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HomeMy WebLinkAboutSMITH.docx 1 (The following proceedings were 2 had in open hearing.) 3 (Staff Exhibit Nos. 101 through 4 106 were marked for identification.) 5 COMMISSIONER KJELLANDER: Oh. And 6 117? 7 MS. NORDSTROM: 117 through 119. 8 COMMISSIONER KJELLANDER: 117 through 9 119, okay, and those are accompanied by the 10 rebuttal. Thank you. Hearing no objection, shall 11 be done. 12 (Staff Exhibit Nos. 117 through 13 119 were marked for identification.) 14 MS. NORDSTROM: Thank you. And I 15 tender this witness for cross-examination by 16 Mr. Cobott. 17 COMMISSIONER KJELLANDER: Thank you. 18 Mr. Cobott. 19 20 CROSS-EXAMINATION 21 22 BY MR. COBOTT: 23 Q. In your testimony, Bob, you made a 24 comment that I thought was really cheap, that I did 25 not present you with time cards for myself prior to 27 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 PUC involvement or after PUC involvement, or for 2 Larry. Now, what makes you think that an 3 owner/operator needs to have a time card on 4 himself? Isn't this a little ridiculous? 5 A. The comment was not to indicate that 6 you should retain those kind of records on yourself, 7 necessarily. However, it was to indicate that I 8 could not find anything -- it was to indicate I 9 could not locate any form of written documentation 10 in support of the time. 11 Q. Well, prior to PUC being involved, I 12 knew nothing about PUC, I'd never heard of PUC 13 before, so what makes you think that I was going to 14 keep documents or records? In other words, what 15 you're saying is what I said was a lie. You don't 16 accept anything that I said when it comes down -- 17 COMMISSIONER KJELLANDER: Mr. Cobott, 18 one question at a time, please, and allow the 19 witness to respond. 20 MR. COBOTT: Okay. 21 THE WITNESS: No, as a matter of fact, 22 Mr. Cobott, what I was trying to indicate was that 23 through the interviews that I had with you in August 24 of last year and followed up with a couple of other 25 meetings, that in discussions with you, you 28 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 estimated the time that you were spending operating 2 and maintaining the system, and I relied upon your 3 spoken word as to what kind of time was being spent 4 to operate and maintain this system. And that was 5 the basis of my recommendations based upon those 6 interviews. 7 Q. BY MR. COBOTT: Wasn't the time, if 8 I'm not mistaken, wasn't it $750 a week to start 9 with? Wasn't there paperwork that I brought to 10 Boise, didn't it state $750 a week? 11 A. Mr. Cobott, when you came to Boise and 12 brought me your paperwork, I believe that was in 13 March of this year. 14 Q. No. 15 A. Or February of this year possibly. 16 Q. Yeah, I came in March 31st or 17 something like that with my boxes of paperwork. 18 A. That's correct -- 19 Q. And I gave you -- 20 A. -- you did. 21 Q. -- a typed-out form stating certain 22 things like profit for the Company, wages, so on and 23 so forth, and the wages that I set at that time was 24 $750 per month. After reviewing my expenses and 25 reviewing my time and what have you, 750 doesn't 29 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 cover it, but it was not -- it definitely wasn't 2 $80, or $320 a month. 3 COMMISSIONER KJELLANDER: Mr. Cobott, 4 is there a question? This is your opportunity to 5 ask questions in cross-examination. Do you have a 6 question for Mr. Smith? 7 Q. BY MR. COBOTT: My question is how do 8 you come up with the $80 a week? 9 A. The management fee that I included 10 there was based upon my interviews with you, 11 Mr. Cobott, over a period of months beginning in 12 August of last year when we had our first meeting 13 here in Sandpoint. Based upon the information you 14 provided me, I came to the conclusion that you were 15 spending approximately four hours a week on doing 16 the administrative work on the water system. That 17 was based upon the information you, yourself, 18 provided me in our interviews. 19 Q. Well, unless I'm mistaken, I didn't 20 provide you any other information other than the 750 21 per week. 22 But my other question is -- which I 23 just lost -- well, we'll get back to that if I think 24 about it. 25 Is every -- these water systems that 30 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 you go out and you audit that you refer to in your 2 testimony, is every one of these water systems, 3 including mine, are we all identical? 4 A. Certainly not. 5 Q. Well then how can you compare one to 6 the other? Every water system -- doesn't every 7 water system have its own set of problems and 8 conditions? 9 A. They certainly do. 10 Q. Do you take any of that into 11 consideration? 12 A. Absolutely. 13 Q. How can you take it into consideration 14 when you know nothing about it? It's obvious you 15 don't know anything about it or you wouldn't make 16 the statements that you do. 17 You're not going to have an answer for 18 it because there is no answer for it. 19 COMMISSIONER KJELLANDER: Mr. Cobott, 20 you have to ask a question for which he can provide 21 an answer; and if you have a question there that you 22 think he can provide an answer to, certainly please 23 address him in that fashion. 24 Q. BY MR. COBOTT: You state in there 25 about my -- about the 12-percent return? 31 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 A. That's correct. 2 Q. Yeah. Now, that 12-percent return 3 covers my investment, my profit, and anything to do 4 with having to get a mortgage to finance the loan. 5 The mortgage interest alone is 11.74 percent, so how 6 do you come up with 12 percent? Am I not going to 7 get any return on my money or any profit, is that 8 how that works? 9 A. Mr. Cobott, that 12 percent is a 10 return on equity, a number that this Commission has 11 used for a number of years for small water 12 companies. It normally is a rate that is higher 13 than would be allowed for a large, publicly-traded 14 public utility like Avista Corporation that trades 15 stock on the market, recognizing that a small water 16 company is inherently more risky for the owner than 17 is a stock company. The 12 percent is to provide a 18 return on the capital invested in the physical 19 assets for which you earn a return, and it is 20 intended to cover all of your costs of capital. 