200501051st Response of United Water 10 to 29.pdf

UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.1 0:
Will all portions of the Columbia Water Treatment Plant be operational by March
2005? If not, which portions will not be operational?
RESPONSE NO.1 0:
The current construction schedule anticipates the Plant will be fully operational
by the end of March 2005. During the month of March 2005 the Plant will begin
to produce water that will be delivered to customers while all the different
systems undergo operational testing. By the end of the month of March we
anticipate the Plant will be capable of producing 6 MGD continuously ascustomer demand requires.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 11:
Are there portions of the CWTP that have been oversized to accommodate future
expansion? What is the current capacity of the plant in MGD? How much can
the plant be expanded?
RESPONSE NO. 11:
The CWTP and all of its components have been properly sized to add ress
current and projected system demands at the lowest cost. The current capacity
of the CWTP treatment process is 6 MGD and is anticipated to be modularly
expanded as demand grows. The ultimate capacity will depend on factors such
as treatment filter material , footprint changes , proven operational techniques and
regulation. Ultimate plant capacity is expected to be in the range of 20 MGD
which will require additional process, treatment equipment and facility expansion.
Many processes or portions of the facility are necessary regardless of plant
capacity. Site and space planning has been considered in order to expand when
necessary. Source of supply options are limited and especially under these
circumstances it is mandatory to consider anticipated growth in system demand.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 12:
Will the CWTP initially have the capability for pretreatment and ultraviolet
disinfection? If not, are there plans to add these treatment processes in the
future? What would cause these processes to be necessary in the future?
RESPONSE NO. 12:
Pretreatment and ultraviolet disinfection have not been provided initially.
Pretreatment could become necessary if sustained algae activity or color
associated with iron develops in the raw water. There have been seasonal
episodes both at Marden and Micron but did they not last long enough to
seriously affect production. United Water did perform pilot work using a
dissolved air floatation (DAF) pretreatment process to confirm how this process
could work if ever needed. The existing piping, floor plan and site can efficiently
accommodate this addition if ever needed.
Ultraviolet (UV) disinfection following the membrane filtration is planned only in
the event cryptosporidium or spores become a problem in the raw water. The
positive barrier of membrane fibers as opposed to granular media greatly
minimize this potential. It was prudent however to keep this option available as
an efficient upgrade if raw water conditions change or regulatory agencies set
new standards.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 13:
Please provide any evaluations , analysis, comparisons, etc. used to develop the
planning cost estimates (capital and O&M) for membrane filtration and granular
media as stated on page 14 , lines 13-22 and page 15, lines 1-2 of your
testimony.
RESPONSE NO. 13:
All of the evaluations were completed as a part of the Basis of Design report and
workshop process. Please refer to answer to request number 9.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 14:
Please provide a copy of the 4/22/02 Request for Proposals, a list of the invited
proposers, a copy of the four proposals received, a copy of the 6/18/02 final CDM
proposal , and a copy of the 9/20/02 contract with CDM.
RESPONSE NO. 14:
Material responsive to this Request is being submitted pursuant to the
Protective Agreement dated December 10 , 2004.
See attached documents:
Request for Proposal
List of invited prospers
The four Proposals received including CDM's proposal which was their
final proposal
. CDM contract (The correct date of contract is 8/20/02)
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Recordholder/Sponsoring Witness: Scott
RheadTelephone: [phone]
Title: Managing Engineer
REQUEST NO. 15:
Please provide a copy of any document, agreement or correspondence between
UWI and CDM documenting the 1/14/04 guaranteed maximum price.
RESPONSE NO. 15:
For clarification purposes the chronological dates are as follows:
Draft guaranteed maximum price (GMP) submittal January 8, 2004
GMP workshop and negotiations January 14 , 2004
Final GMP established and contract amendment #1 February 4, 2004
Notice to proceed February 6, 2004
See attached documents:
Correspondence dated January 8, 2004
Correspondence dated February 4 , 2004
Correspondence dated February 6 , 2004
UNITED WATER IDAHO INC.
