20190621Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: June 21,2019
SUBJECT: IN THE MATTER OF ORDER TO SHOW CAUSE FOR BG & CM
RAILROAD, INC.'S FAILURE TO PAY 2018 ANNUAL ASSESSMENT;
CASE NO. BGR-R.T9-01
On April 20,2018, the Commission notif-red BG & CM Railroad, Inc. ("BG & CM" or
the "Company") through Invoice No. 2018-247 that it owed $15,41 1.83 for its annual assessment
(the "Assessment"). See Affidavit of Nancy Ashcraft, Exhibit A. On October 2,2018, a demand
letter was sent to the Company by certified mail, retum receipt requested, demanding it pay its
Assessment. See Exhibit 1. On December 31, 2018, the Commission notified the Company
through Invoice No. INT-2018-04 that the Company owes an additional $924.71in interest for
failure to pay its Assessment in a timely manner. 1d. Copies of these invoices are enclosed. On
May 15,2019 a Statement showing the unpaid Assessment and accrued interest was sent to the
Company. 1d.
On January 23,2019, correspondence was sent to BG & CM by certitied mail, return
receipt requested, demanding the Company pay its delinquent Assessment in the amount of
$15,411.83, plus accrued interest of $924.71. See Exhibit 1. On June 6, 2019, a second demand
letter was sent to the Company by certified mail, return receipt requested, demanding it pay its
Assessment plus all accrued interest on or before June 15,2019. Id. The Company to date has
failed to rectify this delinquency.
STAFF RECOMMENDATION
Staff recommends that the Commission issue the attached proposed Notice of Hearing
& Order to Show Cause why the Company should not be required by the Commission to:
DECISION MEMORANDUM I
immediately pay its past due Assessment plus all accrued interest in the total
amount of $16,336.54; and,
pay up to a $2,000.00 penalty per fbr its continuing failure to pay its Assessment
and all accrued interest. See ldaho Code $$ 6l-706 & 6l-707.
The proposed Notice of Hearing and Order to Show Cause further directs the attorney
of the Commission to commence an action in District Court should the Company fail to show such
cause.
COMMISSION DECISION
Does the Commission wish to set a date for and issue the proposed Notice of Hearing
& Order to Show Cause attached hereto as Exhibit 2?
Jr.
ttorney General
I \LeBal\RAIL\BGR-R-19-01\BORRl90l decjhl docx
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a
2DECISION MEMORANDUM
.lohn R.
EXHIBIT I
True and Correct Copies of Demand Letters
(Attached)
JDECISION MEMORANDUM
VIA CERTIFIED MAIL
October 2, 2018
BG & CM Railroad
10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Re: Gross Intrastale Operating Revenue Report - Notice of Possible Legal Action
Attn: Mr. Colin Shclman,
The Office of the Attomey Ceneral has been rnade aware that BG & CM Railroad has failed to submit its 2018 annual
assessment. Idaho Code $ 6l-1005 stales that, "[o]n or before May lst of each year, the commission shall notifo each public
utility and railrood corporation subject to $e provisions of this Bct, by mail, of the amount of the fee for the ensuing liscal
year beginning July L Upon failure, refusal or neglect of any public utility or railroad corporation to pay such fee the
qttorney general shall commence an action in the name of the state to collect the same." Commission Stsffhas notified BG
& CM Railroad the amount of the fee on invoice 2018-247 dated April 20, 201 8.
Idalro Code$ 6l-706 & 6l-710 s(ates that, "any public utility or corporation that fails to comply with any of the provisions
of this sct or which fails to obey, ob.serve, or comply with any order, decision, rule, direction, demand or requirement is
subject to a penalty of up to 52,000."
To avoid further proceedings and court action, BG & CM Rsilroad must immediately pay its annual &ssessment. A copy of
your original invoice is enclosed. Any qucstions concerning thc assessment may be directed (o Maria Barratt-Riley, (208)
334-0337, or by email: nrada barratt-rilev@puc idaho uov
Sincerely,
Brandorr Karpen
Deputy Attorney General
Enclosures
cc: Maria Barratt-fuley
Joe Leckie
Idaho Public Utilities Commission
P.0. 8or El720, 8obs, l0 &naHIII4
C.L B{rtt r Govtrrer
Prul Xtcllrndcr,
Krlsdnc Rrpcr,
Erlc Andorron,
Commlsdoncr
CommlsslonGt
Cornmbslorpr
BG & CM Railroad
10100 N Ambassador Dr., Ste 105
Kansas City, MO 64153
Assessment lnvoice
Date lnvoice No.
4t20t2018 2018-247
Due Date 5/t 5/20 r 8
2017 G|OR sI,54t,953.57
Tlre 2018 assessment fee for public utilities is .21'19o/o and .9995910 for
railroads by Commission Order Number 34033 and 34032
respectively. The minimum assessment fee is $50.00.
The 2018 assessnrcttt fee nny be paid in equal semi-annual installnrcnts. The Jirst installment of the
regulaton,fee is due no later than lt{oy I 5, 2018. Thc second ittstallment is due no later than November
15, 2018. Outstanding balances after Novenrber 15, 2018 will be assessed with a 60,6 annual intereslfee.
