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HomeMy WebLinkAbout19921014.docx MINUTES OF DECISION MEETING October 14, 1992 - 10:00 a.m. In attendance were: Mike Gilmore, Randy Lobb, Judy Stokes, Carol Cooper, Gary Richardson, Keith Hessing, Jack Taylor, Stephanie Miller, Belinda Anderson and Myrna Walters.  Also in attendance were Woody Richards, Attorney at Law and Pat Stewart and Jim Wozniak of U. S. West. Items from the October 14, 1992 Decision Meeting Agenda were considered as follows. 1.  Mary Friddle's October 7, 1992 Decision Memorandum re:  Refund Policy. Commissioner Smith went over Mary Friddle's recommendations. Commissioner Miller said he thought we should comply with whatever the auditor says.  Preference would be to give them the money entitled without their requesting it. **Decided on $10 as the lower number.  Also grant it if it is requested by phone. Mike Gilmore said he thought this was a rule matter.  Legislative Auditors don't care if they get us in trouble with the State Auditor.  Said there is a statutory guideline on refunds. Commissioner Miller said he thought Mike Gilmore's suggestion about this being in a rule is good. Commissioner Smith said that way it goes through the legislature. Mike Gilmore said it can say its their recommendation not ours. **Decided it should be a rule change.  Will work on getting it in as a rule. 2.  Belinda Anderson's September 30, 1992 Decision Memorandum re:  U S West's Request to Withdraw SCOOPLINE, Advice No. 92-9-S to be effective October 11, 1992. Approved. 3.  Eileen Benner's October 5, 1992 Decision Memorandum re:  USW Advice No. 92-1; Credit of 80 cents on Zone Chg. Approved. -2- 4.  Randy Lobb's October 5, 1992 Decision Memorandum re:  Proposed Submetering of Hollibaugh Mobile Estates for Water Service from Boise Water Corporation. Commissioner Smith asked what we are going to do with all these water companies? Discussed Boise Water's charge on Proposal No. 1. Randy Lobb said he could just roll increased cost into his space rent.  With submetering could see what the master meter recorded. Commissioner Miller said even though he was sure Hollibaugh is a straight forward guy and a good citizen, and good proprietor of this little operation, that with submetering there is some potential for customer complaint.  If you had the utility that has the relationship with the customer, instead of intermediary mobile home park owner, there may be a lot of variances...seems it is better to have the utility as the entity that interacts with the customer. Randy Lobb said he agreed with that but read what the current tariff says.  Thought the residential escrow would be the way to go in this case.  Mr. Hollibaugh is concerned about cost increases.  If you are going to use a master meter you might as well get accurate readings.  If we want to require the tariff change for residential escrow, that is a different issue. Commissioner Nelson said he was wondering how current this tariff is considering the different types of residential living parks there are today.  Would this tariff apply to those? Randy Lobb said the tariff only speaks to mobile home parks.  In this case the mobile home park owner owns the lots and leases them.  It could be that the tariffs are out of date.  The costs are higher for submetering for water.  Maybe we should look into it. Commissioner Nelson asked - he was going to pay the cost of submetering but saves the cost of the connection charges? Randy Lobb explained what Hollibaugh is going to do. **Bill Eastlake, Dave Schunke, Don Oliason and Terri Carlock were in attendance at this time. -3- Commissioner Miller asked what the alternative is? Randy Lobb explained that.  He charges all residents the same amount.  This just accurately allocates the useage. Beverly Barker explained that in these situations there are ultimately disputes and we don't have their records.  Hate to see us get into this in the water industry. Commissioner Nelson asked if there are others on the Boise Water system that submeter? Randy Lobb said he has never had such a complaint. Dave Schunke said a long time ago he had a complaint about a mobile home because the owner was adding on other charges. Randy Lobb said this guy is concerned because their bills are tied to useage.  This is also for accurate allocation of sewer costs.  One of the problems if you change the tariffs to individually metered, it puts Mr. Hollibaugh at a disadvantage.  He has higher costs.  It ends up being more costly comparing himself to other parks.  They have to hook up to Boise Water. Commissioner Smith asked - in this submeter scenario, are they going to get a portion of the master metering bill or what the other Boise Water customers pay? Randy Lobb said a portion of the master metering. Commissioner Smith said she thought we ought to let him do this. Randy Lobb said he may not do it either, because of the costs.  Mr. Hollibaugh is pursuing this to get the issue cleared up if this is the route he takes. Commissioner Miller said the only remaining question is if we say he isn't a regulated utility, how do we treat customer complaints? Randy Lobb said if it was associated with individual submetered readings, think we could more easily compare the master meter reading and the customer reading and see if it was appropriately passed through.  