21 Q. In your previous statements, you said 22 that the mortgage amount that I applied for to be 23 reimbursed, you said that was covered in the 12 24 percent. You disallowed it, all of it. 25 Now, if you're disallowing all of it, 32 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 how come other water companies can get a loan and 2 have it paid for over a seven-year period, including 3 interest and the principal, but I'm not allowed 4 this? 5 A. Mr. Cobott, based upon your question, 6 if the mortgage loan were added in, that would 7 represent a double recovery of the same costs. 8 Q. Where does a double recovery come 9 from? What are you talking about? 10 A. What I am referring to is the five 11 thousand -- whatever it was -- dollars that you have 12 included to make your mortgage payments would 13 duplicate 12-percent return that is allowed you on 14 the assets for which you borrowed the money to make 15 the investment to begin with; therefore, it would be 16 a double recovery of the -- on the same investment. 17 Q. Well, how do you figure that when the 18 12 percent only amounts to $3,000 and the mortgage 19 is over 5,000? That's only the part that I used for 20 the water system. What about the profit? What 21 about my capital gains on my investment, my 100-plus 22 or close to $200,000 that I have invested? Where 23 does that return come from? Am I just supposed to 24 sit back and forget it? 25 A. Mr. Cobott, according to your own 33 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 records, all of your initial investment in that 2 water company has been fully depreciated and you 3 have recovered that cost already. 4 Q. That is not an acceptable answer. I 5 want to know where my money is. I spent a lot of 6 time -- 16 years -- investing money in this company, 7 and you've got it down as 126,000. There's many, 8 many more thousands of dollars. Did you research it 9 all the way back to 1986 and see how much money was 10 invested? 11 A. I asked you initially when we met last 12 August for documentation to support your 13 investments. You provided me the information in 14 March of this year, some of the information you 15 provided me, which amounted to an invoice for the 16 construction of your new well. 17 The note where you originally 18 purchased the water system was available through 19 County records, that was not provided by you, the 20 $100,000 original purchase contract. 21 Q. If I'm not mistaken, I brought you a 22 copy of the purchase agreement, didn't I, at that 23 meeting? 24 A. I don't believe you did. I do, 25 however, have a copy of that purchase agreement, and 34 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 I believe it's an exhibit in this case. 2 Q. It is. Okay, getting back to my wages 3 now: What happens if I spend more than four hours a 4 week on the water system? Do I just work the rest 5 of the hours for free or how does that work, in your 6 opinion, in your -- in your opinion? 7 A. The way rates are set for a company is 8 to establish what appears to be a normal pattern of 9 operation and provide a revenue stream that will 10 support the operation of the company under those 11 normal circumstances. As you stated yourself a 12 moment ago, every company may have its own 13 particular peculiarities. The same is true of any 14 company from year to year may experience more or 15 less need to devote time to the operation of the 16 company. We try and take that into consideration so 17 that the years when there is little labor 18 requirement on the system is offset by those years 19 when there is a lot of labor required to operate the 20 system. And it is a, quote, normalized approach to 21 setting rates. 22 Q. Who? You said "we" take this under 23 consideration. As far as I know, you're the only 24 one that takes any of this under consideration. You 25 make the determination yourself, wholly. 35 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 A. I do not operate in a vacuum, 2 Mr. Cobott. I work with peers in my office. My 3 testimonies are reviewed by my supervisor. My 4 testimonies are reviewed by other persons in the 5 office who do similar work that I do on other 6 companies, and we try and share information back and 7 forth and be consistent from company to company, 8 from industry to industry. 9 Q. Wouldn't it make more sense for an 10 owner/operator to be on a salary? I mean, here he 11 is, our owner/operator, and I have to be on a wage, 12 on an hourly wage and hours? Wouldn't it make more 13 sense for an owner/operator to be on a salary? 14 Sure, some weeks you might only spend six or eight 15 hours; other weeks you might spend 20 hours. The 16 overall picture is what we have to go for here. I 17 can't believe that you expect an owner/operator to 18 be on a hourly wage, especially four hours a week. 19 That's ludicrous and I will not accept that in any 20 shape, way, or -- any shape, way that this 21 Commission wants to present it or wants to accept it 22 or whatever. It will not be accepted by me, I want 23 to make that quite clear. 24 COMMISSIONER KJELLANDER: Mr. Cobott, 25 is there a question? 36 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Q. BY MR. COBOTT: Yes. I asked him my 2 question about the salary. 3 COMMISSIONER KJELLANDER: Could you 4 restate that so that he can respond? 5 Q. BY MR. COBOTT: Wouldn't it make more 6 sense to be on a salary because nothing -- like he 7 says, nothing in this particular type business, 8 nothing is true to form. It's not like going to an 9 8:00-to-5:00 job, doing such and such for eight 10 hours and going home. Some weeks it's going to be 11 more than other weeks depending on situations that 12 happen, letters that have to be written, all kinds 13 of numerous things. I know: I've been doing this 14 for 16 years. 15 COMMISSIONER KJELLANDER: Mr. Cobott. 16 And do you have the question squarely 17 understood, Mr. Smith? 18 THE WITNESS: I think I understand the 19 question. I'm looking for a reference in my 20 testimony. I can't put my hands on it right now, 21 but in my testimony, my direct testimony that was 22 prefiled on June 7th, I discussed that issue and I 23 explained that what we put together for these 24 purposes is somewhat akin to a budget in coming up 25 with a revenue requirement. 