CASE NO. UWI-W-O4-04
FIRST PRODUCTION REQUEST
IPUC STAFF
ATTACHMENT TO
RESONSE TO
REQUEST NO. 15
, , .
O. Box 3885 (Zip 98009-3885)
11811 N.E. 1 st Street, Suite 201
Be/levue, Washington 98005-3033
tel: [phone]
fax: [phone]
February 4" 2004
Mr. Greg Wyatt
President
United Water Idaho
8248 West Victory Rd.
Boise" ID 83709
Subject:Columbia Water Treatment Plant Design-Build
Guaranteed Maximum Price Contract Amendment
Dear Mr. Wyatt:
Enclosed for your signature is Amendment No.1 to our Agreement of August 20" 2002 for the
design and construction of the Columbia WTP. The final Guaranteed Maximum Price (GMP)
is $16"844,.498,, reflecting the scope adjustments made to CDM's January 8" 2004 draft GMP
submittal.
Weare excited to have reached this agreement,. and look forward to completing a landmark
facility for UWID.
Very truly yours,
cc: File 5000-36680
Document code
consulting. engineering. construction. operations
AMENDMENT DATED 29 JANUARY -2004 TO AGREEMENT DATED 20
AUGUST 2002 BETWEEN UNITED WATER IDAHO AND CDM
CONSTRUCTORS FOR THE COLUMBIA WATER TREATMENT PLANT
Article 5 is amended to reflect the following:
Article 5.1 is modified to reflect a Notice to Proceed date of February 6, 2004.
For each day the Notice to Proceed is delayed beyond that date, the dates
indicated below will be increased on a day for day basis.
Article 5.1 is modified to reflect a change in the Substantial Completion Date to
Julyl 2005. Substantial.completion will be considered as successful completion
of the 30 day facility test.
Article 5.2 is modified to add the following Interim Milestones:
Date for start of 30 day facility test is June 1 , 2005
Article 5.4 is modified to reflect the date for start of Liquidated Damages is
changed to July 1 , 2005 if Substantial Completion has not been reached.
Article 5.5: is deleted and the following inserted:0 If the 30 day facility test is commenced on or before 1 June 2005, Owner
shall pay Design-Builder at the time of Final Payment under Section 7.3
hereof an early completion bonus of Three Thousand Five Hundred
Dollars ($3 500) for each day that the 30 day test is st~ed before June 1
WM.
Article 6 is amended to reflect the following:
Article 6.1 is modified to incorporate by reference Designer Builder s GMP
proposal dated January 8 2004 as modified through negotiations January 14 and
January 15 , 2004, a copy of which is an Exhibit to this Amendment.
Article 6.1.3 supplemental assumptions that are not included elsewhere
include:
Primary power to the facility and the Raw Water Pump Station, up to and
including the utility transfonner is the responsibility of United Water.
Contractor responsibility begins at the secondary side of the utility
transfonner.
All fiber optic coriununication line is the responsibility of United Water.
Contractor will provide conduit :trom the Operations Building telecom
room to the Raw Water Pump Station flow meter vault.
The Yard Piping that is currently underway and the Raw Water and
Treated Water Piping beyond the site (as defined on the drawings) are the
responsibility of United Water.
The first sentence of Article 6.1.10.1 is modified to read; "Design-Builder
guarantees that it shall not exceed the GMP of $16 844 498 (Sixteen Million
Eight Hundred Forty-Four Thousand, Four Hundred Ninety Eight Dollars).
The first sentence of Article 6.5.1.10.2 is modified to read: "The GMP includes a
contingency of$550 000 (Five Hundred Fifty Thousand Dollars) which is
available for Design-Builder s exclusive use for costs that are incUlTed in
perfonning the Work that are not included in a specific line item or the basis for a
Change Order under the Contract Documents.
Article 9 is amended to reflect the following:
Article 9.1.2 is modified to identify Owner s Representative as John Vandegriff.
OWNER:
DIRECT LABOR RATE OF KEY STAFF
Key Staff Hourly Rates
Greg Lindstadt $56.
