IfApplicant uses accrual
accounting methods, these 4th quarter invoices should have been included in the 2024 revenue
statement. If Applicant uses cash accounting method, Applicant will only show it collected 9
months of revenues or 75% of the 2024 anticipated revenue. The use of a cash accounting method
would explain the dramatic drop in revenue listed on Line 12 of Applicant's Exhibit 2-Schedule A
($128,039.00). This $128,039.00 amount matches the Pro Forma revenue on page 5 of Applicant's
Proposal to HOA(Norton Exhibit 2) if one includes only 9 months of revenue6.
6 75%of the$170,000 contained on page 5 of the Pro Form on Applicant's Proposal to HOA(Exhibit 2)is$127,500,
which is nearly identical to the$128,039 listed at actual revenue collected in 2024 on Line 12 of Applicant's Exhibit
No.2-Schedule A.
Page 6 of 21

Whether Applicant uses accrual or cash accounting methods is an issue for the IPUC to determine.
However, if Applicant uses an accrual accounting method (as required by most utilities) and was
required to include the 12 months of invoices that were billed, yet reported only 9 months of
revenue to the IPUC when it billed for 12 months, such action would not be truthful, and I would
leave it in the IPUC's discretion to determine if it was willful. On the other hand,if Applicant uses
a cash accounting method, it is at a minimum misleading to suggest that Applicant will only collect
9 months of revenue going forward in its Pro Forma revenue projections. In doing its analysis,the
IPUC should increase Applicant's Pro Forma revenue to include 12 months of revenue.
In addition to failing to report 12 months of revenue in its Pro Forma projection of revenue,
Applicant collected revenue from customer water payments which it has not reported. When
Applicant did not send out invoices at the beginning of the 3rd quarter of 2024, I and several other
customers have our personal bill payment systems set up to automatically pay invoices.
Accordingly, I and others mailed our 3rd quarter payment to Gem State in July of 2024. Gem State
received the checks but did not process them. Rather, Gem State gathered the checks, noted that
the checks had been received, and handed the checks over to Applicant for processing. See email
from Leslie Abrams-Rayner General Manager of Gem State marked as Norton Exhibit 6. The
checks were received by Applicant, endorsed and deposited by Mr. Haberman. After receiving the
3rd Quarter invoice from Panhandle Management which failed to acknowledge my payment
(Norton Exhibit 4), I sent an email to Tom Curtiss at Panhandle Management explaining that I had
already made all payments to date for 2024. I included copies of the cashed checks and pointed
out that Mr. Haberman had personally endorsed my 3rd Quarter payment. See attached Norton
Exhibit 7. Mr. Curtiss responded to my email on October 10, 2024, and stated"I'll look into this
and confirm. But it appears you are correct on all accounts." I assumed the billing would be
corrected,but it wasn't. Instead, in January 2025,I was billed for 6 months of water. Specifically,
I received two invoices, one for the 3rd Quarter 2024 and one for the 4th Quarter 2024. See Norton
Exhibit 5. This occurred even after I pointed out their improper billing practices.
I don't know how many other customers besides myself and the other former independent board
members of the HOA have had this happen to them,but the IPUC should look into what happened
to the checks that were delivered to Applicant, look into whether Applicant deposited the checks
into accounts unrelated to the water utility business, whether Applicant complied with the billing
practices of IDAPA 31.21.01, whether Applicant has accounted for them as revenue, and why the
payments have not been credited to the customer accounts.
ii. Expenses (Applicant's Exhibit 2-Schedules B)
Line 21 of Applicant Exhibit 2-Schedules lists the Pro Forma Total Operating Expenses for the
water system as $233,936.33. In contrast, when the Board of the HOA and committee received
the Pro Forma from Applicant(See Norton Exhibit 2), it listed the Total Expenses to run both the
water and sewer systems as $237,300. Applicant is now claiming that the expenses to run only the
water system have nearly doubled in one year. Moreover, in the Pro Forma submitted to the HOA
board in 2023, Applicant represented that the largest line item (Repairs and Maintenance of
$125,000) for both the water and sewer systems was going to go down dramatically because
"Repairs in 2022 and 2023 are mostly non-recurring due to correction of deferred maintenance
prior to acquisition." See footnote, 4 to Page 5 of Norton Exhibit 2. Somehow,Applicant claims
Page 7 of 21

the Operations and Maintenance expenses for only the water system have risen to $134,996
(Combination of lines 1 and 9 on Applicant's Exhibit 2-Schedules B). It is beyond comprehension
that the expenses for operating only the water system have risen to the cost of operating both the
water and sewer system in one year.
I would suggest that the IPUC request the invoices behind the expenses identified on Applicant's
Exhibit 2-Schedules B to determine if any of the expenses are actually capital investments and not
expenses. I would also suggest that the IPUC investigate whether any of these expenses relate to
the 23.03% of plant in service associated with non-developer properties identified on Applicant's
Exhibit 1-Schedule C. Finally, I would suggest the IPUC requests the invoices to operate both the
water and sewer systems in support of the $237,300 Total Expenses identified in Norton Exhibit
2, as well as the invoices to operate only the water system in support of the Total Operating
Expenses identified in Applicant's Exhibit No. 2-Schedule B. The IPUC could then compare the
invoices and determine what are the appropriate expenses to be included in the rate case.
iii. Income Statement(Applicant's Exhibit 2-Schedule C)
Line 19 of Applicant's Income Statement shows a loss of$152,680. The Pro Forma contained in
Norton Exhibit 2 only one year earlier showed a loss of$67,300 ($170,000-$237,000). However,
this $67,300 loss would be generated if and only if, one includes the revenue of the water system
alone, and the expenses of both the water and sewer systems. See page 5 of Norton Exhibit 2.
This is only 44% of the loss Applicant is suggesting to the IPUC. It is obvious that Applicant has
manufactured this $152,680 loss by not including revenue that it should earn and including
expenses that should not be included.
Applicant's Exhibit No. 3 identifies Common Equity, Retained Earnings and Total Common
Equity. I do not have access to Applicant's records of account, nor how it maintains its books.
However,given how Applicant has described its revenue and expenses in its Application,I suggest
the IPUC examine the books, records, accounting practices very carefully in determining this rate
case.
On Applicant's Exhibit No.4,Applicant identifies State Income Tax(Line 17)and Federal Income
Tax (Line 19) as expenses to come up with Net Operating Revenue. Applicant identifies
themselves as limited liability companies. The tax obligations of a Limited Liability Company
(LLC) depend on how it is structured and taxed by the IRS. By default, an LLC is a "pass-through
entity," meaning the company itself doesn't pay income taxes. Instead, profits and losses are
"passed through" to the owners (called members), who report them on their personal tax returns.
However, an LLC can choose to be taxed as a corporation. If it elects C-corporation taxation, the
LLC will pay corporate income taxes. If it opts for S-corporation taxation, the profits are passed
through to members,with specific tax advantages for certain situations. The IPUC should examine
the records of Applicant to determine whether they are C or S corporations, determine if they are
required to pay taxes, and determine if Applicant's profit and/or loss is passed through to its
members. This will determine whether Applicant is entitled to any Income Tax deduction to
establish its Net Operating Revenue.
Page 8 of 21

iv. Proposed Tariff Schedule (Applicant's Exhibit 6)
In section 1 above, I noted that I would discuss the proposed tariffs in more detail. I wanted to
determine how the tariffs proposed by Applicant compare to water utilities with tariffs that have
been approved by the IPUC. Fortunately,the IPUC has a list of the approved tariffs on its website.
After examining the various tariffs on the IPUC's website, I determined that it would not be fair
to Applicant to compare its proposed tariffs to tariffs that may have been granted 10 to 20 years
ago. Accordingly, I have included in my analysis only those 18 tariffs that the IPUC has approved
during the last three years. I prepared a spreadsheet identifying the water company, IPUC Order
Number, Effective Date, Water Rate Charges, and Non-Recurring Charges. Finally, I calculated
the typical monthly water rate a customer would be charged if the consumer used 15,000 or 27,779
gallons in a month. For comparison, I went back to the last residence I owned before moving to
The Idaho Club and looked at the usage identified on my water bills. At that prior residence, I
would frequently use 25,000 to 30,000 gallons of water in a month during the summer.
I wanted to compare this amount to the data submitted by Applicant. The data contained in the
Well and System Information submitted by Applicant shows that for the one-year period from
10/18/2023 to 10/22/2024, Well 1 produced 8,999,000 gallons, Well 2 produced 11,554,000
gallons for a total of 20,553,000 gallons. See, Pages 2 and 3 of Applicant's Well and System
Information. The Sand Filter to Waste Gallons during this same period was 843,245 gallons or
4.1% of the volume produced. Subtracting the volume used by the Sand Filter from the total
amount yields a total of 19,709,755 gallons used during the year. If one divides this by the 148
customers identified by Gem State as actually using water,this yields an average amount of 11,097
gallons per month per customer over the entire 12-month period. Since many residents do not live
in The Idaho Club all year long, and most everyone uses substantially more water during the
summer months than the months in the middle of the winter, I believe this is a fair analysis.
However,to make certain that I am accurately representing the facts,I looked at the water produced
by the wells, and amount used by the Sand Filter during the winter month of 12/27/2023 to
1/31/2024 and compared it to the summer month of 7/29/2024 to 8/28/2024. During the January
winter month, Well 1 produced 640,000 gallons and Well 2 produced 759,000 gallons for a total
of 1,399,000 gallons. Reducing this amount by the volume used by the Sand Filter(36,315 gallons)
during that same period yields a total of 1,362,685 gallons. Dividing this by 148 customers yields
an average of 9,207 gallons per customer for January. However, The Idaho Club has many
"snowbirds" (probably close to 50% of the total residents) who live in the southern parts of the
United States during the winter months. Accordingly, the actual number of gallons per customer
would be substantially higher than 9,207 for those individuals who reside in The Idaho Club during
the winter months. Running this same calculation for the one-month period during the Summer
from July 29, 2024, to August 28, 2024, and again assuming 148 customers yields an average
usage of 27,779 gallons per customer for August8. Obviously, some customers will use more or
less than these averages,but these are averages for all the all residents of The Idaho Club.
See,Pages 2 and 3 of Applicant's Well and System Information.
$During the August Summer month,Well 1 produced 1,934,000 gallons and Well 2 produced 2,343,000 gallons for
a total of 4,277,000 gallons. Reducing this amount by the volume used by the Sand Filter(165,655 gallons)during
that same period yields a total of 4,111,345 gallons. Dividing this by 148 customers yields an average of 27,779
gallons per customer for August.
Page 9 of 21