Per ldaho code 67-2026, assessntentfees over $100,000 must be paid by an elecn'onicrtmds transfer.
AIYY UTTLITY OR RAILROAD OBJECTING TO THE ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTION WITH THE COMMISSION PI,RSUANT TO IDAHO CODE 6I.1007.
Please make checks or money orders payabte to:
ldaho Pubtic Utitities Commission
PO BOX 83720
BO|SE lD 83720-0074
Please contoct Nancy Ashcraft with queslions or comnrcnls: [phone] or [e-mail]
Remittance advice for:
BG & CM Railroad
Account No.BGR-R
Description Assessment Amount
20 I 7 Railroad Assessment .9995%15,411.83
Total sl5,4l1.83
Payments/Credits s0.00
Balance Due sl5,4l1.83
Account No. BGR-R lnvoice No. 2A18-247 Remittance amount: $
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BG & CM Railroad
Attn: Cohn Sheiman
101qp N Amba:sador Dr., Ste. 105
rXansas CitY, MO, 64153
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ldaho Public Utrlrtres Commi,sion
Attn: Nancy Ashcraft
472W. Washington 5t.
Boise, ld 83704
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STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
LAWRENCE G, WASDEI.J
VIA CERTIFIED NIAIL
.lanrrary 23,2019
RG & CM Railroad
101000 N. Ambassador Dr., Ste 105
Kansas Cit,v, MO 64153
Re: Unpaid Annual Asscssmcnt Fees - Notice of Possible Legal Action
Dear Mr. Clolin Shelman,
'l'he Ottce of the Attomey Gencral for the State of'Idaho has been made aware that BG
& CM Railroad ("Company") has failed to submit its 2017 annualassessment to the ldaho Public
Utilities Commission ("Commission"). This failure will result in Iegal action if not remedied
rvithin ten days of receipt of this [etter.
Idaho Cocle $ 6l-1001 provides that each railroad "shallpay to the commission in cach
year, a special regulatory fee . . . to defray the amount to be expended . . . for expenses in
supervising and regulating . , . railroad corporationsl.)" Iclaho Code $ 6l-1005 states,
Such fee shall bc paid to the commission in equal serniannual
installments on or betbre the l5th days ol'November and May in
cach fiscal year. If payment shall not be made on or before said
respective dates, the installments so due shall bear interest at the
rate of six per cent (6Yo) per annum until such time as the full
amount of the installment shall havc been paid. Upon failure,
refusal or neglcct of any public utility or railroad corporation to
pay such fbe the attorney general shall comnrcnce an action in the
name of the state to collect the same.
On April 20,2018, the Commission notified the Company through Invoice No. 2018-247
that the Company owed $15,411.83 for its 2017 annual assessment. This amount was calculated
pursuant to ldaho Code $ 61-1004(l) and is equal to lYo of the Company's gross operating
revenues derived from intrastate business during the preceding calendar year. On December 3l ,
2018, the Commission notilied the Company through Invoice No. INT-2018-04 that the
Company owes an additional $924.71in intcrest for failure to pay the2017 annual assessment in
a timely rnanner. Copics of these invoices are cnclosed.
Contracts & Administrative Law Divisir:n, lclaho Public Utilities Com:rrrssion
P0. Box 83720. Boise, lrlalto 83720-1t074, Tele;:hone: {20e} 334.fJ300, tAX: (208) 3349-3762. Email: ipucApurc,siar1l .id.us
Located at {72 Wcst Washington St., Boisc, ldaho 33702
Due to the Company's Iailure to mcct its deadlines, if the entire outstanding amount of
$ 16,336.54 is not paid to the Commission within ten days of receipt ol'this letter, the Office of
the Attorney Gencralof the State of Idaho is empolvercd to commence an action to collect the
total outstanding amount pursuant to lduho Code $ 6l - 1005. fhe Company may also be subject
to a penalty of up to $2,000 per violation pursuant to ldulzo Code $ 6l-706. Furthermore, Idaho
Code $ 6l-709 provides fbr personal liability for officers or agents of public utilities ',vho fail to
comply with Commission orders or directions.
Any questions concerning payment of the Cornpany's 2017 annual assessment may be
directed to Nancy Ashcrolt at [phone] or by email at 44!9).:.ash_qroft,l puc.idaho.qg_-v_.
Sincerely,
Ed ewell
Dcputy Attorney General
Enclosures
Maria Barrat-lUIey
Joe Leckie
Nancy Ashcroft
cc
ldaho Public Utilities Commission
P.0. Bor &t7Il, Bolse, l0 Sl2ll-fi)74
C.L Eutct otter, Govorllr
Prul Xjellander, Commlrstoner
Krlsdne Rrper, Commlssloncr
Erlc Anderson, Commbsloncr
BG & CM Railroad
10100 N Ambassador Dr., Ste 105
Kansas City, MO 64153
Assessment lnvoice
Date lnvoice No.
