20200114Staff 1-13 to Falls Water.pdf

ldaho Public Utililies Commission
Olfice ol tha SecrelarvRECEIVED
JAN I { 2020
{ff xw Notutol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Boise, ldaho
Request No.: FLS-W-19-02 IPUC DR 1
Please describe how the purchase price of $43,385.50 for the transfer of distribution
assets to the City of ldaho Falls is calculated.
a. Please include a list of components of the purchase price, with a description and the
associated dollar amount.
b. Please include workpapers in Excel, if available.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
a. The calculation of the purchase price is found in the missing Exhibit "A" of the
"Asset Purchase Agreement between Seller and City of ldaho Falls, ldaho" (See
Response to Request No. 4). Dave Richards, Superintendent of the City of ldaho Falls
water system, prepared the exhibit based on copies of the original invoices from Landon
Excavating, lnc. and Mountain River, lnc. that Falls Water Co., lnc. provided to the City.
Copies of the original invoices from Landon Excavating, lnc. and Mountain River, lnc.
are included as Exhibit 1 and Exhibit 2, respectively. The original asset installation
costs were depreciated using straight line depreciation as shown on Exhibit'A" of the
Asset Purchase Agreement.
b. Falls Water does not have an Excel version of the calculation in its possession as
the City of ldaho Falls prepared the calculation.
(fl xw Hotuiol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 2
Please provide the net book value of the assets being transferred to the City, by plant
account and subaccount.
Res nse:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
As of December 31 , 2019, the net book value of the assets being transfened to
the City of ldaho Falls are $22,945.87 and are found in plant account 331.
{l ** rloturol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Reoue t Response
Request No.: FLS-W-19-02 IPUC DR 3
Please provide the continuing property records for the distribution assets being
transferred by account number and original cost, accumulated depreciation, and net
book value.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
Exhibit 3 summarizes by year the depreciation of the distribution assets being sold to
the City of ldaho Falls, ldaho from July 22, 2005 to December 31 , 201 9.
Landon Excavating Inc.
3500 Maiben Avenue
Idaho Falls, ID 83406
Exhibit I lnvoice
lnvoica J
42t2
Eill To
Lloyd Cox
Lftaty Ptk
36t6 S. Schwicdcr L^rnc
Idaho Fdls, Idaho E3406
Project
Quantity Arnount
2,N7
4
l14
1,
36,r26.@
r r00.0o
6,270.00
850.m
2
r60
I,700.00
1,7@.@
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943.m
r,334.00
t 5o.@
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4t5.00
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6R0n@5
P.O. No.Tcrmg
Nct l5
RateOescription
200.@
Libcrg Park Additicr - Bid Schcdulc 12
Trlmc Conkol
12' PVC Waicr Main
krsttll 12' 45 Bcnd
Noo - Skirt Canc{crc (l 14 CY)
Instlll 8' x l2' Tcc tr,/ Thrun Bloc}
Llstrll 8' Vrlvc
Instrll 8' Pipe
Co{ur6t To Exining l2'x1.5'
Alphllt Pltdr 65!5'
ArPlult Parci 92tf
kEtlll 8' PluB
Conncct To Eddint l2r lftin
AsplEtt Patrn
Irl'hll 12'Plug /Tkust Bloct
-
CII/ANGE ORDTR
-Msch 10, 2005
> Addcd I MISC, (+t2m.oo)
Ncl chan8c to cstimtc +t2m.00
Total 35t,768.00
Oat€
rt.m
300.m
s5.00
425.N
850.00
r!.@
300.m
93.00
1.33{.00
150.00
300.@
435.m
2@.@
txhf brt 2
Itlountain River,lnc.
l(EO E tirooh Road
Seho Fts, D t3{01
(m)5214175 (m)5246t8t hr
fi{votcE
thttd Cox
3686 Sd'wiederL{E
ldatro Falls, lO 83406
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Total
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Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 4
Please provide Exhibit A and Exhibit C as referenced in the "Asset Purchase Agreement
between Seller and City of ldaho Falls, ldaho" from Exhibit C of the Application.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
Attached are copies of the missing Exhibit A and Exhibit C referenced in the "Asset
Purchase Agreement between Seller and City of ldaho Falls, ldaho" from Exhibit C of
the Application.
