HomeMy WebLinkAbout20260902Comment_1.pdf From: Cristina Jacuzzi <cristinajacuzzi@gmail.com>
Sent:Wednesday, September 2, 2026 12:54 PM
To: secretary<secretary@puc.idaho.gov>
Cc:Virginia Bradley<virginia@idahohoa.com>; Dalila Martinez <dalila4c@gmail.com>;
Rachel Bonilla <rbonilla11 @yahoo.com>
Subject: Case No. SSW-W-26-02-Southshore Subdivision No. 2 HOA Notice
Dear Commission Secretary,
Please see the attached correspondence from Southshore Subdivision No. 2 HOA
regarding Case No. SSW-W-26-02, Southshore 2 Water Company, and PWS#3140254.
The purpose of this correspondence is to provide formal notice that Southshore
Subdivision No. 2 HOA has assumed direct administrative responsibility for the
community water system effective August 31, 2026, and will no longer require the
administrative, management, billing, or financial services of Southshore 2 Water
Company following the transition period.
Effective October 1, 2026, the HOA will handle billing and financial administration
through Idaho HOA Management.
Please see the attached letter for the details of the transition and the HOA's requests to the
Commission.
Please include the attached correspondence in the record for Case No. SSW-W-26-02 and
provide it to the appropriate Commission Staff for review.
Thank you for your time and consideration in this matter,
Cristina Jacuzzi
President
Southshore Subdivision No. 2 HOA
September 2, 2026
Idaho Public Utilities Commission
Re: Case No. SSW-W-26-02
Southshore 2 Water Company
PWS #3140254
NOTICE OF HOA ADMINISTRATIVE AND
FINANCIAL TRANSITION
Dear Commissioners and Commission Staff:
Southshore Subdivision No. 2 HOA is providing formal notice of a significant change concerning
PWS #3140254, the community water system serving our 15-home subdivision.
Effective August 31, 2026, Southshore Subdivision No. 2 HOA assumed direct
administrative responsibility for PWS #3140254.
The administrative information associated with the public water system has been updated to
reflect the HOA's direct administration. Tom Mehiel will remain the designated licensed operator,
providing continuity in operation, testing, monitoring, reporting and regulatory compliance.
The HOA has also received guidance from the Idaho Department of Water Resources regarding
the domestic-use exemption and the option identified in its guidance as Scenario 7. The HOA
intends to proceed under that framework for qualifying uses of our shared community well.
The HOA owns Lot 16, the common-area property where the domestic well and water-system
facilities are located, and owns and insures that property. Following DEQ's review of the HOA's
recorded documents, Southshore 2 Water Company was removed from the ownership field of
the public water-system record, with ownership left unresolved.
Current Administrative and Financial Transition
The HOA has reviewed the records presently available to it and has not identified a contract,
Water System Management Agreement, or other agreement entered into by the
homeowner-controlled HOA requiring it to use Southshore 2 Water Company for
administration, management, billing or financial services.
The homeowner-controlled HOA has never hired, appointed, or entered into an
agreement with Southshore 2 Water Company or Ryan Martin to provide those services
on behalf of the HOA.
Accordingly, the HOA has assumed direct administration of the community water system.
To provide for an orderly financial transition, Southshore 2 Water Company may complete the
existing September billing period through September 30, 2026.
Effective October 1, 2026, the HOA will handle community water billing and financial
administration through Idaho HOA Management.
Following the September close, the HOA will no longer receive Southshore 2 Water Company's
administrative, management, billing or financial services.
Water-System Financial Records, Accounting and Funds
Our recorded CC&Rs specifically address the financial administration of the community water
system. They provide for an accounting system and at least annual financial reporting, require a
bank account into which water-system charges, fees, assessments and reserve funds collected
from Lot Owners are deposited, and provide that revenues exceeding operation and
maintenance costs are to be held in reserve for future capital expenditures.
Based upon the transition records presently available to the current Board, the
homeowner-controlled HOA did not receive the water-system account balance or a
complete accounting of the water-system funds when the Association transitioned to
homeowner control in 2017.
The HOA presently has a 2022 Balance Sheet and a 2023 Profit & Loss statement, but these
do not provide the complete historical accounting or establish the current balance of the
water-system accounts.
The 2022 Balance Sheet identifies a Relay Operating account and Relay Savings account
with combined bank balances of$10,859.75 as of December 31, 2022.