4t20t2018 2018-247
Due Date 5/15/2018
2017 GIOR 20'17 GlORAmount
The 2018 assessment fee for public utilities is .2179% and .9995% ibr
railroads by Commission Order Number 34033 and 34032
respectively. The minimuln assessment fee is $50.00.
The 201 8 assessment fee may be paid in equal semi-annual installments. The Jirst installment of the
regulatoryfee is due no later than May 15, 2018. The second installment is due no later than November
15,2018. Outstandingbalancesa/terNovemberl5,20lSwillbeassessedwitha6okinterestfee. Per
Idaho code 67-2026, assessment fees over $100,000 must be paid by an electronic ftmds transfer.
ANY UTILITY OR RAILROAD OBJECTING TO THE ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTION WITH THE COMTVflSSION PTJRSUANT TO IDAHO CODE 61.1007.
Pleasc make chccks or money orders payablc to:
Idaho Public Utilities Commission
PO BOX 83720
BOISE ID 83'120-00'74
Please contact Nancy Ashcraft with questions or comments: [phone] or [e-mail]
Remittance advice for:
BG & CM Railroad
BGR-R lnvoice No. 2018-247 Remittance amount:$
Account No.BGR.R
Description Assessment Amount
2017 Railroad Assessment .9995%15,411.83
Total s15,411.83
Payments/Credits $0.00
Balance Due $15,411.83
Account No
ldaho Public Utilities Cornmission
P.0. Bor &1720, Bolse, !D mruHxl74
C.L Sutdr Otter, Govermr
Paul K.lal lrndcr, Commlssloner
Krlstlne Rapcr, Commlsslonar
Erlc Andcrson, Commlssloncr
BG & CM Railroad
10100 N Ambassador Dr., Ste 105
Kansas Ciry, MO 64153
lnterest lnvoice
Date lnvoice No.
1431nA18 rNT.2018-04
Account No.BGR.R Due Date 12t3u2018
Description Assessment Amount
lnterest assessed on accoult balance after November l5 924.71
Total 9924.7t
The second installment of the regulatory fee was due no later than November I 5 , 20I 8. Outstanding
balances after November I 5, 20 I I have been assessed with a 6%o interest fee.
Ptease make checks or money orders payabte to:
ldaho Pubtic Util,ities Commission
PO BOX 83720
BO|SE tD 83720-0074
Please contact Nancy Ashcraft with questions ar comments: [phone] or nancy.ashcraJi(@puc.idaho.gov
Remittance advice for:
BG & CM Railroad
Account No. BGR-R lnvoice No. INT-2018-04 Remittance amount $
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10100 N Ambassador Dr., Ste. L05
Kansas City, Mo 54153
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ldaho public Utilities Commission
Attn: Nancy Ashcraft
472W. Washington St
Boise, ldaho g3702
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STATE OF IDAHO
OFFICE OF THE ATTORNEY GENEBAL
LAWRENCE G. WASDEN
VIA CERTIFIBD MAIL
June 6,2019
Webb Roberts
BG & CM Railroad, Inc.
10100 N. Ambassador Dr., Ste 105
Kansas City, MO 64153
Rc: Unpaid Annual Assessmcnt Fces - Notice of Possible Ordcr to Show Cause and
Legal Action
Dear Mr. Roberts,
'l'his office represents the ldaho I'ublic Utilities Commission (the "Commission"). On
January 23,2019, a letter was scnt to BG & CM Railroad, Inc. (the "Company") notifying the
Company it had failed to pay its 2018 annual assessment ("2018 Assessment"), in the amount of
$15,411.83. Interest charges of $924.71 have accrued on that unpaid balance. In addition, in
April of 2019 the Company was sent a statement tiom the Commission setting forth its 2019
regulatory fee of $12,862.10 (.'2019 Assessment").1 Half of the Company's 2019 Assessment in
the amount of $6,431.05 was due on May 15.2019 and remains unpaid. A copy of the latest
Statement lrom tlre Commission along rvith Assessment Invoices shorving these amounts are
enclosed.
DBMAND IS HEREBY MADE that the Company immediately pay the 2018 Assessment,
including all accrued interest and the first half of the 2019 Assessment, in the total amount of
522,767.59, by hand delivering or mailing the payment to the Commission at 472 W. Washington
Street, Boise, Idaho 83720 or by U.S. Mail at P.O. Box 83720, Boise, Idaho 83720-0074, Attn:
Nancy Ashcraft.
If thc Commission does not rcccive thc Company's 522,767.59 payment by June 15,
2019, the Commission will initiate legal proceedings to compel that payment. Such proceedings
may include an administrative proceeding in which the Company is required to appear before the
I AnnuaI asscssmenls are calculated using annual gross operating rcvenues derived frorn intraslate business as
reported by the Company. The Commission Staff is currently auditing the Company to determine il its reported
gross opcrating revenues are accurate. To the cxtcnt the Company underreported its gross operating revenues from
intrastate business it may orve further amounts for its annual assessments.
