200407081st Response of Terra Grande to Staff.pdf

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TERRA GRANDE WATER
10012 Eshelman Street
Boise, ill 83704
Telephone: [phone]
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CJTiLITIES COl':-if"1ISSfON
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
INVESTIGATION OF TERRA GRANDE
WATER AND THE ISSUANCE OF
REAL TED CER TIFICA TE OF PUBLIC
CONVENIENCE AND NECESSITY
NO. 429.
Case No. TGW-04-
TERRA GRANDE'S RESPONSES TO
FIRST PRODUCTION REQUESTS OF
THE COMMISSION STAFF
COMES NOW Barbara Chester-Child of Terra Grande Water, and hereby answers the
following requests for production:
Request No.1: It is Commission Staffs understanding that Terra Grande has retained
an engineer to assess the condition of the water system.
Please provide the name, address and telephone number of the engineer retained
by the Company.
Please indicate when the Company expects to receive the engineer s report.
Upon receipt of the engineering report by the Company, please provide a copy to
Commission Staff.
Response: Terra Grande has retained David A. Bailey, P.E. We are conferring with him
to ascertain what, if any, assistance an engineer might provide. He is ownerlPresident of Bailey
Engineering, Inc. 1117 E Plaza Drive, Suite F, Eagle, ill 83616. Phone [phone]. No date is
known for his reply.
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 1
Request No.2: In Case No. UWI-04-, Commission Staff filed comments assessing
the condition of the Terra Grande Water system. Terra Grande in meetings with Commission
Staff and Staffs attorney has represented that the water system is in better condition that
reflected in Staff Comments.
Please provide in this case docket a formal written reply to Staff Comments in
Case No. UWI- W -04-, specifically noting the points of disagreement.
In responding to Request 2A, please provide a basis for the Company
assessment and position as pertains to the condition of the Terra Grande Water system, including
any studies, reports, memos or other written documents of any nature in the possession or control
of the Company.
Response: The Staff Comments to Case Number UWI- W -04-2 contained factual
inaccuracies and misstatements. This resulted in part by a failure of the Staff to seek comments
and input from Terra Grande Water or Barbara Chester-Child. It appears the Staffbased its
entire assessment on the ex parte information provided by United Water and the Idaho
Department of Environmental Quality (DEQ) and did not seek any comment concerning this
information or its accuracy from Terra Grande Water or Barbara Chester-Child.
The following inaccuracies are noted:
a. The Staff investigation indicated in its Comments that one of the four wells used by
Terra Grande Water has excessive radiological contaminate levels and a second is not used due
to poor water quality. This is incorrect. While one of the four wells is not used because of the
radiological contaminate, all of the other three are and have been in use. Of the four wells, three
are on line and providing water to the customers of Terra Grande Water. Only the well with
radiological contaminate is out of service.
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 2
All repairs/alterations requested by DEQ have been made. (Numbers correspond
to the numbered items in the original letter from the DEQ dated October 17, 2001.)
1) Well #3 - Terra Grande sealed the wellhead and holes in the casing. All
wellheads are sealed with watertight well seals. DEQ had requested the wells be
sealed in October 2001 and Terra Grande completed this work in October 2001
using rubber seal on the split in the metal ring covering the well seal.
2) Well casing vents on wells #2 and #3 were extended 18 inches above the floor
and vent screens were added. This work was done in November 2001.
3) There is a flow meter on well #3 in the vertical piping. This was only a
recommendation
4) Regarding well #1 , the pneumatic tank was removed from the property, so the
DEQ's request for a site glass in no longer applicable. This also was only a
recommendation.
Well #2 radiological contaminates do not exceed acceptable levels thus no ion
exchange unit is required, nor has DEQ asked that one be installed. There is also
no current requirement to provide disinfection equipment for any wells operated
by Terra Grande Water. Of the 3 wells currently in service, well #2 has a small
pressure tank which is located above ground, well # 1 has no tank at this time, and
plans call for adding a variable frequency drive to well #3. A small 50-gallon
tank will be added to well #1 in the near future and, when the variable frequency
drive is added to well #3, a small tank will be added as well. When these tanks
are added, the existing sump the old tanks sat in will be filled and the tanks
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 3
located above ground as currently required by DEQ. The well houses will
accommodate the smaller tanks without alteration.
In June 2003 when United Water proposed its purchase of Terra Grande Water
Barbara Child notified DEQ of the pending purchase. At that time, Ms. Child was told by Sandy
Hemenway ofDEQ that testing for radium 226 & 228 would be required along with the bacterial
monthly tests. Other testing would be suspended pending the sale. These radium tests were done
in September and November 2003. Bacterial tests were done monthly. The accelerated testing
referred to in the Staffs report was necessitated by the failure of Terra Grande s sale to United
Water after the Staff recommended that United Water not pay Terra Grande at all. Thus, even
though DEQ is now requiring the accelerated testing, Terra Grande Water is and has been at all
times in full compliance with water testing mandated by DEQ.
While the Staff predicted that the cost of receiving water from United Water for
Terra Grande s customers would be only $375 per year, Terra Grande believes this estimate is
erroneous. Terra Grande s consultant has indicated the cost would have been in the area of
200 per year.
The Idaho Public Utilities Commission elected to assert jurisdiction over Terra
Grande Water based on the Staff s Comments and Recommendation, which Terra Grande
believes were replete with erroneous information, and which was prepared and submitted to the
Commission without input from Terra Grande Water or Ms. Child. Additionally, the
Commission is asserting this jurisdiction absent a complaint from any Terra Grande Water
customers or the DEQ (with the exception of Tira Jones, who has elected to be served by United
Water), this despite the fact that Terra Grande Water has provided potable water to its customers
since 1968.
