20070814Application.pdf

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Tel: [phone] Fax: [phone]
mollylPrichardso nandoleary. com
o. Box 7218 Boise. 10 83707 - 515 N. 27th Sr. Boise. 10 83702
August 6, 2007
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
POBox 83720
Boise ID 83720-0074
Hand Delivered
RE: Case No. 6AG-w--61-0 (
Dear Ms. Jewell:
I am enclosing an original and seven (7) copies of the APPLICATION OF
EAGLE WATER COMPANY, INC. FOR EXTENSION EMERGENCY SUR-
CHARGE.
Please note that with the original, we are including the FINAL ENGINEER-
ING REPORT ON THE WATER SUPPLY SYSTEM STUDY for Eagle Water
Company, Inc.
Also enclosed is a copy to be date stamped and retumed for our files.
Sincerely,
(tmd\i
Nina Curtis
Richardson & O'Leary, PLLC
- --,
Molly O'Leary (lSB # 4996)
Richardson & O'Leary, P.LLC.
O. Box 7218
Boise , ID 83707
Tel: [phone]
Fax: [phone]
Molly~richardsonandoleary. com
Attorneys for Eagle Water Company, Inc.
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION)
OF LOW WATER PRESSURE IN A PORTION OF EAGLE WATER
COMPANY'S SERVICE AREA
CASE NO. EAG-W~ 0'1-0
EAGLE WATER COMPANY, INC.'S
APPLICATION FOR SURCHARGE
EXTENSION
COMES NOW, Eagle Water Company, Inc. ("Eagle Water" or "the Company
and hereby requests that the Idaho Public Utilities Commission ("the Commission
issue an order extending the collection of the current surcharge to cover certain
necessary expenses previously incurred , and additional necessary expenses the
Company continues to incur, in connection with improvements to its water system
pursuant to this Commission s Order No.29840 and pursuant to a subsequent Consent
Order entered into with the Idaho Department of Environmental Quality ("DEQ") on
February 17, 2006. These expenses are proper expenses to be duly recovered from
the Company s ratepayers.
Eagle Water s request is based on the following:
EAGLE WATER COMPANY, INC,
APPLICATION FOR EXTENSION
OF SURCHARGE -
On August 1 , 2005 , DEQ issued a Notice of Violation to Eagle Water
alleging that the Company failed to maintain minimum water pressure in an isolated
portion of its system serving the upper reaches of Eagle Springs Subdivision in Eagle
Idaho.
On August 3 , 2005 , the Commission ordered Eagle Water to conduct an
engineering study to identify and address current and long-term system pressure
issues , if any. Order No. 29840. In addition , the Commission ordered Eagle Water to
file an Application for an Emergency Surcharge to finance short-term system
improvements.
On August 25 , 2005, Eagle Water filed an Application for Emergency
Surcharge , initiating the current docket. Among other things , Eagle Water outlined the
need for an additional source of water supply to mitigate current or long-term water
pressure concerns for its system.
DEQ filed Comments in response to Eagle Water s Application for
Emergency Surcharge, supporting Eagle Water s request for funding for a new well as a
critical component of any complete and long-range plan that may be proposed in the
forthcoming, detailed engineering report." Order No. 29903 , p. 5.
On October 27 2005 , the Commission entered Order No. 29903
approving the implementation of a surcharge to recover no more than $160 389., but
reserved judgment on the recovery of $40 027 of the funds requested by Eagle Water
for replacement of its 8-inch line , pending the provision of additional information by the
Company. Upon Staff recommendation , the Commission denied Eagle Water s request
EAGLE WATER COMPANY, INC,
APPLICATION FOR SURCHARGE EXTENSION - 2
for implementation of a surcharge to cover the cost of a new system well , pending
completion of the Company s engineering report.
On February 6, 2006 , the Commission entered Order No. 29969 , limiting
the authorized surcharge total to $112,414.
On February 17, 2006 , Eagle Water entered into a Consent Order with
DEQ, as a resolution of the August 2005 Notice of Violation. Among other things, the
Consent Order required Eagle Water to complete an engineering report detailing:
Recommended actions to meet the requirements of IDAPA
58.01.08;
A funding plan to implement the recommendations; and
A project implementation schedule for the recommendations.
Eagle Water submitted its first draft Preliminary Engineering Report to
DEQ in May of 2006. Subsequent drafts were submitted in January, March , May and
June of 2007, despite technical glitches with the Haestad computer modeling software
that was used for the report; departure of the engineer who worked on the initial draft;
the lack of a similarly qualified engineer on staff at MTC , Inc.; an aortic aneurism
suffered by MTC's principal , Jim Rees , P.E.; and contradictory peak flow standards
required by DEQ which necessitated no less than 36 revised computer modeling runs.
On October 30, 2006 , December 28, 2006 , March 7 , 2007, and June 1
2007 the Commission entered orders extending the deadline for Eagle Water
submission of its Final Engineering Report due to the DEQ review delays, and
authorized the Company to continue to collect the previously authorized surcharge
EAGLE WATER COMPANY, INC,
APPLICATION FOR SURCHARGE EXTENSION - 3
subject to refund." The Commission further instructed Eagle Water not to convert "the
surcharge funds to its own use until such time as the Commission may approve the
recovery of engineering and processing costs in excess of $112,414." Order No.
30331 , p. 3.
10.As of July 11 2007 , $165 749.90 has been collected by Eagle Water in
surcharge fees. Of that amount, the following has been expended:
. MTC , Inc. (Engineering Report) $44 741.
. Ward Engineering Group (Engineering Report) - $35 000.
Geneva Trent (Accounting fees for Engineering Report) - $ 337.TOTAL $80 078.
11.The balance of the Surcharge Account as of July 12 , 2007 was
$91 303.76. See Exhibit , attached.
12.Legal fees for the original Surcharge Application totaled $10 945.22. See
Exhibit , attached. Although the entire amount has been paid by Eagle Water, none of
the amount paid was paid from the Surcharge Account.
13.On June 26 , 2007 , DEQ notified Eagle Water that its June 18 , 2007
Preliminary Engineering Report could be re-submitted as a Final Engineering Report for
formal approval. See Exhibit , attached. The Engineering Report was then re-
submitted to DEQ as "Final"See Exhibit , attached. The report was accepted by
DEQ on July 6 , 2007. See Exhibit , attached.
14.The engineering fees for the Engineering Report totaled $218 394.30.
See Exhibit 6. Of this amount, $79 741.29 has been paid to date from the Surcharge
Account.
1 Eagle Water has provided the Commission with one complete copy of the full Engineering Report, and seven
copies of the Executive Summary,
EAGLE WATER COMPANY, INC,
APPLICATION FOR SURCHARGE EXTENSION - 4
15.Legal fees for the Engineering Report have totaled $16 231.84 as of the
date of this Application. See Exhibit , attached. Of that amount, $11 334.32 has been
paid , leaving a balance of $4 897.42. None of the fees paid to date were paid from the
Surcharge Account.
16.Accounting fees for the Engineering Report have totaled $600.00 as of the
date of this Application. Of that amount, $337.50 has been paid from the Surcharge
Account. See Exhibit , attached.
17.Because Eagle Water is a small company, the cost of preparing and
processing this Surcharge Extension Application will represent a significant
extraordinary expense. Geneva Trent, CPA, estimates that her accounting services for
this Surcharge Extension Application will total $600.00. See Exhibit , attached.
Richardson & O'Leary, PLLC estimates that its legal fees for this Surcharge Extension
Application will total $12 000.00. See Exhibit , attached.
18.In addition to the foregoing, the Final Engineering Report contains the
following system improvement recommendations:
COMPLETED - 2006
Construction of Well # 7 Interconnection
Infrastructure
$638 600.
$153 300.
Addition of Well # 7
Repair of Well # 4 $56 100.
TOTAL $848,000.
EAGLE WATER COMPANY, INC,
APPLICATION FOR SURCHARGE EXTENSION - 5
MANDATORY ACTIONS - 2007
Interconnect Eagle Water system with the
City of Eagle s municipal water system for
emergency flow redundancy $71 000.002
Install Pressure Reducing-Sustaining
Valve on Floating Feather Road mainline $43, 120.
TOTAL $114 120.
19.The total of the above figures is as follows:
Balance owed on engineering fees for $161 394.
Engineering Report
Legal Fees for Engineering Report $16 231.
