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HomeMy WebLinkAbout20070221UWI to Staff 1-5.pdfMcDevitt & Miller LLP Lawyers ; ~2, ~~: C ~~:: ' (208) 343-7500 (208) 336-6912 (Fax) 420 W. Bannock Street no 1 FEB 21 Pi', I: 0o. Box 2564-83701 Chas. F. McDevitt Boise, Idaho 83702 i U ,\ h (,, :; ;:. Li :~. .. Dean J. (Joe) Miller iF'~ CC i'/i00Ii. ,Co. ' ..-" February 21 2007 Via Hand Delivery Jean Jewell, Secretary Idaho Public Utilities Commission 472 W. Washington St. Boise, Idaho 83720 Re:Case No. UWI-07- Dear Ms. Jewell: Enclosed for filing, please find three (3) copies of United Water Idaho s Responses to Commission Staffs First Production Requests. A computer disc containing the Responses is also enclosed. Very Truly Yours McDevitt & Miller LLP~~L Dean J. Miller DJM/hh Enclosures P. f C; " ::' '.: - UNITED WATER IDAHO INC. FIRST PRODUCTIO ~~~:S~- g~- iHE coMrJlr~Y;b~2~T l~\F \: 09 . , 1\( , " ,; i \ Ir'.,') ,.. l;r... \..' " IJTIL\--riES CCJ;\',i~;\~3SIUi Preparer and Company Witness: Gregory P. Wyatt REQUEST NO. Please provide a break down of the estimated facilities costs included in the Avimor Special Facilities Agreement that add to $6 308 805. Show the costs separated into the following categories; storage tank, booster pumping station , off site transmission main and on site transmission main. Show the overheads for each facility category separately. RESPONSE NO. The breakdown of the estimated costs included in the Avimor Special Facilities Agreement is shown below as requested. Cost UWID O/H Total Storage Tank 770 972 $17,446 788,418 Booster Pump Station 222 811 $27 670 250,481 Off-site Transmission Main 711 239 $38 723 749 962 On-site Transmission Main 183 761 519 944 Total Cost $6.169.205 $139.600 $6.308.805 UNITED WATER IDAHO INC. CASE UWI-O7- FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer and Company Witness: Gregory P. Wyatt REQUEST NO. On page 5 of the Avimor Special Facilities Agreement in the first line of paragraph 10 "Off-site Main Reimbursement" reference is made to "12- inch" main. Does this agreement include 12-inch main that Avimor is contributing or advancing? If it does , please provide the 12-inch main costs, location(s) and advance/contribution treatment proposed along with the reasoning that justifies the proposed treatment. RESPONSE NO. The above referenced "12-inch" main on page 5 , paragraph 10 , of the Avimor Special Facilities Agreement is a typographical error and should read "16-inch. There is no 12-inch main associated with the Avimor Special Facilities Ag reement. UNITED WATERIDAHO INC. CASE UWI-O7- FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer and Company Witness: Gregory P. Wyatt REQUEST NO. Please provide Company Exhibit G in Excel electronic format. Also provide the calculation of Exhibit G inputs in Excel electronic format. Please provide the backup document for the inputs for Exhibit G as well. RESPONSE NO. The Excel file for Exhibit G is provided electronically and is titled "Refund Calc Model Exhibit - G.xls Many of the inputs for Exhibit - G are calculated within the model and pull from the other worksheets within the file. The inputs not provided within the model are listed below along with their source: Meter cost of $100 - See attached "Meter Installed Cost Basis" worksheet. This cost is the same used in the Carriage Hill system sale to Nampa, Case No UWI-04-03. Operating and Maintenance Expenses of $158.20 per customer - See attached "Calculation of O&M cost per Customer - 2005" worksheet (Excel file provided electronically). Also attached is a copy of United Water Idaho 12/31/05 Income Statement which is the source document for the O&M costs. Also attached is a copy of page 12 of United Water Idaho s 2005 Annual PUC Report which identifies the customer count numbers used in the calculation of average customers. Depreciation rate of 3.1 % is a composite annual depreciation rate and is supported by the included Excel file titled , " 2005 Composite Depreciation.xls. The percentage inputs for "Debt" , " Interest on Debt", and "Income Tax" are those approved in United Water Idaho s 2004 Rate Case No. UWI-04- Un i t e d W a t e r I d a h o At t a c c h m e n t t o R e s p o n s e t o P r o d u c t i o n R e q u e s t N o . Ca s e N o . U W I - 07 - CA L C U L A T I O N O F R E F U N D S F O R S P E C I A L F A C I L I T I E S EX H I B I T - G Up d a t e d f o r d e p r e c i a t e d p l a n t a t 12 / 3 1 / 2 0 0 5 an d c u r r e n t R O R , r a t e s a n d e x p e n s e s Un i t e d W a t e r I d a h o Sp e c i a l F a c i l i t i e s A g r e e m e n t Wa t e r C o n s u m e d ( c d ) 10 0 20 0 30 0 40 0 50 0 60 0 70 0 80 0 90 0 10 0 0 Re v e n u e P r o j e c t e d $2 5 8 $4 0 6 $5 5 4 $7 0 1 $8 4 9 $9 9 7 $1 , 14 5 $1 , 29 2 44 0 $1 , 58 8 So u r c e & S t o r a g e I n v e s t m e n t N e t o f D e p r e c i a t i o n $2 5 4 $5 0 9 $7 6 3 01 8 27 2 52 7 78 1 03 6 29 0 54 4 In v e s t m e n t De p r e c i a b l e S o u r c e & S t o r a g e I n v e s t m e n t $3 3 3 $6 6 6 $9 9 8 33 1 66 4 99 7 33 0 $2 , 66 3 99 5 32 8 Pe r C u s t o m e r R e f u n d $3 0 1 $8 9 6 47 6 04 8 62 5 20 0 77 4 34 0 91 1 $5 , 4 8 1 Me t e r s : $ 1 0 0 e a . $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 To t a l I n v e s t m e n t f o r D e p r e c i a t i o n P u r p o s e s $7 3 4 66 2 57 4 $3 , 4 8 0 38 9 $5 , 29 7 20 4 10 3 $8 , 00 6 $8 , 90 9 Su p p o r t e d I n v e s t m e n t $6 5 6 50 5 33 9 $3 , 16 6 $3 , 99 7 82 7 $5 , 65 5 $6 , 4 7 6 $7 , 30 1 $8 , 12 5 To t a l R e v e n u e R e c e i v e d $2 5 8 $4 0 6 $5 5 4 $7 0 1 $8 4 9 $9 9 7 $1 , 14 5 $1 , 29 2 $1 , 44 0 $1 , 58 8 In c r e a s e i n E x p e n s e s Op e r a t i n g a n d M a i n t e n a n c e E x p e n s e s $1 5 8 . $1 5 0 $1 5 8 $1 6 9 $1 8 0 $1 9 1 $2 0 2 $2 1 4 $2 2 6 $2 3 8 $2 5 1 Ad V a l o r e m $1 1 $2 6 $4 0 $5 4 $6 9 $8 3 $9 7 $1 1 1 $1 2 6 $1 4 0 De p r e c i a t i o n ( 0 3 , $2 3 $5 2 $8 0 $1 0 8 $1 3 6 $1 6 4 $1 9 2 $2 2 0 $2 4 8 $2 7 6 To t a l I n c r e a s e i n E x p e n s e s $1 8 4 $2 3 6 $2 8 9 $3 4 2 $3 9 6 $4 5 0 $5 0 4 $5 5 8 $6 1 2 $6 6 7 In c o m e B e f o r e I n c o m e T a x e s $7 4 $1 7 0 $2 6 5 $3 5 9 $4 5 3 $5 4 7 $6 4 1 $7 3 4 $8 2 8 $9 2 1 De b t ( ~ 5 3 . 54 % o f n e t i n v e s t ) $3 9 3 $8 9 0 37 8 86 3 35 0 $2 , 83 6 32 1 80 3 28 7 77 0 In t e r e s t o n D e b t ( ~ 6 . 67 5 % ) $2 6 $5 9 $9 2 $1 2 4 $1 5 7 $1 8 9 $2 2 2 $2 5 4 $2 8 6 $3 1 8 Ta x a b l e I n c o m e $4 8 $1 1 1 $1 7 3 $2 3 4 $2 9 6 $3 5 8 $4 2 0 $4 8 1 $5 4 2 $6 0 3 In c o m e T a x ( ~ 4 0 . 20 % ) $1 9 $4 5 $7 0 $9 4 $1 1 9 $1 4 4 $1 6 9 $1 9 3 $2 1 8 $2 4 2 Ne t I n c o m e $2 9 $6 6 $1 0 4 $1 4 0 $1 7 7 $2 1 4 $2 5 1 $2 8 7 $3 2 4 $3 6 1 In c o m e A v a i l a b l e F o r R e t u r n $5 5 $1 2 6 $1 9 5 $2 6 5 $3 3 4 $4 0 3 $4 7 3 $5 4 1 $6 1 0 $6 7 9 Re t u r n 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % Su p p o r t e d I n v e s t m e n t $6 5 6 50 5 33 9 $3 , 16 6 99 7 82 7 65 5 $6 , 4 7 6 30 1 $8 , 12 5 Re f u n d A m o u n t $3 0 0 $9 0 0 50 0 00 0 60 0 $3 , 20 0 $3 , 80 0 30 0 $4 , 90 0 $5 , 50 0 Attachment to Response to Production Request No. United Water Idaho Case No UWI-O7- Meter Installed Cost Basis: Meter Idaho state sales tax ~ 6% Shipping Meter Cost Installation Labor 3/4 hr. $20.44/hr Labor & Transp. O/H ~ 96% Installation Cost Sub-Total Construction Overheads ~ 8% Total Meter Cost Round to $ 55. $ 3. $ 15. $ 14. $ 59. $ 30. $ 89. $ 96. I $ 100.00 I United Water Idaho Attachment to Response to Production Request No. Case No. UWI-07 - Calculation of O&M Cost per Customer - 2005 Source document - 12/31/2005 Income Statement Total Total O&M Cost (incl. M&S)$19,498 782 Less:Depreciation Real Estate Taxes $ 5 812 203 $1,403,452 $ 7 215 655 Total Net O&M Cost $12 283 127 Customer Count 12/31/2004 Customer Count 12/31/2005 388 892 Average Customer Count 640 Average O&M cost per customer for 2005 158.21 I Un i t e d W a t e r I d a h o At t a c h m e n t t o R e s p o n s e t o P r o d u c t i o n R e q u e s t N o . Ca s e N o . U W I - W- O 7 - De p r e c i a t i o n E x p e n s e C a l c u l a t i o n Ac c o u n t 7 0 1 0 0 Ja n u a r y Fe b r u a r y Ma r c h Ap r i l Ma y Ju n e Ju l y Au g u s t Se p t e m b e r Oc t o b e r No v e m b e r De c e m b e r To t a l 20 0 5 A c t u a l Pl a n t I n S e r v i c e 23 5 62 0 06 9 23 5 62 0 06 9 23 5 62 0 , 06 8 24 7 40 7 , 4 0 1 24 6 84 0 97 5 24 7 76 4 98 8 24 7 88 4 80 6 26 4 37 8 87 4 26 3 82 9 , 12 9 26 7 , 73 8 37 4 27 0 78 0 , 17 5 26 9 , 32 6 35 9 PH F U 55 5 , 65 8 55 5 , 65 8 55 5 65 8 55 5 , 65 8 55 5 65 8 55 5 , 65 8 55 5 , 65 8 55 5 65 8 55 5 , 65 8 55 5 65 8 CI A C G r o s s (5 6 21 3 , 84 4 ) (5 6 57 8 , 57 2 ) (5 6 98 4 33 8 ) (5 7 , 08 0 88 1 ) (5 7 75 0 86 0 ) (5 7 , 98 0 91 4 ) (5 8 , 4 5 0 79 5 ) (5 8 72 5 , 01 9 ) (5 9 , 85 5 37 5 ) (6 0 48 7 84 5 ) (6 0 73 1 60 1 ) (6 0 15 2 , 00 9 ) Ad v a n c e s 53 3 35 5 ) (6 , 4 8 5 48 5 ) (6 , 4 6 8 07 5 ) (6 , 4 6 1 37 5 ) (6 , 4 2 9 , 4 1 4 ) 38 0 58 9 ) 33 1 25 9 ) 28 1 , 53 7 ) 28 1 53 7 ) 27 6 , 73 7 ) 27 6 , 73 7 ) 07 1 28 9 ) 12 M o n t h A v a Ne t D e p r e c i a b l e P l a n t 17 5 42 8 , 52 8 17 5 11 1 , 67 0 17 4 72 3 , 31 3 18 6 , 42 0 80 3 18 5 21 6 , 35 9 18 5 , 95 9 14 3 18 5 . 65 8 4 1 0 20 1 92 7 97 6 20 0 24 7 , 87 5 20 3 52 9 45 0 20 3 , 77 1 83 7 20 3 1 0 3 06 1 $ 1 9 0 09 1 53 5 Mo n t h l y E x p e n s e : De p r e c i a t i o n 57 2 26 2 57 2 26 3 (6 1 28 7 ) 50 9 , 30 2 59 0 78 1 50 4 , 83 1 41 5 53 0 54 6 63 2 51 4 01 3 49 5 , 25 7 54 4 77 6 56 5 25 3 76 9 , 61 3 Am o r t o f PH F U 25 9 25 9 25 9 25 9 25 9 25 9 25 9 25 9 25 9 25 9 59 0 To t a l M o n t h l y E x p e n s e 57 6 52 1 57 6 52 2 /5 7 0 2 8 1 $ 51 3 56 1 59 5 04 0 50 9 , 09 0 41 9 , 78 9 55 0 , 89 1 51 8 27 2 49 9 51 6 54 4 77 6 56 5 25 3 :! ! $ i ! : H ' ;'I ! ; lJ f 2 ; ;2 ! f ~ : Mo n t h l y D e p r R a t e A n n u a l i z e d 94 3 6 % 95 0 8 % -0 . 39 1 7 % 30 5 6 % 85 5 2 % 28 5 2 % 71 3 3 % 27 3 8 % 10 5 8 % 94 5 1 % 20 8 2 % 33 9 7 % ' " q : j: : , ! ! ! ~ j ! i $ i 6 ? ( ~ Ro u n d t o Ae p o ~ 1 0 : I S S U Z 3 0 5 La y o u t 1 0 : I S S U Z 3 0 5 Bu s i n e s s U n i t : 0 0 0 6 0 Pe ~ o d E n d l n o : D e c 3 1 , 2 0 0 5 Au n o n 0 2 / 1 2 / 0 7 a t 0 1 : 5 1 P M Wa t e r A e . e n u e Se w a R e A e . e n u e Olh e r A e . e n u e Ae . e n u e s 70 1 0 0 70 1 0 5 92 0 0 0 92 0 5 0 92 0 5 2 92 0 5 3 92 0 5 4 92 0 5 8 92 0 5 9 92 0 8 0 92 0 8 1 92 1 0 0 Pe r s o n n e l e x p e n s e s Wa t e r p u r c h a s e d En e r g y Ch e m i c a l s Su b c o n t r a c l o r s Pr o . l s l o n s :: : : : : : ! ~ r ! ~ ~ ! ! ~ ~ ~ ~ : ~ : : : t : : : : : : : j : : : : : : : : : :: : : : " Am o r t i z a t i o n o f d e f e r r e d e x p s Am o r t i z a t i o n o f A e l o c a t l o n E x p Am o ~ l z a t i o n o f T a n k P a i n t i n g Mis c a m o r t i z a t i o n Am o r t i z a t i o n o f O P E 9 C o s t s Am o ~ i z a t i o n o f l e g a l C o s t s Am o ~ l z a t i o n o f E S P / E A P c o s t s Am o r t i z a t i o n o f P o w e r C o s t s Am o ~ l z a t l o n o r g o o d w 1 l l De p r e c i a t i o n Ex p e n s e S y s t e m C l e a r i n g Ma t e r i a t Eq u i p m e n t r e n t a l Re n t s Ex p e n s e s t r a n s r e r r e d ( C r ) Tra n s p n c o s t . o t h e r Me a l s Mis c e l l a n e o u s e x p e n s e s S, l e s E x p e n s e ::: a . . f . j j ~ , ( : : : : : : : : : Of f i c e s u p p D e s Off i c e e q u i p m e n t r e n t a l Du e s & s u b s c r i p t i o n s Li c e n s e s a n d r e e s Te l e p h o n e Oth e r u t i l l l l e s . G& A Ad v e r i l s l n g Po s t a g e & a i r f r e i g h t Clu b a n d p r o f e s s i o n a l d u e s Tr a v e l e x p e n s e IT s u p p l i e s a n d e x p e n s e IT s y . ; t e m s u p p o ~ IT o f f s l l e s t o r a g e M& S b i n i n g Pr o p e r t Y I n s u r a n c e Ge n e r a l c o r p o r a t e I n s u r a n c e Re g u l a t o r y c o m m i s s i o n e x p e n s e Sta f f m t g s , c o n r s & s e m i n a r s Clo t h i n g & u n f f o r m s Co n t r i b u t i o n s Se v e r a n c e p l a n Sa r e t y e q u i p m e n t Oth e r m i s e G & A e x p e n s e s Olh e r c o s t s To t , l C o s t s p r e U W M & S Op e r a t i n g p r o f i t p r e U W M & S r e e s Co r p o r a t e M & S f e . . Re g u l a t e d M & S r e . . No n - r e g u l a l e d M & S f e e s UW M & S r e e s To t a l C o s t s p o s t U W M & S Op e r a t i n g p r o f i t p o s t U W M & S r o e s 50 0 1 5 50 3 0 0 50 3 1 0 50 8 0 0 50 8 3 0 50 8 4 5 50 8 5 0 50 8 5 5 50 6 7 5 70 2 0 0 90 1 0 0 90 1 1 0 90 1 5 0 90 2 0 0 90 2 5 0 90 3 0 0 90 4 1 0 90 4 5 0 90 5 0 0 90 8 0 0 90 7 0 0 90 7 5 0 90 9 0 0 91 0 5 0 91 4 0 0 91 4 5 0 91 9 0 0 92 1 5 0 92 2 0 0 92 4 0 0 92 4 5 0 92 5 5 0 92 8 0 0 .. . . ... . . . ... . .. . . . . . . . . 90 9 5 0 90 8 5 1 90 8 5 2 Oth e r f i n , n e l a l i n c o m e & e x p e n Ye a r to Da t e . F e v o " . ' e (U n r e v o " . ' e ) ., , / e n ' . . "" " " S E E 'r I . e / . . x . _v , e- . e.. . . . v, - . -y , .. . . . 29 , 65 3 32 , 61 6 29 , 56 2 32 4 0 % (2 , 44 1 ) (0 1 % 12 , 38 3 ) (0 1 % 59 4 0 ' 13 5 79 3 11 0 0 % 84 8 84 5 98 4 29 , 9B 8 35 , 41 1 30 , 99 2 33 4 1 % OB 9 02 8 37 0 10 0 2 % 49 3 10 % 39 5 8 % 0 % 18 9 ) 19 1 ) % 4 V , (2 5 ) (1 5 ) % 1 % 11 0 9 ) (8 ) % 48 9 25 % 48 2 25 % 15 8 1 (4 ) % (7 6 ) 12 8 1 % 6 % 3 % 19 0 ) 12 8 ) % (1 8 0 ) 11 8 ) % (1 5 2 ) (1 5 1 V , 11 2 5 ) (1 2 ) 11 4 5 ) 11 2 1 % 28 % 28 % 26 o k (5 1 (5 ) % (4 0 3 ) (8 ) % 40 5 7 % 55 9 9 % 40 5 7 % 18 % (3 8 ) (3 3 8 ) % (3 8 ) (3 3 8 ) % (1 7 ) (3 8 ) % (2 5 ) 40 % 40 % (0 ) (0 ) % 57 9 10 0 % 57 9 10 0 % (7 3 ) (7 3 ) (7 3 ) (4 9 ) (8 8 ) % (4 ) (4 ) (4 ) 0 % (1 ) (1 ) (1 ) (1 ) (1 0 0 ) % (4 1 ) (4 1 ) (4 1 ) (0 ) (0 ) % (1 0 1 ) (1 0 1 ) (1 0 1 ) (1 3 ) (1 3 ) % (2 0 9 ) (2 0 9 ) (2 0 9 ) (5 ) (2 ) % (0 ) (2 ) % (0 ) (2 ) % (0 ) (2 ) % (0 ) (0 ) % (8 4 3 ) (1 6 ) % 54 0 8 V o 89 2 10 % 32 1 5 % (0 ) (1 0 0 ) % 10 0 % 22 % 17 % 18 % (3 7 ) (2 5 ) % (0 ) (1 5 ) % (1 ) (1 ) (1 ) (1 0 0 ) % 47 % (1 ) ( 1 10 0 ) % (0 ) (4 2 ) % (5 7 9 ) (1 0 0 ) % (5 7 8 ) (1 0 0 ) % (2 3 ) (8 ) % 10 % 10 % 10 % 28 % (2 ) (4 8 ) % (2 ) (5 8 ) % (1 ) (1 3 ) % 8 % 18 3 81 % 18 0 81 % 20 % 10 0 % 15 7 10 % 11 0 7 % 11 0 7 % (1 ) (0 ) % (4 ) (9 ) % 10 % 10 % 11 % (1 ) (8 ) % (1 5 ) (1 5 ) (7 ) (4 8 ) % 91 % 23 % 11 % 43 % (1 ) (1 ) (1 ) (1 ) (7 4 ) % (2 8 ) (1 7 ) % 2 % (8 ) (5 ) % 0 % (2 ) (1 0 ) % 1 % 3 % (2 ) (9 ) % (3 2 ) (2 4 1 ) % (4 5 ) (4 5 ) (4 1 ) (9 2 ) % (2 4 ) (1 3 ) % 12 % 18 % 10 % (2 4 ) (4 3 ) % (7 ) (1 0 ) % (9 ) (1 3 ) % (7 ) (9 ) % (1 ) (3 ) % (2 1 ) (3 5 1 ) % (2 0 ) (3 4 8 ) % (9 ) (2 9 ) % (1 9 ) (7 2 ) % 18 % 14 % (1 0 ) (2 3 ) % (8 ) (1 3 0 ) % (8 ) (3 3 7 ) % (8 ) (3 3 7 ) % (1 ) (1 1 ) % 10 0 % (0 ) (0 ) (0 ) 13 % (0 ) (0 ) % (0 ) (0 ) % (0 ) (0 ) % 16 % 48 4 53 % 48 4 53 % (2 4 ) (6 ) % (3 ) (5 ) % (4 ) (8 ) % (4 ) (8 ) % (2 ) (3 ) % (2 ) (7 ) % 62 % 82 % 10 2 % (2 ) ( 1 13 5 ) % (2 ) (2 ) (2 ) (1 0 0 ) % (1 1 ) (2 1 8 ) % (1 0 ) (1 7 4 ) % (1 1 ) (1 9 9 ) % 3 % (4 ) (1 0 3 ) % (2 ) (2 5 ) % (2 ) (4 2 ) % (0 ) (0 ) % 4 % (5 7 ) (5 7 2 ) % (4 9 ) (2 8 5 ) % (1 0 ) (1 4 ) % 18 8 5 % 17 4 5 % 18 8 5 % (3 7 1 11 1 % 87 3 58 0 8 % 1, 8 8 % 83 9 49 9 41 7 37 9 53 0 0 % 0 % 0 % 0 % (5 1 3 ) (0 ) % (2 8 ) (0 ) % (2 8 ) (0 ) % (1 ) (0 ) % 0 % (1 1 ) (0 ) % (1 1 ) (0 ) % (5 ) (0 ) % 1 % 2 V . 1 % 2 % 95 1 62 1 8 % 63 0 8 % 0 % 81 7 48 8 39 8 34 4 18 7 7 ) (2 0 ) % 15 3 2 ) 11 5 ) % (7 8 5 1 12 3 1 % 10 8 3 % CU r r e n t Mo n t h . 