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 4
The information contained in the section titled "Subsequent Developments" of the
report dated April 2, 2002 is equally inaccurate and was taken at face value without comment
from Terra Grande Water or Ms. Child.
(1) Terra Grande Water provided a map of the existing system to United Water
and informed United Water at the time that it was a poorly drawn map received at the time of
purchase of the system by Ms. Child. Parts of the system were installed in the 1950s. United
Water took it upon itself to create a "new" map and in the process transferred incorrect
inaccurate information to this new map. Terra Grande pointed these inaccuracies out to United
Water staff, but they still presented their inaccurate map to the PUC Staff. At the public
meeting held on March 18 2004, in the presence of Bob Smith and Scott Woodbury, Dave
Chester of Terra Grande again informed Greg Wyatt of United Water of the errors on United
Water s map. Again, no information was ever solicited by the PUC Staff from Terra Grande
Water or Ms. Child.
(2) The information contained in the section titled "Subsequent Developments
of the report dated April 2, 2002 stated that Terra Grande gave insufficient location information
during the sewer project, but Terra Grande believes this damage is the result of impatience and
incompetence on the part of heavy equipment operators. Terra Grande Water has made all
repairs to the water system and the contractor has not yet borne any of the expense of the repairs.
(3) Terra Grande Water never represented the water main on Penninger Street as
a four inch AC line. Rather, Terra Grande Water s map shows this as a 3-inch plastic line.
United Water erroneously reflected this as a 4 inch AC line on its map. Terra Grande pointed
this error out to United Water, but United Water failed to correct it. During the sewer
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 5
excavation, it was learned for the first time by Ms. Child that a part of what had been thought to
be the 3-inch plastic line was actually a 2 inch galvanized line. Rather than the 700 feet United
represented to the Staff (which the Staff reported to the Commission in its comments), in
actuality there was only 150 feet of this galvanized line. It was replaced with a 4" C900 line on
May 24, 2004.
The Staffs recommendations began with the conclusion that the Terra Grande
Water system provided poor water, was unreliable, and that the system must be restored to an
adequate level of service. None of these conclusions are supported by the record.
Request No.3: Please provide a copy of the recent schedule of water testing required by
the Idaho Department of Environmental Quality (DEQ) and agreed to by Terra Grande. Has
Terra Grande signed a consent order? If so, please provide a copy.
Response: The most recent schedule of water testing required by the DEQ was provided
to the PUC Staff by Ms. Child on May 21, 2004. An additional copy is attached. There is no
consent order.
Request No.4: In Commission Order No. 29512 , Case No. TGW-04-, the
Commission made the following finding:
The Commission further finds it reasonable to require Terra Grande Water to file
a written plan for any additional capital investment in the water system, with
estimated costs and proposed time. No further capital investment in the water
system is to be made without Commission approval."
Please provide a copy of the Company s written plan for additional capital investments, with
estimated costs and proposed timing. Also, please provide a written report detailing all capital
investment (if any in the Terra Grande Water system made by the Company since June 8, 2004
the date of the Commission s Order No. 29512.
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 6
Response: The requested plan is being developed and will be provided upon its
completion. A listing of capital expenditures made will be provided at that time.
Request No.5: Please provide copies of all trust documents for the trust that may own
manage or operate the water company. Trust documents include but are not limited to the
original trust document, all additions and amendments to the original document, all designation
oftrustee(s), and successor trustee(s), all transfer or assignment of beneficial interests in the
trust, and a list of all property, tangible or intangible, owned by the trust.
Please provide a copy of all documents evidencing the transfer of any trust
property or asset.
Please provide a copy of all documentation evidencing all liabilities of the trust.
Please provide a copy of all tax returns filed by the trust since 1995.
Response: Terra Grande s documents relating to the trust are attached. The original
grantor s reversionary interest and rights were ultimately transferred to Mrs. Child, who has
never transferred any of her interest to any other person. The current trustee is Wells Fargo Bank
Trust Department. The trustee holds the assets in trust for the homeowners in the Terra Grande
Subdivision. The trustee does not own, manage or operate the water company. Staff should note
that the trust can transfer its interests to a water company that is regulated by the Commission.
Because the trustee performs no functions, and because it is increasingly expensive and difficult
to find entities willing to serve as trustee, Ms. Child may propose to dissolve the trust and move
the assets into a corporation, given that the Company s business is now regulated by the
Commission.
None.
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 7
None, to Terra Grande s knowledge. Terra Grande Water has in all respects acted
as owner and operator of the company at all times, and any liabilities would be liabilities of Terra
Grande Water, not the trust.
The trust does not file income tax returns. To Terra Grande s knowledge, the trust
itselfhas no income or losses.
DATED this day of July, 2004.
TERRA GRANDE WATER
~~
tU1
Barbara Chester-Child
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 8
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this day of July, 2004, I caused a true and
correct copy of the above and foregoing document to be served, in the manner indicated, on the
following:
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
O. Box 83720
Boise, ill 83702-5983
Telephone: [phone]
Hand Delivery
Du.s. Mail
Facsimile
Federal Express
By: 't~
Barbara Chester-Child
TERRA GRANDE'S RESPONSES TO FIRST PRODUCTION REQUESTS OF THE COMMISSION STAFF, P. 9
Request 2 b
STATE OF IDAHO
DEPARTMENT OF
/ ENVIRONMENTAL QUALITY
1445 North Orchard. Boise, Idaho 83706-2239 . [phone]
October 17, 2001
Dirk Kempthorne, Governor
C. Stephen Allred, Director
Barbara Child
Terra Grande Water Co.
