20220907Respondent Amended Answer with Exhibits.pdf

AMENDED ANSWER TO FORMAL COMPLAINT - 1
MARK R. FULLER (ISB NO. 2698)
DANIEL R. BECK (ISB NO. 7237)
PAUL L. FULLER (ISB NO. 8435)
FULLER & BECK
410 MEMORIAL DRIVE, SUITE 201
P.O. BOX 50935
IDAHO FALLS, ID 83405-0935
TELEPHONE: [phone]
EMAIL: [e-mail]
EMAIL: [e-mail]
ATTORNEY FOR RESPONDENT
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
DONALD SORRELLS,
Complainant,
v.
SUNNYSIDE PARK UTILITIES,
INC.,
Respondent.
______________________________
)Case No.GNR-U-22-03
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) AMENDED ANSWER TO FORMAL
) COMPLAINT
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COMES NOW the Respondent, by its counsel of record, Paul L.
Fuller, in response to the Summons issued by the Idaho Public
Utilities Commission and the Formal Complaint filed by the
Complainant, and hereby submits an Amended Answer as follows:
1.Respondent, Sunnyside Park Utilities, Inc., (hereinafter
“SPU”) is an Idaho corporation, organized and existing under the
laws of the State of Idaho with its principle place of operation
in the County of Bonneville, State of Idaho, with the principle
purpose of providing non-profit water and sewer service at cost to
select lots in Sunnyside Industrial and Professional Park,
RECEIVED
2022 SEP -7 PM 3:26
IDAHO PUBLIC
UTILITIES COMMISSION

AMENDED ANSWER TO FORMAL COMPLAINT - 2

pursuant to Rules and Regulations adopted by SPU. SPU was formally
converted into an Idaho Nonprofit Corporation on June 10, 2022.
See Statement of Conversion, attached as Exhibit „A‟.
2. Complainant, Donald Sorrells, together with Meri
Sorrells (hereinafter jointly “Sorrells”), purchased Lot 4, Block
4, Sunnyside Industrial & Professional Park, located in Bonneville
County, Idaho (hereinafter “the Subject Property”), on or about
August 6, 2018 from Paul and Stefanie Crockett, as shown by the
Warranty Deed recorded as Bonneville County Instrument No.
1588415.
3. On March 10, 2020, Sorrells transferred the Subject
Property to The Donald Dail Sorrells and Meri Sorrells Living
Trust, dated March 2, 2006, and restated in December 19, 2019, as
shown by Trust Transfer Deed recorded as Bonneville County
Instrument No. 1635301 (hereinafter “The Trust”). Based upon this
transfer, Sorrells is not the owner of the Subject Property as
alleged in the Formal Complaint, para. 1. Sorrells did not inform
SPU of this ownership change.
4. Sorrells‟ Formal Complaint fails to establish, or even
allege, that Donald Sorrells is the duly appointed trustee
authorized to act on behalf of The Trust, or that The Trust has
authorized the Formal Complaint filed herein.
5. The Trust has not applied for or been accepted by SPU as
a customer, and SPU only recently became aware that the Subject

AMENDED ANSWER TO FORMAL COMPLAINT - 3

Property is no longer owned by Sorrells through SPU‟s own
investigations. Sorrells never notified SPU of the transfer of
ownership. Neither Sorrells, nor The Trust, qualifies as a
customer under IDAPA 31.21.01.005.02 and both lack standing to
file a complaint against SPU.
6. The failure of Sorrells to identify the true status of
the ownership of the Subject Property constitutes grounds for
termination under IDAPA 31.21.01.302.01(d) as a material
misrepresentation of the true status of ownership of the Subject
Property.
7. Additionally, the Subject Property is located in an
Industrial and Manufacturing Zone. Pursuant to IDAPA
31.21.01.602.03, the failure of The Trust to apply for service
with SPU upon its acquisition of the subject property constitutes
grounds for termination.
JURISDICTION
8. SPU currently provides water and sewer service at cost
and not for profit to nineteen (19) commercial and industrial
customers, all located in the Sunnyside Industrial and
Professional Park, adjacent to Idaho Falls. Only one vacant lot is
located in the subdivision which could potentially connect to
SPU‟s system in the future.
9. SPU was organized by Kirk Woolf on March 28, 2002, as a
general Idaho corporation, with one share owned by Kirk Woolf, one

AMENDED ANSWER TO FORMAL COMPLAINT - 4

share owned by Doyle Beck, and twenty (20) shares owned by
Sunnyside Industrial and Professional Park, LLC. Mr. Woolf has
since transferred his single share to SPU, to be held as a
treasury share. Mr. Woolf no longer has any ownership or
management position with SPU.
10. On June 10, 2022, SPU conducted a Stockholders‟ Meeting
wherein the Stockholders approved a Plan of Conversion and new
Bylaws in order to convert SPU into a non-profit entity. See
Minutes of Annual Meeting, attached as Exhibit „B‟, Plan of
Conversion, attached as Exhibit „C‟, and Bylaws, attached as
Exhibit „D‟.
11. SPU was formally converted into a non-profit corporation
by filing a Statement of Conversion with the Idaho Secretary of
State‟s Office on June 10, 2022. See Statement of Conversion,
attached as Exhibit „A‟.
12. On June 30, 2022, SPU‟s Board of Directors adopted new
Rules and Regulations governing water service (see Exhibit „E‟)
and adopted a rate schedule (see Exhibit „F‟). The rates were
consistent with rates charged prior to conversion to a non-profit
public utility.
13. Over the years and prior to conversion to non-profit
status, SPU has spoken with various individuals with the IPUC, who
all informed SPU that SPU, even as a general corporation, was not
within the jurisdictional purview of the IPUC based upon its

AMENDED ANSWER TO FORMAL COMPLAINT - 5

limited size. Such communication was as recent as early 2022 and
occurred with both SPU‟s and Sorrells‟ counsel. Based upon these
repeated communications, SPU did not believe that the IPUC was
exercising jurisdiction over this matter, and proceeded
accordingly, including not applying for a Certificate of
Convenience and Public Necessity. Individuals with the IPUC
notified Sorrells‟ counsel of this fact as well, as established by
correspondence received from Sorrells‟ counsel.
14. On April 16, 2002, SPU entered into a Third Party
Beneficiary Utility Agreement with Sunnyside Park Owners
Association, Inc. (hereafter “Owners Association”), which is duly
recorded as Bonneville County Instrument No. 1272911 (hereafter
“Third Party Agreement”). A copy of the Third Party Agreement is
submitted as Exhibit „G‟. Under the Third Party Agreement, SPU is
required to submit notice of any rate change to the Owners
Association and to all users of SPU‟s system. The users are then
allowed ninety (90) days to provide written objection to the rate
change. If after ninety (90) days, not more than half of the
owners have provided written objection to the rate change, SPU may
implement the rate change. If more than half of the owners object
to the rate change, and no resolution can be reached, the issue of
the rate change is submitted to a board of arbitrators, comprised
of one member selected by SPU, one member selected by those
objecting to the rate change, and a third arbitrator selected by

AMENDED ANSWER TO FORMAL COMPLAINT - 6

the first two arbitrators. The arbitrators shall then provide
written recommendations regarding reasonableness of rates. If
objections still continue, any party may proceed with legal
proceedings to determine a reasonable rate. No rate change will be
allowed without compliance with these provisions.
15. No rate change has been made since the Sorrells‟
purchase of the Subject Property.
16. Pursuant to Idaho Code Section 61-104, the term
“Corporation” for purposes of IPUC jurisdiction does not include
any “public utility organized and operated for service at cost and
not for profit….” Based upon this provision, IPUC lacks
jurisdiction over SPU.
HISTORY OF VIOLATIONS AND BASIS FOR TERMINATION
17. On August 23, 2018, while the Subject Property was owned
by Sorrells individually, SPU issued a “Will Serve” letter to
Sorrells, based on representations that Sorrells would install
only two (2) restrooms on the Subject Property, with no other
water or sewer needs. See copy of Will Serve letter attached as
Exhibit „H‟.
18. SPU never entered into any agreement to provide services
to The Trust, and was only recently made aware that Sorrells had
transferred the Subject Property.
19. The Trust has never applied for service from SPU.
20. During October-November, 2018, Sorrells obtained