Outstanding Accounting Fees for $262.
Engineering Report
Estimated Accounting Fees for Surcharge $600.
Extension Application
Legal Fees for Previous Surcharge $10 945.
Application
Estimated Legal Fees for Surcharge $12 000.
Extension Application
Completed System Improvements $848 000.
Mandatory System Improvements $114 120.
2 The Cost Estimate in the Final Engineering Report for this Action Item was based on an interconnection
with United Water-Idaho, The actual interconnection will be with the City of Eagle s system, which this
lower cost estimate reflects, See Exhibit 11 attached,
EAGLE WATER COMPANY, INC.
APPLICATION FOR SURCHARGE EXTENSION - 6
I TOTAL
1630553,
20.The above figure , less the balance in the Surcharge Account as of July 12
2007 , leaves a balance of $1 072 250.10 in additional funds needed to pay the above-
listed expenditures.
21.As the Commission is aware , Eagle Water has entered into an Asset
Purchase Agreement with the City of Eagle for the purchase of the Company s water
system. That agreement was approved by the City of Eagle City Council on July 10
2007. Following a Due Diligence period , that transaction is expected to close in
November of 2007.
22.Assuming that transaction closes as anticipated by the parties , any system
improvements accomplished by Eagle Water by the Closing Date, will be recouped by
Eagle Water as part of the Purchase Price. Nevertheless, Eagle Water is reserving its
right to request recovery of the Completed Action and Mandatory Action system
improvements pending the outcome of its transaction with the City of Eagle.
23.In the interim , Eagle Water requests that the Commission issue an order
authorizing it to recover its outstanding debt for professional services associated with
the previous Surcharge Application and the Engineering Report ($188 833.86) plus the
estimated professional fees associated with this Surcharge Extension Application
($12 600.00) through a surcharge on its Customers' usage in excess of 600 cubic feet
per month. The total of said fees is $201,433.86.
EAGLE WATER COMPANY, INC.
APPLICATION FOR SURCHARGE EXTENSION - 7
24.Based on the present Surcharge Account balance of $91 303., Eagle
Water anticipates it will actually only need to borrow an additional $110 130.10 to cover
the outstanding professional fees , provided the Commission authorizes it to spend the
current Surcharge Account balance on said fees. Under the terms of a financing
proposal from Idaho Banking Company, the cost of the loan would be approximately
10.25 percent spread over 2 years. See Exhibit 123, attached.
25.The Company further requests the Commission to issue an order
approving the extension of the current scheduled surcharge as a fair, just and
reasonable method for recovery of its costs associated with the professional fees
referenced above. Certified Public Accountant Geneva Trent has calculated the
expected revenue from the continuation of said surcharge and the expected loan pay-off
schedule. See Exhibit , attached.
26.The Company will maintain a separate balancing account on its books
with all transactions related to this Application flowing through the account on a monthly
basis as transactions occur. None of the expenditures proposed in this Surcharge
Extension Application will be recorded to the Company s plant accounts and the
Company will not seek to add these costs to its rate base for rate-making purposes.
Quarterly status reports will be provided to the Commission , in writing, to apprise the
Commission of moneys expended.
27.Communications with reference to this request should be sent to the
following:
3 Although Idaho Banking Company s loan proposal is based on the full amount of the outstanding professional
fees, as previously stated, Eagle Water anticipates that it will only need to borrow $110 130.10.
EAGLE WATER COMPANY, INC.
APPLICATION FOR SURCHARGE EXTENSION - 8
Molly O'Leary
Richardson & O'Leary, P.LLC.
O. Box 7218
Boise , ID 83707
Robert V. DeShazo., Jr., President
Eagle Water Company, Inc.
O. Box 455
Eagle , ID 83616
28.Because the issues presented by this request are limited in scope , Eagle
Water requests that this request be processed without the need fGr a hearing, under
Commission Rule of Procedure 202 , Modified Procedure.
RESPECTFULLY SUBMITTED this 6th day of August, 2007.
EAGLE WATER COMPANY, INC.
APPLICATION FOR SURCHARGE EXTENSION - 9
EXHIBIT
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
~;-=t:;":':.5;j,;j;:l7'.:t.;:;.
J'fJDAHO
BANKINGe"....,
t~...r.& 6...ki.a.
July 12, 2007
Eagle Water Company, Inc.
Attn: Robert De Shazo, Jr.
172 W State Street
Eagle, 10 83616
Eagle
402 S.Eagle Rd.
Eagle, Idaho 83616
208-939-7040
RE:PUG Surcharge Account Summary
To Whom It May Concern:
Fairview
6010 Fairview Ave.
Boise, Idaho 83704
208-472-4700
Following is a summary of the Eagle Water Company, Inc. PUG Surcharge account
and Joan held at Idaho Banking Company.
Thank you,
Meridian
1875 S. Eagle Rd.
Meridian, Idaho 83642
208-955-1)686
Becky Fowers
A VP & Branch Manager
208-939-0554
ParkCenler
449 E. Parllcenter Blvd.
Boise, Idaho 83706
208-395-1505
GC: Molly O'Leary via emaH
All numbers as of 7/11/07:
T ota! deposits:
Total withdrawals:
Current Balance:
$174,437.
83.133.47
$ 91 303.
Mortgage
2965 E. Tarpon Dr.. Ste. 150
Meridian, Idaho 83642
208-378-1013
Withdrawal Detail:
Loan Fees:
Interest Payments:
Principle Payments:
Cashiers Check:
Total Account Withdrawals:
1 ,411.
1 ,643.
078.
35.000.(Ward Engineering Group)
$ 83,133.47
Gonstruclion
2965 E. Tarpon Dr.. Ste. 150
Meridian. Idaho 83642
208-947-5588
Loan Summary:
Loan Advance 2/8/06: $ 44,741.29 (cash. check toMTG, Inc.
Loan Advance 7/7/06: 337.(cash. check to Geneva Trent, CPA)
Total Principle Advanced: $ 45 078.
Total Payments outlined above, loan paid in full and closed.
EXHIBIT 2
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
RICHARDSON & O'LEARY, PLLC
515 N. 27th Street
O. Box 7218
Boise, ID 83707
To:
Eagle Water Company
Robert. V. DeShazo, Jr., Pres.
PO Box 455
172-0 W.State Street
Eagle, ID 83616
Date
07/31/2005
081l5/2005
081l6/2005
09/15/2005
09/21/2005
lOll 0/2005
1I/08/2005
11/08/2005
1I/21/2005
12!l3/2005
011lI/2006
01/12/2006
02/07/2006
02/09/2006
03!l3/2006
031l5/2006
04/24/2006
06/20/2006
06/20/2006
06/20/2006
06/26/2006
071l2/2006
071l7/2006
081l 0/2006
08/3 I/2006
08/3I/2006
lOll 0/2006
I Oil 2/2006
10/23/2006
11/10/2006
I 21l 2/2006
011l5/2007
CURRENT
Transaction
Balance forward
15RO - Surcharge-
INV #2138. Due 081l5/2005.
PMT #1012. from trust fund
INV #2207. Due 091l5/2005.
PMT #6812.
!NV #2228. Due I Oil 0/2005.
INV #2281. Due 1I/08/2005.
INV #FC 370. Due 1I/08/2005. Finance Charge
PMT #6989.
INV#2313. Due 121l3/2005.
INV #FC 398. Due 011lI/2006. Finance Charge
INV #2366. Due 011l2/2006.
INV #FC 422. Due 02/07/2006. Finance Charge
INV #2427. Due 02/09/2006.
INV #2489. Due 03/13/2006.
INV #FC 436. Due 031l5/2006. Finance Charge
INV #2537. Due 04/24/2006.
INV #2664. Due 06/20/2006.
INV #FC 476. Due 06/20/2006. Finance Charge
INV #2689. Due 06/20/2006.
PMT #7553.
INV #FC 498. Due 071l2/2006. Finance Charge
INV #2716. Due 071l7/2006.
INV #2751. Due 081l0/2006.
PMT #7816.
PMT #3300.
INV #2860. Due lOll 0/2006.
INV #FC 607. Due 1O1l2/2006. Finance Charge
PMT
INV #2924. Due 1I/10/2006.
INV #2991. Due 121l2/2006,
INV #3057. Due 011l5/2007.
30 DAYS PAST
DUE
31-60 DAYS PAST
DUE
46.49 470.
