20260729Comment_1.pdf

From: Cristina Jacuzzi <[e-mail]>
Sent:Tuesday, July 28, 2026 5:54 PM
To: secretary<[e-mail]>
Cc: Dalila Martinez <[e-mail]>; Rachel Bonilla <rbonillal 1 @yahoo.com>;
Virginia Bradley<[e-mail]>
Subject: Case No. SSW-W-26-02-Notice of Supplemental Information
Dear Commission Secretary,
Please include the attached Supplemental Statement of the Southshore Subdivision
No. 2 Homeowners Association in the record for Case No. SSW-W-26-02.
The attached Supplemental Statement provides additional factual information, including
recent developments involving DEQ since the HOA's previous statements, for the
Commission's consideration.
Thankyou foryour consideration.
Respectfully,
Cristina Jacuzzi
President
Southshore Subdivision No. 2 Homeowners Association

Statement of the Southshore Subdivision No. 2 Homeowners
Association
The original developer of Southshore Subdivision No. 2 was Ed Hendershot. During
development, the community water system was operated under the name Southshore Water
Company. That name appears throughout the historical engineering and regulatory documents,
including the F&M Reports and C&M Reports.
Those historical documents also reflect the original developer's stated plan that the community
water system would ultimately belong to and be maintained by the Southshore Subdivision No.
2 Homeowners Association. That intent is further reflected in the recorded subdivision plat,
which states that the domestic water system is owned and maintained by the HOA and identifies
the system as part of the subdivision's common facilities.
Homeowners who purchased property within the subdivision also received documents
representing that the community water system and associated water rights would belong to the
homeowners through their Association. The recorded deeds conveying the individual lots did not
reserve, exclude, or separately sever Water Right No. 63-32259 or the community water system
from the subdivision property. The Association has not identified any recorded severance in
those deeds at the time of the homeowners' purchases or in the current Canyon County land
records.
Mr. Hendershot's company later ceased doing business, and the remaining subdivision property
was acquired through foreclosure by First Security Bank. Hubble Homes subsequently
purchased the subdivision from First Security Bank and continued its development. When the
public water system account was later established with DEQ, the name Southshore 2 Water
Company began appearing in DEQ's administrative records. However, the historical
engineering documents remained part of the system's permanent history and continued to
reflect both the system's original development and the stated plan that it would belong to the
HOA. The Association has been unable to identify any recorded deed, bill of sale, assignment,
severance, or other instrument demonstrating that ownership of the community water system
infrastructure or its associated water right was transferred to a separate legal entity during that
transition.
Consistent with the original developer's stated plan, the documents provided to homeowners,
and the recorded plat, Hubble Homes conveyed Lot 16—the property containing the well house
and community water system infrastructure—to the HOA by recorded Warranty Deed in 2015.
The deed contains no reservation or exclusion of the water system infrastructure or associated
water right.
The Association therefore respectfully asks a simple question:

How and when did Southshore 2 Water Company LLC legally acquire the community
water system assets it now claims to own?
Mr. Martin has identified various wells, pumps, distribution facilities, and related infrastructure as
assets of Southshore 2 Water Company LLC. However, the Association has been unable to
locate any recorded deed, bill of sale, assignment, easement, or other instrument in the
Canyon County land records demonstrating that these community water system assets were
ever legally conveyed to Southshore 2 Water Company LLC. If those assets were, in fact,
owned by Southshore 2 Water Company LLC, the Association respectfully requests that the
Commission require verification of when those assets were acquired, from whom they were
acquired, and the legal instrument by which they were conveyed.
Likewise, substantial questions remain regarding Water Right No. 63-32259. The Association
respectfully submits that an unresolved legal question remains as to whether the water right
could be transferred separately in 2017 after Lot 16 and the community water system had
already been conveyed to the HOA in 2015. If the water right had become appurtenant to Lot 16
under Idaho law, the subsequent transfer raises significant legal questions that are presently
before the courts. As IDWR has acknowledged, recording a transfer does not constitute a
determination of legal ownership or the legal validity of the transfer itself.
Since the filing of this case, the HOA submitted its ownership documentation to DEQ for
consideration. In response, DEQ advised the Association that, because ownership is currently
the subject of pending litigation, it will not review or evaluate ownership documentation until the
dispute has been judicially resolved.
More importantly, DEQ effective July 28th, 2026 also advised the Association that it has
removed Southshore 2 Water Company LLC from the owner designation field in its database.
DEQ's owner designation field is now blank, and DEQ has confirmed that it will not designate
any owner until ownership has been determined by the courts.
DEQ stated:
"We currently do not have an owner designated in our database for this system and
will not until the dispute is judicially resolved."
This development is significant. The agency responsible for regulating the public water system
no longer designates any owner in its records and has adopted a neutral administrative position
pending judicial resolution.
Accordingly, the Association respectfully asks the Commission to consider the following
undisputed facts:
• DEQ's owner designation field for this public water system is currently blank pending
judicial resolution.
• DEQ has declined to evaluate ownership documentation while the litigation is pending.

