20080722Vol I Show Cause.pdf

O'RIGINAL.BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
FLOATING FEATHER PARTNERS, LLC,
Complainant,
vs.CASE NO. EAG-W-08-01
EAGLE WATER COMPANY,
Respondent.NOTICE OF SHOW
CAUSE HEARING
BEFORE
."
COMMISSIONER MACK REDFORD (Presiding)
COMMISSIONER MARSHA H. SMITH
COMMISSIONER JIM KEMPTON
PLACE:Commission Hearing Room
472 West Washington
Boise, Idaho
DATE:July 2, 2008
VOLUME I - Pages 1 - 67
.
CSB REPORTING
Constance S. Bucy, CSR No. 187
23876 Applewod Way * Wilder, Idaho 83676
[phone] * [phone]
Email csbCiheritagewifi.com
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N
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20
21
22
23
24.25
1 APPEARANCES
2
3 For the Staff:Scott Woodbury, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83720-0074
4
5
6 For the City of Eagle:MOORE SMITH BUXTON & TURCKE
by Susan E. Buxton, Esq.
950 West Bannock, Suite 520
Boise, Idaho 83702
7
8
9 For Eagle Water Company:RICHARDSON & 0' LEARY, PLLC
by Molly O'Leary, Esq.
515 North 27th Street
Boise, Idaho 83702
10
11
12
13
14
15
16
17
18
19
CSB REPORTING
Wilder, Idaho 83676
APPEARANCES
.1 I N D E X
2
3 WITNESS EXAMINATION BY PAGE
4 Susan E.Buxton Ms.O'Leary (Direct)5
(Eagle Water)Commissioner Redford 9
5 Commissioner Smith 10
Commissioner Kempton 15
6 Commissioner Redford 16
7 Robert V.DeShazo Ms.0' Leary (Direct)19
(Eagle Water)Commissioner Redford 37
8 Commissioner Smith 41
Commissioner Redford 47
9 Commissioner Smith 48
Commissioner Redford 49
10 Commissioner Kempton 49
Commissioner Redford 52
11 Mr.Woodbury (Cross)53
Commissioner Smith 56
12.13
14
15
16
17
18
19
20
21
22
23
24.25
CSB REPORTING INDEX
Wilder,Idaho 83676
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1 EXHIBITS
Premarked
Admitted
Premarked
Admitted
Premarked
Admitted
Premarked
Admitted
Marked
Admitted
PAGE
22
22
22
22
41
41
2
3 NUMBER DESCRIPTION
4 FOR THE STAFF:
5 101. Letter from Courtney Beebe to
Scott Woodbury, June 30, 2008
6
102.Executed Consent Order for Eagle
Water Company, February 24, 20067
8 103.Approval of Final Engineering
Report, July 6, 2007
9
104. IDEQ, Consent Order
10
11
12 FOR EAGLE WATER COMPANY:
13 1.Department of Water Resources
Application for Transfer of
Water Right14
15
16
17
18
19
20
21
22
23
24
25
CSB REPORTING
Wilder, Idaho 83676
EXHIBITS
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1 BOISE, IDAHO, WEDNESDAY, JULY 2, 2008, 2:00 P. M.
2
3
4 COMMISSIONER REDFORD: This is the Idaho
5 Public Utilities Commission. It is July 2, 2008. My
6 name is Mack Redford. I'm the Chairman of this hearing.
7 Seated to my left is Marsha Smith, Commissioner. Seated
8 to my right is Jim Kempton, a Commissioner as well. I
9 just wanted to go through a few preliminary matters in
10 this regard. This is an order to show cause hearing and
11 we're going to be governed by Rule 6 of the Idaho Rules
12 of Civil Procedure inasmuch as the Rules of the
13 Commission don't exactly cover orders to show cause.
14 For the record, I'd like to state that on
15 the 19th of June, we received a letter complaint from
16 Mr. Rich Felix, managing member of Floating Feather
17 Partners, LLC. According to the Rules of Idaho Procedure
18 for orders to show cause, there must be a complaint
19 accompanied by an affidavit, but once receiving this
20 complaint, the Commission on its own rules issued an
21 order to show cause and that dispenses with the necessity
22 of having an affidavit.
23 The complaint sets forth several issues
24 regarding Floating Feather Mobile Home Park and the water
25 they are presently receiving, which I understand arises
CSB REPORTING
Wilder, Idaho 83676
1 COLLOQUY
.1 on or near the park and that the water contains
2 unacceptable levels of uranium. As I stated before, the
3 Commission on its own motion has issued the order to show
4 cause. The time is now and so the way we i re going to run
5 this is that we'll take testimony and I noticed that in
6 the audience or sitting at counsel table is
7 representatives of the City of Eaglè, Ms. Buxton, and are
8 you wishing to intervene in this matter, Ms. Buxton? If
9 you are, I i II grant that motion.
10 MS. BUXTON: Mr. Chairman Redford, on
11 behalf of the City of Eagle, Ilm here with Mayor Phil
12 Bandy and we are asking to intervene -- excuse me?.13 COMMISSIONER REDFORD: Do you have your
14 button pushed?
15 MS. BUXTON: I do, actually. The little
16 red light is on.
17 COMMISSIONER REDFORD: Okay.
18 MS. BUXTON: I can actually speak louder,
19 Mr. Redford. I appreciate being recognized. I'm here on
20 behalf of the City of Eagle as its City attorney. With
21 me is Mayor Phil Bandy. We're asking to intervene for
22 the limited purpose of providing information with regard
23 to the conceptual agreement we reached with Eagle Water
24 Company at 1: 30 this afternoon..25 COMMISSIONER REDFORD: Well, thank you
CSB REPORTING
Wilder, Idaho 83676
2 COLLOQUY
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.
.
1 very much. Ms. 0' Leary, it's your show.
2 MS. O'LEARY: Thank you, Chairman Redford.
3 For the record, I am Molly 0' Leary with Richardson &
4 0' Leary, PLLC. We are here today representing the
5 interests of Eagle Water Company. I guess I would like
6 to start off this afternoon by just stating that as
7 Ms. Buxton has already alluded to, the City of Eagle and
8 Eagle Water Company have -- my button isn't on -- have
9 just arrived at an agreement or at least conceptually
10 arrived at an agreement with some pretty solid details to
11 it that we anticipate being able to present to the Eagle
12 Ci ty Council next week.
13 The purpose of that agreement would be to
14 provide Eagle Water with a redundant fire flow pressure
15 that has been required by DEQ. With that in place, an
16 agreement in place, we already have engineering plans for
17 that interconnection that have been approved by DEQ and
18 Mr. DeShazo or Eagle Water is prepared to put that
19 intertie in place physically, so what I'm getting at is
20 this is a very short time frame that we're talking about.
21 We will then have the means to get the DEQ moratorium
22 lifted and there we will be no question that we will be
23 ready, willing and able to serve Floating Feather Mobile
24 Home Park.
25 COMMISSIONER REDFORD: Are you going to
CSB REPORTING
Wilder, Idaho 83676
3 COLLOQUY
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.
. 25
1 put on some evidence?
2 MS. O'LEARY: The evidence that I have
3 basically is to present to you that we have reached an
4 agreement with the City of Eagle. I can go through the
5 general details of that. It's not a final agreement.
6 Susan and I have to hammer out that on a piece of paper
7 and it will go before the City of Eagle on Tuesday
8 night.
9 COMMISSIONER REDFORD: Well, this is an
10 evidentiary hearing and as you know, statements of
11 counsel aren't evidence and we consider this as a fairly
12 significant issue, so are you going to call a witness?
13 MS. O'LEARY: I can call a witness.
14 COMMISSIONER REDFORD: Okay, please do.
15 MS. O'LEARY: All right, I would like to
16 call as a witness Susan Buxton with the City of Eagle.
17 COMMISSIONER REDFORD: Now, Ms. Buxton,
18 after you testify, you're not going to be the attorney
19 anymore?
20 MS. BUXTON: That's correct. The City
21 will be represented by the Mayor and we'll provide
22 al ternati ve counsel, if necessary.
23 COMMISSIONER REDFORD: Okay.
24
CSB REPORTING
Wilder, Idaho 83676
4 COLLOQUY
.1 SUSAN BUXTON,
2 produced as a witness at the instance of Eagle Water
3 Company, having been first duly sworn, was examined and
4 testified as follows:
5
6 COMMISSIONER REDFORD: Ms. O'Leary, if you
7 want to, Ms. Buxton can testify in the narrative if
8 that's your wish.
9 MS. 0' LEARY: I think that would help move
10 things along. Susan is as familiar with the details of
.
. 25
11 this agreement as I am, so I would defer to Susan's
12 narration of that agreement.
13 COMMISSIONER SMITH: But you need to
14 identify her for the reporter.
15
16 DIRECT EXAMINATION
17
18 BY MS. O'LEARY:
19 Yes, would you please state your name forQ
20 the record?
21 A I will.My name is Susan Buxton.My
address is 9,let's see,950 West Bannock,Suite 520.I
am the City attorney for the City of Eagle and I am a
member of the law firm of Moore,Smith,Buxton &Turcke,
but I do have personal knowledge with regard to the
22
23
24
CSB REPORTING
Wilder, Idaho 83676
5 BUXTON (Di)
Eagle Water Company
.1 negotiations and the conceptual agreement that was
2 reached between the City of Eagle and Eagle Water
3 Corporation today during a special City Council meeting
4 that was held at 10: 00 0' clock until approximately
5 1: 15.
6 Q And by personal knowledge, just to be
7 clear for the record, you were present at these
8 negotiations and through the discussions that were held
9 today?