O. Box 7112
Boise, ill 83707
PWS No: 4010147
RE:Sanitary Survey conducted on October 11 , 2001
Dear Ms. Child:
A copy of the Sanitary Survey findings is enclosed with this mailing for your records.
You will find a list of the recommended and/or required improvements for your system
on the last page of the field inspection form. These improvements are also summarized
below:
Req u ire men ts
1. The well head seal on Well #3-Penninger shall be re-sealed and all holes in the casing
filled and plugged immediately to prevent entry by insects and/or rodents.
2. The casing vents for both Well #2-Ash Park and Well #3-Penninger shall be extended
. to 18 inches above the floor of the wellhouse and re-screened. Please provide written
documentation to this office by January 31 2002 stating the completion of this item.
Recommendations
1. A flow meter should be installed on Well #3-Penninger.
2. A site glass should be installed on the pressure tank at Well #l-Hatch.
Thank you for your time and cooperation in the completion of this survey. If you have
any questions, please contact me at [phone], or via e-mail at dlee(f9deq.state.id.us.
Don J. Lee
Senior Wa
Enclosures:Sanitary Survey Inspection Form
Cross Connection Model Ordinance
cc:File 1, OW Corr., Reading File
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Request 3
Terra Grande Water PWS#4010147
Monitoring Schedule for the following Chelnicals:
Samplinl! Location: Well #1 Hatch
, IOC - Phase V (Nickel, Antimony, Beryllium, Thallium) 2002-2004, and 2005-2007 (one sample during
each ofthese monitoring periods)
IOC - Phase II & V Complete Round 2008-2010 (one round during this monitoring period)
Fluoride - 2002-2010 (one sample during this monitoring period)
Asbestos - 200.2,,2004 (one sample is required &om the distribution system during this monitoring period)
Cyanide - 2002~2004, 2005-2007, and 2008-2010 (one sample during each monitoring period)
VOC - rnc\ni'(); quarterly (/\pril ~ J~'.. Sept.,1'v1;:11') until no!inr~d by DEn
, -
sac - ,2002.2004 (one sample during this monitoring period)
Dioxin - No monitoring is required for 2002-2004
Nitrates - Quartc:dy untd ncilit1ed DEQ (/\.pri.l lJ~~:~~JuI~v . Sept , JaiL' Ivlar)
Nitrites - 2002- 2010 (1 sample every 9 years)
Arsenic - 2002-2004 2005-2007 2008-2010 (1 sample every 3 years)
Sodium - 2002-2004 2005-2007 2008-2010 (1 sample every 3 years)
Gross Alpha - Quarter!)' until notified by DEQ (April- June, July - Sept., Oct. - Dec., Jan. - Mar.)
Uranium ~ one sample during /\pnl - June 2,004
Samplinl! Location: Well #2 Ash Park
IOC - Phase V (Nickel, Antimony, Beryllium, Thallium) 1/1/2008 - 12/31/2008 (one sample of each
ounng tfllS momiomig pen oaf
IOC - Phase II & V Complete Round 2002-2004, and 2005-2097 (one round during this monitoring period)
Fluoride - 2002-2004, and 2005-2010 (one sample during each of these monitoring periods)
Asbestos - 2002-2004 (one sample is required from the distribution system during this monitoring period)
Cyanide - 2002-2004, 2005-2007, and 2008-2010 (one sample during each monitoring period)
VOC monitor quarterly (April - June, July - Sept., Oct - Dee" Jan. - J\1ar.) until notified by DEQ
SOC - 2002-2004 (one sample during this monitoring period)
Dioxin - No monitoring is required for 2002-2004
Nitrates - Quarterly until notified by DEQ (April-~~PE' July - Sept.. Oet. - IJec., JaIL - Mar,
Nitrites - 2002- 2010 (1 sample every 9 years)
Terra Grande Water PWS#4010147
Page 2
Well #2 Ash Park continued:
Arsenic - 2002-2004, 2005-2007, 2008-2010 (1 sample every 3 years)
Sodium - 2002-2004, 2005-2007, 2008-2010 (1 sample every 3 years)
Gross Alpha - Quarterly until notified by DEQ (April- Ju~e, July - Sept., Oct. - Dec., Jan. - Mar.)
Uranium - one sample during April 2004
Samplin2 Location: Well #3 Pennin2er
IOC - Phase V (Nickel, Antimony, Beryllium, Thallium) 2002-2004, and 2005. (one sample during each of
these monitoring periods)
IOC - Phase 11 & V Complete Round 2006-2010 (one round during this monitoring period)
Fluoride - 2002-2010 (one sample during this monitoring period)
Asbestos - 2002-2004 (one sample is required from the distribution system during this monitoring period)
Cyanide - 2002.2004 2005-2007, and 2008-2010 (one sample during each monitoring period)
VOC ')1"
"p-
h, 13.""'11'
'"
nl"' ,. I:";f'nt ('1("1 '" f)p"
,.", ,. j\"
:,,..\ "qt,! '(V).,f~,c",i 'Yli riFt)
- """""
'J\'F" \
::"
:'r I'h
"""-,,""' -"...,),-"-,.",-
1.'-"'-'..1'-'
'--
SOC - 20022004 (one sample during this monitoring period)
Dioxin - No monitoring is required for 2002-2004
..J trates
"--
""I;; "'(";
:(-;""
,-1 hv f'C(') Ar\~'
~! ,
Tn""" fn . (';:"""'1 (';":1 ," r.
",~ - - '. (." ,,
, \..\L\d~ 'l\,h.
""
Vi .fi!..-'
",.
..-~l.
-- - ..""",~, .
H)
"'
:"---1:,7'-', '
\" '--"-'.