37 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 And, no, you must not stick line item 2 by line item to the items that we've got in here; 3 that once a revenue requirement is set, it is at 4 your discretion, Mr. Cobott, as the owner, to 5 determine how to distribute those revenues you 6 collect to pay your costs, whether it's paying 7 Mr. Fairfax to do work, whether it's paying yourself 8 to do work, whether it's to pay your operating 9 expenses. The only thing we want you to do is use 10 that money prudently. 11 Q. If that's the case, then why did we 12 even put the wage thing in there? Why insult me? 13 A. It is not intended to be an insult -- 14 an insult, excuse me. What it is intended to be is 15 a stepping stone to build a ladder, so to speak, to 16 come up with a total revenue number. You have to 17 base that on some kind of foundation. You cannot 18 just pick a revenue number out of the air. We 19 can't, the Commission Staff, cannot just pick a 20 revenue number out of the air and say, That looks 21 like a good number. We have to build it up to show 22 where those dollars would be prudently expended. 23 Q. Then why on your estimate of wages, 24 why did you say it was arbitrary? You must have had 25 some doubts. 38 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 A. Oh, certainly it's arbitrary in that 2 there is no record. 3 Q. It wasn't fact, it was arbitrary, it 4 was just a figure you brought out. Is that correct? 5 A. Now which factor are you referring 6 to? 7 Q. I'm talking about my wages. You made 8 a comment on the paperwork and said it was 9 arbitrary. 10 A. The -- the dollar value assigned to 11 that was, yes, but as I recall in the testimony, I 12 indicated that we recognize that the responsibility 13 of being the owner/operator/manager of the system 14 should receive a higher rate of pay than a 15 maintenance person would receive for having the 16 responsibility. So, yes, it was somewhat arbitrary, 17 but it's based upon a fair feeling, knowledge of 18 what's going on in the workplace, what wages are and 19 what kind of responsibilities are expected of an 20 owner/operator company. 21 Q. Well, I disagree with that statement 22 you just made because I have commented on that with 23 letters many times to the Commission on the wages, 24 and to this day, it's still four hours a week at $20 25 an hour and it says "arbitrary." Now, "arbitrary," 39 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 as far as I'm concerned, means could be, may be, 2 should be, could be. You don't really know. 3 A. No, sir, I don't, and obviously I 4 attempted to try and get that kind of information. 5 We could not get documentation in support, 6 therefore -- 7 MS. NORDSTROM: Mr. Chairman, I'd like 8 to recommend that we move on to a different issue. 9 Sounds like we've exhausted this one. If there are 10 any other questions that Mr. Smith can answer in 11 regard to wages, I'm sure he'd be more than happy 12 to, but I think we'd all agree that they're somewhat 13 arbitrary and that's been thoroughly explored. 14 COMMISSIONER KJELLANDER: Why don't we 15 allow the completion of the response that Mr. Smith 16 was on, and then we'll go back to see what his line 17 of questioning was. 18 MR. SMITH: I'm not sure I can 19 remember where I was at. 20 In coming up with the total labor 21 costs for this company, I attempted to -- to 22 separate the various responsibilities, the 23 functions, if you will, between management 24 responsibility and operation and maintenance 25 responsibility, recognizing that the management 40 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 responsibility should be reimbursed at a rate 2 greater than or compensated at a rate greater than 3 operation and maintenance would be compensated. 4 Based upon our interviews and our 5 discussions, I came to the conclusion that you were 6 spending approximately four hours a week doing the 7 administrative part of running this company; 8 therefore, at four hours a week, assigned a value on 9 that that is greater than an operation and 10 maintenance wage and salary limit. 11 Q. BY MR. COBOTT: I want to know how you 12 came up with those figures. You had nothing from 13 me. 14 A. Only your word, Mr. Cobott. 15 Q. My word? I never said anything about 16 four hours a week. I never said -- I would never 17 say anything about four hours a week. No -- I'm not 18 stupid. 19 COMMISSIONER KJELLANDER: Mr. Cobott, 20 let's get to a question. 21 Q. BY MR. COBOTT: Did you read my 22 testimony, my direct testimony? 23 A. I did. 24 Q. So do you agree with it? 25 A. No. 41 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Q. Okay. You don't agree with mine; I 2 don't agree with yours. End of story. 3 Why don't you agree with mine? 4 A. That's what my rebuttal testimony was 5 all about, Mr. Cobott. 6 Q. Tell me in your words why you don't 7 agree with it. 8 A. It is duplicative of ours, it appears 9 to count several of the functions independently that 10 should be accomplished simultaneously and comes up 11 with artificially high numbers. 12 Q. So you know exactly how the business 13 runs? You're here watching me run it 12 months out 14 of the year, 52 weeks out of the year? You see what 15 I have to do and you know all that? You're that 16 intelligent that you know all of this? My testimony 17 is my testimony, and it will stand. 18 COMMISSIONER KJELLANDER: Is there a 19 question, Mr. Cobott? 20 MR. COBOTT: Yes. I want to know why 21 he makes these determinations and why he has the 22 right to make these determinations and why the 23 Commission believes what he says. I want to know 24 these answers. This is my -- this is my business 25 here. I have the right to defend my business and I 42 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 will defend it. 2 MS. NORDSTROM: I'd like to request 3 that Mr. Cobott pick one question at a time for him 4 to answer so that he answers all your questions 5 thoroughly. Which one would you like him to answer 6 first? You mentioned several. 7 MR. COBOTT: On my testimony. 8 COMMISSIONER KJELLANDER: Could you 9 restate that specific question? 10 Q. BY MR. COBOTT: I want to know why you 11 don't believe my testimony. You have called me a 12 liar before. 