10 A I was.
11 Q All right, thank you. Would you please
12 tell the Commission what transpired at that meeting,.13 special meeting, of the City Council today and the
14 essential points of the agreement that was reached by
15 Eagle Water and the City of Eagle?
16 A Let's see. For the record, to answer that
17 question, I'm looking at several e-mails and two draft
18 agreements and my notes which will have to suffice for
19 the agreement. Basically, what the City of Eagle in
20 concept is looking at agreeing to is connecting with an
21 intertie with a manually controlled gate valve to Eagle
22 Water Company's existing main distribution lines and the
23 Ci ty of Eagle's million gallon storage tank that is now
24 on line and been approved and is operational. For that,.25 there will be a -- Eagle Water Company will construct
CSB REPORTING
Wilder, Idaho 83676
6 BUXTON (Di)
Eagle Water Company
.1 that as required by the City of Eagle's City engineer's
2 requirements.
3 My understanding is that those drawings
4 have already gone to DEQ, last year actually, for this
5 intertie and that the City has been working with Eagle
6 Water Company to work on this intertie agreement for
7 several months, but the intertie was drawn up and planned
8 for and approved and I will testify that the City
9 engineer Kasey Ketterling has been in contact already
10 because of this conceptual agreement with Monty Marcus
11 from DEQ to start -- make sure that everything is in
12 place to be able to start construction immediately. We.13 were even thinking of by potentially tomorrow if
14 Mr. DeShazo would be available for that.
15 Let's see. The interconnection would be
16 for, I agree with Ms. O'Leary that it would be for, fire
17 flow and pressure and it would be for at least one year
18 and it would be a renewable term for that. We would also
19 have obligations for the City and Eagle Water to go ahead
20 and continue that, if necessary, with the understanding
21 that they do plan right now to have an additional well go
22 into place; that the City would have a first right of
23 refusal arrangement with Eagle Water Company in the event
24 that it would decide in the future to sell that system.25 and the City would then have the opportunity to conduct a
CSB REPORTING
Wilder, Idaho 83676
7 BUXTON (Di)
Eagle Water Company
.1 revenue bond election for the approval of such a sale.
2 Q Ms. Buxton, if I may ask you a couple of
3 specific questions. Based on our discussions with the
4 City earlier today, what is your anticipated time line
5 for having a draft ready for the City Council to
6 review?
7 A I anticipate the City Council will be
8 gi ven a draft of the final agreement -- again, like I
9 said, I'll show the Commission, I've got several drafts
10 sitting here -- by Monday for their approval and
11 consideration on Tuesday.
12 Q At their July 8th scheduled Council.13 meeting?
14 A That's correct, and that Council meeting
15 is scheduled for 7: 30 p. m.
16 Q And the City Council based on the
17 emergency meeting that was held today is familiar already
18 with the draft terms that were discussed between Eagle
19 Water and the City of Eagle?
20 A Right. The additional terms that they
21 would be looking at would be the time frame, the 18 --
22 wait, I guess it's an l8-month time frame, I apologize, I
23 will correct myself, it was 18 months, $4,000 per month
24 rate for the intertie that would be a guaranteed time.25 frame. That's the one thing that's a little bit new
CSB REPORTING
Wilder, Idaho 83676
8 BUXTON (Di)
Eagle Water Company
.1 information for the City Council, but they were
2 indicating through our negotiations that you were present
3 at, Ms. 0' Leary, that that was a time frame that they
4 were looking at and the monetary amount was certainly
5 well wi thin the ball park of what they were requesting.
6 Thank you, and assuming that the CityQ
7 Council were to approve this agreement on Tuesday, July
88th, how soon do you anticipate that this interconnection
9 from the City's perspective could actually be put in
10 place?
11
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.
A We would then upon approval of that
12 agreement, which would be Tuesday night, then there would
13 be authorization for Mr. DeShazo to commence Tuesday
14 night if he would like to start digging for lack of a
15 better term.
16 MS. O'LEARY: All right, thank you. I
17 have nothing further at this time.
18 COMMISSIONER REDFORD: I have a couple of
19 questions.
20
21 EXAMINATION
22
23 BY COMMISSIONER REDFORD:
24 Do you have any idea as to the time limitQ
25 for installation and construction of the facilities that
CSB REPORTING
Wilder, Idaho 83676
9 BUXTON (Com)
Eagle Water Company
.1 are necessary to accomplish the intertie?
2 A During our negotiations and our
3 discussions, the City engineer did indicate to us, to the
4 entire group, that he felt that the construction could be
5 completed within one or two days at the most.
6 Q Is this a direct intertie from the City of
7 Eagle directly to Floating Feather or does it go through
8 Mr. DeShazo's Eagle Water Company?
9 A It goes to Mr. DeShazo's main line. I
10 would have to defer to another witness. Mr. DeShazo
11 would know where that intertie is, I believe. I don't
12 have exact location, I apologize..13 Q What's the distance, do you have any
14 idea?
15 A Again, I'd have to defer to Mr. DeShazo.
16 COMMISSIONER REDFORD: Any other questions
17 from the Commission?
18
19 EXAMINATION
20
21 BY COMMISSIONER SMITH:
22 Q I guess I'm trying to remember the last
23 time we were in this Hearing Room and it seemed we were
24 discussing the fact that the City of Eagle intended to.25 purchase Eagle Water Company and that would be concluded
CSB REPORTING
Wilder, Idaho 83676
10 BUXTON (Com)
Eagle Water Company
.1 before the end of 2007. Any recollection of that?
2 A Well, again, as we discussed in that
3 hearing and there was testimony as to the process for the
4 local improvement district that had been put in place at
5 the time of that hearing, a local improvement district as
6 you know requires a notice and public hearings and it
7 requires the City to have gone ahead with the preliminary
8 engineering report and the assessment rolls and those
9 things and that was September, if I recollect the dates
10 correctly, and by September the City had put out the
11 preliminary notices and a hearing was going to be held
12 that next week, which it did get held the next week..13 There were several public hearings and
14 after those public hearings the City then created, we
15 created the district is what the next step is and then
16 after you come up with the preliminary assessment rolls,
17 which the assessment rolls went across 6,000 plus parcels
18 and at that time there was additional public hearings as
19 required by statute and there was quite a bit of
20 questions with regard to the public as to whether they
21 wanted to do this or not, so for reasons that the City
22 Council can only answer to, the City Council decided that
23 they would rather have done a revenue bond election, so
24 then we went to Eagle Water Company with regard to that.25 option to try and do the intertie and have a revenue bond
CSB REPORTING
Wilder, Idaho 83676
11 BUXTON (Com)
Eagle Water Company
.1 election in place of the local improvement district
2 process and so we've been working on trying to get a date
3 for that and consequently, the purchase and sale
4 agreement time frame which lapsed by March 31st of 2008
5 has gone past, so now we're in negotiations for this
6 intertie and then renegotiation of the purchase price if
7 Eagle Water decides that they do want to sell it, because
8 right now my understanding is they have decided not to
9 sell that system at this point.
10 Q Okay, and I guess my purpose in asking
11 that is I assume that people who are in this mobile home
12 park are citizens of the City of Eagle, residents of the.13 City of Eagle? Do we know that?
14 A I'm looking at Mr. Rich Felix who is the
15 new owner of the mobile home park and I believe he may be
16 able to answer that question definitively, unless the
17 Mayor knows the answer to the question.
18 Q So we don't know if these people are in or
19 out of the City?
20 MR. FELIX: It's in the area of impact,
21 Ada County residents.
22 Q BY COMMISSIONER SMITH: So they're not
23 residents of the City of Eagle. Well, I guess my first
24 purpose in just making the inquiry is these people claim.25 to have been waiting already more than four months for
CSB REPORTING
Wilder, Idaho 83676
12 BUXTON (Com)
Eagle Water Company
.1 this interconnection after being told last fall that
2 there's a problem with their water, which seems like a
3 long time for me for people to be worrying about the
4 quality of their drinking water and so my concern would
5 be if the City Council doesn't approve it Tuesday night,
6 then what? It seems like they are going to make their
7 own judgment on this and this is our window of
8 opportuni ty to address the concerns of people who have
9 legi timate concerns getting safe drinking water, so we
10 have no clue what's going to happen Tuesday night;
11 right?
12 A The City of Eagle has been working with.13 and providing several different written offers with
14 regard to addressing this and other issues and the last
15 offer that the City made with regard to the intertie was
16 on June 6th and it was not until late last Friday that we
17 were asked to try and work again to come back to
18 another -- back to the table, which I'm not making any
19 statement other than that, other than the City of Eagle
20 doesn't have the jurisdiction anyway. We recognize that
21 the PUC has jurisdiction over this area and we explained
22 that to Mr. Felix. The City's desires to help people in
23 need as much as they can, as much as we can lawfully do
24 with public facilities and working with private.25 entities.
CSB REPORTING
Wilder, Idaho 83676
13 BUXTON (Com)
Eagle Water Company
.1 Q And all that is well and good, but these
2 are negotiations between you and Eagle Water Company.
3 A That's còrrect.
4 Q And so
5 A Wi th regard to those issues as far as
6 between Eagle Water Company and the trailer court I
7 really don't have personal knowledge of and can't testify
8 to those things.
9 Q So even if everything goes successfully
10 between Eagle Water and the City of Eagle, then we still
11 have the step of DEQ; right?
12 A No..13 Q Because the restrictions that Eagle Water
14 can't add new customers come from DEQ; correct?
15 A And when we were in the process, as you'll
16 remember from the testimony of last September, the
17 testimony was and it is still accurate that the intertie
18 between Eagle Water Corporation and the City's tank once
19 it was on line, which it is now, will satisfy the terms
20 and conditions of the moratorium. One of the things that
21 the City also did with Eagle Water Company was in our
22 purchase and sale agreement, and again, this is testimony
23 that was given a year ago, too, was that we would provide
24 additional monies to help meet some of the other concerns.25 that DEQ had with the water, like with a booster pump and
CSB REPORTING
Wilder, Idaho 83676
14 BUXTON (Com)
Eagle Water Company
.1 some other facilities that have been put in place. The
2 last thing to go in place it's my understanding is this
3 redundancy component which will upon the intertie
4 probably being constructed, like I said, wi thin a day or
5 two will satisfy all the requirements of the consent
6 order is my understanding.