61-90 DAYS PAST
DUE
667.
Page 1
Statement
Date
7/15/2007
Amount Due
779.
Amount
256.
256.
3.493.
337.
762.
024.
29.
614.
853.
21.81
297.
24.
302.41
105.
28.
40.
84.
29.
277.08
209.
11.07
75.
71.50
82 l.l 9
84.
468.
122.
29.
1.120.
OVER 90 DAYS
PAST DUE
594.
Amount Enc.
Balance
256.
3.493.
156.
918.
942.
971.45
1.356.
209.
231.
529.
553.
856.
961.36
990.
031.
115.
144.
3.421.97
1.212.
1.223.
1.299.
370.
549.
464.
464.
468.
122.36
151.53
271.54
Amount Due
779.
RICHARDSON & O'LEARY, PLLC
515 N. 27th Street
O. Box 7218
Boise, ID 83707
Statement
Date
7/15/2007
To:
Eagle Water Company
Robert. V. DeShazo, Jr., Pres.
PO Box 455
172-D W.State Street
Eagle, ID 83616
Amount Due Amount Enc.
779.
Date Transaction Amount Balance
02/15/2007 INV #3121. Due 02/15/2007.373.644.
02/21/2007 PMT #8431,- L271.54 373.33
03/14/2007 !NV #3169. Due 03/14/2007.221.66 594.
04/16/2007 INV #3217. Due 04/16/2007.581.67 176.
05/07/2007 !NV #FC 777. Due 05/07/2007, Finance Charge 41.77 218.
05/1 0/2007 INV #3273. Due 05/10/2007.43.262,
06/06/2007 INV #FC 801. Due 06/06/2007. Finance Charge 42.304.
06/12/2007 INV #3334. Due 06/12/2007.428.733.
07/11/2007 INV #FC 829. Due 07/11/2007. Finance Charge 46.49 779.
CURRENT 30 DAYS PAST 31-60 DAYS PAST 61-90 DAYS PAST OVER 90 DAYS Amount DueDUEDUEDUEPAST DUE
46.49 470.667.594.$4,779.
Page 2
EXHIBIT 3
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
07/12/2007 20: 40 18017732" qgJu1 02 07 O~. asp ~ee5 AE2
JOSG?
PAGE 01/01
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SiATE OF IDAJ1O
DEPARTMENT OF
ENVIRONMENTAL QUALITY
14'0 Norln I-lil'tol'l. Bol$El, tdal1O 83706. [phone] L. "Bl,ltch" OtlSt. Governor
Toni I-Iardesw. DllP.ctor
June 26, 2007 TSP&S-14212007
Mr. Robert V. DeShazo, Jr.
Eagle Watt:r Company, Inc.
172 W. State S1reet
Eagle, Idaho 83616
Mr. James Rees, P.
MTC, Inc.
707 N. 271h StTcet
Boise, Idaho 83702
RE:Eagle Water Company (City of Eag/e Ada County)
Acceptance of Preliminary Engineering Report
Dear Mr, DoSbu.o and Mr. R~:
The Idaho Department of Environmental Quality (DEQ) bas reviewed the Preliminary Engmeering Report for tb.eEagle Water Company (EWC) water system, received on. June 18 2007, and has df:temrined that it satisfies therequiromcnts for 'such a document as set forth in the DEQIEWC Consent Order signed by both parties on Febroaty
17, 2006. In accorda:n(:~ with that Consent Order, DEQ hereby di'l.'ects EWC to change the title of the document toFinal Engineering Report". and submit it to DEQ for formal approval.
Please call me with any questions at 373-05 14, or contact me via e-mail at:p.e1;e;r.bairaUd~.idaho.gov.
Sincerely,
, /'
:::V2..",~..J
Peter S. Bair, P .E.
Teclmical IT Engineer
PSJ3:sjt
Tiffimy Floyd, Drinking Water Manager, DEQ Boise Regional Office
Mark Mason. P.E. Engineering Manager, DEQ Boise Regional Office
Stephanie Qrright, Attorney General's Office , DEQ State Office
Mont.)' Max-chus , P ,, DEQ Boise Regional Office
Mol1y O'Leary, Richardson & O'Leary PLLC, P.O. Box 7218, Boise, ~daho 83707BRO Source File
TSP&S Reading File
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EXHIBIT 4
***
Please note that the attached
is the Summary of the
Engineering Report
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
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tJ:l oratori'qirl. on tb e ,C0nW~y1S 'certij'feQ-se :rviceare~~ti1. 'potent l~t ernedial
actiQns are identified.
The City of J;:i:l.gl~iAA.s . beell a$ignificl:lrir grQwt11Pattel'lli ,~l1SusaIld 'PJ~ti()n
stini~1es.( as .. btained ,ITOI1l the I~hp Statel)ep~l1qeJJJ)t 6f~Q~mercean.dLabor ,and
(jiherso Urces)l:J.fid PQPUhtti()llproj~~sITQ1Ilthe (lemq~phj~.gro;U.p~()lMPAS So f
Ij;).A.H0 W8$ .in.tegratedto develop the~luiit~l()w~b1~l1vvasl1$edw.eSt imatjng
P9P~ti()n a;p.dgroWth rates:
City of Eagle Population
History and Projections
35000
30000
s:: 25000
20000
&. 15000
D.. 10000
5000
1990 1995 2000 2005 2010 2015 2020 2025 2030
Years
Portions of this growth were by annexation and were outside the Company
service area. However, growth has also occurred within the EWC service area through
population growth, residential infilling, and an expanding commercial base. This is
shown in the table below by the increase in the number of residential and commercial
accounts serviced for the current water accounts and the anticipated water accounts for
2010 and 2026.
Water Accounts Summary
Year Residential Commercial Agricultural Total Water
Accounts Accounts Accounts System
Accounts
2006 wi 924 358 112 394
Approved
Developments
2010 333 408 112 853
2026 603 530 112 245
The above table above indicates, the assumption that growth will only occur in
Residential and Commercial accounts. Agricultural accounts would conservatively
- 2-
remain constant even though Agricultural accounts will likely decrease as development
occurs. In addition , the City of Eagle has policy that all new development must be
equipped with a pressurized secondary irrigation system utilizing existing irrigation water
rights.
The maximum day demand data was obtained from EWC personnel. The data
indicates a steadily increasing which is attributed to the increase in water accounts
served. To determine the maximum day demand per account and if it's changing with
time, the maximum day demand was divided by the number accounts for the years 2003
through 2006. The results are listed in the table below.
The maximum day demand results are listed in the table below.
Maximum Day Demand
Year Maximum Day Account Total Maximum Day
Demand (gpd)Demand per Account
(gpm)
2003 647 000 745
2004 763,000 888
2005 180 000 196
2006 261 000 261
The table shows a continual decrease with time for maximum day demand per
account. In projecting future demands on the water system , it is conservatively assumed
that each water account would have a maximum day demand of 1.12 gpm instead of
following the downward trend.
The peak hour flow demand was determined from available flow data, industry
references, and peaking factors used by local water systems. A list of some of the
industry references and peaking factors from local water systems are shown below.
- 3 -
System Demand
Reference Peaking Factor for
Peak Hour Flow Demand
Dewberry and Davis land
Development Handbook
City of Eagle
Star Sewer and Water District'1.45
City of Meridian Water Master
Plan Update
After careful consideration and discussion with IDEO (See Appendix D), it was
agreed that a peaking factor of 1.50 be used from maximum day demand to peak hour
flow. Thus, each water account would have a peak hour flow demand of 1.68 gpm
(1.12 gpm 5). As part of the agreement of using a 1.5 peaking factor for peak hour
flow, EWC will monitor the system for peak hour flow and maximum day demand this
summer (2007) in order to validate the decision.
Each water account was considered a dwelling unit (D.). The plan of study
was to utilize computer based modeling software , calibrate the model to available
existing system data, and then test various scenarios in the model to see their impact on
the overall system s modeled operation.
A computer model was setup to simulate the following: maximum day demand
with fire flow and the peak hour flow demand under the existing 2006 water system wi
approved developments, 2006 with required improvements , the projected 2010 water
system , and projected 2026 water system. Each of these scenarios was run with Well
#4 off and then Well #6 off per the General Design Conditions (Section 501.17.a).