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' k (9 7 5 ) 19 7 5 ) 47 6 0 31 5 3 0 8 3 64 0 8 48 6 4 11 6 0 7 34 i " 13 2 5 5 51 ' ' 1 0 13 4 4 7 15 2 % 11 7 1 1 15 4 1 % UNITED WATER IDAHO INC.Name: Attachment to Response to Production Request No, 3 UWI-W-O7- Customer Statistics.DQ 1 SYSTEM ENGINEERING DATA (continued) For Year Ended: December 31 2005 See attached Pipe Size Metered: Residential Commercial Industrial Flat Rate: Residential Commercial Industrial Private Fire Protection: Public Fire Protection: Street Sprinkling (included in other) Municipal, Other Other Water TOTALS (Add lines 2 through 8) FEET OF MAINS In Use Beginning of Year Installed During Year Abandoned During Year In Use End of Year CUSTOMER STATISTICS Number of Customers Thousands of Gallons Sold This Last This Last Year Year Year Year 69,243 66,971 043,730 562,757 154 098 840,969 086,842 370 194 125 125 73,219 86,200 761 28,646 78,892 76,388 13,989,679 764,445 Page 12 UNITED WATER IDAHO INC. CASE UWI-O7- FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer and Company Witness: Gregory P. Wyatt REQUEST NO. What is the estimated maximum operating capacity (gpm) of the 16-inch transmission main? RESPONSE NO. The estimated operating capacity of the 16-inch transmission main is 2 000 gallons per minute (gpm). The booster station is being equipped with 3 - 1 000 gpm pumps , of which two will normally operate and one is for DEQ required redundancy. UNITED WA TERIDAHO INC. CASE UWI-O7- FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer and Company Witness: Gregory P. Wyatt REQUEST NO. In Mr. Wyatt's testimony, page 6 , lines 18 and 19, four previous special facilities agreements executed by United Water are mentioned. For each of these agreements please provide the following: a) the Special Facilities agreement b) contributed costs by facility, c) advanced costs by facility, d) total facilities costs e) the amount of advanced costs refunded to date f) the contract beginning date and ending date. RESPONSE NO. a) Copies of the four referenced agreements are enclosed with this response. Parts (b) through (f) are contained on the attached worksheet identified as Attachment to Response to Production Request No. After further investigation I have determined that the Claremont Reservoir (Jayo) Special Facilities Agreement referred to in my testimony, page 6, line 19 does not have any advanced supply or transmission main associated with it. AU a c h m e n t t o R e s ~ o n s e t o P r o d u c t i o n R e g u e s t N o . Un i t e d W a t e r I d a h o Ca s e N o . 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Gr a n d T o t a l 44 , 40 8 55 5 10 3 88 , 81 6 51 . 81 0 74 0 13 7 26 2 , 42 4 56 8 , 68 5 28 6 05 5 47 1 , 26 8 40 2 79 0 24 4 03 8 46 6 77 8 , 60 4 72 4 54 2 WATER INFRASTRUCTURE EXTENSION AND CONSTRUCTION COST REFUND AGREEMENT This Water Infrastructure Extension and Construction Cost Refund Agreement ("Agreement") is entered into this 3 O"'~ay of April, 1998 by and between Hidden Springs Community, LLC ("Hidden Springs ) with offices at 118 South Fifth Street, Boise , Idaho, and United Water Idaho Inc. ("United") with offices at 8248 W. Victory Road, Boise, Idaho. WITNESSETH WHEREAS, Hidden Springs is the owner of certain real property located in Ada County, Idaho and is in the process of constructing the development known as Hidden Springs; and WHEREAS, in conjunction with said development, Hidden Springs will construct the necessary and appropriate water system infrastructure to meet the water needs of the development; and WHEREAS , among other things , Hidden Springs and United have agreed upon the criteria and specifications pursuant to which said infrastructure will be built and the terms and conditions upon which United will assume ownership, operation and maintenance of that infrastructure and upon terms and conditions pursuant to which United will refund to Hidden Springs a portion of the cost incurred to construct said infrastructure. NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows: I. WATER FACILITIES 1).The water system infrastructure included within the scope of this Agreement will generally include four components, the first being a transmission component made up of facilities including, but not limited to , an off-site main. The second component is made up of facilities including, but not limited to pumping and storage related facilities. The third component is anonsite transmission line which connects the Seaman Reservoir with the Upper Slopes Reservoir. The fourth component is a distribution component made up of facilities including, but not limited to, mains, services, meters and related facilities which will be constructed wholly within the Hidden Springs Zone. The four components of the water system infrastructure shall be collectively referred to herein as the "Water Facilities." For the purposes of this Agreement, the "Hidden Springs Zone" shall be deemed to constitute the geographic area identified as such on Exhibit A attached hereto and incorporated herein by reference. 2).Subject to the provisions of Article 1(3) below, Hidden Springs shall have responsibility for the design, construction, and inspection of the Water Facilities to be installed pursuant to the terms of this Agreement. Such responsibility shall include, but not be limited to , all engineering, design, bidding, construction and inspection activities, as well as obtaining all necessary permits approvals and rights-of-way. The cost responsibility for said Water Facilities shall be as set forth in Articles 1(9) and (10) below; provided, however, that United shall provide, at no cost to Hidden Springs, such supplies of water as may be required for Hidden Springs to flush and disinfect the Water Facilities prior to such facilities being placed in service 3).Within five (5) days after the execution of this Agreement, United shall identify and submit to Hidden Springs all necessary and reasonable written design standards, criteria and specifications relative to providing water utility service within the Hidden Springs development utilizing the Water Facilities. Hidden Springs shall utilize such standards, criteria and specifications in the design, engineering, construction and inspection of the Water Facilities; provided however, that Hidden Springs may make reasonable deviations therefrom with the prior written approval of United, which approval shall not be unreasonably withheld and shall be timely given, and; provided further, that Hidden Springs shall not be required to incorporate any changes necessary for the sole purpose of providing water utility service to customers outside the Hidden Springs Zone. 4).Copies of all relevant plans and engineering drawings shall be made available to United, and United shall review, approve, or request reasonable revisions to such plans and engineering drawings prior to the construction of the Water Facilities. Such review and approval or communication of requested revisions by United shall be completed and submitted to Hidden Springs within ten (10) working days after receipt of such plans and engineering drawings from Hidden Springs. United's approval or communication of requested revisions shall be submitted by United in writing and shall include a detailed explanation of and justification for any requests by United that revisions be made to such plans or engineering drawings. United shall likewise review and approve "as built" drawings of the Water Facilities subsequent to construction thereof to ensure that said facilities have been constructed pursuant to the design criteria articulated by United pursuant to the terms of this Agreement. Hidden Springs shall incorporate all necessary and reasonable revisions requested by United. United shall retain the right to inspect the Water Facilities at any stage of the construction. 5).The parties acknowledge and agree that the Water Facilities constructed hereunder will, in all likelihood, be constructed in phases, the timing of which shall be within the sole discretion of Hidden Springs. The construction shall be completed by a contractor approved by United to provide "labor-in-lieu of cash, which approval shall not be unreasonably withheld and shall be timely given. Upon completion of a phase(s) of construction, Hidden Springs shall advise United that such phase(s) has/have been completed, whereupon United shall have ten (10) working days within which to review the relevant drawings and plans and to assure that the facilities have been inspected and tested. The construction shall not be considered complete until Hidden Springs presents documentation that the facilities have passed a hydrostatic pressure and leakage test in compliance with A WW A Standard C600 and have been disinfected in accordance with A WW A Standard B350. Notice By Hidden Springs to United that each phase(s) has/have been completed shall include "as built" drawings of the actual facilities constructed. The "as built" drawings shall be signed and sealed by a professional engineer registered in the State of Idaho attesting that the construction complies with the design plans and specifications agreed to as part this Agreement. Within this ten (10) working day time period, United shall indicate in writing to Hidden Springs, United's acceptance or rejection of the facilities, it being agreed that United Shall not be entitled to reject such facilities except to the extent same shall fail to meet the construction requirements set forth in this Agreement and Hidden Springs shall have failed to correct any sucp. deficiencies. In the event United should reject any facilities pursuant to t~e terms hereof, United shall provide a detailed written explanation of and j~stific~tion for its rejection of the facilities. In the event a dispute arises regarqmg any such rejection by United, it shall be resolved pursuant to the dispute r~~olution provisions set forth in Article 11(7) of this Agreement, it being specifically acknowledged and agreed by the parties that a fundamental part of this Agreement is to have United assume ownership of the Water Facilities. Upon receipt of United's writtep ~cceptance of the facilities involved, Hidden Springs shall convey and United shall accept all right, title and interest in and to the facilities constructed by Hidden Springs, as well as all necessary permits and licenses obtained by Hidden Springs. Hidden Springs acknowledges that the Water Facilities will be used to provide long-term potable water utility service to the public and that therefore they will be constructed pursuant to a standard of care consistent with that utilized by United in the construction of its facilities used in the provision of water utility service. The Water Facilities conveyed to United hereunder shall be conveyed subject to a two (2) year warranty for all material and workmanship; provided, however, that Hidden Springs shall not and does not hereby make any warranties regarding the extent to which such facilities will operate and perform to the design specifications and standards articulated by United. Hidden Springs shall transfer and assign all warranties obtained from contractors performing work on the Water Facilities. Conveyance of the facilities shall include bills of sale , warranty deeds, and all necessary easements within the Hidden Springs development for ingress and egress. In addition, subsequent to the conveyance of the facilities, Hidden Springs shall provide United with a description of the costs incurred to construct the Water Facilities. Such description shall be sufficiently detailed so as to allow United to classify the costs pursuant to the Idaho Public Utilities Commission s Uniform System otAccounts. 6).Upon conveyance by Hidden Springs of the Water Facilities as described in Article 1(5) of this Agreement, United shall be solely responsible for ownership, management, and operation subject to the warranties contained in Article 1(5) above. The parties agree that said Water Facilities and associated permits and licenses shall be managed and operated by United in a manner which is comparable to and consistent with United's management and operation of its other water utility facilities within the State of Idaho which are subject to the jurisdiction of the Idaho Public Utilities Commission. The parties further acknowledge that United shall serve all residential, commercial and industrial customers located within the Hidden Springs Zone as a public utility, subject to the jurisdiction of the Commission. No service will be provided to any residential commercial, or industrial customer before the facilities necessary to provide service have been conveyed pursuant to Article 1(5) of this Agreement. 7).United will charge its current tariff rates to customers connecting to its facilities, rates which may be amended from time to time by the Idaho Public Utilities Commission. During the term of this Agreement , United agrees that it will not propose any filing with the Commission, or any other authority having jurisdiction, which would result in discriminatory rates for water utility service from United to residential, commercial or industrial customers receiving water utility service within the Hidden Springs Zone when compared to United's rates for similar classes of service relative to water utility service from United within the City of Boise , Idaho. In the event that such a filing is made by another United agrees that it will vigorously oppose any such filing. 8).The parties agree that, during the term hereof, United shall not charge any connection fee, tap fee or any similar fee or charge to residential commercial or industrial customers receiving water utility service from United within the Hidden Springs Zone other than those authorized by the Idaho Public Utilities Commission. 9).Hidden Springs shall advance the cost to design, engineer, construct and inspect all Water Facilities. The parties agree, however, that Hidden Springs shall receive an initial one-time refund in the amount of four hundred fifty dollars ($450.00) for each original customer connection initiating water utility service within the Hidden Springs Zone. In addition, on a one-time basis, United shall refund to Hidden Springs an additional refund amount per customer, which amount shall be determined in accordance with the formula set forth in Exhibit B attached hereto and incorporated herein by reference. If the total actual annual revenue received by United attributable to serving the subject customer (as determined in accordance with Exhibit B) is less than three hundred thirty-five dollars ($335.00) per year, a downward adjustment will be made to the refund amount, such adjustment to be deducted from refunds due to Hidden Springs except during the last phase of the development at which time an adjustment will be made in the initial refund based upon the revenue received from similar customers in other phases of the development. If the total actual annual revenue received by United attributable to serving the subject customer is equal to or greater than three hundred thirty-five dollars ($335.00), an additional refund will be made. Initial refund amounts shall be remitted to Hidden Springs on or before the last day of each calendar month for service connections made during the previous calendar month. Additional refund amounts shall be remitted to Hidden Springs by United twice each calendar year during the months of March and October. 