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HomeMy WebLinkAbout20130913Transcript Volume I.pdfORIGINAL BEFORE THE IDAHO PUBL]C UTILITIES COMMISSION CASE NO. SPL-W-13-01 BEFORE COMMISSIONER PAUL KJELLANDER (Presiding'Y COMM]SSIONER MACK REDFORD 'COMMISSIONER MARSHA SMITH : Spirit Lake City Hal-l- 6042 West Mai-n StreetSpirit Lake, fdaho September 4, 2073 VOLUMEI-Pagesl-48 IN THE MATTER OF THE APPLICATION OF SPIRIT LAKE BAST WATER COMPANY EOR AUTHORTTY TO INCREASE ITS RATES AND CHARGES FOR WATER SERVTCE PLACE: DATE: r{, .t) IT'] f\) CSB REPORTING Constance S. Bucy, CSR No. 187 23876 Applewood Way * Wilder, Idaho 83676 (208) 890-51e8 Email csb@heritagewifi. com JAi4 i *l ;-: APPEARANCES For the Staff:NeiJ. Price, Esq. Deputy Attorney General- 412 West Washington StreetBoise, Idaho 83120-A07 4 6 1 8 9 10 11 t2 13 L4 15 76 71 18 1-9 20 27 22 23 24 25 CSB REPORTING (208 ) 890-5198 APPEARANCES 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 L6 L't 1B 79 )o 27 22 23 .Az- .t 25 CSB REPORTING (208 ) 890-s198 INDEX WITNESS EXAM]NAT]ON BY PAGE Jacob Leisle ( Public ) John Haus (Publ-ic) Jess Blocker ( Publ1c) Ralph Shrigley ( Public) Ron Anell-o ( Public) Robert Costigan ( Public ) Jana Anell-o ( Public ) Statement Commissioner SmithMr. Price Statement 4 1 B 10 13 15 1B 26 2B 34 47 Statement Commissioner Statement Commissioner Statement Statement Statement Kj ellander Kj ellander INDEX 1 2 3 5 6 1 8 9 10 11 t2 13 14 15 L6 71 18 t9 20 27 22 23 24 25 CSB REPORT]NG(208) 890-s198 SPIRIT LAKE IDAHO WEDNESDAY SEPTEMBER 4 2073 7:00 P. M COMMfSSIONER KJELLANDER: Good evening, ladies and gentlemen. This is the time and place for a public hearing in Case No. SPL-W-13-01, also known as in the matter of the application of Spirit Lake East Water Company for authority to increase its rates and charges for water service. The sol-e purpose of the hearlng this evening is to take testimony from customers of Spirit Lake East Water Company. My name is Paul- KjelJ-ander. I'l-l- be the Chairman of this evening's proceedings. To my right is Commissioner Marsha Smith and to my left is Commj-ssioner Mack Redford, and that happens to be a horn. If you would please turn off your telephones and other el-ectronic devices, that would be appreciated. As we move forward thls evening, the process will- work as foll-ows: We will have the Deputy Attorney Generaf cal-l you up or we' l-l- actually cal-l- your name f rom the list. We'11- have you sit in this makeshift witness stand. The Deputy Attorney General will just ask you a couple of questions to get you officially on the record, and we also have a court reporter here who will be taking down the transcript. COLLOQUY 1 2 3 4 5 6 1 I 9 10 11 L2 13 L4 15 16 77 18 79 20 21, )) 23 24 25 CSB REPORTING (208 ) B9o-s198 The reason we have a court reporter is that all- of our decisi-ons are directly appealable to the State Supreme Court, so we have to have an official- transcrJ-pt in the record in the event that these proceedings need to go further. Itfs also an opportunity for us as Commissioners when we get back to begin deliberating on this case to look over your public testimony and to actually have a true transcription to assist us in our deliberative process, so with that said, why don't we begin with the appearances of the parties. Is there anyone here this evening representing Spirit Lake East Water Company? No, okay. How about for the Staff for the Idaho Pub1ic Util-ities Commissi-on, I believe we have a Deputy Attorney General. General. MR. PRICE: Neil Price, Deputy Attorney I represent the Commission Staff. COMMISSIONER KJELLANDER: Thank you, Mr. Price. Mr. Prj-ce, are there any issues that you might want to bring us aware of as far as any late fi-Iings that may be relevant to the case? MR. PRICE: Yes, I would like to cal-l- to the Commission's attention that the Company Spirit Lake East Water Company has recently fil-ed a reply to Staff's comments in the case and that reply was filed with the COLLOQUY B 9 10 1 2 3 4 5 6 1 11 t2 13 L4 15 16 71 1B 19 20 27 22 23 24 25 CSB REPORTING (208 ) 890-s198 Commission yesterday, September 3rd. The Company has agreed or accepted the comments from Commission Staff as to the major issues involved in the case, including rate design, monthly bi11ing, collection, rate base, rate of return, and overalf revenue requirement. COMMISSIONER KJELLANDER: Okay, thank you, Mr. Price, and, again, ds many of you may recall, there was a workshop held, I believe, in June and that was an opportunity for I hope many of you to get a l-ot of your questions at least put out and some of them perhaps answered. Tonight, again, though, the purpose is to merely take your testimony to get it officially on the record. If there are questlons that you might have of Staff, please feel- free at any break this evening to ask those questions. Also, for those of you who are here tonight but don't wish to actually testify during the public hearing, we're golng to l-eave the comment, written comment, period open until Eriday the 6th, so if you go to the website, you can find a way to put comments in on this specific case if there's something you would like to add or if, again, you feel that you'd rather put it in writing as opposed to present your public testimony this evening. I bel-ieve also that Gene Fadness may COLLOQUY 1 2 3 5 6 1 I 9 10 11 72 13 t4 15 1,6 t1 18 L9 20 2t 22 23 24 25 CSB REPORTING (208 ) 8e0-s198 actually have some comment sheets at the table to my left if you'd like to write those comments and l-eave them with him. We'11 bring those back and get those officially into the record as wel-lr so, again, ds we begin this evenj-ng, what If 11 do is I'II caII your name. We'll- have you take this seat. I'11- have Commissioner Redford swear you i-n and then we'11 have the Deputy Attorney General ask you a couple of questi-ons for the record and then we'lI be ready to take your testimony, so with that, our first individual tonight is Jacob Leisle. MR. LEISLE: Leisl-e. It's German. Much Iike l,our name, it's spelled a lltt]e bit funny. JACOB LEISLE, appearing as a public witness, having been duly sworn, was examined and testif ied as f ol-lows: EXAMINATION BY MR. PR]CE: O Thank you, si-r, wou1d you please state your name and spell your last for the record? A Jacob J. Leisle, and it's spelled L-e-i-s-I-e. O And are you a Spirit Lake East customer? LEISLE Publ-ic 1 2 3 4 5 6 7 B 9 10 11 72 13 74 15 t6 I1 1B 79 20 2t 22 23 24 25 CSB REPORTING(208) 890-s198 A Sure am. O And what is your address? A 35596 North Saint Joe Drive. O Thank you, sir. You may proceed. A The reason I came here, I went onl-ine wel-l-, good evening, ladies and gentl-emen. f went on1ine and somebody told me we were having a meeting about water rates going up and when T l-ooked at this, it looks like they're trying to double the rates, and I understand that there is additional costs with Spirit Lake Water Company which they need to raise their rates. I understand that. I thought that was a little hlqh jump and I think we need to rea11y l-ook at that, but the thing that really caught my attention is I spent 39 years, tL months, and three days in the Air Eorce, retired, I'm on a fixed income and I knew that I had 9,000 gallons of water was my all-otment. I put in a l-awn and a vegetable garden to meet rny needs and the amount of water that f woul-d l-ove to have. When I got this l-etter saying now theyrre going to try to change it to 6,000 gallons so they can l-et's see, so they can