20060717City of Eagle to UWI 1-7.pdf

Bruce M. Smith, ISB # 3425
Susan E. Buxton, ISB # 4041
MOORE SMITH BUXTON & TURCKE, CHARTERED
Attorneys at Law
950 West Bannock Street, Suite 520
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
Attorney for City of Eagle, Idaho
RECEIVED
200& JUL 11 AM 8: 0 I
IDAHO PUBLIC
UTILITIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
UNITED WATER IDAHO INC., TO AMEND
AND REVISE CERTIFICATE OF
CONVENIENCE AND NECESSITY NO 143
Case No. UWI-06-
CITY OF EAGLE'S RESPONSE
TO UNITED WATER IDAHO
INc.'S FIRST PRODUCTION
REQUEST
COMES NOW the City of Eagle, Idaho, by and through its attorney of record, Bruce M.
Smith, and submits its Response to First Production Request of United Water Idaho Inc. to the
City of Eagle, Idaho. Pursuant to Commission Rule of Procedure, the documents were prepared
by Counsel and Vern Brewer and the record holder is Sharon Bergmann, City Clerk, P.O. Box
1520 , Eagle, ID 83616 [phone].
As a general response, the City objects to any request which seeks information protected
by the attorney work product doctrine, attorney/client privilege, including information produced
or generated pursuant to the Executive Session meeting by the City.
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INc.'
FIRST PRODUCTION REQUEST - 1
REQUEST NO.: Does the City contend it has legal authority to annex an area outside
its approved Area of City Impact and specifically the area of Trailhead Community for which
United Water is seeking inclusion in its service territory? If so, explain in detail the basis of the
contention, indicating which provisions of Idaho Code 50-222 provide the claimed authority.
Explain how such annexation would qualify either as a Category A, Category B or Category C
annexation.
RESPONSE TO REQUEST NO.: In response to the first sentence, yes. The City
objects to the remainder of Request No.1 in that it improperly seeks information which is
protected by attorney work product.
REQUEST NO.: Has the City submitted to the Ada County Commission, pursuant to
Idaho Code 67 -652( d), a written request to renegotiate its Area of City Impact to include the
portions of the Trailhead Community for which United Water is seeking inclusion in its service
territory. If so, provide a copy of the written request for negotiation. If a formal request has not
been submitted, provide a copy of all correspondence to and from the Ada County Commission
evidencing any preliminary discussions to commence the renegotiation process.
RESPONSE TO REQUEST NO.: The City has not submitted a written request to
renegotiate its Area of Impact nor is there any correspondence with the Ada County
Commissioners regarding preliminary discussions to discuss the renegotiation process.
REQUEST NO.: In the City Letter Comments dated and filed herein on May 31 , 2006
reference is made to development of a "Memorandum of Understanding" between the City and
the developer. Please provide copies of all drafts of said Memorandum and the executed version
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INc.'
FIRST PRODUCTION REQUEST - 2
if one exists. If there are neither drafts nor final versions of said Memorandum, please provide
all correspondence to and from the developer regarding preparation of such memorandum.
RESPONSE TO REQUEST NO.: The City does not have a draft or final copy ofthe
Memorandum of Understanding. According to the developer at a meeting on July 7, 2006, they
are still drafting the MOU but have not delivered it to the City.
REQUEST NO.Please provide any and all information from the City of Eagle
Municipally Owned Water System Amended Master Plan, Revised November 2005, or from any
other City of Eagle water system planning documents, that indicate the City of Eagle s plans to
provide water service to any areas north of Homer Road and/or to any areas currently proposed
for water service in United Water Idaho s current application (Case No. UWI-06-04) to
amend and revise its certificate of convenience and necessity No. 143.
RESPONSE TO REQUEST NO.: The City will make available to UWI an
opportunity to review a copy of the Master Plan. UWI counsel may contact City counsel to
arrange a date, time and location. As to "other water system planning documents , because the
request is so vague, the City is not sure what documents UWI is seeking. However, the City does
not believe other such documents exist.
REQUEST NO.: Please provide copies of all municipal ordinances adopted by the
City relating to the operation and expansion of the City municipal water system.
RESPONSE TO REQUEST NO.: Please see attached.
REQUEST NO.: Please describe how the City intends to finance the expansion of its
municipal water system generally. If the issuance of bonds under the Municipal Bond Law is
contemplated, describe the status of such issuance.
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INc.'