The IPUC approved 18 tariffs for water rates during 2023 to 2025. These approved rates are listed
on Norton Exhibit 8. Some of the approved rates are flat rates and allow unlimited amounts of
water. Others have a base rate that allows a certain amount of water included in the base rate and
then charges an additional amount for each 1,000 gallons of water used9 above the volume included
in the base rate. The average base rate for the 18 tariffs approved by the IPUC is $44.91. This is
nearly identical to Applicant's current rate. The tariff proposed by Applicant shows a base rate of
$150.00 which is 334% of the average rate approved by the IPUC for the 18 tariffs.
For those utilities that have a specified amount of usage included in the base rate, the average of
the 18 tariffs is 10,259 gallons. Applicant is offering only 7,500 gallons,which means even during
the winter months, the residents of The Idaho Club would be forced to pay metered rate usage
charges. This is where Applicant hopes to really make its money. The average charge per 1,000
gallons for the 18 tariffs that have been approved by the IPUC is $1.98/1,000 gallons. In its
proposed tariffs,Applicant seeks to charge its customers $10.00/1,000 gallons. This is more than
five (5) times the average amount. Applicant's proposed tariffs for non-recurring charges are
similarly outrageous. The average returned check fee approved for the 18 tariffs is $20. Applicant
proposes charging $100 or 5 times the average rate. If a customer believes that his meter is
defective and wants a meter test performed, most companies do not include a tariff to perform a
test. For those that do have a fee if the meter proved to have an accuracy within 1.5%,the average
fee charged is $20. Applicant proposes a charge of$500 or 25 times the average fee charged.
Finally,the average reconnection fee for the 18 approved tariffs is $31. Applicant's proposed tariff
has a reconnection fee of$2,500, or 80 times the average reconnection fee.
How would the proposed tariffs of Applicant affect the average consumer? If a customer used
15,000 gallons in a month as outlined above,the average monthly bill for a consumer under the 18
approved tariffs would be $55.49 for the month (a $10.49 increase over our current rates). Under
Applicant's proposed tariff, a resident of The Idaho Club would pay $225.00 for 15,000 gallons,
more than four (4) times the average amount. Things get even worse if one uses the average
amount shown in Applicant's records for August 2024 (27,779 gallons). Using Applicant's own
data from August 2024 (27,779 gallons/customer), the average monthly bill for a customer under
the 18 tariffs approved by the IPUC would be $72.03. In contrast, under Applicant's proposed
tariffs, a customer in The Idaho Club would be charged $352.79 for the same amount of waterlo
This $352.79 charge is 5 times the average amount permitted under the 18 approved tariffs, and
nearly 8 times the amount the residents of The Idaho Club pay under the current tariff.
iv. Water System Schematic
The Water System Schematic submitted by Applicant is outdated and Applicant should be required
to submit a current schematic. In particular, the schematic shows the Moose Mountain Booster
station but does not show the current area covered by this booster station. This schematic does not
show the continuation of Green Monarch Lane to the south of the booster station and does not
9 Some of the tariffs are based on 100 cubic feet of usage rather than 1,000 gallons of usage. If the tariff was written
in terms of 100 cubic feet of water,it was converted to 1,000 gallons of water using the ratio of 748 gallons per 100
cubic feet. A few utilities have multiple volumetric amounts and rates. The calculation of monthly charge to
customers includes these variable volumetric amounts and rates where they exist.
10$352.79 equals$150 flat rate plus$10/1,000 gallons on 20,279 gallons(27,779—7,500)or$202.79.
Page 10 of 21

show the area covered by the new homes that are under construction and nearly complete on Green
Monarch Lane. This is significant as set forth in Section 3(f)below.
3. APPLICANT'S PRACTICES,RULES,REGULATIONS AND SERVICE
On page 2 of its Order No. 36520, the IPUC indicated that it may address the actions and service
of Applicant as well as Applicant's obeyance to rules and regulations. This section lays out some
of the violations of Applicant.
(a) Applicant's Violation of Duty of Honesty to the Commission.
Although I have not found a specific rule or regulation on point, it appears that the Commission
requires participants to be honest in their presentation to the Commission regarding any inquiry or
investigation. For example, Section 61-603 provides that the Commission and each commissioner
shall have the power to administer oaths and issue subpoenas in any inquiry or investigation, and
61-610 provides the Commission and each commissioner shall have power to examine under oath
any officer, agent or employee of such public utility in relation to the business and affairs of said
public utility.
While the independent directors of the board of directors of the HOA and the water system
acquisition committee were conducting their investigation into the possible purchase of the water
system from Applicant, Mr. Haberman, on behalf of Applicant sent an email dated 3/25/2024 to
the board of the HOA stating: "Board Valiant is hereby revoking its offer to sell the water system
to the HOA. We may or may not decide to revisit this at a later date. But, for now, there is no
longer a need for a water and sewer committee. Thanks. Bill" A copy of the email is attached as
Norton Exhibit 9.
Directly contradicting the email sent by Applicant to the Board,Applicant's counsel sent an email
to the Staff of the IPUC11, stating that Applicant had elected "to sell and transfer the Idaho Club
water system to the Idaho Club Homeowners Association." (Staff's Decision Memorandum
quoting email from Valiant's counsel.) Moreover,Applicant's counsel sent the email to the staff
of the IPUC only 13 minutes after Applicant sent its email to the HOA board of directors revoking
the offer. In making its determination on the reasonableness of the proposed tariff, the IPUC
should consider the veracity of the materials submitted by Applicant when examining its
application. This is especially true considering how Applicant has failed to include 3 months of
revenue and nearly doubled its expenses in its application.
(b) Applicant's Violation of IPUC Order 3 63 1.
At page 4 of Order 3631, the IPUC stated "The Commission also requires the Company to adopt
an accounting system consistent with the information required by the Commission's Annual Report
for Small Water Companies." As demonstrated in Section 2(c)(i.) above,Applicant has failed to
adopt an accounting system consistent with the Commission's Annual Report for Small Water
Companies. In particular,if Applicant adopted an accrual accounting system,they failed to include
"Case No.GNR-W-24-01: Comments of the Commission Staff dated July 18,2024,and Staff Decision
Memorandum dated April 9,2024.
Page 11 of 21

the water billing invoices issued in December 2024. If on the other hand, they adopted a cash
accounting system, they represented to the IPUC that they will collect only 9 months of revenue
rather than 12 in the future when they submitted their application.
Applicant additionally failed to account for the quarterly water invoices paid by myself and others
when they deposited our payments but failed to give us credit for our payments. Finally, an
investigation by the IPUC will most likely show that Applicant has not properly accounted for
their expenses since the expenses they identify for the water system is nearly identical to the
expenses for both the water and sewer systems when Applicant attempted to sell the systems to the
HOA.
If Applicant has failed to adopt an accounting system consistent with the information required by
the Commission's Annual Report for Small Water Companies, and the Commission cannot
accurately identify Applicant's income and expenses due to Applicant's poor accounting
practices,then Applicant's application should be placed on hold for one year, or until Applicant
complies with Order 3631. Otherwise, the Commission would have to base its decision on data
that cannot be verified as accurate.
(c) Applicant's Violation of Idaho Code . 61-622(1)
Applicant came under Commission regulation on September 6, 2024, with the issuance of Order
No. 36312, which found Valiant to be a public utility.Accordingly, from that point on,Applicant
could not raise its rates without prior Commission approval. Nevertheless, 3 days after the IPUC's
September 6, 2024 Order,Applicant sent a letter to its customers stating that it was raising its rates
effective October 1, 2024. Fortunately for us consumers, the IPUC stepped in and issued
interlocutory Order No. 36363.
(d) Applicant's Violation of Idaho Utility Customer Relations Rules
On page 4 of its Order No 36312 dated September 6,2024,the Commission advised Applicant that
they were"required to adopt the Commission's Utility Customer Relations Rules (UCRR; IDAPA
31.21.01 et seq.)" Rule 201 ISSUANCE OF BILLS -- CONTENTS OF BILLS (RULE 201)
provides in part "Billing statements will be issued regularly and will contain the following
information: f. Any amount transferred from another account; g. Any amount past due; h. Any
payments or credits applied to the customer's account since the last billing statement; and i. The
total amount due."
As described in Section 2(c)(i.) above, Gem State transferred the 3rd Quarter payments which it
received to Applicant,notified Applicant of the transfer and Mr. Haberman endorsed and deposited
the payments made by the customers. Nevertheless, as demonstrated by Norton Exhibits 4, 5, 6,
and 7, Applicant did not acknowledge the transfer of the account, failed to acknowledge the
payments, and failed to apply the payments and credits. Even after being informed of the error
and given copies of the endorsed checks,Applicant again failed to apply the payments and credits
when it sent out its bills on 12/30/2024. See Norton Exhibit 5.
Page 12 of 21

As of the date of filing this public comment,Applicant continues to violate Rule 201. As noted in
Norton Exhibit 5, Applicant sent out the 4th Quarter of 2024 Invoice dated 12/30/2024 in an
envelope post marked January 3, 2025 (4 days after 12/30/2024). The Vt Quarter of 2025 Invoice
covering January through March of 2025 should have been mailed out at the beginning of April. I
still have not received an invoice from Applicant. Nevertheless, my bank sent our payment to
Applicant for the 1st Quarter invoice that Applicant should have been mailed.
(e) Applicant's Violation of Idaho Fire Code
Idaho Code Section 41-253 provides as follows:
41-253. STATEMENT OF PURPOSE-- ADOPTION OF
INTERNATIONAL FIRE CODE. (1) The purpose of sections 41-253
through 41-269,Idaho Code,is to protect human life from fire,and to prevent
fires. These sections are intended to prescribe regulations consistent with
nationally recognized good practice for the safeguarding of life and property
from hazards of fire and explosion arising from the storage,handling and use
of hazardous substances, materials, and devices, and from conditions
hazardous to life or property in the use or occupancy of buildings or
premises, and there is hereby adopted the "International Fire Code," 2000
edition, with appendices thereto, published by the International Code
Council, Inc. and such later editions as may be so published and adopted by
the state fire marshal, as the minimum standards for the protection of life and
property from fire and explosions in the state of Idaho.
Appendix C of the Fire Code sets forth the location and spacing of Fire Hydrants. A copy of
Appendix C is attached as Norton Exhibit 10. Section C101.1 Scope provides "In addition to the
requirements of Sections 507.5.1, fire hydrants shall be provided in accordance with this appendix
for the protection of buildings, or portions of buildings, hereafter constructed or moved into the
jurisdiction." Section 507.5.1 provides that fire hydrants are required if the building"is more than
400 feet(122m) from a hydrant on a fire apparatus access road, as measured by an approved route
around the exterior of the facility or building". Sections C 102.1 and C 103.1 outline the minimum
number and spacing of fire hydrants and make specific reference to Table C 102.1. Table C 102.1
lists the maximum distance from any point on street or road frontage to a hydrant. These maximum
distances range from as little as 120 feet to a maximum distance of 250 feet depending upon the
Fire-Flow requirements.
The portion of The Idaho Club that lies South of Highway 200 is on a heavily wooded hill known
as Moose Mountain. I live at the end of North Star Ln. near the top of Moose Mountain. North
Star Ln. has the highest elevation of all the current roads in The Idaho Club and has an elevation
nearly identical to the Moose Mountain Booster. The only portion of Moose Mountain that is
higher in elevation than North Star Ln. is adjacent to our property on our East boundary and is
undeveloped. This property is listed as property to be developed by Applicant. Our property is
immediately adjacent to, and South of the Moose Mountain Booster shown on the Water System
Schematic filed by Applicant.
Page 13 of 21

