20190322City of Eagle to Suez Supplemental 10.pdf

riICEIVED
, ",ii,'.,'.-l Pii 2: l9B. Newal Squyres (lSB #1621)
Murray D Feldman (ISB # 4097)
Holland & Hart rr-p
800 W. Main Street, Suite 1750
P.O.Box252l
Boise, ID 83702-2527
Telephone: [phone]
Facsimile: [phone]
Email : nsquyres@hollandhart. com
mfeldman@hollandhart. com
Attorneys for Intervenor City of Eagle
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NOS. SUZ-W-I8-02
EAG-W-18-01
tlt{'"J
IN THE MATTER OF THE JOINT
APPLICATION OF SUEZ WATER
IDAHO AND EAGLE WATER
COMPANY FOR THE ACQUISITION
OF EAGLE WATER COMPANY
INTERVENOR CITY OF EAGLE'S
FIRST SUPPLEMENTAL RESPONSE
TO FIRST PRODUCTION REQUEST
OF SUEZ WATER IDAHO INC.
)
)
)
)
)
)
)
The City of Eagle ("City") provides these supplemental responses to the First Production
Request of SUEZ Water Idaho Inc. to the City of Eagle dated February 8, 2019.
The City initially responded to that production request on March 15,2019. Pursuant to
the agreement between counsel for the City and SUEZ previously referenced in the initial
response to Request No. 10, the City is now providing with this supplemental response the non-
privileged documents responsive to Request No. l0 and created, drafted, or provided among the
City of Eagle or its Council members or to the public after July 12, 2008. This date cutoff for
responsive documents was previously agreed to between counsel for the City and SUEZ in
construing this Request No. 10 and the corresponding Request No. 9.
CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 1
A supplemented, narrative response to Request No. 10 is provided together with this
filing. This supplemental response is subject to the same reservations, limitations, and
constraints noted on pages l-2 of the City's initial response filing dated March 15,2019.
Because of the volume of the documents being provided in response to Request No. 10,
the documents are being provided on a compact disk mailed (or hand-delivered) to the parties at
the respective physical mailing addresses as indicated in the Certificate of Service. This written
narrative portion of the supplemental responses and notification of the distribution of the
responsive document in computer-readable form is also being served via e-mail.
DATED this 22nd of March, 2019.
City of Eagle
By:
MuITay D.
HO & HART r-r-p
Attorneys for Intervenor City of Eagle
CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 2
CITY OF EAGLE
CASE NOS. SUZ-W-18-02/EAG-W-18-01
FIRST PRODUCTION REQUEST OF SUEZ WATER IDAHO INC.
Preparer/Sponsoring Witness: Stan Ridgeway, Mayor, City of Eagle; Ken Acuff,
Superintendent, City of Eagle Water Department; Kellie Rekow,
Utility Billing Supervisor, City of Eagle Water Department
REQUEST NO. 10: Please provide any documents (including communications) the City
of Eagle or its Councilmembers, Mayor, or other officers have created, drafted, or provided
among themselves or to the public regarding the proposed acquisition of Eagle Water Company
by SUEZ or the by the City.
FIRST SUPPLEMENTAL RESPONSE TO REQUEST NO. 10: Subject to the
previously stated limitations and constraints, and as agreed between counsel for the City and
SUEZ, non-privileged documents responsive to this Request No. l0 and created, drafted, or
provided after July 12,2008 and numbered CityEagle_00014 to CityEagle_00241are provided
on a separate compact disk mailed (or hand-delivered) to those persons listed in the Certificate of
Service.
CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 3
Certificate of Service
I hereby certify that on this 22nd day of March,2019,I caused to be served a true and
correct copy of the foregoing by the method indicated below, and addressed to the following:
Diane M. Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W . Washington Street
Boise, ID 83702
Email : secretary@puc. idaho. gov
di ane.hanian @pw.idaho. gov
Commission
Sean Costello
Deputy Attorneys General
Idaho Public Utilities Commission
472W. Washington Street (83702)
P.O. Box 83720
Boise, ID 83720-0074
Email : brandon.karpen@puc. idaho. gov
sean. costello@puc. idaho. gov
A ttorn ey s .for C ommi s s i o n S taff
Michael C. Creamer
Preston N. Carter
Givens Pursley LLP
601 W. Bannock Street
P.O.Box2720
Boise, ID 83701-2720
E-mail : mcc@giv enspursley. com
prestoncarter@ givenspursley. com
Attorneys for Petitioner SUEZ Water ldaho
Inc.
Marshall Thompson
SUEZ Water Idaho, Inc.
8248 W. Victory Road
Boise, ID 83709
Email : marshall.thompson@suez. com
Petitioner
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U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
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U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 4
Molly O'Leary
BizCounselor at Law
1775 W . State St. #150
Boise, ID 83702
E-mail : molly @bizcounseloratlaw. com
Attorney for Petitioner Eagle Water Co.
Robert DeShazo, Jr.
President
Eagle Water Company, Inc.
188 W. State Street
P.O. Box 455
Eagle, ID 83616-0455
Email : eaglewaterco@gmail. com
Petitioner
N.L. Bangle
H2O Eagle Acquisition, LLC
188 W. State Street
Eagle, ID 83616
Email : nbangle @h2 o- solutionsllc. net
Petitioner
James M. Piotrowski
Piotrowski Durand, PLLC
1020 W. Main Street, Suite 440
P.O. Box 2864
Boise, ID 83701
Email : j ames@idunionlaw. com
Attorney for Intervenor CAIA
Brad M. Purdy
Attorney at Law
2019 N. lTth Street
Boise, ID 83702
Email : [e-mail]
Attorney for Intervenor CAPAI
Abigail R. Germaine
Boise City Attorney's Office
150 N. Capitol Blvd.
P.O. Box 500
Boise, ID 83701-0500
Email : [e-mail]
Attorney for Intervenor City of Boise
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U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Elechonic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 5
Norman M. Semanko
Parsons Behle & Latimer
800 W. Main Street, Suite 1300
Boise, ID 83702
Email : nsemanko@parsonsbehle. com
[e-mail]
Attorney for Intervenor EWCG
U.S. Mail
Hand Delivery
Overnight Mail
Telecopy (Fax)
Electronic Mail
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for Holland Hart llp
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CITY OF EAGLE'S FIRST SUPPLEMENTAL RESPONSE TO SUEZ'S FIRST
PRODUCTTON REQUEST - 6
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Eagle Water Co
City of Eagle
Water System Master Plan
2015 Update
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Eagle Water Co
Spring Valley
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Path: MAEagle Data)Ea* WateM1Watu Sys1tem_Mas1erRan_B. wd
CityEagle_00014
Message
From: Jim Reynolds [/O=CITY OF EAGLE/OU=FIRST ADMINISTRATIVE GROUP/CN=RECIPIENTS/CN=JREYNOLDS]
Sent: 9/10/2013 11:18:09 AM
To: Kellie Rekow [/O=CITY OF EAGLE/OU=First Administrative Group/cn=Recipients/cn=kmccombs]
Subject: Water Meeting
Kellie,
Just wanted to make sure you are available for the meeting with Blaus Wasser/Norm Bangle
on September 16th at 1:30 in Susan Buxton's office. This is the company who seeks to buy
Robert's company's water rights.
Thanks,
Jim Reynolds
Mayor of Eagle
660 East Civic Lane
Eagle, ID 83616
Like Us on Facebook
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CityEagle_00015
CONFIDENTIALITY AND NON-CIRCUMVENTION AGREEMENT
This Agreement effective as of the 2-310--id--day of QGtebe November, 2017, is
entered into by and between H2O Solutions, LLC ("First Party") and the City of Eagle,
Idaho ("Second Party").
WHEREAS, First Party wishes to protect the confidentiality of its business
information which may be supplied to Second Party as a result of business
relationships between First Party and Second Party; and
WHEREAS, Second Party wishes to protect the confidentiality of its business
information which may be supplied to First Party as a result of the business
relationships between Second Party and First Party; and
WHEREAS, the parties hereto desire and have agreed that Confidential
Information (as hereinafter defined) made available by one party (the "Disclosing Party")
to the other party (the "Receiving Party") shall be kept confidential by the Receiving
Party.
NOW, THEREFORE, in consideration of the mutual promises herein contained
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
1. As used in this Agreement, the term "Confidential Information" shall mean
any information in any form, that, at the time of disclosure from the Disclosing Party to
the Receiving Party is stamped or otherwise designated as "Confidential" and is subject
to this Agreement, including, but not limited to trade secrets, customer lists, product
lines, methods of business operation of the Disclosing Party, technical information,
economic information data, specifications, know-how, process information and methods
of manufacture, distribution and sale relating to the development and marketing of the
Disclosing Party's product, service and general business operations, "Confidential
Information" does not include any information which (a) at the time of disclosure is
generally known by the public or thereafter becomes public knowledge through no act
or omission of or on behalf of the Receiving Party; (b) is disclosed to the Receiving
Party by third parties having a right to do so and who have not imposed upon the
Receiving Party obligations of confidentiality in respect thereof; (c) is known to the
Receiving Party, as can be documented, prior to disclosure; or (d) is independently
developed by an employee of the Receiving Party without the knowledge of the
disclosed Confidential Information.
2. Each party hereto acknowledges that the other party has proprietary
interest in maintaining the confidentiality of its Confidential Information and further
agrees not to, either during or after completion of the purpose (the "Purpose") for which
the Confidential Information has been disclosed to it, disclose the Confidential
Information (except in accordance with Paragraph 4) or use the Confidential Information
for any purpose other than the purposes stated herein.
3. The Confidential Information disclosed hereunder is and will remain the
respective property of the Disclosing Party and any drawings, written or printed data
1
CityEagle_00016
included therein may not be copied or reproduced, mechanically or otherwise without
the expressed written permission of the Disclosing Party.
4. The Receiving Party shall (a) limit the disclosure of the Confidential
Information in its organization to those of its affiliates, officers, employees, legal and
technical advisors, development partners and/or a third party that is directly involved in
the Transaction; (b) ensure that such affiliates, officers, employees, advisors, partners
and third parties ("Representatives") are directed to maintain the confidentiality of the
Confidential Information; and (c) be free to disclose the Confidential Information of the
Disclosing Party if and to the extent required by law, rule, regulation, subpoena, court
order or similar judicial or legal process or requested by any governmental agency,
regulatory authority (including, any self-regulatory organization claiming to have
jurisdiction) or any bank examiner ("Law"), after having, to the extent permitted by Law,
notified the Disclosing Party in writing about the subpoena; provided, however, that the
Receiving Party shall not be required to inform such person or give such notification to the
Disclosing Party if the disclosure was made to a bank examiner, regulatory examiner or
self-regulatory examiner in the course of such examiner's examination or inspection.
Notwithstanding any other provision herein, this Agreement in no way restricts the
obligation of the City of Eagle to comply with the Idaho Public infoFmation Records Act or
any ruling or decision by the Idaho Attorney General or court of law. The Parties hereby
agree that the City of Eagle retains its right to exercise its discretion to determine its
obligations under the Idaho Public infoF aatien-Records Act.
5. Unless the Disclosing Party has agreed otherwise in writing, upon request
by the Disclosing Party, the Receiving Party shall, at Receiving Party's election, return
or (if accompanied by a certificate executed delivered by a senior officer of the
Receiving Party attesting thereto) destroy any and all materials which contain any
Confidential Information including, but not limited to, all documents, plans, samples,
drawings, specifications, notebooks, computer software and any other materials
whatsoever and all copies made of them; provided that Receiving Party may retain
such copies of the Confidential Information as may be required to comply with internal
document retention and compliance policies only or in accordance with applicable law
or regulation. Any such retained information shall be held in accordance with the terms
of this Agreement. Notwithstanding any other provision herein, the Parties agree that
the City of Eagle reserves the right to retain any such information or documentation
described herein in accordance with the City's document retention schedule and as
necessary to comply with any applicable document retention schedules, or other such
rules, regulations or provisions as imposed by state or federal law.
6. This Agreement may not be changed or amended except in writing and
signed by the party to be bound. This Agreement and the legal relations between the
parties shall be construed and determined in accordance with the laws of the State of
Idaho. Exclusive venue for any claims, suits or any other action arising from or
connected in any way to this Agreement shall be in Ada County, Idaho. The obligations
and undertakings of each of the Parties to this Agreement shall deemed to have
occurred in Ada County, Idaho.
7. Unless and until a final, written definitive agreement regarding a
transaction has been entered between the parties in relation to the Purpose (a
2
CityEagle_00017
"Transaction"), neither party shall be under any obligation to pursue any Transaction, to
enter any agreements with respect to a Transaction, or to commit to provide equity or
debt financing, to underwrite the public offering or private placement of securities, or to
provide financial advisory services with respect to a Transaction. Nothing in this
Agreement creates a fiduciary duty or fiduciary, agency or advisory relationship
between the parties with respect to the Purpose, and each party waives any claims
based on an assertion of any such duty or relationship.
8. This Agreement and all rights and obligations hereunder shall remain in
effect and shall be binding on the parties for a period of two (2) years after the effective
date of this Agreement.
I
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date set forth above,
STATE OF IDAHO
)ss.
County of
First Party:
H2O Solutions, LLC
. On this day of 20 , before me, the undersigned, a
Notary Public in and for said State, personally appeared
known or identified to me to be the of H2O Solutions LLC the corporation
that executed the instrument or the person who executed the instrument on behalf of
said corporation, and acknowledged to me that such corporation executed the same.
I N WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and vear in this certificate first above written,
3
CityEagle_00018
NOTARY PUBLIC FOR IDAHO
Residinq at:
My commission expires:
SUBSCRIBED AND SWORN TO before me this day of
,20 .
NOTARY PUBLIC FOR IDAHO
Residinq in I Idaho
My Commission Expires:
ATTEST:
Sharon Bergmann, Clerk
Second Party:
City of Eagle, Idaho
Stan Ridqway, Mayor
4
CityEagle_00019
CONFIDENTIALITY AND NON-CIRCUMVENTION AGREEMENT
This Agreement effective as of the 231d-9th day Of QGtGbeF anuary. 2018, 2017,
is entered into by and between H2O Solutions, LLC ("First Party") and the City of Eagle,
Idaho ("Second Party").
WHEREAS, First Party wishes to protect the confidentiality of its business
information which may be supplied to Second Party as a result of business
relationships between First Party and Second Party; and
WHEREAS, Second Party wishes to protect the confidentiality of its business
information which may be supplied to First Party as a result of the business
relationships between Second Party and First Party; and
WHEREAS, the parties hereto desire and have agreed that Confidential
Information (as hereinafter defined) made available by one party (the "Disclosing Party")
to the other party (the "Receiving Party") shall be kept confidential by the Receiving
Party.
NOW, THEREFORE, in consideration of the mutual promises herein contained
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
1. As used in this Agreement, the term "Confidential Information" shall mean
any information in any form, that, at the time of disclosure from the Disclosing Party to
the Receiving Party is stamped or otherwise designated as "Confidential" and is subject
to this Agreement, including, but not limited to trade secrets, customer lists, product
lines, methods of business operation of the Disclosing Party, technical information,
economic information data, specifications, know-how, process information and methods
of manufacture, distribution and sale relating to the development and marketing of the
Disclosing Party's product, service and general business operations. "Confidential
Information" does not include any information which (a) at the time of disclosure is
generally known by the public or thereafter becomes public knowledge through no act
or omission of or on behalf of the Receiving Party; (b) is disclosed to the Receiving
Party by third parties having a right to do so and who have not imposed upon the
Receiving Party obligations of confidentiality in respect thereof; (c) is known to the
Receiving Party, as can be documented, prior to disclosure; or (d) is independently
developed by an employee of the Receiving Party without the knowledge of the
disclosed Confidential Information.
2. Each party hereto acknowledges that the other party has proprietary
interest in maintaining the confidentiality of its Confidential Information and further
agrees not to, either during or after completion of the purpose (the "Purpose") for which
the Confidential Information has been disclosed to it, disclose the Confidential
Information (except in accordance with Paragraph 4) or use the Confidential Information
for any purpose other than the purposes stated herein.
3. The Confidential Information disclosed hereunder is and will remain the
respective property of the Disclosing Party and any drawings, written or printed data
1
CityEagle_00020
included therein may not be copied or reproduced, mechanically or otherwise without
the expressed written permission of the Disclosing Party.
4. The Receiving Party shall (a) limit the disclosure of the Confidential
Information in its organization to those of its affiliates, officers, employees, legal and
technical advisors, development partners and/or a third party that is directly involved in
the Transaction; (b) ensure that such affiliates, officers, employees, advisors, partners
and third parties ("Representatives") are directed to maintain the confidentiality of the
Confidential Information; and (c) be free to disclose the Confidential Information of the
Disclosing Party if and to the extent required by law, rule, regulation, subpoena, court
order or similar judicial or legal process or requested by any governmental agency,
regulatory authority (including, any self-regulatory organization claiming to have
jurisdiction) or any bank examiner ("Law"), after having, to the extent permitted by Law,
notified the Disclosing Party in writing about the subpoena; provided, however, that the
Receiving Party shall not be required to inform such person or give such notification to the
Disclosing Party if the disclosure was made to a bank examiner, regulatory examiner or
self-regulatory examiner in the course of such examiner's examination or inspection.
Notwithstanding any other provision herein, this Agreement in no way restricts the
obligation of the City of Eagle to comply with the Idaho Public infoFmafien Records Act or
any ruling or decision by the Idaho Attorney General or court of law. The Parties hereby
agree that the City of Eagle retains its right to exercise its discretion to determine its
obligations under the Idaho Public information Records Act.
5. Unless the Disclosing Party has agreed otherwise in writing, upon request
by the Disclosing Party, the Receiving Party shall, at Receiving Party's election, return
or (if accompanied by a certificate executed delivered by a senior officer of the
Receiving Party attesting thereto) destroy any and all materials which contain any
Confidential Information including, but not limited to, all documents, plans, samples,
drawings, specifications, notebooks, computer software and any other materials
whatsoever and all copies made of them; provided that Receiving Party may retain
such copies of the Confidential Information as may be required to comply with internal
document retention and compliance policies only or in accordance with applicable law
or regulation. Any such retained information shall be held in accordance with the terms
of this Agreement. Notwithstanding any other provision herein, the Parties agree that
the City of Eagle reserves the right to retain any such information or documentation
described herein in accordance with the City's document retention schedule and as
necessary to comply with any applicable document retention schedules, or other such
rules, regulations or provisions as imposed by state or federal law.
6. This Agreement may not be changed or amended except in writing and
signed by the party to be bound. This Agreement and the legal relations between the
parties shall be construed and determined in accordance with the laws of the State of
Idaho. Exclusive venue for any claims, suits or any other action arising from or
connected in any way to this Agreement shall be in Ada County, Idaho. The obligations
and undertakings of each of the Parties to this Agreement shall deemed to have
occurred in Ada County, Idaho.
7. Unless and until a final, written definitive agreement regarding a
transaction has been entered between the parties in relation to the Purpose (a
2
CityEagle_00021
"Transaction"), neither party shall be under any obligation to pursue any Transaction, to
enter any agreements with respect to a Transaction, or to commit to provide equity or
debt financing, to underwrite the public offering or private placement of securities, or to
provide financial advisory services with respect to a Transaction. Nothing in this
Agreement creates a fiduciary duty or fiduciary, agency or advisory relationship
between the parties with respect to the Purpose, and each party waives any claims
based on an assertion of any such duty or relationship.
8. This Agreement and all rights and obligations hereunder shall remain in
effect and shall be binding on the parties fGF a peFied of twe ,(2) yeaFs afteF the e#eetiv
date of this AgFeen; until September 302018.
JV
4o the City of Eagic on ti
44at-,
Y diss~ssie W#h
first Party to 4"
I a GGP&aGt,--9f
'4st
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date set forth above.
First Party:
H2O Solutions, LLC
STATE OF IDAHO
County- of
On this day of 20 , before me, the undersigned, a
Notary Public in and for said State, Personaliv appeared
known or identified to me to be the of H2O Solutions LLC the corporation
that executed the instrument or the person who executed the instrument on behalf of
said corporation, and acknowledged to me that such corporation executed the same.
I N WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
3
CityEagle_00022
NOTARY PUBLIC FOR IDAHO
Residing at:
My commission expires:
SUBSCRIBED AND SWORN TO before me this day of
,20 ,
NOTARY PUBLIC FOR IDAHO
Residing in , Idaho
ATTEST:
Sharon Bergmann, Clerk
My Commission Expires:
Second Party:
City of Eagle, Idaho
Stan Ridgway, Mayor
4
CityEagle_00023
CONFIDENTIALITY AND NON-CIRCUMVENTION AGREEMENT
This Agreement effective as of the 2V-9th day of GGtobefJanuarv, 2018, 2017,
is entered into by and between H2O Solutions, LLC ("First Party") and the City of Eagle,
Idaho ("Second Party").
WHEREAS, First Party wishes to protect the confidentiality of its business
information which may be supplied to Second Party as a result of business
relationships between First Party and Second Party; and
WHEREAS, Second Party wishes to protect the confidentiality of its business
information which may be supplied to First Party as a result of the business
relationships between Second Party and First Party; and
WHEREAS, the parties hereto desire and have agreed that Confidential
Information (as hereinafter defined) made available by one party (the "Disclosing Party")
to the other party (the "Receiving Party") shall be kept confidential by the Receiving
Party.
NOW, THEREFORE, in consideration of the mutual promises herein contained
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows-
1 . As used in this Agreement, the term "Confidential Information" shall mean
any information in any form, that, at the time of disclosure from the Disclosing Party to
the Receiving Party is stamped or otherwise designated as "Confidential" and is subject
to this Agreement, including, but not limited to trade secrets, customer lists, product
lines, methods of business operation of the Disclosing Party, technical information,
economic information data, specifications, know-how, process information and methods
of manufacture, distribution and sale relating to the development and marketing of the
Disclosing Party's product, service and general business operations. "Confidential
Information" does not include any information which (a) at the time of disclosure is
generally known by the public or thereafter becomes public knowledge through no act
or omission of or on behalf of the Receiving Party; (b) is disclosed to the Receiving
Party by third parties having a right to do so and who have not imposed upon the
Receiving Party obligations of confidentiality in respect thereof; (c) is known to the
Receiving Party, as can be documented, prior to disclosure; or (d) is independently
developed by an employee of the Receiving Party without the knowledge of the
disclosed Confidential Information.
2. Each party hereto acknowledges that the other party has proprietary
interest in maintaining the confidentiality of its Confidential Information and further
agrees not to, either during or after completion of the purpose (the "Purpose") for which
the Confidential Information has been disclosed to it, disclose the Confidential
Information (except in accordance with Paragraph 4) or use the Confidential Information
for any purpose other than the purposes stated herein.
3. The Confidential Information disclosed hereunder is and will remain the
respective property of the Disclosing Party and any drawings, written or printed data
1
CityEagle_00024
included therein may not be copied or reproduced, mechanically or otherwise without
the expressed written permission of the Disclosing Party.
4. The Receiving Party shall (a) limit the disclosure of the Confidential
Information in its organization to those of its affiliates, officers, employees, legal and
technical advisors, development partners and/or a third party that is directly involved in
the Transaction; (b) ensure that such affiliates, officers, employees, advisors, partners
and third parties ("Representatives") are directed to maintain the confidentiality of the
Confidential Information; and (c) be free to disclose the Confidential Information of the
Disclosing Party if and to the extent required by law, rule, regulation, subpoena, court
order or similar judicial or legal process or requested by any governmental agency,
regulatory authority (including, any self-regulatory organization claiming to have
jurisdiction) or any bank examiner ("Law"), after having, to the extent permitted by Law,
notified the Disclosing Party in writing about the subpoena; provided, however, that the
Receiving Party shall not be required to inform such person or give such notification to the
Disclosing Party if the disclosure was made to a bank examiner, regulatory examiner or
self-regulatory examiner in the course of such examiners examination or inspection.
Notwithstanding any other provision herein, this Agreement in no way restricts the
obligation of the City of Eagle to comply with the Idaho Public - e •i ~ '.- • Records Act or
any ruling or decision by the Idaho Attorney General or court of law. The Parties hereby
agree that the City of Eagle retains its right to exercise its discretion to determine its
obligations under the Idaho Public 109Fmation Records Act.
5. Unless the Disclosing Party has agreed otherwise in writing, upon request
by the Disclosing Party, the Receiving Party shall, at Receiving Party's election, return
or (if accompanied by a certificate executed delivered by a senior officer of the
Receiving Party attesting thereto) destroy any and all materials which contain any
Confidential Information including, but not limited to, all documents, plans, samples,
drawings, specifications, notebooks, computer software and any other materials
whatsoever and all copies made of them; provided that Receiving Party may retain
such copies of the Confidential Information as may be required to comply with internal
document retention and compliance policies only or in accordance with applicable law
or regulation. Any such retained information shall be held in accordance with the terms
of this Agreement. Notwithstanding any other provision herein, the Parties agree that
the City of Eagle reserves the right to retain any such information or documentation
described herein in accordance with the City's document retention schedule and as
necessary to comply with any applicable document retention schedules, or other such
rules, regulations or provisions as imposed by state or federal law.
6, This Agreement may not be changed or amended except in writing and
signed by the party to be bound. This Agreement and the legal relations between the
parties shall be construed and determined in accordance with the laws of the State of
Idaho. Exclusive venue for any claims, suits or any other action arising from or
connected in any way to this Agreement shall be in Ada County, Idaho. The obligations
and undertakings of each of the Parties to this Agreement shall deemed to have
occurred in Ada County, Idaho.
7. Unless and until a final, written definitive agreement regarding a
transaction has been entered between the parties in relation to the Purpose (a
2
CityEagle_00025
"Transaction"), neither party shall be under any obligation to pursue any Transaction, to
enter any agreements with respect to a Transaction, or to commit to provide equity or
debt financing, to underwrite the public offering or private placement of securities, or to
provide financial advisory services with respect to a Transaction. Nothing in this
Agreement creates a fiduciary duty or fiduciary, agency or advisory relationship
between the parties with respect to the Purpose, and each party waives any claims
based on an assertion of any such duty or relationship.
8. This Agreement and all rights and obligations hereunder shall remain in
effect and shall be binding on the parties
until September 30, 2018.
9. The Second Party agrees that, until December 31, 2019September 30,
2018 (the "Exclusivity Period"), the Second Pa
w+th respect to the n
ii
€a#theFagrees that, during the Exclusivity Period, it shall not, directly or indirectly, have
any discussion with or provide any further confidential information or data relating to the
First Party to any person relating to a Contract contract for the purchase of water owned
or formally owned by Eagle Water Company or engage in any negotiations concerning
a GentFaGtcontract, or otherwise facilitate any effort or attempt to negotiate a Contrast
contract and shall terminate any existing activities, discussions or negotiations with any
persons other than The First Party that may be ongoing with respect to any
Dint contract."
I N WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date set forth above.
First Party:
H2O Solutions, LLC
STATE 4F IDAHO }
County of }
On this day of 20 , before me, the undersigned, a
Notary Public in and for said State, personally appeared
known or identified to me to be the of H2O Solutions LLC the corporation
that executed the instrument or the person who executed the instrument on behalf of
said corporation, and acknowledged to me that such corporation executed the same.
3
CityEagle_00026
IN WITNESS WHEREOF, t, have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
NOTARY PUBLIC FOR IDAHO
Residinq at:
My commission expires:
SUBSCRIBED AND SWORN-TO before me this 1. - -.- day of
,20 ,
NOTARY PUBLIC FOR IDAHO
ATTEST:
Sharon Bergmann, Clerk
Residinq in , Idaho
My Commission Expires:
Second Party:
City of Eagle, Idaho
Stan Ridgway, Mayor
4
CityEagle_00027
ATTORNEYS AND COUNSELORS AT LAW
SHANNON M. ATWELL
STEPHANIE J. BONNEYz
PAUL J. FITZER
JILL S. HOLINKA
CHERESE D. MCLAIN
ANTHONY M. PANTERA, IV
GEOFFREY A. SCHROEDER
FRANCES R. STERN
PAULA. TURCKE
January 14, 2019
Submitted via U.S. Mail and electronically
Eagle Water Company
172 West State Street
Eagle, ID 83616
RE: Notice of Default
To Eagle Water Company:
7699 W RrvERSIDE DRIVE
BOISE, ID 83714
TELEPHONE: [phone]o0
FACSIMILE: [phone]
WWW.MSBTLAW.COM
MICHAEL C. MOORE, Of Counsel
DENNIS L. RADOCHA, Of Counsel
Also admitted in Utah
On behalf of the City of Eagle, please be advised and take notice that Eagle Water
Company ("EWC") is in default of the Agreement between EWC and the City of Eagle dated
July 12, 2008, a copy of which is attached hereto. This constitutes notice of default under
Section 10 of the Agreement. EWC failed to continue to make payments due and failed to
provide required notice to the City.
Section 6 of the Agreement is entitled "Right of First Refusal" and prescribes a clear
intent and specific process by which the City shall have the "exclusive right" of first refusal
triggered by a determination by EWC to "sell or convey all or any part of its Water System...."
Agreement (attached hereto), Section 6. Upon receipt of such notice from EWC, the Agreement
prescribes that the "City shall have the exclusive right for 30 days after receiving such notice to
provide Notice of Intent to Purchase the Water System or portion thereof to which such bona fide
offer refers at the amount of said offer...." Id.
The proceedings in Case Nos. SUZ-W-18-02 and EAG-W-18-01 before the Idaho Public
Utilities Commission appear to reflect a triggering event under Section 6 of the Agreement — a
Joint Application of Suez Water Idaho and Eagle Water Company for the Acquisition of Eagle
Water Company. However, EWC did not provide notice to the City before making any such
agreement and is therefore in violation of Section 6 and the City's Right of First Refusal.
On behalf of the City, we hereby demand that you give notice stating EWC's desire to
CityEagle_00028
January 14, 2019
Page 2
sell all or specified part(s) of the EWC Water System and the amount and terms of such offer(s)
in detail. Pursuant to Section 10 of the Agreement, you have fifteen (15) days to cure this
default.
Upon your response, or lack thereof within the specified time period, the City will
determine whether to pursue its rights under the Agreement. The City reserves its rights to seek
alternative or additional remedies as may be applicable.
Cherese D. McLain
cc: Molly O'Leary (via email)
CityEagle_00029
From: Cherese D. McLain
To: [e-mail]
Cc: Paul A. Turcke
Subject: Fwd: 1076/28 - Eagle Water Company Response to City of Eagle"s "Notice of Default"
Date: Tuesday, January 29, 2019 5:45:20 PM
Attachments: image009.pnq
image010.ona
image011.ona
image012.ona
01.29.19 - RESPONSE TO CITY OF EAGLE NOTICE OF DEFAULT.pdf
Get Outlook for Android
From: Molly O'Leary <[e-mail]>
Sent: Tuesday, January 29, 2019 4:53:35 PM
To: Stan Ridgeway ([e-mail]); [e-mail]
Cc: Cherese D. McLain; Paul A. Turcke
Subject: 1076/28 - Eagle Water Company Response to City of Eagle's "Notice of Default"
PLEASE SEE THE ATTACHED
Woffy OEeary
BizCounselor Law
1775 W. State Street, #150
Boise, Idaho 83702
Voice/Text: 208.45 3.6106
E-Mail: Molly a~BiXounselorAtLaw.com
> Twitter: @BizCounselor k i > Linked-In: lrJ..iJ > Facebook:Ki
Mol an latha math mu oidhche.
Praise the good day at the close of it.
Disclaimer: This message may contain confidential communications protected by the attorney client privilege. If you
CityEagle_00030
received this message in error, please delete it and notify me of the error. Thank you!
CityEagle_00031
Woffy O'Leary
D0
[ Ca0
BKOLInse(or Law
1775 W. State Street, #150
Boise, Idaho 83702
Voice/Text: 208.453.6106
E-Mail: [e-mail]
29 January 2019
City of Eagle
P. O. Box 1520
Eagle, Idaho 83616
VIA U. S. Mail and Electronic Mail:
[e-mail]
[e-mail]
RE: Eagle Water Company, Inc.'s Response to City's "Notice of Default"
Mayor Stan Ridgeway and Eagle City Council:
This letter is sent in response to the City of Eagle's "Notice of Default" sent to Eagle Water
Company, Inc. @'Eagle Water'j on or about January 14, 2019.
Eagle Water unequivocally disagrees with the City's conclusion that Eagle Water's agreement to
sell its assets to H2O Eagle Acquisition, LLC r'H2O'j constitutes a "triggering event" under
Section 6 of the Intertie Agreement entered into by Eagle Water and the City of Eagle in 2008.
As the City of Eagle is well aware, and as its agents have publicly acknowledged, the City of
Eagle was given the opportunity to purchase Eagle Water in late 2014, continuing into 2015.
After researching the cost of such a purchase and the related costs to conduct a revenue bond
election and integrate the two systems, which costs would be borne by the City's water
customers, the City declined to move forward with the transaction.
The City was informed at the time of its discussions with Eagle Water in 2014-2015 that, if it
chose not to move forward at that time with a purchase of Eagle Water, H2O would be
1
CityEagle_00032
purchasing Eagle Water. Thus, the City declined to proceed with purchasing Eagle Water with
full knowledge of Eagle Water's intent to sell its assets to H2O if the City didn't agree to move
forward with the purchase opportunity.
According to a blog posted on the City's website by Mayor Ridgeway, dated December 21,
2018, the Mayor was contacted by Mr. DeShazo in early 2016 with yet another opportunity to
purchase Eagle Water Company. But, once again, the City declined to pursue the opportunity.
https:/ /www.cityofeagle.org/ Blog.aspx?IID=1#item
As the Mayor publicly acknowledged at the January 22, 2019 City Council meeting, in the Fall
of 2017, the City entered into discussions with N. L. Bangle, representing H2O Solutions, LLC
and H2O Eagle Acquisition, LLC, regarding H2O's purchase of Eagle Water. In furtherance of
those discussions, the City toured Eagle Water's facilities and met with Staff at the Idaho Public
Utilities Commission in 2018. In addition, the Mayor stated that he sought and received City
Council approval to sign a "non-disclosure agreement" with H2O regarding the City's proposed
purchase of wholesale water from H2O once the sale of Eagle Water to H2O was finalized. In
keeping with the City's by now well-established pattern of delay, Mr. Ridgeway did not get
around to signing the non-disclosure agreement until January of 2018.
For the City to now represent to its citizens, the public at large, and to the Idaho Public
Utilities Commission that the first it knew of H2O's purchase of Eagle Water was when it read
of Suez Water Idaho, Inc.'s purchase of Eagle Water from H2O in the Idaho Statesman in
November of 2018, is disingenuous at best and a willful lie at worst.
Eagle Water justifiably relied on the City's decision in 2015 not to purchase Eagle Water
Company. The City cannot simply sit on whatever rights it claims it may have and then, when
an opportunity it repeatedly passed up is seized by another, claim with any degree of credibility
that it could've/would've when, in truth, it simply should've. The doctrines of waiver, laches,
and estoppel would all bar such an eleventh hour claim of an alleged right of first refusal.
Further, to be clear, Eagle Water denies that there is any enforceable contract right of first
refusal on the part of the City, for reasons including but not limited to the Idaho Statute of
Frauds requirement that any contract to transfer real property must have all the particulars -
- including a sufficient description of the real property to be transferred -- to be reduced to
writing.
If the City persists in this regard, it can be assured that Eagle Water will not only aggressively
defend the sale of its assets to H2O, but it will pursue appropriate tort claims against the City
for interfering with the subject sale.
This letter is without prejudice to, nor does it constitute an election or waiver of, nor raise
an estoppel against, any and all remedies and rights of Eagle Water at law or in equity or
under any agreement [if any, in fact, exists] of the parties. Among the specific reservations
by Eagle Water is that no admission whatsoever is hereby made of the existence of any right
2
CityEagle_00033
of first refusal. Eagle Water specifically denies that any such enforceable right currently
exists or has existed in the past.
Sincerely,
Molly 0%eary
rC Law, PLLC
On beha/f of Fag/e Water Company, kc.
CC: Cherise D. McClain — [e-mail]
Paul A. Turcke — [e-mail]
3
CityEagle_00034
From: Cherese D. McLain
To: [e-mail]; Paul A. Turcke
Subject: Fwd: SUEZ Water Idaho Inc. / Eagle Water Company, Inc. (30-174) [IWOV-GPDMS.FID834574]
Date: Tuesday, January 29, 2019 5:31:28 PM
Attachments: 2019-01-29 TED to McLain.PDF
Sent from my Verizon, Samsung Galaxy smartphone
Original message
From: Stacy Wardein <[e-mail]>
Date: 1/29/19 4:49 PM (GMT-07:00)
To: "Cherese D. McLain" <[e-mail]>
Cc: Thomas E Dvorak <[e-mail]>
Subject: SUEZ Water Idaho Inc. / Eagle Water Company, Inc. (30-174) [IWOV-
GPDMS.FID834574]
Ms. McLain,
Please see the attached correspondence from Mr. Dvorak. Should you have any
questions, please contact him directly.
Best,
Stacy
Stacy Wardein, Legal Assistant
GIVENS PURSLEY LLP
601 W Bannock St, Boise, ID 83702
direct 208-388-1249
fax [phone]
[e-mail]
www.givenspursley.com
CONFIDENTIALITY NOTICE: This communication is confidential and may contain privileged information. If you
have received it in error, please advise the sender by reply email and immediately delete the message and any
attachments without copying or disclosing the contents. Thank you.
CityEagle_00035
GrIVENS PURSLEYLLP
Attorneys and Counselors at Law
601 W. Bannock Street Gary G. Allen Kersti H, Kennedy W. Hugh O'Riordan, LL.M.
PO Box 2720 Christopher J. Beeson Neal A. Koskella Randall A. Peterman
Boise, ID 83701 Jason J. Blakley Michael P. Lawrence Jack W. Relf
Telephone: [phone] Clint R. Bolinder Franklin G. Lee Michael O. Roe
Facsimile: 208-388-1300 Jeff W. Bower David R. Lombardi Jamie Caplan Smith
Preston N. Carter Kimberly D. Maloney Jeffrey A. Warr
www.givenspursley.com Jeremy C. Chou Kenneth R. McClure Robert B. White
William C. Cole Kelly Greene McConnell
Michael C. Creamer Alex P. McLaughlinThomas E. Dvorak
208 388 1245
ted@g iven spursley.co m
Amber N. Dina
Bradley J. Dixon
Melodie A. McQuade
Christopher H. Meyer
Thomas E. Dvorak L. Edward Miller
Debora Kristensen Grasham Patrick J. Miller Kenneth L. Pursley (1940-2015)
Martin C. Hendrickson Judson B. Montgomery James A. McClure (1924-2011)
Brian J. Holleran Deborah E. Nelson Raymond D. Givens (1917-2(708)
January 29, 2019
VIA ELECTRONIC MAIL (cdm@msbtlam com)
Cherese D. McLain
MSBT Law
7699 West Riverside Drive
Boise, ID 83714
Dear Ms. McLain:
I write on behalf of my client, SUEZ Water Idaho Inc., an Idaho corporation (hereinafter
"SUEZ").' Your letter of January 14, 2019, addressed to Eagle Water Company, Inc. ("Eagle
Water Company"), on behalf of your client, the City of Eagle, has been brought to my client's
attention.
I understand that you are representing the City of Eagle in proceedings before the Public
Utilities Commission, Case Numbers SUZ-W-18-02 and EAG-W-18-01, and filed a Petition to
Intervene on December 21, 2018, and an Amended Petition to Intervene on January 4, 2019
("Amended Petition"). From having appeared in this case, you know that SUEZ is under contract
with H2O Eagle Acquisition LLC, a Wyoming limited liability company (hereinafter "H20"), to
purchase certain assets of Eagle Water Company, as that contract is the subject of that proceeding.
The allegations in your Amended Petition and your January 14, 2019 letter were the first
time that SUEZ became aware that the City of Eagle claims an alleged right of first refusal
stemming from a 2008 Intertie Agreement. I understand from other sources that the City itself
"forgot" about this alleged right until shortly before your letter. The Amended Petition itself was
apparently filed because the City has "become aware, and is evaluating the meaning and potential
applicability, of ... [an alleged] `right of first refusal."' The City's alleged right of first refusal is
invalid and unenforceable as (a) the alleged right of first refusal lacks a sufficient legal description
for purposes of the Idaho Statute of Frauds; and (b) the City has not exercised said right despite
' Incidentally, SUEZ was simply the name change of an existing Idaho company, "United Water Idaho, Inc." and the
corporation has existed as an Idaho corporation continually for 91 years.
CityEagle_00036
Cherese D. McLain
January 29, 2019
Page 2
having notice of a sale or potential sale of said assets for almost four years, thereby invoking bars
under the doctrines of waiver and lathes against the claimed exercise.
SUEZ expended considerable resources, funds and time in pursuit of its contractual fights
and in doing so, reasonably relied upon the absence of any prior assertion of a fight of first refusal
by the City.
SUEZ is particularly troubled with the fact that a governmental entity seems to have set
out to intentionally interfere with a contract between private entities. Such conduct seems very
close to conduct that, if proven through further inquiry and discovery in litigation, may represent
a deprivation of due process property rights of SUEZ or interference with SUEZ's contract rights
under color of state law, in violation of fights protected by the U.S. Constitution, 11 U.S.C. § 1983
as well as the Idaho state constitution. Such conduct, if it indeed occurred, may also result in a
claim for violations of anti-trust laws, under the so-called Sham Exception to the Noerr-Pennington
antitrust immunity doctrine.
The pertinent background facts as SUEZ currently understands them` are as follows.
As early as 2014, the principal at H2O, N.L. Bangle, began discussions with the then-mayor
of Eagle regarding whether the City of Eagle would be interested in purchasing Eagle Water
Company. Those discussions evolved over time to H2O purchasing the assets of Eagle Water
Company (the "I" Agreement to Sell") and then essentially wholesaling the water supply to the
City of Eagle, which would then own the customers and distribution networks. The city council
met with H2O in an Executive session in January 2018 to discuss details of a potential agreement.
To that end, the City of Eagle Mayor and several other City officials and employees, attended a
tour of the Eagle Water Company's facilities with Mr. Bangle in approximately January 2018. As
a result of positive discussions during that tour, Mr. Bangle sent to the City, and you received a
copy of, and apparently personally made changes to, a certain Memorandum of Understanding
(hereinafter "MOU"). This MOU was transmitted to the City by Mr. Bangle in January 2018.
That MOU specifically referenced what was being discussed at the time, H20's purchase of Eagle
Water Company. In the very first paragraph of that draft MOU, it states "Seller [H20], is
purchasing Eagle Water Company located in Eagle, Idaho (the "Project")." (Emphasis added.)