Contracts & Adminlstratlv€ Law Dlvlsion, ldaho Publlc Utlllllos Commlsslon
P.O. Box 83720, Boise, ldaho 83720-0074, Telephone: [phone], FAX: 1208| 3349-3762, Email: [e-mail]
Localed al 472 West Weshinglon St., BoisE. ldaho 33702
Page 2
Commission in Boise, Idaho to show cause rvhy the Commission should not order the Company
to:
. lmmediately pay its 2018 Assessment plus all accrued interest and half of its 2019
Assessment; and,
. Pay up to a $2,000.00 penalty per day for the Company's continuing failure to pay
the 201 8 Assessment and all accrued interest and half of its 201 9 Assessment.
See ldaho Code $$ 6l-706 &.61-707.
Additionally, the Commission may sue the Company in court to collect the 2018
Assessment and allaccrued interest, half of the 2019 Assessment and any penalties it may assess.
See ldaho Corle $$ 6l-1005 & 6l-712. In both administrative and court proceedings, the
Commission would ask the tribunal to order the Company to pay the Commission's attomey's
fees and costs to prosecute the case. Sec ldaln Corle $$ 12-117, -120, -l2l and ldaho Rule of
Civil Procedure 54.
Thank you for vour prompt pttention to this matter.
Sincerely,
Hammond Jr.
Atlomey Cencral
Enclosures
Kerry A. Wagner
Maria Barratt-Riley
Nancy Ashcraft
I 1l-.Brlr L.-!.1 I\ti!( Iqldcr LLETTIRS'Coll(tron Lrltcriu)rruo{, t.rllrr l}(Il 0{,-06 :019 ds
cc:
ldaho Public Utilities Commission
PO Box 83720, Bolse, lD 83720.{,074
Brad Govemor
Prul KJallrndcr, Commlrrlonrr
XrltUna Rapor. Comml!!l oncr
Erlc Andrrron, Commlrrl onrr
StatementBC & CM Railroad
10100 N Ambassador Dr., Ste 105
Kansas City, IvlO 64153 Date
5 t5 t0r9
Account #BGR.R
Autstanding balances after November 15, 2016 willbe assessed with a 6% interest fee.
Plcasc contact Nancy Aslrcraft at [phone] or by ernail at nancy aslrcraftia puc.idaho.gov if you have any
questions or nccd additional inlonnation.
Date Transaction Amount Balance
03/3 1,,20 I 8
04/20,20 t 8
t2/31'20t8
04/16'20t9
Baiance ibnvard
INV #2018-247.
--- 2018 Railroad Asscssmcnt S15,411.83
-.- Tax: Slote Sales Tax @ 6.0% ,, 0 00
INV #tNT-20t8-04.
--- Assessment Interest 5924.7 I
-- Ta.'i: State Sales Tax @ 6.0% ". 0.00
tNV #2019-037.
-- 2019 I(ailroad Assessnrcnt S I 2,862. t0
- Tax: Statc Sales Tax @ 6.0or'o = 0,00
r5,4lt 83
924 7t
12,862 t0
0.00
t5.41 I 83
16,316.54
29, I 98 64
CURRENT 1.3O DAYS PAST DUE 31.60 DAYS PAST
DUE
61.90 OAYS PAST
DUE
OVER 90 DAYS
PASI DUE Amounl Due
I2,86? I0 000 () 00 000 16.116.5{s29. I 98 6{
ldaho Public Utilities Commission
PO Box 83720, Bolse, l9 83720-0074
Bmcl Govemor
Plul Klcllrndar. Commlarloner
KrlstlnG Rapor, Commlailon!r
Erlc And.rton, Commlrtlon!r
BG & CN4 Railroad
10100 N Arrrbassador Dr., Ste 105
Kansas City, MO 64 153
Assessment lnvoice
Date lnvoice No.
4/16n019 2019-037
Du€ Date 5,15 l0t9
The 2019 assessmcnt fee for public utilitres is .25299'n rnd .9996 ' n for
railroads by Comnussion Ordcr Nuntber 343 l0 and 343 I I
rcspcctivcly. The rrrinimurn assessnrent t'ee is S50.00.
The20lgassessmentfecnwybepaidinequolscmi-anrtualinstulluents. TheJirstinstallntento.l'the
regtlaton'fce is cluc no later tlnn l|ay 15, 2019. 'flrc second installnrctil is due no later llvn Noveutber
15,2019. OutstandiugbalancasofierNovantberl5,20l9rvill beassessedwitha6%oottaul interest.fee
Pcr ldaha cocle 67-2a26, assessmerttfees ot,er 810A,000 rttust bo paid b),an electronicfunds transfer,
ANY UTILITY OR RAILROAD OBJECTING TO THE ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTION WITH TT{E COMI\ITSSION PURSUANT TO IDAHO CODE 6I.IOO7.