entice us to conserve. We1I, does that mean I have to reduce my vegetabl-e garden and reduce the grass that I had planted? I think it's Un-American to move the goalpost and that's what you did. I hear LEISLE Public 1 2 3 4 5 6 "t o 9 10 11 72 13 t4 15 76 71 18 19 20 2t 22 23 24 25 CSB REPORT]NG (208 ) 890-5198 you're trying to move the goalpost. Okay, thls is what you're all-otted. Now that you're using that amount, we're going to move the goalpost and then we're golng to charge you for it. I disagree with that. I totally don't think that we shoul-d be moving the goalpost from 9,000 ga1lons. Now, if you have to raise the cost of doing business because of the amount of water, the cost of pumping that water, and if you're doing business, I understand that, but I can't understand doubling it. I can understand incremental- rates as costs go up, but to double it, does this mean next year we're going to double it again and the foll-owing year double it again? Thi-s Commission here, I assume, is going to make a decision on what it reaI1y costs and whatrs a reasonable amount of money for somebody to earn and to make a profit which is the American wdy, but not to gouge and to me, this l-ooks like a gouge and f'm not happy with it. COMMISSTONER KJELLANDER: Thank you. Let's see if there are any questions. Are there questions from members of the Commission? COMMISSIONER SMITH: Just one. THE WITNESS: Sure. LEISLE Public 1 2 3 4 5 6 1 I 9 10 11 L2 13 L4 15 t6 71 1B L9 20 2t 22 23 24 25 CSB REPORTING (208 ) 890-5198 LEISLE (Com) Publ-ic EXAMINAT]ON BY COMMISSIONER SMITH: O How long have you been a customer of this water company? A We built our house in 2006. O Okay, and do you remember the last time you had a rate increase for your water? A You' l-l- have to speak up a l-ittle. O Do you recall the last time you had an increase in your water rates? A WeI1, I remember the last ti-me we had a meeting and they were trying to doub1e it before or increase it substantially and we had a l-ot of problems with the water system. It was leaking everywhere and we didn't have water pressure. It was undependable. In fact, w€ actually l-ost water a few days ago for better than a day, but it was a lot more and they came in and repaired it and everything. They raised the rates, not doubled the rates, they raised the rates, and we were happy with the water as far as I'm concerned being rel-iabl-e and c1ean, because we were having some problems with it, and I understand the cost of business is going up. A11 prices are going up, but to ask for a doubl-e price, you know, double the price just seems like a 1 2 3 4 5 6 't I 9 10 11 L2 13 L4 l_5 t6 71 18 19 20 2\ 22 23 24 ,tr CSB REPORTING (208 ) 890-s198 LEISLE (X) PubIic Iittle outrageous to me. As an ol-d retired Colonel, I think something is suspicious. COMMISSIONER KJELLANDER: Staff? MR. PRICE: Just one question, Mr. Leisl-e? THE WITNESS: Leisle, yes, "i" before I'e, except in German. CROSS_EXAMINATION BY MR. PRICE: a Do you have an idea of whether or not you typlcally wouJ-d exceed 9,000 gaJ-Ions per month? A WeIl, that's the whole thing. f'm an Army of one out there, and I just put myself a lawn in. I just finished planting it. I just put in the garden and calcul-ating the amount of water I would need. I've overused a l-ittl-e bit, because when you first plant grass, you have to water it pretty good, but I also did things to conserve water. I built some catch basins where the water comes off my metal roof so the water goes back into the aquifer. You know, f'm a good you know, I'm trying to make sure the water goes back in. We're sitting on an aquifer. Any water that goes on your garden that goes through the dirt or anything that's going in your septic tank when it gets purified goes back 1 2 3 4 5 6 1 9 10 11 72 13 1,4 15 76 t'7 1B 19 20 21, 22 Z3 .AL.) 25 CSB REPORTING (208 ) 890-5198 LETSLE (X) Public into the aquifer, so I know a lot of people say we1I, we've got to conserve because of the aquifer, we're sitting on the aquifer. That's where the water goes, so I don't understand that. Maybe I'm not an engineer, but it doesnrt make sense when we're, you know, actually stewards of this Iand and I'm trying to make sure that the water goes back into the aquifer that we don't use. That's why I built the catch basins and the water comes off my roof, comes off the pipe, goes into the catch basins, and goes back into the aquifer. Now, f can get a l-ot more water that comes off my roof when it rains than I ever use on my grass. So you have taken steps in the past to conserve water? A Oh, yes. O And you'd agree that that's a good idea? A It's a good idea, y€s, to conserve, you know, but to say now all of a sudden we want you to conseive the amount of water you're using now, we want you to use l-ess, but you've already built your usage at 9,000 gal1ons, now you're going to have to back up and take out some of that l-awn. Maybe you shoul-dn't plant as big a garden or you're going to be charged more. f'm on a fixed income. I'm a retired old Colonel and they're not going to keep givlng me money every time they doubfe o 1 2 3 4 5 6 1 8 9 10 11 l2 13 L4 15 t6 t'7 18 79 20 27 22 23 24 25 CSB RIIPORTING (208 ) 890-5198 HAUS Publ-ic the water. I get some slight increases, but I'm not going to get a double increase every time I get an increase. The price of fuel in the last, letrs see, five years has doub1ed. MR. PRICE: Thank you, sir. COMMISSIONER KJELLANDER: Thank you, Mr. Leisle. THE WITNESS: Thank you for hearing me. (The wltness l-eft the stand. ) COMMISSIONER KJELLANDER: We'd like to cal-l John Haus. JOHN HAUS, appearing as a public witness, havi-ng been first duly sworn, testified as follows: EXAMINATION BY MR. PRICE: O Sir, could you please state your name and speJ-I your last for the court reporter? A John Haus, H-a-u-s. O And what is your address? A 34438 North Newman Drive, Spirit Lake. O And are you a Spirit Lake East Water 10 1 2 3 4 5 6 1 8 9 10 11 72 13 t4 15 1,6 L7 18 t9 20 2t 23 24 25 CSB REPORTING(208) 890-5198 HAUS Publ-ic Company customer? A Yes. O Thank you. You may go ahead. A The thing I'm looking at on this is the rates now are fine. I've got no problem with them. When you come out there and they say okay, now we want to go up 106 percent and then on top of that you want to knock down the amounts that we have al-l-otted to us before it goes into a penalty by 33 percent, a lot of us, like the previous speaker said, allotted for that amount in your lawn and how you do your landscaping and this sort of thing and now you've got to say oh, guess what, now it's going to cost you a lot more. We are in a depression. f don't know what the news says or the administration says. We are in a depression. Food is going sky high. Gas is going sky high. Who knows, especJ-a11y with what's going on in the Middle East now, where itrs going to go pricewise. The last thing we need is to have another increase 1n a utility. I mean, water is a basic thlng that you need for life and you're going to increase it, and at what point do people say you know what, I guess I canft water my lawn. I canft do the garden. I can't maybe fiII a small pool for the kids to play in. Water is as basic as 1t gets and you're going to cut it down to this much? 1,1, 1 2 3 4 5 6 7 B 9 10 11 72 13 14 15 76 71 1B 79 20 2L 22 23 24 25 CSB REPORTING(208) 890-s198 HAUS Publ-ic If thatrs the case, then l-et's l-ook at it a different way. In December, January, February f'm not using too much water. I'm sure