I understand that thereafter you personally attended with Mr. Bangle, Mayor Ridgeway
and others, a meeting with a representative of the PUC during which a perceived negative response
to Eagle's planned rate increase to the customers of Eagle Water Company by the PUC was
brought up. It is believed this PUC meeting to discuss H2O purchasing the assets and wholesaling
the water to the City occurred almost a year ago, in February of 2018. Thereafter, Mr. Bangle had
limited communications regarding whether Eagle was going to approve the MOU until he received
an email on June 13, 2018, from City employee Kellie Rekow indicating that "City council
approved the Mayor's signature on the confidential MOU last night" and asking for his signature
on the same. Shortly thereafter, Mr. Bangle realized that significant changes had been made to the
2 This understanding is based on the best information available to SUEZ to date. Information is still being discovered,
and SUEZ reserves the right. to amend or supplement these facts as new or better information becomes available.
CityEagle_00037
Cherese D. McLain
January 29, 2019
Page 3
MOU, and he was not willing to sign it with those changes. Mr. Bangle's understanding was that
you personally, or your office, had made those changes to the document, and he later received a
redline that he understood was from your office showing those changes. Around this time,
Mr. Bangle entered into discussions and consummated an agreement to sell H20's lights to
purchase the assets of Eagle Water Company to SUEZ (the "2nd Agreement to Sell").
Your client was aware, and incidentally copied you personally, Ms. McLain, of notice of
the 2nd Agreement to Sell by November 19, 2018, when the Mayor sent an email to Mr. Bangle
that read as follows:
Norm, from the reports and calls for concerns we have been
getting, it appears that you have entered into an agreement with
SUEZ for the purchase of Eagle Water Company. lamdisappointed
that you did not stop by last week as promised to discuss our
dialogue. Why would you abandon our agreement is troubling, even
more so that you would implore so much of time and commitment
from the public utility while all the while negotiating elsewhere.
We're getting calls regarding your "deal" with SUEZ.
Although we agreed verbally to a confidentiality and non-
circumvention agreement, a signed copy was never sent back to the
City of Eagle and therefore, no legal agreement will be honored.
Should the public request information regarding these agreements,
we are obligated by law to openly share our discussions between the
City of Eagle and your company.
Indeed, earlier on November 5, 2018, Mayor Ridgeway forwarded an email from Robin1.
Collins with an article regarding SUEZ's filing for intent to acquire Eagle Water for $10 million
to Mr. Bangle, so the City had the information about the 2nd Agreement to Sell by that date as well.
Thus, it was surprising that despite having knowledge of two separate agreements to sell
the assets of Eagle Water Company, the City has not attempted to exercise an alleged right of first
refusal until your letter of January 14, 2019. It is especially surprising given that you seem
personally to have played a role in the discussions from January of 2018 forward, wherein it was
clear that the I" Agreement to Sell the assets of Eagle Water Company to H2O was already in
place.
Further, in reviewing the documentation of the communications between H2O and the City,
for example, Mayor Ridgeway appears to have misrepresented aspects of those communications.
In a blog on December 21, 2018, entitled "Eagle Mayor Stan Ridgeway's blog," he indicates that
"the confidential memorandum of understanding was never signed by either party." Yet, an email
was sent on June 13, 2018, by City employee "Kellie Rekow" to Mr. Bangle that indicated "City
Council approved the Mayor's signature on the Confidential MOU last night. Do you happen to
be in town fight now for your signature or would you prefer we send to you." Mayor Ridgeway
also indicated in that blog apparent surprise when two representatives of Avimor showed up in a
CityEagle_00038
Cherese D. McLain
January 29, 2019
Page 4
meeting with Mr. Bangle. However, I have reviewed an email dated July 17, 2018 to Mr. Bangle
from Mayor Ridgeway where he is asking Mr. Bangle about a call Mayor Ridgeway received from
a local developer. Mr. Bangle insists that this email was in fact an Avimor representative and that
the inquiry was made first to the Mayor, not to Mr. Bangle.
It is very clear that knowledge of the fact of a sale, even without knowledge of the specific
terms of the purported sale agreement, is enough to trigger the duty on the part of the party holding
the right of first refusal to take action. See e.g., Bruns v. Walters, 28 P.3d 646 (Or. App. 2001)
(holding that as soon as a party with right of first refusal learned that the property subject to the
tight of first refusal had been sold to a third party without notice being given to the tight of refusal
holder, the time began to run for purposes of the doctrine of laches, and that notice of the precise
teinis of the sale transaction was not necessary). In that particular case, the court held that too
much time had passed and delay had resulted in substantial prejudice to the defendants:
Plaintiffs delay also resulted in substantial prejudice to
defendants. "The harm or prejudice to a defendant necessary to the
laches defense can be ... a disadvantageous change in position," .. .,'making it inequitable to afford the relief sought against a party
asserting laches."
Id. (citations omitted).
Further, Idaho has specifically recognized the application of the doctrine of waiver in the
context of a right of first refusal. in the case of Meridian Bowling Lanes, Inc. v. Meridian Athletic
Association, Inc., 105 Idaho 509, 670 P.2d 1294 (1983), the court reversed summary judgment and
remanded to the district court for a trial on whether a waiver of a right of first refusal had occurred,
saying specifically:
Regardless of whether the right of first refusal was limited
to a single bona fide offer or was continuing in nature, the question
remains whether MBL waived its right when it did not accept the
first offer communicated to it by MAA.
"A waiver is the intentional relinquishment of a
known tight. It is a voluntary act and implies
election by a party to dispense with something of
value or to forego some right or advantage which he
might at his option have demanded and insisted
upon.
After an examination of the record, we conclude that
whether there was an expressed or implied waiver is clearly
disputed.
CityEagle_00039
Cherese D. McLain
January 29, 2019
Page 5
"In order to establish a[n implied] waiver the
intention to waive must clearly appear, and a waiver
... will not be presumed or implied contrary to the
intention of the party whose fights would be
injuriously affected thereby unless by his conduct the
opposite party was misled to his prejudice into the
honest belief that such waiver was intended or
consented to."
Id. at 512, 670 P.2d at 1297 (citations omitted).3
For purposes of both waiver and estoppel, the City has failed for some time to assert this
recently discovered alleged tight of first refusal. The City has known for years of the attempts to
sell Eagle Water Company, but did nothing. The City has been offered Eagle Water Company,
but did not seek to purchase. The City has known for over a year of the I" Agreement to Sell to
H2O, but simply attempted to negotiate a wholesale distribution agreement from H2O. The City
has known since November 2018 of the 2" d Agreement to Sell to SUEZ, but has done nothing to
assert its claimed tight of first refusal. Meanwhile, SUEZ has expended in reasonable reliance
upon the City's silence (and to SUEZ's substantial detriment and prejudice) considerable
resources, funds and time in pursing the 2nd Agreement to Sell to SUEZ.
This is exactly the sort of substantial prejudice that demonstrates any alleged right of first
refusal has been waived by the City, or the City is barred by the doctrines of laches or estoppel
from now asserting such a fight. In addition, the Idaho Supreme Court over recent years has been
very particular about the terms of a contract involving the conveyance of real property pursuant to
the statute of frauds being set forth in writing. Particular to the point that a contract that fails the
test is completely unenforceable. The statute of frauds provides in Idaho Code § 9-503 that, "[n]o
estate or interest in real property... can be created, granted, assigned, surrendered, or declared,
otherwise than by operation of law, or a conveyance or other instrument in writing, subscribed by
the party creating, granting, assigning, surrendering or declaring the same, or by his lawful agent
thereunto authorized by writing." The assets of Eagle Water Company include several water
tights as well as underground pipes with easements. Idaho Code § 55-101 provides that, "Real
property or real estate consists of: 1. Lands, possessory rights to land, ditch and water rights, and
mining claims, both lode and placer. 2. That which is affixed to land. 3. That which is appurtenant
to land." See also Fulton v. Duro, 107 Idaho 240, 243, 687 P.2d 1367, 1370 (Ct. App. 1984), aff d,
3 Accord Grover v. Idaho Pub. Utilities Coininn, 83 Idaho 351, 357, 364 P.2d 167, 171 (1961)("'A waiver is the
intentional relinquishment. of a known right. It. is a voluntary act and implies election by a party to dispense with
something of value or to forego some right. or advantage which he might at his option have demanded and insisted
upon'. . . . In addition to express waiver, this court has recognized a doctrine of implied waiver, under which are
consistently applied principles of estoppel. 'The dividing line between waivers implied from conduct and estoppels
is often shadowy as the two terms have come to be quite commonly used interchangeably; * * * when the term waiver
is so used the elements of estoppel almost invariably appear, and it. is employed to designate not a pure or express
waiver, but one which has conic into the existence of effectiveness through the application of the principles underlying
estoppels."")(citafions omitted).
CityEagle_00040
Cherese D. McLain
January 29, 2019
Page 6
108 Idaho 392, 700 P.2d 14 (1985)("In Idaho, real property includes land, possessory rights to
land, and that which is appurtenant to land.").
Idaho courts have fleshed out the requirement under the statute of frauds that all material
terms must be in writing, stating that, "[t]he writing must contain all 'conditions, terms[ ] and
descriptions necessary to constitute the contract,' including a description of the property to be
sold... The property description must be specific enough, either by its own tei►iis or by reference,
to ascertain the quantity, identity, or boundaries of the property without resorting to parol
evidence... In other words, the description 'must adequately describe the property so that it is
possible for someone to identify 'exactly' what property the seller is conveying to the
buyer."' Callies v. O'Neal, 147 Idaho 841, 847-48, 216 P.3d 130, 136-37 (2009) (quoting
Lexington Heights Dev. L.L.C. v. Crandlemire, 140 Idaho 276, 280, 92 P.3d 526, 532 (2004); Ray
v. Erasure, 146 Idaho 625, 629, 200 P.3d 1 174, 1178 (2009)). And, Idaho law has been applied
to require that an alleged right of first refusal for a transfer of real estate be in writing as the same
is subject to the statute of frauds. See e.g., Nicholson v. Coeur D Alene Placer Mining Corp.,
161 Idaho 877, 392 P.3d 1218 (2017)(Upholding district court's grant of summary judgment
against enforcement of oral right of first refusal where district court applied statute of frauds and
absence of legal description, and appellate court upheld decision on grounds that legal description
was too vague to be enforceable). See also Magnolia Enterprises, LLC v. Schons, No. CV-08-
376NBLW, 2009 WL 1658022 (D. Idaho June 11, 2009)(unpubl i shed opinion)(applying Idaho
cases to reason that because statute of frauds applies to option in Idaho, it would also apply to tight
of first refusal).
Thus, the alleged agreement for a right of first refusal would seem to fail as not having a
sufficient legal description of the water tights and other real property interests in order to satisfy
the statue of frauds.
But even if a valid and enforceable right existed in 2008,4 with respect to waiver of or
laches against exercise of the alleged fight of first refusal, the Mayor of Eagle, during the City
Council meeting that occurred on Tuesday, January 22, 2019, publicly indicated that the "Intertie
Agreement has been in the files for quite some time and was never acted on. Unfortunately, there
is a five-year statute of limitations of payment of $ 10,000 a month so the roughly $1.2 million that
Eagle Water Company was benefiting from the intertie never got paid and we will never see any
of that money." The Mayor then goes on to describe how without knowing this agreement was
out there, he entered into negotiations with Mr. Bangle and that he understood Mr. Bangle got a
fight of first refusal or some agreement with the owner of Eagle Water Company to be able to sell
Eagle Water and that the previous Mayor of Eagle had done this in 2013. It goes on to describe in
those minutes how, in 2015, Mayor Ridgeway learned of discussions for sale of Eagle Water as
the Council President.' Again, providing evidence of a waiver of any alleged right of first refusal
due to the failure to act upon the same.
A point which is by no means conceded.
Further, in those minutes, the Mayor erroneously describes the agreement being negotiated with Mr. Bangle and H2O
as an agreement for the City of Eagle to purchase Eagle Water Company. This was not. the case, as the MOU was
CityEagle_00041
Cherese D. McLain
January 29, 2019
Page 7
As has been made clear above, SUEZ does not afford any validity to the alleged fight of
first refusal. SUEZ stands ready to protect its rights under the 2"d Agreement to Sell to SUEZ.
Accordingly, SUEZ hereby demands adequate written assurance from the City that the City does
not claim a valid fight of first refusal. SUEZ believes that fourteen (14) days from the date of this
letter should be more than enough time. In the absence of unequivocal written assurance as
requested, SUEZ will take appropriate measure to investigate and clear up this delayed claim of
an alleged fight of first refusal and the propriety of the conduct of all persons involved in making
the same. SUEZ will seek to recover all cost and attorneys' fees incurred in doing so, as well as
any damages suffered by those actions.
In addition to requiting timely written assurance, demand is also hereby made that a
litigation hold be commenced immediately on any and all documentation relating to this matter.
More specifics of this hold are described in Exhibit A to this letter. The preservation of documents,
both physical and electronic, relevant to a potential lawsuit is required by law. The failure to
properly preserve such evidence carries extremely stiff penalties should the court determine that a
party has not met its obligations, and sanctions for such spoliation of evidence can include
deteiiiiinations against a party on the merits of the case.
Very truly T, ,you ~s—
orfias
r.
Dvorak
cc: Client
TED/SW
1451,10 19-- 1. doex [30-1741
simply an agreement for wholesale distribution of the water, water that H2O was to provide using Eagle Water
Company's assets.
CityEagle_00042
Cherese D. McLain
January 29, 2019
Page 8
EXHIBIT A
LITIGATION HOLD DEMAND
Please be advised that electronically stored information is an important and irreplaceable
source of discovery and/or evidence in the above-entitled dispute. The law requires preservation
of all information from your computer systems and those of your agents, managers, employees,
etc., as well as removable electronic media and other locations relating to the subject matter of the
dispute. This includes, but is not limited to, email, text messages, and other electronic
communication, contracts, draft contracts, sub-contracts, plans, bids, word processing documents,
spreadsheets, databases, calendars, telephone logs, contact manager information, internet usage
files, and network access information.
You should also preserve the following platforms in your possession or any third party
under your control (such as an employee or outside vendor under contract): databases, networks,
computer systems, including legacy systems (hardware and software), servers, archives, backup
or disaster recovery systems, tapes, discs, drives, cartridges and other storage media, laptops,
personal computers, internet data, personal digital assistants, tablets, handheld wireless devices,
mobile or smart telephones, paging devices, emails and text messages, and audio systems
(including voicemail).
You must take every reasonable step to preserve this information until further notice.
Failure to do so could result in extreme penalties against you. Such penalties include a court
deeming your failure to retain and take efforts to retain such information as proof that the missing
information would have been damaging to you.
1. PRESERVATION OBLIGATIONS
The laws and rules prohibiting destruction of evidence apply to electronically stored
information in the same manner that they apply to other evidence. Due to its format, electronic
information is easily deleted, modified or corrupted. Accordingly, you must take every reasonable
step to preserve this information until the final resolution of this matter.
This includes, but is not limited to, an obligation to:
a) Discontinue all data destruction and backup tape recycling policies;
b) Preserve and not dispose of relevant hardware unless an exact replica of the file (a
mirror image) is made;
C) Preserve and not destroy passwords, decryption procedures (and accompanying
software), network access codes, fD names, manuals, tutorials, written instructions,
decompression or reconstruction software;
CityEagle_00043
Cherese D. McLain
January 29, 2019
Page 9
d) Maintain all other pertinent infoi ination and tools necessary to access, view, and/or
reconstruct all required or potentially relevant electronic data.
11. DESCRIPTION OF DATA SOUGHT
This dispute requires preservation of all information from your computer systems,
removable electronic media and other locations relating to the subject matter of the dispute. This
includes, but is not limited to, email, text message and other electronic communication, word
processing documents, spreadsheets, databases, calendars, telephone logs, personal notes, minutes
of meetings, and other such items.
A. Electronic Files. You have an obligation to preserve all digital or analog, electronic
files in electronic fofniat, regardless of whether hard copies of the information exist.
This includes preserving:
1. Active data (i.e., data immediately and easily accessible on the client's
systems today);
2. Archived data (i.e., data residing on backup servers or other storage media);
I (i.e.,3. Deleted data (i data that has been deleted from a computer hard drive or
server but is recoverable through computer forensic techniques), and
4. Legacy data (i.e., data created on old or obsolete hardware or software).
5. You must preserve active, archived and legacy data including but not
limited to:
a. Word-processing files, including drafts and revisions;
b. Spreadsheets, including drafts and revisions;
C. Databases;
d. CAD (computer-aided design) files, including drafts and revisions;
e. Presentation data or slide shows produced by presentation software
(such as Microsoft PowerPoint);
f. Graphs, charts and other data produced by project management
software or presentation software (such as Microsoft Project or
Microsoft Powerpoint);
CityEagle_00044
Cherese D. McLain
January 29, 2019
Page 10
9.Animations, images, audio, video and audiovisual recordings, MP3
players, and voicemail files;
h. Data generated by calendaring, task management and personal
information management (PIM) software (such as Microsoft
Outlook or Lotus Notes);
i. Data created with the use of personal data assistants (PDAs), smart
phones or tablets, such as iPad, iPhone, Android, or other Windows
CE-based or similar devices;
i Data created with the use of document management software; and
k. Data created with the use of paper and electronic mail logging and
routing software.
6. You must preserve media used by your computers including but not limited
to:
a. Magnetic, optical or other storage media, including the hard drives
or thumb drives used by you;
b. Backup media (i.e., other hard drives, backup tapes, thumb drives,
Jaz cartridges, CD-ROMs) and the software necessary to reconstruct
the documents;
C. Archived media (you should retain a mirror image copy of any
media no longer in service but used during the time periods relevant
to the dispute).
B. Hardware. You have an obligation to preserve all electronic processing
systems, even if they are replaced. This includes computer servers, stand-alone
personal computers, hard drives, laptops, PDAs, and other electronic processing
devices. You should retain copies of any hardware no longer in service but used
during the time period relevant to this dispute.
C. Ernails. You have an obligation to preserve all potentially relevant internal and
external emails that were sent or received. Email must be preserved in electronic
format, regardless of whether hard copies of the information exist.
D. Internet Web Pages. You have an obligation to preserve all records of any
webpages that you have or have had during the time period relevant to this dispute.
CityEagle_00045
Cherese D. McLain
January 29, 2019
Page 11
E. Supporting Information. You must preserve all supporting information relating,
to the requested electronic data and/or media including:
Codebooks, keys, data dictionaries, diagrams, handbooks, or other
supporting documents that aid in reading or interpreting database, media,
email, hardware, software, or activity log information.
III. DESCRIPTION OF DOCUMENTS AND MEDIA THAT SHOULD BE
PRESERVED
A. Data Preservation. You should immediately preserve all data and information
about the data (i.e., backup activity logs and document retention policies) relating
to documents maintained in the ordinary course of business relating to the subject
matter of this dispute.
B. Data Storage Devices
I Online Data Storage. If you use online storage and/or direct access storage
devices, they must immediately cease modifying or deleting any electronic
data unless a computer forensic expert makes a mirror image of the
electronic file, follows proper preservation protocols for assuring the
accuracy of the file (i.e., chain of custody), and makes the file available for
potential litigation.
2. OfJ7ine Data Storage. Offline data storage includes, but is not limited to,
backup and archival media, floppy diskettes, magnetic, magneto-optical,
and/or optical tapes and cartridges, DVDs, CD-ROMs, thumb drives and
other removable media. You should immediately suspend all activity that
might result in destruction or modification of all of the data stored on any
offline media. This request includes, but is not limited to, media used to
store data from personal computers, laptops, mainframe computers, and
servers.
3. Data Storage Device Replacement. If you replace any electronic data
storage devices, you may not dispose of the storage devices.
IV. PRESERVATION COMPLIANCE
A. Activity Log. In order to show preservation compliance, you should maintain a
log, documenting all alterations or deletions made to any electronic data storage
device or any electronic data processing, system. The log should include changes
CityEagle_00046
Cherese D. McLain
January 29, 2019
Page 12
and deletions made by supervisors, employees, contractors, vendors, or any other
third parties.
B. Chain of Custody. For each piece of media that you preserve, you must document
a complete chain of custody. A proper chain of custody will ensure that no material
changes, alterations or modifications were made while the evidence was handled.
Chain of custody documentation must indicate where the media has been, whose
possession it has been in, and the reason for that possession.
C. Electronic Data Created after this Letter. For any electronic data created after
this letter or for any electronic processing systems used after this letter, you must
take the proper steps to avoid destroying, potentially relevant evidence. This
includes following the above preservation protocols.
Compliance with your preservation obligations includes forwarding a copy of this letter to
all individuals within the City or vendor organizations that are responsible for any of the items
referred to in this letter and preserving documentation of the timing of your act of doing so. This
includes City employees and officials who may maintain such infoi ination in their private systems,
such as texts on a cell phone. If this correspondence is in any respect unclear, please write to me
immediately so that we may clarify any miscommunication.
CityEagle_00047
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4"
CityEagle_00049
From: Molly O" leary
To: Susan E. Buxton
Subject: 1076/16 - EWCO/Intertie -- RE: Eagle Water Intertie Agreement
Date: Wednesday, July 16, 2008 5:00:38 PM
Thanks, Susan.
Eagle Water needs to submit a status report to the PUC tomorrow, as I will be gone 7/18 (the
deadline).
I believe Vern & Robert are in regular contact, re: completing the Intertie and working w/
DEQ to get the moratorium lifted; however, I may need to talk to Vern tomorrow to firm up
the status from his perspective and hereby request permission in advance to contact him if
necessary.
Best Regards,
dolly O Eeary
Richardson & O'Leary PLLC
515 N. 27th Street, 83702
P.O. Box 7218, 83707
Boise, Idaho
Voice: 208.938.7900
Facsimile: 208.938.7904
Information contained in this electronic message and in any attachments hereto
may contain information that is confidential, protected by the attorney/ client
privilege and/or attorney work product doctrine. This email is intended only for
the use of the individual or entity named above. Inadvertent disclosure of the
contents of this email or its attachments to unintended recipients is not intended
to and does not constitute a waiver of the attorney/ client privilege and/or attorney
work product doctrine. This transmission is further covered by the Electronic
Communication Privacy Act, 18 U.S.C. §§ 2510-2521.
If you have received this email in error, immediately notify the sender of the
erroneous receipt and destroy this email and any attachments of the same either
electronic or printed. Any disclosure, dissemination, distribution, copying or use
of the contents or information received in error is strictly prohibited.
Thank you.
From: Susan E. Buxton [ma i Ito: [e-mail]]
Sent: Wednesday, July 16, 2008 2:55 PM
To: Molly O'leary
Cc: Cheryl Bruehl
CityEagle_00050
Subject: FW: Eagle Water Intertie Agreement
Molly:
Here is a scanned copy of the signed Intertie Agreement for your records.
Best regards,
Susan
S "444, li E. 3( wyxon/
Moore Smith Buxton & Turcke, Chartered
950 W. Bannock Street, Suite 520
Boise, Idaho 83702
Phone: [phone]
Fax: [phone]
[e-mail]
CONFIDENTIALITY NOTICE: This transmission is intended only for the use of the individual(s) named as recipients. It may contain
information that is privileged, confidential and/or protected from disclosure under applicable law including, but not limited to, the attorney
client privilege and/or work product doctrine. If you are not the intended recipient of this transmission, please notify the sender
immediately by telephone. Do not deliver, distribute or copy this transmission, disclose its contents, or take any action in reliance on the
information it contains. This e-mail is not intended for release to opposing parties, opposing counsel or any other third person or entity.
Copies of this e-mail should not be kept in your regular files. If you print a copy of this e-mail, place it in a separate file labeled "Attorney-
Client Privilege". Do not produce a copy of this e-mail in discovery.
!S1G:487e6050288431503432374!=00
CityEagle_00051
From: Susan E. Buxton
To: Molly O" leary
Cc: Cheryl Bruehl
Subject: FW: Eagle Water Intertie Agreement
Date: Wednesday, July 16, 2008 2:55:39 PM
Attachments: 07-12-08 Eagle Water Co. intertie aareement.tif
Molly:
Here is a scanned copy of the signed Intertie Agreement for your records.
Best regards,
Susan
S "444, li E. 3( wyxon/
Moore Smith Buxton & Turcke, Chartered
950 W. Bannock Street, Suite 520
Boise, Idaho 83702
Phone: [phone]
Fax: [phone]
[e-mail]
CONFIDENTIALITY NOTICE: This transmission is intended only for the use of the individual(s) named as recipients. It may contain
information that is privileged, confidential and/or protected from disclosure under applicable law including, but not limited to, the attorney
client privilege and/or work product doctrine. If you are not the intended recipient of this transmission, please notify the sender
immediately by telephone. Do not deliver, distribute or copy this transmission, disclose its contents, or take any action in reliance on the
information it contains. This e-mail is not intended for release to opposing parties, opposing counsel or any other third person or entity.
Copies of this e-mail should not be kept in your regular files. If you print a copy of this e-mail, place it in a separate file labeled "Attorney-
Client Privilege". Do not produce a copy of this e-mail in discovery.
CityEagle_00052
INTERTIE AGREEMENT
This Intertie Agreement ("Agreement"), dated as of July 12, 2008, is between Eagle
Water Company, Inc., an Idaho corporation ("EWC") and the City of Eagle, Idaho, an Idaho
municipal corporation ("City").
Recitals
A. City recently constructed and owns an approximate one million gallon water
storage tank (the "Storage Tank").
B. EWC owns and conducts a water utility supply and distribution business ("Water
System") in and around Eagle, Idaho. EWC has water distribution lines in the
vicinity of the Storage Tank and desires to temporarily connect such distribution
lines to the Storage Tank in order to satisfy certain regulatory requirements for
fire protection service to its customers.
C. EWC intends to use the Intertie as a temporary measure until it completes a new
well and DEQ determines the Intertie is no longer needed to meet regulatory
requirements.
The parties agree as follows:
Agreement
1. Water Storage Connection. City hereby agrees that immediately upon the execution of
this Agreement, City will allow EWC to construct, at EWC's sole expense, a connection and two
manually-controlled gate valves with a meter spool for a future meter ("Intertie") between
EWC's existing main distribution lines and the Storage Tank based upon engineering plans
previously submitted by the City to and approved by the Idaho Department of Environmental
Quality ("DEQ"). City shall have the right to approve the location and manner of constructing
such Intertie and shall do so no later than 24 hours after EWC identifies its preferred location for
the intertie. EWC shall ensure that all work is performed in a workmanlike manner and in
compliance with all applicable codes and regulations. City makes no representations or
warranties, express or implied, concerning the Intertie or any benefits to be derived by EWC
therefrom. The City shall own the Intertie infrastructure save and except for the 12-inch Intertie
tee and the attached 12-inch gate valve.
2. Limitations On Use. The parties agree that the sole purpose of the Intertie is to provide
redundant fire flow protection capacity to EWC and is not intended to be a source of water for
EWC's normal operating requirements.
3. Payment. In consideration of the City entering into this Agreement and allowing EWC
to connect to the Storage Tank, EWC agrees to compensate the City as follows:
CITY OF EAGLE — EAGLE WATER COMPANY
rNTERTIE AGREEMENT - I
CityEagle-00053
3. 1. Lease of Water Rights. EWC agrees to grant the City the permanent Right of First
Refusal to lease up to ten (10) cubic feet of water per second of certain municipal water
rights currently owned by EWC, provided such water rights are not necessary to
maintain the integrity of EWC's Water System, including compliance with all regulatory
requirements and EWC engineering plans. This Right of First Refusal shall be permanent
and shall survive any termination or other modification of this Agreement, save and
except for a termination by the City other than for a non-cured default by EWC per
Section 7, below.
3.2. Cash Payment. In addition, EWC shall pay City a fee for the connection to the
Storage Tank of $10,000.00 per month commencing on the date the interconnection is
completed and approved by the Idaho Department of Environmental Quality (DEQ).
4. Duration. This Agreement shall commence upon acceptance by the City of Eagle and
completion of the Intertie that is the subject of this Agreement ("Commencement"), and the
Intertie Lease shall continue month—to-month so long as the Intertie connection is needed by
EWC in its sole discretion. If the Intertie continues past 18 months from the Commencement
date, the Intertie Lease Cash Payment shall increase five percent (5%) and every 18 months
thereafter. The parties may mutually agree, in writing, to extend or modify this Agreement.
5. Moratorium. At EWC's reasonable request, City agrees to cooperate with EWC to
assist EWC in its efforts to satisfy the conditions set forth in the current DEQ Consent Order
establishing a moratorium on new connections in EWC's service territory and to cause the
moratorium to be terminated. This Section 5 shall not require City to expend any funds or take
any actions that it is not lawfully permitted to take. EWC shall reimburse the City for any costs
incurred by the City related to this Section 5, provided the same have been pre-approved by
EWC in writing.
6. Right of First Refusal. If EWC determines to sell or convey all or any part of its Water
System, which shall be deemed to include, but not be limited to, water rights, wells and other
infrastructure, and receives a bona fide offer for this Water System, before making any
agreement to sell all or any portion of the Water System, EWC shall give notice to City stating
EWC's desire to sell and the amount and terms of such offer in detail. City shall have the
exclusive right for 30 days after receiving such notice to provide Notice of Intent to Purchase the
Water System or portion thereof to which such bona fide offer refers at the amount of said offer;
provided, that if the third party offer is for a consideration other than cash, the City shall have the
right to pay the fair market value of such consideration in cash. Upon delivery of the Notice of
Intent to Purchase, the City shall hold a revenue bond election for the purpose of securing voter
approval of the purchase at the next available election date and/or utilize City funds directly
available in a capital account, enterprise fund, general fund, or other readily available City fund
or account to complete the purchase. For the purpose of this Section 6, "Next Available Election
Date" shall mean the earliest possible election date based on the time required by law for legal
notice of such an election and for the conduct of any required public hearings. If the bond is
approved at said election, the City shall proceed in good faith to secure bonds to pay the
purchase price ("Finance") as expeditiously as possible. Closing of the transaction between the
City and EWC that is the subject of this Section 6 shall not extend more than 180 days from the
date of the revenue bond election, or if the election is challenged in a legal proceeding, the
CITY OF EAGLE — EAGLE WATER COMPANY
fNTERTIE AGREEMENT - 2
CityEaqle 00054
Closing shall occur no more than 90 days after final resolution of any such legal challenge. In
the event that a revenue bond election is not required because the City has the necessary funds
directly available in a capital account, enterprise fund, general fund, or other readily available
City fund or account to finance the transaction in lieu of holding a revenue bond election, then
the Closing of the transaction between the City and EWC that is the subject of this Section 6
shall occur no later than 60 days after the City provides EWC with its Notice of Intent to
Purchase. For purposes of this Section 6, this Right of First Refusal applies solely to an "EWC
Change of Control Transaction", which means one or a series of transactions in which (i) all or
substantially all of EWC's Water System is sold to a third party, or (ii) there is a stock sale,
merger, consolidation or similar transaction as a result of which said third party owns a majority
of the outstanding voting and outstanding capital stock of EWC or any successor owner of EWC.
This Right of First Refusal shall be permanent and shall survive any termination or other
modification of this Agreement, save and except for a termination by the City other than for a
non-cured default by EWC per Section 7, below.
7. Termination. EWC or the City shall have the right to terminate the Intertie connection
upon 30 days prior written notice to the other party. In the event the City terminates the Intertie
connection for any reason other than a non-cured default by EWC under Section 10 of this
Agreement, then the Rights of First Refusal in Sections 3 and 6 of this Agreement shall likewise
terminate.
8. Authority. Each individual executing this Agreement below on behalf of a party
represents and warrants to the other party that the execution, delivery and performance of this
Agreement has been duly authorized by all necessary corporate or municipal action by such
party, that such individual is duly authorized to execute and deliver this Agreement on behalf of
such party, and that this Agreement is a legal and valid obligation of such party, enforceable
against such party in accordance with its terms.
9. Force Majeure. Except for obligations to make payment, nonperformance of either
party shall be excused to the extent that performance is rendered impossible by strike, fire, flood,
governmental acts, orders or restrictions, or any other reason where failure to perform is beyond
the control and not caused by the negligence of the non-performing party.
10. Default and Remedies.
10.1. Default. Each of the following events shall constitute an event of default:
10.1.1. EWC fails to make, on or before the date which it is due, any payment to
be made to the City pursuant to the provisions of this Agreement; or
10.1.2. Either party materially breaches this Agreement.
10.2. Remedies. If any default shall occur, the non-defaulting party shall give the
defaulting party notice of default. Such default must be cured within fifteen (15) days of the
Notice of Default unless such default is curable but cannot be reasonably cured within ten (10)
days after giving the Notice of Default and the defaulting party commences within such ten (10)
day period to cure such default and prosecutes the same to conclusion with reasonable diligence.
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 3
CityEagle-00055
The foregoing remedy shall be in addition to and shall not exclude any other remedy available to
the parties under applicable law.
1 1. Attorneys Fees. In the event an arbitration, suit or action is brought by any party under
this Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the
prevailing party shall be entitled to reasonable attorney fees to be fixed by the arbitrator, or court
of applicable jurisdiction.
12. Notices. All notices or other communications required or permitted hereunder, including
notices to Mortgagees, shall, unless otherwise provided herein, be in writing, shall be personally
delivered, delivered by reputable overnight courier, or sent by registered or certified mail, return
receipt requested, and postage prepaid, addressed to the parties at the following addresses:
if to the City: City of Eagle
Office of the City Clerk
660 East Civic Lane
Eagle, ID 83616
If to Eagle Water: Eagle Water Company, Inc.
172 West State Street
Eagle, ID 83616
With a copy to: Molly O'Leary
Richardson & O'Leary, PLLC
P.O. Box 7218
Boise, Idaho 83707
Notices personally delivered shall be deemed given the day so delivered. Notices given by
overnight courier shall be deemed given on the first business day following the mailing date.
Notices mailed as provided herein shall be deemed given on the third business day following the
mailing date. Notice of change of address shall be given by written notice in a manner detailed
in this Section 12.
13. Governing Law. The parties intend that this contract shall be governed by and construed
in accordance with the laws of the State of Idaho, without regard to choice of law rules.
14. Counterparts. This Agreement may be signed in counterparts, each of which shall
constitute part of the original document.
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 4
CityEagle_00056
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
EWC: EAGLE WATER COMPANY,
City:
an Idaho corporation
Robert V. DeShazo, Jr., 'Jr. sident
CITY OF EAGLE, IDAHO
aho municipal corporation
By:
X111*66 Phi Bandy, Mayor
16.
-4-
Q A- ' 0% ATTEST:
"* a
4~By
Sharon K. Bergmann, C.NyClerk~~~
CITY OF EAGLE WATER COMPANY
INTERTIE AGREEMENT - 5
—EAGLE
CityEagle-00057
From: Cheryl Bruehl
To: "[e-mail]"
Cc: Susan E. Buxton
Subject: FW: Eagle Water Intertie Agreement
Date: Thursday, July 17, 2008 10:35:21 AM
Attachments: 07-12-08 Eagle Water Co. intertie aareement.tif
Mr. Mason:
As we discussed, attached is the signed intertie agreement. Please do not
hesitate to contact us if you need further information. Thank you.
.~. Ewe, pL s
Legal Assistant to Susan E. Buxton
and Stephanie J. Bonney
Moore Smith Buxton and Turcke, Chartered
950 W. Bannock Street, Suite 520
Boise, ID 83702
Telephone: [phone] (Direct Line)
Facsimile [phone]
Confidentiality Notice: This transmission is intended only for the use of the individual(s) named as recipients. It
may contain information that is privileged, confidential and/or protected from disclosure under applicable law
including, but not limited to, the attorney client privilege and/or work product doctrine. If you are not the intended
recipient of this transmission, please notify the sender immediately by telephone. Do not deliver, distribute or copy
this transmission, disclose its contents, or take any action in reliance on the information it contains.
CityEagle_00058
INTERTIE AGREEMENT
This Intertie Agreement ("Agreement"), dated as of July 12, 2008, is between Eagle
Water Company, Inc., an Idaho corporation ("EWC") and the City of Eagle, Idaho, an Idaho
municipal corporation ("City").
Recitals
A. City recently constructed and owns an approximate one million gallon water
storage tank (the "Storage Tank").
B. EWC owns and conducts a water utility supply and distribution business ("Water
System") in and around Eagle, Idaho. EWC has water distribution lines in the
vicinity of the Storage Tank and desires to temporarily connect such distribution
lines to the Storage Tank in order to satisfy certain regulatory requirements for
fire protection service to its customers.
C. EWC intends to use the Intertie as a temporary measure until it completes a new
well and DEQ determines the Intertie is no longer needed to meet regulatory
requirements.
The parties agree as follows:
Agreement
1. Water Storage Connection. City hereby agrees that immediately upon the execution of
this Agreement, City will allow EWC to construct, at EWC's sole expense, a connection and two
manually-controlled gate valves with a meter spool for a future meter ("Intertie") between
EWC's existing main distribution lines and the Storage Tank based upon engineering plans
previously submitted by the City to and approved by the Idaho Department of Environmental
Quality ("DEQ"). City shall have the right to approve the location and manner of constructing
such Intertie and shall do so no later than 24 hours after EWC identifies its preferred location for
the intertie. EWC shall ensure that all work is performed in a workmanlike manner and in
compliance with all applicable codes and regulations. City makes no representations or
warranties, express or implied, concerning the Intertie or any benefits to be derived by EWC
therefrom. The City shall own the Intertie infrastructure save and except for the 12-inch Intertie
tee and the attached 12-inch gate valve.
2. Limitations On Use. The parties agree that the sole purpose of the Intertie is to provide
redundant fire flow protection capacity to EWC and is not intended to be a source of water for
EWC's normal operating requirements.
3. Payment. In consideration of the City entering into this Agreement and allowing EWC
to connect to the Storage Tank, EWC agrees to compensate the City as follows:
CITY OF EAGLE — EAGLE WATER COMPANY
rNTERTIE AGREEMENT - I
CityEagle-00059
3. 1. Lease of Water Rights. EWC agrees to grant the City the permanent Right of First
Refusal to lease up to ten (10) cubic feet of water per second of certain municipal water
rights currently owned by EWC, provided such water rights are not necessary to
maintain the integrity of EWC's Water System, including compliance with all regulatory
requirements and EWC engineering plans. This Right of First Refusal shall be permanent
and shall survive any termination or other modification of this Agreement, save and
except for a termination by the City other than for a non-cured default by EWC per
Section 7, below.
3.2. Cash Payment. In addition, EWC shall pay City a fee for the connection to the
Storage Tank of $10,000.00 per month commencing on the date the interconnection is
completed and approved by the Idaho Department of Environmental Quality (DEQ).
4. Duration. This Agreement shall commence upon acceptance by the City of Eagle and
completion of the Intertie that is the subject of this Agreement ("Commencement"), and the
Intertie Lease shall continue month—to-month so long as the Intertie connection is needed by
EWC in its sole discretion. If the Intertie continues past 18 months from the Commencement
date, the Intertie Lease Cash Payment shall increase five percent (5%) and every 18 months
thereafter. The parties may mutually agree, in writing, to extend or modify this Agreement.
5. Moratorium. At EWC's reasonable request, City agrees to cooperate with EWC to
assist EWC in its efforts to satisfy the conditions set forth in the current DEQ Consent Order
establishing a moratorium on new connections in EWC's service territory and to cause the
moratorium to be terminated. This Section 5 shall not require City to expend any funds or take
any actions that it is not lawfully permitted to take. EWC shall reimburse the City for any costs
incurred by the City related to this Section 5, provided the same have been pre-approved by
EWC in writing.
6. Right of First Refusal. If EWC determines to sell or convey all or any part of its Water
System, which shall be deemed to include, but not be limited to, water rights, wells and other
infrastructure, and receives a bona fide offer for this Water System, before making any
agreement to sell all or any portion of the Water System, EWC shall give notice to City stating
EWC's desire to sell and the amount and terms of such offer in detail. City shall have the
exclusive right for 30 days after receiving such notice to provide Notice of Intent to Purchase the
Water System or portion thereof to which such bona fide offer refers at the amount of said offer;
provided, that if the third party offer is for a consideration other than cash, the City shall have the
right to pay the fair market value of such consideration in cash. Upon delivery of the Notice of
Intent to Purchase, the City shall hold a revenue bond election for the purpose of securing voter
approval of the purchase at the next available election date and/or utilize City funds directly
available in a capital account, enterprise fund, general fund, or other readily available City fund
or account to complete the purchase. For the purpose of this Section 6, "Next Available Election
Date" shall mean the earliest possible election date based on the time required by law for legal
notice of such an election and for the conduct of any required public hearings. If the bond is
approved at said election, the City shall proceed in good faith to secure bonds to pay the
purchase price ("Finance") as expeditiously as possible. Closing of the transaction between the
City and EWC that is the subject of this Section 6 shall not extend more than 180 days from the
date of the revenue bond election, or if the election is challenged in a legal proceeding, the
CITY OF EAGLE — EAGLE WATER COMPANY
fNTERTIE AGREEMENT - 2
CityEaqle 00060
Closing shall occur no more than 90 days after final resolution of any such legal challenge. In
the event that a revenue bond election is not required because the City has the necessary funds
directly available in a capital account, enterprise fund, general fund, or other readily available
City fund or account to finance the transaction in lieu of holding a revenue bond election, then
the Closing of the transaction between the City and EWC that is the subject of this Section 6
shall occur no later than 60 days after the City provides EWC with its Notice of Intent to
Purchase. For purposes of this Section 6, this Right of First Refusal applies solely to an "EWC
Change of Control Transaction", which means one or a series of transactions in which (i) all or
substantially all of EWC's Water System is sold to a third party, or (ii) there is a stock sale,
merger, consolidation or similar transaction as a result of which said third party owns a majority
of the outstanding voting and outstanding capital stock of EWC or any successor owner of EWC.
This Right of First Refusal shall be permanent and shall survive any termination or other
modification of this Agreement, save and except for a termination by the City other than for a
non-cured default by EWC per Section 7, below.
7. Termination. EWC or the City shall have the right to terminate the Intertie connection
upon 30 days prior written notice to the other party. In the event the City terminates the Intertie
connection for any reason other than a non-cured default by EWC under Section 10 of this
Agreement, then the Rights of First Refusal in Sections 3 and 6 of this Agreement shall likewise
terminate.
8. Authority. Each individual executing this Agreement below on behalf of a party
represents and warrants to the other party that the execution, delivery and performance of this
Agreement has been duly authorized by all necessary corporate or municipal action by such
party, that such individual is duly authorized to execute and deliver this Agreement on behalf of
such party, and that this Agreement is a legal and valid obligation of such party, enforceable
against such party in accordance with its terms.
9. Force Majeure. Except for obligations to make payment, nonperformance of either
party shall be excused to the extent that performance is rendered impossible by strike, fire, flood,
governmental acts, orders or restrictions, or any other reason where failure to perform is beyond
the control and not caused by the negligence of the non-performing party.