Greg Wetterau $38.
Phil Davis $57.
Dan 0 lmo $47.
Dan Hutton $51.30
Gary Laakso $56.
Chuck Bolton $75.
Peter Tunnicliffe $75.
Paul Meyerhofer $75.
Doug Brown $56.
Paul Giorsetto $61.Ricardo Azcarate $44.
Bruce Murdock $48.
Richard Smith $41.51Rick Goode $39.
Domenick Rose $51.
Ker-Sing Yang $42.
Ted Perry $30.
Peter Stringer $33.
Note:
1. Hourly rates reflect status as of30 December 2003 , except senior
officer rates held at $75.00/hr. Rates will be adjusted per CDMappraisal process where adjustments occur generally on the month the
employee was first hired.
2. Fringe benefits and payroll taxes will also be adjusted. The fringe and
benefit rate will be the direct cost as supported by the invoice cost
accounting backup.
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P
M
UNITED WATER IDAHO INC.
CASE NO. UWI-W-O4-04
FIRST PRODUCTION REQUEST
IPUC STAFF
ATTACHMENT TO
RESONSE TO
REQUEST NO. 15
Uni ted Water
"" ~, -
(ID
United Water Idaho
8248 West Victory Road
Boise, 1083709-4165
telephone [phone]
facsimile 208.362.7069
e-mail greg.wyatt(g2unitedwater.com
February 6, 2004
Gregory L. Lindstadt, P .
Camp Dresser & McKee Inc.
11811 N.E. 1 8t Street, Suite 2001
Bellevue, Washington 98005
Subject: Columbia Water Treatment Plant, Notice-to-Proceed
Dear Greg,
This letter will serve as the Notice-to-Proceed with all necessary activities related to the
construction of the Columbia Water Treatment Plant. Our design/build contract will be
amended to reflect the negotiated Guaranteed Maximum Price, revised language for early
completion/liquidated damages and staff labor rates. I anticipate the contract amendment to be
in place within the next two weeks.
The intent of this Notice-to-Proceed is to allow CDM to secure subcontractors and suppliers as
quickly as possible to mitigate material price escalations projected in the near term future.
Please do not hesitate to contact John Vandegriff(208.362.7355) or myself with any questions
or comments you have regarding the information provided in this letter.
cc: G. Albertson
S. Rhead
1. Vandegriff
File
j .. '
ONDEO~o Services
www.unitedwater.com
UNITED WATER IDAHO INC.
CASE NO. UWI-W-O4-04
FIRST PRODUCTION REQUEST
IPUC STAFF
ATTACH M ENT TO
RESONSE TO
REQUEST NO.
O. Box 3885 (Zip 98009-3885)
11811 N,E, 1st Street, Suite 201
Bellevue, Washington 98005-3033
tel: [phone]
fax: [phone]
Jan. 8, 2004
Mr. Greg Wyatt
President
United Water Idaho
8248 Vvest Victory Rd
Boise, ID 83709
Subject:Columbia Water Treatment Plant Design-Build
Guaranteed Maximum Price Submittal
Dear Mr. Wyatt:
This package includes CDM's Guaranteed Maximum Price (GMP) for design, construction
and start-up of the Columbia Water Treatment Plant. The information in the package
organized into the following sections:
Section A: This Summary letter;
Section B: GMP summary breakdown, following CSI format;
Section C: The detailed GMP estimate breakdown behind the GMP summary.
in this section, for each of the 16 CSI divisions, are:
Detail estimate worksheet
Request for Proposal for associated subcontractor scope, where applicable
0 Subconh"actor or vendor quotations for associated scope, where applicable.
Section D: A table summarizing all the subcontractors solicited, and the quotations
received.
