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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