10).During the term of this Agreement, Hidden Springs shall be deemed by the parties hereto to be entitled to payments as defined below related to any additional connections (excluding those made to provide service to customers within the Hidden Springs development) made to the Water Facilities at any point located between the Hidden Hollow Reservoir and the Upper Slopes Reservoir as shown on Exhibit A. United agrees that it shall collect the "Contributed Cost of Off-site Mains" from all such applicant(s) for service for which the service lateral (including laterals to a fire hydrant(s)) will be directly connected to said off-site main extension within ten (10) years of the date of installation of that main. United shall require that any such applicant(s) shall deposit with United an amount equal to one half the cost per front foot of the main extension times the applicant's total front footage. The cost per front foot shall be the actual cost of the off-site main extension divided by the total serviceable footage. Amounts due to Hidden Springs pursuant to this Article I (10) shall be paid to Hidden Springs without interest within thirty (30) days of such customers' application for service from United. In no event shall Hidden Springs be required to pay the Contributed Cost of Off-site Mains" (or any connection fee , tap fee or any other similar fee or charge), should it later request water service from United from facilities interconnected with the Water Facilities, whether or not such interconnection is within the Hidden Springs Zone. II. GENERAL MATTERS 1).The term of this agreement shall be for twenty (20) years from the date hereof. 2).The parties agree to use their best efforts to obtain all necessary authorizations and approvals, including Idaho Public Utilities Commission approval, which may be necessary in order to implement and carry out the agreements contained herein. 3).Within ten (l0) working days after the execution of this Agreement by the parties, Hidden Springs agrees that it shall make such filings with the Idaho Public Utilities Commission as may be necessary so as to withdraw Hidden Springs' CPCN Application pending in consolidated Case Nos. GNR-97-2 and UWI - W -97 - 3; provided, however, that such withdrawal shall not be required in the event this Agreement is not approved by the Commission in its entirety, or if any modifications made by the Commission are unacceptable to Hidden Springs. 4).Hidden Springs acknowledges that United's construction overheads are a part of the overall construction cost and that the amount of the refunds in paragraph 1(9) have been reduced to the extent necessary to cover the overhead cost and no additional dollars are due from Hidden Springs as payment of overheads. 5).This Agreement constitutes the sole agreement between the parties concerning the subject matter hereof and all prior negotiations, representations understandings or agreements between the parties concerning the subject matter hereof are hereby canceled. This Agreement shall not be amended or modified except as may be agreed to in writing by the parties. 6).Except as may be undertaken to accomplish a corporate reorganization, this Agreement shall not be assigned or otherwise transferred or conveyed by any party hereto without the prior written consent of the other party, which consent shall not be unreasonably withheld; provided, however, that Hidden Springs shall be authorized, without consent, to transfer or assign its rights under this Agreement to one or more of the original partners or members of Hidden Springs. Upon any permitted assignment or transfer, this Agreement shall then be binding upon and inure to the benefit of the successors and assigns of Hidden Springs and the successors and assigns of United, as the case may be. 7).In the event of a dispute among the parties regarding its rights and obligations under this Agreement, such dispute shall, as the exclusive remedy of the parties, be submitted to binding arbitration in the City of Boise , Idaho under the Commercial Rules of the American Arbitration Association. The arbitration shall be before three (3) arbitrators who are civil engineers licensed in the State of Idaho. Each party shall select a single neutral arbitrator and the two selected neutral arbitrators shall select and agree upon a third neutral arbitrator. In the event that the two neutral arbitrators selected by the parties are unable to select and agree upon a third neutral arbitrator, either party may apply to any federal or state court of competent jurisdiction for appointment of a third neutral arbitrator. Any arbitration award must be in writing, and must contain the Findings of Fact and Conclusions of Law upon which the arbitrators relied in making the decision. The parties shall divide equally the cost of the arbitrators and the hearing and each party shall be responsible for its own expenses and those of its counsel and representatives. The results of the arbitration shall be final and binding upon the parties and judgment on the award may be entered in any court having jurisdiction thereof. In rendering the decision and award the arbitrators shall determine the rights and obligations of the parties according to the substantive and procedural laws of the State of Idaho. The arbitrators shall have no authority to award indirect , special, punitive, incidental, or consequential damages or any other damages not measured by the prevailing party s actual damages and may not , in any event, make any ruling, finding or award that does not conform to the terms and conditions of this Agreement. 8).Both parties shall designate from time to time in writing, a representative for Hidden Springs and United who will be the person to whom notices and communications regarding the subject matter of this Agreement shall sent. Notices and communications shall be in writing and forwarded by certified mail or hand delivered to the persons designated by the parties. Until changed persons to whom all notices and communications shall be sent are: For Hidden Springs: Frank Martin 118 South Fifth Street Boise, Idaho 83702 For United: William C. Linam 8248 W. Victory Road Boise , Idaho 83709 9).This Agreement shall be governed by the laws of the State of Idaho. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorized officers as of the date first above written. ATTEST:HIDDEN SPRINGS e"lt-r- COMMUNITY , L fl(j By: )f(~\ ranklin A. Martin --I ! \ -1\ :!J\~) M'( ATTEST:UNITED WATER IDAHO INc. By: ~~J,-~v~ William C. Linam Hidden Springs Community LLC Legend Transmission Line Scale:'" II 6000' Reservoir Booster Pumping Station ROAD ROAD Map produced by Spatial Dynamics EXHIBIT B Additional Refund Amount Equation: A= 3.8x(R-335) Where: A equals the one-time refund adjustment amount in dollars. R equals the average annual revenue received by United from the customer for water utility service as determined by using the most recent twelve months of billing data after the customer which is the subject of the calculation, has received permanent water utility service from United for a period of eighteen (18) consecutive billing periods, or longer. BACKBONE PLANT AGREEMEl'IT CE.A. No.COOC902 COOC901 AGREEMENT between UNITED WATER IDAHO INC., an Idaho Corporation having its principle place of business at 8248 W. Victory Road, Boise Idaho hereinafter called the Company" and HARRISIBRIGHTON, LLC, an Idaho limited liability company hereinafter called the "Applicant" RECITALS WHEREAS Applicant is the owner of certain real property located in Ada County, Idaho and is in the process of constructing thereon a residential subdivision development known as Harris Ranch (Harris Ranch) and; WHEREAS Applicant has requested that the Company extend its water system to provide domestic, commercial and fIfe protection service to Harris Ranch and; WHEREAS in order to provide safe and reliable water service to Harris Ranch it will be necessary for the Company to construct a 1 000 gpm booster station, a 355 000 gallon storage reservoir and a 12-inch water supply line 1 700 feet in length with associated overflow and drainline, controls and telemetry equipments ("the Facilities ) and; WHEREAS the total estimated cost of the Facilities is SIX HUNDRED FIFrY SEVEN THOUSAND EIGHT HUNDRED AND NINETY FOUR DOLLARS ($657 894), as estimated and shown on Exhibit A, attached hereto and; WHEREAS the facilities will enable the Company to provide service to 996 customers within Harris Ranch and will enable the Company to provide service to approximately 500 additional customers within the general vicinity of Harris Ranch WHEREAS the Company plans to construct the Facilities in two phases. Phase One will consist of the construction of a 1 ,OOO-gpm booster station and Phase Two will include the construction of the 355 000 gallon reservoir and 1 700 feet of 12- inch water supply line and appurtenances. BACKBONE PLANT AGREEMENT - 1 WHEREAS the planned construction schedule for the Facilities is listed below: Project Start Date In-Service Phase 1 Booster Station October, 2000 November, 2000 Phase 2 Reservoir Supply Line Winter, 2001 Winter, 2001 Spring, 2001 Spring, 2001 And WHEREAS , the Company is willing to make such extension upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, the sufficiency of which is hereby acknowledged, THE PARTIES HERETO AGREE AS FOLLOWS: 1. The Applicant hereby applies to the Company for the said extension of its system, and the Company agrees to construct the said extension upon the terms and conditions hereinafter set forth and in accordance with its Rules and Regulations. 2. The Applicant shall advance to the company an amount equal to the estimated cost of installing the Facilities less the cost of reservoir over-sizing, which will serve customers not included within the Harris Ranch development. (a) The advance for Phase 1 , facilities will be $112 681 , which consists of the estimated cost of the booster station, as shown on Exhibit A, attached hereto. (b) The advance for Phase 2, will be $425 849, which consists of the estimated cost of the supply main and reservoir minus the cost associated with the Company s over-sizing of the reservoir, as shown on Exhibit A , attached hereto. (c) The applicant will advance to the Company the said advanced amount according to the schedule as shown below. (d) The cost estimate includes company overhead and supervision , engineering, accounting, legal expenses and the cost of obtaining any necessary governmental permits. (e) Any difference between the actual as-built cost and the amount advanced shall be shown as a revision of the amount of advance and shall be payable within thiny (30) days of submission. The actual cost thus fmally determined shall be referred to as the Advanced Cost of the backbone plant water facilities. If it is necessary to adjust the amount of The Applicant's advance in accordance with the terms of this paragraph , a supplemental BACKBONE PLANT AGREEMENT - 2 memorandum will be prepared setting forth the Advanced Cost of The Facilities and shall be attached hereto and made a part hereof. Applicant Schedule for Advances for Backbone Plant Water Facilities Advance Phase 1 Advance Phase 2 Advance Advanced Amount $112 681 $43 000 (Engineering) $382 849( Construction) Advance Due (no later than) October 27 , 2000 - October 27 , 200D'1~ March 01 , 20013. (a) The cost of the Facilities advanced, or a portion thereof, shall be refunded by Company to Applicant in accordance with the provisions of this paragraph. (b) Upon completion of the construction of Facilities to be constructed Phase I , Applicant shall receive a Phase I Payment and upon completion of the construction of Facilities to be constructed in Phase 2, Applicant shall receive a Phase 2 Payment. Thereafter, Applicant shall receive quarterly payments during the term of this Agreement. (c) The Phase I Payment shall be based on the number of customers actively taking service in the area of development eligible for refund as described in paragraph 4 of this agreement times the Estimated Refund per customer. The Estimated Refund per customer is determined by the summation of the estimated cost of Phase I plus the estimated cost of Phase 2, minus the estimated Company over-sizing; divided by 996 customers. The Estimated Refund per customer is $634 as calculated and shown in Exhibit A (equation A-I), as part of Exhibit A, attached hereto. The Phase I Payment shall be paid within 30 days after the Phase I facilities have been placed in service. (d) Upon final construction of Phase 2, and fmal accounting has been completed, the Company will evaluate final project costs and will adjust the Estimated Refund per customer to the Actual Refund per customer connected as shown in Exhibit , (equation A-2). The Phase 2 Payment will be established using the actual Advanced Cost of the Facilities constructed. Payment of the Phase 2 Payment will be made within 30 days after the final accounting. (e) Thereafter, for the term of this Agreement, or until 996 customers in areas of development eligible for refund have been connected, which ever occurs first, the Company shall make quarterly payments to Applicant. The formula for determining the amount of quarterly payments shall be the same as used to determine the Phase 2 Payment, taking into account the number of customers added in areas of development eligible for refund since the preceding payment. (f) The total refund amount shall not exceed the total Advanced Cost of The Facilities. (g) Refunds shall be paid according to the following schedule: BACKBONE PLANT AGREEMENT - 3 Refund Schedule Phase 1 Payment Phase 2 Payment Quarterly Payments Date 30 days after Phase 1. (In-service) 30 days after final construction accounting March 31 June 30 September 29,December 29 Period One Time One Time Sept. 29, 2001 - End 4. It is expressly understood and agreed that the Company will refund only for advances made pursuant to this Agreement by Applicant and for those customers that can be served by the said reservoir through gravity flow. New customers located at a higher pressure zone, above 2 880 feet, or those that are not hydraulically connected to the said reservoir will not be considered for refund as part of this Agreement. The areas of development that will be eligible for customer refund are shown on Exhibit B , " Harris Ranch Development Plan attached hereto. It is further understood that any additional water facilities required to serve Harris Ranch customers which cannot be served by the Facilities covered under this agreement, will be constructed and funded under United Water Idaho , Rules and Regulations Governing Water Main Extensions and considered as Special facilities. 5. The Company will use its best efforts to commence and carry to completion as soon as possible the installation of said extension, but will not be responsible for delays which may occasioned by weather, acts of God or the public enemy, strikes or other matters not within its control. 6. It is further understood and agreed by and between the parties hereto that the Company s agreement to construct the said extension is subject to the Company obtaining all necessary consents, orders, permits and approvals of public officers or public bodies having jurisdiction over or lawful interest in any of the subject matters herein. In the event that the Company, after prompt application and diligent effort, is unable to obtain any necessary consent, order, permit or approval as aforesaid, or in the event that the Company is enjoined or prevented by lawful action of any such public officer or official body from constructing the said extension, the Company s sole obligation will be to repay the Applicant the amount advanced and estimated expenses incurred by the Company in conjunction with the booster station, water storage reservoir, main extension and appurtenances which are the subject of this Agreement. 