20050708Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 1895
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
BAR CIRCLE "8" WATER COMPANY FOR
AUTHORITY TO ESTABLISH COMMERCIAL
FIRE PROTECTION TARIFF RATES.
CASE NO. BCS-O5-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the May 11
2005 Notice of Application, Notice of Modified Procedure and Notice of Comment/Protest
Deadline in Case No. BCS-05-, submits the following comments.
BACKGROUND
On April 22, 2005, Robert Turnipseed, president of Bar Circle "S" Water Company
(Bar Circle; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) requesting authority to establish a commercial fire protection tariff. Bar Circle is
located in Hayden, Idaho and provides water service to approximately 141 customers.
Bar Circle does not currently have an approved commercial fire protection tariff.
reflected in its Application, at the request of Water ford Park LLC, a boat and RV condominium
storage facility, the Company entered into an agreement with Waterford to provide fire
STAFF COMMENTS JULY 8 , 2005
protection service required for the facility. Attached to the Application is a copy of the
Waterford agreement and a copy of the engineer s master plan for the storage facility that shows
the location of water lines, fire hydrants and sprinkler service lines that are being installed to
meet the fire protection requirements. Waterford is paying the cost to mo,;,e existing lines and
install new lines and hydrants.
Bar Circle states that it must dedicate a large portion of its existing storage reservoir to
the fire suppression needs of the Waterford facility. The Company reports that nearly a third of
Bar Circle s existing reservoir will be dedicated to meeting the required 53 400-gallon storage
requirement.
Bar Circle anticipates that additional growth will occur in the area in the near future and
that the Company will expand to serve new customers. Because of the large portion of the
existing reservoir that will be dedicated to fire protection for the Waterford facility, the Company
states that it will need to construct additional storage to meet its growth requirement sooner than
anticipated. Attached to the Company s Application is an engineering estimate for the
construction of a new 20 000-gallon reservoir. Total cost of the new reservoir is expected to be
$90 000.
Bar Circle requests approval of commercial fire protection rates as follows:
Monthly rate for commercial private hydrants
Monthly rate for commercial sprinklers per connection
$146.
$ 97.
The rates were developed using the cost of the new reservoir that could be avoided were it not
for the dedication of a portion of the Company s existing facilities. Because the new reservoir
much smaller than the dedicated portion of the Company s existing reservoir, the Company
believes its calculations are conservative. The fire protection rates when applied to the entire
Waterford facility, the Company contends, will generate monthly revenue of$I 121.68.
As reflected in attachments to the Company s Application, the dedicated portion of the
existing reservoir is the equivalent of 23 residential customers' average daily requirements
during the peak season of the year. The fire flow requirement for the Waterford facility, the
Company contends, is nearly twice the average demand of the existing residential customers
connected to the system.
Bar Circle purchased and combined its water system with the Rancho Aero water system
in 2002. A Water Master Plan with engineer s report and hydraulic analysis was prepared at that
time. The report was favorable with one substantial exception. That exception was the supply
STAFF COMMENTS JULY 8 , 2005
a nearby firehouse where pressures could, under some circumstances, be inadequate. Bar Circle
resolved the pressure problem by adding a ten (10) inch main.
The Bar Circle water system consists of two (2) well pumps (maximum pumping
capacity 581 gpm), two (2) storage tanks (one (1) concrete and one (1) steel, total available
storage 165 000 gallons), three (3) booster pumps (total maximum capacity 485 gpm), a fire
water supply pump (2500 gpm at 150 foot of head), a standby diesel generator capable of
running either the booster pumps or the fire water pump at full capacity, and various water mains
and distribution lines. The specific connection to Hayden Executive RV and Boat Condos ' (RV
Condos) fire protection system is a ten (10) inch main (belonging to Bar Circle) connected to a
six (6) inch service (installed and owned by RV Condos).
ST AFF REVIEW
Staff investigated data available regarding the size and capability of the Bar Circle
system to determine whether that system is appropriate for this type of service. The new fire
protection system was designed by the Patriot Fire Protection Company of Spokane, Washington
(see Attachment No. A). After review of documents and discussions with the fire marshal of the
Northern Lakes Fire District, the DEQ in Couer d' Alene and the owner of Bar Circle, it was
determined that the water system is well maintained and has the ability to provide this type of
service. The current water system is adequate to provide a flow of 640 gallons per minute (gpm)
of water at 60 psig for the R V Condos fire protection system and that flow conforms to the
National Fire Protection Association (NFP A) requirements. The existing fire protection
requirement is that 1 000 gpm of flow be available for residential fire protection. The two fire
protection requirements combined (existing residential and new commercial) are 1 640 gpm
leaving 442 gpm of the 2 082-gpm total theoretically available for drinking water supply.