7 Q Any idea how long it takes DEQ to confirm
8 that that's been done and that they lift the
9 restrictions?
10 A My understanding is that once it was done
11 they would lift the moratorium immediately because they
12 are aware of the concerns of the Floating Feather Mobile.13 Home Park as well as others in the area.
14 COMMISSIONER SMITH: Thank you. Thank
15 you, Mr. Chairman.
16 COMMISSIONER REDFORD: Mr. Kempton.
17
18 EXAMINATION
19
20 BY COMMISSIONER KEMPTON:
21 Q Marsha got my questions. My basic
22 question was whether that would actually fill all of the
23 requirements of the DEQ consent order and then having
24 been in politics, the question was how will the interface.25 work between the proposal going before the City Council
CSB REPORTING
Wilder, Idaho 83676
15 BUXTON (Com)
Eagle Water Company
.1 and the reasonable assurances that you're giving us that
2 it will in fact be approved?
3 A Mr. Kempton, as you recognize, I am merely
4 the City attorney. I'm not a decision maker. As you
5 recognize, it will take a decision of the full Council
6 and we did work diligently with a full Council as long as
7 we could today and then in order to meet the time frame
8 to be with you this afternoon.
9
10 EXAMINATION
11
12 BY COMMISSIONER REDFORD:.13 Q Simplified, Eagle Water is simply
14 supplying water to Eagle Water -- I mean the City of
15 Eagle is?
16 A That's correct. Well, it's supplying the
17 redundancy and the fire flow and any additional pressure
18 that's necessary because of the elevation of the tank in
19 that facility.
20 Q But it's still a supply contract?
21 A That's correct.
22 Q One of my questions was --
23 A Let me rephrase that, Mr. Redford, if I
24 could. I will agree in general terms that it's a supply.25 contract. I'm not going to opine as to whether it's,
CSB REPORTING
Wilder, Idaho 83676
16 BUXTON (Com)
Eagle Water Company
.1 from a legal perspective whether it's, a supply. I don't
2 know what effect my agreeing to that would have with
3 regard to, you know, the rate base or anything like that,
4 so I'm not answering that question that way.
5 Q My other question involved -- I mean, we
6 understand that the DEQ has a moratorium or difficulties
7 wi th the present Eagle Water system and I was questioning
8 whether the water from the City to Floating Feather would
9 be a direct access or will it go through the system of
10 Eagle Water which is under a moratorium and if it's
11 simply a supply into the system and the existing
12 difficul ties are still there, it seems difficult for me.13 to believe the DEQ would lift the moratorium.
14 A My understanding in talking to both DEQ in
15 the past year at least with regard to this moratorium,
16 talking to Eagle Water and talking to our engineers and I
17 will also certainly defer to Mr. DeShazo and to any of
18 his folks who may testify as to this is that the actual
19 intertie to that City tank will alleviate those concerns
20 wi th regard to the system and that is all that is
21 necessary for Eagle Water system to meet those
22 requirements of DEQ for the fire flow and redundancy and
23 the pressure.
24 Q Will the City be charging Eagle Water for.25 the water?
CSB REPORTING
Wilder, Idaho 83676
17 BUXTON (Com)
Eagle Water Company
.1 A We will charge -- the agreement is that we
2 would charge them $4,000 a month for at least a fixed
3 term of 18 months for that service and that that would be
4 a contract that would be automatically renewable upon
5 their request, so we wouldn't be taking that away unless
6 that's what they would like to do and the actual costs
7 were figured based on the consideration, based on the
8 operation and maintenance requirements for the tank as
9 well as for their proportionate share for their 3,400 or
10 so users that they have with regard to that system.
11 Since it is a revenue, we do have a revenue bond on that
12 tank and for that construction and we do have the.13 obligation to our rate people that we make sure that the
14 benefit they are providing is remunerated somehow and it
15 is also an enterprise fund that must be maintained that
16 way.
17 Q I think it's laudable that the City is
18 coming to the rescue of these folks and we applaud you
19 for that and it certainly is not your responsibility as
20 the seller of water to make sure that all the DEQ
21 concerns are resolved, so I believe we'll probably be
22 hearing testimony today as to those issues and so do you
23 have another question?
24 COMMISSIONER KEMPTON: No..25 COMMISSIONER REDFORD: I don't think I
CSB REPORTING
Wilder, Idaho 83676
18 BUXTON (Com)
Eagle Water Company
.1 have any further questions and again, thank you for being
2 here and we're pleased that the City of Eagle will step
3 forward in this regard.
4 THE WITNESS: Thank you, Mr. Commissioner,
5 thank you.
6 MS. 0' LEARY: I would like to reserve the
7 right to recall Ms. Buxton if the line of questions from
8 here necessitates that.
9 COMMISSIONER REDFORD: That will be
10 fine.
11 MS. 0' LEARY: Thank you.
12 (The witness left the stand.).13 MS. 0' LEARY: Eagle Water would now like
14 to call Robert V. DeShazo, Jr. as its next witness.
15
16 ROBERT V. DeSHAZO, JR.,
17 produced as a witness at the instance of Eagle Water
18 Company, having been first duly sworn, was examined and
19 testified as follows:
20
21 DIRECT EXAMINATION
22
23 BY MS. O'LEARY:
24 Q Mr. DeShazo, would you please state your.25 name and address and your relationship to Eagle Water
CSB REPORTING
Wilder, Idaho 83676
19 DeSHAZO (Di)
Eagle Water Company
.1 Company for the record?
2 A My name is Robert DeShazo, Jr. My office
3 address is 188 West State Street, Eagle, Idaho.
4 Q And your relationship to Eagle Water
5 Company?
6 A I serve as its president.
7 Q And are you a shareholder?
8 A Yes, I am.
9 Q Are you a maj ori ty shareholder?
10 A Yes.
11 Q Thank you. I'm just going to ask you a
12 few of the questions regarding the current moratorium.13 that's in place by DEQ and what is required to get that
14 moratorium lifted and from there, I would like to go into
15 some of the details of the agreement we already addressed
16 ear lier in Ms. Buxton's testimony. Can you please tell
17 the Commission in detail, but as brief as possible, the
18 current situation with the DEQ moratorium and what it is
19 that DEQ has told Eagle Water is required to get the
20 moratorium lifted?
21 A We had this engineering study that we did,
22 it took about two years, and it came up with some
23 deficiencies that DEQ decided that -- mandated us to do.
24 One of them, the key one, we've done most everything.25 except this redundancy for fire flow protection on the
CSB REPORTING
Wilder, Idaho 83676
20 DeSHAZO (Di)
Eagle Water Company
.1 peak period day of the year. We're short about 1,000
2 gallons a minute, so that has been the problem we've had
3 trying to relieve that particular situation. We had
4 entered into a contract with the City of Eagle for
5 purchase. It just got to be kind of -- the time ran out,
6 basically, on the purchase agreement. We had still been
7 trying to work with them at that time to do this intertie
8 agreement which would do we were assured by the DEQ
9 that if we had the intertie agreement that would give us
10 our redundancy and give us our extra fire flow we needed
11 for that peak period day.
12 Q So based on the engineering study that was.13 submitted to DEQ last year, approximately a year ago, and
14 was accepted by DEQ as a final engineering study, did
15 that engineering report in fact identify this intertie as
16 the way to resolve the fire flow redundancy issue?
17 A Ei ther that or an additional well is what
18 they were talking about.
19 Q So
20 MR. WOODBURY: Mr. Chairman, rather than
21 speaking of the consent agreements in the abstract, Staff
22 has prepared exhibits and I have requested from DEQ
23 copies of the operative consent agreements that they have
24 in place with DEQ and perhaps we can present those so.25 that Mr. DeShazo can reference them.
CSB REPORTING
Wilder, Idaho 83676
21 DeSHAZO (Di)
Eagle Water Company
.1 COMMISSIONER REDFORD: Have you seen them,
2 Ms. 0' Leary?
3 MR. WOODBURY: I provided them to her this
4 morning and she has a copy.
5 COMMISSIONER REDFORD: Is there any
6 objection?
7 MS. 0' LEARY: There's no obj ection.
8 COMMISSIONER REDFORD: Okay, we'll have
9 them introduced as exhibits. How many are there? Just
10 one package?
11 MR. WOODBURY: Yes, one package, four
12 exhibits, the cover letter and then also the two consent.13
.
agreements with Eagle Water Company and one consent
14 agreement with Floating Feather.
15 COMMISSIONER REDFORD: We'll have those
16 marked and admitted as Exhibit A.
17 MR. WOODBURY: They're marked as Exhibits
18 No. 101 through 104.
19 COMMISSIONER REDFORD: Well, then let's do
20 that.
21 MR. WOODBURY: Thank you.
22 (Staff Exhibit Nos. 101-104 were admitted
23 into evidence.)
24 BY MS. 0' LEARY: So to back up just aQ
25 brief bit, earlier you were referring to a consent order
CSB REPORTING
Wilder, Idaho 83676
22 DeSHAZO (Di)
Eagle Water Company
.
.
.
1 that was entered into between Eagle Water Company and the
2 Idaho Department of Environmental Quality and do you have
3 a copy of that consent order in front of you now?
4 I believe I do, yes.A
5 Okay, and based on that consent order,Q
6 plus a subsequent letter that was drafted from Idaho
7 Department of Environmental Quality to Eagle Water on
8 July 6, 2007 accepting the final engineering report, do
9 you have that letter in front of you as well?
10 COMMISSIONER REDFORD: Is that Exhibit
11 102?
12 MS. O'LEARY: That is Exhibit 103.
13 COMMISSIONER REDFORD: And so the letter
14 you're referring to is Exhibit 103?