All the streets in The Idaho Club have water hydrants except for one - the street that I live on.
When we first moved into The Idaho Club, I spoke with Mr. Haberman about Applicant installing
water hydrants on North Star Ln. Mr. Haberman said they could not do it because there was not
enough water pressure for water hydrants. After the Moose Mountain Booster station began to be
constructed, I again approached Mr. Haberman about installing water hydrants on North Star Ln.
Mr. Haberman informed me that he still did not intend to install hydrants on North Star Ln.
Attached as Norton Exhibit 11 is a map of North Star Ln from Google. The closest fire hydrant is
at the beginning of North Star Ln. Our home is over 1,700 feet from the closest fire hydrant,which
is more than 6 times the maximum distance from a fire hydrant allowed pursuant to Idaho Code
41-253 and the Idaho Fire Code Section C101.
(f) Applicant's Violation of Idaho Rules for Public Drinking Water Systems
Applicant is a water system subject to the Idaho Rules for Public Drinking Water Systems. Section
542 Facility and Design Standards—Distribution System governs the water pressure that must be
maintained in a public water system. Subsection 13 states:
Any public water system constructed or undergoing material modification where
topographical relief may affect water pressure at the customers' premises shall
provide the Department with an analysis which demonstrates that the pressure at
each designated building site will be at least forty y(40) psi, based on dynamic
pressure in the main, as set forth in Subsections 552.O1.b.i. and 552.O1.b.v., plus a
static compensation from the elevation of the main to the elevation of each building
site. (emphasis added).
In addition, Section 552 Operating Criteria for Public Water Systems also addresses the minimum
water pressure that must be maintained in a public water system. Subsection 0I.b.v. states:
The following public water systems or service areas of public water systems shall
maintain a minimum pressure of forty (40) psi throughout the distribution system,
during peak hour demand conditions, excluding fire flow, measured at the service
connection or along the property line adjacent to the consumer's premises.
(1)Any public water system constructed or substantially modified
after July 1, 1985.
(2)Any new service areas.
(3) Any public water system that is undergoing material
modification where it is feasible to meet the pressure requirements
as part of the material modification. (emphasis added)
Construction began on our home during 2019, and we moved into our home in April 2020. As
previously stated, our lot is directly adjacent to and South of the Moose Mountain Reservoir and
Booter Station. In fact,Applicant has a water line easement across the central part of our property
running North/South. There is more than one water line in this easement. The water lines run
parallel to each other and are only a few feet apart. When we built our home, our builder,working
in coordination with representatives of Applicant, chose to connect to the only water line that had
water running through it. Unfortunately,because the Moose Mountain Booster Station had not yet
Page 14 of 21

been built,we had to rely solely upon gravity feed for water pressure. Our house is approximately
25 feet below the Reservoir. As such,the water pressure in our house runs between 10 and 15 psi,
depending upon how much water is contained in the Reservoir. Because we had insufficient water
pressure, we were forced to purchase and install a pump, pressure/accumulator tank, and
sophisticated electrical components to measure the water pressure and run our pump to maintain
adequate water pressure in our home. Because Applicant failed to provide us the minimum water
pressure required by Idaho Rules for Public Drinking Water Systems, we incurred unnecessary
expenses of$5,358.27. A copy of the invoice is attached as Norton Exhibit 12.
Needless to say, we were thrilled when we learned Applicant was installing a Booster Station to
provide pressurized water to North Star Ln. (the road to the North of the Booster Station) and
Green Monarch Ln. (the road to the South of the Booster Station). On January 23,2025,I received
an email from a neighbor who is building a home on Green Monarch Ln. stating that he finally had
water pressure and included a photo showing he had 70 psi of pressure. We did not have anywhere
near that kind of pressure, so I walked down to our neighbor's house on North Star Ln. and talked
to the workers who were putting the finishing touches on the house. The workers also indicated
that our neighbor on North Star Ln. had adequate water pressure. I turned off our pump and
measured the water pressure being delivered to our house. It measured only 12-13 psi. A photo
of the pressure gauge leading into the low-pressure side of our pump is attached as Norton Exhibit
13.
It appears that Applicant did not pressurize the line servicing our home. Accordingly, I am the
only completed house in the entire Idaho Club development that does not have pressurized water.
The 12-13 psi pressure in the distribution line provided to our homesite is far below the minimum
pressure requirements of Sections 542 and 552 of the Idaho Rules for Public Drinking Water
Systems.
4. CUSTOMER RELATIONS OF APPLICANT AND RETALITORY ACTIONS
TAKEN BY APPLICANT
On page 2 of its Order No. 36520, the IPUC indicated that"customer relations of the utility are at
issue". This section lays out how the applicant has related to its customers and how it has taken
retaliatory action against customers who have opposed it.
In 2022, I was elected to the Board of Directors of The Idaho Club HOA. I and the other board
members had fiduciary duties to the residents/homeowners in The Idaho Club. That fiduciary duty
ran to the homeowners and not the developer. See the following Idaho Supreme Court opinions
where the Court has held that "directors stand in a fiduciary relation to the corporation, and,
hence, to the stockholders...." Hanny v. Sunnyside Ditch Co., 82 Idaho 271, 276, 353 P.2d 406,
409 (1960); Coeur D'Alenes Lead Co. v. Kingsbury, 59 Idaho 627, 630, 85 P.2d 691, 692
(1938). Accordingly, the board had a duty to do what was best for the homeowners even if that
meant taking a position contrary to the interests of Applicant.
Applicant attempted to sell the water system to Gem State in 2023. A contract had been entered,
and Gem State filed an application for approval to purchase the water business from Applicant
(Case No. G SW-W-23-01). After Gem State backed out of the acquisition, Applicant began its
Page 15 of 21

attempt to sell the water system to The Idaho Club HOA which Applicant controls through its
majority vote given to it in the CCRs. On January 24, 2024,Applicant sent an email to the Board
of Directors of The Idaho HOA advising the Board that Applicant"had a contract with Gem State
to sell the water system for $821,672", but "Gem State had elected not to close on the water
system." See Norton Exhibit 2. The Board agreed to investigate the possible purchase. One
independent board member wrote an email to the board on January 26, 2024, and pointed out that
"[a]s a member of the Board and a lot owner in the Idaho Club community,the Declarant [Valiant]
is on both sides of the water system transaction, which could be considered a conflict of interest."
In response to the valid conflict of interest comment,Valiant responded in an email and stated:
"With respect to the Declarant [Valiant] being on both sides of the transaction, that
may be a concern if what we were proposing involved some egregious one-sided
transaction that clearly does not provide benefits to the HOA." Mr. Haberman
additionally stated: "under the Bylaws, Loans, as with Special Assessments, can be
approved by a majority vote of the membership. A special meeting of the members
may be called by the President, majority of the Board or by Members owning one-
fourth or more of the outstanding votes, which the Declarant still
controls. Declarant also still controls more than a majority vote of the membership,
and thus Valiant could both call a special meeting of the membership and vote to
approve this without the steps you are suggesting below." (emphasis added).
In short, Valiant was arguing it could call a special meeting and use its majority vote to force the
HOA to buy the water system from Applicant, whether or not it was in the best interest of the
homeowners. I subsequently wrote an email to Applicant and pointed out that such action would
be a violation of the law, specifically Idaho's Conflict of Interest Statute, Idaho Code Section 30-
30-619. It was only after this email that Applicant withdrew his threat to force the HOA to buy the
water system from Applicant regardless of whether the residents of The Idaho Club wanted it or
not.
On February 23, 2024, the IPUC issued Order No. 36099 dismissing the action involving Gem
State and further stating "the Commission Staff shall contact representatives of Applicant
regarding their current regulatory status." That same day, Applicant wrote to me regarding the
independent board members and the water system acquisition committee's prior request for
financial documents on the water system and said: "If the Board decides that this [the requested
financial materials] is required prior to PSAs [Purchase and Sales Agreements] with both Valiant
and Gem State, the proposed purchases by the HOA may not be practical."
Three days later and without notifying the independent board members,Applicant filed a petition
in Bonner County District Court for creation and organization of The Idaho Club Water and Sewer
District. In the petition,Applicant sought to form a water district made up of the residents of The
Idaho Club. However, instead of the $821,672 purchase price contained in Norton Exhibit 2, the
price had now risen to $2'000,00012. See Exhibit D of Applicant's Petition attached hereto as
Norton Exhibit 14. Furthermore,Applicant handpicked the initial board of the Water and Sewer
district so that 4 of the 5 initial board members of the water and sewer district had business ties
12 The$2,000,000 consisted of$1,200,000 for the existing water infrastructure, $400,000 for the Moose Mountain
Booster station required to comply with DEQ regulations and$400,000 for future developer costs.
Page 16 of 21

and dealings with the Applicant that created conflicts of interest. After one of the residents of The
Idaho Club brought these actions to the attention of the independent board members, the
independent board members of the HOA contacted many of the residents of The Idaho Club and
explained why we thought it was not in the best interests of The Idaho Club residents for the
petition to move forward as drafted. There apparently was such an uproar that Applicant withdrew
the petition, and Applicant called an executive session of the Board of Directors of the HOA.
At this executive session,Applicant demanded my resignation from the board of directors, which
I refused. If I was going to be removed from the board,then I wanted a homeowner meeting to be
called so that I could fulfill my fiduciary duties and explain the above to the homeowners.
Applicant also asked for the resignation of another independent board member and told the third
independent board member that Applicant had not decided yet whether it would ask for his
resignation - it depended upon how the third independent board member acted going forward. A
special election to fire the independent board members never took place.
On June 20, 2024, a meeting of the homeowners took place where Applicant presented its plan to
form a water district which would buy the water system from Applicant. I, on behalf of the
independent board members and the water system acquisition committee, also made a lengthy
presentation outlining the events above and quoting from Applicant's emails and documents, some
of which are attached hereto as Exhibits. The homeowners decided not to move forward with the
proposal presented by Applicant, and the three independent directors either withdrew their names
for reelection or resigned from the Board.
Subsequently,Applicant sent an email to the homeowners attempting to disparage the reputation
of the three independent directors. The communication also made it clear to the customers of
Applicant that they were not to challenge Applicant. In the communication,Applicant claimed it
was a"benevolent dictator". Although many of Applicant's customers may take issue with it being
"benevolent", the fact that Applicant proudly referred to itself as a dictator clearly demonstrates
why we customers need the oversite of the IPUC, and why so many residents are afraid to raise
any issue out of fear of retaliation. Applicant also threatened legal action against myself and
another of the independent directors. Finally,Applicant revoked without cause my membership in
The Idaho Club Golf Club and kept my $12,500 initiation fee.
The IPC has already addressed the above retaliatory actions in Order NO. 36312. In doing so, it
also noted that someone had filed a comment anonymously "stated that some members of the
public have refrained from filing comments out of fear of having their golf, tennis, and social
privileges at the Idaho Club revoked—indicating that this has already happened at least twice."
Pages 3 and 4, Order No. 36312
In short,Applicant's customer relations consist of retaliating against customers who question or
disagree with Applicant's actions. The IPUC noted the above retaliation in Order No. 36312 and
said "alleged retaliation associated with this case ostensibly occurred via entities outside
Commission jurisdiction." However,the IPUC put Applicant on notice when it stated"allegations
of a regulated utility retaliating against customers are a very serious matter and could result in the
imposition of penalties. See Order No. 35817 at 32."
Page 17 of 21

Even after being warned by the IPUC, Applicant has continued to retaliate against me. These
retaliatory efforts consist of:
1. Not sending me proper invoices and not crediting me for the amounts I have paid on
my water bills;
2. Refusing to install water hydrants on North Star Ln.in violation of the Idaho Fire Code;
and
3. Not providing pressurized water to my house in violation of Idaho Rules for Public
Drinking Water Systems - I am the only completed house in the entire development
that does not have the minimum 40 psi water line pressure.
Applicant has for years been attempting to avoid oversite by the IPUC. Applicant has been
arguing for delays because it was in litigation, it was selling the water system to Gem State,
falsely claiming that it was selling the water system to the HOA when it had in fact withdrew
the offer to sell the water system to the HOA, and attempted to form a water district without
notification to the board of directors and residents of The Idaho Club. In summary, Applicant
has demonstrated a repeated pattern of attempting to shift the development cost and cost of
operation of the water system to the residents of The Idaho Club,while also maintaining control
over the operation of the water system through affiliated entities which it controls or boards
whose members have business ties and dealings with the Applicant such that it creates conflicts
of interest. Going forward,Applicant should be barred from any attempts to dispose of the water
system without prior approval of the IPUC.
5. REQUEST FOR ACTION BY THE IPUC
I would like the IPUC and its staff to undertake and implement the following:
I. Determine a tariff that is just and reasonable;
2. Have someone from the staff come to Sandpoint this summer when most of the
residents return, and make a presentation to the customers of Applicant explaining
what the IPUC does;
3. Have the IPUC conduct it's hearing in or close to Bonner County so the customers
of Applicant can be present at the hearing;
4. Conduct an audit of the number of"customers" represented by Applicant to
determine whether the correct number is closer to the number represented by Gem
State in Case No. GSW-W-23-01 or the number represented by Applicant in this
Case;
5. Conduct an audit of the actual revenues received by Applicant and determine the
anticipated revenues going forward;
6. Conduct an audit of the actual expenses incurred by Applicant and determine the
anticipated expenses going forward;
Page 18 of 21