FIRST PRODUCTION REQUEST - 3
RESPONSE TO REQUEST NO.Objection. This request is so broad, vague
ambiguous and generalized that it cannot be answered. Notwithstanding the City's objection, the
City would customarily use all authorities available to it to finance any expansion. Depending
upon the specific work involved, the City would use one or more appropriate financing
opportunities.Such opportunities could include issuance of bonds, funding out of general
revenue, development agreements, and other sources of funding.
REQUEST NO.: If different from you answer to Request No.6 please describe how
the City would intend to finance the construction of facilities to serve the Trailhead Planned
Community.
RESPONSE TO REQUEST NO.The City is currently in negotiations and
discussions with the developer to identify developer and City needs and timelines. No decision
has yet been made on the specifics of this project because the developer has not yet identified its
needs and timelines. In its discussions with the City, the developer has represented that it has not
yet identified its water needs, the size of line that might be necessary to serve, its desired location
for service, its development schedule, or its plans for the development except in very general
concepts. The developer has indicated it has no entitlements such as zoning approvals or other
necessary permits or approvals that would allow a determination as to as to the specifics of its
water needs or its development. The developer has indicated and reaffirmed its desire to be
annexed into the City which requires that water service be provided through the City system.
Financing needs and options will depend upon resolution of some of these issues and the
developer s planning process.
DATED at Boise, Idaho, this
Lt
day of July, 2006.
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INc.'
FIRST PRODUCTION REQUEST - 4
MOORE SMITH BUXTON &
TERED
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INc.'
FIRST PRODUCTION REQUEST - 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS rk\.DAY OF illLY, 2006 SERVED THE
FOREGOING RESPONSE TO THE CITY OF EAGLE'S RESPONSE TO UNITED
WATER IDAHO, INC.S FIRST PRODUCTION REQUEST IN CASE NO. UWI-06-
BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
) U.S. Mail, Postage Prepaid
( ) Hand Delivered
( ) Overnight Mail
( )
Facsimile
~)
u.S. Mail, Postage Prepaid
( ) Hand Delivered
( )
Overnight Mail
( ) Facsimile
) U.S. Mlril, Postage Preplrid
( ) Hand Delivered
( ) Overnight Mail
( ) Facsimile
Dean J. Miller, Esq.
McDevitt & Miller LLP
420 West Bannock Street
PO Box 2564
Boise, ID 83701
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
Scott Woodbury
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ID 83720-0074
CITY OF EAGLE'S RESPONSE TO UNITED WATER IDAHO, INC.
FIRST PRODUCTION REQUEST - 6
23: DONATION OF WATER SYSTEMS TO THE CITY:Page 1 of2
23: DONATION OF WATER SYSTEMS TO THE CITY:
Design Standards: All newly constructed water systems shall be designed according to the
city construction and design standards as it pertains to water systems.
Water Systems Shall Be Dedicated To The City: All newly constructed domestic drinking
water systems, constructed after the enactment of this chapter within the water service
area, must be dedicated to the city, at the city s option , after the city inspects such system
for compliance with the construction and design standards. Included in the public
dedication of the water system, the water system owner must also provide a reasonable
right of way and easement to allow for maintenance and service of the water system. (Ord.
202 , 5-26-1992)
Conditions Of Annexation And/Or Approval Of New Development: As a condition of
annexation into the city and/or as a condition of approval of new development within the
city, the landowner and/or developer shall:
1. Secure suitable surface water rights adequate to satisfy all irrigation , aesthetic, amenity,
or recreation needs of the proposed development and/or property proposed to be annexed.
Said water rights must be valid , existing water rights recognized by the Idaho department of
water resources (the "department"). If any transfer, amendment or other proceedings are
required under Idaho Code or department rule or regulation for the city s use of such water
the owner and/or developer shall be solely responsible for the city s costs of completing the
same and the city s costs of obtaining all necessary approvals from the department as a
condition of annexation and/or development, including costs associated with mitigation;
2. Secure suitable ground water rights adequate to satisfy all ground water needs of the
proposed development and/or property proposed to be annexed and transfer or assign said
water rights to the city for inclusion into the city s municipal water supply system. Said water
rights must be valid , existing water rights permitted or licensed by the department. If any
transfer, amendment or other proceedings are required under Idaho Code or department
rule or regulation for the city s use of such water, the owner and/or developer shall be
solely responsible for the city s costs of completing the same and the city s costs of
obtaining all necessary permits and approvals from the department as a condition of
annexation and/or development , including costs of mitigation;
3. Pay for the city s costs of construction of municipal supply well(s) necessary to meet the
demands of the proposed annexed property and/or new development. The city engineer
shall determine the necessary location , number, and capacity of well(s) based upon the
proposed development or other improvements. Said wells shall be constructed to city
standards. The owner and/or developer shall be solely responsible for the city s costs of
obtaining all necessary permits and approvals for such wells as a condition of annexation
and/or development, including the costs of any required mitigation. The design and
construction of municipal supply wells shall be reviewed and inspected by the city engineer;
a. At the option of the city, demands arising from more than one development may be
served by a single well or centralized well with the costs thereof apportioned to the
participating developments in proportion to their water demands.