Ptease make checks or money orders payabte to:
ldaho Publ,ic Utitities Commission
PO BOX 83720
BO|SE rD 8]7ZA.A074
Please contact Nancv Ashcra.ft tvith questious ot'comnrcnts: (208) 334-A3J5 or [e-mail]
Remittance advice lbr:
BG & CM Railroad
Account No BGR.R 2018 GIOR s t,286.725 00
Descriptron Assessment Amounl
20 I 9 Rarlroad Assessrnent .99960."12,862. I 0
Total s 1 2,862.1 0
Payments/Credits S0.fi,
Balance Due 5r 2,862.10
Account No. BGR-R lnvoice No. 2019'037 Remittance amount: $
ldaho Public Utilities Commission
P.0. Box t(lzo, 8olse,l0 83720-0074
C,L Butclt 0lter, Govemor
Paul Klallrnder, CommlsConcrXrlsllne R!per, Commlsrloncr
Erlc Anderson, Commlrsloncr
BG & Clvl Railroad
10100 N Arrrbassador Dr., Stc 105
Kansas Cily, tvlO 64153
Interest lnvoice
Date lnvoice No.
143112018 INT-2018-04
Account No.BGR.R Due Oate I2l3t;20t8
Description Assessment Amount
Intercst asscssed on account balancc aiicr November l 5 924.71
Total 9924.71
Thesecondntslallmetio{thcrcgulatory,.{ccv,asdue ttolatet'thanNovcttrberl5,20l8. Out.:lattdittg
balattces a.fier Novetnber l5,20l8lnve bean ossesscd v'ith a 6loinlerest.fbc.
Ptease make checks or money orders payable to:
ldaho Public Utitities Commission
PO BOX 83720
BOISE rD 837?0-0474
Pleose coiltoct Nuncy..lsllsrafi with qrtcstions or c'ottt,,tailts [phone] or nurrc),.ushcruli@puc'.iilulru.gav
Rernitlance advicc for:
BG & CI\4 Railroad
Account No, BGR-R lnvoice No INI-2018-04 Remittance amount: $
ldaho Public Utilities Commission
P.0. Bor 8320, Bolse, l0 83720-0074
C.L Buldr 0tter, Govemor
Prul Kfcllrndcr,
XrlsUne R!p?r,
Erlc Andcrson,
Commlssloncr
Commlssloner
Commls:lone r
Assessment lnvoice
BG & CM Railroad
10100 N Amba-ssador Dr., Stc 105
Kansas Ciry, MO 641 53
Due Date 5/ I s/:01 8
2017 G|OR 2017 GIOR Amounl
The 2018 assessmcnt fee for public utilities is .2179ot, and.99959o for
railroads by Commission Order Number 34033 and 34032
rcspectivcly. Tlrc minimurn assessment fee is S50.00.
Thc20lSassesstneill.faenruvbepuidincqualscrni-ortnrml htstallmenls. Thefirslirtstollmentofthe
ragulatory,/ce is rlue no luler lhun Moy 15, 2018. The second iuslallnrcnt is due no laler than November
15, 2018. Orttstanding balanccs after Novcntber 15. 2018 nill be ossessed with a 6'% interestfee. Per
[clalrc corle 67-2026, assessnrenlfees over SlA0,A00 tttust be paid by ail electronicftmds transfer.
ANY UTILITY OR RAILIIOAD OBJECTING TO THE ASSBSST\{ENT STATBD ABOVE I\{AY
I.-ILE AN OBJBCTION IVITH'THE COIVIN,IISSION PURSUANT TO IDAHO CODE 6I.IOO7.
Ple:rsc make chccks or moncy orders piryirble to
ldaho Public l.,lilitlcs Comnussion
iro 00x 837t0
uorsE lD t{372t)-007.1
Pleose cotttuct Nuncy Asltcru.li v,itlt questiutrs or comn,etus. (208) 331-03J5 or [e-mail]'
Renrittarrce advice for:
BC & CM Railroad
BGR.R lnvoice No.
Date lnvoice No.
4l2At2A18 2018-247
Account No.BGR.R
Description Assessmenl Amount
2017 Railroad Assessn:ent .99954 15..1t 1.83
Total st5,4l t.83
Payments/Credits $0.00
Balance Due $15,4t1.83
Account No.2A18-247 Remitlance amount: $
United States
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so that we can return the card to you.r Attach this card to the back of the mailpiece,
or on the front if
Article Addressed to:
\\'cbb Roberts
llc & CN{ Railroad, Inc.
10100 N. Anrbassaclor Dr.. Ste 105
Kansas C:t1', Ir4O 6.1 I 53
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9!9raano Public Utilities commission
4:Z+l Z W. Washington Street
i$.o.Box 83720
?.'nBoise. ID 83 720-0074iiirta=
in this box'a Please your name, address,
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EXHIBIT 2
Proposed Notice of Hearing & Order to Show Cause
(Attached)
4DECISION MEMORANDUM
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BG & CM RAILROAD,
INC.'S SPECIAL REGULATORY FEE
PURSUANT TO rDAHO CODE $S 6l-1001
THROUGH 61.1005
CASE NO. BGR.R.19.O1
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.