AMENDED ANSWER TO FORMAL COMPLAINT - 7

commercial building permits from Bonneville County for the
construction of several buildings on the Subject Property, only
one of which was identified as requiring a sewer permit. See
Building Permits 1-5, attached hereto as Exhibit „I‟.
21. Notwithstanding the fact that Sorrells was authorized to
install only two bathrooms on the Subject Property under the
County Building Permit and their agreement with SPU, Sorrells
installed additional connections, including but not limited to, a
washer/dryer connection, an RV septic/water connection, and ten
(10) frost-free hydrants on multiple buildings on the Subject
Property. Such actions constitute grounds for termination under
IDAPA 31.21.01.303.03 for obtaining, diverting and/or using SPU‟s
services without authorization or knowledge of SPU.
22. Sorrells, who is believed to reside primarily in
California, would park an RV inside one of the units located on
the Subject Property and reside in that unit for extended periods.
Use of a commercial/industrial property (I&M-1 Zone) for
residential purposes is a violation of Bonneville County Zoning
Ordinance, Chapter 26, Section 1-2602(1).
23. Sorrells‟ installation of the additional water/septic
connections was not authorized by SPU and was not permitted by
Bonneville County Zoning and Building Department.
24. Following Sorrells‟ connection to SPU‟s system, SPU has
noted repeated instances where excessive discharge was being sent

AMENDED ANSWER TO FORMAL COMPLAINT - 8

into SPU‟s septic system from the Subject Property. SPU notified
Sorrells of these repeated issues, and was routinely assured that
the excessive discharge would be addressed. Such willful wasting
of water constitutes grounds for termination under IDAPA
31.21.01.302.01(f).
25. On or about August 21, 2019, SPU sent a notice of
violation to Sorrells regarding the additional connections, along
with identifying a defective toilet which was discharging
continuous excess water flow into SPU‟s septic system. SPU
requested remediation or services would be terminated. See copy
attached as Exhibit „J‟.
26. On or about September 5, 2019, a second notice was sent
to Sorrells regarding a constant flow of excess discharge coming
from the Subject Property, again requesting remediation. See copy
attached as Exhibit „K‟.
27. On or about February 12, 2021, SPU sent a third notice
of violation of Rules and Regulations, through counsel, requesting
that the frost free hydrants be removed and that a cement plug be
placed in the RV septic system dump sewer line. See copy attached
as Exhibit „L‟.
28. Based on a belief that the Sorrells was acting in good-
faith in negotiating a compromise, and without knowledge of The
Trust‟s ownership of the Subject Property, SPU did not immediately
seek to terminate services to the Subject Property.

AMENDED ANSWER TO FORMAL COMPLAINT - 9

29. It has been represented by Sorrells that the RV septic
system dump sewer line has been plugged, but SPU has not been
allowed to verify this fact directly or been given any reason to
believe the representations.
30. On April 5, 2021, counsel for Sorrells submitted a
letter stating that “the toilet drainage/leaking issue has been
remedied.”
31. On April 16, 2021, counsel for SPU identified numerous
legal requirements which Sorrells had failed to comply with,
including the following: (1) failure to provide an inspection and
certification report by a licensed Idaho Professional Engineer
stating that the water and sewer lines were up to county
standards; (2) failure to provide “as built” drawings for the
water and sewer lines for all buildings; (3) failure to identify
changes to site plans submitted to the Bonneville County Public
Works Department; (4) failure to provide Sunnyside Park Utilities
with the architectural plans for Buildings 2-5; (5) failure to
provide evidence of installation of an appropriate backflow
prevention device; and (6) failure to allow Sunnyside Park
Utilities to inspect the water and sewer service lines prior to
covering. A copy of such notice is attached as Exhibit „M‟.
32. On or about June 17, 2021, a water meter was installed
at SPU‟s cost in the public right-of-way to monitor water
consumption on the Subject Property. Such water meter remains the

AMENDED ANSWER TO FORMAL COMPLAINT - 10

property of SPU. A copy of a “Paid in full” invoice for the water
meter is attached hereto as Exhibit „R‟.
33. While taking a meter reading on October 25, 2021, SPU‟s
representative was contacted by Nikita Byington, a tenant of
Subject Property, and was told that he was not allowed to access
the water meter on the Subject Property. It is understood that Ms.
Byington monitors the Subject Property when Sorrells is not
present. The tenant‟s statement, as agent of Sorrells, that SPU
was prohibited from accessing the water meter constitutes grounds
for termination under IDAPA 31.21.01.302.01(e).
34. On October 25, 2021, at approximately 9:30 p.m., SPU
discovered that Sorrells‟ toilet was again continuously running.
SPU shut off water to the Subject Property at the water meter to
prevent the continuous excess flow from overloading the septic
system and wasting water.
35. On October 26, 2021, counsel for SPU informed counsel
for Sorrells of the repeated excessive discharge and water waste
issues and stated that “water will be turned back on when proof is
provided that a new toilet has been installed and a monitoring
plan acceptable to Sunnyside Park Utilities is submitted by Mr.
Sorrells on how he will manage his sewage discharge in the future,
pursuant to [Sunnyside Park‟s Rules and Regulations] Article 2,
Section 7.”
36. During the evening of October 26, 2021, SPU again

AMENDED ANSWER TO FORMAL COMPLAINT - 11

noticed excessive discharge into its septic system and found that
Sorrells, or his agent, had turned on the water without SPU‟s
authorization. SPU again turned off the water and installed a lock
on the water meter to prevent Sorrells from restarting the water
until Sorrells verified that the excessive discharge and water
wasting had been permanently remedied and would no longer risk
overloading SPU‟s septic system and wasting water.
37. On October 27, 2021, Sorrells sent a text message to
SPU, stating in part: “…this is a formal notice that if you or any
one representing you enters my property for any reason again you
will be removed by force if necessary. The water meter is fully
owned and paid for by me, and is on my property. Do not TOUCH
AGAIN!! The toilets have been repaired and there is no water flow.
BACK OFF!!!”
38. Sorrells‟ notice and threats prohibiting SPU from
accessing the water meter constitutes grounds for termination
under IDAPA 31.21.01.302.01(e). Sorrells has not provided any
notice that his threats have been rescinded.
39. On October 27, 2021, Finish Line Plumbing, Inc.,
invoiced Sorrells $471.90 to repair the leaking toilet.
40. On October 27, 2021, counsel for Sorrells notified
counsel for SPU that the toilet had again been repaired and
requested that water service resume immediately.
41. Upon receipt of this request, SPU went to the water

AMENDED ANSWER TO FORMAL COMPLAINT - 12

meter to resume service and found that SPU‟s lock had been
removed, the water had again been turned on without authorization,
and a new lock had been placed by Sorrells to prevent SPU from
being able to turn off the water at SPU‟s water meter.
42. Sorrells‟ placing of a lock on SPU‟s water meter
constitutes grounds for termination under IDAPA
31.21.01.302.01(e).
43. On October 29, 2021, counsel for SPU provided a notice
to Sorrells‟ counsel that water service would be terminated based
upon Sorrells‟ interference with SPU‟s access to the water meter
by means of the unauthorized lock and threats to forcibly remove
any representative of SPU who attempted to access the meter as
allowed under Idaho Public Utilities Commission regulations set
forth in IDAPA 31.21.01.602.01 and IDAPA 31.21.01.302.01(e). See
letter dated October 29, 2021, attached as Exhibit „N‟.
44. On November 1, 2021, counsel for Sorrells stated that
the lock would be removed “on condition that [SPU] follow the
rules for notice provided in his own rules and regulations in the
future.” The lock has now been removed, but Sorrells has not
rescinded his threats of forcible removal of SPU representatives
servicing SPU‟s meter.
45. Since the October 27, 2021 toilet repair, SPU has
conducted regular readings of the water meter and regular
inspections of the sewer discharge from the Subject Property.