15 MS. O'LEARY: Yes.
16 COMMISSIONER REDFORD: Okay.
17 THE WITNESS: Yes, that is.
18 BY MS. 0' LEARY: You have that in front ofQ
19 you?
20 A I do.
21 COMMISSIONER REDFORD: And there's a
22 consent order No.4, 104.
23 MS. O'LEARY: Right, but that is a
24 different consent order, so we are currently talking
25 about the consent order that was entered into between
CSB REPORTING
Wilder, Idaho 83676
23 DeSHAZO (Di)
Eagle Water Company
.
.
.
1 Eagle Water and the Department of Environmental Quality
2 and that's Exhibit 102 and we are talking about a
3 subsequent letter from the Department of Environmental
4 Quali ty to Eagle Water and that is Exhibit 103.
5 COMMISSIONER REDFORD: Thank you,
6 Ms. 0' Leary.
7 MS. O'LEARY: Mr. DeShazo has confirmed
8 that he has those in front of him.
9 THE WITNESS: Yes, I believe I do.
10 BY MS. O'LEARY: All right, now, Mr.Q
11 DeShazo, is it your understanding based on these two
12 documents that the position of the Department of
13 Environmental Quality is and has been, continues to be
14 that once an intertie is completed between Eagle Water
15 and the City of Eagle that will satisfy the redundant
16 fire flow requirements of DEQ?
17 That is correct, yes.A
18 Thank you, and it is that same redundantQ
19 fire flow requirement of DEQ that is the basis for the
20 DEQ' s moratorium; is that correct?
21 A That's correct.
22 So is ita correct statement to say thatQ
23 once the intertie connection is completed there will no
24 longer be a legal basis for the DEQ to continue with a
25 moratorium?
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Wilder, Idaho 83676
24 DeSHAZO (Di)
Eagle Water Company
.1 A That is my understanding, yes.
2 COMMISSIONER REDFORD: Ms. 0' Leary, I'm
3 getting a little ahead of myself, but just for
4 information, are you planning to call DEQ as a witness?
5 MS. O'LEARY: No, sir.
6 COMMISSIONER REDFORD: So all of this is
7 just he said, who said and so on?
8 MS. 0' LEARY: It is Mr. DeShazo's
9 testimony regarding his conversations with DEQ and the
10 documents that he has in front of him.
11 COMMISSIONER REDFORD: Can you firm up
12 that chain of discussions with who, when, so on, any.13 li ttle basis for this?
14 MS. 0' LEARY: The foundation for this
15 testimony is the two exhibits in front of you at this
16 time, Exhibit 102 and Exhibit 103.
17 COMMISSIONER REDFORD: I'm not so worried
18 about that. It's the second part I'm worried about, that
19 Mr. DeShazo testifies that he spoke to someone at DEQ who
20 said that this interconnection would resolve the
21 redundant issue and so on and I want you to firm that
22 up.
23 MS. O'LEARY: I believe that's contained
24 in the documents, Chairman Redford..25 COMMISSIONER REDFORD: Can you point that
CSB REPORTING
Wi lder , Idaho 83676
25 DeSHAZO (Di)
Eagle Water Company
.1 out to me? I just got that.
2 MS. O'LEARY: It would be on Exhibit 103,
3 Action Item A, 3, sub a, "Eagle Water Company shall
4 proceed as expeditiously as possible to make the
5 following system modifications listed as mandatory in the
6 Final Engineering Report for correcting deficiencies in
7 the existing system. Interconnect with an adj acent
8 public water system to ensure a sufficient supply of
9 supplemental water so that the Eagle Water Company water
10 system satisfies all applicable Idaho Rules for Public
11 Drinking Water System pressure and flow requirements with
12 the largest (most critical) Eagle Water Company source.13 out of service. Eagle Water shall provide the
14 Preliminary Engineering Report for this interconnection
15 to DEQ for approval by no later than July 31st, 2007."
16 That has been done.
1 7 "Eagle Water Company shall have the
18 interconnection installed and operational by no later
19 than December 31st, 2007." That has not been done
20 because that was part of the sale to the City of Eagle,
21 so that deadline did not get met.
22 "Eagle Water shall operate and maintain
23 this connection until such time as an alternative source
24 or sources of water are provided such that Eagle Water.25 Company can continue to satisfy the Idaho Rules for
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Wilder, Idaho 83676
26 DeSHAZO (Di)
Eagle Water Company
.1 Public Drinking Water System pressure and flow
2 requirements with the largest (most critical) Eagle Water
3 Company water source out of service."
4 COMMISSIONER REDFORD: Well, you know
5 there's a lot contained in that Ms. 0' Leary and you're
6 asking us to take on faith that Mr. DeShazo's testimony
7 that he has spoken to or is totally relying on this that
8 the interconnection will satisfy all of these criteria,
9 and it seems to me that that information from DEQ is
10 critical to confirm, one, that the interconnection is of
11 sufficient quality and quantity to solve those things and
12 I'm a little disappointed that we're sitting hear saying.13 oh, yeah, it's going to be okay once we get this
14 interconnection and the delays have been inordinate. I
15 don't understand, quite frankly, why Mr. DeShazo hasn't
16 pursued this with more diligence. I know that the sale
17 of the facility, Eagle Water Company, has been a big
18 issue, but as you're aware, we have a docket open on this
19 issue and it's drug on and on and on and frankly, for
20 myself, I don't have much assurance that in fact the DEQ
21 will lift the moratorium and I'm a little surprised that
22 we don't have DEQ here and that you didn't subpoena them
23 or ask them to come here to confirm for us that in fact
24 that's the case. I'm not going to take all these things.25 on faith anymore.
CSB REPORTING
Wilder, Idaho 83676
27 DeSHAZO (Di)
Eagle Water Company
.1 Mr. Woodbury, do you have something you
2 want to add?
3 MR. WOODBURY: Yes, Mr. Chairman, I would
4 indicate that Courtney Beebe, Deputy Attorney General,
5 for the Department of DEQ is present in this Hearing
6 Room, although I don't know whether she's willing to be a
7 witness.
8 COMMISSIONER REDFORD: Well, are you going
9 to call her Mr. Woodbury?
10 MR. WOODBURY: No, I'm not, but I mean,
11 they were aware and I provided them with a copy of the
12 notice that was issued..13 COMMISSIONER REDFORD: Well, I don't mean
14 to be cranky about this, but this seems to be kind of the
15 mode of operation of Eagle Water Company of yeah, we'll
16 do it, we'll get you an engineering report. That drug on
17 and on and on. We had a surcharge that in my
18 understanding is still going on and the devil is in the
19 details, Ms. 0' Leary, and at least for myself, until I
20 get assurance that this is going to work and DEQ will
21 lift the moratorium in a matter of days, I'm not willing
22 to vote for this interconnect. I see Boise Water or
23 United Water is here. I don't know what their position
24 is in this matter, but we are simply dedicated to making.25 sure these people get water and given the history of
CSB REPORTING
Wilder, Idaho 83676
28 DeSHAZO (Di)
Eagle Water Company
.1 Eagle Water, I am suspicious that in fact this will
2 happen in a reasonable period of time.
3 MS. 0' LEARY: May I respond to that --
4 COMMISSIONER REDFORD: Sure.
5 MS. 0' LEARY: -- or should I continue with
6 the questioning?
7 COMMISSIONER REDFORD: Go ahead, it's up
8 to you and I apologize for breaking in.
9 MS. O'LEARY: That's fine. I can
10 certainly appreciate Commissioner Redford's concerns and
11 needing as much detail as possible, that it's certainly
12 understandable and expected. Unfortunately, we are here.13 today right on the heels of having negotiated those
14 details with the City of Eagle. That's not your problem,
15 that's our problem, but we have acted in good faith to
16 get as prepared for this hearing as we could, because we
17 know the answer to this problem is that interconnection
18 and we would not have spent the time that we spent
19 negotiating that with the City if that was not going to
20 get the moratorium lifted, so we have
21 COMMISSIONER REDFORD: You've had a month
22 and prior to that you knew that before the moratorium
23 would be lifted that you had to get this redundant source
24 of water, so I understand you're on the heels of this..25 Qui te frankly, that doesn't impress me very much, Ms.
CSB REPORTING
Wilder, Idaho 83676
29 DeSHAZO (Di)
Eagle Water Company
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.
.
1 O'Leary, because it seems to be kind of the way the
2 operation has been in the past. I really would like to
3 hear some affirmative representation by DEQ. I would
4 like to hear when this interconnection will be made, when
5 will the connections to the Floating Feather people be
6 made and I'm just not willing to accept that it's going
7 to be soon.
8 MS. 0' LEARY: Okay, I would like to then
9 return to questioning the witness, Mr. DeShazo, because I
10 believe Mr. DeShazo can provide us with the answers that
11 you're requesting regarding the time line.
12 Q BY MS. O'LEARY: Mr. DeShazo, I believe
13 Ms. Buxton already testified that the engineering plans
14 for this interconnection have been submitted, that the
15 engineering plans for this interconnection have already
16 been submitted to DEQ for approval and those engineering
17 plans have been approved. Based on that representation
18 by the City of Eagle, how long will it take Eagle Water
19 to complete the interconnection once we have the green
20 light from the City of Eagle on Tuesday night?
21 A You're talking about the interconnection
22 at the tank?
23 Q Yes.
24 A It will probably take approximately two to
25 three days.
CSB REPORTING
Wilder, Idaho 83676
30 DeSHAZO (Di)
Eagle Water Company
.1 Q Okay.
2 A And probably we have, Mr. Redford, we
3 probably have about 20 feet of pipe to run, we've got to
4 put a "T" in, we've got to get out in the road, connect
5 up to their line and that's basically what it is.