• No recorded conveyance has been identified in the Canyon County land records
establishing that the community water system infrastructure was ever legally transferred
to Southshore 2 Water Company LLC.
• Serious legal questions remain regarding whether Water Right No. 63-32259 could have
been validly transferred after Lot 16 had already been conveyed to the HOA.
• The HOA owns Lot 16, financially maintains the common property upon which the
community water system is located, and represents every homeowner who depends
upon the system for domestic water service.
The Association recognizes that the Idaho Public Utilities Commission is not the forum to
determine ownership of real property or water rights. Those issues are being addressed through
the appropriate legal process. However, the Commission is being asked to regulate a public
utility whose ownership remains unresolved.
Since acquiring Lot 16 in 2015, the HOA has maintained that it acquired the community water
system infrastructure together with the responsibilities associated with operating and
maintaining that system. The HOA has never entered into a recorded agreement, contract,
easement, lease, Water System Management Agreement, or any other legal instrument
authorizing Southshore 2 Water Company LLC to own, operate, manage, or bill the
homeowners for the community water system. Despite extensive review of the public records,
the Association has been unable to identify any recorded conveyance or agreement establishing
such authority.
As explained in the Association's prior submission, the HOA also lost the opportunity to
establish itself as the administrative contact for the community water system in 2017. After the
homeowner-controlled Board was formed and a new HOA management company had been
retained, DEQ sent its annual administrative correspondence to the administrative contact listed
in its records. Rather than allowing that correspondence to reach the newly formed HOA Board,
Mr. Martin requested that DEQ redirect future correspondence to a new post office box
associated with Boardwalk Management, the management company he controlled. As a result,
the HOA never received DEQ's administrative correspondence and remained unaware that
DEQ's administrative records had not transitioned to the HOA. It was not until 2026, when the
newly established HOA Board discovered DEQ's 2017 correspondence and related
records, that the Board first learned it had never received those documents and, as a
result, had lost the opportunity in 2017 to request that DEQ update its administrative
records to reflect the HOA's ownership position, its Board of Directors, and its new HOA
management company.
As explained earlier, the HOA came before this Commission seeking assistance because
homeowners continue to receive water bills from an entity with which they have no recorded
legal relationship. The HOA is not asking the Commission to determine legal ownership of the
community water system or Water Right No. 63-32259. Those issues are properly left to the
courts.

Rather, the Association respectfully asks the Commission to carefully consider the historical
documents, recorded instruments, and agency records submitted in this proceeding before
continuing to regulate Southshore 2 Water Company LLC as the community's water provider.
The evidence before the Commission reflects that:
• The original developer's documents state the community water system was intended to
belong to the HOA.
• The recorded subdivision plat identifies the domestic water system as owned and
maintained by the HOA.
• Homeowners purchased their properties relying upon documents representing that the
community water system would belong to and benefit the homeowners through their
Association.
• Hubble Homes conveyed Lot 16 to the HOA in 2015 without reserving the community
water system.
• DEQ has removed Southshore 2 Water Company LLC as the designated owner in its
database while ownership remains unresolved.
• The Association has not identified any recorded deed, conveyance, contract, Water
System Management Agreement, or other legal instrument establishing Southshore 2
Water Company LLC's authority to own, operate, or bill for the community water system.
The Association respectfully submits that it is neither fair nor reasonable for Southshore 2 Water
Company LLC to continue billing the homeowners for water service when there is no recorded
legal relationship between the HOA and Southshore 2 Water Company LLC, no recorded
conveyance establishing its ownership of the community water system, and no recorded
agreement authorizing it to operate the system on behalf of the HOA.
Until the ownership issues are resolved by the courts, the Association respectfully requests that
the Commission consider permitting the homeowners, through their elected Homeowners
Association, to operate and manage the community water system that the Association has
believed belonged to it since acquiring Lot 16 in 2015. The Association seeks only to exercise
the rights and responsibilities it believes were conveyed with that property.
Respectfully submitted,
Southshore Subdivision No. 2 Homeowners Association