7. Apply the findings of the IPUC's Order No. 35971 that Applicant has already
recovered the cost of this endeavor through the sale of lots in the area that it serves.
8. Determine the total revenue that Applicant has recovered from the sale of the 130
lots identified in Norton Exhibit 1, and compare that to the acquisition cost and
developer costs incurred by Applicant;
9. Find that Applicant is not permitted to collaterally attack the IPUC findings in
Order No. 35971;
10. Find that Applicant has not overcome the presumption of contributed capital under
IDAPA 31.36.01.102 and that all current plant-in-service of the Selling Parties'water
system shall be excluded from rate base.
11. Determine whether Applicant has been honest with the Commission, and whether
Applicant has violated the following:
a. IPUC Order 36312,
b. Idaho Code § 61-622,
c. Idaho Utility Customer Relations Rules,
d. Idaho Fire Code, and
e. Idaho Rules for Public Drinking Water Systems.
12. Require Applicant to properly credit me for the payments that have been made on my
account as well as the other customers regarding the 3rd Quarter Invoice of 2024.
13. Require Applicant to install water hydrants on North Star Ln. at no cost to me in order
to comply with the Idaho Fire Code.
14. Require Applicant to hook my home up to the pressurized water line at no cost to me
in order to comply with the Idaho Rules for Public Drinking Water Systems;
15. Determine whether Applicant has engaged in retaliatory practices, and if so, order
Applicant to do one or more of the following:
a. Reimburse me for the cost of the water pump and associated items
described in Norton Exhibit 12 to provide water pressure because
Applicant has not provided me with pressurized water;
b. Fine Applicant for its violations of the billing practices under IDAPA
31.21.01; See Order No. 35817.
c. Fine Applicant on a daily basis until water hydrants are installed on North
Star Ln.; See Order No. 35817.
d. Fine Applicant on a daily basis until Applicant hooks up our home to the
pressurized water line. See Order No. 35817.
16. Reduce the Applicant's request for an overall Rate of Return significantly below the
12%requested by Applicant;
17. Enter an Order that Applicant may not dispose of the water system by sale, transfer,
application for a water district or any other means unless it obtains prior approval
from the IPUC; and
Page 19 of 21

18. Enter an Order that a sale, transfer or disposition of the water system may not be
made to any entity owned or controlled by Applicant or its related or affiliated
entities, or to entities owned or controlled by board members or investors who have
business ties and dealings with the Applicant unless it obtains prior approval from the
IPUC.
Page 20 of 21

EXHIBIT LIST
Exhibit No. Description
1 Properties sold by Applicant (exported from Bonner County Website).
2 Applicant's Summary of Proposed Sale of Water& Sewer Systems at The Idaho
Club.
3 Applicant's Invoice through Gem State dated 1/31/2024 for water service for
January, February and March.
4 Applicant's Invoice through Panhandle Management dated 9/30/2024 for water
service for July,August, September.
5 Applicant's Invoice through Panhandle Management dated 12/30/2024 for water
service for October,November, December.
6 10/9/2024 email from Leslie Abrams-Rayner, General Manager of Gem State.
7 10/10/2024 email to Tom Curtiss at Panhandle Management.
8 Water Tariffs Approved by the IPUC during the last 3 years.
9 3/25/2024 from Bill Haberman to Board of the HOA.
10 Appendix C of Idaho Fire Code.
11 Google Map of North Star Ln.
12 Expenses incurred to provide Norton's with adequate water pressure.
13 Photo of water pressure at Norton's house.
14 Exhibit D of Applicant's Petition for the Creation and Organization of the Idaho
Club Water and Sewer District.
Page 21 of 21

Official Records Search and Copies - Web
Grantor: (VALIANT IDAHO LLC) and Document Types: (WARRANTY DEED)
Instrument Number #of Lots Description Recording Date Grantor Grantee Legal Description
882141 1 WARRANTY DEED 11/13/2015 14:38 VALIANT IDAHO, LLC HOLMBERG HOLDINGS, LLC PARCELS 1 AND 2: 6-57N-1E
HIDDEN LAKES SECOND ADDITON Lot: 2 Block/Bldg: 2 Plat Book: 5 Plat Pages(s): 58, HIDDEN LAKES
SECOND ADDITON Lot: 3 Block/Bldg: 2 Plat Book: 5 Plat Pages(s): 58, HIDDEN LAKES SECOND ADDITON
Lot: 4 Block/Bldg: 2 Plat Book: 5 Plat Pages(s): 58, HIDDEN LAKES SECOND ADDITON Lot: 5 Block/Bldg: 2
906538 4 WARRANTY DEED 6/13/2017 12:43 VALIANT IDAHO LLC BISBEE CHARLES B Plat Book: 5 Plat Pages(s): 58
906539 1 WARRANTY DEED 6/13/2017 12:46 VALIANT IDAHO LLC ROUTT DAVID M JR, ROUTT TRACY L GOLDEN TEE ESTATES 3RD ADDN REPLAT Lot: 2A Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 78
906938 1 WARRANTY DEED 6/20/2017 15:52 VALIANT IDAHO LLC ROUTT DAVID M JR, ROUTT TRACY L GOLDEN TEE ESTATES 8TH ADDITION Lot: 2A Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 82
GOLDEN TEE ESTATES 8TH ADDITION Lot: 1A Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 82 8TH ADDITION ,
GOLDEN TEE AND FIRST ADDITION REPLAT Lot: 4 Block/Bldg: 22 Plat Book: 8 Plat Pages(s): 77 , GOLDEN
TEE AND FIRST ADDITION REPLAT Lot: 5A Block/Bldg: 22 Plat Book: 9 Plat Pages(s): 6, GOLDEN TEE AND
908521 4 WARRANTY DEED 7/21/2017 12:38 VALIANT IDAHO LLC HADNIC LLC FIRST ADDITION REPLAT Lot: 6A Block/Bldg: 22 Plat Book: 9 Plat Pages(s): 6
909941 1 WARRANTY DEED 8/17/2017 11:54 VALIANT IDAHO LLC WYATT LARRY D, HICBER DRUSILLA A GOLDEN TEE ESTATES 8TH ADDITION Lot: 2 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 7
909971 1 WARRANTY DEED 8/17/2017 14:51 VALIANT IDAHO LLC WYATT LARRY D, HIEBER DRUSILLA A GOLDEN TEE ESTATES 8TH ADDITION Lot: 2 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 7
912198 1 WARRANTY DEED 9/29/2017 10:39 VALIANT IDAHO LLC MCKAY DANIEL, MCKAY LAURA GOLDEN TEE ESTATES 8TH ADDITION Lot: 1 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 7
916144 2 WARRANTY DEED 12/26/2017 8:42 VALIANT IDAHO LLC INLAND NORTHWEST LAND TRUST 36 58 1W, PARCELS 12 3 &4
919253 1 WARRANTY DEED 3/21/2018 10:08 VALIANT IDAHO LLC BRIAN G BIELA REVOCABLE TRUST, BIELA TRUST GOLDEN TEE ESTATES 7TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
919947 1 WARRANTY DEED 4/6/2018 15:13 VALIANT IDAHO LLC BRIAN G BIELA REVOCABLE TRUST, BIELA BRIAN G, BIELA TRUST GOLDEN TEE ESTATES 7TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
LEDREW RICHARD WAYNE, LEDREW NICOLE ELEANOR FITCH,
928873 1 WARRANTY DEED 10/3/2018 13:46 VALIANT IDAHO LLC RICHARD AND NICHOLE LEDREW FAMILY TRUST GOLDEN TEE ESTATES 4TH ADDITION Lot: 1 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 80
929075 1 WARRANTY DEED 10/5/2018 14:08 VALIANT IDAHO LLC HAIGHTJAMES G, HAIGHT HILLARY M GOLDEN TEE ESTATES 6TH ADDITION Lot: 4 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 82
929990 1 WARRANTY DEED 10/24/2018 13:58 VALIANT IDAHO LLC HILLS JAMIE A GOLDEN TEE ESTATES 4TH ADDITION Lot: 9 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 80
933990 1 WARRANTY DEED 1/31/2019 12:20 VALIANT IDAHO LLC HEALY CHRISTOPHER J, HEALY SHELLEY M GOLDEN TEE ESTATES 2ND ADDITION Lot: 5 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 79
936456 1 WARRANTY DEED 3/29/2019 10:48 VALIANT IDAHO, LLC OWENSBY JEFFERY, LORENZI ANNETTE E GOLDEN TEE ESTATES 5TH ADDITION Lot: 1 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81
941449 1 WARRANTY DEED 7/11/2019 15:03 VALIANT IDAHO LLC KIENE WHEELER DION J, WHEELER LARRY GOLDEN TEE ESTATES 4TH ADDITION Lot: 8 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 80
HULBERT CHARLES E, HULBERT PAM, SCOTT DAVID W, PRICE LYDGIA
944740 1 WARRANTY DEED 9/6/2019 16:26 VALIANT IDAHO LLC A GOLDEN TEE ESTATES REPLAT Lot: 4A Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 82
944741 1 WARRANTY DEED 9/6/2019 16:28 VALIANT IDAHO LLC FLANIGAN CHRISTOPHER A, FLANIGAN JACKIE R A GOLDEN TEE ESTATES 8TH ADDITION Lot: 6 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 7
944742 1 WARRANTY DEED 9/6/2019 16:29 VALIANT IDAHO LLC RAINS RICHARD A, RAINS LAURA GOLDEN TEE ESTATES 8TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 7
952440 1 WARRANTY DEED 1/31/2020 8:24 VALIANT IDAHO LLC HOUSE DAVID C, HOUSE EVA H GOLDEN TEE ESTATES 7TH ADDITION Lot: 5 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
GOLDEN TEE ESTATES FIRST ADDITION Lot: 11 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77, GOLDEN TEE
952470 3 WARRANTY DEED 1/31/2020 11:09 VALIANT IDAHO LLC PDC LLC ESTATES FIRST ADDITION Lot: 12 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77, PARCELS 1 AND 2
952557 1 WARRANTY DEED 2/3/2020 13:39 VALIANT IDAHO LLC HOUSE DAVID C, HOUSE EVA L GOLDEN TEE ESTATES 7TH ADDITION Lot: 5 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
GOLDEN TEE AND FIRST ADDITION REPLAT Lot: 13 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77, GOLDEN
960046 2 WARRANTY DEED 6/30/2020 14:16 VALIANT IDAHO LLC FAIRWAY HOMES NORTHWEST LLC TEE AND FIRST ADDITION REPLAT Lot: 14 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77
GOLDEN TEE ESTATES 6TH ADDITION Lot: 2 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 82 , GOLDEN TEE
961714 2 WARRANTY DEED 7/27/2020 15:33 VALIANT IDAHO LLC HORN BRADLEY P, PARNACOTT MELISA K ESTATES 6TH ADDITION Lot: 3 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 82
964586 1 WARRANTY DEED 9/2/2020 13:22 VALIANT IDAHO LLC PEVOW GERALD, PEVOW ROBIN GOLDEN TEE ESTATES 7TH ADDITION Lot: 4 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
966013 1 WARRANTY DEED 9/22/2020 15:55 VALIANT IDAHO LLC HAYNES MICHAEL J, HAYNES MARY ANN GOLDEN TEE ESTATES 3RD ADDITION Lot: 4 Block/Bldg: 8 Plat Book: 8 Plat Pages(s): 78
966456 1 WARRANTY DEED 9/28/2020 12:54 VALIANT IDAHO LLC WILLIAMS RON, WILLIAMS DOREEN GOLDEN TEE ESTATES 3RD ADDITION Lot: 3 Block/Bldg: 6 Plat Book: 8 Plat Pages(s): 78
966708 1 WARRANTY DEED 9/30/2020 13:47 VALIANT IDAHO LLC BUFFO GARY L, MINO JULIE C GOLDEN TEE ESTATES REPLAT Lot: 16 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77
GOLDEN TEE ESTATES 5TH ADDITION Lot: 11 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 81, GOLDEN TEE
ESTATES 7TH ADDITION Lot: 1 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13 , GOLDEN TEE ESTATES 7TH
967166 3 WARRANTY DEED 10/6/2020 14:35 VALIANT IDAHO LLC RIEF DUSTIN, RIEF MARIAH ADDITION Lot: 2 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
968281 1 WARRANTY DEED 10/22/2020 13:01 VALIANT IDAHO LLC GDF LLC GOLDEN TEE AND FIRST ADDITION REPLAT Lot: 20A Block/Bldg: 20 Plat Book: 9 Plat Pages(s): 6
970122 1 WARRANTY DEED 11/16/2020 12:29 VALIANT IDAHO LLC KYME JOHN, KYME NANCY GOLDEN TEE ESTATES 3RD ADDITION Lot: 1 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 78
970144 1 WARRANTY DEED 11/16/2020 13:58 VALIANT IDAHO LLC MURRAY FAMILY HOLDINGS LLC GOLDEN TEE ESTATES - 9TH ADDITION Lot: 2 Block/Bldg: 1 Plat Book: 14 Plat Pages(s): 36
970861 1 WARRANTY DEED 11/24/2020 15:54 VALIANT IDAHO LLC BELDING JENNIFER A, BELDING RYAN C GOLDEN TEE ESTATES 7TH ADDITION Lot: 9 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
971964 1 WARRANTY DEED 12/10/2020 14:20 VALIANT IDAHO LLC PACE RICHARD, PACE KIMBERLY GOLDEN TEE ESTATES 2ND ADDITION Lot: 5 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
971970 1 WARRANTY DEED 12/10/2020 14:40 VALIANT IDAHO LLC PACE RICHARD, PACE KIMBERLY GOLDEN TEE ESTATES 2ND ADDITION Lot: 6 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
971979 1 WARRANTY DEED 12/10/2020 15:21 VALIANT IDAHO LLC PACE RICHARD, PACE KIMBERLY GOLDEN TEE ESTATES 2ND ADDITION Lot: 4 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
973413 1 WARRANTY DEED 12/31/2020 12:46 VALIANT IDAHO LLC JOHNSON DONALD,JOHNSON CHRISTIE GOLDEN TEE ESTATES 5TH ADDITION Lot: 1 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 81
973561 1 WARRANTY DEED 1/5/2021 13:06 VALIANT IDAHO LLC COOPER JEFF, BLACKMORE AILEEN GOLDEN TEE ESTATES 7TH ADDITION Lot: 2 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
GOLDEN TEE ESTATES 8TH ADDITION Lot: 5 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 7, GOLDEN TEE
973818 2 WARRANTY DEED 1/8/2021 12:06 VALIANT IDAHO LLC FAIRWAY HOMES NORTHWEST LLC ESTATES 8TH ADDITION Lot: 8 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 7
GOLDEN TEE ESTATES 3RD ADDITION Lot: 2 Block/Bldg: 8 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE
974371 2 WARRANTY DEED 1/15/2021 14:05 VALIANT IDAHO LLC CREAGLE GARY ESTATES 3RD ADDITION Lot: 4 Block/Bldg: 6 Plat Book: 8 Plat Pages(s): 78
975456 1 WARRANTY DEED 2/1/2021 13:59 VALIANT IDAHO LLC IMORT CONSTRUCTION INC, MONOGRAM HOMES DBA IGOLDEN TEE ESTATES REPLAT Lot: 21A Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 81
EXHIBIT 1

