20090115Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
POBOX 83720
BOISE, IDAHO 83720-0074
[phone]
BARNO. 1895
Qr:Cr:I"... -!"1.i
2009 JANIS AM 9: 09
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 "S" WATER COMPANY TO )
AMEND ITS CERTIFICATE OF )
CONVENIENCE AND NECESSITY )
)
)
)
CASE NO. BCS-W-08-1
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 Notice of
Application, Notice of Modified Procedure and Notice ofCommentlrotest Deadline issued on
December 2,2008 in Case No. BCS-W-08-1, submits the following comments.
BACKGROUND
On November 21,2008, Bar Circle "S" Water Company (Bar Circle "S"; Company) fied an
Application with the Idaho Public Utilties Commission (Commission) requesting authority to
amend its Certificate of Convenience and Necessity No. 296 to include a new subdivision, Double T
Estates in Kootenai County, Idaho. Idaho Code § 61-526; IDAPA 31.01.01.112.
Bar Circle "S" Water Company provides water service to the Bar Circle "S" Ranch
subdivision located on the Rathdru Prairie in Kootenai County, Idaho approximately seven miles
nort of the City of Coeur d Alene. The Company currently serves approximately 156 residential
STAFF COMMENTS 1 JANUARY 15,2009
customers and one commercial customer. Residential customers are typically located on five-acre
lots.
An application and plat map for a new subdivision, Double T Estates, has been fied with
Kootenai County for approval. The final plat has not yet been approved but approval is expected
soon and construction should begin in the next few months. The new subdivision is located on
approximately 237 acres in a portion of the West ~ of Section 14, Township 52 North, Range 4
West of the Boise Meridian (W~ S14, T52N, R4W, BM) in Kootenai County, Idaho. This
subdivision is located approximately 1,300 lineal feet from the existing Bar Circle "S" service area
at the Ohio Match Road and Ramsey Road intersection. A vicinity map is attached to the
Company's Application and shows the location of the existing service area and the proposed new
subdivision. Also attached is a copy of the proposed plat map of the new subdivision. A final
approved plat map complete with detail of the location of all water system installations will be
provided to the Commission when completed.
The subdivision wil contain 47 five-acre residential home sites and wil be developed in
two phases. Phase 1 consists of 16 lots along Ramsey and Chilco Road north of the existing water
system. According to the Application, a 10-inch pipe will be required for the full length along
Ramsey and Chilco Roads to satisfy fire flow requirements. Double T Estates' Phase 2 consists of
31 lots south of Chilco Road and east of Ramsey Road. Water service to Phase 2
will be provided by an 8-inch pipe through the development from Ramsey to Chilco and the two
cul-de-sacs wil be served by 6-inch pipes.
Constrction costs of the water distribution system including mains, valves, fire hydrants,
customer service line taps, meter boxes, meter bases and the line extension required to interconnect
to the existing water system will be paid by the subdivision developer and contributed to Bar Circle
"S" Water Company. The only cost to be borne by the Company will be the cost of meters at the
time a property is developed and service is requested. The Company claims addition of this service
area to the existing system will have no adverse effect on the Company's existing Bar Circle "S"
customers.
Bar Circle "S" recently commissioned a hydraulic engineering study of its water system by
Toothman-Orton Engineering. The Company claims in its Application that this hydraulic modeling
study determined there is adequate capacity on the Company's existing system to serve both phases
of the Double T Estates subdivision without the need for construction of an additional source of
supply or reservoir facilties.
STAFF COMMENTS 2 JANUARY 15,2009
The Company indicates that it is not aware of any other water company in the vicinity of the
new subdivision that would be willng and able to provide service to the area being developed.
STAFF ANALYSIS
Staff has reviewed the Company's Application, the response to Staffs production request,
and the November 2008 Engineering Report prepared by Toothman-Orton Engineering Company as
par of the Application. Staff recommends that the Company's Application for service area
expansion be granted for Phase 1. Staff fuher recommends that all extension costs be recorded on
Bar Circle "S" books as a Contribution in Aid of Constrction (CIAC).