10. Default and Remedies.
10.1. Default. Each of the following events shall constitute an event of default:
10.1.1. EWC fails to make, on or before the date which it is due, any payment to
be made to the City pursuant to the provisions of this Agreement; or
10.1.2. Either party materially breaches this Agreement.
10.2. Remedies. If any default shall occur, the non-defaulting party shall give the
defaulting party notice of default. Such default must be cured within fifteen (15) days of the
Notice of Default unless such default is curable but cannot be reasonably cured within ten (10)
days after giving the Notice of Default and the defaulting party commences within such ten (10)
day period to cure such default and prosecutes the same to conclusion with reasonable diligence.
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 3
CityEagle-00061
The foregoing remedy shall be in addition to and shall not exclude any other remedy available to
the parties under applicable law.
1 1. Attorneys Fees. In the event an arbitration, suit or action is brought by any party under
this Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the
prevailing party shall be entitled to reasonable attorney fees to be fixed by the arbitrator, or court
of applicable jurisdiction.
12. Notices. All notices or other communications required or permitted hereunder, including
notices to Mortgagees, shall, unless otherwise provided herein, be in writing, shall be personally
delivered, delivered by reputable overnight courier, or sent by registered or certified mail, return
receipt requested, and postage prepaid, addressed to the parties at the following addresses:
if to the City: City of Eagle
Office of the City Clerk
660 East Civic Lane
Eagle, ID 83616
If to Eagle Water: Eagle Water Company, Inc.
172 West State Street
Eagle, ID 83616
With a copy to: Molly O'Leary
Richardson & O'Leary, PLLC
P.O. Box 7218
Boise, Idaho 83707
Notices personally delivered shall be deemed given the day so delivered. Notices given by
overnight courier shall be deemed given on the first business day following the mailing date.
Notices mailed as provided herein shall be deemed given on the third business day following the
mailing date. Notice of change of address shall be given by written notice in a manner detailed
in this Section 12.
13. Governing Law. The parties intend that this contract shall be governed by and construed
in accordance with the laws of the State of Idaho, without regard to choice of law rules.
14. Counterparts. This Agreement may be signed in counterparts, each of which shall
constitute part of the original document.
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 4
CityEagle_00062
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
EWC: EAGLE WATER COMPANY,
City:
an Idaho corporation
Robert V. DeShazo, Jr., 'Jr. sident
CITY OF EAGLE, IDAHO
aho municipal corporation
By:
X111*66 Phi Bandy, Mayor
16.
-4-
Q A- ' 0% ATTEST:
"* a
4~By
Sharon K. Bergmann, C.NyClerk~~~
CITY OF EAGLE WATER COMPANY
INTERTIE AGREEMENT - 5
—EAGLE
CityEagle-00063
From:
Sent:
To:
Stan Ridgeway
Monday, November 2l28l811:lSAM'N LBang|e'
[hevese McLain
Eagle Water Company
From the reports and calls for concern vve have been getting, it appears that you have entered into an agreement with
Suez for the purchase Eagle Water Company. I am disappointed that you did not stop by last week as promised todiscuss our dialog. Why you would abandon our agreement is troubling, even more so that you would implore so muchof time and commitment from a public utility while all the while negotiating elsewhere.
We are getting calls regarding your "deal" with Suez. Although we agreed verbally toa confidentiality and non-
circumvention agreementadgne copy was never sent back to the City of Eagle and therefore, no legal agreement willbe honored. Should the public request information regarding these agreements, we are obligated by law to openly share
our discussions between the City of Eagle and your company. Stan R.
l
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 12/5/2017 2:32:52 PM
To: Norm Bangle ([e-mail]) [[e-mail]]
CC: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Ken Acuff
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDI BOHF23SPDLT)/cn=Recipients/cn=ffe671e6fcca4d78b3af41e029f42312-kacuff]
Subject: City of Eagle Water Rates
Attachments: Resolution 17-23 setting water rates, fee schedule attached.pdf; EWC Rates mailed to customers 2017.pdf
Hi Norm,
I'm attaching our current water rates and fees as approved by the City Council on 9-12-2017. We bill every month and
all of our meters are cubic feet.
I am also attaching a rate sheet for Eagle Water Company. I'm sure you already have that but at least you'll have them
both in one email should you need them at the same time. It's my understanding these rates were set on 3-25-1987.
We are scheduled to go before City Council next week to discuss an increase to our base fee only.
Please let me know if you need anything else.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
CityEagle_00065
RESOLUTION NO. 17-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAGLE, ADA COUNTY,
IDAHO, ESTABLISHING CITY WATER SYSTEM CUSTOMER CHARGES AND
VOLUME CHARGES, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Eagle, Ada County, Idaho (the "City"), is a municipal
corporation duly organized and operating under the laws of the State of Idaho; and
WHEREAS, the City Council of the City of Eagle is authorized by Sections 6-5-9
and 6-5-24, Eagle City Code, to establish water user charges for the City of Eagle water
system; and
WHEREAS, the fees set forth herein are reasonable and reflect, as closely as
reasonably possible, the costs associated with the actual operation, expansion,
maintenance, replacement, financing expenses and the total water usage pertaining to the
City's water system pursuant to Sections 6-5-9 and 6-5-24, Eagle City Code; and
WHEREAS, the proposed fee schedule changes reflect less than a 5% increase.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EAGLE, ADA COUNTY, IDAHO, as follows:
Section 1: That, pursuant to Eagle City Code, the Eagle City Council hereby
establishes the following water user charges as shown in Exhibit A:
Section 2: The active customer of record shall be billed monthly the base rate, the
water safety fee, the system enhancement fee, the volume charge and other additional
fees as are pertinent to the services received. The volume charge is based on all metered
water for the billing period. The base rate will be prorated whenever the customer has not
been a customer for the entire billing period.
Section 3: When no active customer of record is being billed, the owner of the
property shall be billed monthly the unoccupied dwelling rate.
Section 4: This resolution shall take effect and be in force from and after its
passage and approval.
DATED this ~~-&, day of
0008*
G`.•' QOR
of
A~'•.
ASE L;'r o .
~•. f•: ~~rc~t`;• P.Z.
~,:
~`go, -1TE OF NO
_I ..n,
"'Sharon 'K. Bergmann, City C rk
ATTEST:
'.e ("'e , her, 2017.
CITY OF EAGLE
Ada County, Idaho
Stan Ridgeway, Mayor
Page 1 of 2
..•~~~r nr~ll.,nran.,\r~r...-.V,., ..~....~~.,..i~ .~,.._,,,.~..rl~...- 1)0 17 17 ^.
CityEagle_00066
Exhibit A
Water Fees and Rates
Please note - Changing fees/rates are crossed thru, new rates/fees are underlined
Meter Size 3/4 "1"1 1/2"2"3"4"6"
Hook Up Fees 950.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Storage and Trunk Line Fees (STL)2100.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Water Construction Equivalency Fees (WCE)400.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Base Monthly Fee Q 44 9.60 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Service Deposits 75.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
System Enhancement Fee (DEQ Funds)10.93 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Consumption Rate per 100 cubic feet 1.32 1.35
Water Safety Fee (DEQ pass-thru fee)0.34
Service Application Fee 10.00
Delinquent Fee 12.00
Reconnection fees for collections 25.00
After hours reconnection fees 80.00
After hours connection fees 50.00
Returned check fee 20.00
Unoccupied dwelling rate Base Rate + System Enhancement Fee
Bulk rate ( IE, dust abatement) per 100 cubic feet 4-.60 1.63
Late penalties for bulk users 12.00
Hydrant Meter Deposit 75.00
Automatic Checking Withdrawal Fee (ACH)0.50
New fees
Additional trip charges 50.00
Unauthorized access to meter, tampering 250.00
Plus labor and
materials
Jumpers/Bridges placed in meter pit 500.00
Plus labor and
materials
ERU = Equivalent Residential Units
CityEagle_00067
29000-91583140
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Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 1/26/2018 2:36:51 PM
To: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]
Subject: Just info
Norm Bangle called today— I provided Cherese's contact info for him.
City of Eagle
Kellie Rekow, CMC
Water Department
660 E Civic Lane
PO Box 1520
Eagle, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow@cityofeagle. or
www.cityofeagle.org
CityEagle_00069
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 2/23/2018 3:15:22 PM
To: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Norm Bangle
(nbangle@h2o-solutionsllc. net) [nbangle@h2o-solutionsl1c. net]; 'Cherese D. McLain' [[e-mail]]; Mike
Davis - Holladay Engineering ([e-mail]) [[e-mail]]
CC: Tammy Gordon [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=99cd9c240ee24063a9cd86914220b36a-tgordon]
Subject: Meeting with PUC
Good Afternoon All,
Terri from the PUC emailed and she is available on Thursday morning. It looks like 11:00 works the best for
everyone. She will reserve a room at her office. I'll shoot you a calendar invite.
The address online is 472 W. Washington Boise, ID 83702, and her number, Terri Carlock, is 208-334-0356 or maybe, since
she will be moving to her new assignment, it may be 208-334-0350, Randy's old number. Not sure about that one.
Thanks and have a great weekendM!
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
kreko w0cityofeag/e, org
www.cityofeagle.org
CityEagle_00070
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 2/23/2018 9:23:42 AM
To: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Norm Bangle
([e-mail]) [[e-mail]]
Subject: PUC Meeting date
Flag: Follow up
Gentlemen,
Just to keep you up to date, Randy Lobb with the PUC is retiring next Friday. Terri Carlock will be taking over his job. He
has shared the information he has with her but she is out today. I left her a voicemail and sent her an email to follow up
and asked if she would have time to meet next week. Randy said she will be pretty busy with the transition and he
wasn't sure she would be able to fit us in. I guess we'll find out when she returns on Monday.
In the meantime, have a wonderful weekend and I'll let you know when I hear from her.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
CityEagle_00071
1U~0-l7
Meeting in the Mayor's office: Mayor Ridgeway, Ken Acuff and KeUieRekow
The Mayor wanted to bring us up to date on contact he had with Norm Bangle, H20 Solutions. Norm
had been involved in discussions earlier with Blauss Wasser and with Pluris.
Norm's current proposal is that his company, he is no longer affiliated with either ofthe other two
companies, purchase Eagle Water Company. They will give the City the infrastructure, keep the water
and water rights, wholesale the water tn usthru a lease agreement.
[oncenns — cos of water; for how long; will vve ever be able tn buy the water rights; what will vvednif
they price us out of their wmUec.
EVV[ Customer count =3O32at]'l7'l7
EWC Current rates, establish 3-25-87 =
METER
SIZE
600
1,000
2,000
3,200
MINIMUM
CHARGE
6/000 i $34.00
(OR mU~TIPLsMETERS OF EQUIVALEwCAPACTY)
431
6'
10,600
21,000
32,000
45,000
Cubic feet included in minimum charge
All usage over the minimum amount
included inthe minimum charge is billed
at the rate of $0.451 Per 100 cubic feet,
CdyEag|e_00072
Full Name: Norm Bangle
Last Name: Bangle
First Name: Norm
Company: H2O Solutions, LL[
Business +I(469)3I5-0II8
E-mail: nbanX|e@/hZo-so|utionsUcnet
CdyEag|e_00073
THE CITY OF EAGLE
CITY COUNCIL AGENDA
Eagle City Hall, 660 E. Civic Lane
January 23, 2018 5:30 p.m.
INVOCATION:
1. CALL TO ORDER:
2. ROLL CALL: BASTIAN, GOLD, PITTMAN, MITCHELL
3. PLEDGE OF ALLEGIANCE:
4. SERVICE RECOGNITION
A. ACHD recognition for the way finding signs (PER NBS/SR)
16. EXECUTIVE SESSION:
74-206. Executive sessions — (1) An executive session at which members of the public are excluded
may be held, but only for the purposes and only in the manner set forth in this section. The
motion to go into executive session shall identify the specific subsections of this section that
authorize the executive session. There shall be a roll call vote on the motion and the vote shall be
recorded in the minutes. An executive session shall be authorized by a two-thirds (2/3) vote of the
governing body. An executive session may be held:
A. 74-206(c) To acquire an interest in real property which is not owned by a public agency;
1. Possible purchase of infrastructure. Norm Bangle confirmed attendance
5. PUBLIC COMMENT:
This time is reserved for the public to address their elected officials regarding concerns or comments they
would like to provide to the City Council regarding subjects not on the agenda. At times, the City Council may
seek comments/opinions regarding specific City matters during this allotted time. This is not the time slot to
give formal testimony on a public hearing matter, or comment on a pending application or proposal. Out of
courtesy for all who wish to speak, the City Council requests each speaker limit their comments to three (3)
minutes.
6. ADDITIONS, DELETIONS OR MODIFICATIONS TO THE AGENDA; INCLUDING THE
CONSENT AGENDA:
A. City Staff requests.
B. Mayor or City Council requests.
7. CONSENT AGENDA:
¨ Consent Agenda items are considered to be routine and are acted on with one motion. There will be no
separate discussion on these items unless the Mayor, a Councilmember, member of City Staff, or a citizen
requests an item to be removed from the Consent Agenda for discussion. Items removed from the Consent
Agenda will be placed on the Regular Agenda in a sequence determined by the City Council.
¨ Any item on the Consent Agenda which contains written Conditions of Approval from the City of Eagle
City Staff, Planning & Zoning Commission, or Design Review Board shall be adopted as part of the City
Council's Consent Agenda approval motion unless specifically stated otherwise.
A. Claims against the City.
B.
8. UNFINISHED BUSINESS:
9. PUBLIC HEARINGS: Public hearings will not begin prior to 6.00 p.m.
Public Hearings are legally noticed hearings required by state law. The public may provide formal
testimony regarding the application or issue before the City Council. This testimony will become part of
the hearing record for that application or matter.
Page 1 of 2
docK:ACOUNCIL\AGENDA\Temporary Agenda Work Area
CityEagle_00074
CITY COUNCIL AGENDA
December 12, 2017 5:30 p.m.
10. NEW BUSINESS:
11. PUBLIC COMMENT:
This time is reserved for the public to address their elected officials regarding concerns or comments they
would like to provide to the City Council regarding any matter, up to and including any subject on the agenda
with the exception of Public Hearing items. Comments regarding Public Hearing items need to be made
during the open public hearing for said item(s) in accordance with Idaho Code. At times, the City Council may
seek comments/opinions regarding specific City matters (excluding Public Hearing items) during this allotted
time. Out of courtesy for all who wish to speak, the City Council requests each speaker limit their comments to
three (3) minutes.
12. REPORTS:
A. Mayor and Council Reports:
B. City Hall Department Supervisor Reports:
C. City Attorney Report:
13. ADJOURNMENT:
The City will make reasonable accommodations for anyone attending this meeting who require special assistance for hearing,
physical or other impairments. Please contact the City Clerk's Office at [phone] at least 24 hours in advance of the
meeting date and time.
Page 2 of 2
documentl
CityEagle_00075
Contact
Full Name: N L Bangle
Last Name: Bangle
Middle Name: L
First Name: N
Company: H2O Solutions LLC
Business [phone]
Phone:
E-mail: [e-mail]
Friday, January 26, 2018 2:34 PM:
From: N L Bangle <[e-mail]>
Sent: Friday, January 26, 2018 2:29 PM
To: Kellie Rekow
Subject: Re: City of Eagle Water Rates
Here you go!
N L Bangle
Telephone [phone]
nbangle@h2o-solutions) Ic. net
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are hereby notified that any
review, dissemination, distribution or copying of this message is strictly prohibited. This communication is
for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy
any financial product or service, an official confirmation of any transaction, or as an official statement of the
entity sending this message. Email transmission cannot be guaranteed to be secure or error-free. Therefore, we
do not represent that this information is complete or accurate and it should not be relied upon as such. All
information is subject to change without notice.
On Dec 5, 2017, at 1:32 PM, Kellie Rekow <[e-mail]> wrote:
Hi Norm,
I'm attaching our current water rates and fees as approved by the City Council on 9-12-2017. We bill
every month and all of our meters are cubic feet.
CityEagle_00076
I am also attaching a rate sheet for Eagle Water Company. I'm sure you already have that but at
least you'll have them both in one email should you need them at the same time. It's my
understanding these rates were set on 3-25-1987.
We are scheduled to go before City Council next week to discuss an increase to our base fee only.
Please let me know if you need anything else.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
660 E Civic Lane
PO Box 1520
Eagle, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
[e-mail]
www.cityofeaa1e.orq
<Resolution 17-23 setting water rates, fee schedule attached.pdf><EWC Rates mailed to customers
2017. pdf>
CityEagle_00077
Message
From: N L Bangle [[e-mail]]
Sent: 1/26/2018 2:29:09 PM
To: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
Subject: Re: City of Eagle Water Rates
Here you go!
N L Bangle
Telephone [phone]
[e-mail]
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Dec 5, 2017, at 1:32 PM, Kellie Rekow <[e-mail]> wrote:
Hi Norm,
I'm attaching our current water rates and fees as approved by the City Council on 9-12-2017. We bill every month and
all of our meters are cubic feet.
I am also attaching a rate sheet for Eagle Water Company. I'm sure you already have that but at least you'll have them
both in one email should you need them at the same time. It's my understanding these rates were set on 3-25-1987.
We are scheduled to go before City Council next week to discuss an increase to our base fee only.
Please let me know if you need anything else.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
CityEagle_00078
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.city0feagle.org
<Resolution 17-23 setting water rates, fee schedule attached.pdf><EWC Rates mailed to customers 2017.pdf>
CityEagle_00079
Appointment
From: KeUieRekow[/O=EXCHANGELAB5/OU=EX[HANGE ADMINISTRATIVE GROUP
(FYD|BOHF23SPDLT)/CN=REC|P|ENTS/[N=3D7[9854I2C94OI48AEA3]EC75C9DED4'KREKOVV]
Sent: 2/23/20183:18:33PK4
To: Stan Ridgeway [/b=ExzhangeLabs/ou=Exchange Administrative Group
(FYD|8OHFI35PDLT)/cn=Redpient$cn=39l487834Of841bO8bae60t6Ied883I'sridgeway];NormBang|e
(nbang|e@h2o'so|ubond|c.net) [nbanX|e@hZo'so|utiond|c.not]; 'Chenese D. McLain' [CDM@msbt|awzom]; Mike
Davis Holladay Engineering (miked@hecoengineorszom)[[e-mail]]
Subject: Meeting with PUCat1I:OO
Location: PUC Offices
Start:
End:3/1/2018 12:00:00 PM
3/I/20I81Il0i0AM
Show Time As: Tentative
Required Stan Ridgeway; Norm Bangle (nbangle@h2o-solutionsllc. net); Cherese D. McLain; Mike Davis Holladay Engineering
Attendees: (mil<[e-mail])
Teni[adnck
472 W. Washington Boise, |D 83702
208'334'0356
OR
208'334'0350
CdyEag|e_00080
Message
From: Tammy Gordon [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=99CD9C240EE24063A9CD86914220B36A-TGORDON]
Sent: 1/16/2018 8:15:46 AM
To: Bailey [[e-mail]]; Bill Vaughan [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=Oe8abbacfc8544b8914555af788f6c9f-bvaughan]; Cherese McLain
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=922eb4ebb3af4ecda5494cc10df51d15-ChereseMcLa]; Eagle Museum
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=03d7a6797db24e38923f2f8b2b67ebc5-eaglemuseum]; Kellie Rekow
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]; Ken Acuff
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=ffe671e6fcca4d78b3af41e029f42312-kacuff]; Mike Williams
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=30db405ad3db4401bf2b7519afd30b02-mwilliams]; Nichoel Baird
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3beb7c07bd024c78bc9e8899c4df5562-nbaird]; Pat Calley
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=39fda550bf59425d8e345457a772ba49-pcalley]; Sharon Bergmann
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=263e42b008d94774a2d6b8c5ebc27435-sbergmann]; Stan Ridgeway
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Steve Bumgarner
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=5a8441cec2f24bcb8375a2f4f6640e44-sbumgarner]; Steve Nash
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=5b769d77e454479d999217aOf67025f5-snash]; Tracy Osborn
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=2bbebe62eb6141c39182c1cdc46a531a-tosborn]; Kristl Caron
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=80d600a56bd04314a8cbd2afa50d2a9a-kcaron]; Kathleen M. Donovan
[[e-mail]]; Devonte Goodman [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=1bf5248a785e452dbc507eb3f2753e75-dgoodman]; Tim Williams
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=6585367b10d944f9ab37a1f1b7ec3eOe-Tim William]; Eric Ziegenfuss
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=2b8d7d38e77749aaad5a782763ca8466-eziegenfuss]; Holly Csencsits
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=bOed5516b76349349b22e25c71337dd4-hcsencsits]
Subject: DRAFT agenda CC-01-23-18
Attachments: CC-01-23-18ag.docx
Good morning,
Attached is the draft agenda for next week's meeting.
Feel free to add your items yourself by clicking the link below (City Hall staff only). Formatting is not needed at
this time.
Please send me your changes by noon on Wednesday. Packet items by noon on Thursday.
Please remember that we are using OneDrive now and not DropBox
Thank you!
K:\COUNCIL\AGENDA\Temporary Agenda Work Area
Tammy
CityEagle_00081
THE CITY OF EAGLE
CITY COUNCIL AGENDA
Eagle City Hall, 660 E. Civic Lane
January 23, 2018 5:30 p.m.
INVOCATION:
1. CALL TO ORDER:
2. ROLL CALL: BASTIAN, GOLD, PITTMAN, MITCHELL
3. PLEDGE OF ALLEGIANCE:
4. SERVICE RECOGNITION
A. ACHD recognition for the way finding signs (PER NBS/SR)
16. EXECUTIVE SESSION:
74-206. Executive sessions — (1) An executive session at which members of the public are excluded
may be held, but only for the purposes and only in the manner set forth in this section. The
motion to go into executive session shall identify the specific subsections of this section that
authorize the executive session. There shall be a roll call vote on the motion and the vote shall be
recorded in the minutes. An executive session shall be authorized by a two-thirds (2/3) vote of the
governing body. An executive session may be held:
A. 74-206(c) To acquire an interest in real property which is not owned by a public agency;
1. Possible purchase of infrastructure. Norm Bangle confirmed attendance
5. PUBLIC COMMENT:
This time is reserved for the public to address their elected officials regarding concerns or comments they
would like to provide to the City Council regarding subjects not on the agenda. At times, the City Council may
seek comments/opinions regarding specific City matters during this allotted time. This is not the time slot to
give formal testimony on a public hearing matter, or comment on a pending application or proposal. Out of
courtesy for all who wish to speak, the City Council requests each speaker limit their comments to three (3)
minutes.
6. ADDITIONS, DELETIONS OR MODIFICATIONS TO THE AGENDA; INCLUDING THE
CONSENT AGENDA:
A. City Staff requests.
B. Mayor or City Council requests.
7. CONSENT AGENDA:
¨ Consent Agenda items are considered to be routine and are acted on with one motion. There will be no
separate discussion on these items unless the Mayor, a Councilmember, member of City Staff, or a citizen
requests an item to be removed from the Consent Agenda for discussion. Items removed from the Consent
Agenda will be placed on the Regular Agenda in a sequence determined by the City Council.
¨ Any item on the Consent Agenda which contains written Conditions of Approval from the City of Eagle
City Staff, Planning & Zoning Commission, or Design Review Board shall be adopted as part of the City
Council's Consent Agenda approval motion unless specifically stated otherwise.
A. Claims against the City.
B.
8. UNFINISHED BUSINESS:
9. PUBLIC HEARINGS: Public hearings will not begin prior to 6.00 p.m.
Public Hearings are legally noticed hearings required by state law. The public may provide formal
testimony regarding the application or issue before the City Council. This testimony will become part of
the hearing record for that application or matter.
Page 1 of 2
docK:ACOUNCIL\AGENDA\Temporary Agenda Work Area
CityEagle_00082
CITY COUNCIL AGENDA
December 12, 2017 5:30 p.m.
10. NEW BUSINESS:
11. PUBLIC COMMENT:
This time is reserved for the public to address their elected officials regarding concerns or comments they
would like to provide to the City Council regarding any matter, up to and including any subject on the agenda
with the exception of Public Hearing items. Comments regarding Public Hearing items need to be made
during the open public hearing for said item(s) in accordance with Idaho Code. At times, the City Council may
seek comments/opinions regarding specific City matters (excluding Public Hearing items) during this allotted
time. Out of courtesy for all who wish to speak, the City Council requests each speaker limit their comments to
three (3) minutes.
12. REPORTS:
A. Mayor and Council Reports:
B. City Hall Department Supervisor Reports:
C. City Attorney Report:
13. ADJOURNMENT:
The City will make reasonable accommodations for anyone attending this meeting who require special assistance for hearing,
physical or other impairments. Please contact the City Clerk's Office at [phone] at least 24 hours in advance of the
meeting date and time.
Page 2 of 2
documentl
CityEagle_00083
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 4/16/2018 2:39:03 PM
To: N L Bangle [[e-mail]]
Subject: RE: City of Eagle
You bet. I'll keep you posted.
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Monday, April 16, 2018 2:27 PM
To: Kellie Rekow <[e-mail]>
Subject: Re: City of Eagle
You are so welcome Kellie. Can you verify the Monday schedule with Stan? Who is going to be going with us to visit the
sites etc... ? I'll be flying in to Boise Sunday afternoon for the well site visits Monday. I have meetings in Dallas
Wednesday and will need to catch a flight Tuesday morning at 10:00.
Thanks Kellie!
N L Bangle
Telephone [phone]
[e-mail]
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
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CityEagle_00084
On Apr 16, 2018, at 2:13 PM, Kellie Rekow <[e-mail]> wrote:
Got em. Thanks so much!
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Thursday, April 12, 2018 5:26 PM
To: Kellie Rekow <[e-mail]>
Subject: Re: City of Eagle
Hi Kellie. I hope you had a great day. I had IT issues today. Here are the documents we discussed in the meeting
yesterday.
Had a good trip back. Long boring drive and it rained nearly all the way. I appreciate the salmon update... It is good isn't
it?
Hope you have an awesome weekend!
N L Bangle
Telephone [phone]
[e-mail]
<image001.png>
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Apr 12, 2018, at 3:18 PM, Kellie Rekow <[e-mail]> wrote:
CityEagle_00085
Hi Norm,
I didn't see those documents come thru and wanted to make sure they didn't get hung up in some spam folder I'm not
finding.
Hope you had safe travels yesterday AND just so you know, my salmon was de-li-cious. Tasty goodness on my plate. O
Thanks so much,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
CityEagle_00086
Message
From: N L Bangle [[e-mail]]
Sent: 4/17/2018 10:51:30 AM
To: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
Subject: Re: City of Eagle
I'm flying in and renting a car (my jeep is at another project). Depends on what they have available. I expect
that we can put at least three people in my car... four if we use the "Sardine" approach. I'll most likely have
Robert with me... which means I can take two more. Robert has his Suburban... however, I will not ride with
him if he is driving... I wouldn't recommend it for anyone else either.
N L Bangle
Telephone [phone]
nbangle@a,h2o-solutionsllc.net
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Apr 17, 2018, at 10:31 AM, Kellie Rekow <[e-mail]> wrote:
I am waiting for responses on attendance. Since we aren't using City vehicles, will you be in a vehicle that will
accommodate a few people as well? Everyone might fit into the Mayor's car, but just in case. O
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Monday, April 16, 2018 2:27 PM
CityEagle_00087
To: Kellie Rekow <[e-mail]>
Subject: Re: City of Eagle
You are so welcome Kellie. Can you verify the Monday schedule with Stan? Who is going to be going with us to visit the
sites etc... ? I'll be flying in to Boise Sunday afternoon for the well site visits Monday. I have meetings in Dallas
Wednesday and will need to catch a flight Tuesday morning at 10:00.
Thanks Kellie!
N L Bangle
Telephone [phone]
[e-mail]
<image001.png>
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Apr 16, 2018, at 2:13 PM, Kellie Rekow <[e-mail]> wrote:
Got em. Thanks so much!
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
From: N L Bangle <nbangle@h2o-solutionsl lc.net>
Sent: Thursday, April 12, 2018 5:26 PM
To: Kellie Rekow <[e-mail]>
Subject: Re: City of Eagle
Hi Kellie. I hope you had a great day. I had IT issues today. Here are the documents we discussed in the meeting
yesterday.
CityEagle_00088
Had a good trip back. Long boring drive and it rained nearly all the way. I appreciate the salmon update... It is good isn't
it?
Hope you have an awesome weekend!
N L Bangle
Telephone [phone]
[e-mail]
<image001.png>
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Apr 12, 2018, at 3:18 PM, Kellie Rekow <[e-mail]> wrote:
Hi Norm,
I didn't see those documents come thru and wanted to make sure they didn't get hung up in some spam folder I'm not
finding.
Hope you had safe travels yesterday AND just so you know, my salmon was de-li-cious. Tasty goodness on my plate. O
Thanks so much,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
CityEagle_00089
www.city0feagle.org
CityEagle_00090
Message
From: N L Bangle [[e-mail]]
Sent: 4/18/2018 11:56:50 PM
To: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
CC: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]
Subject: Re: Monday Tour
Thank you Kellie. I'll work on the location schedule.
N L Bangle
H2O Solutions LLC
469-458-0270
On Apr 18, 2018, at 4:14 PM, Kellie Rekow <[e-mail]> wrote:
Hi Norm,
I believe the tour group for Monday will include you, Robert, the Mayor, Miranda Gold (City Council Member), Ken Acuff
(Water Sup), Mike Davis (City Engineer) and possibly me. We are planning on leaving City Hall promptly at 9:30.
If possible, could you route us farthest from the office working back? Miranda has to be done by noon. I'm sure it won't
take longer than that but if it does it will be a quick trip to get her back without creating an inconvenience for anyone.
If anything changes for you, let us know and we will adjust.
Thanks so much,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
CityEagle_00091
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 3/7/2018 8:04:42 AM
To: N L Bangle [[e-mail]]
CC: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]
Subject: RE: Water Rate study
Good Morning Norm,
I will most certainly try to do that. Was it done several years ago? I think I know the report you are talking about,
maybe. O
I'll try to have that to you by tomorrow. We had a few software issues that have taken me a bit more time than I
thought but I'm hopeful they will be out of the way this afternoon. Fingers crossed.
Thank you for your patience,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Monday, March 05, 2018 12:58 PM
To: Kellie Rekow <[e-mail]>
Cc: Stan Ridgeway <[e-mail]>
Subject: Water Rate study
Hi Kellie - Do you have a copy of the rate study that was completed regarding Eagle Water? If so can you send a copy to
me via email?
Thanks Kellie.
N L Bangle
Telephone [phone]
[e-mail]
CityEagle_00092
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
CityEagle_00093
Descriptive
items of Spreadsheet
"Rate Projections and probable Budgets"
Eagle Combined Water System, EG 080305
Sheet 1 "Summary Worksheet"
Given Values
1. "Probable Annual Investment Income Rate" is the projected long term average rate
of return to City funds invested in the Idaho Municipal Investments Pool.
Z. "Probable Annual COLA Increase Rate" is the projected average annual cost ofliving
adjustment based on the U.S. Consumer Price Index.
3. "Probable Annual Incentive Increase Rate" is the projected annual average incentive
salary increase for staff, which is a matter ofCity policy and any pertinent terms of
negotiated agreements with staff.
4. "Probab|eAnnua|[apite|[osts|nf|ationRate"isexpectedtoapp|yontheeveraQe,
both to equipment and implement purchases and to construction costs. This isa
simplification, and may involve a degree ofimprecision.
S. "Current Contract K4ininnunn Annual Rate Increase" is the nnininnunn annual service
charge increase written unto the operating agreement with UVV| for the Lexington-
Brookwood complex water system. |tis not pertinent except for a comparison to
the set of values shown on the Rates Worksheet.
6. "Probable Annual Bond Interest Rate" is the interest rate that was in place for DE(}
loans when the City decided to build the 1.0 Million Gallon Reservoir by the
proposed Sport Park. This rate may change at the time of loan dosing. It does not
a pply to other planned construction.
7. "Probable Bond Term, Years" applies tothe bond for 1.0 million gallon reservoir,
well and well hose rebuild in2OO7.
8. "Probable Bond Amount" applies to the bond for 1.0 million gallon reservoir, well
a nd well hose rebuild inZOO7.
9. "Annual Bond Payment" the theoretical capital recovery payment for the stated
bond principal, interest and term.
10. "Monthly Base Rate" starting base rate peruser per month. See rates worksheet for
more detail. (This is also the first item in Column Eof this sheet.}
11. "Quantity Rate per [CF" the rate for metered usage. Usage multiplied by this rate is
added to the base rate to determine the monthly charge for each respective
customer.
1Z. "Average Use perUser-K4onth"is the average of the most recent year of record for
the Lexington/Brookwood complex. "[CF means (l0O cubic feet).
13. "Average Monthly Billing" calculated as the sum of the base and product of quantity
rate times average use. "ER[" means "Equivalent Residential [ustonner."
14."Hook-up Fee" assumed value of hook-up fee for first plan year.
15. "Water Construction Equivalency Fee" assumed value for first year (The purpose of
this fee istofund the City in construction of 10 inch and 12 inch mains.)
16. "STL Fee" Storage and Trunk Line Fee instituted per Master Plan of 2005. (The
purpose of this fee is to fund construction of storage reservoirs and trunk lines 16
inches and larger).
17. Growth Rates and Buildout ERC Numbers" growth rate are used to compute
expected number ofhook-ups. "ER[8ui|douts" per area are upper limits on
cumulative hook-up calculations. All of these numbers are assumptions that can be
varied to view scenarios.
CdyEag|e_00094
Rate Projections and Item Descriptions
Sheet 1 "'Summary Worksheet"
Data Fie|d — Oeschptions& Columns
Column A: Blank
Column B: "Plan Year" serves as reference for compounding calculations and formulas
in some other columns. Repeated on all pages as the standard row reference.
Column C: "CAL Year" the calendar year corresponds to the plan year, a reference given
on all pages.
Column D:"AVGER[" the projected everaQenunnberofequiva|entnesidentia|
customers, used to calculate probable billings. Tied 10 columns where the value is
calculated.
Column E: "Base Rate" projected base rate for the plan year. Established at Column K of
the Rates Page.
Column F: "Quantity Rate" projected quantity rate for the plan year. Established at
Column Lof the Rates Page.
Column G: "Area 8i||/K4o" equals Base plus Quantity Rate time Average Use (square ]14)
for the Plan Year.
Column H: "Revenue from Rates" equals "Average ERC" times "Average Bill per Month"
times 12 months per year.
Column K: "Revenue from Fees" is copied from Column K4of the "ER[6k Fee Projections
Page", where the value iscalculated.
Column J: "Operating Costs" is copied from Column F or Rates Worksheet page, where
the value is calculated.
Column K: "Scheduled Capital Costs" is copied from Column |of the Capital Place page
w here the items are listed and designated, and probable future values are calculated.
Column L: "Net Operating Revenue" is copied from Column Q of the Rates Worksheet
page, where the value iscomputed.
Column M: "Probable Investment Income" is copied from Column F of the Capital page,
where the value iscomputed.
Column yN: "Probable Account Ba|anoe"equals the projected yeapendsunnofthe
"Emergency and Operation Reserve Fund" and the "Capital Improvement Fund"
together these constitute the balance of the water account. Copied from Column Eof
the Capital Plan page, where the value iscalculated.
CdyEag|e_00095
Rate Projections and Item Descriptions
SHEET 2 "ERC Projections and Probable Fee Revenues"
This page shows projected gnowthpatternsegnegatedintofoursub'aneas. Area 1us the service
area of the Lexington Hills/Brookwood system owned bythe City at the start of the calenclaryear
2007 and defined as the subject service area of the "WATER SERVICE CONTRACT-2004" between
the City of Eagle and United Water ofIdaho. Area Zis currently the certified service area ofEagle
Water Company. Area 3A is the area subject to special development agreements between the
City of Eagle and the developers of Eag|efie|d Subdivision and Legacy Subdivision, both are
located in the Western Expansion Area identified in the Amended Master Plan of November
3005. Area 38is the remainder of the Western Expansion Area.
Probable fee revenues computed here are the hook-up fees, storage and trunk line(STL) fees and
Water Construction Equivalency (VV[E) fees to be paid by new development on e per customer
basis. The hookup fee is required for all new users who are hooking up. The Storage and Trunk
Line (STL) fee is currently in force and is required for all hook-ups except those in Area 3A, where
the development agreement has waived the STL fees in consideration of supply and trunk line
construction to be performed by the developers. The VV[E fees are a recommendation not yet
enacted, for the purpose of funding "oversize charges" calculated of inch distribution mains
a nd the cost of size-required mains , where required mains are larger than 8 inches and snne||er
the 16 inches. Essentially, if the VV[E fees are instituted, they will be due for all new hook-ups
that owe STLfees.
|n the formulas for sub-area growth, the growth rates on the summary page are generally applied
area-by-area until the sub-area ER[ count reaches the Area Bui|dout assured number. For Area
3, it is assured that initial growth will be 100 until 2008, then 200 per year, then 25% per year (or
three years, then 8Y6 per year for the remainder of the plan 1ernn). |tis also assumed that all Area
3 growth will be in Area 3A until it reaches bui|dout, and subsequent growth will be in Area 3B.
N umerical growth is projected bynnu|tip|yingER[nunnberbv1p|usQrovvthnatenunnberofhook-
upspersub-areaisde1ernninedbysubtraction. Values are rounded for presentation but not for
The calculations of probable fee revenues include an inflation assumption. For each succeeding
plan year it is assumed that all fees are increased by the "Capital Costs Inflation Rate" It is
realized that council action to increase these fees may not be taken annually, but it is considered
probable that at the time such actions are taken, increases will be consistent with inflation since
the time each was previously set onamended. This assumption is intentionally selected asbeing
the implication of a straightforward "development funds infrastructure additions" policy.
Column Descriptions
Column & B: "Plan and CAL year" same ason Summary page.
Column C: "Area 1hook-ups" next year's projected Equiva|entResidentia|[us1onners,
(ERC's) minus this years.
Column D: "Area 1 on Summary Page" either a percentage shown in growth more than
last years ERC's or 2,620, whichever is less, beginning with a current value of 1,400.
Column E & F: Similar calculations for Area Z.
Column G, H 0& U: Similar calculations for Area 3, modified to reflect difference in fee
obligations for Area 3A and 38. The assumption that Area 3A will fill before 38begins
developing is conservative with regard to anticipated tinning of fee revenues.
CdyEag|e_OOOQG
Rate Projections and Item Descriptions
Column J: "Total ERC's" is the predicted overall size of the system in terms of customer
numbers. This value is used for projecting monthly service receipts, operating expenses
and pay roll on other pages.
Column K: "STL & WECF Fees Total" sum pf STL fee and WECF fee is multiplied by the
sum of hook-ups in Areas 1,2 and 3B from the respective columns. Unit STL and VVE[F
fees area increased annually by the "Capital Costs Inflation Rate" from the Summary
sheet as previously mentioned. Calculated sum is not evenly divisible, because the
number of hook-ups is not actually rounded.
Column L: "Hook-up Fees Total" calculated in a similar manner, with hook-up fees, per
summary page , multiplied by the sum of hook-ups in Areas 1,2,3A & 313, reflecting
obligation of all new services to pay the hook-up fee.
Column M: "Total Fees" calculated as the sum of "STL & WECF Fees" and "Hook-up
Fees"
CdyEag|e_00097
Rate Projections and Item Descriptions
SHEET 3 "'Payroll and General Administrative AUUowanc="
Worksheet projects staffsizeandqua|ifica1ionsstructurebasedonassunnedstafftocustonner
ratios, and that projects tota|peyroUbesedontheassunnedcurnentpaysca|e,assunned
overheadfringera1io(ratioofnon^wagepayno||coststovvages),assunnedcos1of|ivinQ,and
incentive increase rates. Ratios of "other staff" costs are also included and extended topayroll
costs as a part of PWS compensation and an allowance for services to the Water System by
other City government.
CONSTANTS:
"Payroll Fringe to Wage Ratio" is the probable ratio of the sum of all payroll-based costs other
than wages (employer's social security contributions, health care contributions, workmen's
compensation premiums, unemployment insurance premiums, and other items ordinarily
included in "fringe")towage quoted as salary.
"P.W.S. Water Duty Ratio" is a portion of the effort of the Public Works Supervisor that is
accredited to the water system and compensated by the Water Fund, as a decimal fraction of
salary.
"General Admin. Allowance Ratio" is the ratio of an allowance paid by the Water Fund to the
General Fund to compensate other divisions of City government for efforts by those divisions
on behalf of the Water System. The allowance is calculated as the ratio given here multiplied
by the "payroll plus fringe." It is added to "Payroll Plus Fringe" to give "Total Peyro||"
"Probable COLA" is the projected averageCostofLivingA||ovvanceannua|vvageincnease
percentage, a value normally based on the Federal Government's Consumer Cost Index, and
hence not within the City's control.
"Probable Incentive Increment" is the projected probab|yannua|incentiveincneasepercentage
expected 1obe awarded by Council action. This value is elective in theory, but in practice, itis
an adjustment that is made in order to keep pace with the labor market so staff will not be
frequently hired away.
"Probable Base Salaries" are assumed for calculations first=plan-year salaries of various ranks
(qualification levels) ofemployees. These values as shown here are based onageneral
i mpression of the current labor market, and do not reflect either vigorous canvassing or results
of successful hiring negotiations.
COLUMN DESCRIPTIONS:
Columns A & B: "Plan Year" and CAL Year" are the same as the row reference columns on all
other pages.
Column C: Number ER[is copied from Column ]of Page 2,"ER[ and Fee Projections", where
the values are calculated.
Column D: "No PVVS"is the projected nunnberofennp|oyeesinthecateQory"PVVS" "Public
Works Supervisor." This number is always 1.
CdyEag|e_00098
Rate Projections and Item Descriptions
Column E: "PVVSSa|aryShene"istheannountofthePVVSsa|arythatischerQedtothePVVS
salary that is charged to the Water System Payroll. |tis calculated as the PVVS base salary given,
m ultiplied by the VWS Water Duty Ratio", increased by the COLA and incentive inflators each
year.
Column F: "No Op. 4" the projected nunnberofstaff(notcountingthePVV)vvhohaveOperator
4 ratinQ. It is assumed that there will be one per 12,000 customers; hence only one throughout
the plan period.
Column G: "Op. 4 Salaries" computed as number of Operator 4's (from Column F) multiplied by
Operator 4 salary, which is base salary with inflators for COLA and incentive applied every year.
Columns &U: Number of staff with Operator 3 qualification and their total salaries, calculated
similarly. Number of Operator 3's is 1 per each 6,000 users or remainder above a multiple of
6,000: 1 for 3 years, then Z, for values projected in1hisp|an(vvou|dchanQeifassunnedgrovv1h
rates were changed).
Columns J@&K: Analogous calculations for staff with Operator 3qualifications. Projected
number of Operator 2's is 1 per each 4,000 users or remainder after division by 4,000.
Columns L & M: Operator 1's and salaries, 1 per 4,000, similarly calculated.
Columns yN && 0: Clerical 3's (billing staff), I per 4,000, similarly calculated.