Specific standards (utilized in this modeling) establishing pressure, flow and
redundancy requirements were obtained from Idaho Rules for Public Drinking Water
Systems (IRPDWS). These standards require a minimum zone pressure of 20 psi
during the maximum day demand plus fire flow scenario. The system also needs
meet the system wide operational pressure standards of 100 psi maximum and a
minimum of 40 psi during normal operations and peak hour flow demand.
- 4-
Calibration of the model was verified comparing modeling results with actual fire
hydrant flow test data. Two separate scenarios were used to verify that the model
reflects actual field conditions. The scenarios were before and after Well #7 was put into
service and a total of 8 fire hydrant flow tests were compared. The model agrees with
reasonable variance to measured field conditions. Varying pressure and flow availability
within the system are likely when using data from different hours during the day, years
and seasons.
The modeling results for the different scenarios were analyzed to identify
improvements to the system and make recommendations. One of these evaluated
improvements was the use of a water storage facility. The concept of utilizing a tank for
a supplemental source when one of the wells is out of service was studied from several
angles. The recommended storage capacity of one million gallons was used for the
study. To be effective the tank must supply water to the highest service connection with
the required working pressure of 40 psi. This would require the minimum operating
water level of the tank to be around elevation 2840 feet. The tank must be located
outside the existing certificated area for proper elevation or EWC would need to
construct an elevated tank. There are few, if any, locations available for the construction
of an elevated tank. Two locations outside the service area were evaluated for a tank
location. To fill either of the tanks, a tank booster pump station would be required. Due
to siting, easements, and economics concerns along with the need for an additional
water supply in the near future; it was determined that a water storage facility would be
nice but not a necessity.
A computer model was setup to simulate the following: maximum day demand
with fire flow and the peak hour flow demand under the existing 2006 Water System wi
Approved Developments, 2006 with Required Improvements, the projected 2010 Water
System , and projected 2026 Water System. Each of these scenarios was run with Well
#4 off and then Well #6 off per the General Design Conditions (Section 501.17.a).
After evaluating and modeling numerous options, a list of recommendations were
developed. The recommendations were divided into the following categories:
Mandatory, Future, Suggested , and Completed Actions. Mandatory Actions are those
- 5 -
immediately required to bring the system into compliance with regulations. Future
Actions are recommendations required to support future development. Suggested
Actions are items that would optimize the water system but are not required. Completed
Actions are recent improvements that have been beneficial to the current water system.
For ease of implementation and organization , the action categories have been divided
into two subcategories: (1) planning items and (2) construction projects.
MANADATORY ACTIONS
PLANNING ITEMS
A list of MANDATORY planning items to bring the water system into compliance
is as follows:
None
CONSTRUCTION PROJECTS
The following list of MANDATORY construction projects along with their
construction priority has been developed to increase the service pressure, available fire
flow, and water supply within the water system. However, the 2006 Approved
Development analysis identified improvement project-related deficiencies within the
existing water system. As the model results indicated, the maximum day demand plus
fire flow, with Well #4 off, identified 5 residential junctions in the upper pressure zone
with fire flow availability less than 1000 gpm and the minimum fire flow for commercial
junctions of 1668 gpm. The peak hour demand indicated that the pressure dropped
below 40 psi when Well #4 off and then again when Well #6 is off. The results for the
2006 Approved Development indicate the need for the following list of Mandatory
construction projects to bring the water system into compliance with IRPDWS
requirements.
Prioritv #Date Descri tion Cost Estimate
(2007-2008) Water Interconnect........................................................ $151 ,250
Interconnect water systems with either United Water or City of
Eagle for emergency flow redundancy. The United Water
- 6-
(2007)
interconnect should be made on Floating Feather Road just
downstream of the proposed PRSV to feed the lower pressure
zone. The United Water Interconnect should be designed to
produce 1845 gpm at 61.5 PSI. The City of Eagle interconnect
should be made upstream of the proposed PRSV to feed the
upper pressure zone. This interconnect should be designed to
produce 1845 gpm at 74 PSI. Cost estimate is for United Water
Interconnect as modeled in the report and would require a traffic
rated vault miscellaneous valves flow meter and
appurtenances.
Cost Itemization
Construction $ 125 000
$ 12 500
$ 137 500
$ 13 750
151 ,250
Engineering (12%)
Subtotal
Contingency (10%)
Total
Timeline Overview
Design
Permitted
July 2007
September 2007
December 2007Construction
Install PRSV on Floating Feather Road .......................... $43, 120
Replace existing throttling valve with a pressure
reducing/sustaining valve. In the water model, the upstream
pressure setting was set at 72.5 psi and downstream pressure
remained near 55 psi.
- 7 -
Cost Itemization
Construction
Engineering (12%)
Subtotal
Contingency (10%)
Total
$ 35 000
$ 4 200
$ 39 200
$ 3 920
$ 43 120
Timeline Overview
Design
Permitted
Construction
July 2007
August 2007
December 2007, Will be installed
during low flow conditions.
FUTURE ACTIONS
PLANNING ITEMS
A list of FUTURE planning recommendations is as follows:
None
CONSTRUCTION PROJECTS
The list below is for Future construction projects which have been selected to
able the water system to service the anticipated growth and also eliminate reliance on
the proposed water interconnect.
Priority #Date Descri tion Cost Estimate
(2008- ???*) New Water Source........................................................ $898,040
There are two viable options to increase the available water
supply within the water system. The first option would be to
renovate existing water sources for additional supply and equip
these sources with emergency backup power. The second
option would be to drill and construct new water source which
would be equipped with emergency backup power. As
- 8-
(2008-2009)
previously stated , the water requirement of 2365 gpm is required
for the 2010 and 2026 Scenarios. This item also includes
associated piping ($35/ft at 1350 ft) and land ($150 000).
Cost Itemization
Construction $ 785 000
31,400
816,400
$ 81 640
$ 898 040
Engineering (4%)
Subtotal
Contingency (10%)
Total
Timeline Overview
Siting
Design
Permitted
October 2007
February 2008
October 2008
December 2008Construction
* The questions marks for the completion date indicate the
uncertainty associated with siting and permitting a new water
source.
Well #2 Booster Pump Station Modification """""""""'" $38 115
Increase the pumping head in Booster Pump Station #2 by
replacing existing pumps with pumps that produce a combined
flow 640 gpm at 148' TDH. This will enable the use of the
000 gallon Well #2 water storage tank to attenuate the peak
demand on the water sources. The model was setup with two
pumps in operation for convenience only. Any major pump
modifications made will require the pumping station to
equipped with redundant pumping capacity. It should be
designed with either a duplex pumping station with equal sized
pumps or a triplex pumping station with two identical smaller
pumps and a jockey pump meeting the required flow and head
parameters.
- 9-
(As Developed)
Cost Itemization
Construction $ 31 500
$ 3 150
$ 34 650
3,465
$ 38 115
Engineering (10%)
Subtotal
Contingency (10%)
Total
Timeline Overview
Design
Approval
Construction
March 2008
July 2008
November 2008
West Enchantment Street, West Cobblestone Way, and West
Yellowstone Street Piping Interconnect $30/ft ~ 3 740 ft plus
Bore & Jack $50 000, ................................................... $253 616
Increase the capacity of fire flow near Well #6 when it is off line.
It should be a requirement of the developer of residential parcel
#2 to make the looped connection including the bore and jack
under the canal. The cost should be split between the developer
and EWC.
Cost Itemization
Construction $ 209 600
$ 20,960
$ 230 560
$ 23 056
$ 253 616
Engineering (10%)
Subtotal
Contingency (10%)
Total
Timeline Overview - Will be development driven.
- 10-
SUGGESTED ACTIONS
PLANNING ITEMS
A list of SUGGESTED planning recommendations is as follows:
Provide notification to users in the upper pressure zone that the Main
Booster Pump Station is not equipped with backup emergency power or a
redundant pump. This could result in temporary loss of pressure during
power outages or pump failure.
EWC will keep the City of Eagle s plumbing inspectors informed of areas
within the service area that have service pressures greater than 80 psi. A
figure identifying junctions which have service pressure greater than 80
psi under any of the scenarios is included in Appendix K.
All new construction within the 80 psi or greater pressure areas will have a
recommendation to be equipped with a individual pressure reducing valve
along with a thermal expansion tank.
All new subdivisions, if possible, should be a looped system.
Minimum 8" waterlines in residential areas and 12" waterlines in
commercial areas.