In parallel, further contacts with the fire marshal in the Northern Lakes Fire District
resulted in information that the fire marshal has provided the necessary approvals for the fire
protection system. The fire marshal (Dean Marcus) provided two letters stating that both the
requirements for the fire protection system are satisfied and that the water system pressure and
flow available to meet the fire protection system requirements are adequate, (see Attachment No.
A). The DEQ, which has jurisdiction over design and adequacy of the system for supply to and
safety of the public, stated that it is investigating this issue and several others and is in
discussions with Bar Circle. DEQ stated that it would provide the results of its investigation to
STAFF COMMENTS JULY 8, 2005
the PUC when completed. Since the fire protection service is already being provided by Bar
Circle, it is appropriate to proceed with a tariff design and rate determination.
STAFF'S ANALYSIS OF COMPANY'S PROPOSED RATES
The Company in its Application proposed monthly rates of$146.05 per fire hydrant and
$97.65 per connection for a commercial sprinkler service. Under these rates the RV Condos
would pay a monthly bill of$I 121.68 ($13,460.16 annually).
The Company developed these rates using an engineer s estimate for adding a new
500-gallon reservoir to the current system. The Company claims that using this methodology
is a conservative approach since the 20 500-gallon reservoir is smaller than the dedicated portion
of the Company s existing reservoir needed to provide the fire protection service for Waterford
Park. However, the NFP A requirement for storage is 54 300 gallons (see Attachment No. A),
which this smaller tank does not satisfy.
Staff does not belief the Company s proposal is the appropriate method to determine a
tariff rate for the storage facility. The Company is not going to construct the new storage
facility. The Company is using an engineer s estimate of the cost to construct the water facility
as a surrogate for the cost of the Company s existing storage capacity. The Company is going
use its existing storage capacity to provide the capacity required for service. Therefore, the
methodology for determining the appropriate tariff should consider only the Company s existing
system for servicing the water requirement.
Alternatively, the Staff believes that a more appropriate method to determine the rate is to
examine the demand that the fire protection service will place on the current system. In this
case, the service being provided by Bar Circle to R V Condos does not involve any incremental
capital cost and very little additional operating costs. The fire protection system will use very
little water on an annual basis. Therefore, Staff believes that an alternative method, based upon
the demand the service places upon the current system stated in terms of equivalency to the
demand for service by the current customers is more appropriate (see Attachment No. B).
TARIFF STRUCTURE AND DETERMINATION METHODOLOGY
Since the fire protection system will use little water, but will have significant demand
requirements, the fixed monthly rate for fire protection was calculated by Staff based on the
fixed monthly cost to meet average demand of an equivalent number of water service customers.
STAFF COMMENTS JULY 8, 2005
Further, to check the validity of this method, Staff reviewed similar tariffs at United Water and
Eagle Water.
The two key requirements for a fire protection system are pumping capacity and water
storage. The approved fire protection system requires that 54 300 gallons of storage be available
and that 640 gpm of pumping capacity be available. The storage requirement is for a dedicated
volume of storage that will always be held ready for the commercial fire protection service.
Existing customers may use all of the existing pumping capacity virtually all the time with the
commercial fire protection system only using pumping capacity for annual tests or in the event of
a fire. Staff, therefore elected to use storage capacity as the surrogate for establishing a tariff.
To allocate costs based on storage, fire protection storage demand was established based
on average storage demand for an equivalent number of residential water customers. There are
141 Bar Circle customers at present and there are a total of 165 000 gallons of available storage
in two different reservoirs. This results in an average storage of 1 170 gallons per customer. The
300 gallons of storage to be dedicated to the fire protection system is equivalent to the
average amount of storage for 46.40 customers. The remaining storage of 110 700 gallons
provides 785 gallons of storage per customer above the new fire protection storage requirements.
While fixed costs of storage are not necessarily recovered in the customer charge, Staff
used the current minimum customer charge adjusted for the monthly volume allowance as a
proxy for the fixed costs associated with water storage.
The Bar Circle minimum charge of$15.00 per month includes 7 500 gallons of water
usage. Subtracting the cost of this commodity from the minimum charge at the published tariff of
$0.95 per 1 000 gallons, results in a remaining fixed charge of $7.88 per customer per month.
The resulting "fixed" storage costs allocated to fire protection is then calculated by
multiplying the fixed cost per customer of $7.88 by 46.40 equivalent customers. The resulting
tariff is $365.63 per month or $4 384.97 per year.
Staff compared rates for similar services in other systems to those derived in this case
using the fixed cost methodology. United Water has a tariff for fire hydrants and a separate tariff
for sprinkler systems (September 2000). Eagle Water Company has a single tariff sheet for both
sprinkler systems and hose connections (July 1982).