, J';,.H, _~ I
Nitrites - 2002- 2010 (1 sample every 9 years)
Arsenic - 2002-2004 2005-2007 2008-2010 (1 sample every 3 years)
Sodium - 2002-2004, 2005-2007, 2008-2010 (1 sample every 3 years)
Gross Alpha - Quarterly until notified by DEQ (April- June, July - Sept., Oct. - Dec., Jan. - Mar.
""",
Uranium - one sample during April- June .2004
Distribution:
Lead and Copper-- (5 samples from the distribution) collect the samples bet\veen June-September 2004-
2006 2007-2009, and 2010-2012 during these same months. Flush the lines thoroughly the night before
and then collect the samples "first draw" the next morning. Ideally the water should not be in the lines
more than 8-10 hours, so it is best to collect the samples during the middle part of the week, rather than on
a Monday when the residents may have been gone for the weekend.
Bacteriological (Total coliform) - 1 sarnple per month, rotating throughout the distribution, using your
sampling plan (send an updated sample site plan to DEQ, indicating 5 sites that are representative of the
entire system).
, -
Request 5
8QO~P~GE 38
INSTRUMENT N
THIS TRUST INDENTURE, 'Made ~hi8 4th day of November, 1959,
by and between REAL ESTATE SAIES CORPORATION , a corporation
organized and existing under and by virtue of the laws of the
State of Idaho , (hereinafter called "GRANTOR" or "PARTY OF THE
FIRST PART"), and FIRST SECURITY BANK OF IDAHO, NATIONAL
~SSOCIATION, TRUSTEE , a banking ~orporation duly chartered,
organized and existing under and by virtue of the laws of the
United States of America, (hereinafter called "TRUSTEE" or
"PARTY OF ,THE SECOND PART"),
ill I J:! t ~ ~ 11 Jj: .
THAT , ~EREAS , grantor is now the owner of proparty known
HS Pioneer Park , located in or near the City of 'Boise , County
of Ada, State of Idaho , which property is being improved and
developed by the construction of dwellings thereon; and
t.,rH~REAS, grantor is 'the owner, of certain property, (herein-
after more particularly described) upon which there is located
a well or ~rells and a plant , together with distrihution fRci~itie3
(h~rein3fter referred to as "water system") J for the p~.rposes
of supply;ing water to a1~ properties connected or to be connected
to tha sD..id wrater 's~rst.em; and
":HEREAS, the Federal Housing Administration will not acc'3pt
for insurance, and the Veterans Administration will not guarantee
or insure , mortgage loans covering the separate properties and
improvements built or to be built thereon, without receiving
assurances as to the continuous and satisfactory operation of
the said water system; and
pO1l RuJ. f~kb.....:r!.~-'::r;~
See In8tt'Umpnt Not,~.JJ~2.Fited.i.
:-:_.
k-
Reeoc..ed 1)Of)k.~.C/..paIle:(~y-,~ecotdI =16
, .
lilt 40 p~~ 39
WHEREAS. such improvement and development of the proper-
ties and the future financing and sale of the properties 1s
cO ntingent upon the insurance of said mortgage loans by the
Federal Housing Administration or the guaranty or insurance
of said mortgage loans by the Veterans Administration; and,
WHEREAS, it is the intention and purpose of the grantor
that such water system shall be used and operated to provide
an adequate supply of water for each of the properties connected
the~eto , regardless of the oWnership of the individual pro-
parties, .and properly to maintain an adequate water supply
Jor domestic consumption for the occupants of said properties
a nd to assure the cont inuance of the operation and maintenance
of such water system for the benefit of the present and futllre
owners of the properties connected thereto, the mortgagees
holding mortgages covering such property, and the Federal
Housing Administration and Veteran~ Administration.
NOW, THEREFORE, for and in consideration of the undertakings
of the grantor to provide and assure the maintenance and op!,!r-
ation of the water system as aforesaid and the further sum of
One Dollar (~l.OO) lawful money of the United States cash
in hand ,to grant6r by Trustee, the receipt whereof is hereby
ac!mowledged, the grantor does hereby grant and convey to
the party of the second part , as Tru~tee , the following property,
to Nit:
(a)All of its right, title and interest in and to t~e
fo llowing described real property:
Commencing at the southeast corner of Lot J of
Block 2 of Terra Grande Park No.1 Subdivision
as the same appears on the official plat of such
.., ~
7'q,
,..
OJ;
-,-. .....:.
tOOl 40. PUi 4.0
Subdi"lision on ru. and or record in the ofrice
ot the County Recorder of the County of Ada,State of Idaho and running thence west along
the southerly boundary of said Lot) a distance
of a7 feet to a point , being the real point ofbeginning; runn1~ thence south 5 feet , thence
we st 16 feet, thence north 10 feet , thence east
16 feet, thence south 5 feet to the real point
of beginning;
Commencing at the center or the intersection of
Skillern Way and Penninger Circle Drive as such
streets appear on the official plat of Terra
Grande Park No.1 Subdivision on rile and of
record in the office of the County Recorder
of the 'County of Ada, State of Idaho , and running
thence east a distance of 25 feet to the eas~
sideline of Skillern Way, being the true placeof: beginning; running thence north 6 feet , thence
east 12 feet, thence south 12 feet, thence west
12 feet, thence north 6 feet to the point ofbeginning.
( b)The well or wells, plant, chemical treatment facilities
storage and distribution facilities, incluaing the water maioE
and lateral lines, heretofore constructed or to be constructed,
includ~ng all easements incident to the ownership and operation
of said water system.