I use below the 6,000. I want to get paid for not using. Say if I use 4,000, I want to get paid for that 2,000 I don't use. That's only fair. That's using t.he same logic as the Water Company wants to use to raise the rates. Thatrs really conserving. Who cares what time of the year it is, conserve period. Like was brought up by the previous speaker, this water goes right back to the aquifer, unlike in California where you get it from the Colorado Rj-ver and it comes into Southern Cal- and it stays in Southern Cal for the most part. This goes right back into the aquifer. I just think it's really poor timing to increase the rates now. f mean, there's some people that have lost their jobs. Especially now with this ObamaCare, a l-ot of people have gone down to part time. They're not 40 hours anymore. They're 28 hours. f t's going to cost more f or the j-r medj-cal-. I mean, theyrre not making money now because theyrre in a 28-hour-a-week situation by no choice of their own and now you say oh, guess what, your water rates are going to go up. You've got to have water. You can't l-et your grass go dead. That's a fire hazard, too, just poor t2 1 2 3 4 5 6 1 B 9 r0 11 72 13 t4 15 t6 L1 1B 79 20 2L 2) 23 OALA 25 CSB REPORTING(208) 890-5198 BLOCKER PubIic timing. We don't deserve this type of treatment. COMMISSIONER KJELLANDER: Thank you. Let me see if there are any questions. Questions from the Commission? COMMISSIONER SMITH: No. COMMISSIONER KJELLANDER: ETom the Staff? MR. PRICE: No. COMMISSIONER KJELLANDER: Mr. Haus, thank you. MR. PRICE: Thank you, sir. (The witness left the stand. ) COMMISSIONER KJELLANDER: Let's cal-l- now Jess Blocker. JESS BLOCKER, appearing as a public witness, havi-ng been first duly sworn, testified as follows: EXAMINATION BY MR. PRICE: O Good evenj-ng, sir. Could you please state your name and spe1I your l-ast for the court reporter? A Yes, Jess Bl-ocker, B-1-o-c-k-e-r. O What is your address? 13 1 Z 3 4 5 6 1 B 9 10 11 12 13 t4 15 L6 L1 t-o 19 20 2t 22 23 24 )tr, CSB REPORTING (208 ) 890-s198 BLOCKER Publ-ic A I -r1 A 36025 North Saint Joe Drive. And are you a Spirit Lake East customer? re-5- Thank you, sir. You may proceed. Yes, first, I have no quarrel with the original request from Spirit Lake East Water Company the way 1t was designed. They doubled the rates. We need a rate raise seriously out here, because the system is old and it is in disrepair, but in the request and talking to the Water Company fol-ks and the Staff, we didn't address anything as far as upgrades. It was just maintenance of the system and trying to get the Company to make money. I thought basically what we did with the Staff proposal was triple our rates, basically. I think that's about where it feII out and still-, that seems excessive, even though as bad as we need some upgrades like fire hydrants. If we had fire hydrants, one, our fire insurance would gone down, rates would qo down, but so fa:: we haven't I havenrt seen any sign, any indicatj-on of what other than contj-nue to operate that j-s coming out of this rate increase proposal or request, and one point, too, that as far as the allocation, most people at least I knowr we, just the two of usr we do not use 9,000 gallons a month, except in the summertime, but in our covenants, one thing that's pointed out is that t4 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 76 L1 18 79 20 2L 22 23 24 25 CSB REPORT]NG (208 ) B9o-s198 15 BLOCKER (Com) Public authorization for agricuJ-ture j-s in our covenants and agriculture takes water, whether it be a lawn or horses or whatever, but that is specified in our covenants, and I've heard several times since this request process started that this system was never designed to support l-awns and garden, agricultural- pursuits. Like I say, I thlnk we need an increase, but I think we need something concrete and what's going to happen down the road and I don't know whether thatrs under your control or not. COMMISSIONER KJELLANDER: Wel-1, thank you. Let's see if there are any questions. EXAMINATION BY COMMISSIONER KJELLANDER: O I just have one, and whatfs the size of your l-ot? A Eifteen acres. 0 Fifteen acres, and is all that under irrigation? A Oh, absolutely not. O okay. A 20,000 square feet, half acre. COMMISSfONER KJELLANDER: Thank you. Are there any questions? 1 2 3 4 5 6 7 o 9 10 l1 72 13 L4 15 t6 71 18 t9 20 2L 22 23 24 25 CSB REPORTING(208) 890-s198 much for your COMM]SSIONER COMMISS]ONER COMMISSIONER testimony. COMMISSIONER (The witness COMMISSIONER SMITH: No. REDFORD: No. KJELLANDER: Thank you very REDEORD: Thank you, sir. left the stand. ) KJELLANDER: Let's cal-l- now Steve Plunkett. MR. PLUNKETT: I don't have any comments at thr-s time. Is this strictly a comment session or can we ask questions? COMMISSIONER KJELLANDER: When we take a break, if you'd like, we'IJ- have Staff counsel and we've al-so got a Staf f member in the back, tf you l-ook back there, he'II raise his hand, it's Chris Hecht, it seems l-ike we have a l-ot of German fol-ks tonight which is all good, but yeah, you can ask him any questions that you want and if he can't get you the answer, f'm sure that he'll try to get you something between now and before the case is decided. MR. PLUNKETT: Just to clarify very quickly, we were told about this at the l-ast moment, So when we arrived today, my understanding was this was an association meeting, but f'm assuming now that I'm wrong about that. This has nothing do with the assocj-ation? t6 COLLOQUY 1 2 3 4 trJ 6 1 B 9 10 11 72 13 T4 15 76 t1 18 19 20 2L 22 Z3 24 25 CSB REPORT]NG (208 ) B9o-s198 COMMISSIONER KJELLANDER: No, thls is the Tdaho Publ-ic Utll-ities Commi-ssion. MR. PLUNKETT: So the rate increase is coming from your entity, not the associ-ation? COMM]SSIONER KJELLANDER: The Tate increase is being requested by the Company and then they bring that to us because we're the regulators and we have to be the arbitrator of facts, and so what we do is we take testimony, we have Staff comment, and from that, then, we review all the facts that are in the record and come to a concl-usion as far as what type, if dfly, rate increase there might be associ-ated with the initial request. If you need more information on that, Gene Fadness is al-so around, our public information officer, and I know he'd be very happy to get you some additional- backglound. MR. PLUNKETT: Thank you. COMMISSIONER KJELLANDER: Ralph Shrigley. l1 COLLOQUY 1 2 3 4 5 6 '7 8 9 10 11 1) 13 !4 15 t6 7'7 18 19 20 27 22 23 24 25 CSB REPORT]NG(208) 890-s198 18 SHRIGLEY Pubfic RALPH SHRIGLEY, appearing as a public witness, having been first duly sworn, testified as follows: EXAMINATION BY MR. PRICE: O Good evening, sj-r. Could you state your name and spell your last for the record? A Ralph Shrigley, S-h-r-i-g-I-e-y. O And what is your address? A 32134 North Hayden Drive, Spj-rit Lake. O And are you a Spirit Lake East customer? A Yes, sir. O A11 right, you may proceed. A Welcome. Thanks for coming all the way up here to the ends of the earth, folks. We appreciate you being here. Our Water Company has been in service something over 40 years, installed in the late '70s, and the first owner and I bel-ieve that. ownership went through about 2000, the year 2007, if f'm not mistaken, and I'l-f preface this. f made quite a study of the financj-aI statements in previous years of the Water Company's operations. As near as I could determine, the previous owner used the Water Company as a tax write-off 1 2 3 4 5 6 1 o 9 10 