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Exhibit B
Job No. 05160
02-16{6
J.C.C.
DESCRIPTION OT TTTE SOUTH BOIJNDARY LINE
OF TTIEFALI,S WATER, COMPANY WATER.SYSTEN{ SERVICEAREA
AND TIIE NORTII BOIJI\DARY LINE
OT TEE CITY OF AMMON WATER SYSTEJT{ SERVICE AREA
Beginning the Esst Quarter Comer of Section 18, Township 2 Norttr" Range 38 East of
the Boise Meridian, Bonneville County, Idaho, said point which lies in Foothill Road,
running thence due west approximately 6700 feet to a natural 'tock outcropping"; thence
following the'tock outcropping" in a south-southwest direction until it connects with
Crowley Road; thence south along Crowley Road to a point that is due east of the rear
property line of the lots between Christy Lane and Amber tane of Centennial Ranch;
thence west to the east property line ofsaid subdivision; thence north along said property
line to the rear property line of lots between Asctrli Lane and Amber Lane; thence along
said property line to the east property line of the lots along Newgate Drive; thence north
along said property line to the north property line of lots along Greenwood Circle; thence
west along said lot line across Ammon Road to the east property line of Tie Breaker
Subdivision; thence north along said property line to First Street; thence north along the
east property line of Fox Hollow Subdivision to the north property line of said
subdivision; thence west along said property line to the east property line of Suiter Farm;
thence north along said property line to the extreme northeast property comer of the
Woodbridge Subdivision.
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{ff nw Notu;or
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 5
Regarding the Purchase Agreement with the City of ldaho Falls, please provide a map
showing the location of the 12-inch main and 6-inch lateral, including all
interconnections with the Company's system.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
Attached, as Exhibit 4, is the requested drawing of the 12-inch main and 6-inch lateral.
The only physical connection for the assets being sold is at the point where the 12-inch
main connects to Falls Water's distribution system at the northwest corner of the
intersection of East Lincoln Road and North 25th East (Hitt Road). lt is at this point that
the City of ldaho Falls will make the disconnection from Falls Water's distribution
system.
{ff xw oturol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Res ponse
Request No.: FLS-W-19-02 IPUC DR 6
Regarding the Purchase Agreement with the City of ldaho Falls, please provide the
following:
a. The work that will be needed to disconnect the 12-inch main and 6-inch lateral from
the Company's system.
b. A cost estimate for this work.
c. Verification that the City of ldaho Falls will be paying these costs.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
B ruce.
a. The work will require the 12-inch main to the west of the intersection of East
Lincoln Road and North 25th East (Hitt Road) to be cut. A section of the line will
be removed to allow for end caps and thrust blocks to be installed on both sides of
the disconnection. The City will be making a connection to its existing system on
the west end of the 12-inch main being purchased.
b. A cost estimate for the work to disconnect the 12-inch main from Falls Water's
system is attached as Exhibit 5.
c. Attached as Exhibit 6 is a letter from the City of ldaho Falls stating that they will be
responsible for all costs to disconnect the distribution assets from Falls Water and
to make the connection of the purchased assets to their distribution system.
PUBLIC WORKS OEPARTMENT
IDAHO FALLS
WORKS
January 2, 2020
Scott Bruce
Falls Water Company
2180 N Deborah Dr,
ldaho Falls, lD 83401
RE: Purchase Agreement - Separation of Utilaty Service
Mr. Bruce,
I sincerely hope that this commitment satisfies any concerns that you, or others, may have regarding
the separation of the utilities and the City's commitment to working with Falls Water Company.
Exhibit 6 Wrt , Dlvblon
Offace (2O8) 612-8471
Fax (2Og) 612-8385
David P. Richards, P.E. - Water Superintendent, City of ldaho Falls
P.O. Box 5o22O | 5g Hemmert Avenue I ldaho Falls, lclaho 834O5-O22O
Recent negotiations between the City of ldaho Falls and Falls Water Company for the purchase by the
city of existing infrastructure installed by Falls Water Company require clarification regarding how the
utilities will be separated in conformance with a proposed Memorandum of Understanding between
the two entities. To clarify the utility separation, the City of ldaho Falls Water Division commits to
conducting, at City expense, the separation of the two utilities this spring. The Water Division will
coordinate with Falls Water Company, once the purchase agreement has been executed, to create the
separation of the utilities on a mutually acceptable date and time to minimize any service disruption
for both utilities.