Further. the grantor. hereby warrants that there are
no existing encumbrances, liens , or other indebtedne 55 to the
title of the water system conveyed hereunder other than the
following:
Real estate mortgage from Real Esta;'e Sales Corpoc"ation
as mortgagor to DoQ H. Eagleson as mortgagee . dated November 1
1959 , securing the indebtedness in the principal amount of
Eight Thousand Two Hundred Fifty-four and no/lOa Dollars
(~8 254.aO) together with interest thereon , evidenced by
promissory note of even date therewith , recorded in the office
of the County Recorder of the County of Ada , State of Idaho
~~.
180';40 PACE
in Book ---- of Mortgages at page -----
There is also Merchandise Purchase Conditional Sales
Contract dated August lS, 1959, between H. J. Wood Co., Inc.
as seller , and Real Estate Sales Corporation as buyer, whereby
Real Estate Sales Corporation purchased certain personal
property which became a part of the water system described
herein, and by th~ terms of said contract the seller reserve~
title to such personal property in itself until payment of
the full purchase price in the amount of $4,746.00 is made
to the seller by the buyer in monthly installments.Said
con'tract hoas been assigned by the seller H.' J. WOod Co.,
Inc. to First Securit.y Bank of Idaho , National Association.
The grantor hereby warrants that the above. said encum-
brances , reservations of title, liens, or indebtedness have
been subordinated to this conveyance and are subject to this
trust deed.
This conveyance is upon the trusts and for the purpose~;
following, to wit:
fi),
;'I.
6011 ~O riGl
This grant is for the benefit of the present and
future owners of all and each of the properties now or
hereafter connected to the said water system, as well as the
holders of the mortgages covering each of the said pro~~rties,
and Trustee shall hold the title to the property granted by
this indenture until either (a) the water system is taken
over by either a Governmental authority or a public utility
(regulated and controlled as to rates and services by a
duly consti~uted public regulatory body or commission) for
main~enance and operation , or (b) other adequate water ser-
vice is provided either by a Governmental ~utho~ity or
puulic utility (regulated and controlled !3-s to rates and
services by a duly constituted public regul~tory body' or
commission) through means other than the operation of water
system and facilities now transferred to the Trustee herein.
Upon the happening of either of such events at a time \oshen the
grantor is still operating and managing the water system in
accordance with the terms and provisions hereof,. the Trustee
shall inunediately reconvey the property ~o the grantor , i~s
s:;ccessor ~r assir:;n, and this indenture shall be of no
further e.ffect.
2., The grantor shall supply at all times and und~r
adequac:e pressure for the use of each of the propertie3 duly
4a-i'a
1'1 tOOt 40 PAGE
connected to the said water system, a sufficient quantity of
wa~er to meet the reasonable needs of each of the properties
duly connected to said water system.Such water shall be of
the qualify and puri iy as 'shall meet the standards recommended
by the "Public Health Service Drinking Water Standards"
promulgated by the United States Public Health Service
Federal Security Agency, February 5, 1946, and the water shall
be treated in the manner necessary to assure its being of the
quality and purity recommended in the above mentioned Standards
and also so as to produce water without excessive, hardness,
corrosive. properties , or other objectionab~e characteristics
~aking it unsafe or unsuitable for domestic use or harmful
to any or all pipes within and lor withou~ the dwellings.
Records of any and all tests conducted in connection with said
system shall be kept as permanent records by the grantor and
said records shall be open to inspection by the State' Board
of Health of the State or Idaho and the owners of the properties
connected to. the said water system. The said Board of Health
andlor its agents shall at all times hav~ access to the plant
of the gra~tor to conduct any and all tests as said Board shall
consider ,necessary to determine compliance with the said Standards4
~n any event, the grantor shall have said analyses made at least
quarterly and shall pay all costs in connectio~ therewith.
the event said Board spall determine that the quality and
purity of the water does not meet the said Standard, the
grantor shall with reasonable dispatch at its sole costs make
any adjustment , repair J installation or improvement that shall
be necessary or recommended by said Board to bring the purity
5-fa
BOOE 40 PA~
of the water up to the said Standard.
).
The grantor shall aa1ntain Baid water system at all
times in good order' and r.pa1~ so that satisfactory serYice
as aforesaid may be supplied to each of said propertj.es': as
provided in paragraph 2 aboye.
Until the happening of one of ~he events set forth
under paragraph nwnbered 1 above:Should grantor fail to
operate and manage the water system, in the manner and under
the conditions specified in paragraphs numbered 2 and J above
and should grantor fail, after notice in writing from the
Trus~ee, to correct such failure with reasonable dispatch
then Trustee shall have the right to immed~ate possession
of the water system for the purpose of o~erating and maintain-
ing the same, and the right to hold, use~ operate , ma~age,
and control the SM~e either itself or by or through any of
the agencies or parties for whose benefit this trust is creat~d
and it may take possession thereof for the purpose of operating
the same , and in that event, the Trustee or the entity oper-
ating the water system . in its behalf or in the b~ha1f of any
of the benefic1a~ies of this trust , sha~l be subrogated to
all right$ of the grantor to levy and collect a charge against
each customer at rates not in excess of those specified in
pDragraph numbered 6 hereino
In the event the Trustee takes p~ssessi~n of the water
aystem pursuant to the provisions of paragraph numbered 4 or
paragraph numbered 6 , the grantor shall have no further riBht
title or interest in or to the water system or other prop~rty
6-fa
" m
ItOI 40 PJeCE
. granted by this indenture and shall not be entitled to any
portion of the proceeds resulting from any sale or such system
. property; but the Trus~ee shall have the right to transfer
such system to a Governmental authority upon such terms or
conditions as may be approved by the Trustee and the owner
or owners of a majority' of the properties connected to the
water system.
The gra~or reserves the right to levy and collect
a cha~ge for water furnished and consumed by the occupants of
each of the. properties connected with said water system, in
the "amount of $5.00 per month , with additional charges for
summer irrigation water , based on lot area, as follows:
AREA MONTHLY CHARGE ANNUAL PERIOD
May 15 to September 15
" .