6 Q And to address a question that
7 Commissioner Redford had earlier, I think there was some
8 confusion as to whether or not this interconnection would
9 be a direct interconnection from the City of Eagle's
10 system to Floating Feather Mobile Home Park or whether it
11 would be an interconnection between the two water systems
12 which would then lift the DEQ moratorium which would.13 allow you to provide service to Floating Feather Mobile
14 Home Park, so could you clarify that for the
15 Commission?
16 A Their reservoir line crosses over one of
17 our 12 inch mains north of this Floating Feather Mobile
18 Home Park and it will be a tie-in right there where the
19 two of them cross. It will be in our line, distribution
20 line, but this is not an intertie where it's a live
21 intertie. It's an intertie by a mechanical gate valve
22 that we turn on when we have an emergency situation. We
23 don't have any intent to try to use it any other way and
24 so that's where this is and it's not an automatic valve..25 I mean~ we'll know if we have a problem. We can go up
CSB REPORTING
Wilder, Idaho 83676
31 DeSHAZO (Di)
Eagle Water Company
.1 there and turn it on and get that additional water that
2 we would need for whatever, fire protection or whatever
3 it is, so that's what it's for.
4 So to clarify perhaps for the Commission,Q
5 I believe you testified earlier regarding the fact that
6 this requirement of DEQ is to meet the fire flow pressure
7 standards on a peak usage day during a peak hour of
8 demand when in theory the largest well in Eagle Water's
9 system might go down and we might have a fire, so it's a
10 hypothetical situation on the hottest day of the year at
11 the peak usage time, and as I understand it, it's for a
12 four-hour period of time; is that correct?.13 A I i m not sure about the hour time. That
14 came out of the study that was done by MTC Engineering.
15 It showed at that particular time we would be short so
16 many gallons of water. I think it was 1,100 or 12, I
17 can't quite remember, and that's been our problem is that
18 we've been trying to meet that.
19 Q So in reality, there is no actual shortage
20 of water in Eagle Water's system in terms of serving
21 customers on a day-to-day basis; is that correct?
22
23
A No, there is not.
Q And there's currently no issue with Eagle
24 Water's system pressure on a day-to-day basis; is that.25 correct?
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Wilder, Idaho 83676
32 DeSHAZO (Di)
Eagle Water Company
.1 A Not that I know of.
2 Q So the DEQ moratorium is designed to
3 address a standard that under the scenario of the hottest
4 day of the year, peak usage hour, well No. 4 goes off
5 line and there is a fire, under those circumstances and
6 only those circumstances does the computer modeling in
7 the final engineering report accepted by DEQ show that
8 there is any lack of redundant fire flow; is that
9 correct?
10 A As far as I understand it, yes.
11 Q Thank you.
12 COMMISSIONER REDFORD: I have a question..13 Mr. DeShazo, why is ita manual system instead of an
14 automated system? It seems to me that if you've got an
15 emergency and you're going to have to go up and, as you
16 said, turn the valve to get the pressure to handle a
17 fire, that seems like old technology.
18 THE WITNESS: Well , it really doesn't seem
19 like old technology to us. What I'm trying to say, we
20 have people on staff 7/24. If we have a customer that
21 perceives a low water pressure, I mean, they will call us
22 immediately. I mean, they're spread out.I mean, it's
23 amazing. They're the best warning system there is.I
24 mean, for some reason they know it all and we're on it,.25 so it's just a matter of driving up there and turning the
CSB REPORTING
Wilder, Idaho 83676
33 DeSHAZO (Di)
Eagle Water Company
.1 val ve on and we were trying not to get an electrical
2 outlet into the thing, it's out in the street and this
3 sort of thing and just trying to make it as simple as we
4 could and basically, it's only needed for -- it's a
5 standby for probably two or three days out of the year
6 and that's the problem and can I go a little bit farther?
7 COMMISSIONER REDFORD: Sure.
8 THE WITNESS: We have an application in
9 for another well and when we have the other well drilled,
10 then that will also be added to the system and that will
11 be the redundancy. There will also be backup redundancy
12 at that time, too..13 MS. 0' LEARY: Can I as k you some questions
14 regarding that?
15 COMMISSIONER REDFORD: Go ahead. I'm
16 sorry to break in.
17 Q BY MS. 0' LEARY: So Mr. DeShazo, you
18 anticipated my next line of questioning which was to
19 discuss the well No. 8 that is currently in the process
20 of being brought on line by Eagle Water Company. Would
21 you explain for the Commission where we are in the
22 process, where Eagle Water is in the process, of bringing
23 an additional water source on line?
24 A We submitted to the Department of Water.25 Resources an application basically to another point of
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Wilder, Idaho 83676
34 DeSHAZO (Di)
Eagle Water Company
.1 di version for a well that we have that does pump sand and
2 we decided instead of going in and asking for additional
3 water rights, we'd take those water rights and transfer
4 it down to this new site that we have. That application
5 has been submitted. The gentleman, I'm trying to think
6 of name, I apologize, out there at Water Resources said
7 it will go out for advertising either this week or next
8 week and he anticipated either the end of the month or
9 the first of August sometime for a drilling permit. They
10 understand the urgency of it. They understand it is
11 critical to do this and that's where we are in that
12 si tuation now..13 Q Was the gentleman whose name you were
14 searching for a moment ago Steve Lester at the Boise
15 Regional Office of Idaho Department of Water Resources?
16 A That is correct, yes.
17 Q And once the transfer permit is approved
18 by Idaho Department of Water Resources, assuming, of
19 course, that it is approved by Idaho Department of Water
20 Resources, how long does Eagle Water anticipate it will
21 take to get that resource on line?
22 A Well, this particular summer well drillers
23 are not nearly as busy as they were the last couple of
24 years. We haven't picked a well driller yet. I'm.25 wai ting for the specifications from MTC Engineers to
CSB REPORTING
Wilder, Idaho 83676
35 DeSHAZO (Di)
Eagle Water Company
.1 select one. We're anticipating probably from permit to
2 on line, I'm going to say wi thin the neighborhood of 60
3 days just for some slack time. I've already contracted
4 wi th Idaho Power to get three-phase power to the site.
5 I've contracted -- we're doing the layout now for where
6 the main line runs to tie into the system. These things
7 are all under engineering and being done at this time.
8 Q And this in addition to the
9 interconnection with the City of Eagle, this would
10 provide redundant fire flow over and above what is
11 required by DEQ; is that correct?
12 A That is correct, yes..13 Q And was the Eagle Water Company's
14 motivation for entering into an intertie agreement with
15 the City of Eagle, was it based on some concern that we
16 needed to have, that Eagle Water needed to have, a
17 redundant fire flow source in place prior to the
18 completion of well No.8?
19 A Well, to get the moratorium lifted we had
20 to do either an intertie or another well and that's where
21 we're at now.
22 Q I'll rephrase my question because it was
23 somewhat convoluted.
24 A Okay..25 Q Was Eagle Water' s motivation for entering
CSB REPORTING
Wilder, Idaho 83676
36 DeSHAZO (Di)
Eagle Water Company
.1 into an intertie agreement with the City of Eagle to
2 speed up the opportunity to get the moratorium lifted
3 from DEQ?
4 A Oh, yes, absolutely.
5 So that the moratorium would be lifted asQ
6 soon as the intertie is completed rather than waiting
7 until well No. 8 is completed?
8 A That's correct, yes.
9 Even though well No. 8 would in factQ
10 address the DEQ moratorium issue as well?
.
11 A That's right.
12 MS. 0' LEARY: Thank you.
13 COMMISSIONER REDFORD: I just have a
14 couple more questions.
15
16 EXAMINATION
17
18 BY COMMISSIONER REDFORD:
19 Has DEQ signed off on this intertieQ
20 agreement as far as the technology, the manual valve?
21 A I believe they have. I didn't make the
22 application, Mr. Redford. The application was made by
23 the City engineer, Holladay, and they did the plans and
24 submi tted it for approval. I saw the rough drawings. I.25 have not got a copy of the final stamped approved
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Wilder, Idaho 83676
37 DeSHAZO (Com)
Eagle Water Company
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1 drawings as of yet. I will get those probably this
2 afternoon.
3 So right now you don't know whether theQ
4 DEQ has approved them or not?
5 I'm going to take the City engineer's wordA
6 for it.
7 You don't have any personal knowledgeQ
8 other than you've talked to the City engineer?
9 A No.
10 So this intertie not only providing enoughQ
11 water to supply Floating Feather will also be to provide
12 the redundancy that you need under the DEQ issues?
13 A That's correct, yes, sir.
14 Q You said that you rely on your customers
15 for your early warnings. What if there's a fire in an
16 unoccupied building and you don't have sufficient
17 pressure before you get up there to turn the valve?
18 I don't know how to answer that question,A
19 because normally the fire department out there is well
20 equipped. They have tankers, they have these sort of
21 things. We've never run into that scenario before.
22 We've had a maj or fire out there many years ago, a
23 chicken farm burned up. We had plenty of adequate water
24 for that fire. I don't know if we have an intertie from
25 the fire department to us, but I'm sure that by the time
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Wilder, Idaho 83676
38 DeSHAZO (Com)
Eagle Water Company
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.
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1 it's there that somebody will know about it and will be,
2 it will be taken care of, but it would have to have all
3 six wells down, basically, not to provide fire
4 protection. I mean, it's going to provide some. It
5 doesn't provide what the chart or what the engineering
6 study says, but I think that -- I can't say what I'd like
7 to say there on that engineering study. It took a long
8 time to do and it was very meticulously done and I
9 somewhat don't agree with everything in it, but I have to
10 live with what's there.