Would have more control than flat rate. Mike Gilmore said you can investigate a customer complaint to see if he is handling it properly. -4- Okayed Hollibaugh's request. 5.  Brad Purdy's October 7, 1992 Decision Memorandum re:  Case No. ISL-W-92-1 In the Matter of the Island Park Water Company for Expansion of Certificated Area and Revision of Tariff to Provide for Reconnect Fee. Commissioner Smith said she had a legislative contact on this. Commissioner Nelson said Commissioner would have certified this in our original case but because of the forming of the association, we didn't. Jack Taylor said the tariff revision came about as both disconnect and reconnect.  Explained how the shut-off works.  You have to get a backhoe in, then disconnect, etc.  Then they would have to do the same thing for a reconnect. Commissioner Nelson said they put this system in without any shut-off valves. Jack Taylor said it has credibility if you consider it is a disconnect and reconnect. Commissioner Nelson said he thought he should be required to put in shut-offs. Commissioner Smith said she thought the certificate question is separate from the fee question.  There is no cost data. Randy Lobb said he thought this was a procedure question at this time. Commissioner Miller said he thought that on the certificate matter, we should do it under modified procedure and see what protests we get and then decide if there is enough to justify a hearing.  With respect to the reconnection fee, the proper procedure would be for them to file a tariff with support information that would justify it.  Then we could review it as a tariff filing. Commissioner Smith seconded that. Commissioner Nelson agreed. 6.  Randy Lobb's October 8, 1992 Decision Memorandum re:  Hayden Pines Water Company Avondale Water Quality Complaint:  Compliance with Commission Order No. 24469. -5- Commissioner Smith said she had a conversation with Art Sistak.  He says the Commission is not handling this right.  Should identify the problem and say - you haven't done that - can't go with No. 3 then.  Thought we were not being tough enough with Ford.  Don't know what to do about this.  First thing to decide is if the proposal from Water Maid is compliance.  Asked Randy Lobb if it was compliance?   Randy Lobb said it was not. Commissioner Nelson read from Randy Lobb's memo.  Said Woody Richards says the company was recommended to Hayden Pines by Connor Consulting Engineers.  Asked Randy Lobb if he talked to Connor? Randy Lobb said yes.  Explained one of the key things here is Water Main's proposal was at no charge.  Only thing they charged for ws the chemical.  They sell the chemicals so they go in and the testing they do is to document that there is something in the system.  Then they recommend the amount of sequestering. Commissioner Nelson said he thought in the testing the iron and magnesium was low. Randy Lobb said they said is it lower than what they usually see in problem systems. Commissioner Smith said she thought we weren't sure that this was the problem and that sequestering was the route to take.  Thought he was to get a consultant to see what the problem actually was. Commissioner Nelson said this is the problem we have been attacking in years past.  Maybe it is something besides iron causing the problem. Randy Lobb said he thought this may be an alternative an engineer would recommend.  Nobody has gone in and looked at it.  Uncertainly was the reason for the consultant. Commissioner Smith asked - do we want him to go ahead and do this and get someone qualified to find the problem and forget the consultant? Randy Lobb recommended going ahead with the sequestering.  Water Mail can check to see if it is helping.  Think it would be a valid option to continue to require him to hire someone to assess the system but go ahead with the sequestering.  A consultant to asses the system will take time.  At least there would be something begun much sooner than that. -6- Commissioner Smith said that is what she would like to do.  Asked if Mr. Ford was unhappy with the order? Randy Lobb said Mr. Ford was unhappy about the costs. Commissioner Smith said in view of the costs, tell him fine, go ahead with Water Maid but that is not what we had in mind and you really need to get someone to do an evaluation.  We can do it as clarifying the order. Commissioner Nelson asked - three years ago when we had our hearing and people were taking the water down for testing, didn't we know what those results were? Randy Lobb spoke to putting in new wells, etc.  Said DEQ doesn't enforce standards. Gary Richardson spoke to calls he has taken about whether or not Mr. Ford has complied with the previous order. Commissioner Miller said it did appear that the order was very clear.  Said it did appear that Water Maid would not be compliance.  Said he was not one for overbearing regulation, but we have gone a long ways with Mr. Ford.  Gave the history of the situation.  It is getting very frustrating to him that this company cannot read our orders and comply with them.  So letting them go ahead with this is not the way to go.  