11 5 ,000 to 9 500 SQ. ft. No extra charge9 500 to 1 ,500 n 11 $ 3.
li t 500 to 13,500" II 4.
13 t 500 to 15,500" 11 6.
Service shall be charged on a pro-rata basis f~OOl the
date the service is established at. the request of the consumer
to the date of discontinuance.The grantor shall have the right
to install on each of the individual properties ~ water met~r
to be mai~tained by the grantor, through which al1- water supplied
t,o the consumer or consumers shall pass and through which the
grantor shall have access at reasonable times for the purpose
of taking meter readings and keeping said meter in repair~
(a)It is agreed between the parties hereto that ror the
first year of operation of the water system the above rate~
shall be deemed reasonable
7-Ia
'or:i
'Ii
'f.
'f/,
, .
IOay;40 n'E 46
(b) 'lbe grantor shalllla1D.tun accurate books relative
to the water system. S~ch books shall be aft11able for 1n-
sp.ection by a person or persons designated in writing by the
Trustee or designated in writing by not less than one-third
of the beneficiaries of this Trust , provided,
that the continuing right of inspection hereby created shall
be exercised only at the place where such books are customarily
maintained in B~ise , Idaho; that such right of inspection
shall ,be exercised during usual business hours, after reason-
able notice and in such a manner as not to hamper unduly or
interfere with the conduct of the grantor's business.
(0). Changes in rates may be proposed by the grantor and
~y the said beneficiaries.If within 90 .days after no~ice
to the Trustee and to the beneficiaries of a r~te change pro-
pOsed by the grantor not more than one-third of the beneficiDries
of this Trust shall have signified in wri ting their opposition
to such proposed rat e change, the grantor may forthwith es-
tablish such new rates Which shall be deemed reasonable
pending the ' accumulation of experience to show such new rates
to be unreasonable.If more than one-third of the beneficiaries
signify in writing their opposition to' a rate change proposed
by the grantor , or if more than one-third of the beneficiaries
propose -in writing a rate change which the grantor oppose~,
and the parties caMot reach an agreement .by negotiation
within 30 days, then the matter shall be referred to a board
of arbiters, who shall be designated as follows:The grantor
shall deQignate an arbiter, the beneficiaries shall desi~nate
an arbiter and the two arbiters thus selected shall choose a
8-fa
8QOK 40 n;t 47'
third arbiter.The decision of the board ot arbiters as to
the reasonablenes8 of rates shall be final upon the parties
hereto. All costs of arbitration shall be paid by the losil~
party or parties. ' The duly elected officers of a citizens'
or property owners' association comprised of the beneficiaries,
or the members of a 'committee duly appointed by such officers,
shall prima facie represent more than one-third of the bene-
ficiaries.
( d)Should the grantor charge rates for water service
in excess of reasonable rates, as herein above defined, then
the Truste~ shall notify the grantor of such over-charge by
registered mail.Should the grantor thereafter fail or refuse
to establish and maintain fair and reaso~ble rAtes, as herein
above defined , within the period of nin~~y (90) days, the
Trustee shall have the right to immediat~ possession' of the
water system for the purpose of furnishing water service at
fair ' and reasonable rates and the Trustee shall have the right
to hold, use, operate, manage and control the water ' system
as set forth under paragraph numbered 4 aboveo
otwi th standing any other provi sian of thi s trust
deed ~ any creditor of record ' of the gra~tor shall have a
reasonabl~ period' of time to correct any default hereunder
prior to. the taking over of the property by the Trustee.
$.. If it should become necessary at any future time for
the Trustee or any entity acting in its behalf or any bene-
ficiary under this trust indenture , to take over, operate and
mana3e the water system under the provisions of this trust
9-fa
1001 40 PAU
then and in that event, 'the operator of such system shall be
entitled to a Truate.' fee payable from the income of the
water system at a rate not in excess of ten per cent (10%)
of the gross charges collected by such Trustee, provided that
such Trustee' s fee may be increased with the approval of the
owner or owners of seventy-five per cent (75%) of the pro-
perties connected ~o the said water system.
It 1s agreed that the trustee , . at any time after
execution of this instrument , may resign as said trustee
whether or n ~t it has become necessary for said trustiee or
any entity acting in its behalf to take over , operate and
manage the. water system under the provision~ of tJ11s trust.
S~ch righti of resignation , however, may ~e exercised only after
an appropriate court by petition thereto,. has duly appointed
a qualified successor trustee , and after such successor trustee
has accepted the duties and responsibilities of trustee as
such duties and responsibilities are set out herein.
IN TESTIMONY WHEREOF Real Est-ate Sales Corporation
the grantor , has caused ~hese presents to be exec~ted in its
beha If . by Don H. Eagleson, its President ,. and its corporate
seal to be ~ereunto affixed and attested by Pat T. Fitz~erald,
its Secretary, and First Security Bank of Idaho, National
A~sociat1on, the Trustee herein named, has caused these presents
to be executed by i~5 Trust Officer, the day and y~ar first
hereinabove written.I~ entering into the agreement contained
herein -and executing this Trust Indenture, First Security
Bank of Idaho , National Association , acts for itself as
la-fa
it'
l::
.(:;"!'
;i;BnU 40 PAC(
Trustee and as repre sentati~e of and by authority of all
persons, firms, corporations. or entities which are or may
, be beneficiaries under the trust thereby created.
.. - ,. ". .. .
ecretary
' .
GRANTOH
FIRST SECURITY BANK OF IDAHONational ~~ciati9n
&1iBy
~ "'
d,.t!;.,.-z-....,..t./
ol..' Gax:dner , Trust -Office)'
TRUSTF.~:
ll-
. . ...