Column P: "Total Salaries" the sum of salaries computed for the plan year in Columns E,G,|,K,
K4, and [).
Column Q: "Salaries Plus Fringe" amount in Column P, multiplied by the coefficient ("Payroll
Fringe to Wage Ratio" plus one).
Column R: "General Administrative A||ovvance" a contribution 10 the General Fund from the
Water Fund to compensate for administrative and other services of City Government in support
of the Water System —ca|cu|ated as Column [} value multiplied by General Administrative
Allowance Ratio.
Column S: "Total Payroll" — the sum of Columns Q and R.
CdyEag|e_OOOQQ
Rate Projections and Item Descriptions
SHEET 4: "Direct and Regular Operating Costs"
COMMENTS:
Cost figures are generally calculated as unit cost, multiplied 6v number ofunits, multiplied by
the inflator raised to the power of elapsed years. Inflators used are shown in the given
information as "inflation Rates (annual)", with separate assumptions (or "energy", "Materials
and equipment", and "repairs and construction" This variegation of inflation rates reflects
recent trends.
[ategohesofexpensesare|unnpedforconvenienceinto"pow/er","chennica|s","Oepredetion
andSohedu|edK4aintenance","Ennergenoy[}penationandRepairs"("EnnergencyFund"),
"Meter Replacement", "Consumables", "Implement Depreciation", and "Vehicle Depreciation".
Categories, respectively, ~refer to:
1. Power Cost: the probable cost of electrical / energy for system operations;
3. Chemical Cost: based on chlorination and corrosion inhibitor addition only.
3. "System Depreciation and Maintenance" An allowance for costs arising from "wear and
tear" of system installed equipment, including SCADA year, pumps, main line valves,
hydrants, and the like. Individual service meter replacement ise separate item.
4. "Emergency Fund A||ovvanoe" Provides for pipeline repairs and other system repairs
arising from incidental damage (i.e. lightning strikes, vehicle impact, structure fire, and
the like), and for a fund to pay for emergency aid for operations. Note that the
accumulation of this quantity is not necessarily equal to the reserve fund designated
"Emergency and Operating Reserve Fund",as this value is projected tonnatchpnobab|e
qualifying expenditures, rather than to meet extreme situational demands.
S. "Meter Replacement Fund" required cost based on replacing service meters at ten-year
i ntervals.
6. "[onsunnab|es" this isa miscellaneous expense item, that includes office supplies and
materials postage, janitorialservices, vehicle fuel and maintenance supplies, property
i nsurance, liability insurance, telephone service, and other incidental items.
7. "Implement Depreciation Fund" this provides funds (or regular replacement of
implements (backhoe, dump truck, implement trailer, and the like), based on a general
assumption that implements will be held about 6 years and implement inventory per
operator will be about $3S,OOO\
8. "Vehicle Depreciation Fund" This provides funds for regular replacement ofoperators'
vehicles, assuming that average vehicle cost will be about $30,000 and vehicles will be
held about five years.
Rate Projections and Item Descriptions
COLUMN DESCRIPTIONS:
Column A: "Plan Year": Same ason other sheets, the row identifier, and reference for
exponential expansions.
Column 13: "CAL Year" The calendar year of the Plan Year.
Column C: "Number ER[" projected number of Equivalent Residential Customers, copied from
Column
Column D: "Water Use, [[F" Calculates probable total water use for year, by multiplying
"Number ERC" times 12 times "Average use, CCF per user — month" from the Summary page.
Column E: "Water Use, Ac- Ft" converts Column O value to acre-feet asa convenience for
supplying planning. This value is not cross-referenced in the worksheet.
Column F: "Power Use, KVVH" calculates the probable power use (or pumping projected asthe
unit power use shown in GIVEN, multiplied by the value of Column D.
Column G: "Power Cost" projects probable power cost per pumping by multiplying the Column
F va|uetinnesthe"8esePovver[ost"va|uetinnestheEnergy|nf|etionFactorca|cu|etedasthe
compounded co-efficient of inflation at the Energy Inflation Rate in the GIVEN values.
Column H: "Chemical Cost" projects the probable cost of water treatment chemicals (sodium
hypochlorite and corrosion inhibitor) by multiplying the Column D value times the "Base
Chemical Cost" from GIVEN times the inflation factor based on the "Materials and Equipment"
inflation rate from GIVEN.
Column U: "System Depreciation and Sch. K4aint." projects system maintenance and
replacement costs by similar calculation, using the number ofER['s, "Sys. Depnec. & K4aint."
[onstantfronnG|VEN,12nnonthsperyear,andaninf|ationfactorexpandedfronnthe"Repairs
and [onstruction" inflation rate from GIVEN.
Column J: "Consumable Cost" projects annua|"consunnab|e"costsbasedonthe"consunnab|es"
constant in GIVEN, the number of ERC's, 12 months per year and an inflation factor expanded
from the "Materials and Equipment" inflation rate inGIVEN.
Column K: "Emergency Operation and Repair A||ovvance"projects thepnobab|ecostsof
ennergencyandnon'schedu|edpairsandnep|acennentsbyasinni|arnnu|tip|ication,basedon
number of ERC's, "Emergency Fund A||ovv" constant from GIVEN 12 months per year, and an
inflation factor expanded from the "Repairs and Construction" inflation rate from GIVEN.
Column L: "Meter Replacement Fund" projects theprobab|efundingnaquiredfornneter
replacements by a similar multiplication based on number of ERC's, 12 months per year, "Meter
Repl. Fund" constant from GIVEN, and an inflation factor expanded from the "Materials &
Equipment" inflation rate from GIVEN.
Column M: "No. Oper's" total number of operators; the sum of Class A, Class 3, Class 2 and
Class 1 operations from the "Staff and Payro||" worksheet.
Column yN: "Vehicle and Implement Depreciation" projects theprobab|ecostsofkeepinQanup-
10-datesheetofvehidesandinnp|ennen1sbyasinni|arnnu|dp|ication,basedonthenunnberof
operators, the sum of the "Implement Depreciation Fund" constant from GIVEN, 12 months per
year, and an inflation factor expanded from the "Materials and Equipment" inflation rate.
Column 0: "Sum Exp. Funds" the sum of Columns G, H, |, J, K, Land N representing all expected
non-payroll expenses.
Column P: "Expenses Plus Payroll" the sum of Column 0 and Column S from the "Staff and
Payroll page. This is the projected required non-capital budget for the Water System.
Rate Projections and Item Descriptions
SHEET 5: "Rates Worksheet"
GENERAL:
The rates worksheet tests selected rate structure, which is entered in columns K and L as an
operator input, against the projected openatingcosttoconnpanepnobab|einconneandprobab|e
out go. As generated outputs, it produces "revenue from rates" and "operations net" (the
difference between rates revenue and operating costs).
Given Information (Highlight above grid of data):
A.^BondPaynnent":oopiedfronnthesunnnnarypage,vvheneitisca|cu|ated. The theoretical
annual payment for the bond for the 1.0 MG water reservoir, Brookwood Well and
Lexington Well #1Well House Rebuild.
B. "Required Premises Present Worth": Probable cost of a shop and office building for
operation and maintenance of the system, consisting of a staff management office, a
SCADA center, a two-bay wheeled equipment maintenance shop, a staff locker room
and sanitary facility, a staff break and training room, a materials and parts storeroom,
and a fenced parking lot for vehicles and implements.
C. "Premises Rental Ratio (annual)": Ratio of probable annual premises rent to probable
premises construction cost.
O. "Premises Maintenance Ratio": Ratio of probable annual premises maintenance cost to
probable premise constructions cost.
COLUMN DESCRIPTIONS:
Columns A, B, and C: Plan Year Calendar Year and Number ofER[,sas previously described.
Column D: "Premises Rent": Accounts for probability that premises will be rented until a shop
a nd staff office facility is completed. The capital plan rent is expected to be paid until
completion of construction, projected astheendofyeer3O12. Computed es "Premises Present
Worth" time "Premises Rental Ratio" times an inflation factor expanded based on the "Repairs
a nd [onstruction"inflation rate. After year 2O12, the rent is projected asafinedannountbased
one lease purchase agreement anticipated and fund construction. The formula for lease —
purchase rent is present worth times construction inflation factor for 3O12 times Lease-
Purchase Renta|Ratio.
Column E: "Premises K4aint."" The probable cost of maintenance of the shop and office facility
after it is built. Computed as "Premises Present Worth" times "Premises Maintenance Ratio"
times an inflation factor expanded based on the "Repairs and Construction" inflation rate.
Column F: "Total [)p. Cost": The total cost of operating the system for the year, including
revenue bond payments rents, premises maintenance and the cost computed on the
"Operating Costs" worksheet. Calculated by addition of the pertinent items.
Column G: "Fixed Operating [ost": The operating costs that are not variable according to
either quantity of water produced or staff payroll. Included: premises rent, premises
maintenance, bond payment, depreciation of system equipment, meter replacement, and
emergency allowance.
Rate Projections and Item Descriptions
Column H: "Variable Operating [osts": The projectedtota|ofquantitvne|atedcosts(energy
and chemicals) and payroll related costs.
Column U: "Theoretical Base Rate": The monthly base rate that would exactly defray the
projected fixed costs. Computed for comparison purposes.
Column J: "Theoretical Quantity Rate": The quantity rate that, given the assumed average use
a nd projected number of ER['s, would exactly defray the projected variable costs. Computed
for comparison purposes.
Columns K and L: "Selected Base and Quantity Rates": The base and quantity rates employed
i n the financial projections ofthisvvorkbook. These values are not generated bythe
spreadsheet, but are entered as operator inputs.
Columns M and yN: "Present Contract Base and Quantity Rates": The base and quantity rates
that would be required to extend the existing operating contract with United Water Idaho into
the future. Computed of comparison purposes.
Column 0: "Average Bi||": The projectedaveragennonth|ybi||atthese|ectedbaseand
operating rates and projected averagennon1h|yuse.
Column P: "Revenue from Rates": Computed by multiplying average bill times 13 months times
number ofERC's.
Column Q: "Operations Net": Computed 6v subtracting total operating cost from Revenue
from Rates.
Column R: "Accumulated Operations Net": The running total of amounts in Column P. This
sum of money never exists in any account; the surplus is actually taken into the Capital
I mprovements Fund or the Emergency and Operating Reserve Fund. Calculated for comparison
Rate Projections and Item Descriptions
SHEET 6: "'Capital Plan Worksheet"
GENERAL
This worksheet is used for examining the capital improvements plan of the water system.
Revenue net totals from other worksheets and probable costs of a planned series of capital
improvements are added to and subtracted from a running account balance as a test of plan
feasibility. As a further test of feasibility, a selected part of the Water Fund balance is set aside
as the Emergency Operation and Reserve Fund, with the intention that monies of set aside will
not be used to fund new construction. The remainder of the Water Fund then becomes the
Capital Improvement Fund, which is available for new construction. The theoretical test ofplan
feasibility is the goal of not developing deficits in the Capital Improvement Fund.
COLUMN DESCRIPTIONS:
Columns A,0`and C: Plan Year, and Calendar Year, as defined for other pages.
Column C: "Operations Net Revenue": The amount from the like-named column on sheet S
("Rates ` '
Column D: "Fees Revenue": The amount from the "Total Fees" column on sheet Z("ER[&Fee
Projections" worksheet).
Column E: "Balance of Joint Accounts": The sum of the "Emergency Operating and Reserve
Fund" and the "Capital Improvement Fund" at year-end (fisca|). |n the general City budget, this
constitutes the Water Account. Calculated as previous balance, plus operating net revenue plus
fees revenue, plus investment income, also capital, less probable cost, less pipeline
construction participation.
Column F: "Investment |nconne": Projected income on Water Fund monies invested in Idaho
State Investment Pool. Calculated as initial Fund balance (column E), plus one-half ofrevenues
(columns C and D), multiplied by the "Probable Annual Investment Interest Rate" shown on
Sheet 1("8unnnna ).
Column G: "Capital |tenn": The short description ofe planned capital improvement scheduled
for the Plan Year. Operator input.
Column H: "Present Worth (Year 3OO7)": The current probable cost of the item described in
Column G for the same Plan Year. Operator input.
Column U: "Probable [ost": The probable cost at the time of construction of the item
designated for the Plan Year in Column G. Calculated as the Present Worth (Column Hvalue)
time the inflation factor for "Repairs and Construction").
Column J: "Pipeline Construction Perticipation": The projected costofparticipatinginthe"oversize cost" of pipeslareer1han8inchesandsnna||erthan16inchesinsystennex1ensionsby
developers. Calculated as hookups times "Water Con. Eq. Fee" constant from sheet 1
("Summary") times the inflation factor for Capital Costs.
Column K: "Emergency & Operating Reserve Fund": A sub-category within the Water Fund,
designated to fund emergency responses (such as emergency repairs) and to assure continued
operation during periods of revenue shortfall. The goal in setting the size of this fund istohave
a fund equivalent to six months' operating cost. Initially, the set-aside is selected for each of
the first three years. Fourth and subsequent years are computed by4Y6 annual increase.
Column L: "Capital Improvement Fund": The part of the Water Fund that can be used tofund
capital improvement projects. The test of workability of the capital plan is that this fund may
not go into deficit. Calculated as the "Balance of Joint Accounts" minus the "Emergency and
Operating Reserve Fund:.
Message
From: Kellie Rekow [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3D7C985412C940148AEA33EC75C9DED4-KREKOW]
Sent: 3/8/2018 12:15:56 PM
To: N L Bangle [[e-mail]]
CC: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Mike Davis - Holladay
Engineering ([e-mail]) [[e-mail]];'Cherese D. McLain' [[e-mail]]
Subject: RE: Water Rate study
Attachments: 2008, Descriptive notes for Rates Spreadsheet Items v1, Vern.pdf; 2008, LEASE-PURCHASE Rate Analysis formatted
6-27 current, Vern.pdf; 2017 Water Rate Study, HECO, Report Final.pdf
Hi Norm,
This is what I have found. I labeled the worksheets that were done by Vern Brewer back in 2007-2008 when the City was
reviewing Eagle Water Company. I'm also including our recent rate study for our own system. I wasn't sure if you
wanted that but better too much info than too little.
Let me know if I need to look further or if this is what you were expecting. If I can think of anything else I'll pass it along.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Monday, March 05, 2018 12:58 PM
To: Kellie Rekow <[e-mail]>
Cc: Stan Ridgeway <[e-mail]>
Subject: Water Rate study
Hi Kellie - Do you have a copy of the rate study that was completed regarding Eagle Water? If so can you send a copy to
me via email?
Thanks Kellie.
N L Bangle
Telephone [phone]
[e-mail]
CityEagle_00105
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
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as such. All information is subject to change without notice.
CityEagle_00106
Descriptive
items of Spreadsheet
"Rate Projections and probable Budgets"
Eagle Combined Water System, EG 080305
Sheet 1 "Summary Worksheet"
Given Values
1. "Probable Annual Investment Income Rate" is the projected long term average rate
of return to City funds invested in the Idaho Municipal Investments Pool.
Z. "Probable Annual COLA Increase Rate" is the projected average annual cost ofliving
adjustment based on the U.S. Consumer Price Index.
3. "Probable Annual Incentive Increase Rate" is the projected annual average incentive
salary increase for staff, which is a matter ofCity policy and any pertinent terms of
negotiated agreements with staff.
4. "Probab|eAnnua|[apite|[osts|nf|ationRate"isexpectedtoapp|yontheeveraQe,
both to equipment and implement purchases and to construction costs. This isa
simplification, and may involve a degree ofimprecision.
S. "Current Contract K4ininnunn Annual Rate Increase" is the nnininnunn annual service
charge increase written unto the operating agreement with UVV| for the Lexington-
Brookwood complex water system. |tis not pertinent except for a comparison to
the set of values shown on the Rates Worksheet.
6. "Probable Annual Bond Interest Rate" is the interest rate that was in place for DE(}
loans when the City decided to build the 1.0 Million Gallon Reservoir by the
proposed Sport Park. This rate may change at the time of loan dosing. It does not
a pply to other planned construction.
7. "Probable Bond Term, Years" applies tothe bond for 1.0 million gallon reservoir,
well and well hose rebuild in2OO7.
8. "Probable Bond Amount" applies to the bond for 1.0 million gallon reservoir, well
a nd well hose rebuild inZOO7.
9. "Annual Bond Payment" the theoretical capital recovery payment for the stated
bond principal, interest and term.
10. "Monthly Base Rate" starting base rate peruser per month. See rates worksheet for
more detail. (This is also the first item in Column Eof this sheet.}
11. "Quantity Rate per [CF" the rate for metered usage. Usage multiplied by this rate is
added to the base rate to determine the monthly charge for each respective
customer.
1Z. "Average Use perUser-K4onth"is the average of the most recent year of record for
the Lexington/Brookwood complex. "[CF means (l0O cubic feet).
13. "Average Monthly Billing" calculated as the sum of the base and product of quantity
rate times average use. "ER[" means "Equivalent Residential [ustonner."
14."Hook-up Fee" assumed value of hook-up fee for first plan year.
15. "Water Construction Equivalency Fee" assumed value for first year (The purpose of
this fee istofund the City in construction of 10 inch and 12 inch mains.)
16. "STL Fee" Storage and Trunk Line Fee instituted per Master Plan of 2005. (The
purpose of this fee is to fund construction of storage reservoirs and trunk lines 16
inches and larger).
17. Growth Rates and Buildout ERC Numbers" growth rate are used to compute
expected number ofhook-ups. "ER[8ui|douts" per area are upper limits on
cumulative hook-up calculations. All of these numbers are assumptions that can be
varied to view scenarios.
Rate Projections and Item Descriptions
Sheet 1 "'Summary Worksheet"
Data Fie|d — Oeschptions& Columns
Column A: Blank
Column B: "Plan Year" serves as reference for compounding calculations and formulas
in some other columns. Repeated on all pages as the standard row reference.
Column C: "CAL Year" the calendar year corresponds to the plan year, a reference given
on all pages.
Column D:"AVGER[" the projected everaQenunnberofequiva|entnesidentia|
customers, used to calculate probable billings. Tied 10 columns where the value is
calculated.
Column E: "Base Rate" projected base rate for the plan year. Established at Column K of
the Rates Page.
Column F: "Quantity Rate" projected quantity rate for the plan year. Established at
Column Lof the Rates Page.
Column G: "Area 8i||/K4o" equals Base plus Quantity Rate time Average Use (square ]14)
for the Plan Year.
Column H: "Revenue from Rates" equals "Average ERC" times "Average Bill per Month"
times 12 months per year.
Column K: "Revenue from Fees" is copied from Column K4of the "ER[6k Fee Projections
Page", where the value iscalculated.
Column J: "Operating Costs" is copied from Column F or Rates Worksheet page, where
the value is calculated.
Column K: "Scheduled Capital Costs" is copied from Column |of the Capital Place page
w here the items are listed and designated, and probable future values are calculated.
Column L: "Net Operating Revenue" is copied from Column Q of the Rates Worksheet
page, where the value iscomputed.
Column M: "Probable Investment Income" is copied from Column F of the Capital page,
where the value iscomputed.
Column yN: "Probable Account Ba|anoe"equals the projected yeapendsunnofthe
"Emergency and Operation Reserve Fund" and the "Capital Improvement Fund"
together these constitute the balance of the water account. Copied from Column Eof
the Capital Plan page, where the value iscalculated.
Rate Projections and Item Descriptions
SHEET 2 "ERC Projections and Probable Fee Revenues"
This page shows projected gnowthpatternsegnegatedintofoursub'aneas. Area 1us the service
area of the Lexington Hills/Brookwood system owned bythe City at the start of the calenclaryear
2007 and defined as the subject service area of the "WATER SERVICE CONTRACT-2004" between
the City of Eagle and United Water ofIdaho. Area Zis currently the certified service area ofEagle
Water Company. Area 3A is the area subject to special development agreements between the
City of Eagle and the developers of Eag|efie|d Subdivision and Legacy Subdivision, both are
located in the Western Expansion Area identified in the Amended Master Plan of November
3005. Area 38is the remainder of the Western Expansion Area.
Probable fee revenues computed here are the hook-up fees, storage and trunk line(STL) fees and
Water Construction Equivalency (VV[E) fees to be paid by new development on e per customer
basis. The hookup fee is required for all new users who are hooking up. The Storage and Trunk
Line (STL) fee is currently in force and is required for all hook-ups except those in Area 3A, where
the development agreement has waived the STL fees in consideration of supply and trunk line
construction to be performed by the developers. The VV[E fees are a recommendation not yet
enacted, for the purpose of funding "oversize charges" calculated of inch distribution mains
a nd the cost of size-required mains , where required mains are larger than 8 inches and snne||er
the 16 inches. Essentially, if the VV[E fees are instituted, they will be due for all new hook-ups
that owe STLfees.
|n the formulas for sub-area growth, the growth rates on the summary page are generally applied
area-by-area until the sub-area ER[ count reaches the Area Bui|dout assured number. For Area
3, it is assured that initial growth will be 100 until 2008, then 200 per year, then 25% per year (or
three years, then 8Y6 per year for the remainder of the plan 1ernn). |tis also assumed that all Area
3 growth will be in Area 3A until it reaches bui|dout, and subsequent growth will be in Area 3B.
N umerical growth is projected bynnu|tip|yingER[nunnberbv1p|usQrovvthnatenunnberofhook-
upspersub-areaisde1ernninedbysubtraction. Values are rounded for presentation but not for
The calculations of probable fee revenues include an inflation assumption. For each succeeding
plan year it is assumed that all fees are increased by the "Capital Costs Inflation Rate" It is
realized that council action to increase these fees may not be taken annually, but it is considered
probable that at the time such actions are taken, increases will be consistent with inflation since
the time each was previously set onamended. This assumption is intentionally selected asbeing
the implication of a straightforward "development funds infrastructure additions" policy.
Column Descriptions
Column & B: "Plan and CAL year" same ason Summary page.
Column C: "Area 1hook-ups" next year's projected Equiva|entResidentia|[us1onners,
(ERC's) minus this years.
Column D: "Area 1 on Summary Page" either a percentage shown in growth more than
last years ERC's or 2,620, whichever is less, beginning with a current value of 1,400.
Column E & F: Similar calculations for Area Z.
Column G, H 0& U: Similar calculations for Area 3, modified to reflect difference in fee
obligations for Area 3A and 38. The assumption that Area 3A will fill before 38begins
developing is conservative with regard to anticipated tinning of fee revenues.
Rate Projections and Item Descriptions
Column J: "Total ERC's" is the predicted overall size of the system in terms of customer
numbers. This value is used for projecting monthly service receipts, operating expenses
and pay roll on other pages.
Column K: "STL & WECF Fees Total" sum pf STL fee and WECF fee is multiplied by the
sum of hook-ups in Areas 1,2 and 3B from the respective columns. Unit STL and VVE[F
fees area increased annually by the "Capital Costs Inflation Rate" from the Summary
sheet as previously mentioned. Calculated sum is not evenly divisible, because the
number of hook-ups is not actually rounded.
Column L: "Hook-up Fees Total" calculated in a similar manner, with hook-up fees, per
summary page , multiplied by the sum of hook-ups in Areas 1,2,3A & 313, reflecting
obligation of all new services to pay the hook-up fee.
Column M: "Total Fees" calculated as the sum of "STL & WECF Fees" and "Hook-up
Fees"
CityEagle_001 10
Rate Projections and Item Descriptions
SHEET 3 "'Payroll and General Administrative AUUowanc="
Worksheet projects staffsizeandqua|ifica1ionsstructurebasedonassunnedstafftocustonner
ratios, and that projects tota|peyroUbesedontheassunnedcurnentpaysca|e,assunned
overheadfringera1io(ratioofnon^wagepayno||coststovvages),assunnedcos1of|ivinQ,and
incentive increase rates. Ratios of "other staff" costs are also included and extended topayroll
costs as a part of PWS compensation and an allowance for services to the Water System by
other City government.
CONSTANTS:
"Payroll Fringe to Wage Ratio" is the probable ratio of the sum of all payroll-based costs other
than wages (employer's social security contributions, health care contributions, workmen's
compensation premiums, unemployment insurance premiums, and other items ordinarily
included in "fringe")towage quoted as salary.
"P.W.S. Water Duty Ratio" is a portion of the effort of the Public Works Supervisor that is
accredited to the water system and compensated by the Water Fund, as a decimal fraction of
salary.
"General Admin. Allowance Ratio" is the ratio of an allowance paid by the Water Fund to the
General Fund to compensate other divisions of City government for efforts by those divisions
on behalf of the Water System. The allowance is calculated as the ratio given here multiplied
by the "payroll plus fringe." It is added to "Payroll Plus Fringe" to give "Total Peyro||"
"Probable COLA" is the projected averageCostofLivingA||ovvanceannua|vvageincnease
percentage, a value normally based on the Federal Government's Consumer Cost Index, and
hence not within the City's control.
"Probable Incentive Increment" is the projected probab|yannua|incentiveincneasepercentage
expected 1obe awarded by Council action. This value is elective in theory, but in practice, itis
an adjustment that is made in order to keep pace with the labor market so staff will not be
frequently hired away.
"Probable Base Salaries" are assumed for calculations first=plan-year salaries of various ranks
(qualification levels) ofemployees. These values as shown here are based onageneral
i mpression of the current labor market, and do not reflect either vigorous canvassing or results
of successful hiring negotiations.
COLUMN DESCRIPTIONS:
Columns A & B: "Plan Year" and CAL Year" are the same as the row reference columns on all
other pages.
Column C: Number ER[is copied from Column ]of Page 2,"ER[ and Fee Projections", where
the values are calculated.
Column D: "No PVVS"is the projected nunnberofennp|oyeesinthecateQory"PVVS" "Public
CityEagle_001 11
Rate Projections and Item Descriptions
Column E: "PVVSSa|aryShene"istheannountofthePVVSsa|arythatischerQedtothePVVS
salary that is charged to the Water System Payroll. |tis calculated as the PVVS base salary given,
m ultiplied by the VWS Water Duty Ratio", increased by the COLA and incentive inflators each
year.
Column F: "No Op. 4" the projected nunnberofstaff(notcountingthePVV)vvhohaveOperator
4 ratinQ. It is assumed that there will be one per 12,000 customers; hence only one throughout
the plan period.
Column G: "Op. 4 Salaries" computed as number of Operator 4's (from Column F) multiplied by
Operator 4 salary, which is base salary with inflators for COLA and incentive applied every year.
Columns &U: Number of staff with Operator 3 qualification and their total salaries, calculated
similarly. Number of Operator 3's is 1 per each 6,000 users or remainder above a multiple of
6,000: 1 for 3 years, then Z, for values projected in1hisp|an(vvou|dchanQeifassunnedgrovv1h
rates were changed).
Columns J@&K: Analogous calculations for staff with Operator 3qualifications. Projected
number of Operator 2's is 1 per each 4,000 users or remainder after division by 4,000.
Columns L & M: Operator 1's and salaries, 1 per 4,000, similarly calculated.
Columns yN && 0: Clerical 3's (billing staff), I per 4,000, similarly calculated.
Column P: "Total Salaries" the sum of salaries computed for the plan year in Columns E,G,|,K,
K4, and [).
Column Q: "Salaries Plus Fringe" amount in Column P, multiplied by the coefficient ("Payroll
Fringe to Wage Ratio" plus one).
Column R: "General Administrative A||ovvance" a contribution 10 the General Fund from the
Water Fund to compensate for administrative and other services of City Government in support
of the Water System —ca|cu|ated as Column [} value multiplied by General Administrative
Allowance Ratio.
Column S: "Total Payroll" — the sum of Columns Q and R.
CityEagle_001 12
Rate Projections and Item Descriptions
SHEET 4: "Direct and Regular Operating Costs"
COMMENTS:
Cost figures are generally calculated as unit cost, multiplied 6v number ofunits, multiplied by
the inflator raised to the power of elapsed years. Inflators used are shown in the given
information as "inflation Rates (annual)", with separate assumptions (or "energy", "Materials
and equipment", and "repairs and construction" This variegation of inflation rates reflects
recent trends.
[ategohesofexpensesare|unnpedforconvenienceinto"pow/er","chennica|s","Oepredetion
andSohedu|edK4aintenance","Ennergenoy[}penationandRepairs"("EnnergencyFund"),
"Meter Replacement", "Consumables", "Implement Depreciation", and "Vehicle Depreciation".
Categories, respectively, ~refer to:
1. Power Cost: the probable cost of electrical / energy for system operations;
3. Chemical Cost: based on chlorination and corrosion inhibitor addition only.
3. "System Depreciation and Maintenance" An allowance for costs arising from "wear and
tear" of system installed equipment, including SCADA year, pumps, main line valves,
hydrants, and the like. Individual service meter replacement ise separate item.
4. "Emergency Fund A||ovvanoe" Provides for pipeline repairs and other system repairs
arising from incidental damage (i.e. lightning strikes, vehicle impact, structure fire, and
the like), and for a fund to pay for emergency aid for operations. Note that the
accumulation of this quantity is not necessarily equal to the reserve fund designated
"Emergency and Operating Reserve Fund",as this value is projected tonnatchpnobab|e
qualifying expenditures, rather than to meet extreme situational demands.
S. "Meter Replacement Fund" required cost based on replacing service meters at ten-year
i ntervals.
6. "[onsunnab|es" this isa miscellaneous expense item, that includes office supplies and
materials postage, janitorialservices, vehicle fuel and maintenance supplies, property
i nsurance, liability insurance, telephone service, and other incidental items.
7. "Implement Depreciation Fund" this provides funds (or regular replacement of
implements (backhoe, dump truck, implement trailer, and the like), based on a general
assumption that implements will be held about 6 years and implement inventory per
operator will be about $3S,OOO\
8. "Vehicle Depreciation Fund" This provides funds for regular replacement ofoperators'
vehicles, assuming that average vehicle cost will be about $30,000 and vehicles will be
held about five years.
CityEagle_001 13
Rate Projections and Item Descriptions
COLUMN DESCRIPTIONS:
Column A: "Plan Year": Same ason other sheets, the row identifier, and reference for
exponential expansions.
Column 13: "CAL Year" The calendar year of the Plan Year.
Column C: "Number ER[" projected number of Equivalent Residential Customers, copied from
Column
Column D: "Water Use, [[F" Calculates probable total water use for year, by multiplying
"Number ERC" times 12 times "Average use, CCF per user — month" from the Summary page.
Column E: "Water Use, Ac- Ft" converts Column O value to acre-feet asa convenience for
supplying planning. This value is not cross-referenced in the worksheet.
Column F: "Power Use, KVVH" calculates the probable power use (or pumping projected asthe
unit power use shown in GIVEN, multiplied by the value of Column D.
Column G: "Power Cost" projects probable power cost per pumping by multiplying the Column
F va|uetinnesthe"8esePovver[ost"va|uetinnestheEnergy|nf|etionFactorca|cu|etedasthe
compounded co-efficient of inflation at the Energy Inflation Rate in the GIVEN values.
Column H: "Chemical Cost" projects the probable cost of water treatment chemicals (sodium
hypochlorite and corrosion inhibitor) by multiplying the Column D value times the "Base
Chemical Cost" from GIVEN times the inflation factor based on the "Materials and Equipment"
inflation rate from GIVEN.
Column U: "System Depreciation and Sch. K4aint." projects system maintenance and
replacement costs by similar calculation, using the number ofER['s, "Sys. Depnec. & K4aint."
[onstantfronnG|VEN,12nnonthsperyear,andaninf|ationfactorexpandedfronnthe"Repairs
and [onstruction" inflation rate from GIVEN.
Column J: "Consumable Cost" projects annua|"consunnab|e"costsbasedonthe"consunnab|es"
constant in GIVEN, the number of ERC's, 12 months per year and an inflation factor expanded
from the "Materials and Equipment" inflation rate inGIVEN.
Column K: "Emergency Operation and Repair A||ovvance"projects thepnobab|ecostsof
ennergencyandnon'schedu|edpairsandnep|acennentsbyasinni|arnnu|tip|ication,basedon
number of ERC's, "Emergency Fund A||ovv" constant from GIVEN 12 months per year, and an
inflation factor expanded from the "Repairs and Construction" inflation rate from GIVEN.
Column L: "Meter Replacement Fund" projects theprobab|efundingnaquiredfornneter
replacements by a similar multiplication based on number of ERC's, 12 months per year, "Meter
Repl. Fund" constant from GIVEN, and an inflation factor expanded from the "Materials &
Equipment" inflation rate from GIVEN.
Column M: "No. Oper's" total number of operators; the sum of Class A, Class 3, Class 2 and
Class 1 operations from the "Staff and Payro||" worksheet.
Column yN: "Vehicle and Implement Depreciation" projects theprobab|ecostsofkeepinQanup-
10-datesheetofvehidesandinnp|ennen1sbyasinni|arnnu|dp|ication,basedonthenunnberof
operators, the sum of the "Implement Depreciation Fund" constant from GIVEN, 12 months per
year, and an inflation factor expanded from the "Materials and Equipment" inflation rate.
Column 0: "Sum Exp. Funds" the sum of Columns G, H, |, J, K, Land N representing all expected
non-payroll expenses.
Column P: "Expenses Plus Payroll" the sum of Column 0 and Column S from the "Staff and
Payroll page. This is the projected required non-capital budget for the Water System.
CityEagle_001 14
Rate Projections and Item Descriptions
SHEET 5: "Rates Worksheet"
GENERAL:
The rates worksheet tests selected rate structure, which is entered in columns K and L as an
operator input, against the projected openatingcosttoconnpanepnobab|einconneandprobab|e
out go. As generated outputs, it produces "revenue from rates" and "operations net" (the
difference between rates revenue and operating costs).
Given Information (Highlight above grid of data):
A.^BondPaynnent":oopiedfronnthesunnnnarypage,vvheneitisca|cu|ated. The theoretical
annual payment for the bond for the 1.0 MG water reservoir, Brookwood Well and
Lexington Well #1Well House Rebuild.
B. "Required Premises Present Worth": Probable cost of a shop and office building for
operation and maintenance of the system, consisting of a staff management office, a
SCADA center, a two-bay wheeled equipment maintenance shop, a staff locker room
and sanitary facility, a staff break and training room, a materials and parts storeroom,
and a fenced parking lot for vehicles and implements.
C. "Premises Rental Ratio (annual)": Ratio of probable annual premises rent to probable
premises construction cost.
O. "Premises Maintenance Ratio": Ratio of probable annual premises maintenance cost to
probable premise constructions cost.
COLUMN DESCRIPTIONS:
Columns A, B, and C: Plan Year Calendar Year and Number ofER[,sas previously described.
Column D: "Premises Rent": Accounts for probability that premises will be rented until a shop
a nd staff office facility is completed. The capital plan rent is expected to be paid until
completion of construction, projected astheendofyeer3O12. Computed es "Premises Present
Worth" time "Premises Rental Ratio" times an inflation factor expanded based on the "Repairs
a nd [onstruction"inflation rate. After year 2O12, the rent is projected asafinedannountbased
one lease purchase agreement anticipated and fund construction. The formula for lease —
purchase rent is present worth times construction inflation factor for 3O12 times Lease-
Purchase Renta|Ratio.
Column E: "Premises K4aint."" The probable cost of maintenance of the shop and office facility
after it is built. Computed as "Premises Present Worth" times "Premises Maintenance Ratio"
times an inflation factor expanded based on the "Repairs and Construction" inflation rate.
Column F: "Total [)p. Cost": The total cost of operating the system for the year, including
revenue bond payments rents, premises maintenance and the cost computed on the
"Operating Costs" worksheet. Calculated by addition of the pertinent items.
Column G: "Fixed Operating [ost": The operating costs that are not variable according to
either quantity of water produced or staff payroll. Included: premises rent, premises
maintenance, bond payment, depreciation of system equipment, meter replacement, and
emergency allowance.
CityEagle_001 15
Rate Projections and Item Descriptions
Column H: "Variable Operating [osts": The projectedtota|ofquantitvne|atedcosts(energy
and chemicals) and payroll related costs.
Column U: "Theoretical Base Rate": The monthly base rate that would exactly defray the
projected fixed costs. Computed for comparison purposes.
Column J: "Theoretical Quantity Rate": The quantity rate that, given the assumed average use
a nd projected number of ER['s, would exactly defray the projected variable costs. Computed
for comparison purposes.
Columns K and L: "Selected Base and Quantity Rates": The base and quantity rates employed
i n the financial projections ofthisvvorkbook. These values are not generated bythe
spreadsheet, but are entered as operator inputs.
Columns M and yN: "Present Contract Base and Quantity Rates": The base and quantity rates
that would be required to extend the existing operating contract with United Water Idaho into
the future. Computed of comparison purposes.
Column 0: "Average Bi||": The projectedaveragennonth|ybi||atthese|ectedbaseand
operating rates and projected averagennon1h|yuse.
Column P: "Revenue from Rates": Computed by multiplying average bill times 13 months times
number ofERC's.
Column Q: "Operations Net": Computed 6v subtracting total operating cost from Revenue
from Rates.
Column R: "Accumulated Operations Net": The running total of amounts in Column P. This
sum of money never exists in any account; the surplus is actually taken into the Capital
I mprovements Fund or the Emergency and Operating Reserve Fund. Calculated for comparison
CityEagle_001 16
Rate Projections and Item Descriptions
SHEET 6: "'Capital Plan Worksheet"
GENERAL
This worksheet is used for examining the capital improvements plan of the water system.
Revenue net totals from other worksheets and probable costs of a planned series of capital
improvements are added to and subtracted from a running account balance as a test of plan
feasibility. As a further test of feasibility, a selected part of the Water Fund balance is set aside
as the Emergency Operation and Reserve Fund, with the intention that monies of set aside will
not be used to fund new construction. The remainder of the Water Fund then becomes the
Capital Improvement Fund, which is available for new construction. The theoretical test ofplan
feasibility is the goal of not developing deficits in the Capital Improvement Fund.
COLUMN DESCRIPTIONS:
Columns A,0`and C: Plan Year, and Calendar Year, as defined for other pages.
Column C: "Operations Net Revenue": The amount from the like-named column on sheet S
("Rates ` '
Column D: "Fees Revenue": The amount from the "Total Fees" column on sheet Z("ER[&Fee
Projections" worksheet).
Column E: "Balance of Joint Accounts": The sum of the "Emergency Operating and Reserve
Fund" and the "Capital Improvement Fund" at year-end (fisca|). |n the general City budget, this
constitutes the Water Account. Calculated as previous balance, plus operating net revenue plus
fees revenue, plus investment income, also capital, less probable cost, less pipeline
construction participation.
Column F: "Investment |nconne": Projected income on Water Fund monies invested in Idaho
State Investment Pool. Calculated as initial Fund balance (column E), plus one-half ofrevenues
(columns C and D), multiplied by the "Probable Annual Investment Interest Rate" shown on
Sheet 1("8unnnna ).
Column G: "Capital |tenn": The short description ofe planned capital improvement scheduled
for the Plan Year. Operator input.
Column H: "Present Worth (Year 3OO7)": The current probable cost of the item described in
Column G for the same Plan Year. Operator input.
Column U: "Probable [ost": The probable cost at the time of construction of the item
designated for the Plan Year in Column G. Calculated as the Present Worth (Column Hvalue)
time the inflation factor for "Repairs and Construction").
Column J: "Pipeline Construction Perticipation": The projected costofparticipatinginthe"oversize cost" of pipeslareer1han8inchesandsnna||erthan16inchesinsystennex1ensionsby
developers. Calculated as hookups times "Water Con. Eq. Fee" constant from sheet 1
("Summary") times the inflation factor for Capital Costs.
Column K: "Emergency & Operating Reserve Fund": A sub-category within the Water Fund,
designated to fund emergency responses (such as emergency repairs) and to assure continued
operation during periods of revenue shortfall. The goal in setting the size of this fund istohave
a fund equivalent to six months' operating cost. Initially, the set-aside is selected for each of
the first three years. Fourth and subsequent years are computed by4Y6 annual increase.
Column L: "Capital Improvement Fund": The part of the Water Fund that can be used tofund
capital improvement projects. The test of workability of the capital plan is that this fund may
not go into deficit. Calculated as the "Balance of Joint Accounts" minus the "Emergency and
Operating Reserve Fund:.