t-1 72 13 L4 15 t6 71 18 79 20 2t 22 23 24 25 CSB REPORTING (208 ) 890-s198 SHRIGLEY Publ-ic to be used, the depreciation in the Water Company to be used, in consolidation with other businesses he was in to offset profits of his main business which was property development. ffve lived here since about '95, but we saw long periods of time on the part of that owner of unresponsi-veness to the customers, extremely poor maintenance, ignored DEQ, that's Department of Envj-ronmental- Quality, inspections and recommendations on some issues for more than 10 years of some of the same items based on my review of the DEQ records. Jump forward, here we are 40 plus years later, and I might also add that in my review of the early documents, hydrological studies, specifications of the equipment that was used in the original construction of the Company indicated that the expected }ife of many of the components, specifically the water lines, was expected to be 40 years at the time that it was put in the ground. We're beyond 40 years now. Our previous owner showed a propensity for hiring attorneys and fighting the issues with debating the issues with the PUC and the DEQ rather than taking the same money and putting it toward the complaints that we residents had raised and DEQ had raised time after time, and as you're no doubt aware of the history, the 19 1 2 3 4 5 6 1 B 9 10 11 !2 13 74 15 t6 11 1B 19 20 27 22 23 24 25 CSB REPORTING (208 ) 890-s198 SHRIGLEY Public l-ast rate increase which was requested to be about a 100 percent rate from 72 to about 24, as I recalf, was knocked down to a 50 percent increase, simply because of the poor service. The rullng the PUC made was simply because of the poor service and they also prohibited him putting in an unapproved status where he coul-dn't transfer ownership of the Company until- he took certain remedial- action. He did that wj-th about $225,000 worth of investment from my qulck glance at the financials. Later he transferred it to the current owner. Now, during that period of time f served as the treasurer of an ad hoc group of residents here who estabiished a nonprofit corporation wlth a view toward taking over and operating the Water Company. We had a meeting with management in which they declared their willingness to do so because they fully admitted they had no i-nterest in the Water Company. It had nothlng to doing with their main purpose. We got to the polnt 1n the negotiations and in the process where we were negotiating over the wording of a non-disclosure statement that we would sign before belng given access to the financial statements. Wh1le f am an old Colonel like my predecessor here, I al-so worked in banking. My wife's a CPA, so we were the designated people to take a look at IU 1 2 3 4 trJ 6 1 B 9 10 11 72 13 74 15 16 7'7 18 19 20 2L 22 Z3 24 25 CSB REPORTING (208 ) 890-s198 SHRIGLEY Publ-ic that. Before we got to that point, the PUC rul-ed against the entire rate j-ncrease and we went into a period of where he was basically forced to remediate many of the shortfal-l-s of the Water Company. During that time the actual- operator of the Water Company, not the ownershi-p, but the operator is the same operator we have now, Waterworks Company, and the ad hoc company or corporation we put together, we thought Waterworks did a great job. We intended to hire them to continue the operation of the water system because that's reaI1y their business. It's not a hobby as it seemed to be to the previous owners. Part of our calculations, and I'fI throw this out to give a sense of comparison, we presumed that if we took control of the Company, j-t became a user-owned company, nonprofj-t company, because of the size of the Company that we probably would no longer have been under the supervision of the PUC. We woul-d have petitioned to be dropped from PUC oversight, so we did a lot of financial calculating to decide what kind of money we woul-d need to put that Water Company on a sound financial basis. We had no money, we had no reserves, flo investors or anythinq. We assumed -- we narrowed it down to the poj-nt, and this is in 2007, I believe flo, 2009 or '10 about the time the Water Company changed hands, we 27 1 2 3 4 trJ 6 1 U Y 10 11 L2 13 74 15 l6 t1 18 19 20 27 22 23 .ALA 25 CSB REPORT]NG (208 ) 890-s198 SHR]GLEY Public assumed that we would have to charge $35-40 per user per month, and also, even at that timer we determined that $12.50 was a ridicul-ous1y low water rate based on the compa::ison that we did of neighboring communities here in Kootenai County and north of us as well, but we would already be paylng 35 or $40.00 per month, perhaps more at this tlme based on the condltion of the Water Company, the breakdowns, this sort of thing. Now, Ird like to from my view, I actually ended up learning more about water companies than I ever really wanted to. As far as f'm concerned, it's something that comes out of a faucet, thank God. If we didn't have water, our homes in Spirit Lake East, of course, are almost worthless, and I think we need to look for the future. In my vj-ew having studled this particular Company in some depth, I think Lesl-ie Abrams, the owner, is doing a great job, as is Waterworks, the operator, and I give as an example the recent outage that we had, and I spoke with her to l-earn the chronology and I think she said it was late afternoon, whatever the date was, 4:00 o'cl-ock or so p.m. when she got an al-arm saying the water reservoir was low. She immediately went out, checked everything, cal-l-ed an el-ectrician in who diagnosed the problem as the pump in the bottom of the well having 22 1 2 3 trJ 6 7 B 9 10 11 L2 13 74 15 t6 l1 18 79 20 27 )) 23 24 25 CSB REPORTING (208 ) 890-s198 23 SHRIGLEY Publ-ic burned out. She immediately got on the phone and by no l-ater than 7:00 p.m. that same dry, she had a crane and a work crew on site and they were pulling the casing up, and you're probably well familiar with this, but the pump is 600 or so feet down underground and all of the casing which is a steel pipe about yay big around has to be puIIed out one section at a time, dlsassembl-ed in order to get to the pump and replace it. I went to see her the next day around 10:00 a.m. They worked al-} night and they were putting the casing having replaced the pump and the pump motor, they were putting the casing back together and were withj-n probably 200 feet of having the problem or al-I the equipment back in and they were pumping water again within l-ess than 24 hours of the original alarm. This is something that was inconceivable under the previous owner's management. fn fact, we had a two-week water outage at one point, so I don't know how it would have been possible to do this any quicker. With the exceptj-on looking to the future, the best way to prevent these kinds of outages is since we for electrical- outages, there's already a reliabl-e emergency generator on site, but we realIy need a second wel-l- which permits if we have a 1ow level in the reservoir, the operator can simply go in, activate the 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 76 77 18 79 20 2t 22 23 24 25 pump in the second wel-I, refill the reservoir while the primary pump is being replaced or repaired. We have a spare pump on hand which she tol-d me the one that was there was on the books at costing $15r 000 and she told me by the next morning she'd been onl-ine looking for a new pump and it was golng to run about $25r 000, new pump motor, excuse me. They