7. It is further mutually understood and agreed that the booster station, water storage reservoir , supply main and appurtenances within the limits of the street , avenues roads , ways or easement areas , whether or not attached to or serving customers but constructed as part of the extension shall be and remain the property of the Company, its successors and assigns. The Company shall have the right to extend any main installed by it pursuant to the tenus of this Agreement in or to other lands , streets , or avenues. 8. It is agreed and mutually understood that the terms of this agreement, are subject to approval by the Idaho Public Utilities Commission and the parties agree to use their best mutual efforts to obtain said approval. If there is any portion of such ruling by the Commission that, in either the Company s or Applicant's discretion , is substantially BACKBONE PLANT AGREEMENT - 4 inconsistent with this Agreement the parties , or a party, may, within five (5) business days after receipt of such Commission ruling, provide the other party with written notice that this Agreement is null and void , and the parties shall have no further obligations or liabilities hereunder. If neither party provides such notice in the time permitted, the parties agree to amend this Agreement, within thirty (30) days of both parties ' receipt of such ruling by the Commission, to the effect that this Agreement, shall be made consistent with the Commission ruling. 9. In the event of a dispute among the parties regarding its rights and obligations under this Agreement, such dispute shall , as the exclusive remedy of the parties, be submitted to binding arbitration in the City of Boise, Idaho , under the commercial Rules of the American Arbitration Association. The arbitration shall be before three (3) arbitrators who are civil engineers licensed in the State of Idaho. Each party shall select a single neutral arbitrator and the two selected neutral arbitrators shall select and agree upon a third neutral arbitrator. In the event that the two neutral arbitrators selected by the parties are unable to select and agree upon a third neutral arbitrator, either party may apply to any federal or state court of competent jurisdiction for appointment of a third neutral arbitrator. Any arbitration award must be in writing, and must contain the Findings of Fact and Conclusions of Law upon which the arbitrators relied in making the decision. The parties shall divide equally the cost of the arbitrators and the hearing and each party shall be responsible for its own expenses and those of its counsel and representatives. The results of the arbitration shall be final and binding upon the parties and judgment on the award may be entered in any court having jurisdiction thereof. In rendering the decision and award the arbitrators shall determine the rights and obligations of the parties according to the substantive and procedural laws of the State of Idaho. The arbitrators shall have no authority to award indirect, special , punitive , incidental or consequential damages or any other damages not measured by the prevailing party s actual damages and may not, in any event, make any ruling, rIDding or award that does not conform to the terms and conditions of this Agreement. BACKBONE PLANT A GREEMENT - 5 10.The tenD of this agreement shall be for fifteen (15) years from the date hereof. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their duly authorized officers this f!lIfL day of 2000. UNITED WATER IDAHO INC. By -'" ~!JA j Benjamin . Hepler Vice President A :\SPECF ACAGRvjm J09-final.doc BACKBONE PLANT AGREEMENT - 6 HARRIS RANCH: HARRIS/BRIGHTON, LLC, an Idaho limited liability company By: Brighton Corporation, an Idaho Corporation : ;: David W. Turnbull, President By: Harris Family Ranch, LLP, an Idaho limited liability partnership, its managing member By:J ;I~~;/(141'-;J ~~.ALi1Ift pi-~ Felicia arris Burkhalter , Managing Partner HARRIS RANGI BACKBONE PLANT REOUIREMENTS EXIllBIT A ConslnKbon Harris Ranch Total Cost PHASE 1. Boostn Pum"in.. Siabon Building ConslnKbon Mechanical Piping 16,756 Pumps/Motors 147 Communication Equipmenl 14,070 Land and Site Work Electrical 30.000 Transmission and Distribution 000 Legal/Con tracts/ Conve\' a nee 000 UWID Labor 21.035 BoostnTotal 95,007 PHASE 1 - Advance Booster Facility 95,007 0&C~10"9.501 UWID OVERHEAD 1n.173 PHASE 1- TOTAL 112,681 30,000 30,000 60,000 S 155,007 PHASE 2 - Transmission Main.R."uvoir Transmission Mai" Reservoir Land 355,000 Gallon Reservoir ~1.OS/Gallon Reservoir Tolal 85,000 950 86,950 86,950 40,000 372.750 372.750 40,000 412.750 Inspection Main Total PHASE 2 -12" Main. Reservoir Cnsls 12" Transmission Main 86,950 Concrete Reservoir 372.750 O&C~10"45,970 UWID ~.39,543 PHASE 2 - TOTAL 545.213 COMPANY OVERSIZING UWID Oversizing 027" 01 Reservoir 119.364 HDris ilaDch - Nd Cost 425.&49 TOTAL PROJECT COST (PHASE l,PHASE 2)657.s~(A+B) PHASE 1 - Advance A,'ailable for Return Phase 1 - Advance 112.681 Harris Ranch - Building. Land 60,000 PHASE 1- RETURN TOTAL 172.681 REFUND PROGRAM Advanced Plant Available lor Refand Phase 1 172.681 Phase 2 46S.lH9 Total PlaPt Availa"'elor Refund 638.530 PHASE 2 - Advance Available for Return Phase 2 - Advance PHASE2- RETURN TOTAL 425.IH9 40.000 465,849 Harris Ranch. Reservoir Site Per Castomer Refund: Harris Ranch Cuslom~ Served Refund pel' New Customer 996 641 " . Refund Variables: IR = Estimated Refund Per ustomer AR = Actual Refund Per Customer PHl - Phase 1 Costs PH2 . Phase 2 Costs OS- UWIDOver-Sizing HR. Total Potential Customers to Connect=996 HRTD = Harris Ranch Customers to Date RFTD= Refund To Date HARRIS RANCH BACKBONE PLANT REOUIREMENTS EXHIBIT A Refund Eouations: 2.. IR = (PH1..PHr-OSVHR. (A+B-CyJ96 AR = (PHlu+PH2"-OS-RFTDV(HR-HRTD) . Denot.. osti...ated costs .. Donol.. actual costs ~""'-'- Wtfh~if~ , ':'-~ 50 Broadway A venue, Suite B Boise, ID 83702 (208) 344-3448 fax (208) 344-3922 mike~harris-ranch.com RECEIVED MAR 2 8 2001 UNITED WATER March 26, 2001 To:Dan Brown From: Mike Wardle RE:Amendment to Backbone Plant Agreement Attached herewith is an executed original Amendment to Backbone Plant Agreement. I have kept one copy for our files. Should you have any questions, give me a call. AMENDNrnNT TO BACKBONE PLANT AGREEMENT RECEIVED MAR 2 8 2001 UNITED WATER THIS AMENDED BACKBONE PLANT AGREEMENT is made and entered into this d-ocffday of March, 2001 , by and between UNITED WATER IDAHO INc., an Idaho corporation, having its principal place of business at 8248 West Victory Road, Boise, Idaho, hereinafter called the "Company" and HARRIS/BRIGHTON LLC, an Idaho limited liability company hereinafter called the "Applicant. RECITALS WHEREAS On or about the 19th day of October, 2000, the parties executed that certain BACKBONE PLANT AGREEMENT, a true copy of which is attached hereto and; WHEREAS paragraph 2(e) provides that Applicant shall make advance for construction in the amount of$382 849 on March 1 , 2001 and; WHEREAS unavoidable delays in design ofthe system have created delay in the commencement of construction and the parties therefore desire to amend the date upon which the construction advance shall be paid to May 25 2001. NOW THEREFORE in consideration of the promises and mutual covenants and agreements herein contained, the sufficiency of which is hereby acknowledged THE PARTIES HERETO AGREE AS FOLLOWS: Paragraph 2(e) of the Backbone Plant Agreement is hereby amended to provide that the construction advance of $382 849 shall be due and payable on May 2001. -..- - ---- - ,-- __m..- --.. - .-.. ---......., ,. .-' AMENDMENT TO BA CKBONE PLANT A GREEMEN1f "----- - _.. ------.. - - --,- -, -.. - ---,.., ..-- -,. -' - ---- .., - -.. ,.. ,........,.. -.. - . In all other respects the Backbone Plant Agreement is confirmed as first written. IN WITNESS WHEREOF the parties hereto have caused these presents to be signed by their duly authorized officers this ay of March, 2001. UNITED WATER IDAHO INC. BY: jll!~,u; HARRIS RANCH: HARRIS/BRIGHTON LLC , An Idaho Limited Liability Company By: Brighton Corporation, An Idaho Corpo tion , Its Managing Member By; David W. T rnbull, President By: Harris Family Ranch, LLP An Idaho Limited Liability Partnership, Its Managing Member -:~~~~.) 15I.Aj1kPJi;u Fel CIa Hams Burkhalter Managing Partner .JJBy: (, '/ iiJ( 01 ~~~. Da is By: lA/~ Brian Randolph arris Managing Partner r;4MENDMpNT TO BA CKBONE !l!'!r A QJYiif..FfJlfir SPECIAL FACILITIES AGREEMENT THIS AGREEMENT is made and entered into between UNITED WATER IDAHO INc., ("Company ) and JA YO CONSTRUCTION, INC , (" Jayo ), and is dated as of the d-Lf~ay of ~cfl , 2006. WHEREAS, United Water Idaho Inc. is a corporation organized and existing under the laws of the State of Idaho having its principal place of business at 8248 West Victory Road Boise, Idaho 83711 and is a water corporation regulated by the Idaho Public Utilities Commission (IPUC). WHEREAS, Jayo Construction, Inc. is a development and construction company, organized and existing under the laws of the State of Idaho, having its principal place of business at 1323 South Five Mile Road Boise, Idaho 83709. WHEREAS, Jayo owns and/or has an interest in a certain development known as Sommerset Ridge Subdivision Phases 4 & 5 (the "Project") consisting of 88 residential building lots and has requested public water supply service for the Project from the Company. WHEREAS, a water storage reservoir and associated equipment and facilities hereinafter called the "System Extension " is required to serve the Project, and Jayo has requested the Company extend its system as follows and in accordance with the map or plan attached hereto marked as Exhibit A and made a part hereof: Construction of a 193 200 gallon storage reservoir, the necessary supply line overflow and drain line, power line, telemetry equipment, booster pumping improvements, required lands and easements, and all associated facilities at a total estimated cost of Seven Hundred Ninety Six Thousand Six Hundred Forty Four Dollars ($796,644), necessary to provide peaking supply and fire protection to the following 250 lots: 162 Existing lots within the Claremont Reservoir pressure zone 88 New lots within Sommerset Ridge Phases 4 & 5 WHEREAS, the Company owns an existing 92 000 gallon Claremont Reservoir whose capacity is insufficient to provide the necessary peaking supply and fire protection to the above referenced 250 lots and is located contiguous to the site for the proposed System Extension. WHEREAS, the Company is willing to make such extension upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Auulication for System Extension.Jayo hereby applies to the Company for the said System Extension, and the Company agrees to allow the said System Extension upon the terms and conditions hereinafter set forth and in accordance with its Rules and Regulations approved by the IPUc. 2. Labor and Materials In-Lieu-of-Cash.Jayo has requested and the Company has agreed that the System Extension will be constructed on a labor and materials in-lieu- of-cash basis. Jayo hereby agrees that it will hire only those contractors that have been approved by the Company and that it will require all such contractors to comply with the Labor and Materials In-Lieu-of Cash Contractors Rules for Performance and Conduct attached hereto and made a part hereof as Exhibit B. Jayo further agrees that it will require its contractors to comply, via its contract with contractor, with all terms and conditions set forth herein. Construction of the System Extension shall be subject to the company inspection, testing and acceptance, however, absence of such inspection or testing by the Company shall not relieve Jayo or it's contractor(s) of any of its obligations. The Company shall require Jayo and it's contractor(s) to warrant the System Extension work in accordance with Paragraph 4 below. 3. Insurance.Jayo and its contractors (via their contract with Jayo) shall be required to maintain, at a minimum, insurance in accordance with the requirements as outlined in attached Exhibit 4. Warranty.Jayo shall have each of its contractors warrant that the work performed in installing the System Extension is free of any defect of equipment, material or workmanship. Such shall continue for a period of two (2) years from completion and approval of the System Extension or within such longer period of time as may be prescribed by law. Pursuant to the warranty, Jayo s contractors, under Company supervision, shall remedy at their own expense any such failure to conform or any such defect upon receipt of written notice from the Company within a reasonable time after the discovery of any failure, defect or damage. In addition, during the aforesaid warranty period, the contractors shall remedy at their own expense, under Company supervision any damage to real or personal property, when that damage is the result of any such defect of equipment, material or workmanship installed by the contractors. The warranty with respect to work repaired or replaced hereunder will run for a period of one year from the date of such repair or replacement or shall run for the remainder of the original two year period, whichever is greater. During the warranty periods as defined herein, the contractors shall reimburse the Company for the costs of any emergency repairs undertaken by the Company to maintain the system in good working order. Without limiting any other provision herein contained, these warranty provisions shall be incorporated in Jayo s contract with its contractors. If any contractor fails to reimburse the Company as set forth in this Paragraph, within forty-five (45) days of the Company request for such reimbursement, then Jayo hereby agrees that it will do so. 5. Company Betterment Toward the System Extension.The Company agrees to pay an estimated Three Hundred Fifty One Thousand One Hundred Eighty One Dollars ($351 181), as "Company Betterment" for the 162 existing customers served by the existing Claremont Reservoir. The Company Betterment represents 48.0% of the System Extension estimated cost, excluding the reservoir site land easement, and $85 000 plus $8,411 in Company overheads towards the cost of the reservoir site land easement. The actual amount of Company Betterment will be determined after the completion of the System Extension and all costs have been accounted for. The Company will reimburse Jayo for this Company Betterment when the Company accepts the System Extension for servIce. 