Official Records Search and Copies - Web
Grantor: (VALIANT IDAHO LLC) and Document Types: (WARRANTY DEED)
Instrument Number #of Lots Description Recording Date Grantor Grantee Legal Description
GOLDEN TEE ESTATES 7TH ADDITION Lot: 6 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13 , GOLDEN TEE
977309 2 WARRANTY DEED 3/1/2021 8:29 VALIANT IDAHO LLC HINKENS MICHAEL ESTATES 6TH ADDITION Lot: 1 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 82
977317 1 WARRANTY DEED 3/1/2021 9:11 VALIANT IDAHO LLC FISHER REVOCABLE TRUST GOLDEN TEE ESTATES 4TH ADDITION Lot: 6 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 80
977637 1 WARRANTY DEED 3/3/2021 12:23 VALIANT IDAHO LLC STEELE SCOTT T, STEELE HEIDI M, STEELE FAMILY TRUST GOLDEN TEE ESTATES 5TH ADDITION Lot: 8 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 81
978511 1 WARRANTY DEED 3/15/2021 14:57 VALIANT IDAHO LLC K6TRUST GOLDEN TEE ESTATES 2ND ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
978960 1 WARRANTY DEED 3/22/2021 13:24 VALIANT IDAHO LLC MOON NIELSEN LEIF, OWEN MELISSA GOLDEN TEE ESTATES 3RD ADDITION Lot: 10 Block/Bldg: 7 Plat Book: 8 Plat Pages(s): 78
979682 1 WARRANTY DEED 3/31/2021 11:11 VALIANT IDAHO LLC IRONWOOD BUILDERS LLC GOLDEN TEE ESTATES 7TH ADDITION Lot: 1 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
979683 1 WARRANTY DEED 3/31/2021 11:11 VALIANT IDAHO LLC IRONWOOD BUILDERS LLC GOLDEN TEE ESTATES 3RD ADDITION Lot: 7 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78
979984 1 WARRANTY DEED 4/5/2021 13:35 VALIANT IDAHO LLC LAZARENKO ENT, LAZARENKO MARIE GOLDEN TEE ESTATES 5TH ADDITION Lot: 5 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 81
980103 1 WARRANTY DEED 4/6/2021 13:16 VALIANT IDAHO LLC DIAS MICHELE MICHELE A GOLDEN TEE ESTATES 3RD ADDITION Lot: 1 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78
981830 1 WARRANTY DEED 4/30/2021 14:41 VALIANT IDAHO LLC HUNTER CECELIA GOLDEN TEE ESTATES 5TH ADDITION Lot: 9 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 81
982639 1 WARRANTY DEED 5/12/2021 13:21 VALIANT IDAHO LLC SWAIN ASHLEY E GOLDEN TEE ESTATES 2ND ADDITION Lot: 8 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
982655 1 WARRANTY DEED 5/12/2021 14:51 VALIANT IDAHO LLC BENSON JAMES LEE, BENSON LEZLI GAMBLE GOLDEN TEE ESTATES 3RD ADDN REPLAT Lot: 6 Block/Bldg: 8 Plat Book: 8 Plat Pages(s): 78
982843 1 WARRANTY DEED 5/14/2021 13:10 VALIANT IDAHO LLC NOVAK RYAN GOLDEN TEE ESTATES 3RD ADDITION Lot: 8 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78
GOLDEN TEE ESTATES 5TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81 , GOLDEN TEE
982863 3 WARRANTY DEED 5/14/2021 14:18 VALIANT IDAHO LLC DIAS MICHELE A ESTATES 5TH ADDITION Lot: 9 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81 , PARCELS 1 AND 2
983057 1 WARRANTY DEED 5/18/2021 13:05 VALIANT IDAHO LLC SMITH CORI, SMITH JASON RICHARD,JC DELTA 2010 LIVING TRUST GOLDEN TEE ESTATES 3RD ADDITION Lot: 5 Block/Bldg: 8 Plat Book: 8 Plat Pages(s): 78
983427 1 WARRANTY DEED 5/24/2021 14:44 VALIANT IDAHO LLC CODER DARIN A, CODER BECKY A GOLDEN TEE ESTATES - 9TH ADDITION Lot: 3 Block/Bldg: 1 Plat Book: 14 Plat Pages(s): 36
GOLDEN TEE ESTATES 5TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81 , GOLDEN TEE
983563 2 WARRANTY DEED 5/26/2021 9:21 VALIANT IDAHO LLC DIAS MICHELE A ESTATES 5TH ADDITION Lot: 9 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81
984483 1 WARRANTY DEED 6/4/2021 13:34 VALIANT IDAHO LLC STRIEGEL DAVID A, GIFFORD BROOKE A GOLDEN TEE ESTATES 7TH ADDITION Lot: 3 Block/Bldg: 1 Plat Book: 9 Plat Pages(s): 13
GOLDEN TEE ESTATES 3RD ADDITION Lot: 1 Block/Bldg: 5 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE
984663 2 WARRANTY DEED 6/8/2021 8:36 VALIANT IDAHO LLC WEST JASON, PAGE BONNIE, PAGE WAYNE, PAGE SUSAN G ESTATES 3RD ADDITION Lot: 2 Block/Bldg: 5 Plat Book: 8 Plat Pages(s): 78
984921 1 WARRANTY DEED 6/10/2021 11:29 VALIANT IDAHO LLC LYNAGH ROBERT M, LYNAGH KIRSTEN L GOLDEN TEE ESTATES 3RD ADDITION Lot: 6 Block/Bldg: 7 Plat Book: 8 Plat Pages(s): 78
985797 1 WARRANTY DEED 6/22/2021 13:21 VALIANT IDAHO LLC HARDIN LEE, RUEN ROCHELLE GOLDEN TEE ESTATES 7TH ADDITION Lot: 8 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
985873 1 WARRANTY DEED 6/23/2021 12:48 VALIANT IDAHO LLC FAIRWAY HOMES NORTHWEST LLC 36 58N 1W
986047 1 WARRANTY DEED 6/25/2021 12:27 VALIANT IDAHO LLC HANNON MICHAEL JAMES, KITTRELLJERRY LYNN GOLDEN TEE ESTATES 3RD ADDITION Lot: 1 Block/Bldg: 8 Plat Book: 8 Plat Pages(s): 78
987524 1 WARRANTY DEED 7/16/2021 12:16 VALIANT IDAHO LLC JNAN INC GOLDEN TEE ESTATES 4TH ADDITION Lot: 2 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 80
987747 1 WARRANTY DEED 7/20/2021 14:38 VALIANT IDAHO LLC THE FROHNEN FAMILY TRUST GOLDEN TEE ESTATES - 9TH ADDITION Lot: 4 Block/Bldg: 1 Plat Book: 14 Plat Pages(s): 36
988392 1 WARRANTY DEED 7/29/2021 15:31 VALIANT IDAHO LLC STADUM KENT E GOLDEN TEE AND FIRST ADDITION REPLAT Lot: 3 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77
990143 1 WARRANTY DEED 8/23/2021 12:22 VALIANT IDAHO LLC BOLTON J LAWRENCE, BOLTON JANE L GOLDEN TEE ESTATES 6TH ADDITION Lot: 8 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 82
990790 1 WARRANTY DEED 8/31/2021 11:56 VALIANT IDAHO LLC STILLWATER GROUP LLC GOLDEN TEE ESTATES ELEVENTH ADDITION Lot: 2 Plat Book: 17 Plat Pages(s): 34
990827 1 WARRANTY DEED 8/31/2021 13:46 VALIANT IDAHO LLC WARNER MARGARET E GOLDEN TEE ESTATES 3RD ADDITION Lot: 6 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78
990965 1 WARRANTY DEED 9/2/2021 10:28 VALIANT IDAHO LLC WALTZ FAMILY TRUST GOLDEN TEE ESTATES 2ND ADDITION Lot: 2 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 79
991254 1 WARRANTY DEED 9/8/2021 9:23 VALIANT IDAHO LLC MASTERPIECE REAL ESTATE INVESTMENTS LLP GOLDEN TEE ESTATES 7TH ADDITION Lot: 5 Block/Bldg: 2 Plat Book: 9 Plat Pages(s): 13
991428 1 WARRANTY DEED 9/10/2021 10:55 VALIANT IDAHO LLC MCLAUGHLIN DENNIS, MCLAUGHLIN DENISE GOLDEN TEE ESTATES 4TH ADDITION Lot: 1 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 80
GOLDEN TEE ESTATES 3RD ADDITION Lot: 1 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE
ESTATES 3RD ADDITION Lot: 2 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE ESTATES 3RD
ADDITION Lot: 3 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 78 , GOLDEN TEE ESTATES 3RD ADDITION Lot: 4
673 PIONEER EXCHANGE ACCOMMODATOR TITLEHOLDER LLC, #673 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE ESTATES 3RD ADDITION Lot: 5 Block/Bldg: 4
991606 12 WARRANTY DEED 9/13/2021 13:36 VALIANT IDAHO LLC PIONEER EXCHANGE ACCOMMODATOR TITLEHOLDER LLC Plat Book: 8 Plat Pages(s): 78
992342 1 WARRANTY DEED 9/24/2021 15:54 VALIANT IDAHO LLC JAMES HEAVERLO II TRUST GOLDEN TEE ESTATES 4TH ADDITION Lot: 3 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 80
993907 1 WARRANTY DEED 10/19/2021 13:26 VALIANT IDAHO LLC TYNAN LAURIE, IDAHO REALTY 2020 TRUST GOLDEN TEE AND FIRST ADDITION REPLAT Lot: 2 Block/Bldg: 20 Plat Book: 8 Plat Pages(s): 77
994141 1 WARRANTY DEED 10/22/2021 10:33 VALIANT IDAHO LLC SLAUGHTER RUSSELL, SLAUGHTER PATRICIA GOLDEN TEE ESTATES 6TH ADDITION Lot: 4 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 82
994561 1 WARRANTY DEED 10/29/2021 8:15 VALIANT IDAHO LLC BROWN RICK R, BROWN ROXANNE D GOLDEN TEE ESTATES 6TH ADDITION Lot: 2 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 82
997087 1 WARRANTY DEED 12/8/2021 9:46 VALIANT IDAHO LLC GRAEFF RYAN, MOY TIFFANY GOLDEN TEE ESTATES 6TH ADDITION Lot: 3 Block/Bldg: 4 Plat Book: 8 Plat Pages(s): 82
KALISPEL INDIAN COMMUNITY OF THE KALISPEL INDIAN
998132 1 WARRANTY DEED 12/27/2021 15:07 VALIANT IDAHO LLC RESERVATION 6 57N 1E
GOLDEN TEE ESTATES 5TH ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81 , GOLDEN TEE
999329 2 WARRANTY DEED 1/20/2022 10:52 VALIANT IDAHO LLC DIAS MICHELE A ESTATES 5TH ADDITION Lot: 9 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 81
GOLDEN TEE ESTATES AND GOLDEN TEE ESTATES 1ST ADDITION REPLAT Lot: 1 Block/Bldg: 20 Plat Book:
999793 1 WARRANTY DEED 1/28/2022 15:33 VALIANT IDAHO LLC LOFTUS JEFF, LOFTUS STACIE 8 Plat Pages(s): 77
999966 1 WARRANTY DEED 2/2/2022 8:09 VALIANT IDAHO LLC TUDDENHAM MARGARET,TUDDENHAM READ GOLDEN TEE ESTATES 2ND ADDITION Lot: 8 Block/Bldg: 2 Plat Book: 8 Plat Pages(s): 79
1004257 1 WARRANTY DEED 4/21/2022 14:10 VALIANT IDAHO LLC TORONTO RHONDA LYNN,TORONTO ROBERT JR GOLDEN TEE ESTATES 9TH ADDITION REPLAT LOT 1 Lot: 1B Block/Bldg: 1 Plat Book: 18 Plat Pages(s): 58
1004277 1 WARRANTY DEED 4/22/2022 8:25 VALIANT IDAHO LLC SCOTT HILL TRUST, HEIDI HILL TRUST, HILL SCOTT, HILL HEIDI GOLDEN TEE ESTATES 9TH ADDITION REPLAT LOT 1 Lot: 1A Block/Bldg: 1 Plat Book: 18 Plat Pages(s): 58
EXHIBIT 1