CityEagle_001 17
RATE PROJECTION AND PROBABLE BUDGET, 20 YR., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineering Company
SUMMARY WORKSHEET
GIVEN:
Probable Annual Investment Income Rate 5.00% Probable Bond Amount $2,590,000.00 Hook-up Fee $850.00 AREA
Probable Annual COLA Increase Rate 2.50%Annual Bond Payment $178,137.31 Water Con.Eq. Fee $450.00 ERC
Probable Annual Incentive Increase Rate 1.50%STL $1,500.00 BUILDOUT
Probable Annual Capital Costs Inflation Rate 5.00%Monthly Base Rate $8.50 Growth, Area 1 7.00%2,620
Current Contract Minimum Annual Rate Increas(2.00%Quantity Rate (per CCF)$1.19 Growth, Area 2 7.00%4,820
Probable Annual Bond Interest (Reservoir)3.25%Average Use, CCF per user-mo.10.84 Growth, Area 3 8.00%n/a
Probable Bond Term, Years 20
Average Monthly Billing per ERC $21.40
Plan
Year
CAL
Year
AV'G
ERC
Base
Rate
Quantity
Rate
AV'G
BILL/ MO
Revenue from
Rates
Revenue from
Fees
Operating
Costs
Scheduled
Capital Costs
Net Operatiing
Revenue
Probable Probable Account
Investment Income Balance
$121,835.52
1 2007 4,800 $8.50 $1.19 $21.40 $1,232,616.96 $274,400.00 $1,044,125.71 $40,000.00 $10,353.94 $13,210.62 $335,700.09
2 2008 5,236 $9.00 $1.21 $22.12 $1,389,617.64 $1,097,258.40 $1,149,487.25 $210,000.00 $61,993.08 $45,766.29 $1,121,466.51
3 2009 5,796 $9.00 $1.21 $22.12 $1,538,112.46 $1,319,922.44 $1,346,389.04 $441,000.00 $13,586.11 $89,411.04 $1,822,152.58
4 2010 6,380 $9.25 $1.23 $22.58 $1,729,025.73 $1,469,157.12 $1,533,630.42 $231,525.00 $17,258.00 $128,268.01 $2,896,637.89
5 2011 6,917 $9.25 $1.23 $22.58 $1,874,447.38 $1,558,644.98 $1,611,114.15 $170,170.88 $85,195.92 $185,927.92 $4,258,122.94
6 2012 7,513 $9.50 $1.23 $22.83 $2,058,618.02 $1,775,275.31 $1,695,026.06 $3,765,030.61 $185,454.65 $261,924.40 $2,368,038.09
7 2013 7,898 $9.50 $1.23 $22.83 $2,164,045.53 $967,693.69 $1,715,285.50 $1,474,105.20 $270,622.72 $149,359.81 $2,043,771.53
8 2014 8,289 $9.50 $1.23 $22.83 $2,271,198.51 $911,838.27 $2,047,299.60 $29,549.11 $45,761.61 $126,128.57 $2,843,807.49
9 2015 8,750 $9.50 $1.23 $22.83 $2,397,612.22 $1,078,350.83 $2,132,028.81 $31,026.56 $87,446.10 $171,335.30 $3,835,847.47
10 2016 9,041 $9.50 $1.23 $22.83 $2,477,176.49 $730,427.20 $2,208,881.43 $629,063.59 $90,157.75 $212,307.00 $4,122,285.75
1 1 2017 9,219 $9.75 $1.25 $23.30 $2,577,565.30 $600,944.84 $2,281,211.40 $34,206.79 $118,216.58 $224,093.32 $4,934,753.28
12 2018 9,361 $9.75 $1.25 $23.30 $2,617,352.60 $681,471.45 $2,353,825.53 $3,078,610.84 $85,389.76 $265,909.19 $2,779,390.64
13 2019 9,515 $9.75 $1.25 $23.30 $2,660,322.89 $772,788.62 $2,429,861.88 $1,113,430.92 $52,323.69 $159,597.34 $2,526,471.20
14 2020 9,681 $9.75 $1.25 $23.30 $2,706,730.80 $876,342.29 $2,509,523.82 $888,140.75 $19,069.67 $148,708.86 $2,541,610.55
15 2021 9,860 $10.00 $1.27 $23.77 $2,812,083.03 $993,772.16 $2,593,029.76 $41,578.56 $40,915.95 $152,947.73 $3,527,954.44
16 2022 10,054 $10.00 $1.27 $23.77 $2,867,297.67 $1,126,937.63 $2,680,614.49 $957,346.43 $8,545.87 $204,784.81 $3,729,761.35
17 2023 10,263 $10.25 $1.29 $24.23 $2,984,416.86 $1,277,947.27 $2,772,530.59 $896,070.02 $33,748.96 $219,280.47 $4,159,283.66
18 2024 10,488 $10.25 $1.29 $24.23 $3,050,084.15 $1,449,192.21 $2,869,050.01 $48,132.38 $2,896.83 $244,266.41 $5,574,600.83
19 2025 10,732 $10.50 $1.31 $24.70 $3,181,123.20 $1,643,383.96 $2,970,465.82 $50,539.00 $32,520.07 $320,627.64 $7,256,478.23
20 2026 10,996 $10.50 $1.31 $24.70 $3,259,192.92 $1,863,597.41 $3,077,094.07 $1,163,660.56 $3,961.54 $409,512.89 $8,070,382.78
21 2027 11,280 $10.75 $1.33 $25.17 $3,406,695.44 $2,113,319.47 $3,189,275.89 $6,898,574.03 $39,282.24 $457,334.18 $3,442,104.00
DATE SPECIFIC WORKING DRAFT
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE PAGE 1
CityEagle_00118
Rate Projections and Probable Budgets 20 yr., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineeering Company
L ERC Projections and Probable Fee Revenues
Plan
Year
CAL Area 1 Area 1 Area 2 Area 2 Area 3A Area 313 Area 3 TOTAL STL & WECF Hookup Total
Year (East)(East)(EWC)(EWC)Leg&Efd RemWest (West)ERC's Fees Fees Fees
Hookups ERC's Hookups ERC's Hookups Hookups ERC's Total Total
1 2007
2 2008
3 2009
4 2010
5 2011
6 2012
7 2013
8 2014
9 2015
10 2016
98 1400
105 1498
112 1603
120 1715
128 1835
137 1964
147 2101
157 2248
168 2405
46 2574
3400
238 3638
255 3893
272 4165
292 4457
312 4769
51 4820
0 4820
0 4820
0 4820
0 0 0
100 0 100
200 0 300
200 0 500
125 0 625
156 0 781
196 0 977
244 0 1221
304 0 1525
0 122 1647
4,800
5,236
5,796
6,380
6,917
7,513
7,898
8,289
8,750
9,041
$191,100.00
$702,005.85
$788,703.57
$886,108.46
$995,542.86
$1,118,492.40
$518,444.94
$431,789.65
$485,115.67
$508,690.37
$83,300.00
$395,252.55
$531,218.86
$583,048.66
$563,102.12
$656,782.91
$449,248.75
$480,048.63
$593,235.16
$221,736.83
$274,400.00
$1,097,258.40
$1,319,922.44
$1,469,157.12
$1,558,644.98
$1,775,275.31
$967,693.69
$911,838.27
$1,078,350.83
$730,427.20
1 1 2017
12 2018
13 2019
14 2020
15 2021
16 2022
17 2023
18 2024
19 2025
20 2026
21 2027
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 2620
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
0 4820
Notes: Growth Rates and Fee Rates from Summary Sheet, Page 1
0 132 1779
0 142 1921
0 154 2075
0 166 2241
0 179 2420
0 194 2614
0 209 2823
0 226 3048
0 244 3292
0 263 3556
0 284 3840
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE DATE SPECIFIC WORKING DRAFT
9,219
9,361
9,515
9,681
9,860
10,054
10,263
10,488
10,732
10,996
1 1,280
$418,515.15
$474,596.18
$538,192.07
$610,309.81
$692,091.33
$784,831.56
$889,998.99
$1,009,258.86
$1,144,499.55
$1,297,862.48
$1,471,776.06
$182,429.68
$206,875.26
$234,596.54
$266,032.48
$301,680.83
$342,106.07
$387,948.28
$439,933.35
$498,884.42
$565,734.93
$641,543.41
$600,944.84
$681,471.45
$772,788.62
$876,342.29
$993,772.16
$1,126,937.63
$1,277,947.27
$1,449,192.21
$1,643,383.96
$1,863,597.41
$2,113,319.47
Page 2
CityEagle_00119
Rate Projections and Probable Budgets 20 yr., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineering Company
Payroll and General Administrative Allowance
Probable Base Salaries:
Payroll Fringe to Wage Ra-0.5 Public Works Sup't.$65,000.00
P. W. S. Water Duty Ratio 0.75 Operator 4 $55,000.00
General Admin. Allowance 0.2 Operator 3 $50,000.00
Operator 2 $40,000.00
Probable COLA 2.50%Operator 1 $35,000.00
Probable Incentive Increm(1.50%Clerical $25,000.00
Plan
Year
CAL
Year
Number
ERC
No.
PWS
PWS Sal
Share
No.
Op 4
Op. 4
Salaries
No.
Op 3
Op3 Salaries No.
Op 2
Op 2
Salaries
No.
Op 1
Op 1
Salaries
No.
Cler 2
Cler 2
Salaries
Total Salaries Salaries plus
Fringe
Gen. Admin.
Allowance
TOTAL
PAYROLL
0
1 2007 4,800 1 $48,750.00 1 $55,000.00 0 $0.00 2 $80,000.00 2 $70,000.00 2 $50,000.00 $303,750.00 $455,625.00 $91,125.00 $546,750.00
2 2008 5,236 1 $50,718.28 1 $57,220.63 0 $0.00 2 $83,230.00 2 $72,826.25 2 $52,018.75 $316,013.91 $474,020.86 $94,804.17 $568,825.03
3 2009 5,796 1 $52,766.03 1 $59,530.91 0 $0.00 2 $86,590.41 2 $75,766.61 2 $54,119.01 $328,772.97 $493,159.45 $98,631.89 $591,791.34
4 2010 6,380 1 $54,896.46 1 $61,934.47 1 $56,304.06 2 $90,086.50 2 $78,825.69 2 $56,304.06 $398,351.24 $597,526.86 $119,505.37 $717,032.23
5 2011 6,917 1 $57,112.90 1 $64,435.07 1 $58,577.34 2 $93,723.74 2 $82,008.27 2 $58,577.34 $414,434.67 $621,652.00 $124,330.40 $745,982.41
6 2012 7,513 1 $59,418.84 1 $67,036.64 1 $60,942.40 2 $97,507.84 2 $85,319.36 2 $60,942.40 $431,167.47 $646,751.20 $129,350.24 $776,101.44
7 2013 7,898 1 $61,817.87 1 $69,743.24 1 $63,402.95 2 $101,444.72 2 $88,764.13 2 $63,402.95 $448,575.86 $672,863.78 $134,572.76 $807,436.54
8 2014 8,289 1 $64,313.77 1 $72,559.13 1 $65,962.84 3 $158,310.82 3 $138,521.97 3 $98,944.26 $598,612.79 $897,919.18 $179,583.84 $1,077,503.02
9 2015 8,750 1 $66,910.44 1 $75,488.70 1 $68,626.09 3 $164,702.62 3 $144,114.79 3 $102,939.14 $622,781.78 $934,172.67 $186,834.53 $1,121,007.21
10 2016 9,041 1 $69,611.95 1 $78,536.56 1 $71,396.87 3 $171,352.49 3 $149,933.43 3 $107,095.31 $647,926.60 $971,889.89 $194,377.98 $1,166,267.87
1 1 2017 9,219 1 $72,422.53 1 $81,707.47 1 $74,279.52 3 $178,270.84 3 $155,986.99 3 $111,419.28 $674,086.63 $1,011,129.95 $202,225.99 $1,213,355.94
12 2018 9,361 1 $75,346.59 1 $85,006.41 1 $77,278.55 3 $185,468.53 3 $162,284.96 3 $115,917.83 $701,302.88 $1,051,954.32 $210,390.86 $1,262,345.18
13 2019 9,515 1 $78,388.71 1 $88,438.54 1 $80,398.68 3 $192,956.82 3 $168,837.22 3 $120,598.01 $729,617.98 $1,094,426.97 $218,885.39 $1,313,312.37
14 2020 9,681 1 $81,553.65 1 $92,009.25 1 $83,644.77 3 $200,747.45 3 $175,654.02 3 $125,467.16 $759,076.31 $1,138,614.46 $227,722.89 $1,366,337.36
15 2021 9,860 1 $84,846.38 1 $95,724.12 1 $87,021.93 3 $208,852.63 3 $182,746.05 3 $130,532.90 $789,724.02 $1,184,586.02 $236,917.20 $1,421,503.23
16 2022 10,054 1 $88,272.05 1 $99,588.98 1 $90,535.44 3 $217,285.06 3 $190,124.43 3 $135,803.16 $821,609.12 $1,232,413.68 $246,482.74 $1,478,896.42
17 2023 10,263 1 $91,836.04 1 $103,609.89 1 $94,190.81 3 $226,057.94 3 $197,800.70 3 $141,286.21 $854,781.59 $1,282,172.39 $256,434.48 $1,538,606.86
18 2024 10,488 1 $95,543.92 1 $107,793.14 1 $97,993.76 3 $235,185.03 3 $205,786.90 3 $146,990.64 $889,293.40 $1,333,940.10 $266,788.02 $1,600,728.12
19 2025 10,732 1 $99,401.50 1 $112,145.29 1 $101,950.26 3 $244,680.63 3 $214,095.55 3 $152,925.39 $925,198.62 $1,387,797.93 $277,559.59 $1,665,357.51
20 2026 10,996 1 $103,414.84 1 $116,673.15 1 $106,066.50 3 $254,559.61 3 $222,739.66 3 $159,099.75 $962,553.51 $1,443,830.27 $288,766.05 $1,732,596.32
21 2027 11,280 1 $107,590.21 1 $121,383.83 1 $110,348.94 3 $264,837.45 3 $231,732.77 3 $165,523.41 $1,001,416.61 $1,502,124.92 $300,424.98 $1,802,549.90
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE DATE SPECIFIC WORKING DRAFT Page 3
CityEagle_00120
Rate Projections and Probable Budgets 20 Yr., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineering Company
Direct and Regular Operating Costs
GIVEN:
Base Power Cost $0.0500 per KWH Implement Depreciation Fund $500.00 per Op-Mo
Power Use 1.5 KWH/CCF Vehicle Depreciation Fund $500.00 per Op-Mo
Base Chemical Cost $0.0250 per CCF
Sys. Deprec. & Maint.$0.60 per U.-M.Inflation Rates (annual):
Emerg. Fund Allow.$0.40 per U.-M.Energy 0.50%
Meter Repl. Fund $2.00 per U.-M.Materials & Equipment 1.50%
Consumeables $0.50 per U.-M.Repairs & Construction 3.00%
Plan
Year
CAL
Year
Number
ERC
Water Use
CCF
Water Use
Ac.-Ft.
Power Use
KWH
Power
Cost $
Chem.
Cost $
System Emergency
Depreciation & Consumeables Oper. & Repair
Sch. Maint. $ Cost $ Allowance, $
Meter
Replacement
Fund $
No.
Oper's.
Veh&Imp
Dep.$
Sum
Exp. Funds
Expenses Plus
Payroll
1 2007 4,800 624,384 1,433.4 936,576 $46,828.80 $15,609.60 $0.00 $28,800.00 $0.00 $0.00 5 $60,000.00 $151,238.40 $697,988.40
2 2008 5,236 681,099 1,563.6 1,021,648 $51,337.83 $17,282.88 $38,830.18 $31,887.24 $25,886.78 $0.00 5 $60,900.00 $226,124.91 $794,949.94
3 2009 5,796 753,881 1,730.7 1,130,822 $57,107.92 $19,416.68 $44,268.96 $35,824.14 $29,512.64 $143,296.55 5 $61,813.50 $391,240.39 $983,031.74
4 2010 6,380 829,937 1,905.3 1,244,906 $63,183.65 $21,696.19 $50,197.13 $40,029.86 $33,464.75 $160,119.45 6 $75,288.84 $443,979.88 $1,161,012.11
5 2011 6,917 899,740 2,065.5 1,349,610 $68,840.27 $23,873.78 $56,051.59 $44,047.57 $37,367.73 $176,190.28 6 $76,418.18 $482,789.39 $1,228,771.79
6 2012 7,513 977,323 2,243.6 1,465,985 $75,150.15 $26,321.37 $62,711.38 $48,563.41 $41,807.59 $194,253.65 6 $77,564.45 $526,372.00 $1,302,473.45
7 2013 7,898 1,027,375 2,358.5 1,541,062 $79,393.79 $28,084.40 $67,900.69 $51,816.24 $45,267.13 $207,264.95 6 $78,727.92 $558,455.11 $1,365,891.65
8 2014 8,289 1,078,245 2,475.3 1,617,368 $83,741.61 $29,917.13 $73,400.69 $55,197.65 $48,933.79 $220,790.61 8 $106,545.11 $618,526.60 $1,696,029.62
9 2015 8,750 1,138,260 2,613.1 1,707,390 $88,844.63 $32,056.03 $79,810.72 $59,143.97 $53,207.14 $236,575.90 8 $108,143.29 $657,781.69 $1,778,788.89
10 2016 9,041 1,176,033 2,699.8 1,764,049 $92,251.89 $33,616.60 $84,933.00 $62,023.25 $56,622.00 $248,093.02 8 $109,765.44 $687,305.20 $1,853,573.07
1 1 2017 9,219 1,199,176 2,752.9 1,798,764 $94,537.68 $34,792.33 $89,202.55 $64,192.48 $59,468.36 $256,769.94 8 $111,411.92 $710,375.25 $1,923,731.19
12 2018 9,361 1,217,687 2,795.4 1,826,530 $96,476.94 $35,859.32 $93,296.86 $66,161.11 $62,197.91 $264,644.44 8 $113,083.10 $731,719.68 $1,994,064.86
13 2019 9,515 1,237,678 2,841.3 1,856,517 $98,551.15 $36,994.76 $97,673.42 $68,256.02 $65,115.61 $273,024.07 8 $114,779.34 $754,394.37 $2,067,706.74
14 2020 9,681 1,259,269 2,890.9 1,888,903 $100,771.68 $38,204.72 $102,358.59 $70,488.41 $68,239.06 $281,953.63 8 $116,501.03 $778,517.12 $2,144,854.48
15 2021 9,860 1,282,587 2,944.4 1,923,880 $103,150.86 $39,495.84 $107,381.59 $72,870.55 $71,587.73 $291,482.18 8 $118,248.55 $804,217.29 $2,225,720.51
16 2022 10,054 1,307,770 3,002.2 1,961,655 $105,702.08 $40,875.40 $112,774.70 $75,415.86 $75,183.14 $301,663.45 8 $120,022.28 $831,636.92 $2,310,533.34
17 2023 10,263 1,334,968 3,064.7 2,002,452 $108,439.89 $42,351.38 $118,573.71 $78,139.07 $79,049.14 $312,556.27 8 $121,822.61 $860,932.07 $2,399,538.93
18 2024 10,488 1,364,342 3,132.1 2,046,513 $111,380.07 $43,932.50 $124,818.21 $81,056.27 $83,212.14 $324,225.08 8 $123,649.95 $892,274.21 $2,493,002.33
19 2025 10,732 1,396,065 3,204.9 2,094,098 $114,539.73 $45,628.33 $131,552.10 $84,185.11 $87,701.40 $336,740.43 8 $125,504.70 $925,851.80 $2,591,209.31
20 2026 10,996 1,430,327 3,283.6 2,145,491 $117,937.47 $47,449.34 $138,824.02 $87,544.91 $92,549.34 $350,179.63 8 $127,387.27 $961,871.98 $2,694,468.30
21 2027 11,280 1,467,330 3,368.5 2,200,994 $121,593.45 $49,407.01 $146,687.85 $91,156.84 $97,791.90 $364,627.36 8 $129,298.08 $1,000,562.49 $2,803,112.39
Notes: ERC from ERC & Fee Projection Sheet, Page 2
Water Use from Summary, Sheet, Page 1
Operators from Staff and Payroll Sheet, Page 3
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE DATE SPECIFIC WORKING DRAFT Page 4
CityEagle_00121
Rate Projections and Probable Budgets 20 Yr., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineering Company
Rates Worksheet
Bond Payment $178,137.31 perYr.
Premises Rental Ratio (annual)
Required Premises Present Worth
0.12 Premises Maintenance Ratio 0.02
$1,400,000.00
Lease-Purchase Rental Ratio 0.08
(Assumption: Premises for maintenance shop and staff office are constructed by lease-purchase in 2012, lowering rent thereafter.)
Plan
Year
CAL
Year
Number
ERC
Premises
Rent
Premises
Maint.
Total Op
Cost
Fixed
Op. Cost
Present
Theoretical Selected Contract Basis
Variable Base Quantity Base Quantity Base Quantity Av'g Bill
Op. Cost $/Mo. $/CCF $/Mo. $/Mo. $/Mo $/CCF $/Mo.
Revenue
from rates
Operations
Net
Accum
Ops Net
1 2007 4,800 $168,000.00 $0.00 $1,044,125.71 $346,137.31 $697,988.40 $21.40 $1,232,616.96 $10,353.94 $10,353.94$9.10 $1.12 $8.50 $1.19 $8.50 $1.19
2 2008 5,236 $176,400.00 $0.00 $1,149,487.25 $419,254.27 $730,232.98 $9.56 $1.07 $9.00 $1.21 $8.67 $1.21 $22.12 $1,389,617.64 $61,993.08 $72,347.02
3 2009 5,796 $185,220.00 $0.00 $1,346,389.04 $580,435.47 $765,953.58 $11.05 $1.02 $9.00 $1.21 $8.84 $1.24 $22.12 $1,538,112.46 $13,586.11 $85,933.13
4 2010 6,380 $194,481.00 $0.00 $1,533,630.42 $616,399.65 $917,230.77 $10.58 $1.11 $9.25 $1.23 $9.02 $1.26 $22.58 $1,729,025.73 $17,258.00 $103,191.13
5 2011 6,917 $204,205.05 $0.00 $1,611,114.15 $651,951.95 $959,162.20 $10.21 $1.07 $9.25 $1.23 $9.20 $1.29 $22.58 $1,874,447.38 $85,195.92 $188,387.05
6 2012 7,513 $214,415.30 $0.00 $1,695,026.06 $691,325.23 $1,003,700.82 $9.87 $1.03 $9.50 $1.23 $9.38 $1.31 $22.83 $2,058,618.02 $185,454.65 $373,841.70
7 2013 7,898 $133,733.86 $37,522.68 $1,715,285.50 $669,826.61 $1,045,458.88 $9.21 $1.02 $9.50 $1.23 $9.57 $1.34 $22.83 $2,164,045.53 $270,622.72 $644,464.42
8 2014 8,289 $133,733.86 $39,398.81 $2,047,299.60 $694,395.07 $1,352,904.52 $9.08 $1.25 $9.50 $1.23 $9.76 $1.37 $22.83 $2,271,198.51 $45,761.61 $690,226.03
9 2015 8,750 $133,733.86 $41,368.75 $2,132,028.81 $722,833.68 $1,409,195.14 $8.94 $1.24 $9.50 $1.23 $9.96 $1.39 $22.83 $2,397,612.22 $87,446.10 $777,672.13
10 2016 9,041 $133,733.86 $43,437.19 $2,208,881.43 $744,956.37 $1,463,925.06 $8.87 $1.24 $9.50 $1.23 $10.16 $1.42 $22.83 $2,477,176.49 $90,157.75 $867,829.88
11 2017 9,219 $133,733.86 $45,609.05 $2,281,211.40 $762,921.06 $1,518,290.34 $8.89 $1.27 $9.75 $1.25 $10.36 $1.45 $23.30 $2,577,565.30 $118,216.58 $986,046.46
12 2018 9,361 $133,733.86 $47,889.50 $2,353,825.53 $779,899.88 $1,573,925.66 $8.94 $1.29 $9.75 $1.25 $10.57 $1.48 $23.30 $2,617,352.60 $85,389.76 $1,071,436.22
13 2019 9,515 $133,733.86 $50,283.98 $2,429,861.88 $797,968.24 $1,631,893.65 $8.98 $1.32 $9.75 $1.25 $10.78 $1.51 $23.30 $2,660,322.89 $52,323.69 $1,123,759.91
14 2020 9,681 $133,733.86 $52,798.18 $2,509,523.82 $817,220.63 $1,692,303.19 $9.03 $1.34 $9.75 $1.25 $11.00 $1.54 $23.30 $2,706,730.80 $19,069.67 $1,142,829.58
15 2021 9,860 $133,733.86 $55,438.08 $2,593,029.76 $837,760.75 $1,755,269.02 $9.08 $1.37 $10.00 $1.27 $11.22 $1.57 $23.77 $2,812,083.03 $40,915.95 $1,183,745.53
16 2022 10,054 $133,733.86 $58,209.99 $2,680,614.49 $859,702.45 $1,820,912.04 $9.12 $1.39 $10.00 $1.27 $11.44 $1.60 $23.77 $2,867,297.67 $8,545.87 $1,192,291.40
17 2023 10,263 $133,733.86 $61,120.49 $2,772,530.59 $883,170.77 $1,889,359.81 $9.17 $1.42 $10.25 $1.29 $11.67 $1.63 $24.23 $2,984,416.86 $33,748.96 $1,226,040.37
18 2024 10,488 $133,733.86 $64,176.51 $2,869,050.01 $908,303.11 $1,960,746.90 $9.21 $1.44 $10.25 $1.29 $11.90 $1.67 $24.23 $3,050,084.15 $2,896.83 $1,228,937.20
19 2025 10,732 $133,733.86 $67,385.34 $2,970,465.82 $935,250.44 $2,035,215.38 $9.26 $1.46 $10.50 $1.31 $12.14 $1.70 $24.70 $3,181,123.20 $32,520.07 $1,261,457.27
20 2026 10,996 $133,733.86 $70,754.61 $3,077,094.07 $964,178.76 $2,112,915.31 $9.30 $1.48 $10.50 $1.31 $12.38 $1.73 $24.70 $3,259,192.92 $3,961.54 $1,265,418.81
21 2027 11,280 $133,733.86 $74,292.34 $3,189,275.89 $995,270.61 $2,194,005.28 $9.35 $1.50 $10.75 $1.33 $12.63 $1.77 $25.17 $3,406,695.44 $39,282.24 $1,304,701.05
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE DATE SPECIFIC WORKING DRAFT Page 5
CityEagle_00122
Rate Projections and Probable Budgets 20 Yr., Eagle Combined System, EG080305
3/8/2018 KRR Holladay Engineering Company
Capital Plan Worksheet
Plan
Year
CAL
Year
Operations
Net Revenue
FEES Revenue
Balance of
Joint Accounts
$121,835.52
Investment Capital Item
Income
Present Worth
(Yr. 2007)
Probable Cost
Pipeline
Construction
Participation
Emergency
& Operating
Reserve Fund
Capital
Improvement
Fund
1 2007 $10,353.94 $274,400.00 $335,700.09 $13,210.62 Master Plan Amend.$40,000.00 $40,000.00 $44,100.00 $200,000.00 $135,700.09
2 2008 $61,993.08 $1,097,258.40 $1,121,466.51 $45,766.29 PRV & Booster $200,000.00 $210,000.00 $209,251.35 $400,000.00 $721,466.51
3 2009 $13,586.11 $1,319,922.44 $1,822,152.58 $89,411.04 Equip. Purch.$400,000.00 $441,000.00 $281,233.52 $650,000.00 $1,172,152.58
4 2010 $17,258.00 $1,469,157.12 $2,896,637.89 $128,268.01 Loop :Lines $200,000.00 $231,525.00 $308,672.82 $676,000.00 $2,220,637.89
5 2011 $85,195.92 $1,558,644.98 $4,258,122.94 $185,927.92 PRV & Booster $140,000.00 $170,170.88 $298,112.89 $703,040.00 $3,555,082.94
6 2012 $185,454.65 $1,775,275.31 $2,368,038.09 $261,924.40 Trunk Lines, 1.5 MG Res $2,950,000.00 $3,765,030.61 $347,708.60 $731,161.60 $1,636,876.49
7 2013 $270,622.72 $967,693.69 $2,043,771.53 $149,359.81 Trunk Lines, Well #8 $1,100,000.00 $1,474,105.20 $237,837.58 $760,408.06 $1,283,363.47
8 2014 $45,761.61 $911,838.27 $2,843,807.49 $126,128.57 Meters $21,000.00 $29,549.11 $254,143.39 $790,824.39 $2,052,983.10
9 2015 $87,446.10 $1,078,350.83 $3,835,847.47 $171,335.30 Meters $21,000.00 $31,026.56 $314,065.67 $822,457.36 $3,013,390.11
10 2016 $90,157.75 $730,427.20 $4,122,285.75 $212,307.00 Meters. Pump Maint.,MP, TL $405,500.00 $629,063.59 $117,390.09 $855,355.66 $3,266,930.09
11 2017 $118,216.58 $600,944.84 $4,934,753.28 $224,093.32 Meters $21,000.00 $34,206.79 $96,580.42 $889,569.88 $4,045,183.40
12 2018 $85,389.76 $681,471.45 $2,779,390.64 $265,909.19 1 MG Reservoir $1,800,000.00 $3,078,610.84 $109,522.20 $925,152.68 $1,854,237.96
13 2019 $52,323.69 $772,788.62 $2,526,471.20 $159,597.34 Meters, TL E&B $620,000.00 $1,113,430.92 $124,198.17 $962,158.79 $1,564,312.41
14 2020 $19,069.67 $876,342.29 $2,541,610.55 $148,708.86 Meters, TL Beacon Light $471,000.00 $888,140.75 $140,840.73 $1,000,645.14 $1,540,965.41
15 2021 $40,915.95 $993,772.16 $3,527,954.44 $152,947.73 Meters $21,000.00 $41,578.56 $159,713.38 $1,040,670.94 $2,487,283.50
16 2022 $8,545.87 $1,126,937.63 $3,729,761.35 $204,784.81 Meters, TL Beacon Light $460,500.00 $957,346.43 $181,114.98 $1,082,297.78 $2,647,463.57
17 2023 $33,748.96 $1,277,947.27 $4,159,283.66 $219,280.47 Meters, TL East $410,500.00 $896,070.02 $205,384.38 $1,125,589.69 $3,033,693.97
18 2024 $2,896.83 $1,449,192.21 $5,574,600.83 $244,266.41 Meters $21,000.00 $48,132.38 $232,905.89 $1,170,613.28 $4,403,987.55
19 2025 $32,520.07 $1,643,383.96 $7,256,478.23 $320,627.64 Meters $21,000.00 $50,539.00 $264,115.28 $1,217,437.81 $6,039,040.42
20 2026 $3,961.54 $1,863,597.41 $8,070,382.78 $409,512.89 Meters, TL Beacon Light $460,500.00 $1,163,660.56 $299,506.73 $1,266,135.32 $6,804,247.45
21 2027 $39,282.24 $2,113,319.47 $3,442,104.00 $457,334.18 Meters, Well #1 RE, 1.5 MG R.$2,600,000.00 $6,898,574.03 $339,640.63 $1,316,780.73 $2,125,323.27
CONFIDENTIAL - ATTORNEY CLIENT PRIVILEGE DATE SPECIFIC WORKING DRAFT Page 6
CityEagle_00123
HECO
ENGINEERS
HOLLADAY ENGINEERING CO.
32 N Main Street • PO Box 235 •
Payette, ID 83661
CityEagle_00124
WATER RATE STUDY REPORT
December 2017
Prepared for:
< pF TNT
ITI
~ ~ O
-C 1~~~
City of Eagle
Eagle, Idaho
Prepared By:
HECO
ENGINEERS
HOLLAOAY ENGINEERING CO
32 N Main Street • PO Box 235 •
Payette. ID 83661
EG 16-0058A
CityEagle_00125
1. INTRODUCTION
The City of Eagle owns and operates a rapidly growing water system with continued rising
operating costs. Water revenues are periodically reviewed against operating costs. Adjusting for
inflation costs, water rates have slightly increased over the last four years. The current rates do
not employ a rate setting methodology to adequately fund reserves or rising operating costs for
the water utility. Based on information obtained from recent financial audits, it has been
determined that the water system is inadequately funded when the requirements for funding
depreciation are included. In addition, the financial balancing of the water system is heavily
dependent upon fees collected from new connections to the water system, some of which are
restricted funds. Funding of the water system that is dependent upon the number of new
connections is risky given potential volatility of the development market.
To prepare a limited water rate review, a program developed by the USDA— Rural Development
for small system water rate structures was utilized to perform a single model analysis. The
following goals were established for this limited analysis:
n Prepare a water rate analysis based on current actual budgeted expenditures and
revenue.
n Prepare a water rate that includes consideration for funding system depreciation.
n Recommend a water rate implementation schedule.
With the limited scope of this analysis, this rate study does not include:
n Full financial analysis of historic or 5- to 10-year projection of revenues and expenses.
n Analysis or recommendations on specific budget line items.
n Review of a target value for an operating fund balance.
n Review of a target value for set aside funds for capital improvement reserve account.
n A review of hookup fees or other related water system fees.
1.1 Current Water Rates
The City of Eagle has implemented small water rate increases over the last four years to adjust
for rising costs. The water rates adopted by Council through Resolution 17-23 are presented in
the table below.
HECO ENGINEERS
P age I 1
CityEagle_00126
Base Monthly Fee $9.60 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
System Enhancement Fee $10.93 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
Water Safety Fee $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34
Consumption Rate
per 100 cubic feet $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35
Note: ERU = Equivalent Residential Unit; A 34" meter is considered 1.0 ERU
The water rates are separated into the above categories to correctly allocate the collected
revenue to the corresponding costs. The categories are generally described below:
n Base Monthly Fee - Fee charged based on meter size to cover the fixed costs of operation
and maintenance of the water system facilities each month regardless of the amount of
water consumed by users. Even if no water is used, the City still incurs costs associated
with the infrastructure and maintaining the facilities.
n System Enhancement Fee - Fee charged based on meter size to cover the costs associated
with the current City loan with the Department of Environmental Quality (current water
system indebtedness).
n Water Safety Fee - Fee charged for each meter within the system to cover the charges
imposed by the Department of Environmental Quality for the water system.
n Consumption Rate - Fee charged for the volume of water consumed by each user to cover
the costs that may vary depending upon the actual usage. The consumption rate is for
every 100 cubic feet of water used.
1.2 Historic Water Rates
U ntil recently, the City has not historically raised rates on a consistent basis with only minimal
rate increases over extended periods of time. Over the last four years, the City has adjusted the
rates to only account for inflationary costs rather than a review of total operating and
depreciation costs. Over the 13-year period from 2004 to 2017, the City's base monthly rate has
only increased from $8.50 to $9.60 (0.9% annual rate). Below are the historical rates charged by
the City since 1992.
HECO ENGINEERS
P age 12
CityEagle_00127
Monthly Consumptive
Base Rate Rate
1992 $6.86 $0.42
1997 $6.86 $0.72
2004 $8.50 $1.10
2005 $8.50 $1.19
2008 $8.50 $1.19
2013 $8.88 $1.24
2014 $9.05 $1.26
2015 $9.23 $1.29
2016 $9.41 $1.32
2017 $9.60 $1.35
2. EXISTING USERS
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
Historical Rates
I
F
1990 1995 2000 2005 2010 2015 2020
Base Rate Consumptive Rate
2.1 Number of Meters by Size
City billing records indicate that the City is currently serving 2,080 metered customers (July 2017).
A breakdown of meters by size is summarized in the following table.
Y„4 1170 707
1"189 0
0 0
2"7 5
3"1 0
4"1 0
1877
189
0
12
1
1
Totals 1368 712 2080
2.2 Equivalent Residential Units
Equivalent Residential Units (ERUs) are calculated based on the meter size. As already established
in the City's existing water rates, a %" meter is used as a baseline size and is considered one ERU.
As the meter sizes increase, the number of ERUs each meter represents increases by the
HECO ENGINEERS
P age 13
CityEagle_00128
established multiplier. The following table summarizes the current number of ERUs being served
by the City. The total ERUs currently (July 2017) being served by the City is 2346.8.
Meter Size -4
/„
4 1877
ERU Multiplier
1.0 1877.0
1"189 1.8 340.2
0 4.0 0.0
2"12 7.1 85.2
3"1 16.0 16.0
4"1 28.4 28.4
Total 2346.8
2.3 Average Monthly Usage
Since the amount of revenue from water users is generated from the number of meters and the
amount of usage, an estimate of the average monthly usage per ERU is necessary to predict the
amount of revenue expected. For this water rate study, the average use of 252 gallons per day
per ERU was used as established in the City's Master Plan Update, September 2015. Based on
this average use, it is estimated that the average monthly volume usage for each ERU is 7,665
gallons (1022 cubic feet). This value forms the basis for predicting the revenue that will be
generated for the City, specifically from the consumptive rate structure.
3. REQUIRED REVENUES
City Budget
Ordinance 782, the Annual Appropriation Ordinance, passed on August 22, 2017, established the
amount appropriated for the Water Fund at $1,773,581. The revenue raised for this
appropriation is derived from various revenue streams including water rates and fees collected
from new development. The appropriated amounts are divided into the categories listed below.
HECO ENGINEERS
WTUPage I4
CityEagle_00129
Water Fund Amount /11
Reserve Funds $164,000
Restricted Funds $492,359
Personnel $388,697
Administration $602,725
Capital Outlay $125,800
Water Fund Total $1,773,581
$125,800
$602,725
$164,000
-P-10,
$388,697
n RESERVE FUNDS RESTRICTED FUNDS PERSONNEL
ADMINISTRATION ._CAPITALOUTLAY
$492,359
1
3.2 Restricted Funds
Restricted funds account for the fees collected from new development and are kept separate
from the other revenues for the water department. The restricted funds include the STL (Storage
and Trunk Line) Fees, the WCE (Water Construction Equivalency) Fees, and Hook-up Fees. These
fees are to be used for items not related to repairs and capital replacement, such as well
development and construction, trunk line construction, pressure reducing/boosting stations, and
storage reservoir design and construction.
Personnel and Administration
The water appropriation has two categories for personnel and administration. Personnel costs
account for Water Department staff salaries and benefits. Administration costs account for
operations and maintenance costs including power, chemicals, vehicles, fuel, office supplies and
equipment, building costs, water piping repairs and pump repair and maintenance. For the rate
study analysis, personnel and administration costs are separated into fixed and variable costs.
Fixed costs are the costs the City will incur on an annual basis regardless of the volume of water
consumed. Variable costs are expenses that may fluctuate based on the amount of water
consumed by the water users. It is necessary to itemize the costs into fixed and variable
categories to ensure that adequate revenues are generated from the established base rate and
the consumptive rate. A detailed breakdown of the personnel and administration costs is
included in Appendix A.
HECO ENGINEERS
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Capital Outlay and Reserve Funds
The Capital Outlay and Reserve Fund categories in the City's water appropriation essentially are
functioning as a mechanism to fund a portion of the depreciation of the City's water system
assets. Reserve funds are annually being accumulated in anticipation of and preparation for the
costs associated with aging and wear of the City water system facilities. Capital outlay funds are
the anticipated funds needed to replace equipment, meters and other facility components. When
combined, the total budgeted amount for asset depreciation is $289,800.
The assets of the City's water system can be separated into short-term and long-term assets.
Short-term assets are those with an estimated life expectancy of 15 years or less. Long-term
assets are those that have a life expectancy that can reasonably be greater than 15 years. Both
short-term and long-term assets were identified, grouped and assigned a remaining life. Annual
replacement cost for each asset was estimated by dividing the full replacement cost by the
expected remaining life. For example, for disinfection equipment at a well with a replacement
cost of $5,000 and a life expectancy of 10 years, the City needs to set aside $500 annually. Absent
specific information on the condition of buried assets, this method was employed for the model
as the simplest means of arriving at a value for the rate analysis to fund depreciation of assets. It
should be noted that an exhaustive identification of the assets was not performed for this water
rate study. It is understood that water systems typically cannot fully fund 100% of depreciation.
The analysis for this study was completed to provide a general representation of the City's asset
depreciation funding level.
By identifying the short-term and long-term assets of the City's water system, the projected
annual replacement cost was estimated to be $484,212. When compared to the City's current
combined appropriation for Capital Outlay and Reserves Funds of $289,900, the City's funding
level of asset depreciation is estimated to be approximately 60%. The short-term and long-term
assets identified for this study are shown in Appendix B.
Adjusted Budget for Rate Study
To complete the rate analysis, the appropriated budget was adjusted to account for funds that
won't be collected through the rate structure. This ensures that rate payers are not paying for
budgeted funds that are collected from new development. The adjustments shown in the
following table were made to determine the funds that need to be collected through the water
rates. The adjusted budget for this rate study is $1,210,822.
HECO ENGINEERS
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Total Budget $1,773,58"
Remove Restricted Funds — Funds are collected through STL and WCE Fees from new
development -$492,359
Remove New Meter Installs from Administration Budget — Funds are collected from
separate hookup fees -$62,100
Remove Water Safety Fee — Funds are collected separately from the water rates to pay
the fees charged by the Department of Environmental Quality -$8,300
Adjusted Budget $1,210,822
4. RATE ANALYSIS
4.1 Revenue from Current Rates
U nder the City's current water rate structure, the revenue from the existing users is estimated to
be $966,703. When compared to the required adjusted budget amount of $1,210,822, there is a
shortfall of $244,119. This shortfall is expected given the auditor's previous findings that the
current rate structure is not adequately funding the water system when revenue from new
development is excluded from the budget. The rate structure must be modified to collect the
necessary revenue to adequately fund the water system as currently budgeted.
Recommended Change to Current Rates
Based on implementing a rate change that would adequately fund the water system, a rate
increase is necessary to account for the $244,119 revenue shortfall. For the analysis, both the
base rate and the consumptive rate were evaluated in determining how the rates are funding
both the fixed and variable costs. For this analysis, it was determined that the current
consumptive rate of $1.35 per 100 cubic feet is adequately funding the variable cost component
of the water system at the present time. With that determination, the proposed consumptive
rate is maintained at the current rate and the revenue shortfall must then be generated from an
increase in the monthly base rate.
With the estimated shortfall and the number of current users in the City water system, the
monthly base rate will need to be increased by $8.73 per ERU. This increase will generate the
necessary revenue to fully fund the City's current Annual Water Appropriation Ordinance. The
analysis output from the rate model is shown in Appendix C.
For comparative and illustrative purposes, the following table presents three categories of users
based on consumption and their respective expected total monthly bill with the recommended
rate increase. It should be noted that the total monthly bills shown for this comparative
HECO ENGINEERS
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illustration are based on a 4-inch meter and do not reflect total monthly amounts for users with
larger meters.
Low User (300 cf/2250 gal)
Base Rate $9.60 $18.33
Consumptive Rate $4.05 $4.05
System Enhancement Fee $10.93 $10.93
Water Safety Fee $0.34 $0.34
Total Monthly Bill $24.92 $33.65
Monthly Increase $8.73
Average User (1022 cf/7665 gal)
Base Rate $9.60 $18.33
Consumptive Rate $13.80 $13.80
System Enhancement Fee $10.93 $10.93
Water Safety Fee $0.34 $0.34
Total Monthly Bill $34.67 $43.40
Monthly Increase $8.73
High User (2005 cf/15000 gal)
Base Rate $9.60 $18.33
Consumptive Rate $27.00 $27.00
System Enhancement Fee $10.93 $10.93
Water Safety Fee $0.34 $0.34
Total Monthly Bill $47.87 $56.60
Monthly Increase $8.73
4.3 Implementation
The rate increase can be done in one year or implemented over a multi-year period to allow for
customers to plan for increased costs. If a rate increase is implemented over a multi-year period,
the inflationary increase in costs should also be considered over that same time. For example, if
a rate increase is implemented over a two-year period and the $8.73 increase necessary for the
current budget is simply divided by two to determine the monthly increase for each
implementation year, the City will not be accounting for any inflationary costs realized over that
same two-year period and will begin to again fall behind in needed revenue. To account for the
inflationary costs for a rate increase implemented over a multi-year period, a 2% cost increase
for each subsequent year is recommended and presented as the target base rate in the following
table.
HECO ENGINEERS
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Implementation
Period
Target Base Rate
(per ERU)
Annual Increase to
Monthly Base Rate
(per ERU)
1-Year $18.33 $8.73
2-Year $18.70 $4.55
3-Year $19.07 $3.16
4-Year $19.45 $2.46
Another consideration for any rate increase implemented over a multi-year period and is not
reflected in the above target base rate is the further aging of the City's assets. Any delays in a
rate increase implementation will not account for the increased annual replacement cost in the
City's assets and will reduce the asset depreciation funding level presented earlier in this report.
For example, an asset with an expected life of 15 years will only have an expected life of 12 years
at the end of a 3-year implementation period. The annual replacement cost will be higher for
that specific asset given that the expected life has reduced by 3 years and the full 3-year
depreciation cost has not been collected through the rates.
It is recommended that the consumptive rate be increased by 2% each year, unless determined
otherwise, to also account for the expected inflationary costs associated with the water system
variable costs.
5. SUMMARY
Based on the rate analysis completed for this study, the following is a summary for the City's
consideration:
1. The City's current monthly base rate is inadequate to generate the required revenue to
meet the City's current water budget and an increase is necessary. The needed increase
is $8.73 per ERU per month.
2. The City's consumptive rate is adequate to cover the costs associated with the volumetric
consumption of water. No increase outside inflationary increases are needed for the
consumptive rate.