13 A. Mr. Cobott, I have never referred to 14 you as a "liar." 15 Q. Well, maybe you never said I was a 16 "liar." 17 COMMISSIONER KJELLANDER: Mr. Cobott, 18 this is argumentative. This isn't going to get us 19 any further down the path. If you have a direct 20 question for Mr. Smith in relation to his testimony, 21 please ask that question so we can move forward on 22 this. 23 MR. COBOTT: Well, it looks like to me 24 here that this is a one-sided question and answer. 25 No matter what I say, I don't get recognition. 43 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Mr. Smith here, whatever he says -- 2 COMMISSIONER KJELLANDER: Mr. Cobott. 3 MR. COBOTT: No, I'm going to state my 4 statement. 5 COMMISSIONER KJELLANDER: You will 6 have an opportunity to present your statement, your 7 facts, at that appropriate time. Once the Staff has 8 put on its case, you will then have your opportunity 9 for your comments. The only purpose of 10 cross-examination at this point is for you to ask 11 questions of the witnesses that you feel may be in 12 opposition to your viewpoint. Your opportunity for 13 a statement will come later. It's not as if we're 14 tying to rule you out from having that opportunity, 15 but this is not the appropriate time for that. 16 That's why I keep coming back to would you like to 17 ask him a direct question in cross-examination. You 18 will have an opportunity when you're sworn in to 19 provide your testimony. 20 MR. COBOTT: I'm going to let Larry -- 21 is it all right if I let Larry Fairfax ask a couple 22 questions? 23 COMMISSIONER KJELLANDER: Mr. Fairfax. 24 MR. COBOTT: Or you want me to finish 25 up? 44 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 COMMISSIONER KJELLANDER: Do you have 2 other questions or are they related to this? 3 MR. FAIRFAX: They're related to the 4 hourly wages he has down here. 5 COMMISSIONER KJELLANDER: Without 6 objection, we'll go ahead and allow Mr. Fairfax to 7 ask questions -- 8 MS. NORDSTROM: That's fine. Staff 9 has no objection. 10 COMMISSIONER KJELLANDER: -- along the 11 same line. So, Mr. Fairfax, please proceed. 12 13 CROSS-EXAMINATION 14 15 BY MR. FAIRFAX: 16 Q. All I've got is a couple other 17 questions. 18 You've got down here you called the 19 Labor Department and got some wages quoted to you on 20 this sheet. Did you call anybody else, any actual 21 plumbers? 22 A. No, I only got this testimony of 23 Mr. Cobott -- 24 Q. "No" is fine. That's all I needed, a 25 "yes" or "no." 45 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Have you ever had any plumbing work 2 done in your house, just simple "yes" or "no"? 3 A. Yes. 4 Q. Did you pay them $15 an hour, "yes" or 5 "no"? 6 A. No. 7 Q. Okay. How much did you pay? 8 A. I believe the service call the last 9 time I -- I do most of my own plumbing. I believe 10 the last time I used a plumber has probably been 20 11 years ago. I don't know, 20, $25 at that time. 12 Q. Okay. Have you ever had any 13 excavating work done with a backhoe, cat, grader, 14 anything along that line? 15 A. I've never hired it done, no. 16 Q. And you didn't call anybody on that 17 neither, other than the Labor Department? 18 A. That's correct. 19 Q. Did you ask him what the minimum state 20 wage was or did you ask him what the wage was at 21 that time? 22 A. When I called the Department of Labor? 23 Q. Right. 24 A. I asked for the going wages for 25 various occupations as shown on my Exhibit No. I 46 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 believe it's 117. 2 Q. Right. 3 A. Yes. 4 Q. Now, on, I don't know, this page here 5 on your rebuttal where your figures come up -- 6 COMMISSIONER KJELLANDER: Could you 7 refer to a -- 8 Q. BY MR. FAIRFAX: -- you've got me down 9 here -- 10 COMMISSIONER KJELLANDER: What page 11 number? Could you refer to a page number? 12 Q. BY MR. FAIRFAX: Sure. Where are they 13 at on here? 14 A. Should be in the bottom, right-hand 15 corner. 16 Q. Okay. On 118, on line 19, you've got 17 Fairfax Monthly Schedule, Coliform test, and I 18 notice you -- you've got that down at 2.5 hours. 19 Okay. And then you say I duplicate this same thing 20 down here on line 21, two lines down. 21 A. Okay, yes, I see those. 22 Q. If you would have checked with me, I 23 would have explained to you there's more than just 24 one test that's done on the water system. There's 25 several, matter of fact 20-some tests that have to 47 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 be done throughout the year, not including the 2 coliform test. 3 A. I'm quite familiar with the testing 4 requirements. 5 Q. Okay. So there's no duplicate there 6 where you're indicating a duplicate test. 7 A. I wasn't referring to duplicate 8 testing there, Mr. Fairfax, as I was duplicate time 9 required to take the water samples. 10 Q. Well, each test takes a matter of time 11 to do it, and if you follow that line over you've 12 got $3.33 for doing that test? 13 A. I believe that's three hours and 33 14 minutes, times the rate. 15 Q. Under "Cost"? That's not a dollar 16 figure under "Cost"? 17 A. Oh, I was on the other line. I'm 18 sorry. 19 Q. Where did you get that figure? 20 A. It is the .33 hours times $10. 21 Q. Where did you get that figure? 22 A. Based upon the data that was provided 23 in your testimony and Mr. Cobott's testimony. 24 Q. In this right here? 25 A. I can't see it very well from here. 48 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Q. It's the sheet I supplied to you for 2 the hours that I do during the week. 3 A. Correct. 4 Q. And semi-annually? 5 A. Correct. 6 Q. So what you're saying is you've cut my 7 wages from $20 an hour down to $10 an hour just off 8 of your own knowledge of operating the water system? 9 A. This exhibit was not put together to 10 set your salary or Mr. Cobott's salary. It was put 11 together to be indicative of what it would cost to 12 pay someone at the going wage and salary rates 13 quoted to me by the Department of Labor. 14 Q. This one was? 15 A. The one I put together, correct. 16 Q. Not the one I supplied you with what I 17 would charge? 18 A. That's correct. 19 Q. Okay. And you also talked to some 20 water systems and confirmed that your prices were 21 right? 