The Company initially states in its Application that based on the hydraulic modeling study
pedormed by the consulting engineer, there is adequate capacity on the Company's existing system
to serve the new Double T Estates subdivision (Phases 1 and 2) without the need for construction of
an additional source of supply or reservoir facilities. Based on the Engineering Report, Staff
believes that future customers under Phase 1 and curent Company customers will be adequately
and reliably served by the present water supply.
However, as indicated in the Engineering Report, service to the 31 additional lots under
Phase 2 would be considered a substantial modification to the water system by the Idaho
Deparment of Environmental Quality (IDEQ). A substantial modification would require Bar Circle
"S" to provide a back-up well for the system. The IDEQ Rule states:
Section 50l.07.b of the Idaho Rules for Public Drinking Water Systems aDAPA
58.01.08) establishes conditions for a substantially modifed water system;
b. Existing community public water systems that are substatially modified after April
15,2007 shall meet the requirements of Subsection 501.07 in those portions of the
system affected by the modifications. (3-30-07)
1. For the puroses of Subsection 501.07., the Deparment shall consider a system to be
substantially modified when there is a combined increase of twenty-five percent
(25%) or more above the system's existing configuration in the following
factors:
(3-30-07)
(1) Population served or number of service connections. (3-30-07)
(2) Total length of transmission and distribution water mains. (3-30-07)
(3) Peak or average water demand per connection. (3-30-07)
513. FACILITY AND DESIGN STANDARDS - NUMBER OF GROUND
WATER SOURCES REQUIRED. New community water systems served by ground
water and constructed after July 1, 1985, or existing community water systems served
STAFF COMMENTS 3 JANUARY 15,2009
by ground water that are substantially modified after July, 2002, shall have a minimum
of two (2) sources if they are intended to serve more than twenty-five (25) homes or
equivalent. Under normal operating conditions, with any source out of service, the
remaining source or sources shall be capable of providing either the peak hour demand
of the system or maximum day demand plus equalization storage. See Subsection
501.17 for general design requirements concerning fire flow capacity. For the purose
of Section 513 only, the Deparment shall consider a system to be "substantially
modified" when there is a combined increase of twenty-five percent (25%) or more
above the system's existing configuration in the following factors: (3-30-07)
01. Population Served or Number of Service Connections. (3-30-07)
02. Length of Water Mains. (3-30-07)
03. Peak or Average Water Demand per Connection. (3-30-07)
It is Staffs understanding under IDEQ rules that the additional customers in Phase 2 would
require that another water source be installed. That water supply (well) would need to have
suffcient capacity to meet the requirements for Peak Hour flow. Staff contacted IDEQ, Northern
Idaho Region and confirmed that this is the case. See IDEQ's comments on Bar Circle "S" Water
System Extension for Double T Estates Phase 1 (Attachment 1).
Therefore, Staff recommends that only Phase 1 of the requested additional service area for
Double T Estates be granted to the Company, until the Company has shown to the Commission that
it has satisfied the Rules and Regulations promulgated by IDEQ applicable to Phase 2, and the cost
of required facilties are properly allocated.
Staff requested the Company through Production Request to provide a detailed cost estimate
of the constrction of the extended water distribution system and the effects on Bar Circle's
Revenue Requirements. The Company did not provide a cost estimate but explained that all costs
of expansion of the service area wil be borne by the development company. At some time in the
future, when Phase 2 of Double T Estates is developed, there may be some system improvements
required (the additional well) that will benefit both existing customers and expansion area
customers. Bar Circle "S" would propose at that time a reasonable sharing of system improvement
costs between the Company and the development company. Staff agrees that allocation of those
future costs should be determined when the additional well is installed. Staff recommends that all
construction costs incured in extending the water service to Phase 1 of Double T Estates be
recorded on Bar Circle "S" books as a Contribution in Aid of Construction (CIAC).