AMENDED ANSWER TO FORMAL COMPLAINT - 13

46. Between the evening of October 29, 2021 and the morning
of November 9, 2021, a total of 12,168 gallons were consumed by
the Subject Property, which averages out to nearly 50 gallons per
hour, for a property which was only authorized to have two
restrooms.
47. On November 2, 2021, SPU notified Sorrells‟ contractor
regarding the excessive consumption of water, and was informed
that a frost-free hydrant was leaking and was in the process of
being repaired. Sorrells‟ contractor was unaware of the extent of
the leak, as only a minor leak is noticeable from the hydrant
itself.
48. Sorrells‟ contractor turned off the water line to the
hydrants and informed Sorrells of the leak.
49. Sorrells informed the contractor that Sorrells would
continue to use the water service and allow his tenants and/or
agent(s) to turn on/off the water to the hydrants as needed, prior
to any repair of the leak. Sorrells‟ continued willful wasting of
water constitutes grounds for termination under IDAPA
31.21.01.302.01(f).
50. Based upon water meter readings, it appears the water
hydrants were shut off during the evenings between November 2-3
and 3-4, but otherwise the leak has continued unabated. A copy of
the meter readings is attached as Exhibit „O‟.
51. More recently, between March 25 and April 7, 2022, the

AMENDED ANSWER TO FORMAL COMPLAINT - 14

meter readings show average water consumption in excess of 1,000
gallons per day. No explanation has been provided regarding this
excessive use, leading SPU to believe that the water is being
wasted through leakage.
52. By allowing leaking hydrants to continue to operate,
Sorrells‟ is willfully wasting water provided by SPU and
continuing to interfere with SPU services. Willfully wasting or
interfering with service of a utility provider is a violation of
IDAPA 31.21.01.302.01(f) and/or IDAPA 31.21.01.602.01. SPU does
not believe that the leak is being discharged into SPU‟s septic
system, but is likely seeping into the ground and may lead to
future problems on Sorrells‟ and adjacent parcels.
53. Pursuant to SPU‟s Rules and Regulations for Sewer
Service (“Rules and Regulations”), Article II, Section 2, “Any
person or party found to be discharging unauthorized wastes shall
be subject to penalties and fees as described in Article IV.”
54. Pursuant to Rules and Regulations, Article IV, Section
3, SPU “reserves the right to refuse to provide service to
persistent violators of these rules and regulations.”
55. Pursuant to Rules and Regulations, Article II, Section
4(b), SPU prohibits the discharge of sewage in excess of the
quantity and rate of flow which was intended to be discharged from
the Subject Property.
56. Pursuant to Rules and Regulations, Article II, Section

AMENDED ANSWER TO FORMAL COMPLAINT - 15

4(e), SPU prohibits the discharge of unusual or excessive volume
or continuous flow or concentration of wastes.
57. Pursuant to Rules and Regulations, Article II, Section
5, SPU reserves the right to reject current and future sanitary
sewage for any person in violation of Article II or which poses a
deleterious effect upon the sewer system. High volumes of
continuous flows have a deleterious effect upon any septic drain
field.
58. Pursuant to the Third Party Agreement, Section 4, “The
Company [SPU] shall have the right to install on the premises of
each of the individual buildings, and other improvements a water
meter to be maintained by the Company through which all water
supplied to the consumer shall pass and to which [SPU] shall have
access at reasonable times for the purpose of taking meter
readings and keeping said meters in repair.” See attached Exhibit
„G‟.
59. On November 11, 2021, pursuant to Idaho Code Section 10-
1201 et. seq., SPU sought Declaratory Judgment in the Seventh
Judicial District, Bonneville County, to declare the rights of SPU
to refuse to provide service to Sorrells, a persistent and
continuing violator of the Rules and Regulations of SPU and
applicable IDAPA provisions, and to authorize the termination of
water and/or sewer services to the Subject Property.
60. During the hearing held on Sorrells‟ Motion to Dismiss,

AMENDED ANSWER TO FORMAL COMPLAINT - 16

counsel for Sorrells stated that the appropriate course of action
was for SPU to terminate services and to have the dispute
addressed by the IPUC.
61. On March 2, 2022, the Court entered a Memorandum
Decision on Respondent‟s Motion to Dismiss, directing the parties
to address water service related issues with the IPUC. A copy of
this Memorandum Decision is attached as Exhibit „P‟, as requested
by the IPUC.
62. On March 3, 2022, SPU provided Sorrells with a Notice of
Intent to Terminate Services pursuant to IDAPA 31.21.01.304.01. A
copy of the Notice was submitted to the IPUC, pursuant to IDAPA
31.21.01.605, which responded by telephone call of its agent,
Curtis Stein on March 8, 2022, saying that the IPUC likely does
not have jurisdiction over this matter. The IPUC has not entered a
stay of termination or entered a finding that public interest
requires service to be maintained as allowed under IDAPA
31.21.01.605, however termination has not occurred pending
resolution of this matter.
63. On March 8, 2022, counsel for Sorrells submitted a
letter to SPU‟s counsel stating that they also were contacted by
the IPUC and “it has been made known to us that IPUC interprets
the aforementioned rules and regulations as not applicable to SPU,
and that IPUC deems SPU a „nonregulated entity‟.” A copy of such
letter is attached hereto as Exhibit „Q‟.

AMENDED ANSWER TO FORMAL COMPLAINT - 17

64. On March 8, 2022, pursuant to IDAPA 31.21.01.312.02, a
Notice of Termination was posted on the Subject Property 48 hours
prior to time of anticipated termination on March 10, 2022.
65. As required by IDAPA 31.21.01.304.02, Counsel for SPU
diligently attempted to contact Mr. Sorrells‟ counsel on March 9,
2022, twenty-four (24) hours prior to anticipated termination, and
spoke with attorney Paul Rippel, providing final Notice of
Termination. Idaho Rules of Professional Conduct and Court rules
prevented counsel from contacting Sorrells directly.
66. On March 9, 2022, prior to termination, SPU received
notice that a Formal Complaint had been filed by Sorrells, and
pursuant to IDAPA 31.21.01.700.01(b)(ii) termination has not
occurred.
RESPONSE TO FORMAL COMPLAINT
67. Unless expressly admitted herein, SPU denies each and
every allegation contained in Complainant Formal Complaint.
68. In response to Paragraph 1, SPU denies based upon the
fact that the Subject Property was transferred to The Trust and is
not owned by Complainant.
69. In response to Paragraph 2, SPU admits, with the
clarification that SPU is a Non-Profit Corporation.
70. In response to Paragraph 3-5, SPU denies these
allegations based upon repeatedly being informed by the IPUC that
SPU is not a regulated entity.

AMENDED ANSWER TO FORMAL COMPLAINT - 18

71. In response to Paragraphs 6 and 11, no response is
required.
72. In response to Paragraphs 7-10, SPU responds by stating
that the letter speaks for itself.
73. In response to Paragraphs 12-23, SPU denies each and
every allegation.
PRAYER
WHEREFORE, SPU prays for relief as follows:
1. Denying Sorrells Formal Complaint and dismissing this
proceeding for the reason that the Idaho Public Utility
Commission lacks jurisdiction over Sunnyside Park Utilities,
Inc., based upon its non-profit status, as a public utility
organized and operated for service at cost and not for
profit.
2. Denying Sorrells‟ Formal Complaint and dismissing this
proceeding for the reason that Sorrells does not own the
Subject Property and has no standing to pursue this action.
3. Declaring that Sorrells is a persistent and continuing
violator of the Rules and Regulations applicable to the
Subject Property.
4. Declaring that Sorrells is in violation of IPUC Rules by
reason of (1) material misrepresentations, (2) failure of The
Trust to apply for SPU‟s services, (3) obtaining, diverting
or using SPU‟s services without SPU‟s knowledge or

AMENDED ANSWER TO FORMAL COMPLAINT - 19

authorization, (4) interference with SPU‟s access to SPU‟s
water meter, (5) failure to comply with pertinent legal
requirements during construction of buildings on the Subject
Property, and/or (6) by willfully wasting of water provided
by SPU.
5. Declaring that SPU is authorized to terminate water services
to Lot 4, Block 4, Sunnyside Industrial and Professional
Park.
6. Granting SPU such further relief as the IPUC deems just and
proper.
DATED this 7th day of September, 2022.

/s/ Paul L. Fuller
Paul L. Fuller
Attorney for Sunnyside Park Utilities, Inc.