22 A. Which prices are you referring to? 23 Q. The one -- obviously you have a lot 24 lower wages than what I put down on here, a lot less 25 time, so you must have talked to another water 49 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 system and found out that it takes less time to take 2 this test and do the book work? 3 A. I am quite familiar with the amount of 4 labor that other water systems are reporting to our 5 Commission in their annual reports. I have an 6 exhibit in my direct testimony that draws those 7 comparisons. 8 Q. With one system or more than one? 9 A. With about seven or eight, I believe. 10 Q. Okay. And you actually came out and 11 went with me and did the tests? 12 A. No. 13 Q. So you actually -- you're just 14 guessing that that's how long it takes? 15 A. I'm basing it upon fairly intimate 16 knowledge with what is going on in the field. I'm 17 aware of what kind of tests are required, and I'm 18 also aware that the time to take those tests, to 19 take the samples, because you're not doing the test 20 yourself -- 21 Q. Well, actually we do do the daily 22 tests ourselves. 23 A. You do the chlorine test. 24 Q. Correct. 25 A. On a daily basis. 50 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 Q. Correct. 2 A. Which is a fairly simple process. 3 Q. Is it? 4 A. The other labs tests, the coliform 5 bacteria, the SOCs, VOCs, et cetera, have to be 6 taken to a State-licensed laboratory. 7 Q. Okay. Well, this test that's so 8 simple, this chlorine test, why don't you explain it 9 to us, how it's done? 10 A. I believe you just simply -- 11 Q. You believe or you know for sure? 12 A. I've never taken one myself. 13 Q. But you just stated to this committee 14 that you knew it was a very simple test? 15 A. It's my understanding from people I 16 have talked with that do these kind of things that 17 it's a very simple test. 18 Q. Okay. So explain how it's done. 19 A. It's my understanding that it's simply 20 a matter of taking a water sample and putting it 21 into a beaker or a bottle and adding a chemical 22 additive to it, and comparing the color change with 23 a chart. 24 Q. Okay. So you're saying you just turn 25 on the tap, fill up the test tube in your case, and 51 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 it's done. Right? 2 A. That's my -- I believe that in a very 3 small nutshell, that does it, yes. 4 Q. Right. For your information, that is 5 incorrect 100 percent. So what you should do -- I 6 don't know if I'm out of line for saying this, but 7 if you should go and meet with us and went out and 8 took a test so you knew for sure what was going on 9 on a test like this before you put down here that 10 it's only worth $3.33 to take that test. Do you 11 understand? 12 COMMISSIONER KJELLANDER: Is there a 13 question there? 14 MR. FAIRFAX: Nope. He answered the 15 question when he said he didn't know what he was 16 doing. 17 COMMISSIONER KJELLANDER: I think that 18 was his response. Do you have a question? 19 Q. BY MR. FAIRFAX: Okay. You have down 20 here yearly annual certification class takes one 21 hour? 22 A. This is a monthly estimate, sir. 23 Q. So that would be one hour every single 24 month? 25 A. That is the 12 hours required annually 52 HEDRICK COURT REPORTING SMITH (X) P.O. BOX 578, BOISE, ID Staff 1 spread over 12 months. 2 Q. Okay. That's my next question. Okay, 3 that's it. 4 COMMISSIONER KJELLANDER: Thank you. 5 Are there further questions, Mr. Cobott? 6 MR. COBOTT: Not at this time. I 7 might want to -- I might want to get some answers 8 from you later in this proceeding if possible, but 9 right now, I better calm down. 10 COMMISSIONER KJELLANDER: Okay. And 11 the witness will be available and if there is an 12 opportunity for that, we'll deal with it in the 13 appropriate fashion at that time if there are any 14 objections to further questions at that point. 15 Let's look now at moving towards 16 redirect. Oh, Commission questions first. Are 17 there questions from the Commission? And I think I 18 just have one that I'd like to get to. 19 20 EXAMINATION 21 22 BY COMMISSIONER KJELLANDER: 23 Q. Mr. Smith, do you have your testimony 24 with you? 25 A. I do. 53 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 Q. Okay. On the bottom of page 7, 2 lines 21 through 25, and the top of page 8, lines 1 3 through 4, I think that may be the testimony that 4 you were indirectly referring to in Mr. Cobott's 5 questioning. I was wondering if you might just sort 6 of give me a quick evaluation of that answer and 7 actually elaborate on what that means for the 8 Company in regards to some flexibility that may 9 provide them with regards to how they deal with and 10 pay for individuals? 11 A. Can I have just a moment to read back 12 through that? 13 Q. Certainly. 14 A. All right, sir, I think I can respond 15 to that. 16 Q. Thank you. 17 A. As I responded to Mr. Cobott to one of 18 his questions, when the Staff makes a recommendation 19 for a total revenue requirement, we have to do it on 20 the basis of some building blocks. You have to 21 build up to what a reasonable revenue requirement 22 is. Those building blocks include reasonable 23 expenses for testing, reasonable expenses for 24 electricity, reasonable compensation for labor, for 25 the various functions of labor. Management labor, 54 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 as I indicated to Mr. Cobott, certainly carries a 2 higher compensation level than does normal, everyday 3 operation and maintenance of the physical plant. We 4 have to come up with these building blocks, one on 5 top of another. 6 In putting together the exhibits, the 7 compensation allowed or recommended in this case, 8 however you would like to characterize it, for labor 9 or for management has been set at a higher rate than 10 what we would use for the normal operation and 11 maintenance of the system. All of those labor 12 dollars added together create a labor dollar pool, 13 if you will. It's up to the owner to decide how to 14 distribute the moneys that he receives, whether he 15 spends it on management labor expenses or on 16 operation and maintenance of the physical plant. He 17 is not required to pay himself exactly what is 18 recommended and finally finds its way into his 19 rates. He can pay himself a higher salary, a lower 20 salary. He can use that money to contract out with 21 contract labor somewhere, hire a serviceperson to 22 come in. We're indifferent as to how those dollars 23 are spent, so long as they are spent in a prudent 24 matter on the water system. 