3. The System Development Charge ($10.93 per ERU) is to be maintained to make the
obligated loan payments to DEQ.
4. The Water Safety Fee ($0.34 per meter) is to be maintained to make the required fee
payments to DEQ.
HECO ENGINEERS
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5. If a multi-year increase is implemented, the following tables present the recommended
base monthly fee for the given implementation period chosen by the City. It is
recommended that the dates of subsequent increases coincide with the City's fiscal
budget year.
Option 1- One Increase (Base Monthly Fee)
Implementation Date
January 1, 2018 $18.33 1.
Meter Size
2" 3" 4" 6"
8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
Option 2 -Two Increases (Base Monthly Fee)
1W -9
Implementation Date
January 1, 2018 $14.15 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2018 $18.70 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
Option 3 -Three Increases (Base Monthly Fee)
January 1, 2018 $12.76 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2018 $15.91 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2019 $19.07 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
Option 4 - Four Increases (Base Monthly Fee)
Implementation Date
January 1, 2018 $12.07 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2018 $14.53 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2019 $16.99 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
October 1, 2020 $19.45 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERU
HECO ENGINEERS
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APPENDICES
Appendix A — Personnel and Administration Costs
Appendix B — Assets
Appendix C — Rate Analysis
HECO ENGINEERS
WTUAppendices
CityEagle_00136
Appendix A - Personnel and Administration Costs
TOTAL TOTAL
BUDGET Amount Amount Combined
ITEM Variable Fixed Expenses
PERSONNEL
Salaries Full Time $O $263.107 $283.187
Part Time $O so $O
On-Call Time $5,900 $O $5,900
Overtime $4.500 $0 $4.500
FICA $O $20,930 $2G`9JO
PERS|$O $31.395 $31.395
HRAAdminFen $O $120 $120
MRABi||ing Pre. Rpimh.$O $4,049 $4,049
Insurance $O $49,920 $49,920
Work Comp.$O $8.080 $8,686
OPERATIONS, MAINTENANCE
Meter Sets (New Customers)See Note 1
Office Supplies $O $1,200 $1,200
Te|euom/SCADA $O $17,800 $17,800
Advnr/Pub|icationn $O $2.000 S2.000
Travel/Meetings $O $8,000 $8,000
Dues/Subscriptions $O $2,900 $2,900
Moint Equip/Software Support $O $7.500 S7.500
Ton|s, Equipment $O $6,000 $6,000
Misc. Reserve $O $O $O
Postage $O $1.000 S1.000
Liability Insurance $O $4,100
Pub Drk Water Fees See Note z
Permits/Fees $O $1.500 S1.500
Water Repair/Maintenance (|inns.meters)$15`OOO $O $15`OOO
Water Repair/Maintenance (pumpo.wells)$30,000 $O $30,000
Chemicals and Equipment $8.500 $0 SO.500
Power $38`5OO $O $38`5OO
Uniforms/Laund/y $O $2,000 $2,000
Testing (VVoek|y. Monthly, Annual)$O $9,000 S8.000
Fuel, Lubricants $15`OOO $O $15`OOO
Vmhio|eRepair/0aint $9,000 $O $9,000
Vehicle Detailing $1,602
CONTRACTS, AGREEMENTS
Engineering Services $25,000 $0 $25,000
Legal Services $25`OOO $O $25`OOO
Mioo Legal Sewiuea $18,080 $O $18,080
Contract Repair $25,000 $0 $25,000
Dig Line $O $1,440 $1.440
Auditor Services $O $1,500 $1,500
8iUing8nmicas $O $18`QO0 $18,900
Shop Lease $O $10,500 $1G`5OO
Shop Utilities $O $3,500 $3,500
Room and Board City Hall $O $12`8O3 $12.803
DEQ/SRLPaymnm See Note 3
Total Var/Fix Expenses
TOTAL WdhDEQ/SFL
Total Expenses $921,022
Notes
1 Meter Sets (New Customers) Excluded Funds are collected from separate hookup fees.
2. Public Drinking Water Fees Excluded Funds are collected separately to pay fees charged byDEQ
3.DEO/SRL Payment amount io included asa separate entry in Rate Analysis Sheet
Appendix B_Assets
Short Lived System
Assets ' Description
Quantity Estimated Life Estimated
Replacement Cost
Annual
Replacement CostS,10,15years
Meters Eastern 1359 10 $441.8T5 $44,168
Meters 'Western 70 15 $228.775 S15.31O
Large Meters 'Eastern g 10 $10,800 $1,080
Large Meters 'Western S 15
Well No. 1
Disinfection Equip 1 10 $5,000 $50
Control Haxjwann, Software 1 15 $5,000 $333
HVAC, Misn Elect 1 15 $5,000 $333
PumpsRebui|d/Rnp|aoemont 1 10 $45,000 $4,500
Well No. 3
Disinfection Equip 1 10 $5,000 $500
Control Hunjwane, Software 1 15 $5,000 $333
H\A\C.K8isoElect 1 15 $5,000 $333
PumpsRabui|d/Rop|aoement 1 10 S46.00O S4.SOO
Well No.4
Disinfection Equip 1 10 $5,000 $50
Control Hardware, Software 1 15 $5,000 $333
H\A\C.K8iuoElect 1 15 $5,000 $333
PumpsRabui|d/Rep|aoomen1 1 10 $45,000 $4,500
Well No. 6
Disinfection Equip 1 10 $5,000 $500
Control Hardware, Software |15 $5,000 $333
H\A\C, MisoBect 1 15 $5,000 $333
PumpsRebuikKRep|acomonA 1 10 $45,000 $4,500
Service Truck, 2D13 1 G $32,000 $5.333
Service Truck, 2O15 1 O S26.UOD $3.125
Service Truck, 2O18 1 g $30,000 $3.333
Motorized Equip, Miac 1 10 $8,000 $800
C|a'Va| PRV's G 15 $27,000 $1,800
SCAOA System i 10 $75,000 $7,500
Total - Short Term Assets 11 S1, 125;250 $105,524
Page
Appendix B m Assets
Long Term System
Assets - Description
Quantity Estimated
Remaining Life
Estimated
Replacement Cost
Annual
Replacement Cost
Hydrants - Eastern 170 35 $595,000 $17,000
Hydrants - Western 179 50 $626,500 $12,530
Well House No. 1 1 35 $500,000 $14,286
Well House No. 3 1 40 $500,000 $12,500
Well House No. 4 1 40 $500,000 $12,500
Well House No. 5 1 40 $500,000 $12,500
Well No. 1 1 20 $200,000 S10,000
Well No. 3 1 35 $200,000 $5,714
Well No. 4 1 35 $200,000 $5,714
Well No. 5 1 35 $200,000 $5,714
Well No. 3 Generator Set 1 30 $80,000 $2,667
Well No. 4 Generator Set 1 30 $70,000 $2,333
Well No. 5 Generator Set 1 30 $70,000 $2,333
1 MG Reservoir 1 60 $1,650,000 $27,500
Eastern Piping
4 inch 5,912 50 $384,280 $7,686
6 inch 20,769 50 $1,349,985 $27,000
8 inch 39,040 50 $2,537,600 $50,752
10 inch 27,286 50 $2,046,450 $40,929
12 inch 13,530 50 $1,217,700 $24,354
16 inch 68 65 $8,160 $126
20 inch 1.330 65 $199,500 $3,069
Western Pipinq $0
4 inch 261 65 $16,965 $261
6 inch 2,771 65 $180,115 $2,771
8 inch 48,087 65 $3,125,655 $48,087
12 inch 12,304 65 $1,107,360 $17,036
16 inch 7,218 65 $866,160 $13,326
$0
$0
Total - Long Term Assets 178,937 50 $18,931,430 $378,688
Total Current System
Proposed Changes to System
Components - Description
Total Proposed System
41
Estimated
Remaining Life
41
Page 2
S20,056;680
Estimated
Replacement Cost
$20,056,680
$484,212
Annual
Replacement Cost
$0
$0
$0
$0
$0
$0
$0
$0
$484,212
CityEagle_00139
Appendix C - Rate Analysis
TI
X
M
0
91
9
t
/
N
V
A

CURRENT
TOTAL
PROPOSED PROPOSED
CHANGE TOTAL
Annual Payment: Loan
Annual Payment to Bond/Loan(s) Reserve Account
$212,000 $212,000
$0
Adjustment Reserves/Capital Cost ($62,317)($62,317)
Reserves/Capital Cost Funded by Rates $184,276 $184,276
Annual Fixed Expenses - From Budget Sheet $489,940 $0 $489,940
Annual Gallons Sold ( in 1,000's)215,859 215,859
Annual Gallons Pumped (In 1,000's)0
Number - Active Base Customers (EDUs)2,347 2,347
System Income $1,212,554 $1,212,554
Other System Income (Tankage Sales, etc.)$0
Variable Operating Expenses - From Budget Sheet $219,082 $0 $219,082
Variable Reserves/Capital Costs $105,524 $105,524
Other Variable Operating Expenses $0
Proposed Monthly Base Rate (zero (0) gallons)$20.53 $8.73 $29.26
Proposed Rate per 1,000 gallons $1.80 ($0.00)$1.80
Cost Per 100 Cubic Feet $1.35 $0.00 $1.35
Monthly Rate: 2250 Gallons / 300 Cubic Feet $24.58 $8.73 $33.31
Monthly Rate: 3000 Gallons / 401 Cubic Feet $25.93 $8.73 $34.66
Monthly Rate: 5000 Gallons / 668 Cubic Feet $29.53 $8.73 $38.26
Monthly Rate: 8000 Gallons / 1070 Cubic Feet $34.93 $8.73 $43.66
Monthly Rate: 10,000 Gallons/ 1337 Cubic Feet $38.53 $8.73 $47.26
Monthly Rate: 12,000 Gallons/ 1604 Cubic Feet $42.13 $8.73 $50.86
Monthly Rate: 15,000 Gallons / 2005 Cubic Feet $47.53 $8.73 $56.26
Monthly Rate: 20,000 Gallons/ 2674 Cubic Feet $56.53 $8.73 $65.26
Monthly Rate: 40,000 Gallons/ 5348 Cubic Feet $92.53 $8.73 $101.26
Monthly Rate: 100,000 Gallons / 13,369 Cubic Feet $200.53 $8.73 $209.26
Total Cash Requirement $1,210,822 $0 $1,210,822
Current Revenue $966,703 $245,851 $1,212,554
Excess (Shortage) of Revenue $245,851 $1,732
Average Monthly Use / Customer - EDU (Gallons)7,665 0 7,665
Average Monthly Use / Customer - (Cubic Feet)1,022 0 1,022
Average Monthly Use - Minus Large User (Gallons)7,665 0 7,665
Average Monthly Use - Minus Large User (Cubic Ft)1,022 0 1,022
Monthly Flat Rate Fee / Average Bill $34.33 $8.73 $43.06
Monthly Flat Rate Fee/Average Bill -Minus Large User $34.33 $8.73 $43.06
Notes:
1. Proposed Monthly Base Rates shown include the $10.93 System Enhancement Fee, but do not
include the $0.34 Water Safety Fee.
2. Adjustment Reserves/Capital Cost amount is to account for additional revenue from maintaining
the consumptive rate.
CityEagle_00140
Message
From: N L Bangle [[e-mail]]
Sent: 3/9/2018 2:37:16 PM
To: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
CC: Stan Ridgeway [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3914878340f841b08bae60fc61ed8831-sridgeway]; Mike Davis
[[e-mail]]; Cherese McLain [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=922eb4ebb3af4ecda5494cc10df51d15-ChereseMcLa]
Subject: Re: Water Rate study
Thank you Kellie! You are awesome! Have a great weekend.
N L Bangle
Telephone [phone]
[e-mail]
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
On Mar 8, 2018, at 11:15 AM, Kellie Rekow <[e-mail]> wrote:
Hi Norm,
This is what I have found. I labeled the worksheets that were done by Vern Brewer back in 2007-2008 when the City was
reviewing Eagle Water Company. I'm also including our recent rate study for our own system. I wasn't sure if you
wanted that but better too much info than too little.
Let me know if I need to look further or if this is what you were expecting. If I can think of anything else I'll pass it along.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
CityEagle_00141
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
From: N L Bangle <[e-mail]>
Sent: Monday, March 05, 2018 12:58 PM
To: Kellie Rekow <[e-mail]>
Cc: Stan Ridgeway <[e-mail]>
Subject: Water Rate study
Hi Kellie - Do you have a copy of the rate study that was completed regarding Eagle Water? If so can you send a copy to
me via email?
Thanks Kellie.
N L Bangle
Telephone [phone]
[e-mail]
<image001.png>
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
<2008, Descriptive notes for Rates Spreadsheet Items vl, Vern.pdf><2008, LEASE-PURCHASE Rate Analysis
formatted 6-27 current, Vern.pdf><2017 Water Rate Study, HECO, Report Final.pdf>
CityEagle_00142
Kellie Rekow
From: Jim Reynolds
Sent: Wednesday, April 08, 2015 1:46 PM
To: Kellie Rekow
Subject: FW: Regulatory References
From: Maurice Gallarda [mailto:[e-mail]]
Sent: Tuesday, March 31, 2015 2:29 PM
To: Jim Reynolds
Subject: Regulatory References
Jim,
I didn't provide during our time together but thought you might want to check on Pluris with state regulatory agencies. I do
not suspect that the agencies can endorse a private company but they should be able to express objective comments.
Although not perfect I believe we have professional acting employees who treat customers fairly and courteous. The
regulatory commission management may provide additional information for your use. The two state regulatory commissions
are the Florida Public Services Commission ("FPSC") and the North Carolina Public Utilities Commission ("NCUC") Public
Staff. I pulled their information off their state websites.
1. Florida PSC
Neal E. Forsman
Regulatory Program Administrator
Process Review Group
Florida Public Service Commission
Office of Consumer Assistance Et Outreach
Bureau of Consumer Assistance
Phone: [phone]
nforsman@psc. state. f t. us
2. NCUC Public Staff
Christopher Ayers
Executive Director
North Carolina Utilities Commission
Office of Public Staff
Telephone: [phone]
E-mail: [e-mail]
1
CityEagle_00143
I can provide additional contacts if you desire.
Best regards,
Maurice
Maurice W. Gallarda, PE
Managing Member
1 PLU R IS
Pluris Holdings LLC
T 214.220.3412 F 214.965.9090
2100 McKinney Avenue. Suite 1550, Dallas. TX 75201
1 1111 C 111,111 i, tiublcd in IhC Plus IN 110ILling, cnutiI di.clauner
Click to read full disclaimer.
2
CityEagle_00144
Long-Term Assets
Long Term System Estimated Estimated Annual
Asset - Description Quantity Remaining Life Replacement Cost Replacement Cost
Hydrants 550 50 2,090,000$ 41,800$
Well House 1 1 20 225,000$ 11,250$
Well House 2 1 20 225,000$ 11,250$
Well House 3 1 20 225,000$ 11,250$
Well House 4 1 20 225,000$ 11,250$
Well House 5 1 20 225,000$ 11,250$
Well House 6 1 20 225,000$ 11,250$
Well House 7 1 20 225,000$ 11,250$
Well House 8 1 20 225,000$ 11,250$
Well No. 1 1 40 200,000$ 5,000$
Well No. 2 1 40 200,000$ 5,000$
Well No. 3 1 40 200,000$ 5,000$
Well No. 4 1 40 200,000$ 5,000$
Well No. 5 1 40 200,000$ 5,000$
Well No. 6 1 40 200,000$ 5,000$
Well No. 7 1 40 200,000$ 5,000$
Well No. 8 1 40 200,000$ 5,000$
Well Generators 1-6 6 20 300,000$ 15,000$
2MG Reservoir 1 50 3,300,000$ 66,000$
Piping
2 inch 24,180 50 846,300$ 16,926$
4 inch 11,074 50 719,810$ 14,396$
6 inch 45,476 50 3,501,652$ 70,033$
8 inch 151,000 50 11,627,000$ 232,540$
18 inch 86,000 50 12,947,300$ 258,946$
38,732,062$ 845,641$
Message
From: Stan Ridgeway [/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3914878340F841B08BAE60FC61ED8831-SRIDGEWAY]
Sent: 7/17/2018 10:20:32 AM
To: N L Bangle [[e-mail]]
CC: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
Subject: RE: Schedule
Norm, I am in and out a lot for the next two months just give me a date or dates and we can schedule. Stan
From: N L Bangle <[e-mail]>
Sent: Tuesday, July 17, 2018 9:47 AM
To: Stan Ridgeway <[e-mail]>
Cc: Kellie Rekow <[e-mail]>
Subject: Schedule
What is your schedule like for the next couple of weeks?
N L Bangle
Telephone [phone]
[e-mail]
Unless otherwise indicated, this message is intended only for the personal and confidential use of the designated recipient(s)
named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination,
distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should
not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, an official confirmation
of any transaction, or as an official statement of the entity sending this message. Email transmission cannot be guaranteed to be
secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon
as such. All information is subject to change without notice.
CityEagle_00146
sue t
CITY OF EAGLE
PO BOX 1520
EAGLE, ID 83616
November 15, 2018
Dear Eagle Water Company Customers:
RECEIVED 8, FILED
CITY OF EAGLE
NOV 1 b 2018
File:
Route to:
SUEZ is pleased to announce that it is seeking to acquire Eagle Water Company and hopes to be your trusted
water provider in the future.
SUEZ, a global innovator in water and wastewater services, filed a joint application with the Idaho Public Utilities
Commission to acquire the Eagle Water Company assets that serve approximately 12,000 people. If approved
by the Idaho Public Utilities Commission, the acquisition would fold Eagle Water Company into SUEZ' existing
Idaho operations serving 240,000 people in Boise and the surrounding area.
While SUEZ has a global presence, our Treasure Valley employees are dedicated to providing exceptional local
service to our customers.
For your convenience, a list of frequently asked questions and answers is enclosed that outlines improvements
we would make to your water service and system, potential rate changes, and how you can comment on the
acquisition. If you have any additional questions, please call us at 208.362.7304.
We will continue to send updates regarding the potential acquisition and look forward to the possibility of serving
you in the near future.
Sincerely,
Marshall Thompson
VP & General Manager
Idaho Operations
SU
8248 W. Victory Rd., Boise, ID 83709 www.mysuezwater.com
CityEagle_00147
SUEZ FILES INTENT TO ACQUIRE
EAGLE WATER COMPANY ASSETS suet
Who is SUEZ?
SUEZ is a recognized global leader in water and wastewater services and technology that has been serving the Treasure
Valley since 1928. Our existing Idaho operations currently serve 240,000 people in the Treasure Valley
Why is SUEZ filing a joint application with Eagle Water Company to purchase these assets?
Eagle Water Company serves approximately 12,000 people within the City of Eagle, Idaho.
At this time, the owner of the system has sought a potential buyer to assume the assets of the system Selling the system to
SUEZ, a company with the necessary expertise and capital to operate and modernize the system, will be beneficial to Eagle
Water Company customers
What are the benefits to Eagle Water Company customers?
If the Idaho Public Utilities Commission approves the sale of the system, SUEZ will make significant improvements that will
enhance service reliability for Eagle Water Company customers, including:
• 24-hour automated monitoring of the system to ensure continuous service reliability and water quality
• Provide critical system disinfection for public safety
• The expertise and experience of certified water quality, production and distribution personnel
• A robust online customer web and billing site
• Greater access to capital investments necessary to maintain a water system for the long-term and economies of scale
achieved by a larger company
When will the transaction close?
The sale of the system is subject to regulatory approval by the Idaho Public Utilities Commission and is expected to close
sometime next year
Are there any benefits to current SUEZ customers?
Redundancy is critical to the operation of any water system. As proposed, Eagle Water Company assets would be
interconnected with SUEZ facilities in the local area to benefit all customers.
How will my rates change?
The Idaho Public Utilities Commission sets rates for new customers. As proposed in this filing Eagle Water Company customers
would see gradual rate increases over the next three years.
Residential Eagle Water Company customers on average would see.
2019- Monthly rate increases of approximately $6 or 20 cents per day.
2020: Monthly rate increases of approximately $9 or 30 cents per day.
2021: Monthly rate increases of approximately $9 or 30 cents per day
Commercial Eagle Water Company customers would also see rate increases On average:
2019: Monthly rate increases of approximately $40 or $1 33 per day
2020: Monthly rate increases of approximately $40 or $1 33 per day
2021 Monthly rate increases of approximately $40 or $1.33 per day
Residential customers would see an overall increase of 204%, based on an average calculated monthly bill of $12.35 using
12,000 gallons per month. Commercial customers would see a 303% increase based on an average calculated monthly bill of
$38.96 using 56,000 gallons per month.
Is SUEZ planning to expand further in Idaho?
There is no plan to expand SUEZ operations in Idaho at this time.
Where can I review the joint application to acquire Eagle Water Company assets?
Copies of this application are available for public review at the offices of both the Idaho Public Utilities Commission at 472 W
Washington Street, Boise, ID and SUEZ offices at 8248 W. Victory Rd., Boise, ID. Digital copies are also available from the
Commission's homepage at www.puc.idaho.gov. Customers may subscribe to the Commission's RSS feed (Rule 039.03) to
receive periodic updates via e-mail about the case.
Written comments regarding the utility's application may be filed with the Commission, ,.VVV4 r,uc. uariU yuV.
How can I reach SUEZ if I have additional questions?
Our representatives are available to answer your questions during normal business hours at 208 362 7304.
www.mysuezwater.com
CityEagle_00148
6t, wo 91513140
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Full Name: NLBangle
Last Name: Bangle
Middle Name: L
First Name: N
Company: HZO Solutions LLC
Business (469) 3I5-0II8
E-mail: nbang|e@h2o-so|ubond|cnet
Friday, 3anuary 26, 2018 2:34 PM:
From: w L Bangle <nbangleNh2o-solutiunsllc.net`
Sent: Friday' zanuary 26' 2018 2:29 PM
To: nellie nekow
subject: Re: City of Eagle Water Rates
Here you go!
N L Bangle
Telephone [phone]
[e-mail]<mailto:[e-mail],
unless otherwise indicated' this message is intended only for the personal and confidential use of the
designated recipient(s) named above. If you are not the intended recipient of this message you are hereby
notified that any review, dissemination, distribution or copying of this message is strictly prohibited.
This communication is for information purposes only and should not be regarded as an offer to sell or as
a solicitation of an offer to buy any financial product or service, an official confirmation of any
transaction' or as an official statement of the entity sending this message. Email transmission cannot be
guaranteed to be secure or error-free. Therefore' we do not represent that this information is complete
or accurate and it should not be relied upon as such. All information is subject to change without
notice.
On Dec 5, 2017, at 1:32 PM, Kellie Rekow <[e-mail]<mailto:[e-mail]>> wrote:
Hi Norm,
I'm attaching our current water rates and fees as approved by the city council on 9-12-2017. we bill
every month and all of our meters are cubic feet.
I am also attaching a rate sheet for Eagle water com I'm sure you already have that but at least
you'll have them both in one email should you need them at the same time. It's my understanding these
rates were set on 3-25-1987.
we are scheduled to go before city council next week to discuss an increase to our base fee only.
Please let me know if you need anything else.
Thank you,
Kellie
City of Eagle
xellie Rekmw' cmc
660 s Civic Lane
Po Box 1520
Eagle, zo 83616
Phone: [phone]
Fax: [phone]
Office Hours: m-F' 8:00 mn to 5:00 PM
krekowNcityofeagle.org^mailto:krekow0cityofeagle.org>
*ww.cityofeagle.org^http://*ww.cityufeagle.org/,
<Resolution 17-23 setting water rates, fee schedule attached.pdf><EWC Rates mailed to customers 2017.pdf>
Kellie Rekow
From: Jim Reynolds
Sent: Wednesday, April 08, 2015 1:45 PM
To: Kellie Rekow
Subject: FW: Follow Up
Kellie
This is the firm. Maurice and his son Tommy (BSU former player) are based in Dallas. The are in Hillsborough County
Florida and North Carolina.
I have an earlier one I will send to you as well.
Jim
From: Maurice Gallarda fmailto:[e-mail]]
Sent: Tuesday, April 07, 2015 9:30 AM
To: Jim Reynolds
Subject: Follow Up
Hi Jim,
If you want to go deeper in your due diligence, please feel free to contact the County in Alabama that we have provided and continue to
provide wholesale water to. We are 3 years into a 10 year agreement and have pumped nearly 1 billion gallons over the 3 years and
that averages over 900,000 gallons per day. The population is approximately 9,500 with some 3,100 residences. If you are interested
here is the head to contact;
Ronnie Woodard, Manager
East Lauderdale County Water & Fire Protection Authority
2943 Highway 101
Rogersville, AL 35652
Tel. [phone]
Best regards,
Maurice
Maurice W. Gallarda, PE
Managing Member and Principal Engineer
1-P L U R I S
Pluris Holdings LLC
T 214.220.3412 F 214.965.9090
2100 McKinney A%enue, Suite 1550, Dallas, TX 75201
1
CityEagle_00152
1111', C-mail i, 111biCC1 (u (1IC Pluri, I Iol(Iinl, email (Ii,Clamxx
Click to read full disclaimer.
2
CityEagle_00153
Sharon Bergmann
From:
Sent;
To,
Cc.
Subject-,
Attachments,
Susan E. Buxton [SEB @msbtiaw,corn]
Friday, July 18. 2008 10:30 ANI
Steve Guerber; Al Shoushtarian, CLB@msbtlaw,cor,-:; Mike Huffaker; Norris Semanko; Phil
Bandy; Sharon Bergmann; s)[e-mail]
Michael Echeita; vern cT [)olladEiyengineering.com', Kasey Ke:tterling; Bruce M. Smith; Cheryl
Bruehl
I"4V: EAGAV`08-03
01.18,08 Exhibit 5 thru Tpdf; 07.18.08 REPORT TO IPUC.pdf
Here is Etl`u'C's filing to the PUC. Susan
Moore Smith Buxton & Turcke:, Chartered
950 'Al. Bannock Street, Suite 520
Boise, Idaho 83702
Phone: 208!331-1800
Fax: [phone]
C,G)WIDENTIALITY NOTIC Ii is fr,,,_ ~ : ,,,~ ~~r,G,:ded only Ik w , of the individual(s) named as redoWnts. II may crintain info t€tgtion that is r rwiloged,
i f3l.;Jc3n~f 7.Yd't, f1i ..; :.S;,t f>;:~E'Y? S;i ,. ,. ,_f <f 7 ffEY~ s i' a£7l>ii.:aT3;8 s' 1e 3i< ,ILJii fElti, but 31 ~} `:~3 n~tC:d f'a ~`. eas •3'f`2y W ,f t t.3 iL'IIE.g:. ar, Or v ori( prod E='f ad%;;;trine, if you ar?
° the ends :? 3. £iE.t„E"J., i4 oy _e iiA.-orle. flot fu:ive &SN0 e or eo~v this trans/ 1lSssiz) 3. disclose ifs
wnIeni; om tvf w 8 eny action in reliant.,, C,m this infof.`naUan ii contains, i N,; i_.--mall is not Intended for wease to oi-i using pairlues, Opposing Qcuat ~I ~s1r any (E. #
thtifd biers?n Ar,erttity, Copies of t'1Es e -:2k7i should not be `.kopt iri vow'; (t'_ar file,. 1f you grin; 6 ~y of this urtlf@Il, t•iicio it In a s5epparat'e file; lNted "Ailoffigy.4
kf=ist P rte 3legf .'. DO not C)r0Cfl3i e a COPY Of ti' is e f":r.Eli 3! ,. iscoVery,
Message-----
From: Nina I'rnaiIto;assistant@richards€ nanrloleary,com]
Sent. Friday, July 1.8, 2008 9:50 AM
Too Susan E. Buxton; richfe:lir@ -ableorle.r et
Cc. eaglewaterc:o(qbit rnaI—L.net
Subject: EAG-W-08-01
PLEASE SEE .ATTACHED. ALSO, NOTE THAT EXHIBIT #3 IS NOT COMPLETE, AS IT
I NCLUDES A BLUEPRINT, THAT EXHIBIT IS COMPLETE IN THE MAILING TO YOU.
ic:hardsm & O'Leary PLIC
51.5 loo 27th. Street, 83702
O. ox 7218,837/07
Boise, Idaho
Voice: [phone]
Facs riffle. (208) 938-7/904
I
CityEagle_00154
MOLLY OJA-ARY QSR 4 4298)
Richardiom & O'Txary.: PLLC
515 Noel: 2?" SSIrecl
M), Box "2l8
Boise, Id ..0 837077
T'cJeph()11Q.'. (2.0.9) 938-7900
Fm (208) 9384904
'Iummeys for Eagk- Water conip-an~". 111c,
BEFORE, 'ITIE
IDAHO PUBLIC LYFUJITTS COMMISS10IN
FLOATI NG F FATHER PARTN ERS,
CASE lot! FING-W-08-01
COMPLAINANT
VT
EA('Tl,l,'-. WATE.'A (,0M'PANY, INC.
RU~',SPOINDEMI'
ICI PORT 0:1-AiAGUA, WATER "I'D THE
IDARO IMEMW 1XV111TIES
CO Pvt N1413; SS I ON
W IN1 EE S NTOW, Eagk Water CampaqDy. Inc, ("Faggle Wa'---cr") and, by and thro ugh
tmdu9Wmd emmsd of record, ffics this Report to 4aw in accordance widl
Commission Order Na. 30595 in fficabove-cal-tioned rnaAtcr.
Eagle Wat-er.entered huo a &W hamle Agmement ("Agreeme-pW-1 with flic City of
E:agle, Ada Idaho on Saturday, My 11 AWS, Sec 1,MC, T~.xhibit 2, attached,
Based err that Agreement, 1"a le Water has been dill uill pro cceding with afi nc~,;ossary
permits vaid rclated. construction work. W iastaU the necessary infrastructure to., (1) comply V.-Uh
Me, Idaho .')--P"snmcm of Qwality7s Conscm Order dated, February 24 20 6 Rnd its
s 1007 accc 'fin g Water's Final Engbacerhig Repcwt. ubsequent letwr dated Jifly 6 '-
PUC Fxhibilts 10*2 and 103, respecti-vely.
1."AGLE W,'Vj'TR.C(.)MPANY, INC~,
REPORTTO COMIMISSION - 1
MyEagh,00155
1. SubYtAc d glans on my 11. 2008 fat .si;.iv is hi ': the flowing 1 Qatlii: r Mobile
I for Pau-k ("the Park") to DJ.:,Q. Agee E;hill t 3, w_lai:hed, W alcl:
e xp cros that >t SAN i's.L.c.i ;C D`.'Q approval ofllwsc plans on Friday w ul of
2.. S>:;cured, s .1i,ifiii€. t;t;S.iiii the Ada Ci€t ary lUghsjV%€u 3001(<i.t IID) to cow old
Highway 55 to install 3i I1e'.4< water main to S "'r /- IN Park, uve, WC. Exhibit 4
attached,
3, t.'onipl tee. Me 4I4'43xk r Percn€;ed to Iiern 2, i€bovo.
4. Received d approval val IForn ACID R the road =k niGc ssa y del 6.`fiti:;€3:u i:t the
A In cc, wii.:dwi Adlh I i', Haclay EmgineeHi t:£3ii1 ta:. , on hOmlI of Me. C:: y o
E,agglc rbi,... tt€ li conwplacr iii dejing to Dl ``➢ -iIat sho that iliic Lnae tic lb :vw e^ l
6. AC•€`;1''i.d iYt`r1len sEsori '€ct tam Mark Aks ii. 10- 1;i'iLY,ineei'i➢ig Mat€agi -.,r fm.'
D:£ Q. that No is pi`ti;p..iced 10 lift Ow. 3sYE:si%a .t'iurn on new w;"i_ncctinns to Faj'.,h,
N"ux:.te 5 system upon Completion of me h3$F;-tme Construction and inspection € f
s« mci by D€ Q, See:' i,VVt... Exhibit 6, (DEQ's inspection iiwst L> C:iC the
.3mac day cons>iuct3, .n takes jflaYk? as ACT ID 2'cquires contractors rs to open, ba, 1- fill
and I'ir-pave any p<i,-€:ti`ent disturbaneo it one ay,)
Eagle '; il1 ')'cgit, con dit€i~tii"n O the Inte fie on mi xhCl ' ju!.y 21" an't
cornplc,lesaid 20 at Me lei <°SL Although € onstru i .d.t.€i o
Ells:`. 1;Tlortio i .if is relatively Yt'ipk, tiv.. .,oft idas y } IT3TI1TE.oring pbniy approved by 1NQ
cF,v, Atll,ust : 5; 20 07 s,5#.£' )-, W{, ~: Exhibit f„ a'jached)~ did not address -nii.ining, of 1.2 0 lC3
14,000 gallons o ester from the Ile during construction.. Thill , red .".Giving tai it
a ngT:neel'ing issue has i'c= hired some, tidilitt4an<il lwrk, ­11 e t<:€;,-retif plan is to o Y,JinatE
F-, 4\,,I-,E WA FER Ci-€ 511•FANY, INC.
MyEagle_00156
Tvi-.h Wrigja Broqhen, conssucuou to In WV A a, We tine exc,, s water ft. -Roil compacth,;g
%wwk it is doing on a Wdodmme Pro; iecf' bebow thc. lc"-"atlon,
(Axe Ow WHe is completed (faesday,Jtldy 22"'attfi.-c la',Qst)~ Eagle wa'<C,' -will
rewra hs Men% to COMPLONg dic'mer service infietstructure It , th,,~ Park, 'Fha, "vork
Wul consht of hn"Ohng appPoximately 104eet of vastr 1-ne, itmm'.ffi-ng a fik,e
&WHIg a WNW prevention device; and inmalfing two melcns for NI' asler Nile.-,er
St; mice m the Park un uI rl".agic Wat,CC a Master Wier TWi ff, Rotmt V Dcshnizn, Jr„
President c4 ~,Vat.m c"'-Ai In ak.'s lhat this con: Ituciion ,vorh "'vilt takc 1 ce to 11 , -~ur
days and vO require the Floadrig Feather Partnerq LLC to mgMate whh As p for nbW~,,,',
coluractv-;%
In Te imehm~ Eag~k, has suppled and WH contzinue to supNy the Park math
potable water for drWking and cooking. lie Park coOrmcs to be Me to use its myren't
,vcll wa r wher "kmcsilo. ,,,ccds
Fawe Wal,-r -cspcctfully requests that the Cuttlinismon alk)w i" w co-ntinu v4.iffi
,he abovc-dew.6bcd mwk to cosme service to the Park can beghi by the cad of thi,3
m. the lalest,
RESPECTFULLY MTBNIFFTE~D 1his __day ofJuly,, 2,008,
lx'ichardson & O!Lcary PAL".1—C!,
dIj 1 . " 1 ,
W et' MK, .-A
com '13) hw,p Y,
DW L E, `,A1 R CON!, PANY ~ I NC
SION - 3
MyEagh,00157
C+,RTIFICXIT, OF SERVICE
y (' 1 t /~ y~y.~,
t
}-~~1~>
I:?I s}iyr~S'y},~~Cy9'~ R,,Ea~Y 4tyha-fty€S~1z~.(yyt~ i.i ~}181k~~noday..{of'ylyiu\ly~ 2y~~f3{Ey8~ ~1
p
~°:x~~.~.sc
tr
.d aI.rue
(tarnc,Grrect f::S(i y of he ~ti~lII~`~i Y.T CA L- L(31.3.: s~t .~..S"iF~i. TO ~'t. E S4✓1~~~+.~ .d ~.3AYLIC lf'~ ILITI.i. S
CEO NIMI SION 10 be served by the etlhod indicated b; low, at d addressed to the following:
Pli,)aunwf 1 w`d :i€er Patiners.. Ll.( .
UK if) 133711.
ka l?. Jewel' el' I
St',I:x ltary
Idaho Public Utilities Corru-nissioll
472 V! WhimMun Suvd
Boisz°:.ID 83702
Susan 'R. Buxton
Nwl ;tom € ith Buxton i Turcke, 4. lhm w€''cd
9510 W Bannock St Sri:_ 520
Boise, Idaho 83702
,X) U.& Mail. Postagc Prepaid
Hand Delivered
(X)l l unmpie.Ivlail
,1 Ovetl fight TvIail
Facsimile
Electronic li'vlail
(X) US, WL flosiag~e Prepaid
Hand D-e-Hvered
Overnight Mail.
(X' Elec;trollie kllail
Nina µCurtis
QyEagh_00158
EAGLE I)VATER COMPANY, INC%
IRU::'PoRTl'0 COMMISSION
CityEagle_00159
111 [`kt,83 (ie Agm4'.fl'I'2eS:l C'Agreee"el'&'i: f), d..iW as of July .fit, 2002, is K ' om ; k'.
y
MAMI Q P''nl'Y... TUC-,W1 .D,t;Aho 1 ,OOrpctt afio n ("fWC") and -tile City{ of 4g, e, Idaho. an. ltl iho
RPCR1 A
(' Ify 1'cc. ,fi S Oo3slrt L, l 3n{
y
ivns aT 1pj fl i3.Fto : e 3n1 lzi ~ l an water
a € LIg
"
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y
~F kgp,
B, 1°.W' ' c`:wn4 q :-nd L,o ldncj:,i a wi ler utility sllllply and distrtl^ittioll b13."Y¢a""£f,~ ('<Vvw(t -
sy'gicr"d") ri
,,
s1:E1~d a3
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.gle, !"laho- N" yhas .;~ntar dliS, `<~
y
~€~flov~ lh,', > 11< One
vicinity +.~.L tile 4.P3~:~nage "F-,.:,. k ''~~3.~~d ~~~`t~i -,-c r to fe~d3~e4iraril Y s..>4~~€~1~ri,i 1. i?~.1c.h £eAistyi butien
line-N t s f.tt.ia lax~ik in order To ,ati f ct-irtai:n regulatory T=<,qallta;;t Brits
1W intemdl s to use the Ji.8i P at j it o~+,°n"plet('s a 3a5•v
well and DEQ ile t€:1'111inet , tht , lntertic 1E w) longer needcd to 1ogul t€, y
t> qtlll£:me s,
sa.aera;L'men
1. Water Stsw,ige Cmm wiwi- Oty horebtf that ininnediwely upon t1,t
this `t'a'€U 3.l.l.o'61, to mItst$lw at W'sLi11C'. ad-orm;1 C°Ion and E:wo
y PE:tP€1`;izll '-copt1 w,Ikd L 'stc s<,€Svs s mith a MmOr .STA,34;5s.'t.l .for is future d£k,.;.r„€` N€aMe, bs :3<mm
IMPS l :{.mE1`ift 1y-::yn k,Iah £3F.illfi;tk. 11,€lt,s SO the Sto axS.0 aF„. «'+,l 11{)€>I; £,(, ~ ! a:L;s'"€ t. -"s<:I'ts
previously °
,
tu rlttte
My £
t1' e
(
City v-,,
}
and
$$
~~ ~~`rx~cd by he Idaho ,~ t:~r€,
5
t„~~raF; ~£~ t_;€~ ;1<i €~,tt 'inal
i ~~.~•ah,ty t~~'~.~EQ"~. ~`" y o3.}~ MI bave tht- r1 i-It.. to ~.1p~"?1'„ vo t'h'r, lf~\..:. }s.,qi€ ,£€€;.1. .y➢3.<u. ,w:`..€`
434 st ll:g~S"d.~,c w- AM do so no l5~: e li £.FF 24 hams a3 k 1;~v~~T 3!~. `t Y{ : € I::. l' t.I';,'.f 1.Ct~ l<'li;; .yf€, al ~.~~.'s
the ?";tt':£t'k ; VVC ,}ball e11sute w ;at is p". A . ad in a workmanike €€£<.: ner and in
uomplionm 06 all aplinabic wMas whi €'e rul altaay City i?l,<ks € o w;nesent ,om
£,'~l,-
~3i ~)t' lu i
g
'€.~.~#~t. < 4,:z t8£=.,L'o'€i,t~3 d (` ~... t;.€~?€ o iis} I~t r:<}~.Ir ~1r~; 'to t,c Js ai° ,-d i2 •,<
g
l"ANI
3€ €"s,`??:€) m Ilan (.3t' <.i1,€.S{ CSwa dwIt1TC'At, ..Ild ix,<` l._
44u ui and tho !. °-"4'nch gate, valve,
2.x16313 <F ;CBId;: (in We. 1% I <;ltms agme Um", dl ,,~ of cc lmt>3`Ise I to pmvid. °
redi~~-AiI .t fJ1 - flow (€ 11"11 and I.} not 3 €€zC t;
t~ ~{{ ~NF`ia.,, Yx.6~.. s, nL.Fr$l?€d.
3. 1.I). t cii.ls;>lds.:.€all'm op the 0q, MAR I1'dtt','s 0,6 : 4 ~ti £ I'
#
3~T'$C: lzl£yt allowing ~i%1(.'
€ 3 ;_ ~f11. It rR ' t t t. 1$ ( is a ' t~' 7,- €a~~}5.'S&~i ; t~l ~,~t~"y
.
~' LE' z.,i.,•t > ~~ll;t::i~ T,{., t13... ~ e,,, s~ 3\. .': as :y;4a,~:~ .£ `tti r ~§.~ „t ,.3
MTVOF U.OU.—.EAGLE Nd4 ~S P CO:'t£, AN :En
WyEagh_00160
I. tons; of NVaterlQ'i?t,.- r.',"J(" ap too its P} it ifs 1h, CRY 60, (11 Form.
ANN io Law 14, to Wn (to) rubiz A[ 01".volef x", ~:'tl
AgIns worendy Ism"I by JIM% jWw"! Wks. Mawr Ingigs aru IHM unsasNafl" U')
innimahn lot imegii(,' of €~Al- nogulmn-Y
$##€'€ I$ nal 'Ilhis RUN of Rim lutusal sinH Q numm"ont
Mc ,.:j.;•1 I or ;rr I~y vl~' C!ity clth"'."r than fbr a nVullnuNi fou"At by JAVAC gir
Secufnr~ "", buRwi,
1 *}' i`."'!I`ri"s'we"L In Whrai, INVY(I AM pay Ci~y iz, tc" fo -I ~Win Ank OF TICIMAT) in munih lh".': is
complord Q`<. RI al""tn ov"" 1)~z~ '~ do J~ ` ~",i`ho 1, )ep"k rti' -aerlt 0"" I"'I.IV--mr-imontal
4, TWA= DA Agreanant AN! comnwwo uran xyrixonwo by In i Ty uf A# m.1
QuAlUni of On Wwric Choi K he skul wd Ihis Non amen t m"I Ta
TwAs !,€ x$;, Mail convinus =ndrionnotrth P) loq, as the Wait: cannewim; in nonds! Q,
I&W In Ag W dkvw6wr ff Hw Inrevin rmlnkic"' I mi'wdl€'• fl ow U'h"`-
CaO Pnyllitw '~Jndl An pawsh (5%),>€<, a,. .€:`, 12
to exu.qld 'n- modit~ r-his
i$'!0 rato # i ti to. Al rensawl de request City agrc~"'S tG 0
t""')YV in, its tl'~t , orL.), lo v., col~'J ilioi~k.~ Sol Rah in An norrou too) conglo coder
On 'I l ~'~? in 13VVCYY onvivi iaWy md to came whe
al,, iurn 'no twun"aW This Sea% 5 SLOE wd YnTa,~~:' C'iq to 'pc~'O "iny fwiE iat'x.;
my aclonn that it is not lawbAly punbued ta Lo u '.'!" f~o~:
-ty to L 4-iiz~ S--diori 5, powded the snat: havc been Ige,1mawyl by
C,
6. Right of Fir,~( del(rolints to 101 (n Convey i~.Ill lrn-~' ,-,art of its 8'Vw~~r
-13V'~' -T-o' k"'Int:h ~hall Is Wood to irJudr. Na wd he RAN to, water nPlus, welk anti 19%Ae
Monti 1030 ollyr G this Nvalrr symn, KIM 1100hyt in,,,
wrox3a to Al all 04 f`>:€ y rx.tion of lot Nvaley svwvtri~ T`AVC~ all j'.Jv:`
)`AVC:'.', tl"'--si i. to :,,ufl ilia aliwont and lana of swh o1kr in damil, CIN AS hmw Te
andusivc UK Ar 30 d"; An recuiviag Such no% 10 powde 11060 of huma U, PU&Nny V
Thor qyMew in Purdwi 0000A to Whkh 101 Wria Idn 0MV Men td nim f da y u O AOak,
provided, that if 1helthd pany War is Rix am"AWMAin 0 .Ih.cr' llin th City "',Aafl' lri>"vC% fl it."