AMENDED ANSWER TO FORMAL COMPLAINT - 20

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I served a true and correct copy of the following
described pleading or document on the persons listed below on this 7th day of September,
2022:
Document Served: AMENDED ANSWER TO FORMAL
COMPLAINT

Persons Served:

Paul B. Rippel Via Email
Austin O. Allen
HOPKINS RODEN CROCKETT
HANSEN & HOOPES, PLLC
428 Park Ave.
Idaho Falls, ID 83402
[e-mail]
[e-mail]

/s/ Paul L. Fuller
Paul L. Fuller
FULLER & BECK LAW OFFICES, PLLC

AMENDED ANSWER TO FORMAL COMPLAINT - 21

EXHIBITS

Exhibit A – Statement of Conversion
Exhibit B – Minutes of Annual Shareholder Meeting
Exhibit C – Plan of Conversion
Exhibit D – Bylaws
Exhibit E – Rules and Regulations for Water Service
Exhibit F – Rate Schedule
Exhibit G - Third Party Beneficiary Agreement
Exhibit H – Will-Serve Letter
Exhibit I – Building Permits 1-5
Exhibit J – August 21, 2019 Notice
Exhibit K – September 5, 2019 Notice
Exhibit L – February 12, 2021 Notice
Exhibit M – April 16, 2021 Notice
Exhibit N – October 29, 2021 Notice
Exhibit O – Water Meter Readings
Exhibit P – Memorandum Decision
Exhibit Q – March 8, 2022 Letter
Exhibit R – Water Meter Invoice