6. Advances for the System Extension.Jayo shall advance to the Company upon the execution hereof the sum of Fifty Four Thousand Five Hundred Eighty Nine Dollars ($54,589), in cash, which represents the estimated cost of the Company s labor and overhead charges for engineering, inspection, accounting, legal, and administrative costs, plus estimated omissions and contingencies chargeable to the System Extension. Such amount shall be subject to reconciliation after completion of the System Extension and all such costs are known and the difference shall be either refunded to or collected from Jayo without interest. Jayo will be responsible for funding all System Extension facilities required to serve the Project. The System Extension facilities to be funded by Jayo are: Reservoir site easement Site survey and site grading and preparation 193 200 gallon storage reservoir Associated power supply and communications and control equipment Booster pump improvements Inspection, project management, permits, and all other required appurtenances Company overheads for engineering, inspection, accounting, legal, and administrative costs Jayo s total cost of construction and installation of the said System Extension as described above, less the Company Betterment, is estimated to be Four Hundred Forty Five Thousand Four Hundred Sixty Six Dollars ($445 466). All costs for the construction of the aforesaid System Extension including the Company overheads charged to the System Extension, less the Company Betterment referred to in Paragraph 5 , shall be paid for by Jayo, and shall be recorded on the Company s books as an advance in aid of construction. Any difference between the actual cost of the System Extension attributable to Jayo and the amounts so referenced above shall be shown as a revision and shall be payable within thirty (30) days of submission. The actual cost thus finally determined shall be referred to as the "advanced cost of the System Extension." If it is necessary to adjust the amount of Jayo s advance, in accordance with the terms of this paragraph, a supplemental memorandum will be prepared setting forth the "advanced cost of the System Extension" and shall be attached hereto and made a part hereof. 7. Easement(s) for Location of System Extension.Jayo shall cause the owners of property on which the System Extension will be located to execute any and all easement agreement(s) as required in favor of the Company in substantially the form of the attached Exhibit D, or other form acceptable to the Company. To the extent that any the Project water facilities lie within lands not owned by Jayo, Jayo shall, without cost or expense to the Company, cause the owners of property on which the water facilities reside to deed such property to the Company, and to execute any and all easements required by the water facilities in favor of the Company. 8. Refunds.The Company will make a one-time refund to Jayo per each of the eighty-eight (88) new customers served by the System Extension, the amount of which shall be determined in accordance with the table set forth in Exhibit E, attached hereto and incorporated herein by reference. The refund amount will be based upon the actual annual revenue received by the Company from the customer for water utility service as determined by using the most recent twelve months of billing data, after the customer which is the subject of the calculation, has received permanent water utility service from the Company for a period oftwelve (12) consecutive billing periods. The lots eligible for refund shall include only those lots within the Project up to the expiration date of this Agreement. The geographic area capable of being directly served by the System Extension for which refunds may be available are shown on attached Exhibit F. The average annual consumption per customer is estimated to be 400 hundred cubic feet (cd) which results in a refund of $1 700 as per Exhibit E. The Company agrees to refund to Jayo 80% of this amount ($1 360) as new customers are connected. These payments will occur on a quarterly basis beginning with the first customer connected to the System Extension. Quarterly payments shall be made no later than 30 days following the end of each calendar quarter. Final adjustment to the refund amount will occur at the conclusion of the 12 consecutive billing periods, as referenced above with the Company paying Jayo the balance of the refund amount above $1 360 or Jayo paying the Company the difference if the final refund amount is less than $1 360. No refunds will be owed on account of any new customer receiving service from the System Extension after the expiration of this Agreement as provided in Paragraph 15 below. The total aggregate refund amount shall not exceed the final "advanced cost of the System Extension" funded by Jayo. 9. Conveyance of System Extension and Final Accountine:.Conveyance of the System Extension from Jayo to the Company will occur via a Bill of Sale in a form substantially similar to that attached as Exhibit G. Along with the Bill of Sale, Jayo shall provide all contractor "as-built" maps and drawings, equipment manufacturer' owner manuals, and facilities construction and acceptance test results. Jayo shall also provide original or photocopy evidence of all invoices paid showing all actual costs incurred related to the construction and installation of the System Extension, along with a cost summary clearly identifying each cost as it relates to each major item of the System Extension. Likewise, the Company shall provide a similar summary of its overhead costs charged to the System Extension project. Upon conveyance, the Company shall record the actual costs so determined on its books and records as an advances in aid of construction as referred to in Paragraph 6. The amount, if any, of said "advanced cost for the System Extension " less the total amount refunded over the term of this agreement, shall be retained by the Company and booked as a contribution in aid of construction after the expiration of this Agreement. 10. Covenants to Complete.The Company will use its best efforts to commence and carry to completion as soon as possible its responsibilities with regard to installation of said System Extension, but will not be responsible for delays, which may be occasioned by weather, acts of God or the public enemy, strikes or other matters not within its control. Jayo will use its best efforts to commence and carry to completion as soon as possible its responsibilities with regard to the installation of said System Extension, but will not be responsible for delays, which may be occasioned by weather, acts of God or the public enemy, strikes or other matters not within its control. 11. Failure to Obtain Required Consents.It is further understood and agreed by and between the parties hereto that this Agreement to construct the said System Extension is subject to both the Company and Jayo obtaining all necessary consents orders, permits and approvals of public officers or public bodies having jurisdiction over or lawful interest in any of the subject matters herein. In the event that either the Company or Jayo . after prompt application and diligent effort, is unable to obtain any necessary consent, order, permit or approval as aforesaid, or in the event that either the Company or Jayo is enjoined or prevented by lawful action of any such public officer or official body from constructing the said System Extension, the Company s sole obligation will be to repay Jayo the difference between the amount advanced and estimated expenses incurred by the Company in conjunction with the System Extension which is the subject of this Agreement. 12. Facilities Construction and Ownership of System Extension.All facilities shall be constructed in compliance with the Company s specifications for materials and installation, and the Company shall have approval authority over all System Extension design and installation. It is further mutually understood and agreed that any and all parts of the System Extension located within the limits of the streets, avenues, roads, ways or easement areas whether or not attached to or serving customers but constructed as part of the System Extension shall be and remain the property of the Company, its successors and assigns. The Company shall have the right to extend any main installed pursuant to the terms of this Agreement in or to other lands, streets, or avenues without incurring any liability to Jayo whatsoever. 13. Water Facilities Within the Project.All distribution facilities associated with the 88-building unit Project will be considered contributed plant and will be constructed and installed at Jayo s cost under the Company s standard "Residential, Multiple Family Housing, Commercial, Industrial, or Municipal Development Water Main Extension Agreement" as approved by the IPUC. The cost of these facilities will not be available for refund. 14. A2reement Subject to Idaho Public Utilities Commission Approval.It is agreed and mutually understood that the terms of this Agreement, particularly Paragraphs five (5), six (6) and eight (8) are subject to review and possible approval by the Idaho Public Utilities Commission (IPUC) before construction of the water facilities for the Project can commence. If approval by the IPUC cannot be obtained in a manner acceptable to the Company or Jayo, at their respective discretion, then such party shall have the right to attempt to cure the Agreement and resubmit the Agreement for approval by the IPUC. If approval by the IPUC can still not be obtained in a manner acceptable to the Company or Jayo, at their respective discretion, then such party shall have the right to declare this Agreement null and void and the parties will have no further obligations to each other except as provided for in Paragraph 11. 15. Term of A2reement.The term of this agreement shall be for fifteen (15) years from the date on which the System Extension is first placed in service, which date is estimated to be fUNE 30 2006. 16. Miscellaneous.This Agreement shall be governed by and construed in accordance with the laws of the State ofldaho. This Agreement may only be amended in whole or in part by an agreement in writing duly signed and delivered by both parties. This Agreement may not be assigned by any party, whether voluntarily, involuntarily or by operation or law without the prior written consent of the other party given as an amendment of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their duly authorized representatives this c:L L/!!!day of /Y1'9--tecH 2006. UNITED WATER IDAHO INC.NSTRUCTION , INC, oug '/;, P sident .1LQ Witness " I N V = 3' M I N . O F F S E T , I N S T A L L OV E R F L O W / D R A I N U N E PA R A L L E L T O EX I S " I I N G D R A I N U N E N3 S ' W 4 2 8 L F . (S L O P E L E N G l H ) 12 " O V E R F l O W / D R A I N U N E - C 9 0 0 PV C P R O V I D E S L O P E A N C H O R S A T 3 6 ' PE R I S P W C S D - S 1 0 ( 1 1 TO T A L ) PO l H O L E T O V E R I F Y LO C A " I I O N OF E X I S " I I N G D R A I N U N E :- - - ~ J2 -- - y - -- - " 5 ' - 7 - " , - / ~~ v : 8" W A " T E R M A I N C9 0 0 P V C ~ c MI N . D E P l H F O R D R A I N U N E = 4 ' SE E D E T A I L O N S H E E T C S EX I S T I N G 92 , 00 0 G A L . RE S E R V O I R '\ : : : : "A G E S , " " " SE E D E T A I L S H E E T C 6 EX H I B 1 T " NE W 19 3 , 20 0 G A L . RE S E R V O I R EXHIBIT B Page 1 of 2 Labor and Materials In-Lieu-of-Cash Contractors Rules for Performance and Conduct The following provide the rules for performance and conduct for contractors performing work on water structures, facilities, and appurtenances in water systems owned or to be owned by United Water Idaho and those for which it provides contract operations. Any approved contractor shall perform within the guidelines of the specifications and the rules delineated below. Any contractor who fails to meet these specifications and rules will be removed from job. The rules for performance and conduct fall under six subdivisions, Safety, Materials Conduct, Contract Violations, Insurance and Unpaid Debits to United Water Idaho. Aside from and in addition to any right to remove a contractor as granted by law and aside from and in addition to any provision relating to removal or termination in any contract executed between the parties, removal of a contractor from the job will occur if any of the following occur. SAFETY: The contractor s Worker s Compensation Experience Modification Factor is above 1.25. In United Water Idaho s sole but reasonable discretion, the contractor has operated under unsafe working conditions - 1 S1 time results in a warning, 2nd time results in removal of the contractor from the approved list. In United Water Idaho s sole but reasonable discretion, the contractor is operating under life threatening working conditions will result in immediate termination of the contractor from the current project and removal of the contractor from the approved list. MA TERIALS: The contractor installs non-approved materials in a project 1 s1 time results in a warning, 2nd time results in removal of the contractor from the job and the approved list. CONDUCT: Refusal to perform as required by the United Water Idaho inspector, contractor is subject to termination from current project and removal of the contractor from the approved list. Proceeding with project without 48-hour notice - 1 s1 time results in a warning, 2nd time results in removal ofthe contractor from job and the approved list. EXHIBIT B Page 2 of 2 RULES FOR PERFORMANCE AND CONDUCT - I The abuse of language or hostile behavior toward United Water Idaho employees public agency representatives and/or the general public - I 5t time will, in United Water Idaho s sole but reasonable discretion, result in immediate termination of the offending employee from the current project, 2nd time results in removal of the contractor from the current project and the approved list. Failure to deliver as-built drawings and service tickets will result in non-acceptance of project. CONTRACT VIOLATIONS: Failure to comply with any provision of the contract between United Water Idaho and/or Jayo and the contractor. INSURANCE: Contractor is required to maintain insurance levels as specified. No work shall be authorized if current coverage does not meet specified limits. UNPAID DEBTS: All debts owed to United Water Idaho by the contractor shall be due and payable on a 30-day basis. If the contractor fails to make timely payment, United Water Idaho may remove the contractor from the list of approved contractors. Each contractor must require that any subcontractor comply with the requirements outlined herein, and each contractor must include appropriate provisions, which set forth all of the above Rules for Performance and Conduct in each of its contracts with subcontractors working on the Project. REVIEW AND REINSTATEMENT United Water Idaho will conduct annual reviews of existing contractors, new contractors and the reinstatement of former contractors on an annual basis in December. Warnings will remain in effect for 12 months. Any contractor removed from the list of approved contractors, as delineated above, will remain off of the list for a minimum of 12 months prior to consideration for reinstatement. EXHIBIT C Insurance Requirements Jayo and it's contractors shall purchase and maintain such insurance as will protect Jayo and the Company from claims which may arise out of or result from Jayo s operations under this Agreement, or by anyone for whose acts any of them may be liable. Such insurance shall be written for not less than the coverage and any limits of liability specified below, or as required by law, whichever is greater. By requiring insurance specified herein, the Company does not represent that such coverage and limits will necessarily be adequate to protect Jayo and it's contractors , and such coverage and limits shall not be deemed as a limitation on Jayo s or it's contractor s liability under the indemnities or warranties granted to the Company in this Agreement. Certificates of Insurance acceptable to the Company shall state that they are Primary Insurance and shall be filed with the Company prior to the commencement of the System Extension work. These Certificates shall contain a provision that coverage afforded under the policies will not be canceled until at least thirty (30) days prior written notice has been given to the Company, except ten (10) days notice for non-payment of premium. The Company shall be named as an additional insured on all policies except workers compensation. Jayo shall furnish the Company with notice of all claims it receives and shall keep the Company informed as to the status of each claim. 