don't give them away. If we had the second weII, a switch coul-d have been thrown and we coul-d have had water without an interruption and she could have possibly chosen a less expensive means of getting instead of paying overtime at night of getting that pump pulled out and repaired. I think that for this Water Company, first of all, they certainly have the talent necessary to operate the Company. We need them to be in a strong financial positlon and not limp aIong, which based on the financials, the one set of financials, that they've submitted, that certainl-y is the case with an operating Ioss. We need a second wel-l-. As someone e1se, as Jess Bl-ocker indicated, we'd like to look into fire hydrants. We know because of the pipes that are installed in this system that fire hydrants were never part of the initial design; however, there are some mains that run through the system that are in fact eight inches CSB REPORTING(208) 890-s198 SHRIGLEY Publ-ic 24 1 2 3 4 5 6 1 I 9 10 11 72 13 t4 15 L6 L1 18 19 20 2t 22 23 24 25 CSB REPORTING(208) 890-s198 in diameter and Irm given to understand you can accommodate a fire hydrantr so our fire department out here in the boondocks is very well equipped and well trained, but when they respond to a fire in Spirit Lake East, they have to do so with water tenders. When they pump all of the water out of the tender, they have to then drive that miles, in some case several mil-es, to the hiqh school which could be three mil-es or more from some points j-n Spirit Lake East to the first place where they can filt it up quickly, where the water pipe diameter is large enough, and I would hope as a minimum we could get two, three or four hydrants dispersed throughout the Treeport and Spirit Lake East area in order to speed up the turn-around of those tankers, So I certainly think we should not quibble about somethj-ng as precious and as inexpensi-ve as $12.50 a month water. If we look at our neighbors, they're paying a lot more than 25 bucks right now per month for the water, and another advantage of the monthly billing that they're proposi-ng we go to is we do have people who sometimes travel or sometj-mes their homes in Spirit Lake East are seasonal homes and they come back after being absent for months and find out that they owe hundreds of doll-ars because we haven't been the meters get read SHRIGLEY Publ-ic 25 1 2 3 4 5 6 1 9 10 11 t2 13 74 15 t6 lt 18 19 20 27 22 23 24 25 CSB REPORTING (208 ) 890-s198 SHRIGLEY (Com) Publ-ic since we get billed quarterly now rea11y about twice a year, because even though it's quarterly, nobody wants to dig under six feet of snow to find the water to dig that out. If it were monthly, the likelihood of having these unforeseen water breaks or undi-scovered water breaks woul-d be far l-ess 1ike1y because we'd have much more frequent meter reading, and it's probably no secret that I strongly support the increase 1n the water rates as requested and I hope that the management of the Company continues to l-ook forward at improving the capabilities of the Company. Thank you. EXAMINAT]ON BY COMMISSIONER KJELLANDER: O I just have one question. Earlier we heard about the potential- positive impact on j-nsurance rates if there were hydrants i-nsta1Ied, and not looking for a long answer, but I'm curious if you've l-ooked at that at all if two, three, or four hydrants in the area would have any impact on insurance rates in the neighborhood. A I did not get a definitlve answer from my insurance company. I did talk to them about it, but until I cou1d te1l them how far away the nearest fire 26 1 2 3 4 5 6 1 B 9 10 11 L2 13 74 15 t6 l1 1B 79 20 27 22 23 24 25 CSB REPORTING(208) 890-s198 SHRIGLEY (Com) PubIic hydrant was, they were unabl-e to come up with a definite response to me. I woul-d have to believe that it would have a favorable impact on home insurance rates, even if it were simply a shorter distance to drlve the tender before it were refilled. COMMISSIONER KJELLANDER: Okay, thank you. Are there any other questions? Thank you for your testimony. COMMISSIONER REDFORD: Thank you very much. (The witness left the stand. ) COMMISSIONER KJELLANDER: Mr. John Lee. AUDIENCE: I didn't si-gn in to testify, but I think f would like to testify. COMMISSIONER KJELLANDER: We have Mr. John Lee. MR. LEE: I think I have more questions than comments at this time. COMMISSIONER KJELLANDER: Okay. Let's see, where is Gene Fadness? Is there anyone else on the l- ist ? MR. FADNESS: There's one more. COMMISSIONER KJELLANDER: And this gentleman would fike to sign in to testify. MR. FADNESS: Okay. 21 1 2 3 4 5 6 1 B 9 10 11 72 13 t4 15 L6 71 1B 79 20 27 22 23 24 25 CSB REPORTING (208 ) 890-5198 ANELLO Public COMMISSIONER KJELLANDER: You can give him this one to sign in, that would be great. COMMISSIONER KJELLANDER: Let's call Ron AneIlo. RON ANELLO, appearing as a public witness, having been first duly sworn, testified as foffows: EXAMINATTON BY MR. PRICE: 0 Good evening, sir. Coul-d you please state your name for the record and spel1 your last? A Ron AneIIo, A-n-e-l-l--o. O What is your address? A 35415 North Saint Joe Drive. O And are you a Spirit Lake East customer? A Yes, I am. 0 Thank you. Please proceed. A I'm just going to frve got some things f need to wing, but as far as fire hydrants, I just want you all to know if anybody will- fook it up and talk to your insurance companies, if you're not within two or three hundred feet from a fire hydrant, your rates are 2B 1 2 3 4 q 6 1 8 9 10 11 72 13 t4 15 t6 t'7 18 t9 20 2t 22 ZJ 24 25 CSB REPORTING (208 ) 890-5198 ANELLO Public not going to go down, ;ust so to make that clear, and also, one of our fast speakers, I just want to sdy, the main sharehol-der of Spirit Lake East Water, she fixed a problem. I don't expect anything l-ess. I don't think she did a great job. I did executive protection for years. When we had a client that had a problem or a death threat or whatever and we kept that client out of harm's wdy, we didn't do a great job, we did our job. When John Haus used to arrest people off the streets 1n L.A. when he was a cop, he didn't do great job, he dld the job that was expected of him, I'm not willing to concede that she dj-d a great job SO because she fixed a problem. That's what she's supposed to do and that's what we expect. that clear. just want to make Now, my understanding first of all, nobody has brought this up yet, but after we had our first meeting, the news media did a big interview, a l-ot with her, and a quote in that first newspaper article from her was, and I quote, "I should have asked for 6 percent instead of a 106 percent raise," and that's the way it was quoted. WeII, unl-ess that was a misquote, and I cal1ed the newspaper to find out, just to let you know, it wasn't, it sounds to me like she would be happy with 6 percent. 