There are ten (10) service points in the RV Condos fire protection system. They consist
of three (3) fire hydrants and seven (7) sprinkler systems, one each in seven different (7)
buildings. Applying the RV Condos service points to the United Water tariffs results in a
STAFF COMMENTS JULY 8, 2005
monthly tariff of$333.19 and applying the Eagle Water tariff to the RV Condos service results in
a tariff of $257.40 per month. Both of these two older tariffs are lower than but are within the
same range as those derived by Staff for this case.
Staff believes that storing and delivering water for fire protection to a commercial entity
is a reasonable service for Bar Circle to offer. Further, pending final comment from the DEQ,
Staff believes it likely that Bar Circle will be able to deliver this new service without affecting
service to its residential customers.
RECOMMENDATIONS
Staff recommends that the Commission approve an interim tariff of $365.41 per month
for commercial fire protection service. Staff recommends that this tariffbe reviewed once DEQ
has made its determination regarding the Bar Circle system s adequacy to handle the addition of
the commercial fire protection service.
In order to provide consistency between the Bar Circle fire protection tariff and similar
existing tariffs, Staff further recommends that that tariff be structured to assess fees for hydrants
and for sprinkler systems. The recommended rates are:
For each Fire Hydrant
For each building sprinkler system
$9.50 per month
$48.13 per month
Respectfully submitted this
gi'a day
of July 2005.
~~.
cott oodbury
Deputy Attorney General
Technical Staff: Harry Hall
Joe Leckie
i:umisc:comments/bcsewO5.1swhhjl
STAFF COMMENTS JULY 8 , 2005
ATTACHMENT NO. A
FIRE MARSHALL'S LETTERS
AND
PATRIOT FIRE PROTECTION LETTER
Attachment A
Case No. BCS-05-
Staff Comments
07/08/05 Page 1 of 5
Northern Lakes Fire Protection District
PrAllrlh, c~ru~rI g th~ '=lr~'=lC f' T-T a"rI~rI '=lrld D '=lthrlrllrl'"l
Hayden Area
Rathdrum Area
[phone] . Fax: [phone]
[phone] . Fax [phone]
June 6, 2005
Harry Hall
Idaho Public Utilities Commission
Mr. Hall
The Bar Circle S water system was approved by the Fire District to provide the necessary
fire flows for the Hayden Lake Boat and R V storage facility located at 374 W Garwood
Road.
The water system has the necessary capacity and pumping capabilities. They also installed
the required fire hydrants.
If you have a questions please call 772-5711
Thank you,
Dean S. Marcus
Fire Marshal
cc:Bob Turnipseed
POBox 1870
Hayden, ID 83835
125 W Hayden Avenue" Hayden, Idaho 83835
Attachment A
Case No. BCS-05-
Staff Comments
07/08/05 Page 2 of 5
Northern Lakes Fire Protection District
Proudly serving the areas of Hayden and Rathdrum
:; .. . . ...-
Hayden Area
Rathdrom Area
[phone] . Fax~ (208) 772..3044
[phone]. Fax (208) 6~7~2088
June 13,.2005.
Harry H a1l
Idaho Public Utilities CommiSsion
?vir. HaU,
'This is a. foUow...up letter to the one r e-mailed you last week. .A$ stated in the letter of June fib., the Bar
Circle S water Sj"stem was approved by the Fire Distdctto provide the necessary tift; flo'loysfbr the
Hayden Lake Boat. and R V storage facility located .at 374W Garwood Road.
The water system has the necessary capacity and pumping capabilines. They also installed tberequired
fire hydrants..
. ..
Th~ pumping capability ora water system, as fax as meflow$ go) comes from the International Fire Code.
SECTION Bl 05:FIRE...FLOW REQ~lREf\.IENTS FOR BUILDINGS
BI0S..1 One- and t'W4",family dwellhtgs..
Thenrlnimmn fire-flow requirements for one- andw,'o--family dwellings having a frre-t1owca.lculation
area\vbich does notexceed.3.t600 square feet (344.5 m2) shall be 1,000' gallons per :nmute (3785.4
Umin). Fire flow (JIld flow duration for .dwellings having a fire-flow c.alculatianarea in e..xcess of 3:0600
square feet (344.5 m2) shall not be less than that specified mYabie BIOS.
Exception: A reduction in required fire flow of 50 percent, as approved; is allowed when the building is
provided with an approved automatic sprinkler system.
8105..2 Buildings other than one..andtwo--family dwellings...
Theminlmumfireflow andflo\v duration for buildings other thanone-and two.famiJy dwellings shall be
as specified in Table BIOS..I.