1. Worker s Compensation:(a) State:(b) Applicable Federal (e., Longshoremen s): (c) Employer s Liability: Statutory Statutory $100,000 2. Commercial General Liability (including Premises-Operations; Independent Contractors Protective; Products and Completed Operations; Broad Form Property Damage; Blanket Contractual Liability, Personal Injury with Employment Exclusion deleted): (c) Bodily Injury and Property Damage: Single Limit $1,000,000 Products and Completed Operations to be maintained for two (2)year(s) after final payment. Property Damage Liability Insurance shall provide X, C and U coverage as applicable. (a) (b) 3. Comprehensive Automobile Liability: Bodily Injury and Property Damage: Single Limit $1,000,000 . 4. Umbrella Excess Liability: $5,000,000 over primary insurance EXHIBIT D Page 1 of 4 RIGHT-OF-WAY AGREEMENT THIS INDENTURE made this day of, between , hereinafter designated as the grantor(s), and UNITED WATER IDAHO INC., a corporation organized and duly existing under and by virtue of the laws of the State of Idaho, with its principal offices located at 8248 West Victory Road, Boise, Idaho 83707 hereinafter designated as the grantee; WITNESSETH: That the grantor(s) in consideration of the sum of One Dollar and other valuable considerations the receipt whereof is hereby acknowledged, hereby grants bargains, sells, and conveys unto the grantee, its successors and assigns, a perpetual and exclusive easement and right-of-way for the construction, installation and continued operation, maintenance, repair, inspection, alteration, replacement, and removal of underground water pipe lines and all necessary appurtenances, together with the perpetual right and privilege of ingress, egress, and regress to and for the grantee, its employees agents, contractors, sub-contractors, successors, and assigns, over, under, on, through, in upon, and across the following described real property belonging to the said grantors and as shown on attached Exhibit " The foregoing grant of easement and right-of-way is further subject to the following conditions, covenants and agreements ofthe parties hereto: 1. The easement and right-of-way granted hereby shall apply to and run with the lands of Grantor and shall be binding upon the heirs, executors, administrators, successors and assigns of Grantor and may be released, extinguished or abandoned only by an appropriate document executed by the Grantee. 2. Grantee shall have the right from time to time to trim and cut and clear away any trees and bushes now or hereafter on said easement and right-of-way which may be necessary for the construction, installation, maintenance, improvement, operation EXHIBIT D Page 2 of 4 inspection, repair, replacement, renewal and removal of such water facilities or which mayor become a hazard to said pipes, mains, appurtenances and fixtures. 3. Grantor shall not erect or construct any buildings, fences or structures on said easement and right-of-way, shall not plant crops, shrubs or trees on said easement and right-of-way, or otherwise limit Grantee s ability to access, maintain, or operate the water mains and lines or in any way limit Grantee s ability to exercise its right under this Agreement. 4. Grantee shall backfill any trench made by it on said easement and right-of-way, and shall return the easement as reasonable as possible to its original condition, normal wear and tear excepted. Grantee shall use caution during construction and in the future to prevent damage to Grantor and Grantor s property. 5. Grantor shall not suffer or permit the installation of any electric, cable, sewer, gas or other utility lines, pipes, poles or appurtenances on, over, under or across the easement and right-of-way granted hereby if such installation limits Grantee s ability to access, maintain or operate the water mains and lines or in any way limits Grantee s ability to exercise its rights under this Agreement. 6. Any water mains, pipes, appurtenances and property and accessories installed maintained, removed or replaced by Grantee in the easement and right-of-way granted hereby shall at all times be and remain the sole personal property of Grantee for use in its business and subject to removal by it at any time, and shall be deemed to be personal property and not permanently affixed to the realty so as to become fixtures. 7. Except as herein provided, this Agreement contains the entire agreement of the parties with respect to the subject matter hereof and may not be amended or terminated except by written agreement signed by both parties hereto, and supersedes all prior oral and written agreements or understandings with respect to the subject matter hereof. 8, Grantee shall have the right to assign this easement and right-of-way and the rights granted to it hereby without any approval or permission of the Grantor. 9. Grantor represents that it has the right in the property to grant this easement. 10. This Agreement shall be binding upon the successors or assigns of the respective parties. EXHIBIT D Page 3 of 4 11. This Agreement shall be construed and enforced in accordance with the laws of the State ofIdaho. TO HAVE AND TO HOLD the same unto the grantee, its successors and assigns FOREVER. IN WITNESS WHEREOF these presents have been executed by the undersigned this day of , 2006 . GRANTOR: GRANTEE: UNITED WATER IDAHO INC. By: Gregory P. Wyatt, Vice President EXHIBIT D Page 4 of 4 STATE OF IDAHO County of ADA before me , 20 -personally appeared who is personally know to me whose identity I proved on the basis of Notary Public My commission expires on: STATE OF IDAHO COUNTY OF ADA , a notary public, do hereby certify that on this, 20 , personally appeared before me , who, being by me first duly sworn, declared that he/she is the, of , that he/she signed the foregoing document as , of the corporation, and that the statements therein contained are true. day of Notary Public My commission expires on: CA L C U L A T I O N O F R E F U N D S F O R S P E C I A L F A C I L I T I E S Up d a t e d f o r d e p r e c i a t e d p l a n t a t 1 2 / 3 1 / 2 0 0 5 a n d c u r r e n t R O R a n d e x p e n s e s Un i t e d W a t e r I d a h o Sp e c i a l F a c i l i t i e s A g r e e m e n t Wa t e r C o n s u m e d ( c c f ) 10 0 20 0 30 0 40 0 50 0 60 0 70 0 80 0 90 0 10 0 0 Re v e n u e P r o j e c t e d $2 4 6 $3 7 9 $5 1 3 $6 4 6 $7 7 9 $9 1 2 $1 , 04 5 $1 , 17 8 $1 , 31 1 $1 , 44 4 So u r c e & S t o r a g e I n v e s t m e n t N e t o f D e p r e c i a t i o n $2 5 4 $5 0 9 $7 6 3 01 8 27 2 52 7 78 1 03 6 $2 , 29 0 54 4 In v e s t m e n t De p r e c i a b l e S o u r c e & S t o r a g e I n v e s t m e n t $3 3 3 $6 6 6 $9 9 8 33 1 66 4 99 7 33 0 66 3 99 5 $3 , 32 8 Pe r C u s t o m e r R e f u n d $2 2 8 $7 3 1 22 6 71 2 19 8 68 2 16 4 $3 , 64 5 12 4 60 2 Me t e r s : $ 1 0 0 e a . $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 $1 0 0 To t a l I n v e s t m e n t f o r D e p r e c i a t i o n P u r p o s e s $6 6 0 $1 , 4 9 7 32 4 14 4 96 2 77 9 59 4 $6 , 40 7 21 9 03 0 Su p p o r t e d I n v e s t m e n t $5 8 2 $1 , 34 0 $2 , 08 9 $2 , 83 0 $3 , 57 0 30 8 $5 , 04 5 $5 , 78 0 $6 , 51 4 $7 , 24 6 To t a l R e v e n u e R e c e i v e d $2 4 6 $3 7 9 $5 1 3 $6 4 6 $7 7 9 $9 1 2 $1 , 04 5 $1 , 17 8 $1 , 31 1 $1 , 44 4 In c r e a s e i n E x p e n s e s Op e r a t i n g a n d M a i n t e n a n c e E x p e n s e s $1 5 8 . $1 5 0 $1 5 8 $1 6 9 $1 8 0 $1 9 1 $2 0 2 $2 1 4 $2 2 6 $2 3 8 $2 5 1 Ad V a l o r e m $1 0 $2 3 $3 6 $4 9 $6 1 $7 4 $8 7 $9 9 $1 1 2 $1 2 5 De p r e c i a t i o n ~ 3 , 1 % $2 0 $4 6 $7 2 $9 7 $1 2 3 $1 4 8 $1 7 3 $1 9 9 $2 2 4 $2 4 9 To t a l I n c r e a s e i n E x p e n s e s $1 8 0 $2 2 8 $2 7 7 $3 2 6 $3 7 5 $4 2 5 $4 7 4 $5 2 4 $5 7 4 $6 2 4 In c o m e B e f o r e I n c o m e T a x e s $6 6 $1 5 1 $2 3 6 $3 2 0 $4 0 4 $4 8 7 $5 7 1 $6 5 4 $7 3 7 $8 2 0 De b t ( ~ 5 3 . 54 % o f n e t i n v e s t ) $3 5 4 $8 0 1 24 4 68 3 $2 , 12 1 55 9 99 5 $3 , 4 3 1 $3 , 86 5 29 9 In t e r e s t o n D e b t ( ~ 6 . 67 5 % ) $2 4 $5 3 $8 3 $1 1 2 $1 4 2 $1 7 1 $2 0 0 $2 2 9 $2 5 8 $2 8 7 Ta x a b l e I n c o m e $4 2 $9 8 $1 5 3 $2 0 8 $2 6 2 $3 1 7 $3 7 1 $4 2 5 $4 7 9 $5 3 3 In c o m e T a x ( ( g ! 4 0 . 20 % ) $1 7 $3 9 $6 2 $8 3 $1 0 5 $1 2 7 $1 4 9 $1 7 1 $1 9 3 $2 1 4 Ne t I n c o m e $2 5 $5 9 $9 2 $1 2 4 $1 5 7 $1 8 9 $2 2 2 $2 5 4 $2 8 6 $3 1 9 In c o m e A v a i l a b l e F o r R e t u r n $4 9 $1 1 2 $1 7 5 $2 3 7 $2 9 8 $3 6 0 $4 2 2 $4 8 3 $5 4 4 $6 0 6 Re t u r n 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % 35 7 % Su p p o r t e d I n v e s t m e n t $5 8 2 34 0 08 9 83 0 $3 , 57 0 30 8 $5 , 04 5 78 0 $6 , 51 4 24 6 Re f u n d A m o u n t $2 0 0 $7 0 0 $1 , 20 0 $1 , 70 0 $2 , 20 0 $2 , 70 0 $3 , 20 0 $3 , 60 0 $4 , 10 0 $4 , 60 0 :r : :: : j j- - - - - - - - - - - - - - - - - - - - - - - - .. = - - - ii l O Q / ( 1 0 L_ _ _ _ _ _ - - .. .. 12 ii l O Q / ( . 9 iil O Q / ( L- - ' ~ \ ' - . . . . , . . . - -- - - \. - - - - -- - ~: : - ~l i t - - - - DE S I G N E D B Y : DR A W N B Y : CH E C K E D B Y : AlE : DA l E : iiA i E : jiA T r . NO . RE \ 1 S 1 C N S BY ! D A l E ,\ ~ i iil O Q / ( - / 1: ' 1l! - -- - - - -- - -- - "- I SO M E R S E T RI D G E SU B D I V I S I O N I- ! A- q- S ' N- T - S l- 1 tt 3 t l SI T E P L A N - 88 Le T -- . SH E E T N O . EXHIBIT G BILL OF SALE KNOW ALL MEN BY THESE PRESENTS, That Jayo Construction, Inc., Party ofthe First Part for and in consideration of the sum of One Dollar ($1.00) in lawful money (and other good and valuable consideration) to it paid by United Water Idaho Inc., 8248 West Victory Road, Boise Idaho 83709, a corporation, Party of the Second Part, the receipt of which is hereby acknowledged by it, has granted, bargained, sold, transferred, set over and delivered unto the Party of the Second Part, the System Extension to the water utility system, including all water mains, services, valves, hydrants, reservoirs, booster stations, equipment and appurtenances, and the complete water system located on the real property described in Exhibit A" attached hereto (being hereinafter collectively referred to as the "System Extension Party of the First Part hereby warrants and represents that it has all the requisite right and authority to make this conveyance, and that the System Extension is free from all liens and other encumbrances, and that each and every contractor and sub-contractor furnishing labor or materials relative to the construction of the System Extension have been paid in full. TO HAVE AND TO HOLD the same unto the Party of the Second Part, its successors and assigns, forever; and that said Party of the First Part does for its covenant agree to WARRANT and DEFEND the sale of said personal property, goods and chattels hereby made, unto the said Party of the Second Part, its assigns against all and every person and persons whomsoever lawfully claiming or to claim the same. IN WITNESS WHEREOF the Party of the First Part has caused these presents to be signed and its seal to be affixed by its officer, hereunto duly authorized, this day , 20 By: Title: STATE OF County of On before me who is personally known to me whose identity I proved on the basis of personally appeared to be the signer of the above document, and he/she acknowledge that he/she signed it. Notary Public My Commission Expires on: Accepted by United Water Idaho Inc.Date: SPECIAL FACILITIES AGREEMENT c.E,A. No. COIEOOI THIS AGREEMENT between UNITED WATER IDAHO INc., ("Company ) and CLAREMONT REALTY COMPANY , (" Claremont"), is dated as of ..:T"VLy IS'2005. WHEREAS , a water storage reservoir, pumping stations and associated water facilities are required to serve the Arrowhead Canyon and Arrowhead Ridge Developments, in which Claremont has an interest, as well as other potential developers in the vicinity of these developments, and pursuant to previous oral discussions and understandings, Claremont and the Company have caused to be constructed those certain water system facilities more specifically described below and on attached Exhibit A hereto, and made a part hereof: Construction of the 440 000 gallon reservoir (the "Arrowhead Reservoir ), pump stations (identified as "Arrowhead Pump Station No. I" and "Arrowhead Pump Station No. the necessary supply line, overflow and drain line, controls and telemetry equipment, and roadway (the "System Extension ) at a total cost of $1,427 023., necessary to provide peaking supply and fire protection to the following approximately 404 lots: (a) Approximately 240 lots in and in the vicinity of Arrowhead Canyon Subdivision No., Arrowhead Ridge Subdivision and Becker Ridge (the New Lots ); and (b) Existing 164 Company customers and/or lots to be served from Arrowhead Reservoir: 23 Cartwright Canyon lots 16 Medicine Creek lots 115 El Pelar lots 3 Fire House customers 7 Misc. lots in the vicinity of Quail Hollow Golf Course and 36th Street (all of the foregoing, "Existing User Lots WHEREAS, the System Extension enhances services previously provided by the Company to the Existing User Lots and the Company agrees to pay $390 584.00 toward the cost of the -System Extension as Company betterment for the existing aforementioned customers and Cartwright Canyon customers to be served by the System Extension; WHEREAS, Claremont and the Company now desire to memorialize their previous oral discussions and understandings within this Agreement, all upon the terms and conditions hereinafter set forth. SPECIAL FACILITIES AGREEMENT- NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Application for System Extension.Claremont previously made application to the Company for the said extension of its system, and the Company agreed to construct the said extension upon the terms and conditions hereinafter set forth and in accordance with its Rules and Regulations. 2. Claremont Advances and Contributions Toward the System Extension. Claremont's advance to the Company for the System Extension is the sum of One-Million- Thirty-Six-Thousand-Four-Hundred-Thirty-Nine Dollars ($1 036 439.00), in cash or the combination of cash and labor and materials in-lieu-of-cash, which amount represents Claremont s cost of construction and installation of the said System Extension as described above including overhead costs of the Company and supervision, engineering, accounting, legal expenses and the cost of obtaining any necessary governmental permits, This actual cost shall be referred to as the "advanced cost of the System Extension. 