BG & CM Railroad, Inc. ("Railroad") is a short line railroad providing service in Nez
Perce and Clearwater Counties, Idaho. The Railroad is a "railroad corporation," and a "common
carrier" as def-rned by ldaho Code $$ 6l-11l and 6l-113. As such, the Company is a public
utility subject to the jurisdiction of the Commission. Idaho Code $ 6l-129. This matter comes
before the Commission due to the Railroad's failure to pay its regulatory fees for 2018, as
required by ldaho Code $$ 6l-1001 through 6l-1005.
BACKGROUND
I. Commission Regulatory Fees
The Commission's operating funds are derived by assessing regulatory fees upon
utilities and railroads subject to the Commission's jurisdiction. Each year, the Legislature
authorizes the Commission to expend funds necessary to regulate and supervise utilities and
railroads doing business in Idaho. Idaho Code $ 61-1001. The maximum annual assessment fee
for each railroad shall not exceed one percent (l%) of its gross intrastate operating revenues, and
the minimum annual fee shall be no less than $50. Idaho Code $ 6l-1004(l) e (q.
Idaho Code $ 6l-1003 requires that, "[o]n or befbre April lst of each year, each
public utility and railroad corporation subject to the jurisdiction of the commission, shall file
with the commission a return verified by an otficer or agent of the public utility or railroad
corporation involved, showing its gross operating revenues from its intrastate utility or railroad
business in Idaho for the preceding calendar year during which it canied on such intrastate utility
or railroad business." Idaho Code $ 6l - 1003.
Idaho Code $ 6l-1001 requires that "each railroad corporation, subject to the
jurisdiction of the commission, and subject to the provisions of this act, shall pay to the
commission in each year,a special regulatory fee in such amount as the commission shall find
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. I
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and determine to be necessary. together with the amount of all other t'ees paid or payable to the
commission by each such public utility and railroad corporation . . [.]" Idaho Code $ 6l-1001;
see also ldaho Code $ 61-1005.
Once all the railroads have reported their intrastate operating revenues for the
previous calendar year, the Commission calculates the "proportionate assessment that all railroad
corporations . . . shall bear. . . in proportion to their respective gross operating revenues derived
from intrastate [railroad] business in Idaho for the preceding calendar year . . f.f" Idaho Code $
6l - 1004. The Commission then notifies each railroad of its assessed regulatory fee no later than
May 1 of each year. Idaho Code $ 61-1005. The regulatory f-ee may be paid to the Commission
in equal semi-annual installments due May 15 and November 15 of each year. Id.; see also
Idaho Code $ 6l -1003.
Idaho Code $ 6l-1004 sets forth the duties of the Commission with regard to the
determination of fees. With regard to the year in question, the Commission has fulfilled its
statutory requirements, and the rates set by the Commission were below the statutory maximum
of one percent (1%) ol gross intrastate revenue. See Order Nos. 34033 & 34032; see also
A/fidavit o.f Nancy Ashcrafi.
In the Decision Memorandum. dated June 21, 2019, Commission Staff alleged the
Railroad failed to pay its assessed fees for calendar year 2018. Specifically, on April 20,2018,
the Company was notified through Invoice No. 2018-256 that it owed $15,411.83 for its annual
assessment (the "Assessment"). See Affidavit ofNancy Ashcraft, Exhibit A. Furthermore, on
multiple occasions, the Commission Staff attempted to collect the Railroad's annual fees,
sending invoices, demand letters, and notification that failure to comply may result in legal
action. See Exhibit No. I to Decision Memorandum and AfJidavit of Ashcraft Nevertheless, the
Railroad has tailed, refused, or neglected to meet the requirements of the statutes and the
Commission Staff s demands it pay its outstanding regulatory fee. Id.
The Railroad has failed to pay its statutorily required annual regulatory fees to the
Commission fbr 201 8. See Alfidavit of Nancy Ashcra/i. Each failure to pay violates ldaho Code
$$ 6l-1003 & 6r-loos.
In December of 2018, the Railroad was assessed$924.71in interest on its outstanding
balance of $15,411.83 (6%). See Idaho Code $ 61-1005 (stating that utilities and railroads
failing to timely pay shall incur an annual fee of 60Z interest on all unpaid balances).
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 2
The Railroad's current outstanding balance is $16,336.54.
JURISDICTIONAL STATEMENT
The Commission has jurisdiction in this matter pursuant to ldaho Code $$ 6l-101, et
seq., including ldaho Code $ 61-501, which vests the Commission with the authority and
jurisdiction to supervise and regulate every public utility in the state. More specifically, Idaho
Code $$ 6l-701, et seq., provides direction to the Commission relating to enforcement, penalties,
and interpretation of public utilities law. See also ldaho Corle $$ 61-1001 through 6l-1005
(relating to regulatory fees of railroads).
CLAIM
l. Violations of ldaho Code $$ 6l-1001 ond 6l-1005
Idaho Code $$ 61-1001 and 6l-1005 require that the Railroad pay to the Commission
an annual regulatory fee in a proportional amount based on the Railroad's intrastate gross
operating revenues as reported in its annual verified return.