25 Is that responsive? 55 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 Q. So, in essence, then there is some 2 flexibility contained within the rates that are 3 recommended here with regards to Mr. Cobott's 4 ability to have a higher salary than, say, $80 a 5 week? 6 A. Oh, certainly. In my testimony, I 7 believe I specifically said that this is not 8 intended to represent a budget with budget line 9 items that must be followed to the letter. 10 Q. Thank you, Mr. Smith. 11 COMMISSIONER KJELLANDER: Are there 12 further questions from members of the Commission? 13 COMMISSIONER HANSEN: I have one. 14 COMMISSIONER KJELLANDER: Commissioner 15 Hansen. 16 17 EXAMINATION 18 19 BY COMMISSIONER HANSEN: 20 Q. Mr. Smith, on your Exhibit 102, I 21 think you addressed a question on that, but I would 22 like to know when you make those comparisons, is 23 there similarities that are basic to all water 24 companies in these comparisons you make? 25 A. Oh, all of the water companies have 56 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 certain similarities. They have the same kind of 2 billing costs for their customers. They still have 3 to maintain customer ledger cards, accounts 4 receivable cards. They have to pay their electric 5 bills. They have to perform the same water tests as 6 all of the other systems have to perform. 7 The differences lie primarily in, say, 8 how deep their well is, maybe requiring more 9 electricity for pumping power; possibly whether or 10 not the system requires certain amount of treatment, 11 chlorination on some systems, other systems don't 12 require chlorination. That makes a little bit of a 13 difference. They're fairly minute nuances that 14 separate one company from another, but they can -- 15 they can vary from one company to another. 16 It's been my experience dealing with 17 these companies in the let's say 12, 14 customer 18 range up to 50 customers, that it really doesn't 19 make a lot of difference how many customers they 20 have in that range. Their costs are still fairly -- 21 fairly common. The incremental cost of maintaining 22 a system of 50 customers is not that much greater 23 than a system of 14 or 15 customers. 24 Q. I see. Thank you. That's all I have. 25 COMMISSIONER KJELLANDER: Commissioner 57 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 Smith. 2 3 EXAMINATION 4 5 BY COMMISSIONER SMITH: 6 Q. So just to be following up on your 7 last comment then, it's more costly to serve fewer 8 people? 9 A. That's generally true. 10 Q. On your Exhibit 102, how did you 11 choose these companies? I mean, I was trying to see 12 if -- they don't appear to have the same number of 13 customers, so I was curious, why did you choose out 14 of all the water companies, why did you choose 15 these? 16 A. I chose these companies because 17 they're in the Coeur d'Alene/Sandpoint area, 18 basically, and they are under the Commission's 19 regulation, which is the only -- the only companies 20 we have data on. 21 Q. So I guess was your thought that since 22 they're in the same geographic area they would have 23 the same maybe, you know, geography or impediments 24 in terms of service and in terms of geography, or 25 what was your thought there? 58 HEDRICK COURT REPORTING SMITH (Com) P.O. BOX 578, BOISE, ID Staff 1 A. No, I was thinking more in terms of 2 the cost of doing business, the economy of the area, 3 more than I was the geography. 4 Q. Okay. 5 A. The geography of, say, the McGuire 6 system at Post Falls versus Mr. Cobott's system are 7 entirely different. The system at Post Falls is on 8 old, flat farm ground. Mr. Cobott's is vertical 9 every direction you go. 10 Q. Thank you. 11 COMMISSIONER KJELLANDER: Thank you. 12 Being no further questions from the Commission, we 13 move now to redirect. 14 MS. NORDSTROM: Thank you. 15 16 REDIRECT EXAMINATION 17 18 BY MS. NORDSTROM: 19 Q. Mr. Smith, I know that we've discussed 20 the labor expenses pretty extensively. You mention 21 in your testimony I believe it was on pages 3 22 through 5 that the total labor expense that you had 23 come to for administrative maintenance and operation 24 costs was $8,960. Mr. Cobott's testimony indicated 25 that the 76 hours that he estimated were required to 59 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 manage and operate the system came to a total of 2 $1,520 a month. Your number is an annual number and 3 his is a monthly number. Why are these numbers so 4 far apart, in your estimation? 5 A. Well, that's why I put together the 6 rebuttal exhibit, to try and eliminate some of what 7 appears to be duplicate of hours. Several of the 8 functions that Mr. Cobott included in his 9 calculation appears to count the same function for 10 more than -- say, an hour's worth of labor has been 11 counted three times and it comes up with three hours 12 for doing simultaneous activities. 13 Q. Now, when you say that these tasks are 14 duplicative, are you saying that they're being 15 attributed to the same person more than once, or 16 both he and another worker are doing the same task? 17 A. I believe I found them both ways. 18 Q. Okay. 19 A. There appears to be, well, as an 20 example, I believe Mr. Cobott indicated he makes 21 eight trips a month to the water system to tour the 22 system, checking for leaks, check on the reservoirs, 23 et cetera. 24 Q. Okay. And that's number 16 on his 25 page 2? 60 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 A. I seem to have left Mr. Cobott's 2 testimony in my room. 3 Q. (Indicating.) 4 A. Yes, that's correct. 5 Q. Okay. And what was duplicative about 6 that? 7 A. There is also time on the detail from 8 Mr. Fairfax indicating that he cruises the system on 9 a weekly basis, I believe it is, looking for leaks, 10 checking the reservoirs. If Mr. Fairfax is cruising 11 the system every week checking for leaks, I see it 12 unreasonable to expect Mr. Cobott to be duplicating 13 that by making eight trips a month to do the same 14 function. 