Official Records Search and Copies - Web
Grantor: (VALIANT IDAHO LLC) and Document Types: (WARRANTY DEED)
Instrument Number #of Lots Description Recording Date Grantor Grantee Legal Description
GOLDEN TEE ESTATES 3RD ADDITION Lot: 7 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE
ESTATES 3RD ADDITION Lot: 8 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE ESTATES 3RD
ADDITION Lot: 9 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 78 , GOLDEN TEE ESTATES 3RD ADDITION Lot:
10 Block/Bldg: 1 Plat Book: 8 Plat Pages(s): 78, GOLDEN TEE ESTATES 3RD ADDITION Lot: 11 Block/Bldg:
1008128 8 WARRANTY DEED 7/8/2022 12:53 VALIANT IDAHO LLC PREMIER QUALITY DEVELOPMENT LLC 1 Plat Book: 8 Plat Pages(s): 78
GOLDEN TEE ESTATES 3RD ADDITION Lot: 2 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78,GOLDEN TEE
ESTATES 3RD ADDITION Lot: 3 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78; GOLDEN TEE ESTATES 3RD
ADDITION Lot: 4 Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78; GOLDEN TEE ESTATES 3RD ADDITION Lot: 5
1036155 4 WARRANTY DEED 7/26/2024 0:00 VALIANT IDAHO LLC COZY COTTAGE OF IDAHO LLC Block/Bldg: 3 Plat Book: 8 Plat Pages(s): 78
130 Total Lots Sold by Valiant Idaho LLC
EXHIBIT 1

THE
IDAHO
CLUB
Summary of Proposed Sale of Water & Sewer Systems at The Idaho Club
Executive Summary
Valiant Idaho, LLC, and it subsidiary, TIC Utilities, LLC (collectively, "TIC'), acquired the water
and sewer systems at The Idaho Club via foreclosure and other successful legal actions. In
November 2022, TIC sold the sewer system to Gem State Water ("Gem State"), a subsidiary of
NW Natural, Inc. As part of that transaction, Gem State also entered into a contract to purchase
the water system upon approval from Idaho Public Utility Commission ("IPUC") which was
expected to close in November 2023. Gem State elected to not proceed with the purchase of
the water system. During our recent discussions with Gem State, their business contact has
agreed that it makes sense to keep the two systems under common ownership and indicated
their willingness to sell the sewer system back to us or our assignee for the amount paid plus
reimbursement for its capital expenses. TIC proposes that The Idaho Club HOA purchase both
of these systems for several reasons outlined below, the most significant of which is that the
HOA should control these strategic assets to avoid the issues experienced during the one year
of outside ownership of the sewer system and the historical issues experienced with outside
ownership of the water system.
Benefits to Ownership by HOA:
Operation as a Non-Profit: Given that the HOA is a non-profit, and other ownership
alternatives are not, rates and hook-up fees can be maintained at the minimum amounts
required to properly operate and maintain the systems without the addition of profit or returns on
equity. No outside owner, TIC included, will be willing to operate the systems at a loss or at
breakeven and thus rates established by an outside for-profit owner will reflect this additional
financial load.
Lien Rights for Collection of Fees: There are significant accounts receivable due to many
absentee owners simply not paying their monthly fees. Collecting those delinquent fees is
costly primarily due to it requiring the pursuit of legal claims without a definitive lien right against
the properties. By contrast, the delinquencies for HOA fees are less than 5% and only rarely
result in expensive collection actions. Thus, ownership by the HOA with a legal right to lien for
unpaid fees will significantly improve the cash flow, reducing the burden on the owners who do
pay on time and ensuring that capital is available to cover the costs of maintaining the systems.
EXHIBIT 2

Exemption from IPUC Regulation for HOA Owned Water Systems: Unless owned by a
HOA, or other approved non-profit corporation or water district, a community water system falls
under IPUC regulation. While having the system be unregulated may not sound ideal,
regulation by IPUC is limited to the monthly rates and hook-up fees. Water quality remains
under the jurisdiction of Idaho Department of Environmental Quality regardless of the ownership
of the water system. Under this exemption to IPUC regulation, a HOA has the flexibility to make
immediate changes to its rate structure and hook-up fees to ensure financial security, while for
an owner of a regulated system under IPUC such actions would require a formal rate case with
an uncertain result. This is the primary stated reason that Gem State decided to not complete
the purchase. If owned by the HOA, necessary changes can made more efficiently, while
keeping any increases to the minimum necessary to property operate and maintain the system.
Elimination of Risks Related to Outside Ownership: With outside for-profit ownership
comes several risks — financial failure, poor service without accountability and/or rate and fee
hikes beyond what is necessary, among others. The Idaho Club has had to deal with all of
these issues at various times over the years. While TIC has done its best to avoid or mitigate
such risks, there are simply no guarantees that future owners will. Only though HOA ownership
are these risks manageable and/or fully mitigated. Simply put, the HOA owning these strategic
assets and operating them for the collective good of the HOA members, rather than for the
financial gain of a for-profit enterprise, is the best way to maintain the property values and
financial health of the project.
Seamless Transition: I plan to personally manage the transaction with Gem State, TIC and the
lender, as well as initially manage the operator and engineers during the transition, with
oversight by the HOA Board. Given that TIC still owns the water system, and previously owned
both systems, the team for the outside management of the systems is in place: Welch Comer
Engineers (Steve Cordes) for technical system knowledge and compliance; E3 Consultants
(Jason Wereley) for licensed on-site operations; and, Kootenai Excavators (Mark Graham) for
on-site repair and maintenance work. For billing, it is anticipated that would be covered by
Panhandle ManagementlTom Curtiss as part of the HOA billing process.
Proposed Acquisition Terms:
TIC sold the sewer system to Gem State for $1,388,860 and had a contract with Gem State to
sell the water system for $821,672. In addition, TIC was to receive an earn-out payment from
Gem State in January 2026 equal to a 5.5 x multiple of revenue collected for 2025 LESS the
amounts already paid ($1,388,860 + $821,672). These amounts represent a significant
discount to both the amounts TIC has invested in the systems during its period of ownership
and an even steeper discount to the actual value of the system components due to how the
legacy systems were acquired by TIC.
Thus, TIC proposes that the HOA acquire both of these systems for a total of $2,210,532 up-
front, with an earn-out amount to be calculated just as was in the Gem State agreements to be
paid in January 2026. In lieu of an earn-out in 2026, TIC would agree to a fixed total purchase
price of $2,400,000 up-front for both systems with no future earn-out payment.

I am working with lenders who offer financing to HOAs and other non-profits that own private
water and sewer systems at very favorable terms through a USDA Rural Development Loan
Guarantee Program. This favorable debt option is not available to for-profit owners and thus is
yet another reason that the most logical owner of these systems is the HOA.
Financial Summary:
Attached is a financial summary showing the operating results for 2022 during which TIC owned
both systems, 2023 during which TIC owned the water system and Gem State owned the sewer
system, and a pro forma summary for 2024 during which the systems will again be under
common ownership of either TIC or the HOA.
Adjustments to 2022 & 2023 Results:
Increase in Total Monthly Fees for Both Water and Sewer: This is based upon several
factors — (1) an increase in total lots being serviced as the development parcels are brought
on-line (Oxbow, S-Lots, R-Lots and Jim Brown Way), a number that will increase every year; (2)
reduced default rates due to the HOA having lien rights to collect; and, (3) commencement of
the collection of hook-up fees related to new construction on individual lots not sold by TIC or for
which others are paying for the infrastructure.
Reduced Legal & Professional Fees: While this will not likely be zero going forward, the
historical legal and professional fees were higher due to the costs of litigation incurred by TIC to
acquire the systems, costs to sell both systems to Gem State (even though only the sewer
system closed), and related engineering fees associated with both. Going forward, such costs
should be limited to monitoring and annual reporting by outside engineers, and minimal legal
fees.
Reduced Repair & Maintenance Costs: Significant costs and capital expenses were incurred
by both TIC and Gem State to correct legacy issues primarily related to deferred maintenance.
It is our understanding that most of these issues have been corrected, including the most
serious, and thus most expensive, and ongoing repair and maintenance costs should normalize
at an annual level that is less than those incurred in 2022 and 2023.
Proposed Loan Terms: The proposed loan terms are based on preliminary discussions with
representatives from USDA, and one of its approved lenders under its Rural Development Loan
Guarantee Program, which is specifically tailored for community water and sewer systems
owned by HOAs and other non-profit organizations. This is a subsidized program supported by
United States government guarantees and thus the terms including the interest rate, term and
amortization and loan-to-value are all more favorable than those available through standard
commercial loan programs and/or available to for-profit owners of such systems. The proposed
terms shown on the attached summary are an estimate and could in fact be more favorable as
the USDA Rural Development Loan Guarantee Program provides attractive, below-market rates
and favorable terms assuming the transaction otherwise satisfies the program requirements.