Included
Guaranteed Maximum Price
Our draft Guaranteed Maximum Price is $16,819,000. A detailed breakdown of this sum is
attached in Section B. We look forward to discussing the basis of this GMP with you next
week, confirming a final GMP, and discussing the next steps necessary to preserve the start-
up date.
consulting. engineering. construction. operations
Mr. Greg Wyatt
Jan. 8, 2004
Page 2
Very truly yours,.-1 tJ'
~ '
/i' "1
Greg Llndstadt, Project Manager
Associa te
Calnp Dresser & McKee Inc.
CD
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UNITED WATER IDAHO INC.
CASE UWI-W-O4-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Ahead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 16:
What incentives does CDM have to complete the project at less than the GMP?
RESPONSE NO. 16:
The contract has no provision for a monetary incentive to COM if the project
should be completed at less than the GMP. 1000/0 of all savings below the GMP
are to the benefit of United Water. The contract (modified in amendment number
1) does have provisions for liquidated damages of $5 000/day or early
completion bonus of $3,500/day tied to June 1 2005.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 17:
Please provide evidence of competitive bidding between subcontractors.
RESPONSE NO. 17:
Material responsive to this Request is being submitted pursuant to the
Protective Agreement dated December 10 , 2004.
See attached document:
. CDM Subcontractor Quotations
UNITED WATER IDAHO INC.
CASE UWI-W-O4-04
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Ahead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 18:
Please reconcile the difference between the guaranteed maximum price of
$16,844 498 as stated on page 20, line 3 and the amount of $18 201 714 shown
on Exhibit 8, page 1.
RESPONSE NO. 18:
The $16 844 498 is the budgeted guaranteed maximum price for the project as
proposed by United Water s contractor CDM. The $18 201 714 is the projected
total cost at time of completion and includes items not associated with CDM.
The majority of these other items include:
Site piping installed by Owyhee Construction
Construction staking and grade control
Construction testing and quality control
Owner supplied equipment (i.e. security system)
Offsite utility charges for power and gas
Company labor for inspection and project management
Company overheads
. AFUDC
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 19:
When will the final actual costs of the CWTP be known? How is UWI proposing
to establish rates in this case if the actual costs of the CWTP are not known until
after an order is issued? What if the final actual cost is less than the guaranteed
maximum price?
RESPONSE NO. 19:
The Company is assuming that for the purpose of this response "final actual
costs" means those costs that have been reviewed, approved , paid and booked
by the Company to the appropriate plant account.
I n March 2005 , when the CWTP goes into service, at least 900/0 of the costs
associated with the plant will be final actual costs. However, a relatively small
amount of cost will not be known to the exact dollar for several months after the
plant is put in service. These costs will, however be sufficiently definite to be
known and measurable even though they will not be "final actual" costs.
Assuming CWTP goes into service in March 2005 , the final AFUDC allocation will
occur in April 2005. Some contractor billings will continue to be processed
through May, perhaps June. Incidental contractor and company charges might
continue for several months thereafter as final touches are put on the plant. All of
these anticipated costs will be included in the Company s updated estimate of
cost to complete and will be provided in rebuttal testimony and again immediately
prior to hearings in this case.
The Company is proposing to establish rates based on a combination of actual
cost incurred to a reasonable date (April 2005), plus precise estimates of
additional committed cost to be incurred through May 2005. Most of the
investment in CWTP is contained in the contract between CDM and United
Water, which is subject to a Gross Maximum Price (GMP) limit. As CDM nears
completion of the plant, their estimate of remaining spend will become more
precise, and by the time of hearings in this case United Water will be able to
forecast final plant cost with a high level of certainty. The Company is confident
that actual costs incurred plus estimated charges through May 2005 will produce
an investment amount very close to , but not to exceed , the final actual cost. By
that time, if CDM is forecasting a price less than the GMP , the lower cost will be
reflected in the May 2005 known and measurable number.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 20:
Reference p. 21 , lines 5-7. What does "partially operational in March 2005"
mean? What is meant by "full operation
RESPONSE NO. 20:
Please refer to response No.1 O.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 21
Reference Exhibit 11. What factors cause cost differences between the plants
listed? What factors cause the CWTP unit costs to be so much higher than the
average? Are the costs shown only for CDM projects?