15 Q. Based on your review of Mr. Cobott's 16 testimony, was it your understanding that he was 17 doing all the tasks of Larry Fairfax since 18 Larry Fairfax had apparently quit, based upon the 19 knowledge that you had? 20 A. We received a letter from Mr. Cobott 21 indicating that Mr. Fairfax had quit. Now, I notice 22 that Mr. Fairfax is here today, so I don't know 23 whether that was a one-day thing. Maybe Mr. Fairfax 24 is working for the Company, I just do not know. 25 Q. So it's a duplicate expense only if 61 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 Mr. Fairfax is continuing to work for the Company? 2 A. And if left as Mr. Cobott submitted it 3 in his exhibits and testimony, yes. 4 Q. You have mentioned that there were 5 expenses that you believed were being attributed to 6 the same person more than once. Could you give an 7 example of that? 8 A. If you would refer to my Exhibit 9 No. 119 and the -- I apologize that I didn't do a 10 very good job of referencing the columns on this 11 exhibit, but about the second or -- one, two -- 12 about the third column over where it says Cobott 13 average hours per month, in that column you notice a 14 few zeros show up. On the far right, I have some 15 references A, B, C, and D that are explained down 16 below in the footnote that A, B, C, and D equal 17 duplicative, simultaneous activities. 18 If you look on line 1 of this exhibit 19 you notice that there's a "A" on the far right 20 corner, and on line 7 in the far right column 21 there's an "A." Those appear to be duplicate, 22 simultaneous-type functions. That's just one 23 example. 24 The same holds true for the items 25 indicated with a "B." Those, to me, would be 62 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 activities that would be accomplished simultaneously 2 rather than independent of one another. 3 Q. In your rebuttal testimony, you also 4 came up with a different total labor number than the 5 $8,960. I believe on the second page of your 6 testimony, you state that Staff Exhibit No. 119 7 produces a total labor expense of $10,060.63. Could 8 you explain the difference between these two 9 numbers? 10 A. They just come from two different 11 analyses. They are not too awful far apart. The 12 analysis on the rebuttal testimony that produces the 13 $10,060 is based upon the detailed labor by function 14 as shown on these exhibits at the rates -- the 15 hourly rates -- provided to me by the Department of 16 Labor yesterday to come up with a bottom-line 17 number. When I put together my initial testimony, I 18 did not have this kind of hourly detail on the 19 various functions. 20 Q. And on what did you base your list of 21 detailed functions? What additional information did 22 you receive that helped you come up with this second 23 analysis? 24 A. This is from the data prefiled by 25 Mr. Cobott and Mr. Fairfax. 63 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 Q. I'm sorry, I believe I interrupted 2 you. You said that this was part -- the difference 3 between these two numbers, the $8,900 number and the 4 $10,000 number, was due to? 5 A. They're simply just two different 6 types of analyses: One based upon, as I indicated a 7 moment ago, the detailed hourly functions as 8 provided by Mr. Cobott and Mr. Fairfax in their 9 exhibits and testimony to come up with this $10,060. 10 The initial analysis was based upon, as I indicated 11 in my original testimony, based upon interviews with 12 Mr. Cobott and what appeared to be reasonable rates 13 in basically two functions -- one function being 14 management and the other function being operation 15 and maintenance -- with no distinction as to what 16 each of the individual activities might have been 17 within those two broad categories. 18 Q. Is it your testimony that these two 19 numbers provide a reasonable range of total labor 20 expenses in this case? 21 A. I believe that these two separate 22 analyses together with the comparisons that I show 23 in my Exhibit 102 with other companies indicates 24 that they're in a reasonable range, yes. 25 Q. Are the labor expenses that are 64 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 allocated or that you are proposing be allocated to 2 Ponderosa Water, are they in a range of 3 reasonableness with other Northern Idaho small water 4 companies? 5 A. Yes. 6 Q. Would you state that they -- what you 7 are recommending in this case tends to be higher or 8 lower than what you would consider average for 9 Northern water -- small water companies? 10 A. They're at the top end. 11 Q. Okay. Directing your attention to the 12 issue of the mortgage expense, Mr. Cobott stated in 13 his testimony on the second page of his testimony 14 that he used 30,000 of the $77,000 loan for the new 15 well. Your testimony on page 10 states that the 16 well cost just over $25,000. Do you know what 17 accounts for the $5,000 difference between your 18 number and Mr. Cobott's number? 19 A. No. 20 Q. Have you discussed that with him at 21 all? 22 A. No. I just got his testimony here 23 yesterday and I haven't had a chance to speak 24 privately with Mr. Cobott since he arrived today. 25 Q. And on what are you basing your 65 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 $25,000 round number? 2 A. That's based upon the invoices 3 provided to me by Mr. Cobott last March. 4 Q. On the issue of water testing, on your 5 Exhibit No. 101, you have several different line 6 items for water testing. One of those, line 12 -- 7 or, line 11, rather -- is $1,500 for water tests 8 from two sources. Are those for the tests 9 themselves or the labor necessary to conduct those 10 tests? 11 A. Those are the lab costs to have the 12 tests performed at a State-licensed lab on two 13 separate water sources. 14 Q. Is Staff and Mr. Cobott in agreement 15 on that figure? 16 A. I believe we are. 17 Q. Okay. You also indicated on Exhibit 18 No. 101 that money has been allocated for the daily 19 testing of the water, the labor that is required to 20 do that. How much is allocated to test the water? 21 A. How much labor? 22 Q. Yes. 23 A. On this exhibit, I didn't make that 24 kind of a distinction. I don't believe I did. Hope 25 I haven't misspoken here. 66 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 Q. I'd like to direct your attention to 2 line 28. 