Q0 to pay Cho low 1"ONZ vahw Cd mph rMakInKrivin i% CAS, Upoll rVivery V60 VAN M,
hlt~'nr 10 " d"rdl, hwbd a reverim QUI 001% for Ow Plujose of Seoul ing mar,
c<pp-ov"fl o", Ow, junuhay; at It rew avaUds slook; aaw nodAn' 002t Wy QRS Av&y
avAhAde In a cailud, amuniq ontuqvisc hwd, gamad f0d, or Awr €<' 2;. avallaide Gly tund
6r
kc
aunAN to 1"o"r offlri;" ~~" I.
DaY shall 31€S'. X13 rho eaTesi randble chethn dam hand o" din Am inViited, 11 1xv ng lip!
noon of smy sw 'utc~-ihin f'o~ t`ti1.' -mdwi of ag aquKA paNK lwadqp. if On hood 6
ny"mcd ai said ohUmt, the (Ity 5101 Poxnai in gowl R111h 10 recury Inowly 10 Pay 10
as as InnsHN. of tlhe
Chy Am! EW din! P dw A&M ol' this forsh"i tj AT on mrwo! utwon ihnni 180 days htmi I,,-
date of thf; bond ot. i-J." 1he t~lecfiwl I,,, in S3 it'gal unt,
0TY (T EAGI 10—FAR E WA1t.00hVAN'V
INI HITIS AGRUNI AT - -2
MyEagh,00161
sh"dt ok-(.ur no aKmn Wn 99 L&Y'S aff'n' 1nal molutku-1 of.nny suoh f n,
to no <i dud a mumn ho"d e-Wou i• n<:>t rt'quiiz'd
Ja i. ctl
'
v zm!"dk"b:e or a Cap"d RCCMML enw;pnwr bawl, skilejal Wl. (a QUA susloy mydah&
coy find ov OXOWA to fiomcu die Unnamon in An A holding ho!'~'a
SWCAOM Of 141 1"ludic' hAwcal this UQ Uml FAT do! 01 Tc SAM of Rio Sufan 6
~"I(t ditys Am, the (TY Pywides fific With is islice of War h"r
Pumhax. jor Pawas of His NON On 6, AS lughl arvint RAW Awy Savy to an "PA"C'
of Conl?A WaYSMA With ummB ;me a 4 sn"C'., in Ivlhiw]r (j) cd!
-% Sytn" k Add to a thid padj in (6) Man in a :*wk s&,
or awwar imnsanivi aq 6 resuh of Which Said Cb;"'d J'~lrly
vodng and ¢3#.l t:° cQut stock ef MR.`
Thi" R"'pha 1)'- <ind yowl nuivive rev roodoman or 0%,
mi-sinTo 0HAUN by MY py NWOR 7, beliny.
T "Funnins"u. EAK! or TO DIV who! love the KPAI 10 mnimin Ile WeNim Connonvor
pbui M! days I&Y wSon 3"Ovo to W! olhcr jymy. W W evao Me (Ty WrAmms Uw haw&
mancaki In any tanon odi"n, dIan a ' J?vt11t it t"' t"'VV'C
then file. kights oi"Fils( Rcftla4i iik SecdcliN 3 6 A.gr~xtv,-),nl, sihall' hkovist
fl, , tit h Fach Wividrial exemoing this Allucauvrit below on' of f,'
IMUCK, and Woraws 6) 1hp odt"—' flwu ilia, dt,,flycry and Inalormanse of Ws
Agmanow l Men duly WWWW", In; A necessary mpme or imu&Fa ;i0q, bly
joug, that.aW AdividuM A Ady awl"Wod to wMAC and CAm his Awranyu! on Ishof oll
such wrly, told "Lht"'- i-r" jr =n'3J "1-11.id of
noww" art t Ay in sacmd,moc loth in uln"~;
T"' -9, ro"t-Ce NLijfnlre' xC e'pl' for obliga, 1-ions T41 ulaka pa~;-mclf't, I
pw WU be exemed w Ac Awn! that fKaSnuume K rondowd QmAbb by not, Wn flowl,
gaveminmal z":t% ordays or wKwin, to any Am nano, Awto nAlm, h, p(Gal is begood
00 ton"01 mid W, (~mt?.~vd byth~..~ off ill"-' uon-p ~ PrIv'
ariiedies.10, Aofalilt 11,
i 04 1, DeWT Each of Wo Uo"ing evvnl~ ~'J'vMl "I-nislitu'-w Vn ~'Ve-nt of d"'llau'lL,
TIT4Ilr -ft, "I! '.' lv?.i € € cm cw be Rnv I hc d au- whAT H4 is due, an iv paywa u->
b<i, inade to flne 0~ y plvivara to uiw 11;mvisiots thi~, Agrcojneat; or
I
10.2. Ile invalks. ff any ilc- u oocatrt Che arty Shall 'g'Y"'-' fbe,
de~faljltillg' 7,f dcki~,01 num he cmud WAK h0wo (15) An ofthc
11mve WWI& IMM Th &"' :ajlt bw wrMt It rumnK CIUM3 Svid6n fen (16.1"
days aher glongthe tilt dAndling pa0y o"ithin suab ten (10)
day pe0od to cup: such dl WA! and ptasomms W Name to koncluska wili ruasonidds d0gence.
Of Y OF FAGLF'-- FA(if F' VVATUR COWANY
iitrHirrfEAfiR!OENIE14T- i
CRyEagh,00162
of appWAQUASICIOU.
: s,<.m" 01. <.<.€ A "a<l. i. n r,.l 's• €s t w 3 i Ly n n1 play ?€3t eT
of us hums, ar in any
s << .jai use € ~('3I€,,,y insT o in clod b'y"J.,i. if,'33II<:tO or arm
12 NOWL Al nofita:s or W €
adz,h<and, NOW by16;`;5'4,<,;.0 n. :€l€ h!<s.:3?zqu soot by €O W>dor ,fib01W.tl.3 m.
tedj and o a tr~;t`.-~t~~t. z,+.,n`~iiC: .6 sF~.£> cfi.z~l postage ~,.<,:-I~' € .~ (a'4€€ <..>l`t, ~<Z ~._. ci% :ni t~~k'> ,tl
City; City o 'igI"
ON, ON. COY Cnerk
Eagh,ID 83616
IN`:
3i"€ `,~_,>„ .: v: prMod 1 <.u
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C. h, =.ii 1, `l~€ g
'if to Eagk'Water: Eagle N
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Yf`aE~"
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a ~.oA?~A~`}aq' .EFI .
Voth it € N:` py to; "Aolly t 1' # :: €try
b
PA Box
Whas peur£naUy MAW AM be de.ca wed. gNep t €~~ ay sf_3 delivered, give) by
over€€t ht €;K;?11rier shall bu deemed ;Wen on Q Brst bus" nes da Moming Hie MAg £~a ,
'M,t ~s mx1~.icd 4w provided b ; ni shall bc, deet'nod givwk t€i€ Ilie third bt, sin vas dac followip !Tw
11:1a ling date. Notk' of Amp of addmss shall be Coven b°y wr ut ex-k 1 ovi":e in a xt1anner &WILd
in Us Section 12,
13,~adk "118$aia`: i 33 B ;i 111 1>~k $Y Ii CS€3°L.3iin a€.. K ufl'vt".i1➢.:i't e11 ;a'~ T35~€:€t.i:
in £ii':cordaT'ce 3aAth the laws of die SN!e.. of ld':dlo €e'.k, rd tr:3 cboic:, - ,. Em4r
14. Cours1:erpa ts. I>, \ dgo nt :Tiny x« signed ii -i ('-Ofjnter pivts' each of vdlioh
E =Sfitutc f461 fat.# ku T3 it*€a; 1 aet:i iiat 1 <€i .,
CITY. OF !~A ri:,E AGLI-; WATER COMPANY
MyEagle_00163
J'N' WHEREOF, th~, partie's thi~ AgFeewvtnt as c4 the &,,te Nsj
W~Umn abcve,
ENVIC,
city:
all
iY
Robat V. WAS, it/ lhvf~~,idvntv 1,
01V 01" LAGLV, IDAHO
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ATTES?
MAN
Sh El BeTuMal CA Y L. qi~,
C- ~V! OF IIAOLE 8AGLE WAIVI,,. 0)ltVPRAjKy
RNITMUIR AGREEME14T - ~
CAyEagh_00164
~9
EAGLEVVATER, CO[) &3 Rd,
REPORTT,0 COMMSKA
CityEagle_00165
707 ANA, ST Ghw"~
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MyEagh,00166
EAGLEWATER GOAMPANK INC.,
WEPORT TO
CityEagle_00167
De".0 qffvmkt 21,1Q200H
'3775 'danl'Mnd
83714
(20R) 3817-UM
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rENIPURMY PERM Y APPLIGA-ekq4
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REPORT TO COIF AN IS$10N
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CityEagle_00172
to IR I%bffo to a 11
TEMPOnARY 1-060-MAY USE PERMIT AF~PLICATKS
ACHD (,-0NGTf4U(,M0kJ DEPAROVENT
FAX A f208) 4,87-t~289 OR E-MAIL, TO
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Eagle, ld~aho 83616
Phone, Fax.; [phone]
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CityEagle_00175
CityEagle_00176
i\t:'.7-;OF'O' .M iw °.✓S'elfASSEE: N
CityEagle_00177
Page I of '."
Molly O'leary
Ffoin~ V— fie
Scow, Thursday, iu, y 17, 20108 12:56 P110;
'To., Nlofly
Cc: Tusan BuxWn~ Baxe SMM% VhH Echefta'
504ect: FLY: h/lodeling &,enario~ - EWC anid (,iii of Eagle
Nil, iY:: Oer ow you SO Sa owe d RU, Mason's remayi (beluw) that rho only; <? .o
Robed andRi Me TOW I was abn to wak ou; a NmWo na Won mops ~i C`~~' ~~t {e J-.'/ n~cg
set as Ali
'.vho wii! l is i") "':wlk up
est'10" , V*'
Fn")nl: ma lay
July I-F, 7~26 ANI
CC:
Liy ~o i Vl I'-,
A%
I am pumamd Io We nut Snez WN no ka r-w rywyAmns as socn ihe
by DEC FdkmQVuL 1nownWrAbn Woke FFUHPcan
I ,•m, n Me PUID WK cook We^ deadlaw a ten, days, but I do) nN & nov that ST sure I <i :#%`i hini; k4r,
DeShain s vnv& midmss Ri Aclude him, 1 tot enK ths 41 hol and Q me .,....•e €- Pwoun
a ~' ?.£€'w t I U" C,
Othe.." can be made for subdivIbns and sanitar res~.riotions hfted v at1 b--;iS aft-er the
letter is issuwd
Thanl,~-, to ali for yow- hard ~xorkln getting dhis ci~~,ne,
1445 NoTth, it-Imhard
1.1oise, ID 83706
2080730266
Proni, 'vein "B}o,~ier
Sv ,~ 'd£ My 16,2063 Pi"i
TO PwOr IS&
Monty (''.t•€3'k Mzson; Tdany Floyd
Swbjecy RE: pkd~~Jimj S"c'emj;,ios .. B.Al. and Gt-Y of Ende
Peter,
hanks k~r the oppoMmly to Maw the of `she nlo'.Jel€ngv''ork this afternoon, TY-ia Jhfcrmation
and nncdel Puns thzi he combMed system w,oausfies, niiwrnutii r~vunir ipr,!. o;a~,wrsystem
gvquire;'nents, unde 'na recoflirnended modding scenadas both the City and'EWC w0l have adequate
Now anJ preamme an rniefgency event,
7/1712008
CRyEagh,00178
in a follov,a up ,cxwsmatktn mAth WW a is A T. m.lf'
With rA the site of 114we Sume"Inn Q nskr~] it ,nt
zDaned on I ou renYp; ct a wsuvchm peon A Hm A&C.)
Knonow, he = bigin constructing ,,,,,., on Nalay the 181. Kh complat or on h*wWay, JAy
21, Fn,,~,,n PUC Ocder No. 30591 E"12 has uptH Jul A A) povAn V A Commosen wRh a vpAwl
notk~e lh"T, Th~,-- I ',F 0". worato,~iurn ha~-, lifted and Vat WaW to F lo',J iv' i~,,,oO , forne
Pa* has NA, ii j,,ated," Rc.bw KdOWUmt he has Waited Mc necess,,a€,s' to cons-cuct,
the in,row the ti,--~;ing issues chnsle comtWon, DEQ appmvW of the Pa* connedbn
subrnitted W ACT A) pennk and DEQ H-ftIng of the i"emain the only
to 1€iti,,,1mg
!P to DeShazo and, vlth 'wo agencies, ii-.~Iv:, iver,--m' ~ could nd u rn.,cA t F< quence
of to to I-i's q----e~',horson '-tov the tinling of of the is
sanijanca Pewimps DEQ aqWd repy to EW on the Uning nnd r-c,'ify the cl,',y @~, ve ;. Ag'-,--dn,
thav< quiforywir oromptrogmses to mi€ and subnnitu-,N,
Vern
From:
Cc,. 0 Nle ahoirchus@deq,id; . gov;
Subjed: RE; ModOng.. Sce aric,, - EWCa;id -(':'t:y of Ea#~
vem,
i discussed youi. E-rna,61 Ath Mark Mason and Monty WmNx and Mat dinected me R) mWond as Ww,,;~
Anx 5hou1d respood io PK fcdf W Rem 114 of out kdOr to EV17 oiled jul 6, 2037 ny nydehng
th a k) A swrty scormus ivy! ver fykq 1; c-O ,W !R; a e
sabsieu tne E-VVC',/Gly -)' fIruj activate-d~
Scurp~ir,
B-IS ~,)f tkc j1.11,,, f'3 ''C)07 10n; reqWns tha, t "A"C, m'-dn
-,nt, o s uni b n on ,t3 ,A.Jt £ d ;e high pr s .t.tm ;.,,,om-.
Fwag FAA who wme ram mum) DFI() ur z'Aards WA a'. F,,; n W 100 1VOYSS Y
n Ito nwin bct}smx Man to ment Mon"Poodwy mqumnNe Wwan, Un
k k N 4) be V, I n H " i A 1 toe 1 U R T PW a 0 ","'v v"
wqhEm—ki Whe EVVG Qj; prensum onin m me evoo tho mOnAng
no- iF, o"ut of Somme H un; a on? late han :10 Usymnostiol "Ood w9my
assam, be Ums Symen.40 GQKW
y'e C'iLC) cca.A All v?
,u,,,,,xonc1 , am poop 4 UYUNTOW. U LIMA Q WK WAKS DE04 a *Et YMN 91 Make raw 2wwe=,~ns
it thr InWigenEure zwe Wye In saxyd nam bank; staky pamp , howAy Aid cpa 1AWF1 10,
vJ*lt
711712008
CRyEagh,00179
31ge l 3 f o _ ~3
opw€';lJonai and Me UsUng pug`€V in the main baosWr station out of sze~~icet all IRPDV%fS pr ssure1fic
gUkernentsfar FP HD and M0D+FF in the E VC, hig , pr- ssiu re zone arp Satisf.ed.
U you have any questions regarding the abo'ven, pl; ,ase contact ct rne.
Regard,
Peter :air; P.E.
,~arom Vwn Brewer [malls€ verr,@ ?.~33~~C.!!3<~r_:I~~ir~ ::l:}€r`:
f'<.£.~✓'~,...
Sent, Mi.3f1`enay, l€Sly :tuft ,2..0 s; 33 W
W
CXt Peter gait", Am Kee:
ub eck Modehng Sci':na7 - t'}a 1j 4, and City of E.:s?gle
Monty ard Wen
?
i t3 §~.
t
?, WON '. 1
11
£':. 7 t .E£.;%y ;>'>. :€'.t" Company :`1'}a` {E".'.5I`b.E~. ) '.clt~'
t
i: }a ':;: c,3 E inc i7~~..'W aE' l.'€'
t
C9v d by li~)M
M . £..}'. >t,.F o and 4. v GiV C ,. ad an July O. ~"i~~,t. ~T.i'itiE£{ }F }-} <~ il 7
model re:sulls wind narnativo in an englr??"- i-'i l repo f Wer 10 r{ 1 ,€E~ f ...:<.€C € iii}"
NO. DeSh zo and Jim Ree-, t£3 revievv E w snalter Friday, the 11I> The CAIy O'wn'ed you to kn 'a'a you will be,
€ef,;,e&'mg the analysis and model early next week.
3:'t
€ E..z;.€,.t Ems#-~et"<a.Ecd e.€ ~:::r%€'3rfE'.5 Ls3der€~;e a:3`,).:i ,. ~2L:f~t
p
tol:::~'~lti.., `,'off=` (e quest
0 i~~°ern ts . 4 ~<& :~ :: €.~c. ~.. ti <,.a t`:f'r,~ ~..,f_k€T1 ~. €£4:?;J ,7 >`~Jr,?'_E.£. (,.T,f t,~~. <C: am! ~.yA of Fagl ) .,afnnOWc>< W'Y
roxpernnang solar deT and . lt€€,>: , pia, <3.e manpurn day d €71 ERIE; M Na h3w and p, <> low d €`:ar€ia't with Wl
Me S.;. t r , 1',ee d Wate . ,a, C i .w en and S'ov :E P S Ssa bog,3l _,'o }f ~l'I o a
Co °>'< E£. . a symem of two E w.'3 ';•4.<,.,€ ......~.,.£~ win i 8 vals sur}Ay 1, class s. to RICO gnm •,nv d by v < 1de F€ e
J€gunk m; coonsAed a; a 1.€_01E,jt ° goon y ou 15 rpopmNXI OD roadEd 13 SYS= or denjup a ,EE " } Systel"'i
fire t'.tt ':€.. In Ka y% ``. em,. }• Ow omnway an E,f,r.£''' dilll€€, d to be sun w h ,.ach {:;j E}E, `a . E3 lw.
"Al s €'€1.':ll:aneously : 13 'sict-- Avsh"'.. would € r'0 f.3> t!'! s iL?f33:sf,.t... t€q: i4t 1<• :>'.'i€
E`i.pi i;.s?
trE:€kt ymj can ri;':"ond to Wis request prior as soon as 4L;i'Jonlent. `: ar*x~ for Vern
SIGAS71`99856711 01 -50298 R)551
7/1 712IMS
CityEagle_00180
EAGLEWA-TER COTAPANY, NC,
REPORT TO Wtv!MISSION
CityEagle_00181
?TOM,
~TATE 01- WN if)
11 15PARTMENT OF
ENVIFIC)NNENTAL Q_,`AL1!Y
.0
:'august 14, 2007
Mr, Rnbed In UkSWN jr,
F"agfi; Walu'r coflzpany, Inc,
172 440 law SOW
EEag1c, H) 83616
V
I , "S P & S - I 1 !112, GO?
cyn"n) t gK Ma coal-)
V alve & rkoure inlert;onnecoori With City of Raw 0 Symern
D,,av Mr. DeShazo~
111C Dtpartrilellt of Quali-ty (D-0,Y) lim" lvviewed tile preli'mililry eogiuo"ing? mport wid
0"nowd PEON an! ap"inntony rcadvad Augoy 8.200T Imusubg wo umpmumem, to "W
Wour Gunpany (FWU) SyRur mv hy,mmum A Q Ow hwaHudm"K pamme
md"Aya"Why Ww (PWSV) Wrig Fkmdng Fundis Wad
& a Buy h9ematmawn Whh the a„ #t'} of Dogm Wt r Systww",
F"jum Py hm"mg War *ARM SO Swupunnue witil I(1APA Wc-fl.,w i2whs ka SM.
Uh mkA% Wawr Syi­ (IRPOW",S) rojuhmicam as set fbi-th in their Final, Engineeftiur,3 Ryort,
mWpowd by WS on Inly 6, 2007,
'111"- imginuedniq report and the pkim and speciNcations lbr A sullm hupaivemcnis apFcar
to most to Sm of Who smdards, and areapproved based cm the condkions Noted behm,
FVTANI'Yt,&H~D~qj.
A, ,%h condidsm of IN Wa nuw be m" TIC gnAml W£"€4 N an to Deprimerd of
km I o~ I rl nn I I D"EQ,"i E ,a~l I €€ "p, ".t 0 1 i-, •,p I7~'Qva 1, supportiiig re, p orts or
Orr Ii.,I3< p.,,rl oflhv approved ohmmenu.
B, No 1£ •€y Ugh lii ! a copy (SW appo"I ImIr and the plans and ywciduallons, burmqz,
tha DFQ Npproval snunp, are del1vered to mW kqf vmfhejob six- As th
the consainton the can,~mmim inspocor, andflh: certil~rins ni-,
of die approval candidons,
Q 7 his opprksol m4H Inc Mod it 1) cousbucthn 1 nm ca"Wd by AquA 11 2MBa) Q
prqW, is impropeHy consuitcled, upohnal, or mahmimJ', or 3) ffie projiL,0filils to ftmetic'm as
&WW",
0, No rimu rial dedshm can be in id z fmm 111V approved p1w"S W, ithom Dr"Q';;
CRyEagh,00182
Robv~ V, DeShazj, Jr,
Wgust 14, 2007
Pago 2
Per the project dOwnwil, the p.rq)qc(.okvn.- or his repmmmWe dull ensure that a lWesdonal
Teprcicndrq.~, the EWC, provides supervOon of consuction and aMen docurnentadov
as Wow"
D. 'Within thirty days (30) after cornightion of numb uc€ icsn the projoct okvil'- or hii represen"ative
shall imvvidc EDCQ with on,, ofthe fol"Jowinl'.
L WON planq and qWkWous dQving Ac wok as nwOy emsmwo WsfWam
Whhmw Ann dw or"hudo appotwed plans and spevifications haw w=unW Thwe
Wwo phms Rod ncWTTAms AM be lampamd nvchsW by be pohnsOnd rughmoo
rapamble 1hr Amco Won an bchalf of the pvqJcct,,, ,v, ; wt' shall be bas,"A om i it
drondroys proGiad by Na con'r;amv and on fluld observaGns rnade by observeos) twdcr
fllt dh Q~tiun. of the proi"";ssional cngin'eer'
2. A W" of cenificadon that the work as ac~,110-y conswuowd has no signfficanf
uppancd plans and raj. Wations. 1 he !over shall V t, s. and
saki by We prolmW cnyna rcopoiNIR 10 Warminn to; behalf of In 1wrlevt
twnen wh! 00 Q hawd im voluill douinn; pro, ided by To "nowsw W on Add
o&euvadans mude Q ohosavmIQ under Me diScoflon of the prof ssional engio"n
U, 113~X-q.q-q-r pvcIEPE ttmm
A. DEQ has not condured a dole redow of to stortm mmter plans tind apecificationsand has rnado
no dwarnivohn regarding mlethur the phns a,ne specific10ow inchl de ap~p.. Opriate BN11-Is to
prmut gnmnd wamr and swKs Ynkr (Wality It is be p iject <"Wner's respon."P.'~ih?S to us'€~
<"Iorrn w'ato beo rimnagenord Frackes to provorit ground and surf,',,,c
13. If the constrmetion, of ths projew is ioflcipate to disturb one acre or more of land, or is
pad oft hall proja M'm dis"'uio.",' oneacry or iuxv of land, 11.)cn thx only be su"un In
ragulvion vada WHOW! Chavon Watur AU KWOK P011MATI DRIOrge WNWHOn SYSMIn
pmg"m wAdnimared by IN UX ''torv) In It
mnm swuld b,. t€i' #3 > a€1 raS,>cor'Jiog to the sta. nn pomlion
Prevaidon Plan and Me other requienaents oPthe genral pefmfl, The Conmraction
I Permit mid NoJcc of lnteW~ ~,an, be fo'mid at ....... ......... ..
C. A Shan Ann Activity Exc'nlpfion AaR be obtaked froni Craig Sfi~pard in the DEQ Bvisd
R(,gionzI Officesit 373-0357, A is Jove"my to dkha.ge vvastewoacr offsite to state vvatt~rz~ u3s'l
muh of dewMeAg a, Ovhivs,
D, DLQ vmde~stanlds that E%VC and the City of VQ Pubhc Wks Deparpona aR jonk
requeshng peroidssior# to instail an bvtvv: en tht~ two ! t£; of
St, aw! NN" 3E €}o 'Hud K& c n though the inf, o 'l tire reqln o'ed ~ ""j'o d'po
thi~ (Aq of Lao
w
: East <3<<i, Syr; ass Revervoiq 'NO1 not he
Opawknal UMA do C,` 1':# to yw. i)EQ k thu our ~ ins "Hmion of zh
the sWrivi AM to Wasymainn no b (vg€kt
unil DFQnppmv& bunched vooixm Wm vah,v and mrovate the inmunrovedon. Fheroquost
OF npproval W O n 00 shn as acOvain Q shyl Wrichwe VOOMMIMU tKa 0
061 A MW we WW& I ad 10 suply, t kb i€S€...%-,nwctkin is in plat c and Nib, operational,- 1%
CRyEagh,00183
Robert fit, DeSia e2: ), Jr,
August 14, 2007
d-Cige t
request sltail also ioolwje modeling data &r€ onstxat ng that tRPDWS :flo.w ar*d. pr ore
rerltzlre tterats r salistied fiar both during peal: hour dcmat d .tend maX.i°mum day
alemiand, plus fire flow scenarios with the LNYC Well #4 off lire .and with tho. LW C Wd.1141 6 fi!f
line (s€ k Itcm H.4 in DEQ's July 6:, 2007 lotter).
E. The restridions and c onditior€s set forth in DEQ s July 6, 2007 lettror continue to mr An in uffc t.
Please call the ~uit:llE,aky questions at [phone], or contact me Via c-mad at
pa.:tc~ <6a ir~zd~tl.idtattt:kc~~
Sincerdy,
Nt 8, Lair
Technical Enginwcr 11
PSBA;3
fats°1o=:€3res< Approved and Stamped 1're.li r;ir=.any En incs rind, icrnrt vrittt Plano arr€ She is catluras
C: Mark Nf as€eta; Boise Regional 0111"
Tiffar€ 'Fkiyd, Noise Regionai Office
Monty Marches, Boise Regional Office
Todd £matcher, E365C Regional Office
tartaes M, Rees, ,I'VI' C, 511', (i«•fApprGwd cnd&sfz-,ysd P1't`11.+7;is?L'.g 3')skr'i3kcd's £ Nrorl Wi `.`CFns a"41
Kawy Kettering, City of Eaglu oto Holladay EnSi et ring Compu,y
.8, RO Saurae Fil0, 8881e Ivafer Coarpany (w1,4ppraW:tjpd Stamped PreaihvnaryEnglr,eerirg Rep Orr -,fi;h
t lapisa..tee S"W CO; tfimis,)
DRO Mamigers file
TSP&S Reading, Fill"
CityEagle_00184
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CityEagle_00189
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RITC, HA IM K~*, i3O Nr 6~ (Y 11, EA-Wyr Km
A TTORNEYS AT LAW
Molly O'Leary
Tel: [phone] Fax: [phone]
[e-mail]
P.O. Box 7218 Boise, ID 83707 - 515 N. 27th St. Boise, ID 83702
18 July 17, 2008
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P 0 Box 83720
Boise ID 83720-0074
RE: Case No. EAG-W-08-01
Dear Ms. Jewell:
ZOO JUL 18 AM I I: I
Via hand delivery
I am enclosing an original and five (5) copies of the REPORT OF EAGLE
WATER TO THE IDAHO PUBLIC UTILITIES COMMISSION in the above
case.
Sincerely,
Nina Curtis
Richardson & O'Leary, PLLC
CityEagle_00190
MOLLY O'LEARY (ISB # 4298)
Richardson & O'Leary PLLC
515 North 27 h Street
P.O. Box 7218
Boise, Idaho 83707
Telephone: [phone]
Fax: [phone]
Attorneys for Eagle Water Company, Inc.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
FLOATING FEATHER PARTNERS, LLC,
COMPLAINANT
vs.
EAGLE WATER COMPANY, INC.
RESPONDENT
CASE NO. EAG-W-08-01
REPORT OF EAGLE WATER TO THE
IDAHO PUBLIC UTILITIES
COMMISSION
COMES NOW, Eagle Water Company, Inc. ("Eagle Water") and, by and through
undersigned counsel of record, files this Report to the Commission in accordance with
Commission Order No. 30595 in the above-captioned matter.
Eagle Water entered into a final Intertie Agreement ("Agreement") with the City of
Eagle, Ada County, Idaho on Saturday, July 12, 2008. See EWC Exhibit 2, attached.
Based on that Agreement, Eagle Water has been diligently proceeding with all necessary
permits and related construction work to install the necessary infrastructure to: (1) comply with
the Idaho Department of Environmental Quality's Consent Order dated February 24, 2006 and its
subsequent letter dated July 6, 2007, accepting Eagle Water's Final Engineering Report. See
PUC Exhibits 102 and 103, respectively.
EAGLE WATER COMPANY, INC.
REPORT TO COMMISSION -I
CityEagle_00191
To that end, Eagle Water has:
1. Submitted plans on July 11, 2008 for servicing the Floating Feather Mobile
Home Park ("the Park") to DEQ. See EWC Exhibit 3, attached. Eagle Water
expects that it will receive DEQ approval of these plans on Friday July 18th or
Monday, July 21 " at the latest.
2. Secured a permit from the Ada County Highway District (ACHD) to cross old
Highway 55 to install a new water main to serve the Park. See EWC Exhibit 4,
attached.
3. Completed the work referenced in Item 2, above.
4. Received approval from ACHD for the road work necessary to construct the
Intertie. See EWC Exhibit 5, attached.
5. In conjunction with Holladay Engineering Company, on behalf of the City of
Eagle, submitted computer modeling to DEQ that shows that the Intertie between
Eagle Water and the City of Eagle's system satisfies minimum municipal water
system requirements for both systems.
6. Received written assurance from Mark Mason, P.E., Engineering Manager for
DEQ, that he is prepared to lift the moratorium on new connections to Eagle
Water's system upon completion of the Intertie construction and inspection of
same by DEQ. See EWC Exhibit 6, attached. (DEQ's inspection must occur the
same day construction takes place as ACHD requires, contractors to open, backfill
and re-pave any pavement disturbance in one day.)
Eagle Water will begin construction of the Intertie on Monday July 21St and
complete said construction on Tuesday, July 22nd at the latest. Although construction of
the Intertie itself is relatively simple, the Holladay Engineering plans approved by DEQ
on August 17, 2007 (see EWC Exhibit 7, attached), did not address draining of 12,000 to
14,000 gallons of water from the line during construction. Thus, resolving that
engineering issue has required some additional work. The current plan is to coordinate
EAGLE WATER COMPANY, INC.
REPORT TO COMMISSION - 2
CityEagle_00192
with Wright Brothers Construction to allow it to use the excess water for soil compacting
work it is doing on a "Velodrome Project" below the Intertie location.
Once the Intertie is completed (Tuesday, July 22nd at the latest), Eagle Water will
return its attention to completing the water service infrastructure for the Park. That work
will consist of installing approximately 100-feet of water line; installing a fire hydrant;
installing a back-flow prevention device; and installing two meters for Master Meter
Service to the Park under Eagle Water's Master Meter Tariff. Robert V. DeShazo, Jr.,
President of Eagle Water, estimates that this construction work will take three to four
days and will require the Floating Feather Partners, LLC to coordinate with its plumbing
contractor.
In the interim, Eagle Water has supplied and will continue to supply the Park with
potable water for drinking and cooking. The Park continues to be able to use its current
well water for other domestic needs.
Eagle Water respectfully requests that the Commission allow it to continue with
the above-described work to ensure service to the Park can begin by the end of this
month at the latest.
RESPECTFULLY SUBMITTED thiskOklay of July, 2008.
Richardson & O'Leary P.L.L.C.
By
Molly 0
Attorney
Responden
EAGLE WATER COMPANY, INC.
REPORT TO COMMISSION - 3
r Company, Inc.
CityEagle_00193
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 18th day of July, 2008, 1 caused a true and
correct copy of the REPORT OF EAGLE WATER TO THE IDAHO PUBLIC UTILITIES
COMMISSION to be served by the method indicated below, and addressed to the following:
Floating Feather Partners, LLC,
Complainant
10028 W Cayuse Lane
Boise ID 83714
[e-mail]
Jean Jewell
Secretary
Idaho Public Utilities Commission
472 W Washington Street
Boise ID 83702
City of Eagle
Susan E. Buxton
Moore Smith Buxton & Turcke, Chartered
950 W Bannock St Ste 520
Boise, Idaho 83702
seb(&,msbtlaw.com
CERTIFICA I'L OF SERVICE - I
(X) U.S. Mail, Postage Prepaid
Hand Delivered
Overnight Mail
Facsimile
(X) Electronic Mail
( ) U.S. Mail, Postage Prepaid
(X) Hand Delivered
Overnight Mail
Facsimile
)Electronic Mail
(X) U.S. Mail, Postage Prepaid
)Hand Delivered
) Overnight Mail
jacsimile
(X) Electronic Mail
Signed
Nina Curtis
CityEagle_00194
EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00195
INTERTIE .A GREE,ME NT
This Intertie Agreement ("Agreement"), dated as of July 12, 2008, is between EagleWater Company, hic., an Idaho corporation ("EWC") and the City of Eagle., Idaho, an Idahomunicipal corporation ("City"),
Recitals
A. City recently consmicted and owns an approximate one million gallon water
storage tank (the "Storage Tank").
B. EWC owns and conducts a water utility supply and distribution business ("Water
System") in and around Eagle, Idaho. EWC has
'
water distribution lines in the
vicinity of the, Storage Tank and desires to temporarily connect such distribution
lines to the Storage Tank in order to satisfy certain regulatory requirements for
fire protection service to its customers.
C, EWC intends to use the Intel-tie as a temporary measure until it completes a new
well and DEQ determines the Intertie is no longer needed to rneet regulatory
requirements.
The parties agree as follows:
Agreement
1. Water Storage Connection. City hereby agrees that immediately tipon the execution of
this Agreement City will allow EWC to construct, at EWC's sole expense, a connection and two
manualty-controlled gate val-ves with a meter spool for a future meter ('lutertie") between
EWC's existing main distribution, lines and the Storage Tank based upon engineering plans
previously submitted by the City to and approved by the Idaho Department of Environmental
Quality ("DEQ"), City shall have the right to approve the location and manner of constructing
such Intertie and shall do so no later than 24 hours after EWC identifies its preferred location for
the intertie. EWC shall ensure that all work is performed in a workmanlike manner and in
compliance with all applicable codes and regulations. City makes no representations or
warranties, express or implied, concerning the Intertie or any benefits to be derived by EWC
therefrom. The City shall own the Intertie infrastructure save and except for the 12-inch Intertie
tee and the attached 12-inch gate valve.
2. Limitations On Use. The parties agree that the sole purpose of the Intertie is to provide
redundant fire flow protection capacity to EWC and is not intended to be a source of water for
EWC's normal operating requirements.
3. Payment. In consideration of the City entering into this Agreerment and allowing EWCto connect to the Storage Tank, EWC agrees to compensate the City as follows:
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGRERI\ENT - I
CityEagle_00196
3. 1. Lease of Water Rights. EWC agrees to grant the City the permanent Right of First
Refusal to lease up to tel, (I o) cubir, feet of water per second of certain municipal water
rights currently owned by EWC, provided such water rights are not necessary to
maintain the integrity of EWC's Water System, including compliance with all regulatory
requirements and EWC engineering plans. This Right of First Refusal shall be permanent
and shall survive any termination or other modification of this Agreement, save and
except for a termination by the City other than for a non-cured default by EWC per
Section 7, -below.
3.2. Cash Payment. In addition, EWC shall pay City a fee for the connection to the
Storage Tank of $10,000.00 per month commencing on the date the interconnection is
completed and approved by the Idaho Department of Environmental Quality (DEQ).
4. Duration'. This Agreement shall commence upon acceptance by the City of Eagle and
completion of the Intertie that is the subject of this Agreement ("Commencement"), and the
Intertie Lease shall continue month to-month so long as the Intertie connection is needed by
EWC in its sole discretion. If the Intertie continues past 18 months ftom the Cornmenoement
date, the Intertie Lease Cash Payment shall increase five percent (5%) and every 18 months
thereafter. The parties may mutually agree, in writing, to extend or modify this Agreement.
5. Moratorium. At EWC's reasonable request, City agrees to cooperate with EWC to
assist EWC in its efforts to satisfy the conditions set forth in the current DEQ Consent Order
establishing a moratorium on new connections in EWC's service territory and to cause the
moratorium to be terminated, This Section 5 shall not require City to expend any funds or take
any actions that it is not lawfully permitted to take. EWC shall reimburse the City for any costs
incurred by the City related to this Section 5, provided the same have been pre-approved by
EWC in writing.
6. Right of First Refusal, If EWC determines to sell or convey all or any part of its Water
System, which shall be deemed to include, but not be limited to, water rights, wells and other
infrastructure, and receives a bona fide offer for this Water System,, before making any
agreement to sell all or any portion of the Water System, EWC shall give notice to City stating
EWC's desire to sell and the amount and terms of such offer in detail. City shall have the
exclusive right for 30 days after receiving such notice to provide Notice of Intent to Purchase the
Water System or portion thereof to which such bona fide offer refers at the amount of said offer;
provided, that if the third party offer is for a consideration other than cash, the City shall have therovi
right to pay the fair market value of such consideration in cash. Upon delivery of the Notice of
Intent to Purchase, the City shall hold a revenue bond election for the purpose of securing voter
approval of the purchase at the next available election date and/or utilize City funds directly
available in a capital account, enterprise fund, general fund, or other readily available City fund
or account to complete the purchase. For the purpose of this Section 6, "Next Available Election
Date" shall mean the earliest possible election date based on the time required by law for legal
notice of such an election and for the conduct of any required public bearings. If the bond is
approved at said eledtion, the City shall proceed in good faith to secure bonds to pay the
purchase price ("Finance") as expeditiously as possible, Closing of the transaction between the
City and EWC that is the subject of this Section 6 shall not extend more than 180 days from the
date of the revenue bond election, or if the election is challenged in a legal proceeding, the
CITY OF EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 2
CityEagle_00197
Closing shall occur no more than 90 days after final resolution of any such legal challenge. Inthe event that a revenue bond election is not required because the City .has the necessary fundsdirectly available in a capital account, enterprise fund, general fund, or other readily availableCity fund or ac-count to finance the transaction in lieu of holding a revenue bond election, thenthe Closing of the transaction between the City and HWC that is the
.
subject of this Section 6shall occur no later than 60 days after the City provides EWC with its Notice of Intent toPurchase. For purposes of this Section 6, this Right of First Refusal applies solely to an "EWCChange of Control 'Transaction", which means one or a series of transactions in which (i) all orsubstantially all of EWC's Water System is sold to a third party, or (ii) there is a stock sale,merger, consolidation or similar transaction as a result of which said third party owns,a majorityof the outstanding voting and outstanding capital stock of EWC or any successor owner of EWC.This Right of First Refusal shall be permanent and shall survive any termination or othermodification of this Agreement, save and except for a termination by the City other than for anon-cured default by EWC per Section 7, below.
7. Termination. EWC or the City shall have the right to terminate the Intertie connectionupon 30 days prior written notice to the other party. In the event the City terminates the Intertieconnection for any reason other than a non-cured default by EWC under Section 10 of thisAgreement, then the Right,; of First Refusal in Sections 3 and 6 of this Agreement shall likewiseterminate.
8. Authority. Each individual executing this Agreement below on behalf of a partyrepresents and warrants to the other party that the execution, delivery and performance of thisAgreement has been duly authorized by all necessary corporate or municipal action by suchparty, that such individual is duly authorized to execute and deliver this Agreement on behalf ofsuch party, and that this Agreement is a legal and valid obligation of such party, enforceable
against such party in accordance with its terms.
9, Force Majeure, Except for obligations to make payment, nonperformance of eitherparty shall be excused to the extent that performance is rendered impossible by strike, fire, flood,governmental acts, orders or restrictions, or any other reason where failure to perform is beyond
the. control and not caused by the negligence of the non-performing party.
10, Default And Remedies.
10.1. Default. Each of the following events shall constitute an event of default-
10.1.1. EWC fails to make, on or before the date which it is due, any payment tobe made to the City pursuant to the provisions of this Agreement; or
10-1.2. Either party materially breaches this Agreement.
102, Remedies. If any default shall occur, the non-defaulting party shall give thedefaulting party notice of default. Such default must be cured within fifteen (15) days of theNotice of Default unless such default is curable but cannot be reasonably cured within ten (10)days after giving the Notice of Default and the defaulting party commences within such ten (10)day period to cure such default and prosecutes the same to conclusion with reasonable diligence.
CITY OF EAGLE - EAGLE WA YER COMPANY
INTERTIE AGREEMENT - 3
CityEagle_00198
The foregoing remedy shall be in addition to and shall not exclude any other remedy available tothe parties under applicable law.
11. Attorneys Fees. In the event an arbitration, suit or action is brought by any party underthis Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that theprevailing party shall be entitled to reasonable attorney fees to be fixed by the arbitrator, or courtof applicable jurisdiction.