EXHIBIT A
EXHIBIT B
EXHIBIT C
PLAN OF CONVERSION
SUNNYSIDE PARK UTILITIES, INC.
WHEREAS, Sunnyside Park Utilities, Inc., was originally organized as a General Business
Corporation under the laws of the State of Idaho on March 29, 2002; and
WHEREAS, Sunnyside Park Utilities, Inc., desires to convert to a Non-Profit Corporation
pursuant to Idaho Code Section 30-22-401, et. seq.;
NOW, THEREFORE, the Members and Board of Directors hereby adopt the Plan of
Conversion as follows:
1. Name and Type of Converting Entity: Sunnyside Park Utilities, Inc., an Idaho
Corporation;
2. Name, Jurisdiction and Type of Converted Entity: Sunnyside Park Utilities, Inc., an Idaho
Non-Profit Corporation;
3. Conversion of Interest: All interests, securities, obligations, money, and other property,
rights to acquire interests or securities, or any combination of the foregoing shall be
converted on a 1-1 basis, such that all interests, securities, obligations, money, etc., shall
be the same as prior to conversion;
4. Proposed Public Organic Record: Articles of Incorporation (Non-Profit);
5. Proposed Bylaws: Please see Exhibit ‘A’ attached hereto;
6. Other Terms and Conditions: None; and
7. Other Provisions: None.
EXHIBIT D
EXHIBIT E
EXHIBIT F
EXHIBIT G
EXHIBIT H
EXHIBIT I
EXHIBIT J
EXHIBIT K
EXHIBIT L
EXHIBIT M
EXHIBIT N
EXHIBIT O
Water Usage
Date Time Reading Usage GPD
6/17/2021 10:34 AM 400 Meter Installed
7/1/2021 8:17 AM 1400 1000 71
8/1/2021 8:15 AM 7200 5800 187
9/1/2021 8:20 AM 10400 3200 103
10/1/2021 9:45 AM 13500 3100 103
Monday 10/25/2021 8:34 PM 24100 10600 442 UPHOLSTERY LADY? RESTRAINING ORDER?
Tuesday 10/26/2021 1:00 PM 24300 200 TOLD ME I COULDN’T BE ON THE PROPERTY
Tuesday 7:51 PM 24300 0 200
Wednesday 10/27/2021 24300 0
Wednesday 5:07 PM 24500 200 200
Thursday 10/28/2021 24500 0
Thursday 24500 0 0
Friday 10/29/2021 24500 0
Friday 9:50 PM 25600 1100 1100
Saturday 10/30/2021 8:30 AM 26800 1200
Saturday 8:21 PM 27300 500 1700
Sunday 10/31/2021 9:15 AM 28000 700
Sunday 7:46 PM 28600 600 1300
Monday 11/1/2021 8:15 AM 29200 600
Monday 5:10 PM 29800 600 1200
Tuesday 11/2/2021 8:20 AM 30636 836
Tuesday 5:27 PM 31451 815 1651
Wednesday 11/3/2021 8:21 AM 31524 73
Wednesday 5:08 PM 32192 668 741
Thursday 11/4/2021 8:25 AM 32290 98
Thursday 5:10 PM 32533 243 341
Friday 11/5/2021 8:24 AM 33100 567
Friday 4:54 PM 33504 404 971
Saturday 11/6/2021 33504 0
Saturday 33504 0 0
Sunday 11/7/2021 7:16 AM 35520 2016
Sunday 8:55 PM 36225 705 2721
Monday 11/8/2021 8:12 AM 36760 535
Monday 5:08 PM 37233 473 1008
Tuesday 11/9/2021 8:09 AM 37768 535
Tuesday 38185 417 952
Wednesday 11/10/2021 8:00 AM 38720 535
Wednesday 5:03 PM 39022 302 837
Thursday 11/11/2021 8:24 AM 39042 20
Thursday 5:09 PM 39128 86 106
Friday 11/12/2021 8:17 AM 39155 27
Friday 5:14 PM 39272 117 144
Saturday 11/13/2021 39293.6 21.6
Saturday 39315.2 21.6 43
Sunday 11/14/2021 39341 25.8
Sunday 39360 19 45
Monday 11/15/2021 8:22 AM 39380 20
Monday 6:18 PM 39511 131 151
Tuesday 11/16/2021 8:28 AM 39534 23
Tuesday 5:22 PM 39728 194 217
Wednesday 11/17/2021 7:38 AM 39746 18
Wednesday 6:05 PM 39868 122 140
Thursday 11/18/2021 8:11 AM 39996 128
Thursday 40071 75 203
Friday 11/19/2021 8:12 AM 40095 24
Friday 5:05 PM 40210 115 139
Saturday 11/20/2021 40235 25
Saturday 40261 26 51
Sunday 11/21/2021 9:11 AM 40303 42
Sunday 7:58 PM 40341 38 80
Monday 11/22/2021 8:24 AM 40363 22
Monday 40503 140 162
Tuesday 11/23/2021 8:17 AM 40710 207
Tuesday 5:07 PM 40770 60 267
Wednesday 11/24/2021 8:21 AM 40800 30
Wednesday 5:04 PM 40874 74 104
Thursday 11/25/2021 40945.5 71.5
Thursday 40945.5 0 72
Friday 11/26/2021 41017 71.5
Friday 41017 0 72
Saturday 11/27/2021 41088.5 71.5
Saturday 41088.5 0 72
Sunday 11/28/2021 9:10 AM 41160 71.5
Sunday 41160 0 72
Monday 11/29/2021 8:09 AM 41437 277
Monday 5:04 PM 41610 173 450
Tuesday 11/30/2021 8:20 AM 41690 80
Tuesday 5:05 PM 41763 73 153
Wednesday 12/1/2021 8:23 AM 41774 11
Wednesday 4:41 PM 41859 85 96
Thursday 12/2/2021 8:20 AM 41915 56
Thursday 5:06 PM 42025 110 166
Friday 12/3/2021 8:17 AM 42053 28
Friday 5:03 PM 42125 72 100
Saturday 12/4/2021 42125 0
Saturday 7:43 PM 42720 595 595
Sunday 12/5/2021 9:09 AM 43111 391
Sunday 43111 0 391
Monday 12/6/2021 8:12 AM 43323 212
Monday 5:03 PM 43410 87 299
Tuesday 12/7/2021 8:25 AM 43715 305
Tuesday 5:04 PM 43922 207 512
Wednesday 12/8/2021 8:20 AM 43954 32
Wednesday 5:08 PM 44136 182 214
Thursday 12/9/2021 8:16 AM 44175 39
Thursday 44175 0 39
Friday 12/10/2021 8:46 AM 44395 220
Friday 5:10 PM 44453 58 278
Saturday 12/11/2021 44453 0
Saturday 5:05 PM 44965 512 512
Sunday 12/12/2021 10:11 AM 45437 472
Sunday 8:33 PM 45465 28 500
Monday 12/13/2021 8:11 AM 45481 16
Monday 45481 0 16
Tuesday 12/14/2021 8:15 AM 45578 97
Tuesday 45739.75 161.75 259
Wednesday 12/15/2021 45901.5 161.75
Wednesday 46063.25 161.75 324
Thursday 12/16/2021 9:40 AM 46225 161.75
Thursday 5:14 PM 46339 114 276
Friday 12/17/2021 8:18 AM 46887 548
Friday 5:07 PM 46904 17 565
Saturday 12/18/2021 10:26 AM 46933 29
Saturday 10:13 PM 47074 141 170
Sunday 12/19/2021 47276 202
Sunday 47478 202 404
Monday 12/20/2021 8:16 AM 47680 202
Monday 47680 0 202
Tuesday 12/21/2021 8:17 AM 48075 395
Tuesday 5:08 PM 48480 405 800
Wednesday 12/22/2021 8:24 AM 48830 350
Wednesday 5:16 PM 49658 828 1178
Thursday 12/23/2021 49658 0
Thursday 9:00 PM 49739 81 81
Friday 12/24/2021 6:39 AM 49750 11
Friday 7:20 PM 49908 158 169
Saturday 12/25/2021 9:12 AM 50240 332
Saturday 8:59 PM 50526 286 618
Sunday 12/26/2021 50526 0
Sunday 6:56 PM 51057 531 531
Monday 12/27/2021 8:21 AM 51061 4
Monday 51061 0 4
Tuesday 12/28/2021 8:16 AM 51431 370
Tuesday 51431 0 370
Wednesday 12/29/2021 8:11 AM 51627 196
Wednesday 51627 0 0
Thursday 12/30/2021 8:27 AM 52057 430
Thursday 52057 0 430 meter covered with plowed snow
Friday 12/31/2021 52487 430
Friday 52487 0 430
Saturday 1/1/2022 52917 430
Saturday 52917 0 430
Sunday 1/2/2022 53347 430
Sunday 53347 0 430
Monday 1/3/2022 53777 430
Monday 53777 0 430
Tuesday 1/4/2022 54207 430
Tuesday 54207 0 430
Wednesday 1/5/2022 8:22 AM 54638 431
Wednesday 54638 0 431
Thursday 1/6/2022 8:19 AM 54808 170
Thursday 54808 0 170
Friday 1/7/2022 8:18 AM 54967 159
Friday 54967 0 159
Saturday 1/8/2022 55128 161
Saturday 55128 0 161
Sunday 1/9/2022 55289 161
Sunday 55289 0 161
Monday 1/10/2022 8:21 AM 55450 161
Monday 55450 0 161
Tuesday 1/11/2022 8:18 AM 55711 261
Tuesday 55711 0 261
Wednesday 1/12/2022 8:13 AM 55929 218
Wednesday 55929 0 218
Thursday 1/13/2022 8:27 AM 56140 211
Thursday 56140 0 211
Friday 1/14/2022 8:20 AM 56569 429
Friday 56569 0 429
Saturday 1/15/2022 56957 388
Saturday 56957 0 388
Sunday 1/16/2022 57345 388
Sunday 57345 0 388
Monday 1/17/2022 8:19 AM 57735 390
Monday 57735 0 390
Tuesday 1/18/2022 8:19 AM 57915 180
Tuesday 57915 0 180
Wednesday 1/19/2022 8:22 AM 58255 340
Wednesday 58255 0 340
Thursday 1/20/2022 8:19 AM 58540 285
Thursday 58540 0 285
Friday 1/21/2022 8:24 AM 58715 175
Friday 58715 0 175
Saturday 1/22/2022 58903 188
Saturday 58903 0 188
Sunday 1/23/2022 59091 188
Sunday 59091 0 188
Monday 1/24/2022 8:29 AM 59280 189
Monday 59280 0 189
Tuesday 1/25/2022 9:19 AM 59418 138
Tuesday 59418 0 138
Wednesday 1/26/2022 8:20 AM 59629 211
Wednesday 59629 0 211
Thursday 1/27/2022 8:27 AM 60004 375
Thursday 60004 0 375
Friday 1/28/2022 8:21 AM 60354 350
Friday 60354 0 350
Saturday 1/29/2022 60845 491
Saturday 60845 0 491
Sunday 1/30/2022 61336 491
Sunday 61336 0 491
Monday 1/31/2022 8:22 AM 61828 492
Monday 61828 0 492
Tuesday 2/1/2022 8:25 AM 62410 582
Tuesday 62410 0 582
Wednesday 2/2/2022 8:22 AM 62953 543
Wednesday 62953 0 543
Thursday 2/3/2022 63729.5 776.5
Thursday 63729.5 0 777
Friday 2/4/2022 8:19 AM 64506 776.5
Friday 64506 0 777
Saturday 2/5/2022 64917 411
Saturday 64917 0 411
Sunday 2/6/2022 65328 411
Sunday 65328 0 411
Monday 2/7/2022 8:28 AM 65739 411
Monday 65739 0 411
Tuesday 2/8/2022 8:22 AM 66146 407
Tuesday 66146 0 407
Wednesday 2/9/2022 8:22 AM 66512 366
Wednesday 66512 0 366
Thursday 2/10/2022 8:17 AM 67318 806
Thursday 67318 0 806
Friday 2/11/2022 8:19 AM 67945 627
Friday 67945 0 627
Saturday 2/12/2022 68238 293
Saturday 68238 0 293
Sunday 2/13/2022 68531 293
Sunday 68531 0 293
Monday 2/14/2022 8:24 AM 68826 295
Monday 68826 0 295
Tuesday 2/15/2022 8:28 AM 68940 114
Tuesday 68940 0 114
Wednesday 2/16/2022 8:24 AM 69358 418
Wednesday 69358 0 418
Thursday 2/17/2022 8:23 AM 69573 215
Thursday 69573 0 215
Friday 2/18/2022 8:21 AM 69798 225
Friday 69798 0 225
Saturday 2/19/2022 69849.33 51.33
Saturday 69849.33 0 51
Sunday 2/20/2022 69900.66 51.33
Sunday 69900.66 0 51
Monday 2/21/2022 8:28 AM 69952 51.34
Monday 69952 0 51
Tuesday 2/22/2022 8:22 AM 70419 467
Tuesday 70419 0 467
Wednesday 2/23/2022 9:04 AM 70782 363
Wednesday 70782 0 363
Thursday 2/24/2022 8:23 AM 71110 328
Thursday 71110 0 328
Friday 2/25/2022 8:22 AM 71511 401
Friday 71511 0 401
Saturday 2/26/2022 72223.33 712.33
Saturday 72223.33 0 712
Sunday 2/27/2022 72935.66 712.33
Sunday 72935.66 0 712
Monday 2/28/2022 8:14 AM 73647 711.34
Monday 73647 0 711
Tuesday 3/1/2022 8:18 AM 73866 219
Tuesday 73866 0 219
Wednesday 3/2/2022 8:21 AM 74102 236
Wednesday 74102 0 236
Thursday 3/3/2022 8:18 AM 74898 796
Thursday 74898 0 796
Friday 3/4/2022 8:16 AM 75580 682
Friday 75580 0 682
Saturday 3/5/2022 76275 695
Saturday 76275 0 695
Sunday 3/6/2022 76970 695
Sunday 76970 0 695
Monday 3/7/2022 8:30 AM 77665 695
