cobott Direct.pdf

FROM PHONE NO. Jun. 17 2002 06: 29PM P2
2626 Wrenco Loop RoadSa~dlil'ho 83864
Water System Inc.
.,.--'.-,-.-,.--
Telephone [phone]
June 17, 2002
Direct Testimony of Robaer Cobott
Ponderosa Terrace Estates Water System Inc.
Do you agree with Stairs physical description of tbe water system.
Answer; Yes
Please describe the tasks tbat are required to operate and manage the Ponderosa Terrace
Estates Water System IDe.
Answer
1. Make deposits 4 time per month, take deposits to bank, pick up stamps for
statements.. 8-hours time
Z. Make out sheet showing payments received.
hour time
3. Posting payments received once a month to computor
1 ) /2-hours
4. Make out monthly invoices and statements.
5-hours
S. Print out statements to landowners
2-hours
6. Stuff envelopes with statements and put on stamps
hour
7. Take to post office and mail
tII2-bour
8. RKeive bills owed and pay bill owed twice monthly
bours
9. Send and receive pbone calls P.C., Landowners, Real Estate Companys
Escrow companys, Title Companys and D.Q..hours
10. Record new owners address and phone numbers, Record owners change
of address and answer all question requested by landowners.
hours
11. Go after parts and deliver to system when Deeded
3.hours
12. Go to certification class once a year.
I2-hours per year, I-hour per month13. Make out yearly report to Landowners, Send out a copy of report to D.
and P.C. Stuff envelopes, stamp and send out.
12-hoors per year, I-hour per month14. Make out shut off notices and sent out, Handle shut off aod turn on of water.hours
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FROM PHONE NO. Jun. 17 2002 06: 30PM P3
IS. Record the daily water use, taken from the flow Rleter, Record daily test resultsRecord monthly test results, keep track of all the special test tbat are neededand when they are needed.
4-bours
16. Make at least 8-trips per month to the water system, check condition of
water tanks, the two pump houses, the two wells, drive through the propertyand look for leaks, check on landowners tbat don t have water service to makesure they are not getting water from their neighbor with a hose.
32-hours
This figures out to 76.hours per month at 520.00 per hour is 51520.00. How come Icant get what I want 51000.00 per month. Everly day, week, montb and year things
that happen are different. I will settle for 51000.00 per month but nothing less.
What do you believe is the appropriate rate of return on capital investment forPonderosa and why?
Answer; 15%, Most small business have to make at least 15% in orderto justify the capital expenditure.
Should Ponderosa receive more labor-related compensation or a higher rate ot returnthan other regulated small water companies?
Answer; yes, I don t care what other companys have or do all I'm concerned
with is that this eompany has to generate enough revenue to continue
doing business. Every company has different kinds of problems and
expenses, no two companys are the same.
Should the Water Company be required to pay for the mortgage on your home?
Answer; yes, I'm only asking that tbe Water Company pay for thatpart of the mortgage used to put in the second well. The total mortgagewas for $77,000.00 and the part used for the well was only 530 000.00.If other water companys are allowed to get a loan to put in anotherwell and have the landowner pay for this loan, plus interest, over a
sever years period then I also should be allowed to do tbis.
What are the property taxes and maintenance expense for the well and storage site
property.
Answer; There is about 6 .1/2 acres involved in this and I think the
the property tax is about 5300.00 per year
What restrictions, if any should there be on hook-ups for the Water System? Pleaseexplain.
Answer; The system should only be allowed the number of hook-upsthat the system can handIes. However the part time users should
not be considered as full time users. Full time users should be theonly ones figured in as full time hook-ups. Page 1
FROM PHONE NO. Jun. 17 2002 06: 30PM P4
What are the Company s water testing requirements and related fees?
Answer; The free chorine tests are taken daily. The monthly test
is once a month.. There are many other test that have to he preformed
during the year that are required by D.E.Q. The cost of the daily testis $10.00 per day if It is taken by somebody on the property. If I haveto make a trip daily to take the tests then the cost will be $50.00 perday. The monthly cost for water test from the lab is 511.00. The costfor the other test during the year is based on what tests are required.The other tests that have to be taken from botb well so the expense
is doubled.
Please list all the equipment owned by the Water Company. Please assign a value to
each major piece of equipment. What is the value of the remaining equipment?
Answer; There is no equipment that the water company ownes. The
equipment was either sold or it became the property of Robaer Cobonfor wages over the past years. This was all done long before P.
got involved.
Do you own any equipment that is used by theWater Company? H so, list
equipment.
Answer; I have a excavator that I leave on the property. This pieceof equipment is owned by Robaer Cohott and is only used to work
on the Water Company.
What rates a.nd charges do you believe are appropriate for the customers ofPonderosa and why?
Answer; I think the rates should cover the expenses that P.
comes up with. Resident owners and owners that have a live in
structure on their property should pay the same. I think these
owners should pay $65.00 per month. The rest of the owners
should pay around $15.00 per month. It does t really matter as long
as the rate covers everthing.
What hook.up fees do you recommend for Ponderosa and why?
Answer; the landowner has been a system removed for more than
a year then he should have to pay a hook-up fee of 52500.00.I think the shut off fee and turn on fee should be at least 550.00 each..The landowners will be more williDg to pay the water bill on time if heknows that to have the water turned off is going to cost him a total of
5100.00. These landowners are costing the company money because
they are causing the company to send them shut off letters, and causing
the company money to drive out to their resident and shut off the water
If a landowner is 30 days later I want to charge bilU a late fee of 510.
per lot plus 18% interest. Page 3
FROM PHONE NO. Jun. 17 2002 06: 31PM PS
I want to work with P.C. to make this Water Company work. I've gotclose to 5200,000.00 invested in this company and I want a decent wage
and return on my money. If a person does not feel good about the situations put in then its going to reflex in the work be does. These landowners want
water but most don t think they should have to pay much for it. The realizationis with all the controls on water these days, water is not cbeap anymore.
YOU u:Jf-
Robaer Cobott, President
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