Staff also requested a copy of the signed Water Main Extension Agreement between the
Company and Double T Estates. The Company provided a copy of the fully executed agreement on
January 9,2009. The Double T Estates is an Idaho limited liabilty company and is also owned by
STAFF COMMENTS 4 JANUARY 15,2009
Robert N. Turnpseed, owner of Bar Circle "S" Water Company. The agreement is quite extensive
and makes reference, among others, to the following key provisions: 1) Double T Estates agrees to
pay any and all costs of construction of the water main extension and related water system
improvements servicing DoubleT Estates; 2) Double T Estates contributes the water main
extension and related system improvements servicing Double T Estates built by the Bar Circle "S"
to Bar Circle "S."; 3) the agreement is subject to the Commission's Customer Relations Rules and
Bar Circle "S" filed tariffs which shall apply to the expanded service terrtory, and 4) in the event
that any governentally mandated improvements to the Bar Circle "S" system are required for
system reliabilty or quality of service puroses during the period of development of Double T
Estates, Bar Circle "S" and Double T Estates wil share the costs of such improvements based upon
the number of building lots within Bar Circle "S" curent service area (215 lots) and Double T
Estates (47 lots), a ratio of 82% Bar Circle "S" to 18% Double T Estates. Staff believes that the
above contract provisions, with the exception of Item 4, appear reasonable and generally adhere to
the Commission's Uniform Main Extension Rule for Water Utilties. On Item 4, the Company and
Double T Estates are proposing the sharng of the costs of governentally mandated improvements
in the futue. Staff believes that it is stil premature to set the allocation of these costs between the
Company and the developer. Staff reserves the right to analyze this issue after additional
development has been completed and a new rate case is fied with the Commission to recover the
costs of the mandated improvements.
The Company indicates in the Application that it is not aware of any other company in the
vicinity of the new subdivision that would be willng and able to provide service to the area being
developed. Additional information was provided by the Company though Staff production request,
including a map showing locations of public water systems in the vicinity. Staff reviewed the
submitted water utilty information and found that no other public water utilities regulated by the
Commission are operating close to Double T Estates. However, several public water systems
operated by homeowner associations or water districts are within one to three miles of the proposed
development, with the exception of Ashley Estates Homeowners Association Water System which
is immediately east of the proposed Double T Estates subdivision. Furher investigation by Staff
revealed that the Ashley Estates HOA is a very small water system serving only 16 customers.
Staff believes that the Ashley water system, with a capacity of 18 gpm, is inadequate to serve the
needs of Double T Estates.
STAFF COMMENTS 5 JANUARY 15,2009
As par of its review, Staff investigated potential water right issues affecting the Application
to assure that the proposed expansion is adequately and legally covered by the Company's curent
water rights. Staf contacted the Idaho Deparment of Water Resources (IDWR) and confirmed that
Bar Circle "S" has a valid water permit which is curently being processed by the IDWR for final
issuance of water license. However, based on Staffs investigation, it appears that the proposed
service area of expansion (Phase 1 and Phase 2 of Double T Estates) is not covered by the current
water permit. Staff recommends that the Company contact or notify the Idaho Department of Water
Resources concerning the additional area to be covered by the existing water permit as soon as the
Commission has approved the requested expansion.
RECOMMENDATIONS
Staff recommends that the Commission:
1. Grant the request for service area expansion to serve Phase 1 of Double T Estates.
2. Require that all water main extension costs be recorded as Contribution in Aid of
Constrction on Bar Circle "S" books.
3. Staff reserves the right in analyzing the sharing of cost between the Company and
Double T Estates after additional development has been completed and a new rate case
is fied with the Commission to recover the costs of the mandated improvements.