Monday 77665 0 695
Tuesday 3/8/2022 8:26 AM 78122 457
Tuesday 3:02 PM 78175 53 510
Wednesday 3/9/2022 8:28 AM 78713 538
Wednesday 78713 0 538
Thursday 3/10/2022 8:24 AM 79487 774
Thursday 79487 0 774
Friday 3/11/2022 8:24 AM 80127 640
Friday 80127 0 640
Saturday 3/12/2022 80910 783
Saturday 80910 0 783
Sunday 3/13/2022 81693 783
Sunday 81693 0 783
Monday 3/14/2022 8:18 AM 82478 785
Monday 82478 0 785
Tuesday 3/15/2022 8:23 AM 83318 840
Tuesday 83318 0 840
Wednesday 3/16/2022 8:18 AM 84128 810
Wednesday 84128 0 810
Thursday 3/17/2022 8:35 AM 85028 900
Thursday 85028 0 900
Friday 3/18/2022 8:17 AM 85936 908
Friday 85936 0 908
Saturday 3/19/2022 86784 848
Saturday 86784 0 848
Sunday 3/20/2022 87632 848
Sunday 87632 0 848
Monday 3/21/2022 10:34 AM 88482 850
Monday 88482 0 850
Tuesday 3/22/2022 8:30 AM 89067 585
Tuesday 89067 0 585
Wednesday 3/23/2022 8:33 AM 89614 547
Wednesday 89614 0 547
Thursday 3/24/2022 8:28 AM 90235 621
Thursday 90235 0 621
Friday 3/25/2022 8:26 AM 90819 584
Friday 90819 0 584
Saturday 3/26/2022 91981 1162
Saturday 91981 0 1162
Sunday 3/27/2022 93143 1162
Sunday 93143 0 1162
Monday 3/28/2022 8:24 AM 94305 1162
Monday 94305 0 1162
Tuesday 3/29/2022 8:25 AM 95166 861
Tuesday 95166 0 861
Wednesday 3/30/2022 8:14 AM 96118 952
Wednesday 96118 0 952
Thursday 3/31/2022 8:27 AM 97308 1190
Thursday 97308 0 1190
Friday 4/1/2022 8:19 AM 98244 936
Friday 98244 0 936
Saturday 4/2/2022 99181 937
Saturday 99181 0 937
Sunday 4/3/2022 100118 937
Sunday 100118 0 937
Monday 4/4/2022 8:10 AM 101055 937
Monday 101055 0 937
Tuesday 4/5/2022 9:57 AM 101818 763
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Wednesday 4/6/2022 8:16 AM 102880 1062
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Thursday 4/7/2022 8:23 AM 103903 1023
Thursday 103903 0 1023
EXHIBIT P
Memorandum Decision
Case No.CV10-21-6624
IN THE DISTRICT COURT OF THE SEVENTH JUDICIAL DISTRICT OF THESTATEOFIDAHO,IN AND FOR THE COUNTY OF BONNEVILLE
Case No.CV10-21-6624
MEMORANDUM DECISION ON
RESPONDENT’S MOTION TO DISMISS
INTRODUCTION
Before the Court is Respondent’s Motion to Dismiss Petitioner’s Petition for Declaratory
Judgment.Petitioner is a water utility for a private business park.Respondent is the owner of
buildings in the concerned business park serviced by Petitioner.Respondent’s Motion provides
affirmative defenses under Idaho Rules of Civil Procedure 12(b)(1)citing lack of subject matter
jurisdiction and 12(b)(2)citing a failure to state a claim upon which relief can be granted.
Therefore,the crux of the immediate decision lies in the applicability of a party’s duty to
exhaust administrative remedies and this Court’s subject matter jurisdiction over the concerning
matters.
Page 1 of 16
SUNNYSIDE PARK UTILITIES,INC.,
an Idaho Corporation,
Petitioner,
VS.
DONALD SORRELLS,an individual,
Respondent.
Memorandum Decision
Case No.CV10-21-6624
Following oral arglment,the Court took this matter under advisement to issue a written
opinion and address the issues at hand.Herein are the findings of the Court.
FACTUAL AND PROCEDURAL BACKGROUND
In the matter before this Court,there has been no argument or disagreement between the
parties regarding the underlying facts or occurrences described by Petitioner in its Petition for
Declaratory Judgment.As such,the Court accepts and adopts the following points as described in
the Petition.
Petitioner,Sunnyside Park Utilities,Inc.,(hereinafter “Sunnyside”)is an Idaho
corporation,organized and existing under the laws of the State of Idaho with its principal place of
business in the County ofBonneville,State of Idaho,with the principal purpose ofproviding water
and sewer service to commercial properties in Sunnyside Industrial and Professional Park
according to the Sunnyside Park Utilities Rules and Regulations proffered and adopted by
Sunnyside.Petition at 111.Sunnyside is a water corporation as defined by Idaho Sections 61-125
and 61-129.Id.At Ex.E p.2.Respondent,Donald Sorrells (hereinafter “Sorrells”)is the owner
of Lot 4,Block 4,Sunnyside Industrial &Professional Park,located in Bonneville County,Idaho
(hereinafter “the Property”).Id.at 112.
On August 23,2018,Sunnyside issued a “Will Serve”letter to Sorrells,based on
representations that Sorrells would install two (2)restrooms on the Property,with no other water
or sewer needs.Id.at 1B.
In October-November 2018,Sorrells obtained commercial building permits from
Bonneville County to construct several buildings on the Property,only one ofwhich was identified
as requiring a sewer permit.Id.at 114.Sorrells was authorized to install only two (2)bathrooms
Page 2 of 16
Memorandum Decision
Case N0.CV10-21-6624
on the Property under the Bonneville County building permit and his agreement with Sunnyside.
Id.However,Sorrells established additional connections,including but not limited to a
washer/dryer connection,an RV septic connection,and ten (10)frost-free hydrants on multiple
buildings on the Property.Id at 5.Sorrells’installation of the additional water and septic
connections was not authorized by Sunnyside and was not permitted by Bonneville County Zoning
and Building Department.Id.at 116.
Following Sorrells’connection to the Sunnyside system,Sunnyside noted repeated
instances where excessive discharge was directed into Sunnyside’s septic system from Sorrells’s
Property.Id.at 117.Sunnyside notified Sorrells ofthese recurring issues and was routinely assured
that the problem would be addressed.Id.
On or about August 21,2019,Sunnyside sent a notice of violation to Sorrells regarding the
additional connections.Id.at 118.Sunnyside alleged that Sorrells was in direct violation of the
multiple sections of the Sunnyside Park Utility Rules and Regulations (hereinafter “Rules and
Regulations”).Along with the notice of violation,Sunnyside identified a defective toilet that was
discharging a continuous flow into the Sunnyside system.Id.Sunnyside requested remediation
of the defective toilet and indicated that services would be terminated if not repaired.Id.
On or about September 5,2019,a second notice was sent to Sorrells’regarding a constant
flow of discharge coming from Sorrell’s Property.In addition to the notice,Sunnyside again
requested that Sorrells remedy the problem.Id.at 119.
On or about February 12,2021,Sunnyside sent a third notice of violation of Rules and
Regulations through counsel,in which it requested that the frost-free hydrants be removed and
that a cement plug be placed in the RV septic system dump sewer line.Id.at 1110.
Page 3 of16
Memorandum Decision
Case No.CV10-21-6624
Based on a belief that the Sorrells was acting in good faith in negotiating a compromise,
Sunnyside did not immediately terminate services to Sorrells’property.Id.at 1111.Sunnyside
believed that the RV septic system dump sewer line had been plugged,but Sunnyside has not been
allowed to verify this fact directly.Id.
On April 5,2021,counsel for Sorrells submitted a letter stating that “the toilet
drainage/leaking issue has been remedied.”Id.at 1112.
On April l6,2021,counsel for Sunnyside identified numerous legal requirements with
which Sorrells failed to comply,including the following:(1)failure to provide an inspection and
certification report by a licensed Idaho Professional Engineer stating that the water and sewer lines
were up to county standards;(2)failure to provide as-built drawings for the water and sewer lines
for all buildings;(3)failure to identify changes to site plans submitted to the Bonneville County
Public Works Department;(4)failure to provide Sunnyside Park Utilities with the architectural
plans for Buildings 2-5;(5)failure to provide evidence of an appropriate backflow prevention
device;and (6)failure to allow Sunnyside to inspect the water and sewer service lines prior to
covering.Id.at 1113.
On June 17,2021,a water meter was installed at Sunnyside’s cost to monitor water
consumption on Sorrell’s Property.The water meter remains the property of Sunnyside.Id.at
1114.
On October 25,2021,at approximately 9:30 p.m.,Sunnyside discovered that Sorrells’
toilet was again continuously running and discharging into the Sunnyside system.Id.at 1115.As
a result,Sunnyside shut off water to the Property to prevent the continuous flow from overloading
the septic system.Id.
Page 4 of 16
Memorandum Decision
Case N0.CV10-21-6624
On October 26,2021,counsel for Sunnyside informed counsel for Sorrells of the repeated
excessive discharge issue and stated that “water will be turned back on when proof is provided
that a new toilet has been installed and a monitoring plan acceptable to Sunnyside Park Utilities is
submitted by Mr.Sorrells on how he will manage his sewage discharge in the future.”Id.at 1116.
During the evening ofOctober 26,2021,Sunnyside again noticed excessive discharge into
its septic system and found that Sorrells,or his agent,had tumed on the water without Sunnyside’s
authorization.Id.at1117.Sunnyside again turned off the water and installed a lock on the water
meter to prevent Sorrells from restarting the water until Sorrells verified that the problem had been
remedied and would no longer risk overloading the Sunnyside septic system.Id.
On October 27,2021,Sorrells sent a text message to Sunnyside,stating in part:“...this is
a formal notice that ifyou or anyone representing you enters my property for any reason again you