3. Easement(s) for Location of System Extension.Claremont shall cause the owners of property on which the System Extension is located to execute an easement agreement(s) in favor of the Company in substantially the form of the attached Exhibit B. 4. Refunds.The Company will make a one-time refund to Claremont per new customer served by the System Extension, the amount of which shall be determined in accordance with the table set forth in Exhibit C, attached hereto and incorporated herein by reference. The refund amount will be based upon the annual revenue received by the Company from the customer for water utility service as determined by using the most recent twelve months of billing data, after the customer which is the subject of the calculation, has received permanent water utility service from the Company for a period of twelve (12) consecutive billing periods. The total aggregate refund amount shall not exceed the "advanced cost of the System Extension" advanced by Claremont. The lots eligible for refund shall include all 240 lots in and in the vicinity of Arrowhead Canyon Subdivision No., Arrowhead Ridge Subdivision, and Becker Ridge for which new customers are connected and served by the System Extension (excluding the 164 previously served lots referenced above) up to the expiration date, The average annual consumption per customer is estimated to be 400 ccf which results in a refund of 800 as per Exhibit C. The Company agrees to refund to Claremont 80% of this amount ($1,440) as new customers are connected. These payments will occur on a quarterly basis, with the first payment due on or about August 31 , 2005 for all new customer connections to the New Lots from the In-Service Date (defined in Section 8 below) to June 30, 2005. Subsequent quarterly payments shall be made no later than 30 days following the end of each calendar quarter. Final adjustment to the refund amount will occur at the conclusion of the 12 consecutive billing periods, as referenced above, with the Company paying Claremont the balance of the refund amount above $1 440 or Claremont paying the Company the difference if the final refund amount is less than $1 440. No refunds will be owed on account of any new customer receiving SPECIAL FACILITIES AGREEMENT - 2 service from the System Extension after the expiration of this Agreement as provided in paragraph 8 below. 5. Accountin2.The amount of said "advanced cost for the System Extension " less the total amount refunded over the term of this agreement, shall be retained by the Company and booked as a contribution in aid of construction, 6. Ownership of System Extension.It is further mutually understood and agreed that any and all parts of the System Extension located within the limits of the street, avenues roads, ways or easement areas, whether or not attached to or serving customers but constructed as part of the System Extension shall be and remain the property ofthe Company, its successors and assigns. The Company shall have the right to extend any main installed by it pursuant to the terms of this Agreement in or to other lands, streets, or avenues. 7. A2reement Subject to Idaho Public Utilities Commission Approval.It is agreed and mutually understood that the terms of this agreement, particularly paragraphs two (2), four (4) and five (5) are subject to approval by the Idaho Public Utilities Commission. Further should the Idaho Public Utilities Commission not approve the refund provision in paragraph four (4) and paragraph five (5), the Company shall retain the "advanced cost for the water storage reservoir. 8. Term of A2reement.The term of this agreement shall be for fifteen (15) years from the date on which the System Extension was first placed in service, which date is July 31 2002 (the "In-Service Date 9. Company to Remove El Pelar Water Reservoir.The Company agrees that following completion of the System Extension, the company will, at its sole cost and expense remove the Company s existing water reservoir serving the EI Pelar subdivision and remediate the site of the existing water reservoir within ten (10) years of the date of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their duly authorized officers this /S.z:$..day of JULY 2005. UNITED WATER IDAHO INc.: By: Gre CLAREMONT REALTY COMP~Y:" r " ',-, /J By::J:,//vr:~Y:-.U/ Jf Michael L. Simplot, President SPECIAL FACILITIES AGREEMENT - 3 EXHIBIT A Description of water system facilities constructed pursuant to this Agreement See attached. SPECIAL FACILITIES AGREEMENT - 4 ~- - - - - /' v Ar r o w h e a d SV R - ' ~ L. . .. Ar r o w h e a d Pu m p S t a t i o n N o . l J -- - - - Ad . C . u n t y , h . , j l n o t b . I i B b l . f o r In . . . u r . " . . o r m l . , . . o r t . " m. p , " ' 1 " b.O I i n " " i , d i a o h , ; m . r ma y b . p n o t . " p i . d f r . . , y , Ho w . . e r . u s e I n a n y O l g " B I ' o e m r e q u ' " , . m e .. " " e n po n " , . . i o n o f A d ~ Co u n t y , TH I " e R . W I N G I S T O B " U . " O D N L " FO R R E F E R E N C E I ' U R P O O E S A N D U" ' T E J W A T E R ' S N e T RE S P O N S I B L E F O R A N \ ' IN A i : C U R A i : ' E 3 H E R E ' N C O N T A I N E D ::. . EX H I B I T A 4 I n c h M a i n 6 I n c h M a i n 8 I n c h M a i n 12 I n c h Ma i n Se r v i c e s 1 - 44 0 , 00 0 Ga l . R e s v . 2 - Pu m p St a t i o n s 'i ' ~ tY ~ ~ : Un i t e d W a t e r q p Sc a l e 1 i n c h = 5 0 0 f t Re v i s e d D a t e : 0 6 - 24 - 0 5 EXHIBIT B Easement Agreement See attached, SPECIAL FACILITIES AGREEMENT - 5 WATER FACILITIES EASEMENT AGREEMENT This Water Facilities Easement Agreement is made this day of , 2005 , among HIGHLANDS, INC., an Idaho corporation ("Highlandswhose address is , and CLAREMONT REALTY COMPANY, an Idaho corporation ("Claremont") whose address is P, 0, Box 27, Boise , Idaho 83707 , and UNITED WATER IDAHO, INC., an Idaho corporation ("Grantee ), whose address is 8248 West Valley Rd" P,O, Box 190420, Boise , ID 83719-0420. RECITALS WHEREAS, Highlands is the owner of certain real property in the county of Ada, state of Idaho, hereinafter referred to as the "Highlands Property," which real property is more particularly described on Exhibit "A" attached hereto; WHEREAS, Claremont is the owner of certain real property in the county of Ada, state of Idaho , hereinafter referred to as the "Claremont Property" which real property is more particularly described on Exhibit "B" attached hereto; WHEREAS , Highlands and Claremont are desirous of United Water Idaho expanding its water service facilities in order to provide domestic water service to, among other lands , the Highlands Property and the Claremont Property; WHEREAS, Claremont and United Water Idaho have entered into a Special Facilities Agreement, to provide for construction of a 440 000 gallon reservoir , pump stations, supply, overflow and drain lines , controls and telemetry equipment (the "System Extension ), a portion of which System Extension will be located on the Highlands Property and the Claremont Property ; WHEREAS, access to the water reservoir to be constructed as part of the System Extension is through and across the Highlands Property and the Claremont Property; NOW THEREFORE, it is agreed as follows: AGREEMENT 1. Claremont Grant of System Extension Location and Access Easements. In exchange for Grantee s promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Claremont hereby grants to Grantee, and to Grantee s successors in interest the following easements: an easement over, under and across that portion of the Claremont Property described on the attached Exhibit "l" (the "Claremont Location Easement Area for the placement, replacement maintenance , repair, reconstruction and operation of the System Extension, and for no other purpose; and EASEMENT AGREEMENT - 1 062705 1632 2008c an easement fifty feet (50') wide over, under and across that portion of the Claremont Property described on the attached Exhibit "2" (the Claremont Access Easement Area ) for ingress and egress access to and from the Claremont Location Easement Area for all purposes incident to the use and occupancy of the Claremont Location Easement Area by Grantee. Hi2hIands Grant of Easement. In exchange for Grantee s promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Highlands hereby grants to Grantee , and to Grantee s successors in interest, an easement fifty-feet (50') wide over, under and across that portion of the Highlands Property described on the attached Exhibit "D" (the "Highlands Easement Area ) for (a) ingress and egress access to and from the Claremont Access Easement Area and the Claremont Location Easement Area for all purposes incident to the use and occupancy of the Claremont Access Easement Area and the Claremont Location Easement Area and (b) the placement replacement, maintenance , repair, reconstruction and operation of the System Extension, Nonexclusive Easement. The easements granted herein are nonexclusive. 3. Termination of Easements. The easements granted herein shall be terminated in the event Grantee abandons its use of the System Extension. In the event of such abandonment, Grantee shall , at the request of Claremont or Highlands or their successors in title, at its sole cost and expense , remove all parts of the System Extension that are above- ground and remediate the easement area, 4. Entire A2reement. This instrument contains the entire Agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any oral representations or modifications concerning this instrument shall be of no force or effect excepting a subsequent modification in writing signed by the party to be charged. 5. Construction . The parties have each been, or have had the opportunity to be represented by legal counsel in the course of the negotiations for and the preparation of this Agreement. Accordingly, in all cases, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against either party regardless of which party caused the preparation of this Agreement. 6. Attorneys Fees. In the event of any controversy, claim, or dispute relating to his instrument or breach hereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys fees , and costs, 7. Bindin2 Effect This instrument shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties hereto. EASEMENT AGREEMENT - 2 062705 1632 2008c IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above-written, THE HIGHLANDS , INC. Its CLAREMONT REALTY COMPANY Michael L. Simplot, President UNITED WATER IDAHO INC. Its State of Idaho ) ss. County of Ada) On this day of , in the year 2005, before me, personallyappeared , known or identified to me to bethe of The Highlands , Inc. that executed the instrument or the person who executed the instrument on behalf of said company, and acknowledged to me that such company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. Notary Public for Idaho Residing at: My Commission Expires: EASEMENT AGREEMENT - 3 062705 1632 2008c State of Idaho ) ss, County of Ada) On this day of , in the year 2005 , before me, personally appeared MICHAEL L. SIMPLOT , known or identified to me to be the President of Claremont Realty Company that executed the instrument or the person who executed the instrument on behalf of said company, and acknowledged to me that such company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. Notary Public for Idaho Residing at: My Commission Expires: State of Idaho ) ss. County of Ada) On this appeared day of , III the year 2005 , before me, personally , known or identified to me to be the of United Water Idaho Inc. that executed the instrument or the person who executed the instrument on behalf of said company, and acknowledged to me that such company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. Notary Public for Idaho Residing at: My Commission Expires: EASEMENT AGREEMENT - 4 062705 1632 2008e See attached. EASEMENT AGREEMENT - 5 062705 1632 2008c EXIDBIT A Engineering North West, LLC 10221 West Emerald, Suite 140 Boise, Idaho 83704 (208) 376-5000 . Fax (208) 376-5556 Project No. 00-011- HIGffi..AJ.1\IDS INC. PARCEL EXHIBIT A Date: March 8, 2001 A parcel orland being the S 1/2 of the SE 1/4 of Section 22, and the SW 1/4 of the SW 1/4 of Section 23, all in T. 4 N., R. 2 E., B.M., Ada County Idaho. Containing approximately 120 acres. Highlands Ex A short-doc Page 1 of I '\ ' , ''\ ' \ , ,, ,, ,\ ' \ , \ \\ \ 1 \ 8! " ~ T ~ I I ' 2 5 a D. p : ' - , i\ I I 1 - ; 0 1' - ' II ~ '\ ~ .\ ' C 1 I' : t : - \I ' - ' -;0 \' 0 \\ t J II I1\ \ \: ' \ I \ ' '~ ~ : ': : : : : : : : : : : : :: ," . '- ' 28 1 2 7 '- - - - - PR O P O S E D AR R O W H E A D R I D G E SU 8 D I V I S I C N J) € S ( O I I A - - = s . CI t - - - " " " ' " ' 0 0 ~. ~ NO r ! I E u s m 00 . . . . "" O . E C f C O O c: n t I C S I C N S 0 1 ' nG CI C D " T / r ' r ~r .. - . . . . . . .1 I t 0C Z N a J I D 0 C ~. u. c . OE ~ ' " ' +. - - -. - -- - , - . .. - . - - . . . . . . , -- + , -, "" A - ; n - . . Oo t : C X E D a . . . . '" 0 . I 1" " , O A t r IR ( V , -'\ A R R " ' " ' € A D H1 9 r" " K r O O - " " - O l l \ C R A ~ O O C S \ " 2 0 ~ S E ~ O 8 I r A ~" " ) - 0- . " 1 2 : 2 " ' 2 7 , . . . -s r DA ~ - - - - _ . . .~ , - _ . OA ; E , 27 1 2 6 CL A R E M O N T -- _ -- - - - - - - - "- - . . ) RE A L T Y . I N C WA T E R T A N K S I T E -- - - , - - En g i n e e r i J I g N o r t h W e s t , L L C '= 1 Yo E : S . O i E R A L D SU I T E 1 4 ( J BC t S ( . 1 0 " " 0 8 J 7 0 ' (2 O 8 P 7 6 - 5 O O O AR R O W H E A D -' ~ . . . - :: : : , \, ,\ \\ \ , \I , I I I I I I , , , , , r I I I r r r I I I r r I , r r I , r I I , I , I I IC) . , ,a:! , , , SC A L E : " = 4 0 0 '\ . . , E X H I B I " f ' A -- - - , . 00 - 01 1 SH E E T WA T E R T A N K R O A D See attached. EASEMENT AGREEMENT - 6 062705 1632 2008e EXIDBIT B Engineering North West, LLC 10221 West Emerald, Suite 140 Boise , Idaho "83704 (208) 376-5000 . Fax (208) 376-5556 Project No. 00-011-01 Date: March 8, 2001 CLAREMONT REALTY PARCEL EXHIB IT B A parcel ofland being the N 1/2 of the NE 1/4 of Section 27 , T. 4 N., R. 2 E. B.M., Ada County Idaho. Containing approximately 80 acres. Claremont Ex B short-doc Page I of I '\ ' , ''\ ' \ , ,, ,, ,'\ ' \. \ . '1 . . \ \ ,, \ 3!! " : . T - r " 25 6 0, 3 2 ' : ' - "0 ( " ) II ~ II " ' " ,1 % " ; 0 ,I " ~ II ' . . . . . ,\ ';X J \\ 0 \\ Y~\ O \~ ' \ \ ': : : : : ::: : : :: : :: : , , . 2; '~~ - - - ~" t ~:c ". . PR O P O S E D AR R O W H E A D R I D G E SU B D I V I S I O N co u . - c s . CI f ... ",, " , 1 0 0 .. . . . , . . . ' " - L o c r K 0 = QI . - T CI f I X 1 D c S D o s " , 1 I c S o: c D " r 8 ' l " -- - - - -- . . " " . " ' . - ' - " -'" "" , .. . . . - aT : o. + : C X E D ; t ? " . =! ' 1 \ L o .. . . I ~S lI l T ! D A n : J " " , . -" \ A I I R O - . . o H 2 O ; A - ( " " - " I 1 - " I I \ C R A - C S \ " 2 0 ~A S ( o- " T ~" ' " ' " " , - ' " ' 1 : 3 2 : 3 2 , . . . . s ; OA r t : OA r t : HI G H L A N D S , I N c . -- ( - 12 j 27 1 2 6 - - - -- " "' - - - - ' - . . - - - - - . . En g i n e e r i n g N o r t h W e s t , LL C 10 2 2 1 W E S T ~ E i ! A I J ) Sl J I T E I 4 ( ) BO x . IO A H O a 3 7 C 4 (2 0 6 ) . 3 7 5 - AR R O W H E A D , , , , '; ; : ' - - eQ ~ ~ B = R D ~ r c : : : : : : - " - / , , - / / , / I I I I I I ( ( I I I I I I , I , \ , \\ ' , '" " " ' ,, - :: : : : ' , ' ", , - "( " " \ , \\ \, , , , I I : I I I I I I I I I I I I I I J I J I J , J J ( I I I I , I I r J 1 : ' \ ' \ , , I . \ , . SC A L E : " ~ , 4 0 0 -- - .