20250714APPLICATION.pdf

RECEIVED
Spokane Office July 14, 2025
Bank of America Financial Center IDAHO PUBLIC
601 W.Riverside,Suirc 1900 UTILITIES COMMISSION L A W Y E R S
Spokane,Washington 99201-0695
Phone:[phone]
B C W_W-2 5-01 A Professional Service Corporation
Fax:[phone] Wirmon.4Ca;barr bas officer in Spokane,Washingron
website:www.winsioncashati.com and Coeur d'Alene,Idaho
Courtney B.Whitten
[e-mail]
July 14, 2025
Idaho Public Utilities Commission VIA EMAIL:secretga&puc.idaho.gov
Attn: Commission Secretary
PO Box 83720
Boise, ID 83720-0074
Re: Certificate of Public Convenience and Necessity
Bear Claw Water System, LLC
Dear Commission Secretary:
In our share file drive link, please find the Bear Claw Water System's Application for a CPCN.
Please let my office know if you have any questions or concerns.
Very truly yours,
COURTNEY B. WHITTEN
CBW clk
cc: Travis Culbertson
Greg Spurgetis
Beverly L.Anderson Collette C.Leland /D Elizabeth A.Tellessen 'D Of Counsel
Patrick J.Cronin fD Christine M.Meegan '° Kenneth A.Thompson C.Matthew Andersen '° Fred C.Pflanz
Darren M.Digiacinto /D Benjamin H.Rascoff'O Christine Vogel "y Kevin J.Curtis Richard W.Relyea
Scott A.Gingras 'D MT Dalton J.Reynolds 'D Zachary M.Walls /D Carl E.Hueber Jeffrey R.Ropp
Michael T.Howard 11- Gabrielle C.Roth Courtney B.Whitten 'D Nancy L.Isserlis Lucinda S.Whaley
All lawyers admitted in WA. Lawyers admitted in ID,MT,and AT as indicated

Certificate of Public Convenience and Necessity
1. State the Name,Address, and Form of Business:
Bear Claw Water System, LLC
422 W. Riverside Ave., Suite 620
Spokane,WA 99201
a. State the company organized in: Idaho
b. Business organization, i.e. Corporation, Limited Liability Company, Partnership,
Proprietorship, or others: Limited Liability Company
c. Copy of certificate of organization or a certificate of authorityfrom the Idaho
Secretary of State: See, Exhibits A and B
d. Certified copy of Articles of incorporation, by-laws, or other organizational
documents: See, Exhibit C
e. Business Address and/or Mailing Address.
Same as above
2.Attach a geographical map and a legal description reflecting the boundaries for the
certificated area to be served, both in portable document format ("PDF").The legal description
should be provided using one, or a combination of the following preferred formats: (1)
rectangular survey, (2) metes and bounds, and/or(3) lot and block. If the legal description
using any of these formats references a platted property, please provide a copy of the recorded
platted property from the county recorder's office, including the plat map and legal/property
description.
See, Exhibit D for the plat of the Bear Claw Subdivision,which is the area to be served,
and Exhibit E for the legal description of the same.
3. Include a map, in PDF, of the water system that identifies the location of wells, reservoirs,
water lines, booster pumps, valves, etc. If applicable, outline names of other water utilities
near the requested service area and if there is any interconnection agreements in place.
There is one well(tag# E0010087), no booster pumps, and one pump(A 10 hp Franklin
submersible pump that pumps water up to the reservoir). See, Exhibit F for the water
system layout.
4. Attach a copy of Idaho Department of Environmental Quality("DEQ")water system approval
letter, its most recent sanitary survey, and/or any correspondence.
See, Exhibit G, H, I, and J
5.A copy of all water right licenses or permits.
See, Exhibit J