will be removed by force if necessary.The water meter is fully owned and paid for by me and is
on my property.Do not TOUCH AGAIN!!The toilets have been repaired and there is no water
flow.BACK OFF!!!”Id.at {[18.
On October 27,2021,Finish Line Plumbing,Inc.,invoiced Sorrells $471.90 to repair the
leaking toilet.Id.at 1119.
On October 27,2021,counsel for Sorrells notified counsel for Sunnyside that the toilet had
again been repaired and requested that water service resume immediately.Id.at 1120.Upon receipt
of this request,Sunnyside went to the water meter to resume service and found that Sunnyside’s
lock had been removed,the water had again been turned on without authorization,and a new lock
had been placed to prevent Sunnyside from being able to turn off the water at Sunnyside’s water
meter.Id.at 1121.
Page 5 of 16
Memorandum Decision
Case No.CV10-21-6624
On October 29,2021,counsel for Sunnyside provided a notice to Sorrells’counsel that
water service would be terminated based upon Sorrells’interference with Sunnyside’s access to
the water meter by means of the unauthorized lock and threats to forcibly remove any
representative of Sunnyside who attempted to access the meter as allowed under Idaho Public
Utilities Commission regulations set forth in IDAPA 31.21.01.602.01 and IDAPA
31.21.01.302.01(e).Id.at 1B2.
On November 1,2021,counsel for Sorrells stated that the lock would be removed “on
condition that [Sunnyside]follow the rules for notice provided in [Sunnyside’s]own rules and
regulations in the future.”Id.at 1123.As ofthe date of the Petition’s filing,the lock had not been
removed,and Sorrells had not rescinded his threats of forcible removal.Id.
Since the October 27,2021 toilet repair,Sunnyside has conducted daily readings of the
water meter and daily inspections of the sewer discharge from Sorrells’Property.Id.at 1124.
Between the evening of October 29,2021,and the morning ofNovember 9,2021,a total of 12,168
gallons were consumed by the Sorrells property,which averages out to nearly 50 gallons per hour
for a property that was only authorized to have two restrooms.Id.at 1125.
On November 2,2021,Sunnyside notified Sorrells’contractor regarding the excessive
consumption of water and was informed that a frost-free hydrant was leaking and was in the
process of being repaired.Id.at 1126.Sorrells’contractor was unaware ofthe extent ofthe leak,
as only a minor leak is noticeable from the hydrant itself.Sorrells’contractor turned offthe water
line to the hydrants and informed Sorrells of the leak.Id.Sorrells informed the contractor that
Sorrells would continue to use the water service and allow tenants or agent(s)to regulate the water
to the hydrants as needed.Id.
Page 6 of l6
Memorandum Decision
Case N0.CV10-21-6624
It appears the water was shut off during the evenings between November 2-3 and 3-4,but
otherwise,the leak has continued unabated based upon water meter readings.Id.at 1B9.
Pursuant to Rules and Regulations,Article II,Section 4(e),Sunnyside prohibits the
discharge of unusual or excessive volume of flow or concentration of wastes.Id.at 1130.
Pursuant to the Third Party Beneficiary Utility Agreement,recorded as Bonneville County
Instrument No.127291 1,Section 4,“[Sunnyside]shall have the right to install on the premises of
each of the individual buildings,and other improvements a water meter to be maintained by
[Sunnyside]through which all water supplied to the consumer shall pass and to which [Sunnyside]
shall have access at reasonable times for the purpose of taking meter readings and keeping said
meters in repair.”Id.at 1132.
On December 20,2021,Sorrells filed Respondent’s Motion to Dismiss.
On February 24,this Court heard oral argument on Respondent’s Motion to Dismiss and,
following the hearing,took the matter under advisement to issue a written decision in this matter
in due course.
STANDARD OF REVIEW
A 12(b)(6)motion looks only at the pleadings to determine whether a claim for relief has
been stated.Taylor v.McNichols,149 Idaho 826,833,243 P.3d 642,649 (2010).“The issue is
not whether the plaintiffwill ultimately prevail,but whether the party is entitled to offer evidence
to support the claims.”ABC Agra,LLC v.CriticalAccess Grp.,Ina,156 Idaho 781,783,331 P.3d
523,525 (2014).“A motion to dismiss for failure to state a claim should not be granted unless it
appears beyond doubt that the plaintiff can prove no set of facts in support of his claim that would
Page 7 of 16
Memorandum Decision
Case No.CV10-21-6624
entitle the plaintiffto relief.”Clark v.Jones Gledhill Fuhrman Gourley,P.A.,163 Idaho 215,220,
409 P.3d 795,800 (2017).
“The grounds for a Rule 12(b)(6)dismissal comprise only the pleadings and no more.”
Taylor,149 Idaho 833.“Idaho Rules of Civil Procedure Rule 8 requires a complaint to contain a
short and plain statement of the claim showing that the pleader is entitled to relief.”Idaho Wool
Growers Ass’n,Inc.v.State,154 Idaho 716,720,302 P.3d 341,345 (2012).Further,the District
Court draws all reasonable inferences in favor of the non-moving party.Id.Therefore,“[u]nder
Rule 12(b)(6),after viewing all facts and inferences from the record in favor of the non-moving
party,the Court will ask whether a claim for relief has been stated.Munden v.Bannock Cty.,No.
47978,2022 WL 386057,at *6 (Idaho Feb.9,2022).“Dismissal for failure to state a claim should
not be granted unless it appears beyond doubt that the plaintiff can prove no set of facts in support
ofhis claim that would entitle him to relief.”Id.
Pertaining to the underlying Petition,“[a]declaratoryjudgment can only be rendered
in a case where an actual or justiciable controversy exists.”Harris v.Cassia Cty.,106 Idaho 513,
516,681 P.2d 988,991 (1984).“A justiciable controversy must be a real and substantial
controversy admitting ofspecific reliefthrough a decree ofa conclusive character,as distinguished
from an opinion advising what the law would be upon a hypothetical state of facts.Ada Cty.
Highway Dist.v.Idaho Pub.Utilities Comm’n,151 Idaho 1,4,253 P.3d 675,678 (2011).“Idaho
has adopted the constitutionally based federal justiciability standard.”Paslay v.A&B Irrigation
Dist.,162 Idaho 866,869,406 P.3d 878,881 (2017).“Standing is an essential element of a
justiciable claim [and]requires (1)a distinct injury in fact,(2)fairly traceable to the conduct from
which a plaintiff seeks relief,and (3)a substantial likelihood that the requested reliefwill remedy
Page 8 of 16
Memorandum Decision
Case No.CV10-21-6624
or prevent the injury.”Id.Further,“[t]he controversy must be definite and concrete,touching the
legal relations of parties having adverse legal interests.”Harris,106 Idaho 516.
Under Idaho Admin.Code r.31.21.01.009,the Public Utilities Commission “reserves the
authority to issue orders interpreting these rules and utility tariffs and resolving formal
complaints.”
In reaching its decision on a motion to dismiss,the court does not consider the total record
in the underlying matter before it;instead,considering only the pleadings of the immediate
concerning matter.If the court were to consider the record in its totality,it would engage in a
summary judgment analysis instead of analysis under Rule 12(b)(6).Paslay v.A&B Irrigation
Dist.,162 Idaho 866,872,406 P.3d 878,884 (2017).“A court can dismiss an action under Rule
12(b)(6)if it considers only the complaint,despite whether a party has submitted additional
materials to the record.”Id.
Sorrells further pleads an affirmative defense under Idaho Rule of Civil Procedure
12(b)(1),asserting that this Court does not have subject matter jurisdiction over matters involving
a public water utility.“Jurisdiction over the subject matter is the right of the court to exercise
judicial power over that class of cases;not the particular case before it,but rather the abstract
power to try a case of the kind or character ofthe one pending;and not whether the particular case
is one that presents a cause of action,or under the particular facts is triable before the court in
which it is pending,because of some of the inherent facts that exist and may be developed during
trial.Troupz's v.Summer,148 Idaho 77,79—80,218 P.3d 1138,1140—41 (2009).Article V,§20
of the Idaho Constitution provides that the district court shall have original jurisdiction to hear all
cases,both at law and in equity.Bach v.Miller,144 Idaho 142,145,158 P.3d 305,308 (2007).
District Courts in Idaho have adopted a presumption that District Courts are courts of general
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jurisdiction and therefore “have subject matter jurisdiction unless a party can show
otherwise.”Tr0upis,148 Idaho 80.(citing Borah v.McCandless,147 Idaho 73,78,205 P.3d 1209,
1214 (2009)).
ANALYSIS
Sunnyside’s Petition includes a prayer for relief on two primary issues.First,
Sunnyside requests the Court for a Declaratory Judgment “[d]eclaring that Sorrells is a
persistent and continued violator of the Rules and Regulations applicable to the subject
property.”Petition at 9.Further,Sunnyside prays for a Declaratory Judgment from this
Court “[d]eclaring that Sorrells is in violation of IDAPA 31.21.01.602.01,by reason of
his interference with [Sunnyside]’s access to [Sunnyside]'s water meter and by his