40 PIa 50
~ATE OF IDAHO,
81's.
COUNTY OF ADA
On ~h1s ~~h day of November, 1959, before me, the under-
signed, a Notary Public in and for said S#ate, personally
appeared DON H. EAGLESON, known to me to be the president
of Real Estate S~les Corporation, the corporation that executed
the foregoing instrument , and acknowledged to me that such
corporation executed the same.
IN WITNESS \'ffiEREOF, I have hereunto set my hand and affixed
offi~ial seal , the day
' --. " ,. -
above "Writ-ten.
' .. ', '
and yea~n this ~ertificate first
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otary UE or the tate o
Residing at Boise, Idaho
STATE OF IDAHO
55..
COUNTY OF ADA
On this day of November 1959. before .. the under-
signed, a Notary Public in and for said ,State, personally
appeared Go J. GARDNER, known to me to be the Trust Officer
of First Security Bank ~f Idaho , National Association, that
executed. the fore~oing instrument as Trustee ~ and acknowledged
to me that such Bank
, '
as such Trustee executed the same.
IN WITNESS WHBREOF ~ I have hereunto set my hand and affixed
my official seal: the day and year in this certificate first
'7 -above written. /.
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NotarResiding
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STArlE Of IDMm. COUNTY Of AOk
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L .I. !)i1VW N~~';&!T(). R(;c~1' Co!: Ada C\WMt:!V. 00 t~fI.',by. !.:\""i1.lf~' Ih~ dw AtmCM-'4 Iii ;& fu!!.
tt1Jt .u'Mi I;Ofn:t'\ C(tf~Y ~Jf ~i~$L No. ,."",w--...~.~~f",~.Z":;s:~-
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~ it ~ppt!1tf~ on f(j(ord in Bo(~~__()f,w~_""-'_O'A'_'~"_-
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.J~t~ill'dj; of C(I'%!l'ily. St~!1\' of !datuJ.
~N WITNf.sS WHEREOF. I NW~ $t;t IUY ~oo iM ~il\;C!! mv Klt'f!,(:I;i1t 1!~t thi~
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ASS I GN~mNT
KNOW ALL MEN BY THESE PRESENTS , for and in con-
sideration of $10., receipt of which is hereby acknowledged
the undersigned', REAL ESTATE SALES CORPORATION , an Idaho
corporation , does hereby sell , transfer , assign and set ovcr
unto HORLAN'S BOISE , INC., an Idaho corporation,' all ,of its
right , title and intere~t in and to that certain .Tru~t Deed
made and entered into on the 4th day of November , 1959 , by
and between Real Estate Sales Corporation
, '
therein designated
as grantors , and the First Security Bank of I daho , National
Association , therein designated as Trustee , a copy of which
Trust Deed is attached hereto and by refe~ence:incorporated
herein as if fully set forth hereat in haec verba , wherein
said grantors did , for-and in consideration of ,the under-
takings therein set forth , provide and assure maintenance
and operation of that certain wate r system as therein des-
cribed and did therein grant and convey to said Trustee the
following property:
All of its right , title and interest in and to the
following described real property:
Commencjng at the southeast corner of Lot 3 ofBlock 2 of Te~re Grande Park No.1 Subdivision
as the same appears ,on the official plat' of such
Subdi vis ion on fi Ie 'and of record in the office
of the County Recorder of the County of Ada
State of Idaho , and running thence west along
the southerly boundary of said Lot 3 a distance
of 87 f~~~ tv 0. point bt:.i.l1g the real point of
beginning; running thence south. S., feet , thence",est 16 feet , thence north 10 feet , thence east16 feet , thence south 5 feet to the real point
of beginning;
- -
Commencing at the center of the intersection
of Skillern Way and Penninger Circle Drive as
, ..;
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such streets appear on the official plat of
Terra Grande Park No.1 Subdivision on file
and of record in the office of the Coun~y
Recorder of the County of Ada
, '
State of Idaho
and running thence east a distance of 2S feet
to the east sideline of Skill~rn Way, being
the true place of beginning; running thence.north 6 feet , thence east 12 feet , thence south
12 feet , thence west 12 feet , thence no~th 6 .
feet to the point of beginning.
' " .: ,
(b)The well or well~, plant " chernica~...~reatment
, ., .
facilities , storage and distribution facilities tludi~g
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. the ' water mains and laterai. 1in ~s :heTeto~o ~o~~~.~~ted 'or, "
to be constructed , 'inclu ding ~all easemen ~s \'id~ni'~6: the ~
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ownership "and operation of aid water, s yste t.,
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" BY THE S E ~ RES EN TS .. ~ ~ h e ~nd e r
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'hereby direct , ~he s d Truste~ to recognize,~the Assignee-herein-
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i" abo~e named , to-wit:. Horlan s Boise
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I~c ~in the;:~ame pla
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and '-stead as said Trustee has "recogili'ze4 'the :Ass1gnor herein~~
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. t~~6;~.. named ,as if these
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rp.J;esents)lad')lot,been.. made:.
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. REAL ESTATE"SALES CORPORATION '
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STATE OF IDAHO
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COUNTY OF ADA '
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On th is
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day of l-1ay, 1967 ~ . be fore me ~" the' unde r- signed , a Notar)' bli c in and for said State personally
appeared DON H. EAGELSON and PAT T. FITZGERALD , known to m~,
' ,,
to be the President and Secretary respectively of'the Cor-:-
' ,....
poration named in the within instrument , and..acknowledged to
. :.
me that they executed the' sa~e on ~ehalf of said corpora~~on.