4. Any well construction or development of ground water resources shall be prohibited
7/13/2006
23: DONATION OF WATER SYSTEMS TO THE CITY:Page 2 of 2
within the city s municipal water service area except as may be set forth in a development
agreement or by a special purpose permit issued by the building official and approved by
the city council.
5. The requirements for obtaining surface water rights for irrigation, aesthetic, amenity, or
recreation needs may be waived if the city determines that the landowner and/or developer
is entitled to a waiver under subsection9=4:1:9~Z_of this code and that the landowner
and/or developer cannot secure surface water rights by appropriation or transfer to the
proposed development and/or property proposed to be annexed.
6. Nothing in this subsection shall require the transfer or assignment of a water right
represented by shares of stock in a canal company. (Ord. 530, 10-18-2005)
7/13/2006
MOORE SMITH BUXTON & TURCKE, CHARTERED
ATIORNEYS AND COUNSELORS AT LAW
950 W. BANNOCK STREET, SUITE 520
BOISE, ID 83702
TELEPHONE: [phone] FAX: [phone]
STEPHANIEJ. BONNEY
SUSAN E. BUXTON"
MICHAEL C. MOORE:!
PAULJ. FITZER
BRUCE M. SMITH
PAULA. TURCKE'
TAMMY A. ZOKAN
JOHN J. McFADDEN'1
Of Counsel
" Also admitted in Oregon
f Also admitted in Wasbington
'Also admitted in South Dakota
+ Also admitted in New Mexico
July 14, 2006
Ben Forrey
Kastera Homes
372 S. Eagle Road , Suite 375
Eagle , ID 83616
Re:Annexation and Development of Trailhead Community
Dear Ben:
This is a follow up to the meeting between Kastera Homes and the City of Eagle on
July 7 , 2006. The City representatives thought it was a very productive meeting and we look
forward to receiving infonnation about the Trailhead development from you. The meeting
was also helpful in clarifying the miscommunication from the previous meeting and the City'
providing water service to the development.
My notes reflect that you indicated the Trailhead Community development is still in the
conceptual stage and that Kastera (or the actual development company) is still examining how
development will proceed but no applications have been filed with either the County or the
City at this time. You indicated your preference is that the development proceed in the City.
As soon as an application is ready to be filed, it would be helpful for you and the City Staff to
meet again.
As the City confirmed, it is ready and capable of providing water to your development.
As soon as you develop a time line and plan your development's needs , it will be necessary to
meet with you to review the plan. We also understand you are nearing completion of the
Memorandum of Understanding between Kastera and the City that was discussed at the earlier
meeting between the City and Kastera.
On the issue of water service, we discussed the pending proceeding before the IPUC
because of United Water s application to amend its certificate of service. You are going to
prepare a letter to send to United Water and to IPUC indicating that you are in discussions
with the City over services and annexation proceedings. Given your stated intent to annex into
the City, water services will be provided through the City municipal system. The letter to
Ben Forrey
KASTERA HOMES
July 14, 2006
Page 2
United Water and IPUC will help avoid unnecessary proceedings before the IPUC and allow
the City and Kastera to continue their discussions.
Per your conversation this week with Bruce Smith, we understand that Tom Morris has
the letter regarding United Water ready to be sent. It would be appreciated if you could
expedite this because the City and United Water are currently having to deal with the issue of
the certificate amendment before the IPUC. Please let either the City or me know when you
would like to have the next meeting. We suggest an appropriate time would be when you have
made some determination as to your plans and schedule for development of Trailhead
Community .
Sincerely yours
MOORE SMITH BUXTON & TURCKE
CHARTERED
Susan E. Buxton
cc:City of Eagle