29 1 2 3 4 5 6 1 I 9 10 11 !2 13 74 15 L6 71 18 19 20 2L 22 z3 24 25 CSB REPORTING (208 ) 890-5198 ANELLO Public Now, Ifm not going to speak for everybody else, but I'11- bet that everybody in this room wouldnrt mind giving them a raise because they're due one, but something that's reasonabl-e. I donrt want to rehash everything that some of the other people said here, but we've been here for six years. Five years ago we put in an extra 4,000 feet of lawn, Jake put in 10,000. Some of us have big gardens and some have bigger gardens. We did that al-I based on a semi-fixed income because we could do it. Now, by the wdy, another thing about putting larger fire break lawn around your property is because if a fire comes in, you're l-ess likely to lose your house. A11 right, nowr so what you all are suggesting because in the article I just read recently, IPUC's suggestion, you want to roughly double our penalty per ga11on, per 100 gallon, and you want to take away 31 000 gallons of water and then start giving us that penalty at 6,000 instead of 9,000, so those of us, a lot of us, llke I said, that are fixed or semi-fixed incomes, all- tlrat l-awn is going to go brown or it's going to look horribl-e, so now we don't have that fire break, so great, letrs go ahead and pay the freight and lose the house. I'm not willing to do that. That just seems real- wrong to me that it should be asked to go over and above like that. 30 6 1 1 2 3 4 5 B 9 10 11 t2 13 L4 15 16 77 1B t9 20 21, 22 23 24 25 CSB REPORT]NG(208) 890-s198 ANELLO Public I keep hearing about water conservation. Now, again, this is coming from the IPUC, conserve. IPUC is from Boise. You're basically in the desert. I was, too, in California and that's al-l- I heard; cut a tree, save a whale, conserve water. We're on the biggest aquifer in the state, and it was already pointed out what we use, a lot of it goes right down in the aquifer. Conserving? That's conserving. By using, we're conserving. Six months of the year nobody irrigates anything because it's co1d, there's snow, there's rain. We're conserving, so why are you asking us to conserve? You're asking for more and it reaIIy sounds l-ike look, let me just say this: When she bought the Water Company, if she wasn't wise enough as a business person or the rest of the investors to l-ook into this and know there was going to be a problem and not right out of the gate say we're going to need to jump it up, we're going to need to do this, whether we need a second pump, a second wel-l-, whatever it is, and to wait until now, she's not a good business person. f saw the government bail- out the banks, bail out Chrysler, bail out al-l the car companies. I feel- like this is down on a smaller basis, but you know what, it's hitting home. Now, you want us to bail them out. We're willing to give them something. Donrt get me 31 wrong, but we're willing werre not willing for a 100 percent increase. Wefre certainl-y not willing for you to take away a big percentage of our water usage. I almost want to say -- f'm going to Sdy, how dare you ask that, that's wrong. This is the way itrs been and if j-t's been wrong, then it needs to be rectified, but certainly not overnight. Ask for a reasonable raise and you'11 get it, and I'm sorry, I just have no trust for business people who can't l-ook into a business before they buy it. Getting into this leak system, this leak problem, and I've heard about tL, somebody comes back after a couple, few months, they owe $1r 000 because they had a feak. Fire hydrants for burning houses, I want to know, because I don't, how many of those drastic leaks have we had. Do we really want to put up that kind of money because we get an occasional l-eak? If that leak is the fault of the Water Company, why should that person pay for it? That doesn't seem appropriate to me as we1l, and in the six years f've been here, we had one roof fire that I put out, even though the fire department was called at a nej-ghbor's house, minimal damage. We had one house fire that they lost the house, but I asked the fire department because my wife and f were on site, they had plenty of water, they had plenty of water trucks. They dldn't even have to use 2 3 4 5 6 1 B 9 1n 11 t2 13 74 15 L6 1B 79 20 27 22 23 24 25 CSB REPORTING(208) 890-5198 ANELLO Publ-ic 32 1 2 3 4 5 6 '7 I 9 10 11 t2 13 t4 15 16 L1 18 19 20 27 22 23 24 25 CSB REPORTING (208 ) 890-s198 ANELLO PubIic their second water truck. I can't even imagine what it would cost to run pipes throughout Spirit Lake East and put in fire hydrants just i-n case somebody's house catches fire, and God forbid my house will catch on fire tonight, watch, but that doesnrt matter, how often does it happen? Is this really worth putt.ing this out for it? I donrt believe so. We've got two fire companies, Apple and right here, with water trucks. HeIl, maybe we ought. to buy a water truck at Spirit Lake East and have a backup as well-. My wi-f e and I are on the road commj-ttee. Maybe we shoul-d talk about that. Too many people are asking for too much. Why don't we ;ust make it real easy. She said she shou1d have asked for 6 percent. Why don't we give her something fair above 6 percent and make this thing start to work a little bit. I'm just realIy aghast that we're being asked to do so much with such short notice and just take care of their problems and our problems overnight. We' re a smal-l- community. We can't afford 1t. That's it. COMMISSIONER KJELLANDER: Thank you. Let me see if there are any questions. Questions from the Commission? COMMISSIONER REDEORD: No questions. COMMISSIONER KJELLANDER: Thank you for 33 your testimony. (The witness left the stand. ) COMMISSIONER KJELLANDER: Letrs call Robert Costigan. ROBERT COSTIGAN, appearing as a public witness, having been first duly sworn, testified as follows: EXAMINATION BY MR, PRICE: O Good evening, si-r. Can you please state your name and spell your last for the record? A Robert Costigan, C-o-s-t-i-g-a-n. I live at 33588 North Kelso Drj-ve, Spirit Lake. f 've been here 20 years. O And are you a Spirit Lake Water Company customer? A I am a member of the Spirit Lake Water Company. O Thank you, sir. Go ahead. A I didn't come here tonight to educate this board because I hope somebody on your Staff has been reading the correspondence that I've sent to you. f'm ) 3 4 5 6 7 I 9 10 11 t2 13 t4 15 t6 l7 18 79 20 27 22 23 24 25 CSB REPORTING(208) 890-s198 COSTIGAN Pubfic 34 1 2 3 4 5 6 7 I 9 10 11 12 13 74 15 76 77 1B 19 20 2L 22 23 24 25 CSB REPORTING (208 ) 890-s198 COST]GAN Public going back to 1980. In 1980, the first water right for R.E. Hanson was capable of delivering 2,500 cubic feet to every prospective resident of this build-up Spirit Lake East plat. Now, over the years we have added on the Treeport community, and as you remember, when the Spirit Lake East Water Company applied for the municipal- water district, that was approved. I have contacted over 25 people, more people probably than you've got at this meeting tonight, to get their concerns about the water and understanding water rights. A water right does not mean that you can water your garden or you can use it on your car. It's for household use, okay? When this was set up in 1980, R.E. Hanson determined that 9r000 gallons, roughly 7,200 cubic feet of water, would be sufficient for the household. That's not the American standard today. The American standard today is about 350 gallons of water, which means we should be looking probably at 1,500 cubic feet, 11,000 some ga11ons, for today's use, not going out to water my grass, not going out to cfean the cars. Now, I didn't find any one of some 25 people that was adamantl-y opposed to an increase, except one man, and Mark [inaudible] who owns the l-ocal- grocery store said Bob, how would you feel if I raised the price on hamburger and doubled it as proposed in this 35 1 2 3 4 5 6 1 R 9 10 11 1,2 13 t4 15 L6 L1 1B 79 20 2L 22 ZJ 24 25 CSB REPORTING(208) 8 90-s198 COST]GAN Public proposal, and I said Mark, over the years if I want to buy a pound of your ground round right now, it's $3.89. 