Exception:: A reduction in required fire flow of up to 50 percent; as approved, is allowed when the
bui1ding is providedwitb.an approved autom.atic sprinkler system instaUed in accordance with Section
903.1.1 or 903..3.2 of the International Fire Cooe. \There buildings are also of Type I or
construcdon and are a light-hazard ()(:~pancy as defined hy.NFPA 13j the reduction may be up to
percent. The resulting fire flow shaD not be less than 1,500 gallo:nsper minut-e (567811min) for the
prescribed duratiolt as specified in Table B105.
125 W. Hayden Avenue. Haydent Idaho 83835
Attachment A
Case No. BCS-05-
Staff Comments
07/08/05 Page 3 of 5
Table BI0S.1takesinto consideration the size of the buil.ding and the construction class to determine the
required fire flow. 1,.500 gpm is the starting amount for buildings other than one and two family
dw-eHings. One and two family dwelling units req~ a flow durat1on.of two hours. Commercial buildings
stS.rt at a 2.hour flow requirement and go up to 4 hours.
These code requirements ,vQuId set the .storage capacity fat o.ne and two .family dwellings at 120,000
gallons and commercia! storage capacity at 180 000 galions. This is before domestic use is figured in.
With the above code requirements be stated~ there are many other factors that the code allows to be used
to derennine storage requirements and/()ravailability, Pump gpm rating, well capacity, financial
considerations and the ability of the fireqistrlct to provide water are some of the :factors used when
detennining the storage requirement.
The :Hayden Lake Executive RV and Boat Storage facility was required to be sprinklered do to the size
the buildings and the proposed tire flows the would be available at the time. That gave them a reduction in
the required fire fl.ows.
~ If you have a questions please oan 772..5711
. . .
you,
D~ S.arcus
' .. .. .
Fire Marshal
cc.Bob Tumupseed
POBox 1870
Hayden,ID 83835
Attachment A
Case No. BCS-05-
Staff Comments
07/08/05 Page 4 of 5
FA
10005 East Montgomery
8poJcane~ W A9?206
(509) 920*3428
FAX (S~19) 920.3708
E Mail: davidh~atriotfir;.c()m
To:
Attn:
From:
Bob Turnipseed Date: Augu$,\ 11 t 2004
Fax Number: 20a..S65-:9300
Number of pages sent: 1 -inccoy
Dave Herrmann
Project Man~ger
Re,ference:
Subject;
Executive RV & Boat
Site F~re Water Requirements
Bob,
"ye spoken with iDeao MarCU$ of Northern Lakes FjreDi$trict regarding fire flow and water$torage requirements for this $i1e. A summary is as renews:
NFPA 13 requires a minimum water supply equal to the$prinkfer system demand plus, an
additional 250 gpm for !ita department use for a minimum of 60 mlnute.
Forthts site~ thesprinktersystem demand is 390gpm.Ad~Ing2S0 gpm 1orflr$department use gives us a total demand of 640 gpmil' reqUited for 60 mInutes. or .tota1
of38,.4qQ'qaI~
the total de-mandof640 gpm must be available at 60 pst at the site fire mai,,-
2. Fire hydrant supply requirements C)re a minimum of 250gpmfor 1:20 minutas~ or a total
WfJkoow of "0 requIrement to combine th~ total~~ slncethe NFPA requirement includes firedepartment hose stn:l$ms. albaitonry forSOn11nUfe$ as a safety buffE!t. and sfoce the fire hydrantshouldnneeded if the $pdnlder system Is functioning properly.
;:~nkJr:,a ~'for
:'~ ~. .
. ~:IfIIIO~~~=~~":'~~:~ ~f
your exj$t!ng supply curang.ement.
If you have anyqoostions Tagarding fhBGe~ please gIve me a calf.
,L"
Dave. H~rrmann
PtojectManager
Note: It you did nat receive aU of thepag~($) or If~Q h3Veaquesttoo. ple8$~l ~11.
Attachment A
Case No. BCS-05-
Staff Comments
07/08/05 Page 5 of 5
ATTACHMENT NO. B
CALCULATION OF TARIFF
Attachment B
Case No. BCS-05-
Staff Comments
07/08/05 Page 1 of 4
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CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 8TH DAY OF JULY 2005 SERVED
THE FOREGOING COMMENTS OF THE COMMISSION ST AFF, IN CASE
NO. BCS-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE
FOLLOWING:
ROBERT TURNIPSEED
PRESIDENT
BAR CIRCLE'S' RANCH WATER CO.
PO BOX 1870
HAYDEN ID 83835
ROBERT SMITH
2209 N BRYSON RD
BOISE ID 83713
CERTIFICATE OF SERVICE