4. Direct the Company to notify the IDWR concerning the additional service area being
proposed by the Company after approval by the Commission.
Respectfully submitted this / 5 ~ day of Janua 2009.
~d~
Sco Woodbur
Deputy Attorney General
Technical Staff: Gerr Galinato
i:umisc:commentscsw08. lswgg comments
STAFF COMMENTS 6 JANUARY 15,2009
o '0\I'Ma," il/i
S~.'i-"o-'-~'.~ ~,'"1'0 .:i ~~'lit,\ u'\ u.
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
2110 Ironwood Parkway. Coeur d'Alene, Idaho 83814. [phone]
December 4, 2008
C.L. "Sutch' Otter, Governor
Toni Hardesty, Director
Mr. Robert Turpseed
Bar Circle S Water Company
POBox 1870
Hayden Lake, ID 83835
avonco§imbris.com
RE: Bar Circle S Water System Extension for Double T Estates Phase I
Dear Mr. Turipseed:
On November 14,2008 Ben Weymouth, P.E. from Toothan-Orton Engineering Company submitted to ths
offce information reponding to our September 23, 2008 letter to you regarding expansion of the Bar Circle S
Ranch public drnkg water system to serve both phas of your proposed 243-acre subdviion called Double
T Estates. Phas I (plat) of ths development is identified as sixteen (16) 5-acre residential lots located along
the east side of Rasey Road and the south side ofChilco Road on the perieter ofthe propert. Phase II is
planed for the remaining, consisting of thrt (30) additional lots.
The submitt included the following items:
. Water Engineerig Report for Bar Circle S Water System Double T Esttes Expaion as prepard and
revised by Mr. Weymouth and dated November 2008.
. Double T Estates Preliminar Plat prepaed by Inland Nortwest Consultats dated July 5, 2005.
. Roadway/Water System Improvement plan for Double T Estates Phae I prepared by Steven Syrcle,
P.E. from Tri-State Consulting Engineers Inc dated November 11, 2008.
. Specialty Products Grading and Utilty Plan record drwigs staped on September 30, 2008 by James
Coleman P.E. with Coleman Engineerig. These record drwings were accepted by DEQ in a letter
dated November 21,2008.
. Addendum No.1 to the Water Engineerig Report dated November 17, 2008.
. A will serve letter from Bar Circle S Water Company for all of Double T Estates' fort-six (46)
proposed 5-acre 10ts.
. Two letters from Fire Inspetor Tyler Dreschel with Northern Lakes Fire Protection District dated
Augut 29,2008 and October 1,2008 regarding fire protection requirements.
Water Engineering Report: The revised report addresse our September 23, 2008 comment reflecting the
requiments of the Idao Rules for Public Drg Water Systems (Rules) in IDAPA 58.01.08 as follows:
1) Water Production: Since the flow meter on the Well #1 discharge was providing inconsistent data,
two short pwnp tests were done by the engineer from which a production rate of 483 gpm was u.sed for
the hydraulic modeL. As soon as the flow meter is calibrated and reinstaled, water production
informtion needs to be secured from Well #1 and reported to the engineer and DEQ, If th actu
production of Well #1 is less th tht used in the anysis, the report needs to be revised to reflect thecorrected rate. AriachmenfT
Case No. BCS-W-08-1
Staff Comments
01/15/09 Page 1 of 4
RE: Bar Circle S Water System Extension for Double T Estates Phase I
Decmber 4, 2008
Page 2
Production from Well #2 was given at 55 gpm for tota water production from the two wells of 538
gpm. The Rules specify that water production of at least 800 gallons per day per residence plus
irgation flows must be produced frm the sources. Using the reprt's maximum day deman of3200
gpRU as the production criterion, the two wells ar capable of supplyig 242 ERUs. With 154
existig users, 58 commtments for futu users, and 46 potential uses in the new subdivision for a tota
of258 ERUs, it appear the ultimate water prouction capacity nees to be increased.