Kindest regards,
(
{f *w roturol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 7
Please provide a cost breakdown of the estimated upgrades necessary to serve Honey
Bee Acres.
a. Please explain whether the cunent water system will be entirely replaced or just the
main line.
b. Will the service lines to the customers be replaced? Please explain and describe
planned work.
c. Will the customers be billed under the Line Extension policy for the service lines?
Please provide an explanation for Falls Water's approach.
d. Will the customers be billed under the Line Extension policy for the main line?
Please provide an explanation for Falls Wate/s approach.
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
a. The existing system will be replaced due to the age of the 2-inch galvanized main
(4S-plus years). The opportunity to include the Honey Bee Acres water system with
the Falls Water Co., Inc. system provides Falls Water the ability to do a looping
project (see cost estimate Exhibit 7) that will benefit current customers of Falls Water
to the north of the Honey Bee Acres system. The addition of an B-inch looping line
in the Honey Bee Acres Street will provide better water flows and pressure to the
water customers north of lona Road. The opportunity to simultaneously do the
looping project and connect the eighteen Honey Bee Acres customers to the new 8-
inch line has numerous benefits:
'l . The roadway will be disturbed only once instead of twice (i.e., what would be
once to install the 8-inch line and a second time to connect the customer service
lines to the 8-inch line).
2. Financial efficiencies of repairing the roadway only once.
3. The 4S-plus year-old 2-inch galvanized main can be abandoned resulting in
better flows and pressures to Honey Bee Acres customers.
Response:
FLS-W-19-02 IPUC DR 7
NWN Response
Page 2 of 2
4. The cost savings of not having to run the Honey Bee Acres well pumps once the
Honey Bee Acres customers are connected to the 8-inch main.
b. The plan would be to install the 8-inch main and install the individual service lines to
a meter barrel to be located on the customer's property. Falls Water will then
connect the new service line from the meter barrel lo the customer's old service line.
lf the customer chooses, they may pay to have the old service line replaced from the
meter barrel to the home at their expense. Currently, Falls Water only maintains the
service line into and including the meter banel. Any service line repairs or
replacements past the meter barrel are at the customer's expense.
c. The customers will not be billed for the new service lines coming from the 8-inch
main to the new meter barrel that is to be installed. ln lieu of a cash buy out of the
system, the individual connects will be made to the customers' existing service lines.
d. The customers will not be billed for the main line. The installation of the 8-inch main
line is viewed as a system looping improvement for Falls Water's system.
Exhibit 7
Conatruction Cost Es$mate for Waterline Replacement on Honeybee Lane
Item No.Item
Mobilization
New 8" water line
New 8" lees, crosses, frttings
New 8" valves
Fire hydrants
Connection to existing system
Service line reconnection to new main
1" service lines
Meter boxes
Traflic control
Asphalt street repair
Crushed 34" street repair along Honeybee
Unit
lump sum
lineal foot
per each
per each
per each
per each
per each
lineal foot
per each
lump sum
lineal fool
Qtv
I
2,400
1
2
4
2
17
720
17
1
80
Unit Cost
$13,900
$45
$1,500
$1,800
$4,500
$3,000
$400
$40
$1,200
$1,500
$60
Totsl Coll
s13,900
$108,000
$1,500
$3,600
$18,000
$6,000
$6,800
$28,800
$20,400
$1,s00
$4,800
1
2
3
4
5
6
7
8
I
10
11
12 Ln ton13 Well abandonment per each14 Pump slation abandonment lump sum15 Misccllaneous landscap€ repairs lump sum
Totral proiected cofistruction cost (rounded)
Engineering, l€gal, & contingency @ 15o/o of construction
Total Ertimated Proloct Cort
460 s25
$4,000
$5,000
$8,000
$11 ,500
$8,000
$5,000
s8.000
s245,800
s36,900
$282,?00
2
1
1
Prepared by Sthiess & Associates, 70l28l20l9
{fr nw roturol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 8
Please provide Honey Bee Acre's current rates, rate structure and other charges.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
Cunently, Honey Bee Acres charges a flat rate of$30.00 per month per connection
They have no other fees.