Financing Alternatives & Considerations: Other financing alternatives include: 1) TIC
carrying a portion of the sale price - ie seller financing; and, 2) a special assessment to each
property owner for some or all of the purchase price to avoid debt and obtain revenue
generating assets. In all cases, TIC would be willing to set aside up to $200,000 from the sale
proceeds to immediately fund a reserve account, assuming those funds would be returned to
TIC at a modest interest rate within a reasonable amount of time.
[SEE ATTACHED TIC WATER & SEWER SYSTEMS - CONSOLIDATED PROFIT & LOSS]

TIC Water & Sewer Systems - Consolidated
Profit & Loss
January 2022/December 2023/Pro Forma 2024
2022 2023 Pro Forma 2024
Income
Sewer Monthly Service Fees(1) 136,016.32 260,000.00 270,000.00
Water Monthly Service Fees(2) 100,000.00 154,967.11 170,000.00
Total Monthly Service Fee Income 236,016.32 414,967.11 440,000.00
Hook-Up Fees 0.00 0.00 30,000.00
Gross Income 236,016.32 414,967.11 470,000.00
Expenses
Bank Charges 270.00 180.00 300.00
Billing Service 10,908.81 2,349.60 12,000.00
Equipment Rental 25,132.00 0.00 10,000.00
Insurance 2,923.00 2,340.00 3,500.00
Legal and Professional Fees(3) 53,140.91 18,133.78 10,000.00
Office Supplies 0.00 634.31 1,000.00
Operation&Management Fee 45,100.00 26,800.00 60,000.00
Property Tax Exp 3.06 3,000.00 3,500.00
Repairs and Maintenance(4) 146,185.22 246,402.96 125,000.00
Utilities 10,350.53 6,302.07 12,000.00
Total Expenses 294,013.53 306,142.72 237,300.00
Net Operating Income (57,997.21) 108,824.39 232,700.00
(Before Interest,Taxes, Depreciation&Amortization)
Proposed Loan Terms(5)
Loan Amount 2,400,000.00
Loan Term&Amortization in Years 30.00
Annual Loan Interest Rate 7%
Annual Debt Service Payments 191,608.00
Debt Service Coverage Ratio 1.21
Footnotes:
(1) As reported by Gem State for Sewer in 2023 for full year of ownership in 2023.
(2) Total collected from Gem State for Water in 2023 under Operations Agreement with TIC Utilities.
(3) Legal fees in 2022 and 2023 are mostly non-recurring due to litigation to acquire in 2022 and disposition costs in 2023.
(4) Repairs in 2022 and 2023 are mostly non-recurring due to correction of deferred maintenance prior to acquisition.
(5) Proposed loan terms are based on conversations regarding available USDA Rural Development loan options.

TIC utilities Invoice
PO Box 3388
Coeur D Alene ID 83816
1-877-755-9287 Invoice#: 17192
Invoice Date: 1/1/2024
Due Date: 1/31/2024
Bill To:
Christopher&Meleah Norton
346 North Star Ln
Sandpoint, ID 83804
Item Description Amount
Water Water Invoice for January, February and March. 135.00
2o-- 21
Total $1 as.00
Balance Due $135.00
Lot 2.Blk 5,GTE 4
Please make checks payable to:TIC Utilities,LLC
EXHIBIT 3

TIC Utilities
PO Box 1544 Invoice
Sandpoint, ID 83864
1-208-255-1645 ?o
T 11
•i• Invoice#: 17777
UTILITIES Invoice Date: 9/30/2024
Due Date: Due Upon Receipt
Bill To:
Christopher&Meleah Norton
346 North Star Ln
Sandpoint, ID 83864
Account# Lot 2.Blk 5,GTE 4
Doscription Amount
Water Invoice for July, August, September 135.00
Balance Due $135.00
Please make checks payable to:TIC Utilities,LLC
[e-mail]
EXHIBIT 4

TIC Utilities Invoice
PO Box 1544
Sandpoint, ID 83864
1-208-255-1645
I Invoice M 18124
UTILITIES Invoice Date: 12/30/2024
Due Date: Due Upon Receipt
Bill To:
Christopher&Meleah Norton
346 North Star Ln
Sandpoint, ID 83864
Account# Lot 2.Blk 5,GTE 4
Description Amount
Water Invoice for October, Novernber, December 135.00
Balance Due $135.00
Please make checks payable to:T1C Utilities,LLC
[e-mail]
EXHIBIT 5

TIC Utilities
PO Box 1544 �nVO�Ce
Sandpoint, ID 83864
1-208-255-1645 T IC�
Invoice#: 17777
UTILITIES r Invoice Date: 9/30/2024
IDue Date: Due Upon Receipt I
Bill To:
Christopher&Meleah Norton
346 North Star Ln
Sandpoint, ID 83864
Account# Lot 2_Blk 5,GTE 4
Description Amount
Water Invoice for July,August, September 135.00
Balance Due $135.00
Please make checks payable to:TIC Utilities,LLC
[e-mail]

TACC)MA %OVA Sre3:. '
OLYMPIA WA
TIC Utilities, LLC 33AN2025 P14 2 L
PO Box 1544
Sandpoint, ID 83864
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[e-mail]
From: Leslie Abrams-Rayner <[e-mail]>
Sent: Wednesday, October 9, 2024 2:51 PM
To: Read Tuddenham
Cc: Cynthia Finch
Subject: RE: [Ext] Request for Invoice
Hi Read,
I spoke with Cynthia after she got off the phone with you and she filled me in on the
conversation. While we did physically receive the check, we didn't process it — it was passed
onto TIC for processing, however due to concerns by our office about payments being missed
by TIC during this transition, Cynthia made sure to notate the information in support of the
customers before handing over the checks. Cynthia said that she did indeed notate a check
was received and passed onto TIC for processing.
Gem State did NOT issue 3rd quarter invoices in 2024.
Regulation will be good for the homeowners - the IPUC is very fair and a great place for
customers to be able to advocate for themselves. I truly appreciate their role in the for-profit
utility industry. If you ever have any questions regarding the process, please free to reach out
— I have been working with them almost 2 decades and find their involvement to be crucial in
the continued operation of healthy utilities.
Best,
Leslie Abrams-Rayner
General Manager
Phone: [phone]
Email: [e-mail]
250 NW BLVD Suite 210
Coeur D Alene ID 83814
www.gemstate-water.com
From: Read Tuddenham <[e-mail]>
Sent: Wednesday, October 9, 2024 2:05 PM
To: Leslie Abrams-Rayner<[e-mail]>
Subject: [Ext] Request for Invoice
EXHIBIT
1

CAUTION: This email originated from outside NW Natural Water. Please DO NOT CLICK
LINKS OR OPEN ATTACHMENTS unless you recognize the sender and know the content is
safe.
Ms. Abrams-Rayner,
Thank you acting on my email from earlier today. Your associate called me and explained what happened
and agreed to send me an email acknowledging receipt of my checks for third quarter water and their
subsequent transfer to TIC Utilities.All I'm trying to do is get acknowledgement that I paid the third
quarter fees last July. Unfortunately, our call got cut off before I could confirm that no invoices were
issued by Gem State for the third quarter.
For your information TIC Utilities has been issued a CPCN by the IPUC to supply water to the Idaho Club
community.The commission order was dated 6 September 2024.The announcement from TIC Utilities is
below as well as a link to the commission order.
Thank you again for your assistance.
Best regards,
Read Tuddenham
https://If-puc.idaho.gov/WebLink/DocView.aspx?dbid=0&id=137341
Read S. Tuddenham
512 S. Idaho Club Dr.
Sandpoint, ID 83864
208-265-8077(H)
513-290-5765(C)
rtudden ham(aUrontier.corn
Begin forwarded message:
From: Read Tuddenham <rtuddenham(a_frontier.com>
Subject: Request for Invoice
Date: October 9, 2024 at 10:39:21 PDT
To: Leslie Abrams-Rayner <leslieCcDgemstate-water.com>
Miss Abrams-Rayner,
Going back through my records, I've been unable to locate a copy of my invoices for water
dated the end of June or beginning of July 2024. 1 believe you were still billing and collecting
fees for water service for TIC Utilities. I pay utilities for three lots:
Lot 7, Blk 2, GTE 2
Lot 8, Blk 10, GTE 3
Lot 13 Blk 4, GTE 3
Please email me copies of the invoices to complete my records. What months of water
service did the June/July water invoices cover?
I have copies of my sewer service invoices.
Thank you for your assistance.
Best regards,
Read Tuddenham
2

Read S. Tuddenham
512 S. Idaho Club Dr.
Sandpoint, ID 83864
208-265-8077(H)
513-290-5765(C)
rtudden ham(a)frontier.com
3

[e-mail]
From: [e-mail]
Sent: Thursday, October 10, 2024 11:48 AM
To: 'Dianne'; 'Tom Curtiss'
Subject: TIC Utilities Invoice for 3rd Quarter water(July,August and September)
Attachments: 2024 TIC Utilities Payments.pdf
Dear Tom and Dianne:
We received TIC Utilities most recent invoice (Invoice #: 17777 dated 9/30/2024) for water
service for July, August and September. Until this current invoice, TIC Utilities has always
invoiced in advance, rather than in arrears. The January invoice was for January, February and
March, and the April invoice was for April, May and June. We did not receive an invoice in
July for the 3rd Quarter (July, August and September). Nevertheless, we sent a check to TIC
Utilities for the 3rd Quarter water.
I am attaching copies of the three checks we have sent to TIC Utilities (January 26, 2024, May
1, 2024 and July 16, 2024) for the 1st, 2nd and 3rd quarter water payments. It appears that Mr.
Haberman personally endorsed the July 16, 2024, payment for the 3rd Quarter.
Now that TIC Utilities appears to be invoicing the homeowners in arrears, please credit my
account for the 3rd quarter water invoice for the July 16, 2024, payment previously made. If
TIC Utilities intends to invoice in arrears, then my next payment will be due in December 2024
or January 2025. In the unlikely event that TIC Utilities wants to revoke their intention to
invoice in arrears and go back to invoicing in advance, please let me know and I will send a
check for October, November and December.
Thank you for your anticipated cooperation and assistance in this matter.
Sincerely,
Chris Norton
Chris and Meleah Norton
346 North Star Ln.
Sandpoint, Idaho 83864
Chris Phone: [phone]
Meleah Phone: [phone]
Chris Email: chrisnortoniphonekgmail.com
Meleah Email: meleahnortonkgmail.com
EXHIBIT 7
1