The report proposes drlling of a thd well as par of Phas II in order to satisfy the reuiment in the
Rules that substatially modified water systems must have a minmum of two soures of water
production such that with the largest well out of service (Well #1) , the remang well(s) can satisfy
maxmum day demand. DEQ agees with the recommendation in the report that Phase II nees
completion of another well (Well #3) with a capacity of about 600 gpm.
Before Phas II ca proceed, the followig soure development steps need to be completed:
. The site of Well #3 needs to be approved by DEQ as being located on a properly sized well lot
meeting separtion distaces specified in the Rules.
. Well drllng plan and specifications prepared by an engieer must be approved by DEQ.
. Inormation on the completed well must be submitted to DEQ to cerif quatity and quaity
compliance,
2) Water Demand: The revised report contaned well production and service meter water data for 2006-8
and indicated average anual demand of alost 1000 gp per equivalent residential user (ERU). A
maximum day demand of about 3200 gpRU and peak hourly demd of 1.5 times the inmwn day
demand or 3.33 gpmÆRU was used with the hydrulic anysis. Since this inormation is baed on
act data and reflects high irgation deinands by the users, it is acceptable.
3) Peak Demand: The abilty of the four 10 Hp booster pwnps to satisfy peak demand impose by
existig and futue users remais unown. The report indicated a very short test of two of the 10Hp
pwnps suggestd the unts were operating as predicted by pwnp cures. However, conc1usiveevidence
that the four boosters can satisfy the peak demand by the futu users wa not provided.
In a meeting on August 6, 2002 and in our October 27, 2005 letter to you, we identified the reuiment
in the Rules that flow measurng devices needed to be intaled on these booster pumps. We had
allowed for the instalation of an elapsed time meter and cycle counte on each pump in lieu of inli
an instataeous and totaizing flow meter on the combined dischare for the four pwnps. Since the
water usage data did not report booster pwnp data, it appear you did not comply with ths requiment.
Before Phas II can be considered, a recording flow meter needs to be intaled on the output of the four
booster pwnps,
Attachment 1
Case No. BCS-W-08-1
Staff Comments
01/15/09 Page 2 of 4
RE: Bar Circle S Water System Extension for Double T Estates Phase I
December 4, 2008
Page 3
4) Fire Protecton: Nortern Laes Fire Protection Distrct has estblished a mium fie flow of 1000
gpm residential and 1500 gpm commercial for two hour. The hydrulic analysis had modeled
distrbution system pedormance and concluded tht the 1500 gpm fi pump is capable of satifyg fi
protection requirements thoughout the service area.
5) Calbration: The report discussed effort to calibrate the model to verify the accury of the
predictions. The anysis wa done using a 10-inch diameter water main on Rasey and Chilco Roads
and with completion of a short section of 10-inch diameter water mai to loop the system southwest of
the storage reservoir (P-85 in the model).
In conclusion, the Water Engieerig Report was found to be acceptable and fufills the requiments in the
Rules for a preliminar engineering report. .
RoadwaylWater System Improvement Plans for Double T Estates Phase I: Plan and specifications for
consction of about 7500 feet of 1 O-inch diameter C900 water main, five stadad fi hydrts, 450 feet of8-
inch diameter main extension in the locations with b10woffs, and sixteen water service connections servng
Phase I of Double T Estates have ben reviewed.
The submitted plan and specifications were found to be in accordance with the Rules and are approved for
constrction purses in accrdace with Section 39-118 of Idao Code,
Ths approval is contingent upon the design engieer submittg and seur DEQ approval of an addendum to
the plans and speifications that calls for constrction of the 10-inch diameter water mai needed to loop the
system at pipeline setion P-85. This approval needs to be seur before the approved constrction work is
completed with reord drwis for ths segment included with the record drwigs for the larger project.