20 years ago when I came up to Spirit Lake East and took that beautiful- home that I occupy on Kel-so Drive, a pound of hamburger, ground round, was a hel-l of a lot l-ess, SO you have enough information, and the one question that was asked at that first meeting in June that nobody on your Staff answered, and f think somebody has to answer it, capital return on equity. Thatrs what this whole thing is based on. I donf t believe anybody here doesn't understand that if this water system fail-s, we don't have R.E. Hanson Corporation standing behind it. We have a company that probably does not have anywhere near the financial backing that the Hanson Companies do have. I looked at it when Hanson got rj-d of the Spirit Lake East Water Company, I think he did one heII of an improvement because it was a tremendous liability. He back in 1,916 aggregated five-and-three-quarter square mifes of property. It never went through any public commission. It went through three county commj-ssioners that signed off on it. you can't the Spirit If you go back into the public records, find anything in the public records regarding Lake East p1at. ft's one of very few 36 1 2 3 4 5 6 1 B 9 10 11 t2 13 t4 15 76 71 1B 19 20 27 22 ZJ .AZLT 25 important plats in the whol-e State of Idaho. Frankly, I don't know why R.E. Hanson punished himself by taking on the obligation to develop this beautiful- community that he did develop, and unfortunately, he's no longer with us so he can't see the benefit, but I can see the benefit down the road. What I would like to see, I woul-d like to see an adequate supply of water, 1,500 cubic feet, the 11,000 ga1lons, and then Ieave it up to the Commission, which you're going to do anyhow, to determine what is an equitable price for that. Yes, my neighbor over in Spokane might be paying 50 or 60 bucks. Back in Chufa Vista, California when I was in the Navy down there, I was paying $85.00 a month. Water was precious. It's precious here, too. Back when we had problems here with R.E. Hanson and the Company, president Bower asked me to do a hydrographic study of the Spirt Lake East plat, which I did, and then we started looking at Idaho Department of Water rights and the big probfem here was we're not over the aquifer, so if you put a wel-l down and many people here that have the money that coul-d do it, they're not going to hlt water maybe at 160 feet. They may not hit water until- they get to China, so that j-s not an optionr so I feel- very obligated to the Spirit Lake East Water Company. I want to see those people succeed. CSB (208 REPORTING) 890-s198 COSTIGAN Public 31 1 2 5 6 1 I 9 10 11 72 13 L4 15 76 77 1B t9 20 2L 22 23 24 25 CSB REPORT]NG (208) 890-s198 COST]GAN Public They put a new water meter in in front of my house and it is one you can actually go out and read. When I go over to pick up the mail about 11:00 o'clock, I go over and I l1ft up the little catch there and I can see how much water lrm using on my new water meter, and I know on the average I'm going to be using 1,500 cubic feet. We have one lady who lj-ves up on Coeur d'Alene Drive, Mrs. Dontel-, she and her husband were here in 1980 when the last phase of the water line went in on Coeur d'Al-ene Drive. Over 30 years of consecutive occupancy of that home, guess what their water usage has been on a month based on cubic feet, just a guess, 1,500 cubic feet, so what I'm suggesting and I hope the Water Company wil-l approve it, I'd like to see 1,500 cubic feet and if it goes above, f'm asking for a 25 percent increase in my water, theyrre asking for a 1,02 percent increase in their fees. I don't know what it is, but you have enough water companies that you're looking at, you should know what a credible return on equity is, and if they have that equity there, I think they got a gift. Maybe it was not the best gift in the world from R.E. Hanson, but j-t's a gift, and f would like to go home tonight and know that lfm going to be turnj-ng on the sprinkler out in my front lawn. Of course, it did rain thls afternoon a l-ittle bit, not enough to kitl the 3B 1 2 3 4 5 6 1 B 9 10 11 L2 13 74 15 16 l1 1B L9 20 27 22 23 24 25 CSB REPORTING (208 ) 890-s198 COSTIGAN PubIic dust, but I realIy appreciate what you're doing and I read very carefully the l-ast report that came out from the board back six years ago when we went t.hrough this and I looked at it and there were a lot of cuts taken at the Water Company because the lady who asked the basic question in June, capital structure and return on equity. I was the materials engineer for the City of Spokane. I've gone through at least three major water organi-zations, 12 mil1ion, B milIion, 5 mi11ion, and one Sacred Heart reservoir, so I know what water costs, and I hope that tonight we're golng to get some clarlfication. Do f want to see a $25.00 a month water biII? WeII, I pay 15 bucks for thls lousy haircut, I get that once a month, so what am I looking dt, two haircuts? This gentleman with his garden, I feel- for him, but the water rights are not granted on the basis of what we are goi-ng to do outside of the home, and if you do it, you just have to appreci-ate you're golng to pay f or it. Do you have any questions for me? Have you actually read the stuff I've been sending to you? Hopefully, somebody has MR. PRICE: every public comment. THE WITNESS: water/sewer people in Coeur Absolutely, sir. We read John Bal-dy d'AIene said who works for the Bob, I don't 39 1 2 3 4 5 6 1 o 9 10 11 72 13 t4 15 76 t1 1B 19 20 2t ')) 23 24 25 CSB REPORTING(208) 890-5198 40 COST]GAN Pubfic care what they do. If they want to raise it to 25 bucks, I'm al-l for it, okay. Right now Spirit Lake East Water Company has my check for $400 because the problem that we have is I want t.o see some kind of regular system where t.hey can take that money, and the one way to do it, and I proposed this to this committee, was to do a one-tj-me prepayment for three months. Let them get enough bucks j-n there that they have some cushion, and one way to do it j-s if you go anyplace in the United States and you are going to sign up for a water utiJ-ity, you may have to pay a prepayment. We never paid a prepayment. It's always been the monthly rate, that's what they charge, that's what they got. f'm done here. COMMISSIONER KJELLANDER: Thank you, Robert. Are there any questions? COMMISSIONER SMITH: No, we appreciate j-t and just to tel-l- you that every public comment is clrculated individually through every Commissioner, and we thank you, sir. THE WITNESS: Wel1, I think you've done your job and I know your Staff is pretty good, but I wish that one engineer, Galardo, woul-d give me back the water rights because that is a unique paper. In that particular water right, it said that that water right was 1 2 3 4 5 6 1 8 9 10 11 L2 13 74 15 76 1,7 1B t9 20 27 22 23 24 25 CSB REPORTING(208) 890-s198 47 ANELLO Public for the excl-usive use in Kootenai County and the Idaho Department of Water Resourcesr engineer senior water advisor told me there are no such exclusivities issued by the Idaho Department of Water Resources. MR. PRICE: Sir, I don't want to interrupt you, but you gave him a piece of paper and you would like it back,' is that what you're saying? THE WITNESS: Yes. MR. PRICE: Okay, I'11 make sure you get it back. THE WITNESS: Because it's unique. MR. PRICE: Okay. (The witness left the stand. ) COMMISSIONER KJELLANDER: Jana Ane11o. JANA ANELLO, appearing as a public witness, having been first duly sworn, testif ied as f ol-l-ows: THE WITNESS: I just want to EXAMINATION BY