No booster pumps should be connected to the water system unless they
are owned and operated by EWC and any currently unauthorized pumps
should be removed, per Recommended Standards for Water Works, 2003
(Ten States Standards).
As development occurs around existing subdivisions, it should
required, to connect to the existing subdivisions creating piping loops
within the water system. Multiple existing subdivisions are being serviced
from one feed line, thus limiting fire flow availability and a redundant water
supply.
All proposed developments should require a fee for a water model
analysis prior to approval. It is suggested that developers be required to
submit electronic copies of plans to be integrated into the water model for
preliminary plat review.
- 11 -
CONSTRUCTION PROJECTS
A list of Suggested construction projects have been developed for operational
purposes for the water system.
Prioritv #Date Descri tion Cost Estimate
(N/A)Pump Redundancy for the Main Booster Pump Station ..$51 744
Provide pumping redundancy through either a water system
interconnect to the upper pressure zone (the City of Eagle Water
Interconnect) or an additional pump in the Main Booster Pump
Station.
Cost Itemization
Construction
Engineering (12%)
Subtotal
Contingency (10%)
Total
$ 42 000
040
$ 47 040
704
$ 51 744
Timeline Overview
Design
Permitted
2 Months
1 Month
Construction
period.
1 Month, during a low demand
(N/A)Install Recording Flow Monitors ......................................$47 080
Install recording flow meters on Well #4, Well #7, Well #6 , Well
, Main Booster Pump Station, and Booster Pump Station #2.
Cost Itemization
Construction
Engineering (Specs Only)
Subtotal
Contingency (10%)
$ 42,000
800
$ 42 800
280
- 12-
Total $ 47 080
Timeline Overview
Design
Permitting
Construction
2 Months
2 Months
3 Months
COMPLETED ACTIONS
PLANNING ITEMS
A list of COMPLETED planning recommendations is as follows:
Planning and implementation of Well #7.
CONSTRUCTION PROJECTS
A list of Completed construction projects performed by EWC in an effort to
increase source availability within the water system is provided below.
Prioritv #Date Descri tion Cost Estimate
Completed (2006)New Water Source - Well #7 (Constructed and Online) $638 600
Construct new water source and associated piping with
emergency backup power supply. (Per EWC's understanding of
the consent order, EWC must indicate what specific actions are
required to bring the water system into compliance. Additional
source was determined the #1 priority and Well #7 and
interconnect listed below was construction. Therefore, it is
included as our #1 priority for improvement).
Cost Itemization
Construction
Total
$ 620 000
$ 18 600
$ 638,600
Engineering
- 13-
Timeline Overview - Completed
Completed (2006)Well #7 Interconnect (Constructed and Online) .............$153 300
Construct new transmission piping from Well #7 to existing
piping along Eagle Bypass.
Cost Itemization
Construction
Total
$ 146 000
$ 7 300
$ 153 300
Engineering
Timeline Overview - Completed
Completed (2007)Repair Well #4................................................................. $56, 100
Well #4 is currently being rebuilt to provide additional water
source. The reconditioned pump will be online prior to summer
demand of 2007.
Cost Itemization
Construction
Subtotal
Contingency (10%)
Total
$ 51 000
$ 51 000
$ 5,100
$ 56,100
Costs are estimates only and because final billing has yet
to be received and finalized.
Timeline Overview - Completed
Financial Plan
The following calculations have been prepared by Geneva Trent, CPA, for Eagle
Water Company, Inc. Eagle Water Company intends to file an Application with the Idaho
Public Utilities Commission (IPUC) to finance the recommended system improvements,
as needed. If the system improvements and related surcharges are approved by the
- 14-
IPUG , Eagle Water would seek commercial financing for the projects and the borrowed
funds would then be repaid through a surcharge on customers' usage.
The attached surcharge calculations indicate the percentage that Eagle Water
customers might be required to pay over-and-above current water rates, for the various
recommended improvements, if approved by the IPUG.
Eagle Water has been ordered by the IPUG to submit an Application for financing
necessary systems improvements by July 15, 2007. Eagle Water is prepared to do so
immediately upon DEa's acceptance of its Preliminary Engineering Report.
- 15 -
Eagle Water Company
Calculation of Surcharge Amounts for Proposed Improvements
at June 10, 2007
MANDATORY ACTIONS - Construction Projects:
Priority #1 - Water Interconnect
Cost of Priority 1
Estimated bank loan fees
$151 250.
500.
Amount Financed
Term (estimated)
Interest Rate
Monthly Payments Required
$ 152 750.
5 years
50%
$ 3 208.(approximate)
Annual Cash Required $ 38,496.
Multiplied by Gross-up (from below)127.88%
Total Annual Surcharge $ 49 228.
Divided by Total Annual Revenue $ 729,590.( 2006 revenues)
Surcharge 747%
2006 Customers
Residential
Commercial
Totals
Revenues
$ 542 947.
186,642.
$ 729,590.
Percent of Total
74.42%
25.58%
100.00%
Calculation of Gross-Up Factor for Taxes:
100.00%taxable
8.00%State Tax Rate
92.00%Federal Taxable
13.80%Effective Federal Tax Rate
21 .80%Composite Tax Rate
78.20%Net After Tax Income
127.88%Gross-up Factor
(Federal Rate 15%)
2) + 4)
- 16 -
MANDATORY ACTIONS - Construction Projects (continued)
Priority #2 - Install PRSV on Floating Feather Road
Cost of Priority 120.
Estimated bank loan fees 400.
Amount Financed 43,520.
Term (estimated)1 year
Interest Rate 50%
Monthly Payments Required 816.(approximate)
Annual Cash Required 792.
Multiplied by Gross-up 127.88%
Total Annual Surcharge 58,558.
Divided by Total Annual Revenue $ 729 590.( 2006 revenues)
Surcharge 026%
FUTURE ACTIONS - Construction Projects:
Priority #1 - New Water Source
Cost of Priority $ 898 040.
Estimated bank loan fees 000.
Amount Financed $ 907,040.
Term (estimated)10 years
Interest Rate 50%
Monthly Payments Required 737.(approximate)
Annual Cash Required $ 140 844.
Multiplied by Gross-up 127.88%
Total Annual Surcharge $180 111.
Divided by Total Annual Revenue $ 729 590.(2006 revenues)
Surcharge 24.687%
- 17-
FUTURE ACTIONS - Construction Projects (continued)
Priority #2 - Well #2 Booster Pump Station Modification
Cost of Priority 115.
Estimated bank loan fees 400.
Amount Financed 38,515.
Term (estimated)1 year
Interest Rate 50%
Monthly Payments Required 377.(approximate)
Annual Cash Required 40,524.
Multiplied by Gross-up 127.88%
Total Annual Surcharge 822.
Divided by Total Annual Revenue $ 729 590.(2006 revenues)
Surcharge 103%
SUGGESTED ACTIONS - Construction Projects:
Priority #1 - Pump Redundancy for the Main Booster Pump Station
Cost of Priority 744.
Estimated bank loan fees 500.
Amount Financed 244.
Term (estimated)2 years
Interest Rate 50%
Monthly Payments Required 2,400.(approximate)
Annual Cash Required 800.
Multiplied by Gross-up 127.88%
Total Annual Surcharge 36,829.44
Divided by Total Annual Revenue $ 729,590.(2006 revenues)
Surcharge 048%
- 18-
SUGGESTED ACTIONS - Construction Projects (continued)
Priority #2 - Install Recording Flow Monitors
Cost of Priority 080.
Estimated bank loan fees 450.
Amount Financed 530.
Term (estimated)1 year
Interest Rate 50%
Monthly Payments Required 167.(approximate)
Annual Cash Required 50,011.
Multiplied by Gross-up 127.88%
Total Annual Surcharge 63,954.
Divided by Total Annual Revenue $ 729,590.(2006 revenues)
Surcharge 766%
We sincerely appreciate the opportunity to be of service to you on this
project and we look forward to continuing to serve you.
Yours truly,
- 19-
EXHIBIT 5
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
r-_
:::::--"'-""'" ", ",.-
.. i re' I \,iD I.. c.I,
i('" I n I: IiL." I
__._--~._,,---.------- ----'
1410 North Hilton. Boise. Idaho 83706. [phone] L. "Butch" Otter, Governor
Toni Hardesty, Director
TSP&S-lSO/2007
July 6, 2007
Mr. Robert V. DeShazo, Jr.