Inpection of constrction of the Phas I water system improvements approved herein mus be done by an Idao
licensed Professional Engineer (p.E.) or by someone under the direct suprvision of a P.E. The submitt
indicated tht inspetion services for this project wil be provided by Tri-State Consulting Engineers Inc.
With th (30) days of completion of constction, Section 39-118(3) of Idao Code reuires that recrd
plans and specifications be submitted to DEQ complying with the following requirements:
. Based on inormation provided by the constrction contrtor and field observations made by the
engieer or the engineer's designee.
. Depict the actu constction of facilties.
. Contan certification by the professiona engineer in responsible chage of constction obseration,
. Conf material compliance with approved constrction plan and specifications or disclose any
material deviations therefrom.
If constrction is not completed with one year of the date of ths letter, the DEQ constrction approval
expires. An extension may be grted if the design engieer submits a wrtten request tht DEQ re-approve the
plan and specifications
Attachment 1
Case No. BCS-W-08-1
Staff Comments
01/15/09 Page 3 of 4
RE: Bar Circle S Water System Extension for Double T Estates Phase I
December 4, 2008
Page 4
Phase II Double T Estates: Before DEQ can review plans and specifications for completion of the water
distrbution system needed to extend drnkg water to the thrt (30) residential 5-acre lots in Phase II of
Double T Estates the followig items need to be completed:
1) Well #3 as descbe above mus be completed.
2) A flow meter must be inled on the dischage from the four booster pumps with the operator
recording actu water usage, and the engineer establishig the maximum pumping rate frm these
pumps to verfy capacity to meet peak demand,
3) Inormation regarding the output from Well #1 based on the reinstaled flow meter must be provided.
4) Submitt of an anua sum of water usage data collected by the system operator and anlyzed by
the design engineer that reinorces water demand crtera used in the hydraulic modeL.
5) Furer engineerig examtion of the recommendation in Addendwn No.1 of the Water Engieeg
Report that cals for instalation of a boster pwnp out in the distrbution system to provided sucient
pressures to the Phas II lots. It is not clear to us how reactivating the 55,OOO-gallon steel stdpipe and
a single in-line booster pwnp will alleviate low pressures in Phase II or be the best solution to the low
pressur sitution. A more detaled addendwn to the Water Engineeg Reprt discussing altetives
to correct ths problem such as upgring the capaities of the existing booster pwnps or looping the
distbution syste into Phase IT nees to be provided,
To ensur that you are in agrment with these conditions and provide a clear pathway for Phase II of ths
development, we ask that you provide ths offce with a letter indicating your agment with the five items
listed above and outling a schedule for completion of each item, If you ar not in ageement with any of the
items, we suggest you propose altertive approaches. To resolve ths in a tiely maer, we ask tht ths
agrement letter be provided by you to ths offce before Dember 31, 2008.
Sincerely,~?4!
Gar J. Gafey, P.E.
Gary. Gaffneytßdeq. idaho.goy
. c:Steven Syrcle, ssyrcle(itristateid.com
Ben Weymouth, bweymouth(itoengrco.com
Dean Marchus, dmarcus(inorthernlakesfire.com
Mark Mussman, mmussmanaYkcgov. us
Jim Coleman, jcolemanaFcolemaneng.com
Ellen Mueller, emueller(iphd l.idaho.gov
(#10744, drwigs at F-24, Report at B-93 spes)Attachment 1
Case No. BCS-W-08-1
Staff Comments
01/15/09 Page 4 of 4
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 15TH DAY OF JANUARY 2009,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. BCS-W-08-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
ROBERT N TURNIPSEED
PRESIDENT
BAR CIRCLE "S" WATER CO
PO BOX 1870
HA YDEN ID 83835
E-MAIL: avondalecon(fverizon.net
ROBERT E SMITH
2209 N BRYSON RD
BOISE ID 83713
E-MAIL: utiltygroup(fyahoo.com
SEC~'"
CERTIFICATE OF SERVICE