12. Notices. All notices or other communications required or perrnitted hereunder, including
notices to Mortgagees, shall, unless otherwise provided herein, be in writing, shall be personallydelivered, delivered by reputable overnight courier, or sent by registered or certified mail, return
receipt requested., and postage prepaid, addressed to the parties at the following addresses:
if to the City: City of Eagle
Office of the City Clerk
660 East Civic 'Lane
Eagle, ID 83616
If to Eagle Water: Eagle Water Company, Inc.
172 West State Street
Eagle, ID 93616
With a copy to; Molly O'Leary
Richardson & O'Leary, PLLC
P.O. Box 7218
Boise, Idaho 83707
Notices personally delivered shall be deemed given the day so delivered. Notices given by
overnight courier shall be deemed given on the first business day following the mailing date.
Notices mailed as provided herein shall be deemed given on the third business day following the
mailing date. Notice of change of address shall be given by written notice in a manner detailed
in this Section 12.
13. Governing Law, The parties intend that this contract shall be governed by and construed
in accordance with th6 laws of the State of Idaho, without regard to choice of law rules.
14, Counterparts. This Agreement may be signed in counterparts, each of which shall
constitute part of the original document,
CITY Of EAGLE — EAGLE WATER COMPANY
INTERTIE AGREEMENT - 4
CityEagle_00199
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
Ewe: EAGLE 'WATER COMPANY,
an Idaho corpor
City:CITY OF EAGLE, IDAHO
p municipal corporation
1.3y:
Phil Bandy, Mayor
ATTEST:
Sharon K. Bergmann, City Cle
CITY OF EAGLE - EAGLE WATER COMPANY
TNTERTIE AGREEMENT - 5
CityEagle_00200
3
EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00201
TO
MTC, Inc.
Engineers - Surveyors - Planners
737 North 27th Street
Boise, Idaho 83702 .
345-0 =ts * Fax: (2038) 343
,8.
/*#I-~ A). S7:
's 4-T t
LADIES / GENTLEMEN:
WE ARE SENDING YOU
q Shop drawings
q Copy of letter
M7-:0 --':HNW UUM
DATE -
ATTENTION
JOB NO.
RE:
q Attached q Under separate cover
q Prints
q Change order
q Plans
via the following items:
q Samples q Specifications
COPIES DATE NO.DESCRIPTION
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THESE ARE TRANSMITTED as cYtecked below:
For approval q Approved as submitted
q For your use q Approved as noted
-- q As requested q Returned for corrections
q For review and comment q
FOR BIDS DUF
q Resubmit copies for approval
q Submit copies for distribution
q Return corrected prints
19 El PRINTS RETURNED AFTER LOAN TO US
REMARKS
COPY TO
SIGNED:'~`~'
LT-5e4-2 if enclosures are not as noted, kindly notify us at once.
CityEagle_00202
CityEagle_00203
EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00204
SIG SPRINGS
Approved?
=4,Y44..ill
Check
DOtO Of PCmIlt-'7/16/2008
C0f13tfUCti0D DIVISIGn
3775 Adams Street
Garden City 10 83714
Phone [phone]
FAX(28W)387-62$9
TYPt Of Permit.- EMERGENCY
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;EAGLE WATER CO INC
1188 W STATE ST UNIT 4
................ ...... .... .. . .. ..... .. . .. ... ...... . . .......... ............ ..... ....... .EAGLE ID 8367R•
Main Phone [phone]
Contractor PrJ No.
story
AGED Inspector.
Sub Contractor
RIGHT-OF-WAY USE PERMIT
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BILL ROOT (EAGLE WATER) --- 999-9958
NORMAN REVELS
NORMAN REVELS
)989-9958
989-9955 CONO2-01196 989-9953 CONO2-0I196
989-9993 CONO2-01196 Expires:10/26/2008 1 'Ing Ag,,t
Geographical timjts.. L~agie
Sub or Prj No.
Subdivision: I Address.- 1D601 N HORSESHOE BEND AD
Nearest Cross Street:
Troffic Control: Required?
Trench 51'-3W--$200
Permit Amount.,
Enhonced Fee.,
Total fee.
No Impact? FM & M TRAFFIC CON OL 870-5447
100' OF TRENCH FOR EMERGENCY INSTALL OF WATER UNE-
RESIC)ENTS WITHOUT SERVICES
Payment Type:
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inspector Name (print)
I Year Warranty Inspection by,
*Perrrd: rat YoUd unless signed. Person imv4v wrnit: NFOOMAINk5hafrriann
CityEagle_00205
TEMPORAPY HIONWAY USE PEnkill' APPLICATION A(..HD InspectorA0110 CONSTFUJCTIOW DEPARTMENT On 6-Yu Mtm(toriFAX 0 (2W) 387-02ag o" FE-MAK TO
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EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00208
Constructi9n Division
3775 Adams Street
Garden City 10 $3714
Phone [phone]
FAX [phone]
Date of P&-it 7117/2008 We Of PL-11-ir. UTILITY
Start
ACRD inspector;
RIGHT-OF-WAY USE PERMIT
,
V 'EAGLE WATER CO INC . .......... . ......... ......;188 W STATE ST UNIT 4... ........... ...... . . . ....... .......iEAGLE iD 83616-
IMaIn Phone j(208) 930-0-242
Confroetw Pd No.
Sub Contractor
'B'l LL.1100T (EAGLE WATER) -- 989-9958 k ) 989-9958
NORMAN REVELS 989-9953 CONO2-01196 (, ) 989-9953
Expires: ['10/26/2". IN Agrmt
6Eographkai Lirn)ft:
Sub or Prj No.
Subdivision.,
Address.-
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Traffic Control: Required?
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WORKS ON N HORSESHOE BEND RD
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<50' FOR TIE IMO CITY SYSTEM FOR WATER
Permit Amount:
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Date Comments
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Do te.,
inspector Name (print)
I Year Warranty Inspection by,
"'Permit not vaNd uniewsioned. Person irsufna oarrnk: NMOMAINPUMIFh—r -& t- whit-f- ... tr 17--.1---, Of..., -
CityEagle_00209
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DATE OF i(;A ION I %1AR AT
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1-111a CSDC Plan inests ACHDIs roquirarnatim.
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CityEagle_00210
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Eagle, IdAho 8361
Phone: [phone] * Fax: [phone]
To: 5~ Ar. c y
Company: 4C kl,
Fax No: 3 7- (,o x f l
RE:
Comments:
From:
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EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00214
Page 1 of 3
Molly 01ealry .
From: Vern Brewer [[e-mail]]
Sent: Thum, July 17, 24 8 12:56-PM
To: Molly O''leary
Cc: 'Susan Buxton; 'Bruce Smith'; 'Phil Bandy'; 'Michael Echeita'.
Sub t; FW: Modeling Scenarios_ EWC and City of Eagle
Molly: per our conversation, you will take care of Mr. Mason's request (below) that this email be forwarded toRobert and to the PUC. I was able to work out a simple solution to draining the line by negotiating with theVelodrome project manager to have excess water presently contained in the trunk lime used to meet their wateringrequirement for compaction of their site. All that remains is to have the City (Mike Echeita) and Robert coordinatethis with Kevin Hart of Wright Bros, who will work with their sub contractor. As] understand it, Robert is toy pick upthe ACHD permit today. Please call if you have questions. Vern
From: [e-mail] [mailto: Mark. Mason@deq. idaho.gov]Sent: Thursday, July 17, 2008 7:26 AM
To: [e-mail]; [e-mail]
Cc: [e-mail]; [e-mail]; [e-mail]
Subject: RE: Modeling Scenarios - EWC and City of Eagle
All,
I am prepared to issue the letter allowing for new connections as soon as the intertie is completed and inspectedby DEQ. Following that, the connection to the FFMHP can be made as soon as the plans are approved by OEO:I assume the PUC wall extend their deadline a few days, but I do not know that for sure. ' { donThave Mr.DeShazo's email address to include him in this email. Vern, please forward this to him and to the correct personat the PUC.
Other connections can be made for subdivisions and sanitary restrictions lifted on an as requested basis after theletter is issued.
Thanks to all for your hard work in getting this done.
Mark Mason; P.E., Engineering Manager
Idaho DEQ - Boise Regional Office
1445 North Orchard-
Boise, ID 83706
208-373-4266
[e-mail]
From: Vern Brewer [mailto:[e-mail]]
Sent: Wednesday, July 1Sj 2008 4:20 PM
To: Peter Bair
Cc: eljimrees@aol.00m; Monty Marchus; Mark Mason; Tiffany Floyd
Subject: RE: Modeling Scenarios - EWC and City of Eagle
Peter,
Thanks for the opportunity to review the results of the modeling work this afternoon. The inforrrmsbi nand model runs demonstrate that the combined system satisfies minimum municipal water systemrequirements. Under the recommended modeling scenarios both the City and EWC will have adequateflow and pressure during an emergency event.
7/17/2008
CityEagle_00215
Page 2 of 3
In a fdkovv up conversation with Mr. DeShazo beginning with m phone call at our meeting and
concluding with me at the site of the intertie connection, he asked what else must be completed to get a
letter from C}ECl lifting the moratorium. Based on his receipt ofa construction permit from ACHCk-''
ronlornovv, he will begin constructing the inbartie on Friday, the 18th, with completion on Monday, Jmh«
21. From PUC Order No. 30595. EVVC has until July 18. ''to provide this Commission with :awritten '
notice that the QEQ moratorium has been lifted and that water service to Floating Feather Mobile Home
Park has been initiatad.^ Robert indicated that he has obtained the necessary materials to construct
the|ntertie and now the timing issues ofintertie conatruohon. C>EC2 approval of the Park connection
submitted last week, obtaining the ACHD permit, and [)EC2 lifting of the moratorium remain the only
obstacles to initiating service to the Park.
In listening to Mr. DeShazoand with two state agencies involvement, | could `not unravel the sequence
of actions to respond to his questions on how the timing of removal of the moratorium fits into the
sequence. PerhapsOE{) could reply toE\&CoO the timing issues and notify the City aewell. Aoahn,
thank you for your prompt responses to our questions and submittals.
From: [e-mail] Peter
Sent: Tuesday, July 1S,2UO88:58AM
To: inmern8.com
Cc., [e-mail]; .Marchus@deq'idaho.gov; Mark'Mason@deq'idaho.guv;
Subject:mE:MmJeUogScenmrios - EmJC and City ofEagle
Vern,
I discussed your &mail with Mark Mason and Monty Marchus and Mark directed me to respond as1bllows:
You should respond to the requirements set forth in Item B.4 of our letter to EWC dated July 6, 2007 by modeling
the following scenarios and verifying that all applicable |RPDVVS pressure/flow 'requirements for both systems are
satisfied with the EVVC/Citynf Eagle interconnection installed and activated:
| 8oanmho|
EVVC ~v~~^'Eagle ~~ `
Demand Source Out Demand ' Source, out
1 PHD Well #4 PHD -
. None _
2 PHO Well #6 PHD
'
None
3 MDO+FF Well #4 K8DD None
-
4 NYDD+FF Well #6 K8DD ' yNone -
Additionally, Item 13,5 of the July 6, 2007 letter requires that the EWC main booster station meet IRPDWS
7/17/2008
Page 3 of 3
operational and the existing pump in the main booster station out of service, all IRPDWS pressure/flow
requirements for PHD and MDD+FF in the EWC high pressure zone are satisfied.
|f you have any questions regarding the above, please contact me.
Regards,
Peter Bair, P.E.
From: Vern Brewer [nlaUtozmern@ .conm
Sent: Monday, July 14,2OO83:33PM
To: Monty Marchuo
Cc: Peter Bair; Jim Rees
Subject: Modeling Scenarios - EWC and City of Eagle
Monty and Peter:
The City and EagleVVoterCompony(EVVC)havasignedona8neennantontheintertieeppnzvedbvbot
Mr. Da8hozo and the City Council on July 1O.3OO8. Holladay Engineering has been tasked with submitting
model results and narrative in an engineering report letter format addressing the intertie. VVe held a meeting with
Mr. DeGhazo and Jim Rees bo review the matter Friday, the 11m. The City wanted you to know you will be
receiving the analysis and model early next week.
Addressing the|OEQ items identified in your correspondence of July 6.2OO7toEVVC.xxerequest reconsideration
of Item BA which requires that the system be modeled "based onEWC a [City of Eagle] simultaneously
experiencing similar demand situations (i.e., maximum daily demand with fire flow and peak hour demand) with all
the supplemental water supplier's sources and booster pumps operational." VVe are not aware ofm scenario ora
City where a system of fewer than 5,000 ERCs with 8 wells supplying close to 8,000 gpm, served by a single Fire
District and connected to a 1,000,000 gallon reservoir is required to model a system or develop a supply system
for simultaneous fire events. In today's email, the scenarios are further defined to be run with each entity's major
well simultaneously out of service. What would call for this "doubled-up catastrophe" modeling scenario in the
mm|ma?
| trust you can respond bo this request prior aa soon osconvenient. Thanks for your consideration. Vern
!SlG:487t998567101502081055?
7/l7/2UO8
EAGLE WATER COMPANY, INC.,
REPORT TO COMMISSION
CityEagle_00218
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
1410 NORTH HILTON • BOISE, IDAHO 83706 • [phone]
August 14, 2007
Mr. Robert V. DeShazo, Jr.
Eagle Water Company, Inc.
1 72 West State Street
Eagle, ID 83616
JAMES E. RISCH, GOVERNOR
Tom HARDESTY, DIRECTOR
TSP&S-17512007
RE: Eagle Water Company (Eagle, Ada County)
Pressure Reducing/Sustaining Valve & Future Interconnection with City of Eagle System
Dear Mr. DeShazo:
The Department of Environmental Quality (DEQ) has reviewed the preliminary engineering report andassociated plans and specifications, received August 8, 2007, concerning two improvements to the EagleWater Company (EWC) System. One improvement is for the installation of a pressure
reducing/sustaining valve (PR/SV) along Floating Feather Road. The second involves initial preparations
for a future interconnection with the City of Eagle Water System, Both improvements are part of EWC'sprogram for bringing their system into compliance with IDAPA 58.01.08, Idaho Rules for PublicDrinking Water Systems' (IRPDWS) requirements, as set forth in their Final Engineering Report,approved by DEQ on July 6, 2007.
The preliminary engineering report and the plans and specifications for the subject improvements appearto meet the State of Idaho standards, and are approved based on the conditions listed below.
1. STANDARD CONDITIONS
A. All conditions of this letter must be met. The standard conditions on the Department of
Environmental Quality (DEQ) review stamp are part of this approval. Supporting reports or
documents are considered to be part of the approved documents.
B. No work may begin until a copy of this approval letter and the plans and specifications, bearing
the DEQ approval stamp, are delivered to and kept on the job site. As the project owner, you
must ensure that the contractor, the construction inspector, and the certifying engineer are aware
of the approval conditions.
C. This approval will be voided if. 1) construction is not completed by August 15, 2008; 2) the
project is improperly constructed, operated, or maintained; or 3) the project fails to function asintended.
D. No material deviations can be made from the approved plans without DEQ's prior written
approval.
CityEagle_00219
Robert V. DeShazo, Jr.
August 14, 2007
Page 2 t
E. Per the project documents, the project owner or his representative shall ensure that a professional
engineer, representing the EWC, provides supervision of construction and written documentation
as follows.
D. Within thirty days (30) after completion of construction, the project owner or his representative
shall provide DEQ with one of the following documents.
I Revised plans and specifications depicting the work as actually constructed if significant
deviations from the originally approved plans and specifications have occurred. These
revised plans and specifications shall be prepared and sealed by the professional engineer
responsible for observation on behalf of the project owner, and shall be based on as-built
drawings provided by the contractor and on field observations made by observer(s) under
the direction of the professional engineer.
2. A letter of certification that the work as actually constructed has no significant deviations
from the originally approved plans and specifications. The letter shall be prepared and
sealed by the professional engineer responsible for observation on behalf of the project
owner, and shall be based on as-built drawings provided by the contractor and on field
observations made by observer(s) under the direction of the professional engineer.
11. PROJECT SPECIFIC CONDITIONS:
A. DEQ has not conducted a design review of the storm water plans and specifications and has made
no determination regarding whether the plans and specifications include appropriate BMPs to
protect ground water and surface water quality. It is the project owner's responsibility to use
appropriate storm water best management practices to prevent ground and surface water
contamination.
B. If the construction phase of this project is anticipated to disturb one acre or more of land, or is
part of a larger project that disturbs one acre or more of land, then the project may be subject to
regulation under the Federal Clean Water Act National Pollution Discharge Elimination System
program administered by the U.S. Environmental Protection Agency. Storm water events that
occur during construction should be managed according to the site-specific Storm Water Pollution
Prevention Plan and the other requirements of the general permit. The on-line Construction
General Permit and Notice of Intent can be found at http://www.epa.gov/npdes.
C. A Short Term Activity Exemption shall be obtained from Craig Shepard in the DEQ Boise
Regional Office at 373-0557, if it is necessary to discharge wastewater offsite to state waters as a
result of dewatering or other construction activities.
D. DEQ understands that EWC and the City of Eagle Public Works Department are jointly
requesting permission to install an interconnection between the two systems at the intersection of
E. Greenbrook St. and N. Horseshoe Bend Rd. even though the infrastructure required to support
that interconnection, specifically the City of Eagle East Side Storage Reservoir, will not be
operational until the end of this year. DEQ is approving the early installation of the
interconnection on the condition that the interconnection not be activated (valve remain closed)
until DEQ approval is received to open that valve and activate the interconnection. The request
for approval to open the valve and activate the interconnection shall include confirmation that all
infrastructure required to support the interconnection is in place and fully operational. The,
CityEagle_00220
Robert V. DeShazo, Jr.
August 14, 2007
Page 2
request shall also include modeling data demonstrating that IRPDWS flow and pressure
requirements are satisfied for both water systems during peak hour demand and maximum day
demand, plus fire flow scenarios with the EWC Well #4 off line and with the EWC Well #6 off
line (see Item B.4 in DEQ's July 6, 2007 letter).
E. The restrictions and conditions set forth in DEQ's July 6, 2007 letter continue to remain in effect.
Please call me with any questions at [phone], or contact me via e-mail at
[e-mail].
Sincerely,
I &'—,
Peter S. Bair
Technical Engineer 11
PSB:ls
Enclosures: Approved and Stamped Preliminary Engineering Report with Plans and Specifications
c: Mark Mason, Boise Regional Office
Tiffany Floyd, Boise Regional Office
Monty Marchus, Boise Regional Office
Todd Crutcher, Boise Regional Office
James M. Rees, MTC, Inc. (w/ Approved and Stamped Preliminary Engineering Report with Plans andSpecifications)
Kasey Kettering, City of Eagle c/o Holladay Engineering Company
BRO Source File, Eagle Water Company (w/ Approved and Stamped Preliminary Engineering Report withPlans and Specifications)
BRO Managers File
TSP&S Reading File
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4
From: Jim Reynolds
To: [e-mail]; Susan E. Buxton; Kellie Rekow; City Council Grp
Subject: RE: Meeting
Date: Saturday, September 7, 2013 11:58:47 AM
Norm,
Yes, I would be most interested in seeing you suggested structure for Eagle Water. The only
time that fits for me on Monday is 4:30. We can certainly meet at Susan' s office if that works
for her.
Thanks,
Jim Reynolds
Sent from my Verizon Wireless 4G LTE Smartphone
Original message
From: Norman Bangle <[e-mail]>
Date: 09/07/2013 10:34 AM (GMT-07:00)
To: Jim Reynolds <[e-mail]>
Cc: Susan Buxton <[e-mail]>
Subject: Meeting
Good morning Jim. I will be in Eagle on Monday the 16th. Do you have time to meet
and go over a potential structure for Eagle Water? My schedule is really tight. My
plane gets in at noon and I have a flight out at 7:00 in the morning the following day. I
was thinking that maybe we could meet at Susan's office at about 1:30 Monday
afternoon.
Best regards,
Norman Bangle
210-460-0882
www.bwwater.com
Unless otherwise indicated, this message is intended only for the personal and confidential use of the
designated recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is strictly
prohibited. This communication is for information purposes only and should not be regarded as an offer to
CityEagle_00226
sell or as a solicitation of an offer to buy any financial product or service, an official confirmation of any
transaction, or as an official statement of the entity sending this message. Email transmission cannot be
guaranteed to be secure or error-free. Therefore, we do not represent that this information is complete or
accurate and it should not be relied upon as such. All information is subject to change without notice.
CityEagle_00227
From: Jim Reynolds
To: Susan E. Buxton; Kellie Rekow; Sharon Bergmann
Subject: Fwd: Meeting
Date: Saturday, September 7, 2013 11:49:17 AM
Sent from my Verizon Wireless 4G LTE Smartphone
Original message
From: Norman Bangle <[e-mail]>
Date: 09/07/2013 10:34 AM (GMT-07:00)
To: Jim Reynolds <[e-mail]>
Cc: Susan Buxton <[e-mail]>
Subject: Meeting
Good morning Jim. I will be in Eagle on Monday the 16th. Do you have time to meet
and go over a potential structure for Eagle Water? My schedule is really tight. My
plane gets in at noon and I have a flight out at 7:00 in the morning the following day. I
was thinking that maybe we could meet at Susan's office at about 1:30 Monday
afternoon.
Best regards,
Norman Bangle
210-460-0882
www.bwwater.com
Unless otherwise indicated, this message is intended only for the personal and confidential use of the
designated recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is strictly
prohibited. This communication is for information purposes only and should not be regarded as an offer to
sell or as a solicitation of an offer to buy any financial product or service, an official confirmation of any
transaction, or as an official statement of the entity sending this message. Email transmission cannot be
guaranteed to be secure or error-free. Therefore, we do not represent that this information is complete or
accurate and it should not be relied upon as such. All information is subject to change without notice.
CityEagle_00228
CityEagle_00229
Message
From: Terri Carlock [[e-mail]]
Sent: 2/23/2018 4:00:42 PM
To: Kellie Rekow [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=3d7c985412c940148aea33ec75c9ded4-krekow]
Subject: Re: City of Eagle
Yes 11 am will work.
Terri Carlock
On Feb 23, 2018, at 3:01 PM, Kellie Rekow <[e-mail]> wrote:
Let's schedule it for 11:00 AM at your office. If that doesn't work, let me know and we'll re-work it.
Thank you again — have a great weekend.
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeagle. org
www.cityofeagle.org
From: Terri Carlock [mailto:[e-mail]]
Sent: Friday, February 23, 2018 12:07 PM
To: Kellie Rekow <[e-mail]>
Subject: Re: City of Eagle
I am available Thursday, March 1 from Sam until 2pm. Let me know a time that works best for you and I will reserve a
room for us to meet.
Terri Carlock
On Feb 23, 2018, at 9:18 AM, Kellie Rekow <[e-mail]> wrote:
Good Morning Terri,
I just left you a lengthy voicemail, sorry about that, I tend to go into too much detail sometimes.
My Mayor, Stan Ridgeway, and Norm Bangle were hoping to meet with Randy next week to discuss some water issues
here in Eagle and I understand that you will now be that point of contact. I believe Randy has had just a bit of
correspondence from Norm and he may have already shared that with you.
CityEagle_00230
Norm will be in town next week — Wednesday afternoon, all day Thursday and all day on Friday. Would you have any
availability to meet with them? I don't think they need a great deal of time, just an hour, maybe a bit more but I think
they could keep it to an hour if you have it.
Let me know what your schedule says and I will share the info. Mayor Ridgeway has asked that the City's engineering
and legal attend as well.
My direct number is 208-489-8762 or an email works as well.
Thank you,
Kellie
City of Eagle
Kellie Rekow, CMC
Water Department
Billing Supervisor
660 E Civic Lane
PO Box 1520
Eag/e, ID 83616
Phone: [phone]
Fax: [phone]
Office Hours: M-F, 8:00 AM to 5.00 PM
krekow0cityofeag/e, org
www.cityofeagle.org
CityEagle_00231
Kelliie Rekow
From: lire Reynolds
Sent: Wednesday, April 08, 2015 1:46 PM
To: Kellie Rekow
Subject: FW: Regulatory References
Attachments: Eastlake Findings of Fact and Recommended Order.pdf; Eastlake Court Decision.pdf;
Customer Comments Wedgefield - Follow Up.xlsx; Vijai and Sandra Tiwari Email.pdf
From: Maurice Gallarda [mailto:[e-mail]]
Sent: Tuesday, March 31, 2015 7:43 PM
To: Jim Reynolds
Subject: RE: Regulatory References
Jim,
Thanks Jim for the email. It's getting late here but I wanted to get back to you before heading to bed. I think the additional
information below might also be of assistance in your due diligence. I want you to know Pluris takes customer needs
seriously. We also understand that there will always be complaints. My goal and it is reflected in the professionals at Pluris,
is to insure we address complaints fairly and in a timely and professional manner.
I only know of one active complaint within our utilities and it is in our Wedgefield utility in ©range County. We have had
complaints over the years and most have been centered on "rates", "meters" and "gallons used". The three jurisdictions
noted in your email of Hillsborough County, Orange County and North Carolina. I want to provide you with some historical
information regarding the utilities and complaints that occurred.
I have always believed that given the facts, the truth in matters will surface. I try to model this principle and when it comes to
my staff, I am confident their actions reflect the same belief.
Presented in the following is a brief summary of the complaints in each of the three systems and how they were resolved. I
have referenced relevant attachments with each.
1. Hillsborough County — two (2) systems — Pebble Creek (1,600 water and wastewater customers) and Eastlake
(912 water and wastewater customers).
Both systems were recently purchased by Hillsborough County and we no longer own them. We purchased the
systems in 2009. The systems were built back in the 1960s and 1970s. At Pebble Creek we purchased water from
the City of Tampa in a bulk water agreement. We treated wastewater at a wastewater treatment plant and to a
level that the water was used on the Pebble Creek golf course for irrigation. At Eastlake we purchased wastewater
treatment from the City of Tampa and we provided water through water wells within the service area.
We did not have any complaints until we filed for rate cases in both utilities. There had not been a rate case in
either utility for years and both systems were in need of investment to repair collection and distribution systems
dating back to the 1960s. Both systems were "Franchise" systems meaning the County of Hillsborough issued
franchises to own and operate the systems and this was the practice from inception of the utilities. Eastlake was a
much more troubled system than Pebble Creek and required the larger investment. Unfortunately Eastlake is an
area of near poverty level residents and raising rates was a serious problem.
I
CityEagle_00232
In the rate case, which took approximately 9 months to complete, we followed the County's ordinances to the letter
of the law. Between 13 and 16 residents attended the required public hearings to oppose any increase. Rate cases
in Counties are use outside hearing examiners (typically retired judges) to hold hearings, review County staff
recommendations and determine the "Findings of Facts and Recommended Order", and whether Pluris was
entitled to the requested rate increases. There were several public hearings whereby the above referenced
residents testified, under oath. There were, to say the least, numerous untruths that the hearing examiner
throughout, based on evidence provided by the County staff. One customer showed up at the Public Hearing
before the Commissioners with a jar with dirty water claiming the water was water provided by Pluris. A copy of the
Order is provided as an attachment.
We proposed rates and the County staff came back with what they believed to be warranted and although we did
not believe the County recommended rates provided the allowable rates under the ordinances, we accepted the
County staff rate recommendations. I have attached the findings of fact whereby the Hearing Examiner stated that
the "settled rates" were fair and reasonable. At the Board of County Commissioners final meeting the Board, and
although in violation of the County's own ordinances, voted to ignore the "Findings of Fact and Recommended
Order". Pluris filed an action to have the court determine whether the County had acted within its ordinances. Of
the 15 causes of action the Court ruled in our favor on 14 and the Court didn't think it needed to review the 15th
cause. I have included the Court's ruling. The rates went into effect and the Commissioner, whose district was
Eastlake told me directly that he knew this would happen but that the Eastlake voters viewed his actions as in their
best interests; and they would remember this in the next election
Pebble Creek's rate case was next and there was no issue with water quality or wastewater treatment. It was only
about the rates. We followed the same ordinances as in the Eastlake case and this time the Commissioners voted
to approve the County staff recommended rates. In addition the Commissioners voted to issue Pluris a new 10
year term for the franchise.
From this point it did not matter as to the investment Pluris made. The same 13-18 Eastlake residents were intent
getting the County to buy the Eastlake system and the Pebble Creek residents, understandingly followed suit. The
County purchased the systems on March 17, 2015 and currently own and operate the systems.
2. Orange County Florida — One system — Wedgefield
Wedgefield is a 1,500 customer water and wastewater utility that is regulated by the Florida Public Services
Commission ("FPSC"). We purchased the system in 2010. The system dates back to the early 1970s and is
comprised of a water treatment plant with distribution and a wastewater treatment plant and collection system. The
wastewater is treated to a level that allows use on the golf course for irrigation. I explained during our lunch that
one of the things we design into our systems are variable frequency drive motors ("VFIDs") so as to regulate
pressure at a constant value within the distribution system. When we first made changes to the system there were
no VFDs and when we raised the pressure (to satisfy customers on the end of the system who had complained to
prior owners of low pressure) we blew out an old asphaltic concrete pipe. The event caused a system wide shut
down over the Thanksgiving weekend shortly after the acquisition. The reason for the system wide shut down was
that the prior utility did not maintain valves within the system and isolating the problem area could not be done. We
have since replaced all bad valves and increased the number to prevent this from happening in the future. Since
2010 we have had one line break, isolated to just one street. In addition, by adding the VFIDs, we have not had any
low pressure complaints.
Pluris filed for a rate case in 2011 to recover investment into the water treatment plant and we saw complaints of
the rates occur. There were complaints about the hardness quality of the water (from the prior owner). The water
treatment plant was not operating as designed when we purchased and we made investments to address the hard
water and low pressure issues. I have attached a spreadsheet to demonstrate the level Pluris goes to when
CityEagle_00233
resolving complaints. The FPSC staff, as part of rate cases requests that a random sampling of complaints (they
pick) be followed up on by the utility and responses provided to the FPSC as part of the rate case. Pluris followed
up on not just the FPSC chosen complaints but on all complaints and provided responses to the FPSC staff. FPSC
staff operations senior engineer, James McRoy would later state that this was unusual by a company. I have
included the FPSC report summarizing that their findings along with their rate recommendations. Although their
rates were lower than those requested, Pluris accepted the FPSC staff recommendations.
We have not had very many complaints since the rate case. The two that come to mind are the Sandra Tiwari and
Russell Martin matters. Ms. Tiwari was about meter readings/meter and the volume through her meter. She had an
exception volume go through her meter and she challenged both the meter and the meter reading. She wanted
Pluris to tell her where her water went and we gave her suggestions as to what might have happened but that we
cannot determine where water goes after it leaves the meter. I have attached the FPSC investigation report for
your review. Frankly I tend to think she left a hose on into her swimming pool and did not turn it off until the next
day (that's only a guess). As a postscript, please see the attached email from Ms. Tiwari apologizing for her
actions. She asked if the split was still available and I replied yes. We do not hold grudges.
Regarding Mr. Martin, he filed a complaint when he requested we allow him to open a new account at his
residence, even though he owed about $350.00 on a past due. He told Pluris that he and his wife were divorced
now and that she owed the past due amount. His estranged wife said that she had moved out and to collect the
past due from her husband. Pluris staff believed that the amount should be paid and said a disconnect notice
would be sent if the past due amount was not paid. The FPSC believes that we should let him have a new account
and not require the past due amount. We disagree but in the interest of keeping a good relationship with the FPSC
agreed and wrote off the past due amount.
I know of no other complaint.
3. North Carolina — One system — Sneeds Ferry
The North Carolina Utilities Commission ("NCUC") has regulatory jurisdiction over the utility. The system is a 4,300
wastewater treatment utility that we purchased in 2009. It's one of my favorites as I was intimately involved in the
design of a high technology membrane bio-reactor wastewater treatment plant ("MBR"). The level of water
treatment is near drinking water quality and environmentalist really like what we have designed and built. When we
purchased the utility there was a moratorium on building because there was no available capacity for sewer. The
town of North Topsail Beach had sought a consent order against the prior owners to force them to build capacity
but yet the owners still did nothing. We purchased the utility and there was continued doubt that we would be any
different but we did what we said we would do. We invested over $10MM and built the MBR facility.
The complaints here are solely related to the rate case. There had not been a rate case in 17 years and even had
the MBR facility not been built, several rate cases should have happened over the 17 years. The rate increase was
significant and the state recommended lower rates than what was requested and Pluris accepted the State's
recommended rates.
Rate cases are controversial and no one wants an increase in their water and/or wastewater bills. I sent an American
Society of Civil Engineers ("ASCE") report card and History Channel IDVID on the "The Crumbling of American Infrastructure"
and not one Commissioner would discuss the infrastructure challenges faced in Hillsborough County (which is really in most
of America). ASCE year after year has published its grade for a number of categories in the country and water and
wastewater have received a "ID" for the past 10 years. We have real problems and yet it's difficult for anyone to recognize
..it's only going to get worse. Burying our heads in the sand isn't going to make it go away and there are creative ways for
industry and government to work together.
Best regards Jim,
Maurice
3
CityEagle_00234
PS — getting this out to you outweighed the possibility of some grammar errors. Please forgive me if there are some...
Maurice W. Gallarda, PE
Managing Member
1 P L U R I S
Pluris Moldings LLC
T 214.220.3412 F 214.965.9090
2100 McKinney Avenue, Suite 1550, Dallas, TX 75201
I I iti c- III; nl k ,whim Io the Plum Hold email dl%clannu
Click to read f011 disclaimer-
From: Jim Reynolds (mailto:[e-mail]]
Sent: Tuesday, March 31, 2015 4:46 PM
To: Maurice Gallarda
Subject: RE: Regulatory References
Hi Maurice,
Thanks for the additional information. As you suspected, I am trying to do my due diligence. So far, found complaints
from Orange and Hillsborough Counties and from North Carolina, but it is looking as if they are or are being
resolved. Still working on that, but I will get back to you when I have gone further.
Thanks,
,dim fW ynolds
From: Maurice Gallarda (mailto:mgallarda[[e-mail]
Sent: Tuesday, March 31, 2015 2:29 PM
To: Jim Reynolds
Subject: Regulatory References
Jim,
4
CityEagle_00235
I didn't provide during our time together but thought you might want to check on Pluris with state regulatory agencies. I do
not suspect that the agencies can endorse a private company but they should be able to express objective comments.
Although not perfect I believe we have professional acting employees who treat customers fairly and courteous. The
egulatory commission management may provide additional information for your use. The two state regulatory commissions
are the Florida Public Services Commission ("FPSC") and the North Carolina Public Utilities Commission ("NCUC") Public
Staff. I pulled their information off their state websites.
1. Florida PSC
Neal E. Forsman
Regulatory Program Administrator
Process Review Group
Florida Public Service Commission
Office of Consumer Assistance Et Outreach
Bureau of Consumer Assistance
Phone: [phone]
nforsman@psc. state. fL. us
2. NCUC Public Staff
Christopher Ayers
Executive Director
North Carolina Utilities Commission
Office of Public Staff
Telephone: [phone]
E-mail: Chris.Avers0Psncuc.nc.gov
I can provide additional contacts if you desire.
Best regards,
Maurice
Maurice W. Gallarda, PE
Managing Member
1 P L U R I S
Pluris Holdings LLC
T 214.220.3412 F 214.965.9090
5
CityEagle_00236
2100 McKiiuiey Avenue, Suite 1550, Dallas, TX 75201
Click to read full disclaimer.
6
CityEagle_00237
RESOLUTION NO. 17-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAGLE, ADA COUNTY,
IDAHO, ESTABLISHING CITY WATER SYSTEM CUSTOMER CHARGES AND
VOLUME CHARGES, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Eagle, Ada County, Idaho (the "City"), is a municipal
corporation duly organized and operating under the laws of the State of Idaho; and
WHEREAS, the City Council of the City of Eagle is authorized by Sections 6-5-9
and 6-5-24, Eagle City Code, to establish water user charges for the City of Eagle water
system; and
WHEREAS, the fees set forth herein are reasonable and reflect, as closely as
reasonably possible, the costs associated with the actual operation, expansion,
maintenance, replacement, financing expenses and the total water usage pertaining to the
City's water system pursuant to Sections 6-5-9 and 6-5-24, Eagle City Code; and
WHEREAS, the proposed fee schedule changes reflect less than a 5% increase.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EAGLE, ADA COUNTY, IDAHO, as follows:
Section 1: That, pursuant to Eagle City Code, the Eagle City Council hereby
establishes the following water user charges as shown in Exhibit A:
Section 2: The active customer of record shall be billed monthly the base rate, the
water safety fee, the system enhancement fee, the volume charge and other additional
fees as are pertinent to the services received. The volume charge is based on all metered
water for the billing period. The base rate will be prorated whenever the customer has not
been a customer for the entire billing period.
Section 3: When no active customer of record is being billed, the owner of the
property shall be billed monthly the unoccupied dwelling rate.
Section 4: This resolution shall take effect and be in force from and after its
passage and approval.
DATED this ~~-&, day of
0008*
G`.•' QOR
of
A~'•.
ASE L;'r o .
~•. f•: ~~rc~t`;• P.Z.
~,:
~`go, -1TE OF NO
_I ..n,
"'Sharon 'K. Bergmann, City C rk
ATTEST:
'.e ("'e , her, 2017.
CITY OF EAGLE
Ada County, Idaho
Stan Ridgeway, Mayor
Page 1 of 2
..•~~~r nr~ll.,nran.,\r~r...-.V,., ..~....~~.,..i~ .~,.._,,,.~..rl~...- 1)0 17 17 ^.
CityEagle_00238
Exhibit A
Water Fees and Rates
Please note - Changing fees/rates are crossed thru, new rates/fees are underlined
Meter Size 3/4 "1"1 1/2"2"3"4"6"
Hook Up Fees 950.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Storage and Trunk Line Fees (STL)2100.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Water Construction Equivalency Fees (WCE)400.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Base Monthly Fee Q 44 9.60 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Service Deposits 75.00 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
System Enhancement Fee (DEQ Funds)10.93 1.8 ERU 4.0 ERU 7.1 ERU 16.0 ERU 28.4 ERU 64.2 ERI
Consumption Rate per 100 cubic feet 1.32 1.35
Water Safety Fee (DEQ pass-thru fee)0.34
Service Application Fee 10.00
Delinquent Fee 12.00
Reconnection fees for collections 25.00
After hours reconnection fees 80.00
After hours connection fees 50.00
Returned check fee 20.00
Unoccupied dwelling rate Base Rate + System Enhancement Fee
Bulk rate ( IE, dust abatement) per 100 cubic feet 4-.60 1.63
Late penalties for bulk users 12.00
Hydrant Meter Deposit 75.00
Automatic Checking Withdrawal Fee (ACH)0.50
New fees
Additional trip charges 50.00
Unauthorized access to meter, tampering 250.00
Plus labor and
materials
Jumpers/Bridges placed in meter pit 500.00
Plus labor and
materials
ERU = Equivalent Residential Units
CityEagle_00239
Eagle Watera cquisition
Water rates in the Treasure Valley
-V
SUEZ rates are comparable to other water utilities in the valley and are slightly lower than the City of
Eagle's rates. Eagle Water customers would pay the same rates as other SUEZ customers.
Existing SUEZ customers' rates will remain the same.
SUEZ
City of
Eagle
Residential Residential Residential
$38 $13 U8
Business Business Business
$159 $40 $173
City of , City of
`Meridian,. Nampa
Residential
$28
Business
$112
Residential
$33
Business
$110
Average rates calculated for a 3/4" meter using 16 ccf (hundred cubic feet) of monthly water usage.
Includes all applicable fees and taxes.
Benefits to Eagle Water Company Customers
If the acquisition is approved,
Eagle Water customers will enjoy
reliable, safe drinking water, 24-hour
monitoring by experienced, licensed
professionals, online services, local
24-hour customer service, and the
backing of more than 100 employees
in Idaho.
Any entity that purchases Eagle
Water will need to raise Eagle Water
customer rates to address system
deficiencies, correct regulatory
shortfalls, and absorb the acquisition
cost.
SUEZ has water rights and facilities
that can be integrated into the Eagle
Water system to ensure customers
have the fire protection and water
supply they need.
The City of Eagle, which has the
highest rates for comparable water
usage of surveyed water providers
in the Treasure Valley, would need to
increase its rates even higher to pay off
the proposed revenue bond needed to
pay the acquisition and system upgrade
costs.
Increased City of Eagle water rates
would then be paid by all users of the
city municipal water system, not just
the acquired Eagle Water customers.
SUEZ also has low income assistance,
water conservation, and budget billing
programs that help customers on low
or fixed incomes manage their water
usage and bills.
Turn over the page to see how
your rates would be affected if the
application to acquire Eagle Water is
approved as proposed.
SUEZ Idaho rated
BBB
Start With Trust
overview
SUEZ filed a joint application
with the Idaho Public Utilities
Commission (PUC) in November
to acquire Eagle Water assets.
The PUC's process is thorough,
and may take up to 8 months for a
decision.
Serving Idaho
Our Idaho office is staffed by more
than 100 people, all of whom live in
the Treasure Valley. Idahoans will
read your meters, answer your calls,
repair the pipes, and ensure you have
safe, dependable drinking water.
Every year in Idaho, SUEZ spends:
• $1 M in Idaho income taxes
• $2M in Ada County property
taxes
• $14M to Idaho businesses
Contact us
Questions? Call [phone].
Visit www.mysuezwater.com/eaglewater for regular updates .s u et
CityEagle_00240
Rates according to season and year
If the application to acquire Eagle Water is approved as proposed, Eagle Water customers would see a gradual
increase in their water rates over 3 years. The increase would bring customers level with SUEZ rates in the Treasure
Valley. Existing SUEZ customers will not see any increased rates due to the acquisition.
The table below outlines what your rates would look like in the summer and winter across the next 3 years.
Example residential bills
Current
Eagle Water
Residential bill
Year 1 Year 1
Winter bill
Year 2 Year 2
Winter bill
Year 3 Year 3
Winter bill
$10 $14 $13 $21 $19 $28 $26
$20 $35 $29 $52 $44 $70 $58
$30 $55 $45 $82 $67 $109 $89
$40 $75 $61 $113 $92 $150 $122
$50 $97 $78 $145 $117 $194 $156
Example commercial bills
Current
Eagle Water
Commercial bill
Year 1
Summer bill
Year 1
Winter bill
Year 2
Summer bill
Year 2
Winter bill
Year 3
Summer bill
Year 3
Winter bill
$40 $82 $67 $122 $101 $163 $135
$60 $124 $101 $186 $151 $248 $201
$80 $164 $133 $246 $199 $328 $265
$100 $206 $166 $310 $249 $413 $332
$120 $247 $198 $370 $297 $493 $396
$140 $288 $231 $432 $345 $576 $461
Contact the PUC
File a comment with the PUC.
http://www.puc.idaho.gov/forms/casecomment.aspx
Read the application, public comments, and additional information submitted to the PUC.
http://www.puc.idaho.gov/fiLeroom/cases/summary/EAGW1801.html
Visit www.mysuezwater.com/eaglewater for regular updates suet
CityEagle_00241