11 Q Well, we're painfully aware as well.
12 A Yes, I know.
13 Q When did you apply for the permit for well
14 No.8?
15 A My engineer contacted them because I was
16 concerned about asking for another water permit and then
17 I talked to the engineer, I said we have well 3 which is
18 a well up there which we use only in the summer. We've
19 reduced it because it does pump sand. It's a well that
20 we inherited and it pumps sand, so we reduce it down to
21 where it doesn't pump sand, so we've actually cut the
22 supply of that well probably by two-thirds, so I talked
23 to my engineer, Jim Reese, he got ahold of the people out
24 there at Water Resources and they came up with the idea
25 of why don't you go ahead and transfer those water rights
CSB REPORTING
Wilder, Idaho 83676
39 DeSHAZO (Com)
Eagle Water Company
.
.
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1 to another point of diversion, and I believe that that
2 was in the first of May that we did this.
3 The application went up to the Department
4 of Water Resources. It was directed to go to, I think,
5 this Steve Lester. It didn't get to Steve Lester's desk.
6 We found out about this about three weeks ago that it was
7 laying on a secretary's desk and it hadn't gone anywhere,
8 so we went up and got that taken care of and Steve was
9 very apologetic because he knew it was coming and he just
10 didn't know where it was and it delayed it by three
11 weeks.
12 COMMISSIONER REDFORD: Commissioner Smith.
13 COMMISSIONER SMITH: When you said May, I
14 just wondered if that was this year.
15 THE WITNESS: Yes, it was.
16 MS. 0' LEARY: I would li ke to interj ect
17 that I do have a copy of that application to the Idaho
18 Department of Water Resources and I would be happy to
19 leave that with the Commission. I did not anticipate
20 entering that as an exhibit, so I don't have extra
21 copies, but I would happy to provide those to the
22 Commission before the close of the hearing.
23 COMMISSIONER REDFORD: Well, if it's going
24 to be in the record, it's got to be admitted, so why
25 don't you admit it.
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Wilder, Idaho 83676
40 DeSHAZO (Com)
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21
22
1 MS. 0' LEARY: I would move to admit as an
2 exhibi t on behalf of Eagle Water Company the Application
3 for Transfer of Water Rights that was submitted to the
4 State of Idaho Department of Water Resources on May 9th
5 of 2008.
6 COMMISSIONER REDFORD: Okay, that will be
7 admitted as Exhibit 100. Eagle .Water is 100 or
8 MS. O'LEARY: Well, are we doing 200 for
9 us? So ours would be 201. I'm sorry, so it would be
10 Exhibit 1.
11 COMMISSIONER REDFORD: Thank you. It will
12 be so admitted.
13 (Eagle Water Company Exhibit No. 1 was
14 marked and admitted into evidence.)
15 COMMISSIONER REDFORD: Go ahead, Ms.
16 0' Leary.
17 MS. 0' LEARY: I believe Commissioner Smith
18 had a question of the witness.
19 COMMISSIONER REDFORD: Oh, yes, go ahead.
20
EXAMINATION
23 BY COMMISSIONER SMITH:
24.25
Q Mr. DeShazo, I'm looking at Exhibit 103,
page 3 of 4.
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Wilder, Idaho 83676
41 DeSHAZO (Com)
Eagle Water Company
.
.
1 A Let me get there,sorry.
Q No problem.
A Page 3 of 4,yes,ma'am.
Q And paragraph No.5.
A Okay,5.
Q i guess,you know,this is the first time
2
3
4
5
6
7 I've read it, so you've got to help me see if I
8 understand it correctly. The second sentence says, "If
9 redundancy is achieved by an interconnection covered
10 under another Action Item," is that what we're talking
11 about here --
12 A I believe so.
13 Q -- is this that same interconnection?
14 A I believe so, yes.
15 Q Okay, "then EWC," which I assume is Eagle
16 Water Company, "shall provide a Preliminary Engineering
17 Report for DEQ' s approval that demonstrates that Idaho
18 Rules for Public Drinking Water pressure and flow
19 requirements in the high pressure zone are met with the
20 booster pump out of service," so that's what we're trying
21 to do with the interconnection?
22
23
A That is correct, yes.
Q It looks to me like it i s then Eagle Water
24 Company's responsibility to provide a preliminary.25 engineering report. Is that what it looks like to you?
CSB REPORTING
Wilder, Idaho 83676
42 DeSHAZO (Com)
Eagle Water Company
.
.
1 A Yes, and we will do that.
2 Q Okay; so after the interconnection is
3 completed, then you will submit to DEQ this preliminary
4 engineering report that's required?
5 A That's correct. I think that Mr. Reese
6 has already talked to them about this. I couldn't submit
7 this until I had an agreement with the City of Eagle
8 today.
9 Q Exactly, but even after the
10 interconnection is completed, you have the responsibility
11 to file this with DEQ?
12 A Yes.
13 Q And then they, you testified earlier, have
14 assured you that if you had the interconnection they
15 would lift the moratorium, so can you tell me
16 specifically who assured you that that was the case and
17 when they did that?
18 A Well, that's always been the case is that
19 I know that this has been preliminarily talked about.
20 I'm not the engineer.
21 Q Okay; so you haven't spoken personally to
22 anyone who assured you?
23 A The last time I had a meeting with DEQ,
24 I'm trying to remember when that was, Molly, I believe it.25 was in March when we sat around the table, we discussed
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43 DeSHAZO (Com)
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20
1 all the deficiencies or whatever we talked about that we
2 still had to do and a letter came out of that meeting and
3 those deficiencies are the ones I've been working on.
4 DEQ, it depends on who you talk to down there, some of
5 them have something it's a new thing that hits the door
6 that hasn't been there before.
7 Q That was my next question.
8 A I don't know how to answer that one.
9 Q My next question is has DEQ ever changed
10 its mind in the past about what's required?
11 A No, never, not once have they ever changed
12 their mind. Excuse me, they have. They change their
13 mind a lot and that's been a problem we've had.
14 Q Okay; so you can understand how that puts
15 me in a difficult position.
16 A Well, we also have some people that are
17 working with DEQ to try to eliminate these
18 changing-of-mind situations. It has been difficult,
19 yes.
Q And I agree with that, so no one has
21 personally assured you, you're relying on the engineers
22 that if the interconnection is made the restrictions will
23 be lifted, nor has anyone given you any time frame within
24 which that will occur; is that correct?.25 A No, that meeting we had in March they did
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44 DeSHAZO (Com)
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1 say that if we had an intertie, either the well or some
2 other intertie, that that would be lifted.
3 All right.Q
4 And I know that Tiffany Floyd was thereA
5 and I don't know the engineer. There's another engineer
6 that I did not know there either. Every time we go in to
7 have a meeting at DEQ I meet new engineers.
8 So I was going to ask you if you knewQ
9 Tiffany Floyd.
10 A Yes, I do.
11 Because in the complaint or the request --Q
12 A Isn't that
13 -- by Floating Feather Partners, it statesQ
14 that Tiffany Floyd of the DEQ is in support of their
15 request to have the United Water Company do the
16 interconnection.
17 Yes, I saw that.A
18 All right; so now I have a totallyQ
19 different question. Assuming the interconnection gets
20 made, the requirements are lifted, what work has to be
21 done within the mobile home park to get them service?
22 Okay, the mobile home park, we have a stubA
23 across the road that goes to the park that we put in when
24 we ran that line up the road. We have to cross the
25 highway. We have to add a fire hydrant at the corner.
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45 DeSHAZO (Com)
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1 We have to go into the park, not very far, probably about
2 I'd say 75, 80 feet to the location of their -- I think
3 that is their main wellhouse right there. We will put a
4 pi t in, a service pit, that will have backflow preventers
5 in it, a meter setter and a meter and, you know,
6 different mechanical fittings attached to their system in
7 there, and at that point that's the point we don't go any
8 farther than that, the plumbing contractor takes over for
9 that, so we've got -- I can't remember the footage across
10 the highway. If we have an agreement worked out here
11 today, I will get that -- we'll put the crossing in
12 because we're getting ready to gravel that old Horseshoe
13 Bend Highway and get the stub across so it's across
14 there. I estimate probably five to six days to do that,
15 paving and everything, permits and flaggers. It's a
16 maj or crossing. You wouldn't think there would be any
17 traffic on that road, but there seems to be more traffic
18 than there was in a long time.
19 Do you need any kind of permit from ACHDQ
20 to do that?
21 Yes, we'll put in for that immediately.A
22 Q What's their --
23 Two days. It will be Monday if we have aA
24 permit.
25 So their well is just going to beQ
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46 DeSHAZO (Com)
Eagle Water Company
.1 capped?
2 I don't know. They can use their well forA
3 irrigation, whatever they want to use it for.
4 Q But it won't be connected?
5 A No, absolutely not.
6 Q So the distribution system that would
7 connect to yours will be entirely separate and new?
8 No, it will be their old system, which IA
9 believe that they also use that for irrigation purposes
10 in the mobile home park. It will be up to them. That's
.
20
11 why the backflow preventers are in there so they don't
12 have any backflow from that thing, from their system,
13 basically.
14
15 EXAMINATION
16
17 BY COMMISSIONER REDFORD:
18 How could they use it for watering?Q
19 They've got two sets of pipe?
A No, just have one. One pipe is used for
21 domestic potable and for irrigation purposes.
22 How do they know they're using your wellQ
23 or their well?
24.25
A Well, their system will be disconnected.
It will be completely disconnected and reconnected up to
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47 DeSHAZO (Com)
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1 ours through val ving.
2 Q So they won't be able to use their water
3 for irrigation?
4 I don't know anything about what's insideA
5 the park, Mr. Redford. They might have some lines in
6 there for common areas or not. I don't know. It's an
7 old park. It's been there quite a long time.
8
9 EXAMINATION
10
11 BY COMMISSIONER SMITH:
12 Q Do you have any concern for the integrity
13 of the system that you'll be hooking to?
14 A No, I'm not worried about it, as long as
15 we put in the right and proper things that we have.
16 Q So your concern is to protect the rest of
17 your system from anything that happens on their side?