6. Provide the name of the certified water operator with their certificate number.
Martin Lowell, Water Treatment license# is DWT1-17128.The Water Distribution
license# is DWD1-19502.
7. Financial Information: a. Attach a copy of the water company's prior year financial
statements, such as an income statement, balance sheet, or a profit and loss statement;
b. Expected annual revenue with anticipated monthly water rates and other charges;
Approximately$12,500 to $13,000
c. If new water company and no financial history, provide a budget with expected costs
to operate, monthly water rates, and other charges.
NA
8. Does the company have a facility plan? If so, please provide a copy.
Bear Claw Subdivision currently has a Facility Plan being drafted by 7B Engineering
9. Provide a thorough and complete description of the system. This should include any known
deficiencies that need to be addressed to maintain system integrity and to support growth.
The Bear Claw water system is categorized by DEQ as a Very Small Water System.
DEQ provides periodic Sanitary Surveys in which deficiencies are noted and have
been promptly corrected. See, Exhibit G. Currently DEQ is requiring Bear Claw to
drill a second well to support growth.The current system consists of single well that
has a 10 horse submersible pump. Pumping level is 137 feet with a static water level
of 89.5 ft. The pump discharges at about 35 GPM. The water is pumped up the hill to
a 55 thousand gallon rectangular cement reservoir that measures 97 ft by 115 ft. It is
a buried reservoir. The water then flows back to the residents providing correct
water pressure. The mainline piping consists of 2", 4" and 6" schedule 40 PVC pipe,
but mostly 6". There are 3 Waterous brand Fire hydrants located in strategic places
on the system. Their locations are noted on page 2 of Exhibit G.
10. If available, provide the following information for the Company's major equipment:
a. Size and material of distribution piping: The distribution piping consists of 2", 4"
and 6" PVC piping
b. Make, model, and capacity limit of storage tanks/reservoir, whether pressurized or
unpressurized: The distribution piping consists of 2", 4" and 6" PVC piping
c. Make, model, and rating of each booster pump and motor: The submersible pump is
a 10 hp manufactured by Franklin pumps. The model number is 2822029330.
d. Make, model, and rating of each well pump and motor: The submersible pump is a
10 hp manufactured by Franklin pumps. The model number is 2822029330.

e. Make, model, and capacity of all water treatment equipment; The well house has a
chlorine metering pump manufactured by Walchem. Model number is EZB11 D-
VCA.
f.Year, make, model and capacity for a backup generator. Does it have an automatic
transfer switch?There is no Generator or Backup Generator that exists for the
system.
11. Provide the monthly metered amount of water(in gallons) pumped from each water
source, for the past three year. If available, provide it in Microsoft Excel format. See, Exhibit K
12. Provide any customer complaints received from customers regarding low water pressure,
interruption of service, or poor water quality over the past three years.
The owner of the Bear Claw Water System is aware that complaints have been made to
the Idaho Public Utilities Commission, but is not itself in possession of those complaints.
It has not directly received any other complaints, nor received any through its operator
Mr. Lowell.Through litigation involving the water system, customers have testified to
observing a loss of water pressure in the system. See, 1112 of Exhibit L.
13. Regarding the water system connections, please provide:
a. Total connections currently receiving water, and identify how many are either
residential, commercial, or other: Mr. Lowell believes there are 28 total connections.
He believes there are 24 connections that serve a built residence.All connections
are residential connections.
b. Additional connections the water system can provide water too. This could include
vacant lots without service connections; and
As it is currently built,the water system cannot serve any additional connections.
In 2021, a Notice of Moratorium on Connections to Bear Claw Water System was
recorded. See, Exhibit M.
c. If empty/vacant lot, are there meter pits or water service connection at the property
easement?
No
14. Provide a copy of the current rate structure in proper tariff format, and, if available, a
worksheet in Microsoft Excel format, of how it was calculated. If applicable, provide the prior
rates and charges if changed within the past three year.
a. Note: Rate structures vary between a flat-monthly charge to a basic charge with volumetric
rates with allotted water amount at various block tiers. Rate structures could include charges
by meter size and/or type of customer, i.e. residential or commercial. Lastly, rate structures
may include seasonal rates such as summer and winter rates.

To our knowledge, US Bank, in their role as the prior Trustee of the James White Trusts and
sole member of the LLC, was charging$50 per home since at least 2015. But our
understanding is that this was done very informally, as no invoicing was ever sent to the
HOA or to individual lot owners. Some customers would voluntarily pay and for those that
did not, US Bank did not pursue collection of those rates. But no rate structure was ever
put in place, nor is there any information as to how the $50 per month charge was
calculated. For simplicity,the Successor Trustee of the James White Trusts, Jim P.
Spurgetis, has not changed this since taking over in September of 2024. Mr. Lowell
indicates that some residences have meters, but most do not. To prevent any issues, Mr.
Spurgetis has also not pursued payment from any lot owners who are connected to the
water system, but not paying. Exhibit N is a spreadsheet tracking which customers are
paying and which are not.
15. Provide any additional charges and fees, such as hookup charges, reconnection fees, late
fees, etc. NA
16. It is required to inform your customers (if any) of the CPCN application. Provide a copy of a
notice that is brief and describes the service area and current rates (upon request a sample
can be provided). It should include the Commission's contact information:
Idaho Public Utilities Commission
PO Box 83720
Boise, Idaho 83720-0074.
[phone]
See, Exhibit O
17. Attach samples of the following (upon request samples can be provided):
a. Bill invoice/statement
b. Initial Notice-Termination of Service Exhibit P
c. Final Notice-Termination of Service Exhibit Q
d. Annual Summary of Rules
e. Company Tariff-including General Rules and Regulations
f. Company Main Extension Rules