20151001Land Conveyance.pdf

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An IDACORP Company
PATRICKA. HARRTNGTON
Corporate Secretary
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September 28,2015 i&AHS FL'[.ii,-:
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Donald L. Howell
Lead Deputy Attorney General
ldaho Public Utilities Commission
P.O. Box 83720
Boise, ldaho 83720-007 4
Re: ldaho Power Company Land Conveyance
Dear Mr. Howell:
ldaho Power Company ("ldaho Power" or "Company") plans to sell certain lands
and easements to the Ada County Highway District ('ACHD") for ACHD's Franklin
Road-Five Mile Road intersection improvement project ("Project") in Boise. ACHD and
Idaho Power previously entered into a Right-of-Entry Agreement ("ROE Agreement") for
the Project, which recognizes ACHD's right of condemnation and authorizes ACHD to
enter the Company's property for construction of the Project. ACHD has substantially
completed the Project, and ldaho Power and ACHD have identified the lands and
easements to be conveyed by ldaho Power to ACHD for the Project, along with the
proposed compensation levels for the lands and easements, and for the related
"lmprovements" and "Cost to Cure ltems" associated with the Project, as discussed
below.
The Idaho Power property sale to ACHD would include the conveyance of fee
lands (18,994 square feet), a permanent slope easement (9,778 square feet), a wall
maintenance easement (1,987 square feet), and a temporary construction easement
(7,710 square feet), all as depicted on the drawing attached hereto as Exhibit A
(collectively, the "Propefi"). The Propefi is located at the northwest corner of the
Franklin Road-Five Mile Road intersection, and is part of ldaho Power's larger 53.43-
acre parcel which includes the Company's Boise Operations Center building and
Mechanical & Engineering building and related facilities (the "BOC Property"), also as
depicted on Exhibit A.
Attached as Exhibit B is a copy of the ACHD Compensation Sumffi?ry, which
provides for $230,366.49 in total compensation to ldaho Power for the Project. The fee
land and easement valuations are based on an appraised value of $3.25 per square
foot for the Property, pursuant to an independent appraisal conducted for ACHD by
Hugh T. Pomtier, Certified Appraiser CGA-420, working for Robert C. Williams, MAl,
Real Estate Appraising & Consulting. ldaho Power has reviewed the appraisal and has
determined that it provides a tair valuation for each of the Fee Acquisition ($46,033.00 +
$7,848.75), Permanent Slope Easement ($23,833.88), Wall Maintenance Easement
($4,843.31 ), and Temporary Construction Easement ($2,505.75).
P.O. Box 70 (83707)
l22I W ldaho 5t.
Boise, lD 83702
ldaho Public Utilities Commission
September 28,2015
Page2
The Compensation Summary also provides for additional compensation to ldaho
Power for "lmprovements" and "Cost to Cure ltems" in connection with the Project. The
"lmprovements" include landscaping additions on the Property and the BOC Property,
and the "Cost to Cure ltems" include fencing and materials relocation, to accommodate
the new boundary between the BOC Property and the expanded road right-of-way.
ldaho Power has worked closely with ACHD regarding the "lmprovements" and "Cost to
Cure ltems", including the installation of a retaining wall along the east side of the BOC
Property adjacent to Five Mile Road, to limit the encroachment of the slope easement
on the BOC Propefi. ldaho Power believes that all appropriate steps have been taken
to minimize the impact of the Project on the BOC Property, and that the valuations
included for the "lmprovements" and "Cost to Cure ltems" on the Compensation
Summary are fair and reasonable.
ldaho Code S 61-328 requires that electric public utilities in ldaho obtain ldaho
Public Utilities Commission approval for the sale or transfer of property in ldaho "which
is used in the generation, transmission, distribution or supply of electric power and
energy to the public." ldaho Power does not believe that S 61-328 is applicable to the
Company's proposed conveyance of the Property to ACHD. ldaho Power has
coordinated with ACHD to assure that the Project does not materially interfere with
ldaho Power's operations at the BOC Property, and the sale of the Property will not
impact ldaho Power's utility operations.
Finally, it is important to note that ACHD has the right of eminent domain and
could condemn the Property for the Project if needed. Such an action would likely result
in significant legal costs to ldaho Power and could also result in lower compensation
paid by ACHD than currently offered under the Compensation Summary.
lf you agree with ldaho Power's assessment that the proposed conveyance of
the Property to ACHD as described above would not require Commission approval
under S 61-328, please provide confirmation to my attention at the address above.
ldaho Power will file final accounting entries with the Commission for the conveyance of
the Property to ACHD when the transaction is completed.
Sincerely,
,fr,tilftr4/tu1*^
Patrick A. Harrington l/Enclosures
cc: Terri Carlock, IPUC
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Project Name: Five Mile-Franklin to Fairview
Project No: 702041
Name: ldaho Power Company
R/W Parcel No: 1
T3N, R1E, Sec 10
APN: 51110449504
EXHIBIT.sBtt
COMPENSATION SUMMARY
Fee Acquisition:
14,164 sf @ $3.25 per sf
Fee Acquisition:
4,830 sf @ $3,25 per sf x 50%
Permanent Slope Easement:
9,778 sf @ $e.ZS per sf x75o/o
Wall Maintenance Easement:
1.987 s.f. @ $3.25 per sf x75o/o
Temporary Construction Easement:
lmorovements:
Cost to Cure ltems:
7 ,710 sf @ $3.25 per sf x 10o/o
Earth Work: 399 cy @ $eS per cy
Evergreen Trees: 3 @ 9t,500 each
Plants (Carpet Rose, Fountain Grass)
Turf Grass: 8,000 sf @ $t.65 per sf
Railroad Ties: 140 @ $g.OO per railroad tie
Landscaping Curb: 350 lf @ $2.50 per lf
Asphalt Paving: 2,600 sf @ $3.00 per sf
Gravel Mulch & Weed Barrier
Grass Seeding
lrrigation System
Fencing (Relocation and Temporary): 650 lf
Fencing (Permanent):650 rf
Electric Sign at Entry
Sign Electrical lnstallation Work
Relocate 2 Solar Lights: 2 @ gt00 each
Relocate Material and lnventory (Based on Owners Bid)
Labor and Vehicle Costs
Fencing Adjustments at Retaining Wall (Relocation)
Temporary lrrigation
Main Line lrrigation Repair
$46,033.00
$ 7,848.75
$23,833.88
$ 4,843.31
$ 2,505,75
$ 13,965.00
$ 4,500.00
$ 8,500.00
$ 13,200.00$ 1 ,120.00$ 875.00
$ 7,800.00
$ 10,500.00
$ 2,500.00
$ 10,390.00
$ 17,000.00
$ 25,850.00
$ 5,066.80
$ 2,250.00$ 200.00$ 8,600,00
$ 5,250.00
$ 3,380.00$ 2,285.00$ 2,070,00
Total Compensation. ..$UI0J06-49