G.
Exhibit 8
MEMORANDT'M OF T'NDERSTANDING
BETWENN
FALLS WATER COMPANY
ANI)
THECITYOFAMMON
I. PT'RPOSE
The purposc of this Mcmorandrmr of UDdcrstandirg bctqEca Falls Wat6 Corrprny ("F8lls
watsr") srd The City of Arnrmn ("fumrn'), is to oudinc ftnre boundary for warcr scrvicc area
b€tween Fslls WatcI and Anrnon.
IL STATEMENT OF MUTUAL INTER"ESTS AND BENETITS
Falls l atcr pmvidcs c,atcr 3crvicc to clBtomcrs both iEidc and outsidc of thc Amrmn City
Itryact Zonc. Ammon City proyidcs sltcr scrvicc to cusiom.rs only iBidc thc &nlron City
Inpact Zoac. C\rrcndy thcre rre aras wtcre the Falls Watcr scrvicc rrca and tbc Armnoo scrvicc
arca ovcrhp.
Falls rtratcr, Arrmtr ad thc City of UcorL havc jointly participatcd in a Rcgional Water Plauing
Sntdy ard dev€l@ '?roposcd Savicc Boundarics" for the purpose of maximizing cfficicncy of
wster scrvicc whilc contsolliDg cosB imludiog bul trot limid to enginccring and dcvcloptrenl
co6ts.
It is in the mmal intarBt of Falls Wstcr and Anrnon to voluntarily oudirrc watcr service
boundaries bctuccn Falls Wstcr and Anrnon, in order to prornotc bettcr cnginccring and
dcveloprrnt, alrd to assist developen in undcrstarding ttose arsas which are anticiprted to be
serviced by Falls l abr and thc arcas wtich arc anticipatcd to bc sewiced by Anuron.
III. F,ALLS WATER SER.YICE ARDA:
Falb Watcr rgrccs to providc watcr scrvicc in thc "Falls Watcr Systcm Scrvicc Arca" as illusfatcd
on Exhibit'A," thc AmmryTalls Wrtcr Co., "rffatcr Servicc Boun&ry Map," preparcd by
Schicss & Associstes, which is also dcscnbcd in Exhibit'B," the "Dcscription ofthc South
Boundary Linc of thc Falls Watcr Conpony Water SFtcm Service Arer and the North Boundary
Line of thc City of Anrnon Watcr Systcm Service fuea" datcd February I 6, 2006.
IV. CITY OF'AMMON SERVICE AREA:
Thc City ofAnunon ag€es to provide rryater scrvice in thc "City offu Ilon System Scrvicc Area"
8s illustratcd on Exhibit' A," the Ammon/Falls Watcr Co., "Wrtcr Scrvicc Boundary Map,"
prcparcd by Schiess & Associates, also described in Exhibit "B," thc "Description of thc South
Boundary Line ofthe Falls Water Company Wsler Systcm Service Area and the North Boundary
Line oftbe City ofAmmon Water Syst€m Scrvicc Area" datcd February 16, 2006.
V. MTTIT]ALLY COVENANTS:
PARTICIPATION lN SIMILAR ACTMTIES: This Memorandum of Understanding in no
way restricts Falls Water or Ammon from panicipating in similar agreements wilh other public or
private agencies, organizations, and individuals. Funher, this Memorandum of (lnderstanding in
no \ray restricts Falls Water or Ammon from mutually negotiating with each other for service in
areas which, in the future, they determine will be bener served by altemative agreement.
2. COMMENCEMENT/EXPIRATION/TERMINATION: ThisMemorandumof
Undemtanding takes effect upon the signature of Falls Watcr and the City of Amrmn and shall
remain in cffect for a period of two (2) years from the date oflast signature. This Memorandum of
Understanding shall b€ autornatically extended for succeeding periods oftwo years each unless
olherwisc terminated by either pany as permitted in this Mernonndum of Understanding. Either
Falls Water or Ammon may lerminatc this Mernorandum of Understanding with a 30-day w tten
notice to the other.