The Railroad has been contacted on several occasions by Commission Staff
demanding that it pay its annual regulatory fee for 2018. In May and November 2018, the
Railroad failed or refused to pay the annual regulatory fee totaling $15,411.83r to the
Commission in violation of ldaho Code $$ 6l-1001 and 6l-1005. See ffidavit of Ashcraft.
Because of the Railroad's failure to pay its annual regulatory fees, it has incurred $924.71 in
fees.2 At the time of the entry of this Order, BG & CM Railroad, Inc. owes the Commission
$16,336.54 in regulatory fees and interest charges. Id.
ORDER
Accordingly, based on the evidence before the Commission, and good cause
appearing, IT IS HEREBY ORDERED that BG &CM Railroad, Inc. shall appear before the
Commission AT A.M./P.M. (MDN ON . IN THE
COMMISSION HEARING ROOM. 472 WEST WASHINGTON STREET. BOISE.
IDAHO, to show cause why the following relief should not be granted by summary order of the
Commission:
I This amount represents an outstanding balance for failing to pay its annual regulatory fee for 2018.
2 ldaho Code $ 6l-1005 requires that any outstanding balances be charged an annual fee of6oh interest on the
balance.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.aJ
l. Order the Railroad to immediately pay the current entire outstanding
balance fbr 2018 annual f'ees, plus interest, in the amount of $16,336.54:
2. Direct the Commission's attorney to seek the imposition of civil penalties
pursuant to ldaho Code $ 6l-706 of $2.000 fbr each and every ofTense,
totaling $
3. Direct the Commission's attorney to initiate an action in District Court to
enforce the determination of the Commission. consistent with ldaho Code
$$ 6l-705, 6l-706, and 61-1005.
IT IS FURTHER ORDERED that all hearings and prehearing conf-erences in this
matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
[phone] (Telephone)
[phone] (FAX)
E-Mail: [e-mail]
IT IS FURTHER ORDERED that all proceedings in this matter will be conducted
pursuant to Title 6l of the Idaho Code and the Commission's Rules of Procedure, IDAPA
3l .01 .01 .000 et seq.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order to
Show Cause by Certified Mail (return receipt requested) upon the person designated to receive
Notices of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated
by the utility to receive legal service in Idaho. Idaho Code $ 61-615.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day ofJune 2019.
PAUL KJELLANDER. PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST
Diane M. Hanian
Commission Secretary
I \LeSal\RAIL\BGR-R- I9.0I\BGCM_Notice I doc
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.5
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BG & CM RAILROAD,
INC.'S FAILURE TO PAY SPECIAL
REGULATORY FEE PURSUANT TO IDAHO
coDE $$ 6l-1001 THROUGH 61-100s
CASE NO. BGR.R.Tg.OI
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AFFIDAVIT OF NANCY
ASHCRAFT
NANCY ASHCRAFT, being duly sworn, stated:
l. My name is Nancy Ashcraft. I am over 2l years of age, of sound mind, and I have
personal knowledge of the facts stated herein.
2. I am a Financial Specialist, Senior at the Idaho Public Utilities Commission. I started
working in this position in 2016. I am responsible for the billing and collection of annual fees
assessed on public utilities as describedin ldaho Code $$ 6l-1001 through 6l-1005.
3. In May and November 2018. BG & CM Railroad, Inc. ("BG & CM" or the "Company")
failed or refused to pay its annual regulatory fee of $ I 5,41 I .83 ("Assessment").
4. In December of 2018, the Company was assessedg924.70 in interest on the outstanding
balance of its Assessment of $ I 5,4 I I .83 at the rate of six percent (6%).
5. Currently, BG & CM owes the Commission $16,336.54 in fees and interest charges.
6. Staff has attempted to collect the Company's past due Assessment by sending invoices
to it. Additionally, demand letters have also been sent to BG & CM notifying it that failure to pay
its Assessment plus all accrued interest would result in legal action. True and correct copies of the
invoices are attached hereto and incorporated by reference herein as Exhibit A.
7. Despite such actions by Staff, BG & CM still has failed to pay its Assessment and
interest owed to the Commission remains unpaid and past due.
AFFIDAVIT OF NANCY ASHCRAFT
I
Nr
Financial Senior
Idaho Public Utilities Commission
., , l-
SUBSCRIBED AND SWORN to befbre me this -.- day of June 2019.
Yui ir.itdw"Yti\
Notary Publib for Idaho
My commission expires on l .i 5 . lii,?.{>
l:\Legal\RAIL\BCR-R- I 9-0 l\Affi davir_Ashcrafl_BGCM docx
2
OF
t. Ha
AFFIDAVIT OF NANCY ASHCRAFT
Dated this Z I day of June 2}lg.
