20200917Falls Water to Staff 41-50.pdf

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FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 41
REQUEST NO. 41: Please provide a list of all rental properties and lease expenses.
Please include copies of all leases and provide the contractual monthly expenses.
Response:
The Company leases the following properties:
Building at2180 North Deborah Drive, ldaho Falls, ldaho as its office and
warehouse.
o
. Well site and well at 2855 East Lincoln Road, ldaho Falls, ldaho.
o Water Rights for well at 2855 East Lincoln Road, ldaho Falls, ldaho.
o 1986 Peterbilt Dump Truck
The Company is responsible to pay all utilities (electric, natural gas, telephone, and
internet) at2180 North Deborah Drive. The monthly rent for the building is $3,496.00.
The annua! property tax on the building is also paid by the Company. The Company
maintains casualty property insurance on the building and performs needed maintenance
on the building to maintain the building in good condition. Copies of the lease for 2180
North Deborah Drive and the lease addendums and amendments are included with the
response as FLS-W-20-03 IPUC DR 41 Attachments 1 and 2.
The well site lease payment is due annually on August 1st. ln 2019, the amount paid
was $2,150. The annual rent has a built-in escalation factor of $50 each year. Copies
of the Ieases for the well and well site are included with the response as FLS-W-20-03
IPUC DR 41 Attachment 3.
The water right lease payment is due annually on August 1st. The annual amount due is
$3,300.38. A copy of the lease is provided with the response as FLS-W-20-03 IPUC
DR 41 Attachment 4.
The Company leased the 1986 Peterbilt dump truck from January 1,2019 to April 30,
2019. The monthly lease was $848.00 per month. No signed lease agreement is
available. The vehicle was leased from Brent Johnson.
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Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 42
REQUEST NO. 42: Please provide the fixed asset re-valuation summary completed
after the sale to Northwest Natural Water Company on September 14,2018. Please
include with your response all workpapers and supporting documentation.
Response:
Four files are included that show the changes to revalue the assets as of September 14,
2018.
FLS-W-20-03 IPUC DR 42 Attachment 1 (Excelfile "Meter Depreciation as of Sept 14
2018.x1s") shows the calculation of depreciation of assets through September '14,2018
This file in conjunction with FLS-W-20-03 IPUC DR 42 Aftachment 2 (Excelfile "Meter
Depreciation starting Sept 15 2018.xls') show the revalued assets after removing the
depreciation through September 14, 2018.
The joumal entry pdf files attached (FLS-W-20-03 IPUC DR42 Aftachments 3 and 4)
show the entry made to remove Accumulated Depreciation for investor owned assets
and the entry made to remove Accumulated Amortization of CIAC assets calculated
through September 1 4, 2018.
llW ]loturol'
Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 43
REQUEST NO. 43: Please explain the Company's policy for awarding
bonuses/incentive payments to Staff and the criteria to receive the bonuses. Please
explain how this bonus/incentive policy benefits customers.
Response:
The Company has always given a year-end holiday bonus to its employees to show
appreciation for their efforts during the past year. This bonus has been modest in
nature, but has always been appreciated by the employees. When the employees are
happy, their performance at work improves thus providing good service to the
customers.
ln the purchase of the Company by Northwest Natural, a bonus incentive was given to
employees who were working for the Company as of the date of sale. The bonus was
in the form of a Restricted Stock Unit (RSU) distribution over a five-year period. The
incentive was placed in the purchase agreement to encourage the existing employees
to stay with the Company after the sale. The RSU bonus distributes a fixed number of
shares to the employees based on their time employed at the Company. Those with the
longest tenure receive the most units. This encourages the employees with the most
working knowledge to remain with the Company after the change of ownership. Even
with this incentive, the Company lost its third longest tenured employee and another
employee of shorter tenure during the first year after the ownership change. The longer
tenured employee left the Company because the former employee was offered better
wages by a neighboring water system. The other employee left the Company to take a
higher paying job with an excavation contractor in the area.
The benefit to the customers regarding the RSU bonus is that the Company retains its
skilled professional workforce. The customers also benefit from skilled workers that
know the details of the water system and provide quality service to protect the public's
health and safety.
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4,lllfl Noturof
Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 44
REQUEST NO.44: Please provide an invoice and description of the Company's $159
advertising expense in 2019.
Response:
A copy of the invoice from Sign Pro is included with the response as FLS-W-20-03
IPUC DR 44 Attachment 1. The invoice was for Falls Water Co., lnc. decals placed on
the driver and passenger doors of the 2019 pickup truck purchased May 21, 2019 for
use by the Company's Operations Manager, Tony Wise.
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Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 45
REQUEST NO. 45: Please provide the following for Well Number 10:
a.copies of all related contracts and invoices;
b.an explanation for the purpose of each contract/invoice; and
c.lnvoices for the Funds Transfer found in account 343 - Tools and Equipment.