18 A Whenever we do a connection, that's what
19 we're always worried about, because a lot of people have
20 irrigation that jump back and forth and this sort of
21 thing and we found that's been a problem, too.
22
23
. 25
24
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Wilder, Idaho 83676
DeSHAZO (Com)
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48
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1 EXAMINATION
2
3 BY COMMISSIONER REDFORD:
4 This system, will you take ownership ofQ
5 their system?
6 A No, sir.
7 So you'll just be supplying water to theirQ
8 system?
9 That's right. I don't know what's in theA
10 ground. I don't know what they have. I really don't
11 want that kind of a liability to be frank with you.
12 COMMISSIONER SMITH: Those are all my
13 questions.
14 COMMISSIONER REDFORD: Mr. Kempton?
15 COMMISSIONER KEMPTON: Thank you, Mr.
16 Chairman.
17
18 EXAMINATION
19
20 BY COMMISSIONER KEMPTON:
21 Mr. DeShazo, I guess one question I have,Q
22 we've got one engineering study that has been completed,
23 you have the interconnection effort that you have to
24 complete and then you have a post engineering study that
25 has to be completed based on the discussion you just had
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49 DeSHAZO (Com)
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1 with Commissioner Smith; is that correct?
2 You're referring to -- I want to be sureA
3 which one we've got here.
4 It's on 3 of 4 and on paragraph 5 when youQ
5 were talking about actions under previous conditions
6 being met, so it was in the second sentence.
7 Interconnections are covered under another action item
8 which is where you said you were.
9 Okay, I see what you're saying. Yes, thatA
10 will be handled by the engineer. Mr. Reese is aware of
11 these things. I have not proceeded to have him do
12 anything. We have a drawing ready to submit to DEQ for
13 the layout and how we're going to provide the service to
14 the mobile home park, but there's no need to take it in
15 there until we had permission to do it and that's kind of
16 where we're at right here.
17 Are the costs for all of the three thingsQ
18 that I identified going to go to the Floating Feather
19 Mobile Home Park?
20 I gave them a preliminary cost in theA
21 beginning as to what it was going to cost. I haven't
22 reviewed that. I don't know where -- material costs are
23 going up and down all the time. That was something that
24 would have to be reviewed. I believe that we had some
25 costs in there for engineering. I don't know to the
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50 DeSHAZO (Com)
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1 extent of how much, but I don't believe these reports are
2 going to be very extensive to do.
3 The reports themselves are extensive, youQ
4 already said that, very complicated, they were extensive,
5 a lot of things in them you didn't like.
6 I think you're referring to the masterA
7 thing that we did two years ago. That isn't what they're
8 talking about here, sir, I don't believe.
9 Well, I'm asking, though, that preliminaryQ
10 study, that was the one I was referring to when I gave
11 you three things, so that preliminary study at the very
12 front, will that also be incorporated in their costs?
13 Oh, that's already ours. We've taken careA
14 of that. Well, we haven't taken care of it yet, we're
15 still working on it.
16 Q It's not a deferred cost?
17 No, I have not deferred it as a cost, no,A
18 sir. We have a surcharge that is supposed to be paying
19 for that, sir.
20 COMMISSIONER KEMPTON: Okay.
21
22
23
24
25
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51 DeSHAZO (Com)
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1 EXAMINATION
2
3 BY COMMISSIONER REDFORD:
4 Are you going to take over the meters orQ
5 are you just going to supply bulk water?
6 We're going to supply bulk water. We'llA
7 put a four-inch meter on it. We think we have pressure
8 there to supply that. Mr. Reese is running the study. A
9 six-inch meter would be very expensive for the applicant
10 because they're a spendy piece of equipment. I think the
11 four-inch meter would be more than enough to adequately
12 handle what's in that park.
13 So you'll just be dealing with the ownerQ
14 of the park, not the residents?
15 A That's correct, yes.
16 COMMISSIONER REDFORD: Do you have
17 anything further of this witness?
18 MS. 0' LEARY: I do not have anything
19 further of this witness at this time, but I would like to
20 perhaps reserve the right to ask some rebuttal questions
21 if that is necessary based on the additional testimony
22 that is heard today.
23 COMMISSIONER REDFORD: Mr. Woodbury?
24 MR. WOODBURY: Thank you, Mr. Chairman, I
25 have a couple of questions that I would like to ask.
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1 COMMISSIONER REDFORD: Before we do that,
2 is there someone who knows how to run that air
3 condi tioning system without me taking my coat off?
4 COMMISSIONER SMITH: Are you too warm?
5 COMMISSIONER REDFORD: Yes. Are you too
6 cold?
7 (Pause in proceedings.)
8 COMMISSIONER REDFORD: Mr. Woodbury.
9 MR. WOODBURY: Thank you.
11 CROSS-EXAMINATION
12
13 BY MR. WOODBURY:
14 Mr. DeShazo, referring you to Exhibit 103.Q
15 A Okay.
16 Q Action Items, 3, a, the interconnect
17 requirement is the intertie that we're talking about, the
18 agreement reached with the City of Eagle; correct?
19 It doesn't refer to the City of Eagle. ItA
20 just was referring to an intertie between somebody.
21 Yes, but you can satisfy this condition byQ
22 the interconnect with the City of Eagle?
23 A Yes, sir.
24 Item No. b, 3, b on the top of page 2 ofQ
25 4, automatic pressure reducing/sustaining valve, has the
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53 DeSHAZO (X)
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20
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1 Company already installed that? I see that was a
2 requirement that it be done no later than December 31st
3 of 2007.
4 That has been done, yes, sir, and it isA
5 operational.
6 Q Did you provide DEQ with a written
7 notification of satisfaction of that condition?
8 A I believe my engineer did, yes.
9 Q Is it your understanding that with the
10 City approval of the interconnect agreement that you
11 can -- in construction of the facilities that Eagle Water
12 can provide service to the Floating Feather Mobile Home
13 Park without any notice or application to DEQ?
14 A No, we'll have to make an application, but
15 I think that they're aware of it.
16 Q Referring to Exhibit 102 --
17 A Mr. Woodbury, when we submit the plans to
18 them for approval that we're doing it, we haven't done it
19 yet because we don't have permission to do this.
Q Referring to Exhibit 102, paragraph 10,
21 Exhibit 102, paragraph 10, page 5 of 5.
22 A Hang on a second.
23 Q This is the underlying consent agreement
24 that the Company entered into.
25 A Okay, No.2?
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1 That states that this Consent Order shallQ
2 remain in full force and effect until the Department
3 acknowledges in writing that the Consent Order is
4 terminated and that Eagle has fulfilled all requirements
5 of this Consent Order, so is it your understanding that
6 the moratorium will remain in effect until DEQ issues its
7 release?
8 A I believe that -- I think we're down to
9 where we have to have the redundancy. I think that's the
10 last thing we have to basically do to get this thing
11 done. That's what I'm trying to say.
12 Q Do you know what the procedural process
13 DEQ has if you were to submit a letter indicating you
14 satisfied their conditions?
15 I assume the letter will come from ourA
16 engineer or from the attorney. That's something we'll be
17 working on. We'll definitely work on it.
18 Q Do you know the procedure involved at --
19 A No, sir, I do not.
20 Q So you don't know the time line in
21 which--
22 Well, it shouldn't be -- it's actually aA
23 letter, it shouldn't be very long.
24 MR. WOODBURY: Thank you.
25 COMMISSIONER SMITH: I have one
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55 DeSHAZO (X)
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1 follow-up.
2 COMMISSIONER REDFORD: Sure, go ahead.
3
4 EXAMINATION
5
6 BY COMMISSIONER SMITH:
7 Mr. DeShazo, when you said you don't haveQ
8 permission to do this, were you referring to the
9 interconnection?
10 A Well, it seems that we're in here talking
11 about it now. I don't have permission from you.
12 Q But do you think you need permission from
13 us? This is part of your certificated area that you
14 could just go and serve if you weren't on this moratorium
15 from DEQ, so I was wondering, is the permission you're
16 seeking from the City through the City Council?
17 No, the permission I'm going to need isA
18 going to be from DEQ.
19 Q Okay.
20 And we have -- I mean, like I say, we'veA
21 only had this thing basically done for a couple of
22 hours.
23 So I didn't know when you said we don'tQ
24 have permission to do this whether you were referring to
25 the interconnection with the City or whether you were
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Wilder, Idaho 83676
56 DeSHAZO (Com)
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1 referring to the hooking up of the mobile home park.
2 in one of theseAI would be referring to
3 consent orders here it says that up in the upper zone
4 where this is, until this was done, I'm not allowed to
5 connect anybody up. That's what I'm referring to.
6 Q So you were referring to the lifting of
7 the moratorium by DEQ?
8 A Absolutely, yes.
9 COMMISSIONER SMITH: Thank you.
10 THE WITNESS: Sorry, I understand, Marsha.
11 COMMISSIONER REDFORD: I would just like
12 to remind the witness that this is a complaint that's
13 come from the Floating Feather.
14 THE WITNESS: Right.
15 COMMISSIONER REDFORD: They've asked you
16 in the past to please help them. That hasn't been
17 forthcoming until now we have this flurry of activity and
18 the order to show cause is simply for you to explain to
19 us whether you can or can't provide the water and if you
20 can provide the water, are there any constraints on your
21 doing so and if you believe you have to have permission
22 from us, you're wrong.
23
.
THE WITNESS: No, I didn't mean that. I
24 apologize.
25 COMMISSIONER REDFORD: Mr. Woodbury, I'm
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1 sorry, we cut you off. Go ahead.
2 MR. WOODBURY: Mr. Chairman, Staff has no
3 further questions.
4 COMMISSIONER REDFORD: Ms. O'Leary?
5 MS. 0' LEARY: We do not have any further
6 questions of this witness at this time. I would ask
7 perhaps for a five-minute recess to confer with Ms. Beebe
8 from the Department of Environmental Quality to see if
9 she has any ability to provide additional information to
10 the Commission at this time and I would request a
11 five-minute recess for that.