- - - - + ~ ~ , 1'1 oo - on . -- - - - - -- - - EX H I B I T . - i: f " - - - -- - - - WA T E R TA N K R O A D I S H E E See attached, EASEMENT AGREEMENT - 7 062705 1632 2008c EXIllBIT C- Engineering North West, UC 10221 West Emerald, Suite 140 Boise, Idaho 83704 (208) 376-5000 . Fax (208) 376-5556 Project No. 00-011-Date: 03-08-2001 ARR 0 WHEAD WATER TANK AND WATERLINE EASEMENT EXHIBIT C- An easement running across a portion of the NE 1/4 of the NW 1/4 and the NW 1/4 of the NE 1/4 of Section 27 r 4 N., R. 2 E., B.M., Ada County, Idaho, more particularly described as follows: Commencing at the Section corner common to Sections 21 , 22, 27 and 28 of said T.4N.2E; Thence South 880 47' 48" East , 2076.81 feet on the section line common to said Sections 22 and 27; Thence South 10 12'12" West, 975.83 feet to a point on the centerline of Cartwright Road, said point being the REAL POINT OF BEGINNING of a 20.00 foot wide easement, beirig 10.00 feet on each side of the following described centerline; Thence South 89039' 18" East, 45.67 feet; Thence South 44039'18" East, 111.93 feet; Thence South 890 39'18" East, 163.87 feet; Thence North 500 14'35" East, 208.09 feet; Thence North 72044'35" East, 57.68 feet; Thence South 84045'25" East, 80.53 feet; Thence South 620 15'25" East, 103.06 feet; Thence South 28030'25" East, 113.62 feet; Thence South 51000'25" East, 161.33 feet; Thence North 81051 '36" East, 203.76 feet to a point near the westerly side of a water reservoir, said point being the point of terminus of this 20.00 foot wide easement centerline. The side lines of this easement are to be extended or shortened to create a continuous 20.00 foot wide strip ofland. Said point is also the POINT OF BEGINNING Anuwbcad Water Tank & Waterline Easement EXC-Ldoc Page I of2 of the following d~cribed easement surrounding the above mentioned water reservoir and its overflow piping; Thence South 35000'00" West, 45.25 feet; Thence South 55000'00" East, 58.00 feet; Thence North 35000'00" East, 93.00 feet; Thence North 55000'00" East, 38553 feet; Thence South 35000'00" West, 15.00 feet; , Thence South 55000'00" East, 32753 feet; Thence South 35000'00" West, 32.75 feet to the real point of beginning. Arrowhead Watc:rTank & Waterline EasemCl"lt EX C-l'.doc PREPARED BY: Engineering NorthWest, LLC James R. Washburn, P. Page 2 of2 '\ \ . " "\ ' \ '\ \ " "\ ,\ \" \ \ \\ \ \ \I \ \ I \ I \ \ \ I I \ \ I I I I I e8 ' ... 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"'- -- - - - - - - -- - - - - - - -- - - - - - - ~- ' PR O P O S E D AR R O W H E A D R I D G E SU B D I V I S I O N "C S I : _ . - : : s . .. . . . . . _n o o ~. SM A u . . . , . . II ( U S E D .. . . . . . .. . . . . . e r r . . . Q1 D o S I D c S OF PI I O . D : T f X D " T 11 1 ' 0" " - !I T : CO ( om !I T : DA ~ ER i D. ~ o; : ; r : -- - - - - - - -- - - - - - - - - - . - - - - -- - t: - X H I 8 1 " f - - e- . - l- - - _ n 00 - 0 1 1 , - - -- ' 0 _ - -- - - - - - - -- - n - - - _ - - - - -- - - - - - - - .. . . . '0 2 2 ' ' O E : S T 0i E R A I . D SU I T t : \ 4 0 Ba S E . I D A H O a ; p o . (2 0 8 ) J 7 I I - AR R O W H E A D En g m e e r i n g N o r t h W e s t , L L C SH E i WA T E R L I N E & FA C I L I T i E S ;; . , . I II r ' ! D A I I : " ' t V - "'- ! - .: . , . A " , , - o D H2 O r. - rO O - ' T 1 - Q ' 1 j \ D A . .- o G S \ H 2 D ~ S f ~r -= ' _ 0" " , , J- ; i - O 1 ' 2 0 2 2 : 0 5 , ~ .. . S f See attached, EASEMENT AGREEMENT - 8 062705 1632 2008c EXIDBIT Engineering North West, LLC 10221 West Emerald, Suite 140 Boise, Idaho 83704 (208) 376-5000 . Fax (208) 376-5556 Project No. 00-011-Date: 03-08-2001 REVISED ARROWHEADW ATER TANK ROAD EASEMENT ACROSS CLAREMONT PROPERTY EXHIBIT C- A 50 foot wide easement, being 25.00 feet on each side of the following described. centerline, and lying in the NE1/4 of Section 27, TAN., R.2E., B.M., Ada County, Idaho more particularly described as follows: Commencing at the N1I4 corner of section 27, T.4N., R.2E., from which the section corner common to Sections 21 , 22, 27 and 28 of said TAN., R.2E., bears Nort1. 88047'48" West, 2580.22 feet distant; Thence from said NI/4 comer, South 27 051 '56" East, 1202.94 feet to a proposed water tank site, said point being the REAL POINT OF BEGINNING of this easement centerline; Thence South 55000'00" East, 100.06 feet; Thence reversing direction, North 55000'00" West, 60.00 feet; Thence North 31049' 54"East, 146.75 feet to a point of curve; Thence 50.39 feet along the arc of a curve to the left, said curve having a radius of 1 00.00 feet, a central angle of 28052' 15" and a chord distance of 49.86 feet, which bears North 17023 '47" East; Tnence North 2057'39" East , 184A5 feet to a point of curve; Thence 35.32 feet along the arc of a curve to the right, said curve having a radius of 150.00 feet, a central angle of 13029'35" and a chord distance of 35.24 feet, which bears North 9042 '27" East; Thence North 16027' 14" East, 50.17 feet to a point of curve; Thence 57.02 feet along the arc of a curve to the left, said curve having a radius of 65.00 feet, a central angle of 500 15'41" and a chord distance of 55.21 feet which bears North 8040;40" West; Revised Rood.doc; Exhibit 2; Desc.doc Pag~ I Thence North 33048'33" West, 121.10 feet to a point of curve; Thence 65.09 feet along the arc of a curve to the right, said curve having a radius of 80.00 feet, a central angle of 46037' 13" and a chord distance of 63.31 feet wruch bears North 10029'57" West; Thence North 12048'40" East, 51.38 feet to a point of curve; Thence 66.24 feet along the arc of a curve to the left, said curve having a radius of 98.72 feet, a central angle of38O26'29" and a chord distance of65.00 feet wruch bears South 83035'26" West; Thence reversing direction and returning along and beyond the above curve 132.48 feet along the arc of a curve to the right, said curve having a radius of98.72 feet, a central angle of76O53'07" and a chord distance of 122.76 feet which bears South 770 11 ' 15" East; Thence South 33048'33" East, 163.38 feet to a point of curve; Thence 60.15 feet along the arc of a curve to the left, said curve having a radius of 100.00 feet, a central angle of34O27'56" and a chord distance of 59.25 feet wruch bears South 51 002'31" East; Thence South 680 16 '29" East, 476.04 feet to a point of curve ; Thence 170.34 feet along the arc of a curve to the left, said curve having a radius of 100.00 feet, a central angle of 97035' 41" and a chord distance of 150.48 feet which bears North 62055'40" East; Thence North 14007'50" East, 73.08 feet to a point of curve; Thence 43.98 feet along the arc of a curve to the right, said curve having a radius of2DO.00 feet, a central angle of 12036'03" a..'1d a chord dista..'1ce of 43.90 feet, which bears North 20025 51" East; Thence North 26043 '52" East, 88.17 feet to a point of curve; Thence 111.04 feet along the arc of a curve to the right, said curve having a radius of278.77 feet, a central angle of22O49'22" and a chord distance of 110.31 feet, which bears North 38008'33" East; Thence North 49033' 14" East , 124.32 feet to a point of curve; Rc:vised Road-doc; Exhibit C-2; Dc:sc.doc Page: 2 oD Thence 174.97 feet along the arc of a curve to the right, said curve having a radius of 200.00 feet, a central angle of 50001'36" and a chord distance of 169.45 feet, which bears North 74037'02" East to a point of reverse curve; Thence 211.52 feet along the arc of a curve to the left, said curve having a radius of297.00 feet, a central angle of 40048'T' and a chord distance of207.08 feet, which bears North 790 16'41" East; Thence North 58052'32" East, 125.36 feet to a point of curve; . Thence 46.20 feet along the arc of a curve to the left, said curve having a radius of 200.00 feet, a central angle of 130 14'08" and a chord distance of46.10 feet, wlrich bears North 520 15'28" East; Thence North 45038'24" East, 185.33 feet to a point on the section line common to said Sections 22 and 27, said point being the point of terminus of this centerline. From said point the N 1/4 corner of said Section 27 bears North 890 14'05" West, 2288.37 feet distant The sidelines of this easement are to be extended or shortened to create a continuous 50.00 foot wide strip ofland. PREPARED BY: Engineering NorthWest, LLC James R. Washburn, P. Revised Road.doc; Exhibit C-2; Dcsc.rioc Page: 3 SC A L E : 1 a 40 0 / " / " /; ; ; / - - - := = : e a ~ ~ 8 = e ~ r c ~ : : : : - - j , , I , - I I I I I J I I I , I I I I I I , \ \ ,, ," ' . \ -\ ', ', ' ,, - , " 21 1 2 2 Za 1 2 7 + - - - - \. ', ,\. \ . , \\ \, \\. \ \. I , \ HI G H L A N D S , J N c . 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I G o . a O " I " 5 0 . J9 " N ! 7 - ~: r ' 7 " E 4 9 . 86 - 1 2 9 - 52 " 15 " C- i ! ! 1 5 0 . 0 0 " 1 J J 2 ' IN i J 9 " 4Z " 2 7 ' ' " 35 . 2 0 ' I I J - Z9 ' 3 5 ' (- 3 : - 55 . 0 0 - '5 7 _ 02 " " ' ) S - 'O ' 40 " I I I " , - 2 1 ' 1 5 0 - 15 ' 47 " C- o r 30 . . C O " , 5 5 . 0 9 " IN ; 0 - Z 9 " 5 7 " I I I 5 =0 0 0 & 6 " J7 " : J - S 7 7 " 11 ' 15 ' E 12 Z - 7 6 ' 76 - ::3 " 07 " C- S ' , * , . T2 - '6 6 - 24 " IS 9 3 " J5 " 5' I I 55 . 0 0 ' 1 3 S - '5 " '9 " 7 ' 9 S . - '! . & . " " " /N 5 7 " 5 S ' O' 11 1 5 5 - 00 ' I S - ' ' JS - .: - " J 1 1 0 0 . 0 0 " s o . ! 5 - IS 5 1 " '" = - 9 . "5 ' ,J 4 " ' 7 " 5 6 - c- , 11 0 0 . a O ' I1 7 0 . J " ' N ~ - 55 ' C O ' € 15 0 . 4 S ' 1 9 7 - J5 ' 4 \ - ~: i ~ ! :~ : : . 3 _ :: :6 ~ J j : ;'1 ~9 0 ;, :~ ~ : ~ ; : C- ! 2 ! 2 ! X l c a - 1 7 . , ' F " ;N 7 4 - 3 7 ' 02 ' ~ 16 9 . o S ' S O ' 07 " 3 6 - (: - 1 3 1 2 ' 1 7 , 00 " 21 1 . - 'N 7 9 - 16 ' 0' " ~ 01 1 ' 14 O " oS - C- ! 4 ! 2 ! J 0 . a O - 1 " ' 6 - D' ;o ~ - - i ~ ' 29 " 46 , \ 0 ' \3 " I " ! I B " 1Io € s I : Q I t A . c s . OI l -- - -- ~ . ~ MJ T I I ( US E D I .. . _ T 0lI l OF n. s i " I O Q . L C r Da J " T . I I T I I I I h - '- - - - - - - - - _n - - . - - - I- - - - -- - - ,~ " " . . OA . . : - - - - -. . . -, . - - .. - - -- - - -. . - "'- , .; v a , . . , .1 . "" . - OA ~ -,- - - - . - .. - - OE c x m 8 " '0 2 2 ' W E S T O I € n A l D - - . ' EX H i 8 1 T -- - - -- 0 0 ' 01 1 - D. " " OA f ( , En g m e e r i I l g N o r t h W e s t , LL C SU I T E , ~ AR R O W H E A D =I ' I I . E ; D. f ( , BO I S E . I D A H O 8 . J 7 0 4 SH E E T I cO . 0E \ 0 f S 0 ' 0 S .lI T Q. o l ' ( . , - DA T f ' - (2 D 8 ) ~ 7 6 - s0 0 0 .. . a " " " " " " " ~. . ' " ,. . . ~ . ~ "" " " " ' a . . - = w ' " = , - -. - - ,. ., ~ - . o OT . . . . . 1 m . . . . See attached. EASEMENT AGREEMENT - 9 062705 1632 2008c EXHIBIT D Engineering North West, UC 10221 West Emerald, Suite 140 Boise, Idaho 83704 (208) 376-5000 . Fax (208) 376-5556 Project No. 00-011-Date: 03-08-2001 REVISED ARROWHEAD WATER TANK ROAD EASEMENT ACROSS HIGHLANDS, INe. PROPERTY EXHIBIT D A 50 foot wide easement, being 25.00 feet on each side of the following described centerline, and lying in the SEI/4 of Section 22, and the SW1I4 of Section 23, all in TAN., R.2E., B., Ada County, Idaho, more particularly described as follows: Commencing at the Nl/4 corner of section 27 , TAN., R.2E., from which the section corner common to Sections 21 27 and 28 of said TAN., R.2E., bears North 88047'48" West , 2580.22 reet distant; Thence from said N1I4 comer, South 890 14'05" East, 2288.37 feet to a point on the section line common to said sections 22 and 27, said point being the REAL POINT OF BEGINNING of this easement centerline; Thence North 45038 '24" East, 11.19 feet to a point of curve; Thence 133.08 feet along the arc of a curve to the left, said curve having a radius of 200.00 feet, a central angle of 38007'30" and a chord distance of 130.64 "feet, which bears North 26034'39" East; Thence North 7030'54" East, 230.84 feet to a point of curve; Thence 157.41 feet along the arc of a curve to the right, said curve having a radius - of 100,00 feet, a central angle of900 11 '18" and a chord distance of 141.65 feet, which bears North 52036'33" East; Thence South 820 17'48" East , 205.42 feet to a point of curve; Thence 152.26 feet along the arc of a curve to the left, said curve having a radius of 100.00 feet, a central angle of 870 14' 19" and a chord distance of 13 7 .97 feet which bears North 54005'02" East; Thence North 10027'53" East, 130.75 feet to a point of curve; Revised Road.doc;Exhibit D; Desc.doc Page ! of2 Thence 64.16 feet along the arc ofa curve to the right, said curve having a radius . of 100.00 feet, a central angle of 36045'39" and a chord distance of 63 .06 feet which bears North 28050'42" East; Thence North 470 13 '31" East, 9 1.27 feet to a point of curve; Thence 136.73 feet along the arc of a curve to the right, said curve having a radius of 100.00 feet, a central angle of 78020'31" and a chord distance of 126.33 feet which bears North 86023'47" East; Thence South 54025'57" East, 55.87 feet to a point on the centerline of Bogus Basin Road, said point being the point of tenninus of this centerline, from which point the said Nl/4 comer of Section 27 bears South 77035'06" West, 3179.71 feet. The sidelines of this easement are to be extended or shortened to create a continuous 50.00 foot wide strip ofland. PREPARED BY: .. , ~ngineering NorthWest, LLC James R. Washburn, P. Revised Road.doc;&hibit D; D=.doc Page 2 of2 " ,, '\ \, ,, ,, ,\ ''\ ' \ "\ \ , ,, , ~Q . . P " : ' - 11 " ; 0 11 - ' 1' %II ~ II C i \~ ~ II j O \. \ 0 ~\ ~ , \ \~ I \ ' ': : : : : : : : : : : : :: : : ; : , , . r- : ~2 -- - ~~ . r . : a PR O P O S C : O AR R O W H E A D R I D G E SU B D I V I S I O N ." . SC A L E : 1 . . 40 0 .. . :I "J - a : I - , , - , . ' ~ , , - " _ /: : : : a = ~ . - c . . . . - ;. . - , . ,. c - " / ~B - o~ ~ - / / 1- . / - "0 ' " - - -- - - 1 ' ~ / / - H I O " 2 T 5 . r E ~ ,' , 1. 3 0 . . 7 5 " - - . . 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O O " J6 . 7 3 ' IN ; j 6 " ~; : r 4 7 " lL ! ( ~ ~ U" : 7 e - 2S ; " J'" ~~ ~ =. . . ~ ~ " 5 I U U . ;! ' f Z u m I I I . I I _.- .. . q - . h_ . . . . . . . .- . - .. . . .. . 9'i ' . .- . O;, ; r ; : . - _ . . . - -- . ._ _ n " Jo e ~ -, . -- . . .. . . . . - . . . . . OA n : : - . . - . . . - - . ..- . . 00 f : ( ) ( € \ 1 . . " DA n : : 1( ) 2 2 1 w E S T o . E R A l D EX H I B I ,0 0 - a 1 1 DA ~ En g i n e e r l 1 1 g N o r t h W e s t , Sl. J l T E 1 4 0 AR R O W H E A D co c o F U : D4 ! E , Ba s e : . 1 0 . - . . 0 1! J 7 0 4 SH E T DA f t . . , \lA I C (2 0 8 P 7 6 - ~ .. . " ,. n . "' - , - ~E A ~2 0 '- - ( 0 0 -" 1 1 - " "" " " " " " " " " 0 =.c : - =_ . ~ , ~ ~ . . . "'" EXHIBIT C Refund Calculation CALCULATION OF REFUNDS FOR SPECIAL FACILITIES Updated for depreciated plant at 12/31/2001 and current ROR and expenses United Water Idaho Special Agreements Water Consumed (cet) Revenue Projected Source & Storage Investment Net of Depreciation 1. Investment Depreciable Source & Storage 1 a. Investment 1 b. Per Customer Refund 1d. Meters: $100 Total Investment for Depreciation 1 g. Purposes 1 h. Supported Investment 100 200 300 400 500 600 700 800 900 1000 $232 $350 $467 $584 $701 $819 $936 $1 053 $1 170 $1 288 $141 $282 $423 $564 $705 $846 $987 $1 128 $1 269 $1,410 $192 $383 $575 $767 $958 $1 150 $1 342 $1 533 $1 725 $1 917 $285 $807 $1 315 $1 820 $2 325 $2 828 $3,329 $3 829 $4 327 $4 824 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $577 $1 290 $1 990 $2 687 $3 384 $4 078 $4 771 $5,462 $6 152 $6 841 $526 $1 189 $1,838 $2 484 $3,130 $3,773 $4 416 $5,057 $5,696 $6,334 $232 $350 $467 $584 $701 $819 $936 $1,053 $1,170 $1,2884. Total Revenue Received 5. Increase in Expenses Operating and Maintenance 5a. Expenses $154 $146 $154 $165 $176 $187 $198 $210 $221 $234 $246 Ad Valorem $20 $32 $43 $54 $65 $76 $87 $98 $109 5b. Depreciation (g) 3.1 %$18 $40 $62 $83 $105 $126 $148 $169 $191 $212 6. Total Increase in Expenses $173 $214 $258 $302 $345 $389 $433 $478 $522 $567 7. Income Before Income Taxes $60 $135 $209 $283 $356 $429 $502 $575 $648 $721 8. Debt (~53.54% of net invest)$309 $691 066 $1,439 $1 812 $2 183 554 $2,924 $3 294 $3,663 9. Interest on Debt(~ 6.675%)$21 $46 $71 $96 $121 $146 $171 $195 $220 $244 10. Taxable Income $39 $89 $138 $187 $235 $284 $332 $380 $428 $476 11. Income Tax ((W 40.20%)$16 $36 $55 $75 $95 $114 $133 $153 $172 $191 12. Income Available For Return $44 $99 $154 $208 $262 $315 $369 $423 $476 $529 357 13. Return % 8.357% 8.357% 8.357% 8.357% 8.357% 8.357% 8.357% 8.357% 8.357% 14. Supported Investment $526 189 837 $2,484 $3 130 $3 773 $4,416 057 $5 696 $6 334 Water Consumed (ccf) Proposed Refund SPECIAL FACILITIES AGREEMENT - 6 100 $300 200 300 400 500 600 700 800 900 1000 $800 $1,300 $1,800 $2 300 $2 800 $3 300 $3,800 $4,300 $4,800