~~.~ ': :
affixed
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""'h,
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IN WITNESS WHEREOF , I have hereunto set my"ha11;(l"~'\i jv
my official seal the day and year first above '~.rit:leir:"
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Residing at Boise
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Idaho "
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llTATE OF IDAHO.
" )
COUNTY OF ADA.
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88.
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, Qn this ' 4th day of 'November , 1959, before me,.'the ,under-
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signed, a No~ary Public in
,:
~d ,for said, .State
: '
p6r~onally:
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~ppeared DON Jr. ~AGLESON;:~i~~ifiiue :':~h
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:r Roal EBta~e Solos corp ;!'~~~J. col"po~a t1~~~h~ ~~cutOd
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1.:' o oration execu ted the Brou
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; ~ WITNESS ~EOF~'~~~e ~e ~~t
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bL R ebec.9 Q ~oo~worth :
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Notary Public or the state, of, Idtho,, Be siding at Baise,-' Idaho
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STP.TE OF IDAHO,
.. "
COUNTY OF ADA,
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On thi B 18th day of November : 1959, before me ;
~ '
the under-
. ,. "~- ,:\,
signed, a Notary Public .~n and for, said state
, '
per Bonally'
, .., ,. , , . ', ,:" " .. - :
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appeared G. J. Gardner , known to me to be
,.
the Trust ,Officer
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of First Security Bank ,ot Idaho, 'National :aooie.tl'oil,
~~ '
that
' ;~ ,';".' :
executed the foregoing instrument as Trus~ee,. and , B~knowlodged:
, ,." '' " ", '
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to me that such Bank , as such Trustee executed the . Bronco
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IN WIWESS WHEREOF, 'I have, hereunto set .my .hand, and 'af!'ixed
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my o!'l'iclal seal,- the day and year' in this certlf'icate..ffrst
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above wri tten.
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. ~o ~ary ublic .forthe .;tQto o
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aho,
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)1esidl~g at Boise Idaho":~ :'
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Request 5
ASS IGNHENT
KNOW ALL MEN BY THESE PRESENTS:That for and in consider
tion of the awn of Ten and no/loa Dollars (~lO .00), recei~t of
which is hereby acknowledged, the undere1guecl, HORLAN' S BOISE,
INC. ( an Idaho corporativn, does hereby sell, transfer, assign
~P~nd set over unto DALICE CHESTER and BARBARA CHESTER, husband
and wife, all of its right~ title and interest in and to that.
certain Trust Deed made and entered into on the 4th day of
1:1ovemberl 19S~, by and between Real Estate Sales Corporation,
therein designated as Grantors, and the Firat Security Bank of
Idaho, a National Association, therein designated as Trustee,
12 I COf-'Y of' which '.rr1..u~t Deed is attached hereto and by refer\.i:!lc('
viherein sa ~ gr 7 ~'
~.' . ~?;
I?;~,gS~.fI.
~~_
~r~tion ox the undel;'- i
ta);::ings therein set forth, provide and assure maintenanc~:)nd
incaqJorated herein as if fully set forth hereat i~, haec "ire:;:;:;;:"
operation of that certain \'later syatem as therein d'2::'~_l.
~;.
DGd a:-~L.
did therein grant and convey to said Trustee the follow~g
property;
All of ita right, title and Lnterest in and to
the following described real ~roperty;
Commencing at the southeast corner of Lot
of Block 2 of Terre Grande Park. No.1 Sub-
division as the same appears on the official
plat of such Subdivision On file and of record
in the office of the County Recorder of the
County of Ada, State of Idaho, and runnin9 thence
West along the southerly boundary of said Lot
3 a distance of 87 feet to a point, be ing the
real point of beginning ," running thence S01..lth
5 feet thence West 16 feet; thence North lO
feet; thence East 16 feet; thence South 5 feet
to the real POint of beginnUlg;
Commenc~g at the centex of the intersection
of Skillern Way and Penninger Circle, Drive assuch streets .a~ar on the official plat at.-
"",
ASSIGNHEN', P. 1
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Terra Grande Park No.. 1 Subdivision on file
and of record in the office of the County
Recorder of the County of Ada, state of Idaho,
and running thence East a distance of 25 feet
to the east side~ine of Skillern Way f being
the true place of beginning thence running
North 6 feet thence East 12 feet thence
South 12 feet. thence West 12 feet; thence
North 6 feet to the point of beginning..
(b)The well or wells, plant, chemical treatment facilities,
storage and dietribution facilities, including the water mains
and lateral lines heretofore constructed or to be constructed,
including ~lJ.,.eaaer!lents i.ncide.n~.the ownershit? and ol?eration
of said water system.
BY THESE PRESENTS, The undersigned Assignor does hereby
direct ~le saia Trustee to recognize the Assignees hereinabove
named, to wit:Dal.:ic e Chester ana Barbara Chester . hus.band and
wife, in the same place and stead as said Trustee has recognized
the Assic;nor hereinabove na;-"ec'f as if these: !?resents had no(~
been made.
Dated this 1st day of October 1969"
HO~11 S BOISE INC.
19 !
e~~
Pres ident
STATE OF IDAHO sa..county of Ada
On this day of october, 1969. before me, the under-
signed. a Notary Public in and for said State. personally
appeared RUSSELL FEREDAY, President of Harlan I s Boise, Inc.1
known to me to be the person whose name is subscribed to thewithin instrument, and acknowledged to me that he executed tl1€
same for and on behalf of said corporation.
IN WITNESS WHEREOF,
my official seal the day
I have hereunto set my hand and affixed
and year first above written.
-:s ~ VII\. ~ t c.~ \ A. '"'-
Notary Public for Idaho
Residing at Boise, Idaho
ASSIGNMEH".e, P.