Response:
a. The invoice copies for Well 10 are provided with this response as FLS-W-20-03
IPUC DR 45 Attachment 1. The contract for drilling the well is also provided with this
response as FLS-W-20-03 IPUC DR 45 Attachment 2.
b. The list of all invoices with their purposes noted is provided in the Excel
spreadsheet provided as FLS-W-20-03 IPUC DR 45 Attachment 3.
c. The invoice found in account 343 is provided as FLS-W-20-03 IPUC DR 45
Attachment 4. The invoice is for a trench box that was purchased to provide added
safety to our servicemen as they did excavation repairs and installations.
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Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 47
REQUEST NO. 47: Please provide copies of all Company Credit Card Stiatements for
2018.
Response:
lncluded as FLS-W-20-03 IPUC DR 47 Attachments 1 through 16 are copies of the
Company's 2018 credit card statements: Capital One credit card statements for
January 2018 through October 2018 and CitiBusiness credit card statements from July
2018 through December 2018.
.l)IW ]loturol
Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Reouest Response
Request No.: FLS-W-20-03 IPUC DR 48
REQUEST NO. 48: Please provide copies of invoices for purchases larger than 94,000
found in the following accounts for 2019:
a.311 - Pumping Equipment;
b.340 - Office Furniture and Fixtures;
c.343 - Tools and Equipment; and
d.345 - Power Operated Equipment.
Response:
Copies of the invoices for purchases larger than $4,000 are included with the response.
a. 311 - Pumping Equipment; 1 invoice for $29,776.59 (FLS-W-20-03 IPUC DR 48
Attachment 1)
b. 340 - Office Furniture and Fixtures; 1 invoice for $4,022.70 (FLS-W-20-03 IPUC
DR 48 Attachment 2)
c. 343 - Tools and Equipment; 2 invoices for $19,413.26 and $11,866.15 (FLS-W-
20-03 IPUC DR 48 Attachment 3)
d. 345- PowerOperated Equipment. 1 invoicefor$41,870.00 (FLS-W-20-03 IPUC
DR 48 Attachment 4)
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Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 49
REQUEST NO. 49: Please provide the bill of sale for the following vehicles and explain
the reason for each sale:
a.2012 Ford Pickup - $44,450.00; and
b.2007 Cadillac Escalade - $10,484.44.
Response:
2012 Ford Pickup was the company vehicle that was driven by Brent Johnson, the
PresidenUOwner of Falls Water before the sale of the company to Northwest Natural
Water, LLC. Mr. Johnson did not include the 2012 Ford Pickup as part of the assets
being sold to Northwest. As the vehicle was fully depreciated, he had the title of the
vehicle transferred to his name and it was removed from the asset !ist. No bill of sale
was created.
2007 Cadillac Escalade was sold to Clair Manwill on January 11,2019. The vehicle
was starting to experience mechanical issues and the company did not want to pay for
repairs to the vehicle since it was twelve years old. The bill of sale is provided as FLS-
W-20-03 IPUC DR 49 Attachment 1.
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Rates & Regulatory Affairs
FLS-W-20-03
Falls Water Company Rate Case
Data Request Response
Request No.: FLS-W-20-03 IPUC DR 50
REQUEST NO. 50: Please provide the bill of sale for the purchase of the following
vehicles and explain the reason for each purchase:
a.2007 Peterbilt Dump Truck - $41,024.34;
b.Equipment Hauling Trailer - $15,000.00; and
c.2019 Chevy 2500 - $42,981.10.
Response:
Copies of bills of sale for the requested purchases are included with the response
a. 2007 Peterbilt Dump Truck - $41,024.34 (FLS-W-20-03 IPUC DR 50 Attachment 1).
The dump truck was purchased to replace the aging rental 1986 dump truck leased
from Brent Johnson. The dump truck is necessary when hauling off dirt and spoils from
repairs made to the system and bringing new materials to the repair site. The Company
purchased a used 2007 vehicle that was mechanically sound and in decent condition to
perform the necessary work of hauling materialfrom and to repairs made in the system
by our servicemen.
q Equipment Hauling Trailer - $15,000.00 (FLS-W-20-03 IPUC DR 50 Attachment 2).
The equipment hauling trailer was purchased to haul the Company's backhoe and/or
mini excavator to and from repairs, thus reducing wear and tear on the equipment,
prolonging tire and track life, and reducing time to mobilize equipment for a repair.
c. 2019 Chevy 2500 - $42,981.10 (FLS-W-20-03 lPUc DR 50 Attachment 3). The
pickup was purchased to replace the 2007 Cadillac Escalade that was sold in January
2019. The vehicle is being used by the Operations Manager to oversee work being
done in the water system.