Eagle Water Company, Inc.
172 W. State Street
Eagle, Idaho 83616
Subject: Eagle Water Company (City of Eagle, Ada County)
Approval of Final Engineering Report
Dear Mr. DeShazo:
The Idaho Department of Environmental Quality (DEQ) hereby approves the Final Engineering Report dated June
2007 for the Eagle Water Company (EWC) water system in accordance with the procedures set forth in the
DEQ/EWC Consent Order signed by both parties on February 17, 2006.
A. Action Items:
As part of this approval, the following plans, schedules or related activities (Action Items) set forth below and
in the Final Engineering Report shall be incorporated by reference into the Consent Order and be enforceable as
provided by applicable law. Restrictions and conditions pertaining to these Action Items are presented in
Section B.
1. EWC shall monitor system water usage during the summer of 2007 to detennine the peak hour flow and
maximum day demand during that period. EWC shall compare that information with the values used to
prepare the Final Engineering Report and present the findings to DEQ in a brief report by no later than
October 31 , 2007.
2. EWC shall submit an application for financing the proposed system modifications to the Idaho PublicUtility Commission (IPUC) by July 15,2007.
3. EWC shall proceed as expeditiously as possible to make the following system modifications listed as
mandatory" in the Final Engineering Report for correcting deficiencies in the existing system:
a. Interconnect with an adjacent public water system to ensure a sufficient supply of supplementalwater so that the EWC water system satisfies all applicable Idaho Rules for Public Drinking Water
System pressure and flow requirements with the largest (most critical) EWC water source out of
service. EWC shall provide the Preliminary Engineering Report for this interconnection to DEQ
for approval by no later than July 31, 2007. EWC shall have the interconnection installed and
operational by no later than December 31, 2007. EWC shall operate and maintain this connection
until such time as an alternative source or sources of water are provided such that EWC cancontinue to satisfy Idaho Rules for Public Drinking Water System pressure and flow requirements
with the largest (most critical) EWC water source out of service.
Robert V. DeShazo, Eagle Water Company
Final Engineering Report
, July 6, 2007
Page 2
b. Install an automatic pressure reducing/sustaining valve (pS/RV) in the water system at FloatingFeather Road. EWe shall provide the Preliminary Engineering Report for this PS/RV to DEQ for
approval by no later than July 31 2007. EWe shall have the PS/RV installed and operational by
no later than December 31 , 2007.
4. EWe shall proceed in a timely manner to make the following system modifications required to satisfy
system demand requirements forecast for the year 2010:
a. Develop a 2 365 gallon-per-minute (gpm) alternative source or sources of water supply such that
Idaho Rules for Public Drinking Water System pressure and flow requirements are satisfied
system-wide with the largest (most critical) EWe water source out of service. This supplementalwater may come from new wells, modifications to existing wells, interconnections with other
public drinking water systems or combinations thereof. Ewe shall provide the Preliminary
Engineering Report for this alternative source or sources to DEQ for approval by no later than
September 30, 2007. The Preliminary Engineering Report shall provide a more detailed
implementation schedule that will then be incorporated by reference into the Consent Order. EWe
shall have the new source or sources, as appx:oved by DEQ, installed and operational by no later
than December 31,2008.
b. Modify the Well #2 booster pump station so that the new station can produce a combined flow of
640 gpm at 148-feet total dynamic head while satisfying Idaho Rules for Public Drinking Water
Systems redundancy requirements (largest pump out of service). Ewe shall provide the
Preliminary Engineering Report for the booster station modifications to DEQ for approval by no
later than March 31, 2008. EWe shall have the modifications to the booster station, as approved
by DEQ, installed and operational by no later than November 30, 2008.
5. EWe shall proceed in a timely manner to make the following system modification required to satisfy
system demand requirements forecast for the year 2014: Install a more direct pipeline connection between
the service area around Well #6 and the pipeline along Floating Feather Road as set forth in the Final
Engineering Report in order to improve fire flows at the west end of the EWe service area whenever Well
#6 is out of service. Ewe shall provide the Preliminary Engineering Report for this pipe connection to
DEQ for approval by no later than March 31 , 2012. EWe shall have the loop installed and operational by
no later than December 31, 2012.
B. Restrictions and Conditions:
With regards to the above Action Items, DEQ imposes the following restrictions and conditions:
1. The Consent Order Final Engineering Report is the functional equivalent of a Facility Plan as defined in
Section 003.34 of the Idaho Rules for Public Drinking Water Systems (mAPA 58.01.08). To confonn to
requirements set forth in Section 503 of the Idaho Rules for Public Drinking Water Systems, EWe shall
submit a Preliminary Engineering Report (see definition in Section 003.72 in the Idaho Rules for Public
Drinking Water Systems) for any material modification to the water system. After DEQ approves that
Preliminary Engineering Report, EWe shall then submit the plans and specifications for that modification
to DEQ for approval. The Action Items involving system modifications reflect this requirement. DEQ
Robert V. DeShazo, Eagle Water Company
Final Engineering Report
July 6, 2007
Page 3
recognizes that the Final Engineering Report provided sufficient technical details for some of the proposed
modifications (namely Action Items A.3.b and A.b) such that their Preliminary Engineering Reports
could be fairly simple documents, perhaps even letter-style, referencing the Final Engineering Report.
2. The Consent Order Preliminary Engineering Report implementation schedules for individual system
modifications do not address the requirement for providing Preliminary Engineering Reports. Rather than
delaying the project by requiring such infonnation to be provided in the Final Engineering Report, DEQ
elected to work with EWC's engineer, MTC Engineers, Inc., to establish the dates indicated in this letter. In
all cases, the plans and specifications will be submitted within 30 days after DEQ approves the Preliminary
Engineering Report. By agreement, these dates will become part of the overall implementation schedule for
the Consent Order. For both the Preliminary Engineering Report and related plans and specifications, thereview and approval process shall be as described in Paragraph 5 of the Consent Order.
3. With this approval of the Final Engineering Report, projects involving only water mains (sewer mains are
handled separately by the Eagle Sewer District) may be approved for construction, only, by either DEQ or a
Qualified Licensed Professional Engineer working on behalf of EWC. However, Sanitary Restrictions may
not be lifted by either DEQ or a Qualified Licensed Professional Engineer until written authorization is
provided by DEQ. DEQ will provide this authorization after 1) Action Items A.l and A.2 are completed
and 2) the system modifications listed in Action Item A.3 are operational (or close enough that DEQ is
satisfied that completion is assured). .
4. For system modifications involving interconnections (Action Items A.a and possibly A.a), the
Preliminary Engineering Reports shall include calculations or modeling results from the supplemental
water suppliers' demonstrating that they can satisfy the needs of the EWe system while continuing to meet
Idaho Rules for Public Drinking Water Systems requirements in their own systems. This demonstration
shall be based on the EWC and supplemental water supplier simultaneously experiencing similar demand
situations (i.e., maximum daily demand with fire flow and peak hour demand) with all of the supplemental
water supplier s sources and booster pwnps operational.
5. EWC shall not make any new service connections in the system s high pressure zone until all Idaho Rules
for Public Drinking Water Systems redundancy requirements for the main booster station have been met.
redundancy is achieved by an interconnection covered under another Action Item, then EWe shall provide
a Preliminary Engineering Report for DEQ's approval that demonstrates that Idaho Rules for PublicDrinking Water pressure and flow requirements in the high pressure zone are met with the booster pwnp
out of service. If redundancy is achieved through a system modification not covered under another Action
Item, EWC shall follow standard Idaho Rules for Public Drinking Water Systems procedures by first
submitting a Preliminary Engineering Report for DEQ's approval followed by plans and specifications.
6. Assuming redundancy requirements at the main booster station have been satisfied, the number of total
service connections in the system's high pressure zone shall not exceed 125% of the total number ofexisting connections until EWC has demonstrated to DEQ's satisfaction, that all Idaho Rules for Public
Drinking Water Systems standby power requirements have been satisfied.
Robert V. DeShazo, Eagle Water Company
Final Engineering Report
July 6, 2007
Page 4
C. Recommendations:
DEQ feels that the following Final Engineering Report Suggested Actions are particularly important and
encourages EWC to take the appropriate action:
1. Notify all customers in the system's high pressure zone that the main booster station currently does not
have pumping redundancy or standby power.