RESPONSE NO. 21 :
The main differences involve the breadth of the project scope. Some projects
involve addition of membrane filtration to an existing plant. In these cases, costs
are relatively low, since significant costs for storage reservoirs , large-diameter
site piping, solids-handling facilities, chemical storage and fee, and
operations/administrative space have been incurred previously. Other factors
include membrane type (pressure membranes versus immersed), relative raw
water quality, local labor and material cost conditions , and treated water pumping
requirements. The Columbia WTP is a completely new plant, requiring all the
facilities that may pre-exist at some plants , as well as needing treated water
pumping. Consequently, it is to be expected that the CWTP would tend to cost
more than the average of all types of projects. 11 of the 20 plants listed in the
table are CDM projects.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 22:
Reference Exhibit 12. Why are so few conventional plants listed?
RESPONSE NO. 22:
Fewer conventional plants within the comparable capacity range were
constructed during the past decade , and so fewer examples exist.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 23:
Reference p. 23, lines 11. Please reconcile the purchased raw water cost with
Healy Exhibit 3 , Schedule 1 , p. 9.
RESPONSE NO. 23:
I refer in my direct testimony to CWTP annual purchased water expense of
$78 000 (page 23, line 11). Mr. Healy refers to purchased water expense in his
direct testimony (page13, lines 1 through 7) as increasing by $87 528 from the
test year level. He also indicates the driver of this increase is the need for 3 000
acre-feet of additional water to supply CWTP at $26 per acre foot. This equates
when multiplied out, to $78 000. Please refer to Mr. Healy s workpapers for
operating expense adjustments. Supporting the adjustment to purchased water
expense, he includes two workpapers. Both workpapers support the pro-forma
level of purchased water expense included in the case, $195 316 (please
reference Mr. Healy s Exhibit No., Summary, line 9). The first workpaper
indicates that the CWTP need for raw water will be met by contracts with
Fairview Lateral Ditch ($5,500), South Boise Water ($20 400) and Black Canyon
Irrigation ($52 500), a total of $78,400. The exact amount of purchased water
expense for CWTP operation included in this case is $78 400 This is an
educated estimate I supplied to Mr. Healy and will be supported by actual
contracts. The second workpaper breaks the raw water purchases down by
category (natural flow shares in canal companys, contracts and leases) in the
format Mr. Healy used on his Exhibit 3 , Schedule 1 , Page 9 , lines 3 through 6.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 24:
Reference p. 23, lines 14. Please reconcile the miscellaneous cost with Healy
Exhibit 3, Schedule 1
, p.
15.
RESPONSE NO. 24:
Mr. Healy s Exhibit 3 , Schedule 1 , Page 15, line 3 ($32 030) and lineA
($25 180), totaling $57 210 , represents additional cost United Water has included
in the case that are directly or indirectly attributable to the CWTP. The individual
lines are composed of the following items:
Line 3:
CWTP telco service (SCADA, Fire, Security, Lan VPN , etc) $ 15,530
Marden WTP enhanced telco service $ 5 500
System PRY and Well telco service $ 11 000
Annual Expense Line 3:$32 030
Line 4:
CWTP Water Quality testing
CWTP Natural gas space heating
CWTP Building electric service ( lights , etc)
CWTP Trash Removal
CWTP Fire & Burglar Alarm Monitoring
Annual Expense Line 4:
$ 5 400
$ 7 500
$ 8,080
800
$ '3 400
$25 180
Total CWTP Other Opex:$57 210
The "Miscellaneous" expenses I refer to on page 23, line 15 of my direct
testimony ($45 580) are similar in nature to the expenses Mr. Healy included
although he had additional information.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 25:
Reference p. 24 , lines 1-5. Please elaborate on how the operation of other wells
will be affected by the operation of the CWTP. For example , how will
redundancy or backup capacity be affected by the CWTP and what costs are
affected by redundancy and backup capacity? Please explain the workpaper
provided for Healy Exhibit 3 , Schedule 1 , p. 16 (Adjustment No. 16) showing how
the reduction in operating expenses for these wells of $139 580 was computed.