12 COMMISSIONER REDFORD: Okay, why don't we
13 take a -- we'll reconvene at 3: 30.
14 MS. 0' LEARY: Thank you.
15 (The witness left the stand.)
16 (Recess. )
17 COMMISSIONER REDFORD: Okay, we'll go back
18 on the record. Ms. 0' Leary, we're back on the record.
19 MS. 0' LEARY: Thank you, Commissioner
20 Redford. I did have a chance to visit with Courtney
21 Beebe who is a Deputy Attorney General assigned to the
22 Department of Environmental Quality and she had time to
23 consul t with her boss and the response was that although
24 DEQ is thrilled to know that we have this interconnection.25 agreement teed up and ready to go, she cannot testify to
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58 COLLOQUY
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1 that today, but the Department would, of course, be
2 subject to any kind of subpoena that the Commission would
3 like to issue, but she is not allowed to testify before
4 the Commission today.
5 COMMISSIONER REDFORD: Okay, do you have
6 anything else?
7 MS. 0' LEARY: We were advised by Susan
8 Buxton during our recess that there is a letter from DEQ
9 confirming it was dated August 17, 2007. I do not
10 have it in my possession. I called my secretary to get a
11 copy of it. She was not able to put her hands on it, but
12 Susan Buxton advised me that there was a letter from DEQ
13 and Courtney Beebe confirmed that such a letter exists
14 stating that the interconnection between the two systems
15 would satisfy the DEQ' s moratorium requirements.
16 COMMISSIONER REDFORD: That letter was
17 2007 or 2008?
18 MS. 0' LEARY: It was August 17th, 2007 and
19 I do not have a copy of that on me today. Susan advised
20 me that that letter exists and Courtney did assure me
21 that what I've been representing to you that that
22 information is in the document there, but she confirmed
23 that it's a somewhat poorly-worded document, so it's a
24 li ttle hard for you tease that information out all of the.25 facts that are in those two documents, that being the
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Wilder, Idaho 83676
59 COLLOQUY
.1 consent order and the July 7th letter from DEQ to Eagle
2 Water.
3 COMMISSIONER REDFORD: The letter stated
4 that an interconnection would be sufficient?
5 MS. 0' LEARY: An interconnection between
6 the City of Eagle and Eagle Water Company would in fact
7 satisfy the DEQ' s requirements for the redundancy, the
8 system redundancy.
9 COMMISSIONER REDFORD: So there doesn't
10 have to be, according to the consent order there doesn't
11 have to be, a preliminary engineering study as is
12 required?.13 MS. 0' LEARY: The preliminary engineering
14 study has already been done and submitted in anticipation
15 of this interconnection. As you may recall, this
16 interconnection was part of the transition of the Company
17 to Eagle Water -- I mean the City of Eagle, so all of
18 this was anticipated to be happening. In fact, the City
19 of Eagle thought that they were going to be getting their
20 storage tank on line last fall and it did not happen
21 until February or March of this year, so had they gotten
22 their storage tank on line last fall as anticipated, we'd
23 already be connected to it. It was part of the parties'
24 discussion at that time, so DEQ was already aware that.25 that was part of the agreement. They had asked for a
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60 COLLOQUY
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1 copy of the agreement between Eagle Water and the City of
2 Eagle. They understood what was being proposed and what
3 was planned and they did confirm that that would take
4 care of that issue. That was a due diligence issue that
5 the City of Eagle needed to resolve in the process of
6 finalizing the purchase of Eagle Water Company.
7 COMMISSIONER REDFORD: So I'm not
8 confused, according to the consent or the letter, excuse
9 me, dated July 6, 2007, it says if redundancy is achieved
10 by an interconnection provided under another Action Item,
11 then EWC shall provide a Preliminary Engineering Report
12 for DEQ' s approval that demonstrates that Idaho Rules for
13 Public Drinking Water pressure and flow requirements have
14 been achieved and that's been submitted?
15 MS. 0' LEARY: I'm sorry?
16 COMMISSIONER REDFORD: And that's been
17 submitted?
18 MS. 0' LEARY: It is my understanding that
19 that has been submitted.
20 COMMISSIONER REDFORD: Wait a minute, it's
21 ei ther been -- this is very specific and you're
22 representing to me and you can certainly provide that
.25
23 engineering report that addresses this item.
24 MS. 0' LEARY: I do not know. I cannot
represent to you that that has in fact been submitted.
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.1 It is my understanding, but I would not represent that I
2 could produce that this afternoon.
3 COMMISSIONER REDFORD: So we have to
4 assume it hasn't been. Excuse me, Mr. DeShazo, do you
5 have anything else to provide?
6 MS. O'LEARY: I would like to at this time
7 request that the Commission allow Eagle Water Company to
8 serve the Floating Feather Mobile Home Park which is in
9 its service area and that a decision, if the Commission
10 does not feel that it is at a comfort level at this point
11 based on the documents that have been provided and
12 discussed to the Commission that the Commission give us,.13 gi ve Eagle Water Company, a week, two weeks, 30 days,
14 whatever would make the Commission comfortable to in fact
15 produce that agreement with the City of Eagle, produce
16 documentation from the Department of Environmental
17 Quali ty that the interconnection does in fact satisfy
18 their requirements and that the moratorium is lifted and
19 in fact to give us an opportunity to give you a status
20 report at that time as to the progress on the
21 construction of the intertie itself.
22 During that period of time to the extent
23 the Floating Feather Mobile Home Park is required to
24 provide its residents with some source of potable water,.25 which I believe it is having to do currently, Eagle Water
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62 COLLOQUY
.1 would be willing to participate in the cost of that in
2 order to have a grace period to get all of these
3 documents in order.
4 COMMISSIONER REDFORD: Well , it's been 30
5 days now since this Order was submitted and it's my
6 understanding we don't give approval or not approval.
7 All we do in this order to show cause is to make a
8 determination as to whether Eagle Water is capable of
9 providing this service or not and that's what the order
10 to show cause is all about and as far as an extension is
11 concerned, we'll have to get back with you on that, so do
12 you have anything else, Ms. 0' Leary?.13 MS. O'LEARY: No, Chairman Redford, we do
14 not have anything further at this time.
15
16
COMMISSIONER REDFORD: Ms. Smith?
COMMISSIONER SMITH: Thank you. I guess I
17 just had one comment just sorting out your comment about
18 the subpoena and DEQ. Each Commissioner on the
19 Commission has the authority to issue a subpoena.
20 Usually that's done upon request of a party who believes
21 that there's a witness necessary to be at the hearing, so
22 the Commission, I think, rarely on its own motion decides
23 who to go out and gather. We depend upon the parties to
24 determine who's necessary to bring the evidence for us to.25 make a good decision and it's fairly common, in fact I
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63 COLLOQUY
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1 think it's standard, that state government employees
2 can't testify without a subpoena, so they would have to
3 have one to come before the Commission, so just FYI,
4 that's the practice as I know it historically on the
5 Commission and subpoenas and I think the Commission will
6 have to take under advisement how long do we make these
7 people wait.
8 I don't need a status report, an agreement
9 wi th the City. I don't need a status report with DEQ.
10 What I need to know is do the customers of this mobile
11 home park have water service with water that's good, so
12 the Company is already certificated. You don't need any
13 more authority from us to provide service within your
14 certificated area. We've given that authority, so
15 somewhere else is the glitch and I think it's our
16 responsibility to make sure that because of this glitch
17 the people in this area get water service as quickly as
18 possible, so that's my two cents' worth.
19 COMMISSIONER REDFORD: Furthermore, under
20 the Idaho Rules of Civil Procedure, attorneys can issue
21 subpoenas.
22 MS. O'LEARY: Yes, and I appreciate that
23 and we would be more than willing to do that and to get
24 DEQ here as a witness and to provide whatever additional
25 documentation is necessary to show the Commission that we
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64 COLLOQUY
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1 are ready, willing and able to serve this mobile home
2 park and the only step that needs to be completed is
3 getting the interconnection physically connected and get
4 DEQ to lift the moratorium. I would be happy to issue
5 that subpoena if the Commission would be willing to
6 continue this hearing to a later date to allow that to be
7 provided.
8 COMMISSIONER REDFORD: Well, frankly,
9 we'll have to get back to you. I'm not willing to do
10 that, but I don't know whether the other Commissioners
11 are. If there's nothing else, do you have anything else
12 Ms. Buxton?
13 MS. BUXTON: No, Mr. Chairman, unless the
14 Commission has any further requests for me as a witness,
15 then I i II be happy to provide that information to you. I
16 think I'm kind of out as the lawyer right now, so thank
17 you.
18 COMMISSIONER REDFORD: Mr. Woodbury, do
19 you have anything further?
20 MR. WOODBURY: No, Staff has no
21 witnesses.
22 COMMISSIONER REDFORD: Well, thank you for
23 all coming today and we appreciate it and we'll let you
24 know very quickly as to any extension and if there's
25 nothing other to come before the Commission, we stand
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65 COLLOQUY
.1 adjourned.
2 (The Hearing adjourned at 3:55 p.m.)
3
4
5
6
7
8
9
10
11
12.13
14
15
16
17
18
19
20
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22
23
24.25
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. 25
1 AUTHENTICATION
2
3
4 This is to certify that the foregoing
5 proceedings held in the matter of Floating Feather
6 Partners, LLC, Complainant, versus Eagle Water Company,
7 Respondent, commencing at 2: 00 p.m., on Wednesday, July
8 2, 2008, at the Commission Hearing Room, 472 West
9 Washington, Boise, Idaho, is a true and correct
10 transcript of said proceedings and the original thereof
11 for the file of the Commission.
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CONSTANCE S. BUCY
Certified Shorthand
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CSB REPORTING
Wilder, Idaho 83676
67 AUTHENTICATION