2. Keep the City of Eagle s plumbing inspectors and developers informed as to what parts of the service area
have service pressures greater than 80 pounds per square inch (psi).
Please call me with any questions at 373-0514, or contact me via e-mail at peter.bair~dea.idaho.l!ov
lJ~'
Peter S. Bair, P.
Technical II Engineer
PSB:sjt
Attachment: Approved copy of Final Engineering Report
Tiffany Floyd, Drinking Water Manager, Boise Regional Office
Mark Mason, P .E. Engineering Manager, Boise Regional Office
Stephanie Ebright, Attorney General's Office, DEQ State Office
Monty Marchus, P .E., Boise Regional Office
James M. Rees, P., MTC, Inc., 707 N. 27th St., Boise, Idaho 83702 (wi approved copy of Final
Engineering Report)
Molly O'Leary, Richardson & O'Leary PLLC, P.O. Box 7218, Boise, Idaho 83707
Randy Lobb, Idaho Public Utilities Commission
BRO Source File - Eagle Water Company (wi approved copy of Final Engineering Report)
TSP&S Reading File
EXHIBIT 6
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
06/26/2007 08:37 18014878668
MTC EDJin,cering
, Job #- M1'~OO2'"06
cmpi ConttaetAmount:
Total Change Order Amo~nt;
, Revi~d to~tt Amount: .
. Conttaet Amount R~aining:
WARD ENGINEERING GRO PAGE 02
$43,000.
$53 064.13 fAlJditional Servict..
S'96,Q64.
Water. System S~~Y,' Ea~c Water Comtlny
. , :
JlWoice .' ., Irtv.(te~' (.nvo.iccNumber Date ' Amount10041 111t1l2006 S 23,214.2(1215 IIt2Sf2006 S 603,
2iJ336 , 12i9/2006 ,$ 4 222.
2i1SJ2 1212312006 :$ 5 520.
20692 116/2007 $ 3.712.20934 1120.l2mJ7. $ 455.
21:\ 52 2J3/~7 S 8,272.. 2/.3'29 2fi1/2OQ7 $ ~77.50
21M5
2111'6
21%7
2.2.422 , .
22732 . :
:1/1712001
3t31/2007
411412007
5/12.12007
6/9/2001
Credit
issued
( Overpayment)
-; .
OO .
3l'7:\
363.
15,954.
, ,
24.460'.
Job Statement
619/07
T&M
Date-Amount
Paid Paid
12/13/00-::'/3/07 23,'l14.4Ct
5/812.007 6'03.
3.'812007 2.22..50
3/8/20();520.
3ltF2007 712.5()
j,'8:2001 455.
3/1112001 212J9
3/812007 977.50
3/8/2007 J(l,O2L67
Amount Billed to. Date:
Amount hid '0 Date':
CreditS Js"ued:
Department Manager
ARb ENGINEERING. GROUP
(101) 487~8040
COMMENTS:
96~O64.
000.
39,064.
-----
6/9/2QO7
D8te:
A i .$% interest charge :ihaH b~ added and billed separately each l'l'Kmth on any ~n1~JUnt overdl)(.
Pnsidtnt: S. TabTi,,
06/26/2007 88: 37 18014878668 W~RD ENGINEERING GRO PAGE
..A..-- ~ ~d:.~!!!" r!'J.
,!..
~r'
""---~ ~~.
w;~~80:,,\,g.::~t~~;~::'1w.lt
~;~~:'
3t!f41~1
'Tot. 8O!,~81."Q4t: . Fao
, ~~ ,
1I9~.tI6(,i
Date
1'119/2007
InvoiCe #
22732
BU' To
MTC
Attention: iim
j07 NOt'fb 27tb
Jlbise. lD. 83102
"Terms Due, Date JOb No,Job' DeSi:fiptiQn
Net 11912.007 MTCOO2.Eagle Water Company
Item 1;i)ftCrlptlon Fee Previously Currenl
SiRed 8i11
P.~aiu
w~ Mode!illl! Review, Update, &:viaion5 kI Report and Figures $43.000.543.000.iO.
Mditional Work. Site Viiit/Trlp to Bnise, lciaho OOO.OOO.
~:)
$0.
Additiori~ Work. Project Cooditnttil:sn with DEQ 311(( Addresdng 5977,$9i7.50 $0.
Adltitional WOrk ~ MOdmcanons ro.$ysmrtModel, Modification$$7;990.$7,990.SO,
to R1!port. Figu.l'e$. and T4ble work with Jim Reea!
AddiiiOri,a1 Wol:k ~ Rev.iSiOn! ro Summary/Ex1!cl.Il':ive Repon $3'18.$318.50.
(CAR)'
Additional Wotk - Modeling Ch~nBC$ to w~n No, 4 and
lmercOfl.ftedion, Mu~er Plan. Rawrite. Figures, and Tabl~$40,414.S15 9.:i4.S:2.4 460.
Copyibsl.RcpJOducfion Services, Eft.
SO.
Total 1U,W.5&
...,.:
k_I
.,'" '
.ac.' ,t- ~'
;:--; ,'
MTC, INC.
CONSUTING ENGINEERS, SURVE RS AND PLANNERS
1707 N. 27th STREET I
Boise, ID 83702
208- 345-00780 fax [phone]
FOR PROFESSIONAL ENGINEERING SERVICES FEDERAL # 82-0398542
ACCOUNT OF JOB NUMBER
EAGLE WATER COMP.05-840
O. BOX 455
EAGLE, ID 83616
JOB # 05-840 JUNE 27, 2007..
PUC STUDY
FOR EAGLE WATER COMPANY BILLED $P AID---Date
AUGUST 2005 377.377.
SEPTEMBER 962.962.
OCTOBER 571.571.
Water Program 044.044.
NOVEMBER 10,808.10,808.
DECEMBER 2005 10,976.10,976.
741.12--2005--paid
JANUARY..2006 $13,165.
FEBRUARY $12,714.
MARCH $10 028.
APRIL $10,131.
MAY $11 928.
JUNE $1,919.
JULY $791.
AUGUST $340.
SEPTEMBER $890.
OCTOBER $582.
NOVEMBER $340.
DECEMBER---2006 $680.
MTC PAID to WARD ENGINEERING 22,000.
paid 12-11--2006
paqe 1
JOB # 05-840 JUNE 27, 2007..
PUC STUDY
FOR EAGLE WATER COMPANY BILLED $Date PAID
JANUARY 2007 892.
printing 12 books $381.
FEBRUARY $977.
MARCH $595.
APRIL 438.
MAY 815.
JUNE 975.
TOTAL JUNE 27, 2007 $144 329.741.12--8-06
less
total paid $44 741.
TOTAL DUE $99 588.
page 2
EXHIBIT 7
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
RICHARDSON & O'LEARY, PLLC
515 N. 27th Street
O. Box 7218
Boise, ID 83707
To:
Eagle Water Company
Robert. V. DeShazo, Jr., Pres.
PO Box 455
172-D W.State Street
Eagle, ID 83616
Date
07/31/2005
08/16/2005
08/16/2005
09/13/2005
09/21/2005
10/1 0/2005
I 1/08/2005
11/09/2005
11/21/2005
12/13/2005
01/11/2006
01/12/2006
02/07/2006
02/09/2006
03/13/2006
03/15/2006
04/24/2006
OS/24/2006
06/20/2006
06/20/2006
06/26/2006
07/12/2006
07/17/2006
08/1 0/2006
08/31/2006
08/31/2006
09/11/2006
10/1 0/2006
10/12/2006
10/23/2006
11/10/2006
12/12/2006
CURRENT
Transaction
Balance forward
16RO - DEQ/Water Pressure-
!NV #2163. Due 08/16/2005.
PMT #1012. from trust fund
INV #2180. Due 09/13/2005.
PMT #6812.
INV #2229. Due 10/10/2005.
INV #FC 371. Due 11/08/2005. Finance Charge
!NV #2302. Due 11/09/2005.
PMT #6989.
INV #2314. Due 12/13/2005.
INV #FC 399. Due 01/1 I/2006. Finance Charge
INV #2367. Due 0I/12/2006.
INV #FC 423. Due 02/07/2006. Finance Charge
INV #2428. Due 02/09/2006.
!NV #2490. Due 03/13/2006.
INV #FC 437. Due 03/15/2006. Finance Charge
INV #2538. Due 04/24/2006.
INV #2602. Due OS/24/2006.