MR. PRICE: O A couple of questlons first. Your name, 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 t6 71 1B 79 20 2L 22 23 24 25 CSB REPORTING (208 ) 890-s198 ANELLO Publ-ic please, and spel1 A Jana, J-a-n-a, Anell-o, A-n-e-1-l_-o. O And what is your address? A 35415 Saint Joe Drive, Spirit Lake. O Are you a Spirit Lake customer? A Yes. O Thank you, go ahead. A Okay, I'd just like to say ftm a neighbor of Spirit Lake who loves and takes care of her property. It's ten-and-a-hal-f acres. ft's not a subdivision. ft's not in a littl-e neighborhood. You know, it's a big piece of property, and if I wanted to have grass on my entire piece of property, I should be abfe to without belng penalized. We do have a nice amount of grass. We probably have 10r000 square feet and we t.ake good care of it and it' s beautiful- and j-t' s green and I shouldn't be punished for havi-ng a nice house and a nice yard. There's a lot of yards in Splrit Lake that are not nice at al-l and I'm sure they will be well bel-ow whatever rates that you come up with and wow, that's really great, you know, but one of the main things I wanted to say was they keep talking about $12.00 a month, $12.00 a haircut, whatever and not a big deal-, but I'm not talking about $12.00 a month. At the end of every summer, I end up with approximately as much as a $300 42 1 2 3 4 5 6 1 8 Y 10 11 t2 13 t4 15 16 77 18 t9 20 2t 22 23 24 25 CSB REPORTING(208) 890-s198 A1AJ ANELLO PubIic billr so we're not talking $12.00. That sounds really cute, $12.00, $24.00. Werre talking going from 300 to possibly $600 and we are on a very fixed income, and with jobs the way they are up here, you know, I work for the state and we didn't get a raise this year with the state. They gave them a small- bonus because they couldn't afford a raise, so if they can't afford a darn raise, the rest of us can't afford a raise in our payments and stuff, but anyhow, again, like I said, we have a beautiful yard and we take care of it and we want to continue taking care of it, and I did just add a garden to it, a smal-l garden, a small nice greenhouse and, you know, we like to take care of the community and we pi-ck up the trash, so we're that kind of a person and we want to continue with that. COMMISSIONER SMITH: You seem l-ike a very rational- person who understands everything has a cost, including 10, 000 square f eet of l-awn. THE WITNESS: Yeah, I know, it does, it does, but another thing on that water bill, it doesn't say ga1Ions. Why do they do it in I just tried to read it, it was 385,000 something COMMISSIONER SMITH: Ccf ' s. THE WITNESS: Yeah, so I don't know what I'm doing, so I don't even l-ook at it to see how I was doing as far as going over, and I do live here. I do 1 2 3 4 5 6 7 B 9 10 11 72 13 74 15 t6 71 18 79 20 27 22 23 Z4 )c^ CSB REPORTING(208) 890-s198 44 ANELLO Public live in northern Idaho and put up with l-ots of snow and l-ots of cold so that during the sunrmer I should be abl-e to get back some of that water I havenft used and I think somebody else mentioned that. fn the summer I shou1d be abl-e to enjoy the water because in however many months, it's way more than most people in the country, you know, because we don't use water all year like other places, probably Boise and whatnot. COMMISSIONER SMITH: So just something to think about and I will- try to put a question mark on the end of it so it's legitimate, but the water companies, a Iot of their costs are fixed. It wouldn't matter if you used one ga11on or 10,000, they have to put in new pipes and they have to put in meters. Their investment is there regardless. THE WITNESS: And a smart business person should have known that when they bought the company and shoul-d have planned over the l-ast six years that I've been here and maybe sIowIy incrementally raj-sed rates, not just suddenly said come along and bail- me out. COMMISSIONER SMITH: I think you have an excel-l-ent point there, but I was going on the I don't use much in the winter, so I shoul-d get more in the summer THE WITNESS: Absolutely. 1 2 3 4 5 6 1 8 9 10 11 L2 13 74 15 16 71 18 19 20 2t 22 23 24 25 CSB REPORTING (208 ) B9o-s198 ANELLO Publ1c COMMISSIONER SMITH: -- the investment is every month. THE WITNESS: Not by my books. I'm goi-ng to ge1- paid yearly. I get a certain salary all year, same with water usage. Oh, well, thank you. MR. PRICE: I don't have a question, just a cornment, regarding reading your bilt, thatrs one of Staff's proposals is to make your bill a Ij-ttle bit easier to read and will- comply with some of our customer service requj-rements so that you will be able to tel-l- how much you're using and be able to translate that a l-ittle bit better, so we do recognize that and Staff has made that recommendation. THE WITNESS: Okay, and, again, I do agree with whoever said, you know, f only use 2,000 one month, give me my other seven or however much it is and I'Il use it l-ater. COMMISSIONER REDFORD: Thank you very much. THB WITNESS: Thank you. (The witness left the stand. ) COMMISSIONER KJELLANDER: That exhausts the list that we have. Is there anyone el-se that would like to testify this evening? MR. PLUNKETT: Off the record may I make a 45 brlef comment? COMMISSIONER KJELLANDER: Why don't we wait until we close down and then we'l1 be off the record. At this time point, then, we have, again, as I mentj-oned, exhausted our list of those who wanted to testify tonj-ght, So that concludes this component of our process, the public hearing process. Just as a reminder, we'11- have until Friday the 6th, two days , if you have any other written comments that you would l-ike to submit to be a part of the official record, we'11- be accepting them. As I mentioned al-so earl-ier, there i-s form that Mr. Fadness from the Public Utilities Commj-ssion Staff has there if you would like to fill out tonight. If not, you can go to our website and submit comments through there as wel-lr so with that, then, I certainfy appreciate your testimony this evening. Thank you very much for coming and being part of the process, and one of the things that we as Commissioners do when we go out to public hearings, there are a lot of cases we go to where maybe one or two people show up, and so we certainl-y do appreclate the fact that you take time out of your busy schedul-es to come in j-n numbers like this and participate and help us in the course of making the decision that we have to maker So, again, thank you it 3 4 5 6 1 8 9 10 11 72 13 74 15 1,6 1-1 18 1,9 20 2t 22 23 24 25 CSB REPORTING (208 ) 890-s198 46 COLLOQUY 1 2 3 6 7 a 9 10 11 t2 13 L4 15 76 71 18 t9 20 27 22 23 24 25 CSB REPORTING (208 ) 890-5198 for your render a published participation and we wiIl do decision in a timely fashion and avail-able as soon as is Thank you again and we (The Hearing adjourned our best to try and have that reasonable. are adjourned. at 8:07 p.m.) to 41 COLLOQUY 1 2 3 5 6 1 9 10 11 t2 13 l4 15 L6 71 18 79 20 27 22 23 24 25 CSB REPORTING (208 ) 890-5198 AUTHENT]CATION This is to certify that the foregoing proceedings held in the matter of the application of Spirit Lake East Water Company for authority to increase its rates and charges for water service, commencing at 7:00 p.m., oD Wednesday, September 4, 20!3, dt the Spirit Lake City HalI, 6042 West Main Street, Spirit Lake, Idaho, is a true and correct transcript of said proceedings and the original thereof for the file of the Commi-ssion. CONSTANCE S. BUCY Certified Shorthand Reporter 4B AUTHENT]CATION