Water Tariffs Approved by the IPUC from 2022 - 2025
Charge per 1,000 Gallon for Volume
Per Order Monthly Base Charge Volume Included in Base Case Included in Charge/1,000 Gat Connection Hook- Reconnection Insufficient Meter Test(if eror Monthly Charge for Monthly Charge for
Company Number Effective Date (1 inch Meter Size) (748 Gal/100 Cubic Ft.) Base Charge over Base Level Amt. up Fee Charge Funds Charge 1.5%or less) 15,000 Gallons 27,779 Gallons
Algoma Water Company 36057 and 36012 12/1/2023 $ 54.00 $ - $ 25.00 $ 54.00 $ 54.00
Atomic Water Works 36018 10/31/2023 $ 55.00 $ - $ 200.00 $ 75.00 $ 20.00 $ 55.00 $ 55.00
Capitol Water Corporation 36457 1/1/2025 $ 17.60 $ 1.928640 6,844 $ 1.10 $ 20.00 $ 15.00 $ 45.54 $ 57.95
Dry Creek Water Company LLC 36430 1/1/2025 $ 47.50 $ 2.00 $ 500.00 $ 100.00 $ 25.00 $ 50.00 $ 77.50 $ 103.06
Falls Water Co.,Inc. 36062 and 36027 12/15/2023 $ 31.68 $ - 11,0001$ 0.64 $ 600.00 $ 20.00 $ 20.00 $ 10.00 $ 34.24 $ 42.42
Gem State Water Company(Spirit Lake East
Water Company) 35728&35788 3/1/2023 $ 35.00 $ - 7,500 $ 1.88 $ 5,500.00 $ 16.00 $ 20.00 $ 53.90 $ 86.10
Gem State Water Company(Diamond Bar
Estates) 35729&35788 3/2/2023 $ 41.00 $ - 7,500 $ 2.45 $ 5,500.00 $ 16.00 $ 20.00 $ 59.38 $ 90.68
Gem State Water Company(Lynnwood
Water) 35730&35788 3/3/2023 $ 35.00 $ - 15,000 $ 2.45 $ 5,500.00 $ 16.00 $ 20.00 $ 35.00 $ 66.31
Gem State Water Company(Bitterroot Water
Co.) 35731&35788 3/4/2023 $ 35.00 $ - 10,000 $ 2.45 $ 5,500.00 $ 16.00 $ 20.00 $ 47.25 $ 78.56
Gem State Water Company(Troy Hoffman
Water Corp.) 35732&35788 3/5/2023 $ 35.00 $ - 7,500 $ 2.45 $ 5,500.00 $ 16.00 $ 20.00 $ 53.38 $ 84.68
Gem State Water Company(Happy Valley
Water System) 35733&35788 3/6/2023 $ 35.00 $ - 15,000 $ 1.45 $ 5,500.00 $ 16.00 $ 20.00 $ 35.00 $ 53.53
Kootenai Heights Water System 36055 11/1/2023 $ 57.58 $ $ 50.00 $ 57.58 $ 57.58
North Star Water,LLC 8/23/2022 $ 71.30 $ 35.00 $ 20.00 $ 71.30 $ 71.30
Picabo Water System LLC 35437 6/22/2022 $ 66.00 $ 500.00 $ 20.00 $ 66.00 $ 66.00
Syringa 36394 8/14/2024 $ 60.00 $ 2.500000 20,000 $ 4.00 $ 97.50 $ 141.12
Veolia Water Idaho,Inc. 35783 5/1/2023 $ 9.16 $ 0.761408 2,244 $ 0.96 $ 25.00 $ 20.00 $ 20.00 $ 10.00 $ 33.57 $ 55.12
Veolia Water Idaho,Inc.(Non-Metered) 35783 5/1/2023 $ 47.15 $ 25.00 $ 20.00 $ 20.00 $ 10.00 $ 47.15 $ 47.15
VPInc.Water System 36393 9/3/2024 $ 75.43 $ - $ 50.00 $ 20.00 $ 75.46 $ 86.06
Average: $ 44.91 $ 0.370718 10,259 $ 1.98 $ 2,904 $ 31 $ 20 $ 20 $ 55.49 $ 72.03
TIC Proposed Rates: $ 150.00 7,500 $ 10.00 $ 2,500 $ 2,500 $ 100 $ 500 $ 225.00 $ 352.79
Percent TIC Proposed Tariff Rates are above the Average: 334% 73% 504% 86%1 8004% 600%1 2500% 406% 490%
Exhibit 8

[e-mail]
From: William Haberman <[e-mail]>
Sent: Monday, March 25, 2024 5:23 PM
To: Tom Curtiss; David Reed; Marty Quill; Read Tuddenham; Chris Norton
Subject: Offer to Sell Water System
Board —Valiant is hereby revoking its offer to sell the water system to the HOA. We may or may not decide to revisit
this at a later date. But,for now, there is no longer a need for a water and sewer committee. Thanks. Bill
EXHIBIT 9
1

APPENDIX C
FIRE HYDRANT LOCATIONS AND DISTRIBUTION
The provisions contained in this appendix are not mandatory unless specifically referenced in the adopting ordinance or legislation of the jurisdiction.
User note:
About this appendix:Appendix C focuses on the location and spacing of fire hydrants, which is important to the success of fire-
fighting operations The difficulty with determining the spacing of fire hydrants is that every situation is unique and has unique
challenges Finding one methodology for determining hydrant spacing is difficult This particular appendix gives one methodology
based on the required fire flow that fire departments can work with to set a policy for hydrant distribution around new buildings and
facilities in conjunction with Section 507 5
SECTION C101
GENERAL
C101.1 Scope.
In addition to the requirements of Section 507.5.1,fire hydrants shall be provided in accordance with this appendix for the protection of
buildings,or portions of buildings,hereafter constructed or moved into the jurisdiction.
SECTION C102
NUMBER OF FIRE HYDRANTS
C102.1 Minimum number of fire hydrants for a building.
The number of fire hydrants available to a building shall be not less than the minimum specified in Table C102.1.
EXHIBIT 10

TABLE C102.1REQUIRED NUMBER AND SPACING OF FIRE HYDRANTSh
FIRE-FLOW MINIMUM NUMBER OF AVERAGE SPACING BETWEEN MAXIMUM DISTANCE FROM ANY POINT ON STREET
REQUIREMENT(gpm) HYDRANTS HYDRANTS,,b,c,f,9(feet) OR ROAD FRONTAGE TOAHYDRANT(J
1,750 or less 1 500 250
1,751-2,250 2 450 225
2,251-2.750 3 450 225
2,751-3,250 3 400 225
3,251-4.000 4 350 210
4,001-5,000 5 300 180
5,001-5.500 6 300 180
5,501-6,000 6 250 150
6,001-7.000 7 250 - - 150
7,001 or more 8 or more 200 120
For St.1 foot=304.8 him,1 gallon per minute=3.785 Um
n.Reduce by 100 feet for dead-end streets or roads.
b Where streets are provided with median dividers that cannot be crossed by fire fighters pulling hose lines,of where arterial streets are provided with four or more traffic lanes
and have a traffic count of more than 30,000 vehicles per day,hydrant spacing shall average 500 feet on each side of the street and be arranged on an alternating basis
-
c Where new wafer mains are extended along streets where hydrants are not needed for protection of structures of similar fife problems,fire hydrants shall be provided at
spacing not to exceed 1,000 feet to provide for transportation hazards.
d Reduce by 50 feet for dead-end streets or roads.
e.One hydrant for each 1,000 gallons per minute or fraction thereof_
f.A 50-percent spacing increase shall be permitted where the building is equipped throughout with an approved automatic sprinkler system in accordance with Section
903.3.1.1 of the International Fire Code.
g A 25-percent spacing increase shall be pefmined where the building is equipped throughout with an approved automatic sprinkler system in accordance with Section
9033.1.2 or 9033.1.3 of the international Fire Code or Section P2904 of the International Residential Code.
It The fire code Official Is authorized to modify the locatioq number and distribution of fife hydrants based on slle-specific constraints and hazards.
SECTION C103
FIRE HYDRANT SPACING
C103.1 Hydrant spacing.
Fire apparatus access roads and public streets providing required access to buildings in accordance with Section 503 shall be provided with
one or more fire hydrants,as determined by Section C102.1.Where more than one fire hydrant is required,the distance between required fire
hydrants shall be in accordance with Sections C103.2 and C103.3.
C103.2 Average spacing.
The average spacing between fire hydrants shall be in accordance with Table C102,1.
Exception:The average spacing shall be permitted to be increased by 10 percent where existing fire hydrants provide all or a portion of
the required number of fire hydrants.
C103.3 Maximum spacing.
The maximum spacing between fire hydrants shall be in accordance with Table C102.1.

SECTION C104
CONSIDERATION OF EXISTING FIRE HYDRANTS
C104.1 Existing fire hydrants.
Existing fire hydrants on public streets are allowed to be considered as available to meet the requirements of Sections C102 and C103.
Existing fire hydrants on adjacent properties are allowed to be considered as available to meet the requirements of Sections C102 and C103
provided that a fire apparatus access road extends between properties and that an easement is established to prevent obstruction of such
roads.
SECTION C105
REFERENCED STANDARD
International Residential Code Table C102 1

CLOSEST FIRE HYDRANTTO 346 NORTH STAR LN.
Closest Fire A TA
Hydrant to
North Star Ln.
�l
f
Y
Moose Mtn.
Booster and
Reservoir
• O
346 North Star Ln. _
EXHIBIT 11

A
Invoice CL
(p K
= 2
Panhandle Pump Date: I CD
1/31/1 ;1
Box 387 Invoice #:
� K
Q Ponderay. ID 83852
208-263-7867 Sale code ID
Andy Hartle
P O Box 987
Sandpoint ID 83864 ELE 021187
RCT 35175
208-946-1007 PLB 16436
Authorized: Job Site Terms Due
Andy Norton House
Aork Date Concern
Well Taa No
1/16/20
Pump & Drive: _
1 StaRite 3hp 30 Pump, Yaskawa VFD & Transducer, PS019 Tank $ 3,612.00 3,612.00
Tank T w/union, Pressure Gage, Boiler Drain, 75# Pressure Relief
Installation of Pump. Drive, Tank, Gage. Drain, Pressure Relief Valve _
8 1 Technician & 1 Helper 80.00 640.00
Electrical:1— 70amp Disconnect - 74.30 74_30
1 40amp Breaker 22.00 22.00
1 6x6x4 PVC Juntion Box 22.70 22.70
4x4x2 PVC Junction Box 11.80 11.80
Installation of electrical: Dis_c_o_n_nect,_iunction boxes & breaker _
1
2 1 Technician & Helper -_ 80.00 160.00
Plumbing: -------_--------------•----- -----
1 1 1/4" 80DI Check Valve 31.50 31.50
1 Lot 1'/4" Pex,(20)Pipe, (1)Ball Valve,(2) MA, (6) 90°,(15) Crimp 144.50 144.50
1 Lot 1'/" Galvy,(1) Street El, (2)90°,(3)Bush ings,(2)Ball Valves 163.10 163.10
(1) Plug, (2)1"x4" Nipples, (1) SS '/4x6 Nipple,(1) '/a Brass Coupling
1 1/2" Galvy T, 1" Galvy Union - -- ` ----- -
Installation of additonal n9 requested uested b lumber I ---
plumbing--- q Y P -
2 `_�` ,1 Technician & 1 Helper 80.00 160.00
r.� -
72
Mileage 0.90 64.80
Subtotal $ 5,106.70
Received by Sales Tax 251.57
Payment made by Amount Due $ 5,358.27
If payment is not received as stated above, interest wll be charged at 1% per month
EXHIBIT 12

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DURACHOICE
EXHIBIT 13
1
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EXHIBIT D
PROPOSED INIPROVEM);NTS&ESTIMATED CONSTRUCTION COSTS
Proposed water and sewer improvements include those necessary for water supply production,
treatment,storage and distribution facilities, and wastewater collection,treatment and disposal
facilities,to initially serve 30 residential dwelling units with the ability to expand to
approximately 425 residential dwelling units.
THE IDAHO CLUB
ESTIMATED WATER&SEWER INFRASTRUCTURE COSTS
Description Amount
Acquisition of Existing Water Infrastructure $1,200,000 j
New Booster Station $400,000
Future Water Lines $400,000
Acquisition of Existing Sewer Infrastructure $1,400,000
New Lift Stations $350,000
Future Sewer Lines $400,000
Stormwater System Improvements $350,000
I
Total Costs $4,500,000
I
Source: Valiant Idaho,LLC based on engineer estimates,
i
I
PETITION FOR THE CREATION AND ORGANIZATION OF THE IDAHO CLUB WATER
AND SEWER DISTRICT-IS
Exhibit 14