INV #2665. Due 06/20/2006.
INV #FC 477. Due 06/20/2006. Finance Charge
PMT #7553.
INV #FC 499. Due 07/12/2006. Finance Charge
!NV #2737. Due 07/17/2006.
!NV #2752. Due 08/1 0/2006.
PMT #7816.
PMT #3300.
INV #2797. Due 09/1 I/2006.
INV #2861. Due 10/1 0/2006.
INV #FC 608. Due 10/12/2006. Finance Charge
PMT
INV #2925. Due 1 I/10/2006.
INV #2992. Due 12/12/2006.
30 DAYS PAST
DUE
31-60 DAYS PAST
DUE
47.371.15
61-90 DAYS PAST
DUE
107.
Page 1
Statement
Date
7/15/2007
Amount Due
897.
Amount
265.
265.
318.33
318.
318.
32.
318.
262.
327.
247.
825.
16.
352.
1.227.
1.959.
42.
297.36
59.
510.40
40.
374.
889.
108.
142.
15.
620.
239.
497.
OVER 90 DAYS
PAST DUE
370.
Amount Enc.
Balance
265.
318.
318.
321.93
354.
35.
297.
300.
627.
633.
880.
706.
1.723.
075.
302.
261.89
6.304.
007.
066.
577.04
617.
243.
354.
1,463.
605.
620.
239.
737.
Amount Due
$4,897.42
RICHARDSON & O'LEARY, PLLC
515 N. 27th Street
O. Box 7218
Boise, ID 83707
Statement
Date
7/15/2007
To:
Eagle Water Company
Robert. V. DeShazo, Jr., Pres.
PO Box 455
172-0 W.State Street
Eagle, ID 83616
Amount Due Amount Enc.
897.
Date Transaction Amount Balance
01/15/2007 INV #3058. Due 01/15/2007.512.249.
02/15/2007 INV #3122. Due 02/15/2007.825.074.
02/21/2007 PMT #8431.249.825.
03/14/2007 INV #3170. Due 03/14/2007.545.43 1.370.04/16/2007 INV #3218. Due 04/16/2007.1.688.059.
05/07/2007 INV #FC 778. Due 05/07/2007. Finance Charge 30.090.
05/10/2007 !NV #3274. Due 05/10/2007.388.478.
06/06/2007 !NV #FC 802. Due 06/06/2007. Finance Charge 44.523.
06/12/2007 !NV #3335. Due 06/12/2007.326.849.
07/11/2007 INV #FC 830. Due 07/11/2007. Finance Charge 47.897.42
CURRENT 30 DAYS PAST 31-60 DAYS PAST 61-90 DAYS PAST OVER 90 DAYS Amount DueDUEDUEDUEPAST DUE
47.37I.l5 107.370.897.
Page 2
EXHIBIT 8
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
geneua 71. 7ren~
c5olu/ions for small bus1nesses
942 Preakness Dr. . Eagle, ID 83616 . [phone]
Invoice
Date Invoice #
7/1/2007 7032
Bill To
Eagle Water Company, Inc.
O. Box 455
Eagle, Idaho 83616-0455
f~: CQ; TJiiJ
! -
BY
L_.
=::-,=,_.:~-:~=:::::~-:
Description Amount
3/16/07 Prepare surcharge calculations for DEQ Engineering Report 350.
6/1 0/07 Prepare surcharge calculations for DEQ Final Engineering Report 250.
T etal $600.
EXHIBIT 9
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
geneva 71. 7ren~
c5olu/ions for small businesses
Robert DeShazo, Jr.
Eagle Water Company
POBox 455
Eagle, Idaho
Dear Robert
Based on the work entailed for the previous Surcharge Application, I estimate that my
fees for preparing this Surcharge Extension Application will be $600.
Thank you for this opportunity.
Sincerely,
1:J-
Geneva A. Trent, CPA
942 Preakness Dr. . Eagle ID 83616 . [phone]
EXHIBIT
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
BIim~D,S~\Nr &: QI~Y.Pll.CATTORNEYS AT LAW
Molly 0' Leary
Tel: [phone] Fax: [phone]
mol1 yIP ri ch ards 0 na nd oleary. com
O. Box 7218 Boise, ID 83707 - 515 N. 27th Sr. Boise, ID 83702
23 July 2007
Robert V. DeShazo, Jr. - President
Eagle Water Company, Inc.
172 W. State Street
Eagle, Idaho 83616
Re:1076/15 - Emergency Surcharge
Dear Robert:
I have estimated my legal fees for the handling of Eagle Water Company s Emergency
Surcharge Application as follows:
68.57 HOURS (Q) $175.00 per hour = $12 000.
EXHIBIT 1
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
TC, INC.
CONSULTING ENGINEERS, SURVEYORS, AND PLANNERS707 N. 27TH ST. BOIse. IDAHO 83702-3113 [phone] FAX [phone]
July 10, 2007
Molly O"Leary
Richardson &. O'leary PiLC
515 N. 27th Street
Boise, ID 83702
Dear Molly;
I have finished the estimate for the Eagle City connection.
Valves 12" installed with blocking as required
Pipe 12" C-900 SOLF installed
12" tee and coupling installed
Meter and vault
MobIDemob equipment and materials
Contingency (1 5%)
Engineering (12%)
$10,500
$ 2,500
$ 3,000
$25,000
$15,000
$5.6.000
$ 8,400
$ 6,720
TOT $71.000.
Design August 2007Permitted October 2007
Constructed December 2007
EXHIBIT 1
EAGLE WATER COMPANY, INC.
APPLICATION FOR EXTENSION OF SURCHARGE
f'lIDAHO
BANKING
" " . , , . .
t~ ot.t ,& 6~.
:0!.
~!;;--::.,';"".
:~;~";i:~;':'i
August 3, 2007
Eagle Water Company
Attn: Robert DeShazo, Jr.
I Eagle
402 Hagle Rd.
Eagle, Idaho 83616
208-939-7040
Dear Robert,
Pursuant to our recent conversation, here is an estimate of anticipated loan
costs associated with your request.
; Fairview
6010 Falrview Ave.
8olse, Idaho 83704
208-472-4700
Loan Amount:
Term:
Variable Interest Rate:
$201,433.
2 Years given similar collections
WSJ Prime + 2.00%
(today s rate = 10.25%)
I Meridian
1875 S. Eagle Rd.
Meridian, Idaho 83642
206-955-g686
Interest Only Payment(full advance): $1 697.01/mo.given no change in rate
Principle Reduction required quarterly - all available funds drawn
from controlled surcharge account.Loan Fee: 1 % of Loan Amount
Please note that this is not to be considered a commitment to finance by
Idaho Banking Company, but simply for discussion purposes only.
a Parl!Cenler
449 E. Parkcenler Blvd.
801se, Idaho 63706
206-395-1505 .
If you should have any further questions please call me at [phone].
1:1 Mortgage
2965 E. Tarpon Dr., Sic. 150
Meridian, Idaho 83642
208-378-1013
Sincerely,
Becky Fowers
A VP & Branch Manager
Idaho Banking Company
1:1 Construction
2965 E. Tarpon Dr., Sle. 150
Meridian, Idaho 83642
206-947-5586
EXHIBIT 1
EAGLE WATER COMPANY , INC.
APPLICATION FOR EXTENSION OF SURCHARGE
Eagle Water Company
Calculation of Additional Surcharge Amounts
at July 23, 2007
Professional fees outstanding:
Estimated bank loan fees
$ 201,433.
014.
Amount Financed
Term
I nterest Rate
Monthly Payments Required
$ 203 448.
2 years
10.25%
$ 9,411.59 (approximate)
Annual Cash Required $ 112 939.
Multiplied by Gross-up (from below)127.88%
Total Annual Surcharge $ 144,426.
Divided by Revenue subject to Surcharge $ 309,498.26 (2006 revenues)
Surcharge 46.665%
Totals
Revenues
$ 542 947.
186 643.
$ 729 590.
Percent of
Total
74.42%
25.58%
100.00%
2006 Customers
Residential
Commercial
Calculation of Gross-Up Factor for Taxes:
1 )100.00% taxable
00%State Tax Rate
92.00% Federal Taxable
13.80%Effective Federal Tax Rate
21.80% Composite Tax Rate
(Federal Rate 15%)
2) + 4)
78.20% Net After Tax Income
127.88% Gross-up Factor