3 A. I beg your pardon. I did split that 4 out. And the daily water testing, that includes 5 more than just taking a water test, however. That's 6 a daily visit to the wellhouse, taking the water 7 test. It's basically Mr. Fairfax's daily check on 8 the pumping system, make sure that the chlorination 9 is working, checking the chlorine level, taking the 10 water samples, the whole works. 11 Q. Okay. Your exhibit indicates under 12 Column C that Ponderosa estimates this expense to be 13 $3,600. You've only allocated 1,000 -- or, $1,800. 14 Why is that? 15 A. Because there's approximately another 16 $1,800 embedded in the electricity price on -- if I 17 can find it here. Where is pumping power -- in the 18 electricity price shown on line 6. 19 Q. So on line 28 when you say $10 per 20 day, less $5 for electric power, does that mean that 21 half of the $3,600 is being attributed to 22 Mr. Fairfax in electricity rather than wages? 23 A. That was a number that was provided to 24 us by Mr. Cobott, by Mr. Fairfax I believe, that 25 indicated that there was approximately $150 that was 67 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 considered to be compensation to Mr. Fairfax for his 2 labor that was the value of the electricity that he 3 received monthly through the Water Company's 4 electric meter at the pumps. 5 Q. The $150 number, is that a monthly 6 number or an annual number? 7 A. Monthly, I believe. Yes, that's 8 right, monthly. 9 Q. On the issue of property taxes, you 10 indicated in your testimony that $286.86 was an 11 appropriate cost. How did you calculate that 12 number? 13 A. That number is based upon the 14 valuation of approximately $26,000 for the new well, 15 multiplied by the Bonner County assessment rate of I 16 believe it's -- I've got it in here somewhere -- 17 point 14447 -- goes out for about eight digits. 18 That was given to me by the Bonner County 19 Treasurer's office -- or, Assessor's office, excuse 20 me. 21 Q. So do you agree with Mr. Cobott in his 22 testimony when he says that property taxes cost 23 about $2,300? 24 A. That would be close. 25 Q. Okay. And in coming up with an annual 68 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 revenue requirement, did you allocate any money to 2 pay Ponderosa for rent of the land on which the 3 water system sits? 4 A. No. 5 Q. Why did you feel that that was not 6 appropriate? 7 A. The purchase and sale agreement for 8 the purchase of the land or purchase of the water 9 system is attached as Exhibit No. I believe it's 10 104. The language in that contract indicates that 11 the land upon which the well is situated were part 12 and parcel of the water system. They were included 13 with it and transferred as a part of that purchase. 14 Therefore, the land, it would appear to me, belongs 15 to the Water Company. 16 Q. Okay. Mr. Cobott has indicated that 17 he -- that the -- he personally should be 18 compensated $100 a month for use of his excavator. 19 Did you include that in your revenue requirement? 20 A. That is included, yes. 21 Q. And did you determine that that was an 22 appropriate figure to attribute to that expense? 23 A. I relied on my fellow Staff member 24 Michael Fuss for the reasonableness of that rate. 25 He's more familiar with heavy equipment than am I, 69 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 and as an engineer, he has rented numerous pieces of 2 equipment. He thought that was a reasonable rate, 3 so I accepted it. 4 Q. So that issue is not in dispute? 5 A. No. 6 Q. Returning your attention to Exhibit 7 No. 101, line 10, you recommend that $2,600 be 8 allocated for system repair. Do you believe that to 9 be an accurate number? 10 A. That was a number that was provided by 11 Mr. Cobott a number of months ago. It didn't appear 12 to be terribly unreasonable and we had no reason to 13 challenge it so we did not, and it is included. 14 Q. Based upon the testimony filed by 15 Mr. Cobott and Mr. Fairfax, do you have cause to 16 question that particular figure? 17 A. If the Commission were to accept the 18 recommendations of Mr. Cobott and Mr. Fairfax for 19 the costs they have enumerated, I believe that would 20 duplicate many of the dollars that were included in 21 this estimate to begin with, so I think it would 22 probably have to be adjusted downward if those labor 23 costs as prefiled by Mr. Cobott and Fairfax are 24 accepted. 25 Q. So are you saying that some of the 70 HEDRICK COURT REPORTING SMITH (Di) P.O. BOX 578, BOISE, ID Staff 1 labor expenses that are being requested by 2 Mr. Cobott and Mr. Fairfax are accounted for in this 3 system repair expense? 4 A. That's correct. 5 Q. Thank you. I have no further 6 questions at this time. 7 COMMISSIONER KJELLANDER: Thank you, 8 Mr. Smith. And I think at this point then we'll 9 excuse you and allow the next witness to be called. 10 (The witness left the stand.) 11 MS. NORDSTROM: As its next witness, 12 the Staff would call Michael Fuss. 13 14 MICHAEL FUSS, 15 produced as a witness at the instance of the Staff, 16 being first duly sworn, was examined and testified 17 as follows: 18 19 DIRECT EXAMINATION 20 21 BY MS. NORDSTROM: 22 Q. Good afternoon. Please state your 23 name and spell your last for the record. 24 A. Michael Fuss, F-U-S-S. 25 Q. By whom are you employed and in what 71 HEDRICK COURT REPORTING FUSS (Di) P.O. BOX 578, BOISE, ID Staff 1 capacity? 2 A. By the Idaho Public Utilities 3 Commission, and I'm a Staff engineer. 4 Q. Are you the same Michael Fuss that 5 filed direct testimony on June 7th, and prepared 6 Exhibit Nos. 107 through 116? 7 A. Yes. 8 Q. Do you have any changes or corrections 9 to your testimony or exhibits? 10 A. None that I'm aware of. 11 Q. If I were to ask you the questions set 12 out in your prefiled testimony today, would your 13 answers be the same? 14 A. I believe so, yes. 15 MS. NORDSTROM: I'd move that the 16 prefiled direct testimony of Michael Fuss be spread 17 upon the record as if read, and that the 18 aforementioned exhibits be marked for 19 identification. 20 COMMISSIONER KJELLANDER: Without 21 objection, we'll spread the testimony as if read, 22 and introduce Exhibits 107 through 116. 23 (The following prefiled direct 24 testimony of Mr. Fuss is spread upon the record.) 25 72 HEDRICK COURT REPORTING FUSS (Di) P.O. BOX 578, BOISE, ID Staff