EXHIBIT A
True and correct copies of Invoices sent to the Company
(Attached)
3
AFFIDAVIT OF NANCY ASHCRAFT
ldaho Public Utilities Commission
Po Box 83720, Bolse. lD 83720-0074
Brad Govemor
Peul Kicllandcr, Commi!3ioncrKrlltin. Repcr, Comml$ioncr
Eric Andrrron, Commlr3lonar
StatementBC & CM Railroad
I 0100 N Anrbassador Dr.. Ste I 05
Kansas Ciry, MO 641 53 Date
5/l -51201 9
Account #BGR-R
Outstanding balances after November 15, 2016 willbe assessed with a 6%o interest fee
Plcase contact Nancy Aslicraft at (208) i34-0325 or by email at nancy.ashcraft(nlpuc.idaho.gov if you have any
questions or need additional intonnation.
Date Transaction Amount Balance
03/-3 l/20 I 8
04/20!2018
t2t3tt20t8
041t6t20t9
Balance tbnvard
rN v #20 t 8-247 .
--- 2018 Railroad Assessment S 15,41 1.83
---'l'ax: State Salcs Tax (tD 6.0%:0.00
rNV #rNT-20r8-04.
--- Asscssment lnterest 5924.7 I
--- Tax: State Sales Tax (d;,6.09'o : 0.00
INV /i2019-037.
--- 2019 Railroad Assessrnent $ 12,862. 10
---'l'ax: State Sales'f ax (Q 6.09/o:0.00
r5,41 r.83
e24.71
12,862. t 0
0.00
r 5,1t I .83
16,336.54
29.t98.64
CURRENT 1-30 DAYS PAST DUE 31.60 DAYS PAST
DUE
61-90 DAYS PAST
DUE Amount Due
12.ti62.10 0.00 000 0.(x,t6.316.54 s29, | 98.64
OVER 90 DAYS
PAST DUE
ldaho Public Utilities Commission
P.0. Bor flil720, Bolse,l0 83720-0074
C.L Bulclr Otter, Governor
Paul Kjcllander, CommissionerKristinG Rrpcr, Commlssloncr
Eric Andcrson, Commlssloncr
BG & CM Railroad
10100 N Ambassador Dr.. Ste 105
Kansas City, MO 64153
lnterest lnvoice
Date lnvoice No
12t31t2018 tNT-2018-04
Account No BGR-R Due Date t2t3ltz0lE
Description Assessment Amount
Interest assessed on account balance alier Novetttbcr l 5 924.7 t
Total $924.7t
The secontl in.stqllnteill o/'thc regulnlrn,.fee v'as due no later thort Noventber 15, 2018. Outstandirtg
balances a.fier Novetnber 15, 2018 have hecn ctssessed with a 6(% intcrest.fae.
Ptease make checks or money orders payabte to:
ldaho Pubtic Utitities Commission
PO BOX 8372A
BO|SE rD 83720-0074
Pleuse contsc't Nanc'.v ,,lslxrn/i rvith qrtestittns or contntettts: [phone] or nunc.v.uslt<:ruli(i;.puc'.irluho.gov
Remittance advice for:
BG & CM Railroad
Account No. BGR-R lnvoice No. INT-2018-04 Remittance amount: $
ldaho Public Utilities Commission
P.0. 8or &1720, 8oise, lD 83720-0074
C.L Butch 0tler, Governor
Prul Klcllandcr, Commlssloncr
KrlsUnc Rrper, Commlssloncr
Erlc Andarson, Commissioncr
BG & CIU Railroad
l0100 N Arnbassador Dr., Ste 105
Kansas City, MO 6.1I 53
Assessment lnvoice
Date lnvoice No.
4l2At2A18 2018-247
Due Date s/r512018
2017 G|OR 20'17 GIOR Amount
Tlre 20 18 assessnrent t-ee for public utilities is.2179o.to and.9995%o tbr
railroads by Commission Order Nunrber 34033 and 34012
respectively. The urinimum assessment fee is S50.00.
The20lBassessment.fbe nwybe poidineErul semi-otutual installnrcnts. The.firstinstallnrcnto/'the
regulaton,fee ist{trcnolaterthanA,[av'15,2018. Thesec:onc{ inslqllnrcntistluenoloterthanNot,enrber
15.2018. Outstanelingbolancesu.fierNoventberl5,20lSwill beussesseclv,itha6(%interest./be. Per
Iclaho c'odc 67-2026, assessment./bes over 5100,000 rnusl be poicl b.t'an electronic.funds trans.fer.
ANY UTII,ITY OR RAILROAD OBJECTING TO THE ASSESSIVIENT STATED ABOVE MAY
FILE AN OBJECTTON WITH THE COMMISSION PURSUANT TO IDAHO CODE 6I-1007.
Please make chccks or mtlney orders payable to:
Idaho Public LJtilities ('onrrnission
PO BOX 8:i720
B()lsE ID ti372()-007,1
Pleuse cottact Nrtnc1,,-lshcraji v'illt questitlns or coil,menls: l)08) 334-82-r or notc.v.oshcra/i(tlpuc.itluho.gov
Remittance advice f'or:
BG & CM Railroad
BGR-R lnvoice No.
Account No BGR.R
Description Assessment Amount
20I7 Railroad Asscssmenl .9995oh 15,,11 1.83
Total sl5.4l1.83
Payments/Credits s0.00
Balance Due s r 5,41 1.83
Account No 2018-247 Remittance amount: $