Think we should say this is our order - you didn't do it. Commissioner Smith said she didn't think it was letting them off the hook but if at the same time they are doing this other, feel like if we tell him don't do Water Maid and hire a consultant, it will delay it further. Commissioner Miller said if we let him go ahead with this, and say oh, by the way, you didn't comply with the order... Commissioner Smith said even if you say you have to comply by such a date and if you don't comply it will cost you $2,000 a day? Commissioner Miller said he wants a relationship where things are conducted in a business-like manner.  It is very frustrating to him that we can't seem to develop this relationship.  Developing this relationship is equally important as getting water quality solved. -7- Randy Lobb said he didn't think the customers are going to accept anything less than perfection.  Don't think you are going to get that here.  They are going to continue to say - hire a consultant.  Said Connor had nothing to do with it except getting them Water Maid. Woody Richards said Western Water Management was mentioned by Mr. Ford.  He said they did some testing also. Randy Lobb said he never mentioned them to him or in his response to the Commission. Commissioner Smith asked other Commissioners if they wanted to issue an order saying you have not complied with our order and give him so many days to say he has or has not come into compliance?  Don't want money spent on litigation, want it spent on the water quality. **Lori Mann was in attendance at this time. Mike Gilmore said if he wants to avoid that he does have a safe harbor to do that. Commissioner Miller said he didn't think there is any question that he didn't do the testing required.  Want an analysis of the water and haven't seen one. Commissioner Smith said we agreed he did not do what we wanted him to do in our previous order.  Do you want to give him more time to comply or to say you haven't complied and start proceedings? Commissioner Nelson said - give him a couple of weeks to comply and say then we will start sanctions.  He was two weeks late in the first instance. Commissioner Miller said he guessed he would give him time to comply or his preference would be that he not take any action in the meantime or if you want to authorize Water Maid, guess that is giving a hope that maybe it will do something.  Guess that is okay.  That wouldn't be his preference. Commissioner Smith said today is the 14th - if an order can give him until October 30 to prove he has complied or come into compliance and point out that this is in compliance (the Water Maid thing), tell him this is not what we had in mind.  If you want to ahead, fine, if not fine, we are not going to make you.  He has the discretion to do it if he wants.  It is not compliance with the order and what we had in mind. -8- Commissioner Miller said that would be fine with him if we neither approve or disapprove Water Maid.   7.  Randy Lobb's October 8, 1992 Decision Memorandum re:  Revision of Approved Eagle Water Tariff Schedule No. 5. Okayed. 8.  Randy Lobb/Terri Carlock Decision Memorandum re:  Capital Water Company Line Extension Purchase Agreement; Case No. CAP-W-92-1. Commissioner Nelson asked why this should be CIAC? Terri Carlock explained.  Think it will be looked at as purchase below costs and will take difference between replacement cost and what they paid for it and that will be the amount.  In order to avoid that, they will have to show there is public benefit, not solely for the developer.  It is a discounted value from what they would have received from the line extension refunds. Commissioner Smith asked - can't they turn it into something else? **Randy Lobb was in attendance at this time. Commissioner Nelson said it didn't have anything to do with cash flow or discounted cash flow. Randy Lobb said he paid $146,000 to put it in.  It is valued at $37,000. Stephanie Miller explained staff's concern. Commissioner Smith said ratepayers should be held harmless. Terri Carlock said it may be challenged. Commissioner Miller said principle that ratepayers shouldn't be burdened, money can be gotten from the developer if he has to. Terri Carlock said the developer could pay.  Said she hadn't seen the contracts.  They may have to challenge it in the future.  Her impression is they would work something out if there is additional tax but legally don't know what the company could do to force them to pay after the fact. -9- Commissioner Miller said that was his concern.  Want to make sure it could be enforced. Terri Carlock said - could have company owners pay if the developer doesn't.  Don't know if it would be a burden on the ratepayers. Okayed the proposal.  Will need an order. 9.  WWP-E-92-5/WWP-G-92-2 - Request of Washington Water Power Company for an Accounting Order. Commissioner Nelson said he thought there were some problems with the WWP proposal.  Think we need to take a harder look before we approve it. Commissioner Smith asked if a hearing was necessary? Commissioner Miller said it would be helpful.   Decision was that a hearing will be held in December, in Boise. Dated at Boise, Idaho, this 18th day of November, 1992. Myrna J. Walters Commission Secretary 0125M