RESPONSE NO. 25:
The reduction in operating expenses was computed as follows:
First, wells were selected that met certain criteria: 1.) Adjacent to the Columbia
water treatment plant; 2.) Located in an area served directly by the plant; 3.
Exceeding the proposed 2006 arsenic MCL and in the vicinity of the plant. Wells
that meet this criteria were used in this calculation as the most likely candidates
for changes in operational cost.
The variable cost for production from these facilities was calculated using
average power and chemical cost per million gallons during the period from June
2003 through May 2004. These power and chemical costs are resident in a
database that is used for tracking monthly power and chemical use per MG (by
kWh and $$) for every well in the United Water system.
Using historical production quantities (in MG) as a basis, the monthly reduction in
production that could be expected as a result of the Columbia WTP operation
were plotted by month for a typical year. The expected reduction in production
from wells that meet the criteria was set to match the monthly production from
the Columbia WTP. The variable cost per MG for each well facility impacted was
multiplied by the expected reduction in production volume.
The expected reduction in production levels impacts wells with levels of arsenic
exceeding the MCL preferentially. After January 1 , 2006 these wells will only be
available in June, July, and August, and production from these wells during the
other nine months of the year will be lost. The balance of the reduced production
was distributed among the other wells meeting the criteria , leaving one
production facility in operation at all times on the Ten Mile Ridge well field to
keep levels constant in the Columbia reservoir, and assuming that wells will be
operated as needed to meet seasonal demands.
Other variable cost reductions (such as labor and vehicles) are insignificant.
Routine facility maintenance and operational activities will continue at these
facilities, with a small reduction in frequency.
These figures were added up for a typical year and the total was $139 580.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 27:
Please explain why UWI is drilling a new well (Maple Hills #2) at the same site as
Maple Hills #1 when Maple Hills #1 requires substantial treatment according to
your testimony on page 25, lines 8-21. What assurance is there that the new
well won t have water quality just as poor as Maple Hills #1 and also require
treatment? Were any other sites considered?
RESPONSE NO. 27:
United Water drilled a test well in December 2001 at the Maple Hill well site to
determine the potential of increasing the water supply capacity. The deeper
aquifer zones had previously been investigated, but the shallower zone (Maple
Hill #2) had not previously been tested for quality or production potential.
The Maple Hill #1 well draws water from a 100-foot thick sand layer located
between 820 and 920 feet below ground surface. Maple Hill #2 well draws from
a 45-foot thick aquifer located between 265 and 310 feet below ground surface.
The aquifer units supplying each well have distinct hydraulic properties and the
water obtained from the respective sand layers have different water qualities.
Water quality testing of Maple Hill #2 indicated significantly improved
characteristics over those of Maple Hill #1 , indicating treatment would not be
necessary.
The decision to drill on the same site as Maple Hill #1 well was based on the
availability of sufficient property for a well site and upon customer demands in the
general vicinity. Adding a second well at an existing site reduces the costs in
land , power line improvements , discharge mains , telemetry equipment
landscaping and other costs that are unique to each site.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 28:
Reference p. 25, lines 4-7. Is this purchase of water rights for future use or
would these rights be used immediately? Are any of these water rights
necessary for the CWTP , or would they be used somewhere else?
RESPONSE NO. 28:
Surface water right negotiations and associated purchases are targeted for
immediate needs at Marden and Columbia water treatment plants. The
opportunities are varied in amount or conditions and are intended to include
natural flow rights, shares in canal companies and storage water. Also included
are the necessary efforts to preserve and protect United Water s existing water
right portfolio.
UNITED WATER IDAHO INC.
CASE UWI-04-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 29:
Please provide correspondence between UWI and CDM concerning contract
conditions , costs and the guaranteed maximum price as referred to on page 5
lines 1-3 of your testimony.
RESPONSE NO. 29:
The information and correspondence is provided in responses # 9, 14 , 15.
CONFIDENTIAL