willfully wasting water provided by [Sunnyside].”Id.
In response,Sorrells articulates affirmative defenses to the underlying Petition for
Declaratory Judgment wherein he motions to dismiss the Petition in its entirety through
the application ofaffirmative defenses.Sorrells’affirmative defenses have a basis arising
from and existing within Idaho Rule of Civil Procedure 12(b)and center around
Sunnyside’s choice not to seek administrative remedies through the Idaho Public Utilities
Commission (IPUC)before seeking a Declaratory Judgment by this Court.The first
affirmative defense relies on this Court not having subject-matter jurisdiction,and the
second affirmative defense for Sunnyside’s failure to state a claim upon which reliefcan
be granted.
In response to Sorrells”Motion to Dismiss,Sunnyside principally argues that the
duty to exhaust all administrative remedies does not apply in this circumstance.
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Sunnyside further argues that exhaustion of administrative remedies requires a
precipitating agency action and that in the underlying matter,there has not been a
precipitating action on the part of any agency or commission.
This Court will take up the dismissal of Sunnyside’s principal prayers for relief separately
below.
1.SUNNYSIDE PROVIDED SUFFICIENT PLEADINGS WHEREBY
PLAINTIFF MAY YET PROVE A SET OF FACTS IN SUPPORT OF ITS
CLAIM THAT WOULD ENTITLE IT TO RELIEF.
In its Petition,Sunnyside seeks a Declaratory Judgment declaring Sorrells a persistent and
continuing violator of the Sunnyside Park Utility Rules and Regulations applicable to the subject
property.Thereby,this Court must determine if the District Court has subject matter jurisdiction
over these matters and whether Sunnyside’s Petition sufficiently stated a claim upon which relief
might be granted.“Generally,in determining whether to grant a declaratoryjudgment,the criteria
is whether it will clarify and settle the legal relations at issue,and whether such declaration will
afford a leave from uncertainty and controversy giving rise to the proceeding.”Schneider v.Howe,
142 Idaho 767,773,133 P.3d 1232,1238 (2006).
Nevertheless,in a motion to dismiss under Idaho Rule of Civil Procedure 12(b),the Court
may only consider the pleadings before the Court.It may not consider extrinsic evidence or the
entirety of the underlying record in the matter and must draw all inferences in favor of the non-
moving party.Therefore,the issue for the Court at this stage is whether it appears beyond a doubt
that Sunnyside can prove no set of facts in support of its claim that would entitle Sunnyside to
relief based solely upon the facial analysis of the pleadings before the Court.Further,through its
Petition for Declaratory Judgment,Sunnyside’s pleadings must sufficiently support a justiciable
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controversy that must be definite and concrete,touching the legal relations of parties having
adverse legal interests.This provides Sunnyside,as the Petitioner,with a relatively low
requirement to survive Sorrells’Motion to Dismiss the Petition.
Here,Sunnyside alleges that Sorrells is a “persistent and continuing violator of the Rules
and Regulations applicable to the subject property.”Petition at 9.In its Petition,Sunnyside
presents multiple claims of Sorrells violating the Rules and Regulations of the subject property.
Petition at 1H]31-36.The Court finds Sunnyside has provided pleadings that address a justiciable
controversy of concrete happenings and not simply the possibility of a hypothetical occurrence
regarding violations of the Rules and Regulations ofthe subject property.
The Court further finds that the pleadings touch upon the relation of the parties having
adverse legal interests.Here,Sunnyside is the public water utility,and Sorrells is the commercial
water customer.If Sunnyside can present further evidence in a later hearing to whereby prove the
allegations upon which it will be entitled to relief,that relief will be directly adverse to the legal
interests of Sorrells as a commercial customer in that Sunnyside desires to terminate utility services
to Sorrells buildings and places of business.
In drawing all inferences in favor of the non-moving party,it is the findings of this Court
that,at this stage of the litigation,Sunnyside has provided sufficient pleadings to show that there
exists the possibility that Sunnyside may present further facts and evidence sufficient to prove the
support of its claim for persistent violations of the Sunnyside Park Utility Rules and Regulations.
The District Court is a court of general jurisdiction and therefore “maintains a presumption that it
has subject matter jurisdiction unless a party can show otherwise.”Troupis,148 Idaho 80.Here,
the alleged violation is based upon the Sunnyside Park Utility Rules and Regulations and is not
based on Idaho Administrative Rules.Therefore,it is the finding of this Court that Sorrells’
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Case No.CV10-21-6624
Motion to Dismiss is Denied in part as it pertains to Sunnyside’s first enumerated prayer for relief
concerning Sorrells being a “persistent and continuing violator of the [Sunnyside Park Utilities]
Rules and Regulations pertaining to the subject property.”Petition at 9.
2.IDAHO PUBLIC UTILITIES COMMISSION RETAINS ORIGINAL
JURISDICTION OVER INTERPRETING RULES AND RESOLVINGFORMALCOMPLAINTSWHEREINIDAHOWATER
CORPORATIONS ARE CONCERNED.
The second issue in Sunnyside’s prayer concerns Sorrells’violation of applicable
Idaho Administrative Code provisions.As argued in Sorrells’Motion to Dismiss,the
concerning issue is whether the District Court has subject-matter jurisdiction over the
enforcement ofthe alleged violations of the Idaho Administrative Code provisions listed
in Sunnyside’s Petition and Sorrells’Motion.
Under Idaho Code §61-125,“[t]he term water corporation when used in this act includes
every corporation or person,their lessees,trustees,receivers or trustees,appointed by any court
whatsoever,owning,controlling,operating or managing any water system for compensation
within this state.”Further,under Idaho Code Ann.§61-129,“[t]he term public utility when
used in this act includes every common carrier,pipeline corporation,gas corporation,electrical
corporation,telephone corporation and water corporation,as those terms are defined in this
chapter,and each thereof is hereby declared to be a public utility and to be subject to the
jurisdiction,control and regulation ofthe commission and to the provisions ofthis act.”Finally,
under Idaho Admin.Code r.31.21.01.009,“[t]he Commission reserves the authority to
issue orders interpreting these rules and utility tariffs,and resolving formal complaints.”
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Sunnyside prays the Couxt for Declaratory Judgment “declaring that Sorrells is in
violation of Idaho Admin Code r.31.21.01.602.01,by reason of his interference with
Sunnyside’s access to Sunnyside’s water meter and by his willfully wasting water provided by
Sunnyside.
It is undisputed between the parties that Sunnyside is a water corporation incorporated
within and under the statutes of the state of Idaho.Under Idaho provisions,all water
corporations incorporated in Idaho are declared to be public utilities and therefore subject to the
“jurisdiction,control and regulation ofthe [IPUC]and to the provisions ofthis act.”I.C.§61-
129.Further,the [IPUC]specifically reserves the authority to issue orders interpreting rules
pertaining to public utilities and therein resolving formal complaints.Idaho Admin Code r.
31.21.01.009.Sunnyside is a water corporation and therefore operation as a public utility and is
subject to the original subject matter ofjurisdiction ofthe IPUC.
Therefore,in the matter concerning whether Sunnyside is in Violation of Idaho Admin
Code r.31.21 .01 .602.01,it is the finding of this Court that the District Court does not have
subject matter jurisdiction over this matter and that the IPUC specifically reserves and therein
retains the authority in this matter to reach a final judgment in the matter.Consistent with the
findings of this Court,Sorrells’Motion to Dismiss for lack of subject matter jurisdiction is
therefore GRANTED in part pursuant to Idaho Rules of Civil Procedure 12(b)(1).
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CONCLUSION
HEREBY,it is the finding ofthe Court that Sorrells’Motion to Dismiss is GRANTED in
part and DENIED in part consistent with findings of this Court above.
IT IS SO ORDERED.
Dated this /day of March 2022.
Bruce L.Pickett
District Judge
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Case No.CV10-21—6624
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on March ,2022,the foregoing MEMORANDUM
DECISION was entered,and a true and correct copy was served upon the parties listed below by
mailing,with the correct postage thereon,or by causing the same to be delivered to their
courthouse boxes
Counsel for PETITIONER:Counsel for RESPONDENT:
Mark R.Fuller,ISB No.2698 Paul B.Rippel,ISB No.2762
[e-mail] [e-mail]
Austin O.Allen,ISB No.10076
[e-mail]
Penny Manning
Clerk of the District Court
Bonneville County,Idaho
By
Deputy Clerk
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EXHIBIT Q
EXHIBIT R