3. RESPONSIBILITIES OF THE PARTIES: Falls Water and Anrmon will each utilize their own
resources, including the expenditurc ofth€ir own funds, in pursuing the objectives ofthis
Memorandum ofundentanding. Each party will carry out its separate activities in a coordinated
and mutually beneficial manner.
4. EFFECT ON EXISTING SERVICES: This Memorandum of Understanding does not affect
the existing services ofFalls Water and Ammon or pending applications for water seryice with the
exception ofthe area depicted on the Falls Water/City of Arrunon "Service Area Conflics" which
is attached as Exhibit C. The property describ€d in Exhibit C is cunently serviced by Falls Water,
but is to be served by the Annnon Water System at a future date.
5. SCOPE OF AGREEMENT: This Memorardum of Uodcrstanding only afTects the
"Proposed Service Boundary" bordered by both panies as shoun on Exhibit "A", and is not
intended to require wrinen permission ofthe other party in order for a pany to expand outside of
the "Proposed Service Boundaries".
VI. SIGNA'I'TIRES
Rcpresentative Falls Water Cornpany
I]ntcc l)atc
Mayor, Ci ofAnrmon
sbfuo
6-rca
(f t", Notutol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR I
Were Honey Bee Acre's customers noticed of the request for Falls Water to service
Honey Bee Acres and Falls Water's Application to amend CPCN No. 236?
a. lf so, please provide a copy of the notice.
b. lf not, please explain why Falls Water did not notify these customers.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
The Honey Bee Acres' customers were not sent a notice. We have contacted Bentley
Erdwurm at Staff, talked with him about the notice and are working with Staff to provide
the appropriate notice as needed.
rSr xw ra otu ro l''D'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 10
Will any Honey Bee Acres assets be transferred to Falls Water if Falls Water starts
providing service to Honey Bee Acres? Specifically, will wells, mains, service lines,
water rights or any other assets be transferred?
a. lf assets will be transferred, please provide a list of the assets and identify if money
will be exchanged for any of the assets.
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
The following Honey Bee Acres assets will be transferred to Falls Water:
1. Well #1 with a pump and a variable frequency drive and two bladder
pressure tanks.
2. Well #2 (currently a backup well) with pump.
3. The 2-inch main.
4. The 18 service line connections serving the customers.
5. Water Right # 25-7086.
No money will be given in exchange for the above listed assets.
Response:
{l *, Lotutol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 11
Does Falls Water Company have any Memorandums of Understanding with any of the
sunounding cities (other than ldaho Falls), homeowners associations or municipal water
systems?
a. lf so, please provide copies of these documents.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
Falls Water Co., lnc. and the City of Ammon, ldaho have a Memorandum of
Understanding which was signed in 2006. Exhibit 8 is a copy of the Memorandum of
Understanding with the City of Ammon.
{ff xw roturol'
Rates & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response
Request No.: FLS-W-19-02 IPUC DR 12
Were the customers with wells in the proposed service territory notified of the expansion
of the CPCN?
a. lf so, please provide a copy of the notice.
Response:
Response prepared by Scoft Bruce, General Manager. Witness at hearing will be Scott
Bruce.
The customers with wells in the proposed service territory were not sent a notice. We
have contacted Bentley Erdwurm at Staff, talked with him about the notice and are
working with Staff to provide the appropriate notice as needed.
Request No.: FLS-W-19-02 IPUC DR 13
Has Falls Water informed the Area 14 customer of the proposed transfer?
a. lf so, please provide a copy of the notice.
b. lf not, please explain why Falls Water did not notify this customer.
Response:
Response prepared by Scott Bruce, General Manager. Witness at hearing will be Scott
Bruce.
The customer in Area 14 was not sent a notice that Falls Water is selling to City of
ldaho Falls the distribution assets to which they are connected. We have contacted
Bentley Erdwurm at Staff, talked with him about the notice and are working with Staff to
provide the appropriate notice as needed.
{r ** rotutol'
Rat€s & Regulatory Affairs
FLS-W-19-02
Falls Water Company Amending CPCN
Data Request Response