As part of the current administrative and financial transition, the HOA is requesting that
Southshore 2 Water Company provide:
1. The current balance of all bank, savings, reserve or other accounts presently
holding Southshore community water-system funds, together with documentation
sufficient to verify those balances;
2. Identification of any Southshore community water-system funds that have been
transferred to, held in, or accounted for through any other account;
3. A complete accounting of Southshore community water-system funds beginning
August 7, 2015, the date Lot 16 was conveyed to Southshore Subdivision No. 2
HOA, through September 30, 2026, including all funds collected from homeowners,
deposits, revenues, reserve funds, expenditures, withdrawals, transfers, management
fees, compensation, reimbursements, distributions, and any other transactions involving
Southshore community water-system funds; and
4. Following completion of the September billing period, a final reconciliation and transfer
of the remaining Southshore community water-system account balance to the
HOA's designated water-system account, to be received by the HOA no later than
October 7, 2026.
The HOA has established a designated water-system account for this purpose.
Consistent with the HOA's reading of the financial-accounting provisions of its recorded CC&Rs,
the HOA expects the remaining funds collected from Southshore homeowners for the
operation and reserves of their community water system to be fully accounted for and
transferred as part of this financial transition.
Receipt, deposit, negotiation or acceptance by the HOA of any check, payment or
transfer will not constitute acceptance that the amount represents the complete or
correct water-system balance, approval of the accounting or any prior expenditure,
withdrawal or transfer, or confirmation that the financial accounting has been completed.
The October 7, 2026 deadline for receipt of the accounting and remaining balance does
not constitute an agreed financial closure date. The HOA will consider the financial
accounting complete only after it has received and had a reasonable opportunity to review the
accounting records necessary to reconcile the Southshore community water-system funds and
determine whether the amount transferred represents the complete balance.
The HOA expressly reserves its right to address any discrepancies or additional amounts
identified through that review.
We believe it is important for the Commission to be aware of this financial transition while
Southshore 2 Water Company remains under Commission regulation and has a pending rate
proceeding involving these same 15 homeowners.
The HOA respectfully requests the Commission's assistance within its regulatory
authority regarding verification of the current water-system account balances and
financial records associated with Southshore 2 Water Company's collection and
administration of these funds.
What We Are Asking of the Commission
The circumstances underlying Case No. SSW-W-26-02 have materially changed.
The HOA respectfully asks the Commission to:
1. Recognize that Southshore Subdivision No. 2 HOA assumed direct administrative
responsibility for PWS #3140254 effective August 31, 2026, and that effective October
1, 2026, the HOA will assume direct billing and financial administration of the
community water system through Idaho HOA Management;
2. Recognize that, as part of that financial transition and consistent with the HOA's reading
of the financial-accounting provisions of its recorded CC&Rs, the HOA expects
Southshore 2 Water Company to provide the final accounting and transfer the
remaining Southshore community water-system funds to the HOA's designated
water-system account no later than October 7, 2026;
3. Advise the HOA what, if anything, must occur concerning Southshore 2 Water
Company's CPCN or other PUC authority as it relates to our 15-home subdivision,
now that the HOA has assumed direct administration and, effective October 1, will no
longer receive Southshore 2 Water Company's administrative, management, billing or
financial services;
4. Consider these changed circumstances before taking further action on Southshore 2
Water Company's pending request to increase the rates charged to our homeowners;
5. Advise the HOA regarding any financial records concerning this system that are
presently available through the Commission or this proceeding; and
6. Provide any assistance available within the Commission's regulatory authority regarding
verification of the current account balances, accounting records and remaining
Southshore community water-system funds associated with Southshore 2 Water
Company's collection and administration of those funds.
Going Forward
Our goal is simple: to maintain safe and uninterrupted water service while directly
administering the community water system serving our 15 homes, consistent with our
recorded governing documents and the regulatory guidance we have received.
The HOA is prepared for this transition. Tom Mehiel will continue as the designated licensed
operator, and Idaho HOA Management will assume billing and financial administration beginning
October 1, 2026.
We appreciate the assistance the Commission and its staff have provided while our HOA has
worked through these issues with the other state agencies.
Please include this letter in the record for Case No. SSW-W-26-02.
Please direct questions concerning the transition to:
Southshore Subdivision No. 2 HOA
c/o Idaho HOA Management
Virginia Bradley, HOA Manager
Thank you for your consideration.
Sincerely,
Southshore Subdivision No. 2 HOA
Board of Directors