20210301Application.pdf

PrestonN. Carter (ISB No. 8462)
Charlie S. Baser (ISB No. 10884)
Givens Pursley LLP
601 W. Bannock St.
Boise, D 83702
Telephone: [phone]
Facsimile: [phone]
.com
charliebaser@ sivenspursley. com
15459013_7.docx [3988-10]
Attorneysfor Gem State Water Company, LLC
IN THE MATTER OF THE
APPLICATION OF GEM STATE
WATER COMPA}ry, LLC FOR
APPROVAL OF ACQUTSTTION OF
THE ASSETS OF THE WATER
BUSINESS OF TROY HOFFMAN
WATER CORPORATION, INC.
*!J t.. nxI ti r+. u!}
BEFORB THE IDAIIO PUBLIC UTILITIES COMMISSION
case No.€SN -uJ -{?-o t
APPLICATION OF GEM STATE
WATER COMPANY, LLC FOR
APPROVAL OF ACQUISITION OF
THE ASSETS OF THE WATER
BUSINESS ORTROY HOFFMAN
WATER CORPORATION, INC.; AND
REQUEST FOR MODIFIED
PROCEDURE
Gem State Water Company, LLC ("Gem State Water") seeks the Idaho Public Utilities
Commission's ("Commission") approval of Gem State Water's acquisition of the assets of the
water supply and distribution systems (the "Water Business") of Troy Hoffman Water
Corporation, Inc. ("Troy Hoffman Water"), in accordance with the Asset Purchase Agreement
dated and effective as of December 18, 2020 (the "Agreement"). Gem State Water also requests
that the Certificate of Public Convenience and Necessity ("CPCN") of Troy Hoffrnan Water (No.
280) be transferred to Gem State Water, and that this Application be processed by modified
procedure.
Please serve all notices and communications with regard to this Application uponl
GEM SrATE WATER's AppLrcATroN FoR AppRovAL oF AceulsmloN - I
Preston N. Carter
Charlie S. Baser
Givens Pursley LLP
601 W. Bannock St.
Boise, D 83702
Telephone: [phone]
Facsimile: [phone]
prestoncarter@ givenspurslev. com
charliebaser@ givenspursley. com
kendrah@givenspursleli. com
Eric W. Nelsen
Senior Regulatory Afforney
NWNatural
250 SW Taylor St.
Portland, Oregon 97204
Telephone: [phone]
Eric.N elsen(@nwnatural. com
B.c.crcnouND AND Pnocnoun lL Hrsrony
Gem State 7/'ater Company
1. Gem State Water, located in Coeur d'Alene, Idaho, is a regulated public water
utility providing water service in northern Idaho. Gem State Water is a wholly owned subsidiary
ofNW Natural Water of Idaho, LLC ("NW Natural Water of Idaho"), which is in turn wholly
owned byNW Natural Water Company, LLC ("NW Natural Water"). An organizational chart is
attached to the accompanying testimony of Justin Palfreyman, the President of Gem State Water,
NW Natural Water of Idaho, and NW Natural Water.
2. Gem State Water, NW Natural Water of Idaho, and NW Natural Water are
members of a family of companies held by Northwest Natural Holding Company ('NW Natural
Holdings"), which was created during a corporate reorganization of Northwest Natural Gas
Company and its affiliates in 2018. Northwest Natural Gas Company, now a direct subsidiary of
NW Natural Holdings, is a 162-year old natural gas utility serving customers in the Pacific
Northwest.
3. NW Natural Holdings and NW Natural Water have financial resources and access
to capital markets to sufficiently capitalize Gem State Water so that it can provide safe and
reliable water utility service and proactively address the infrastructure needs of the utility. Sea
Palfreyman Testimony at 3. Additionally, Gem State Water benefits from its parent companies'
Gnu Srers WATER's AppLrcATroN FoR AppRovALoF AceursmroN - 2
and affiliates' core competencies in constructing and maintaining infrastructure, providing
exemplary customer service, and effectively managing regulated utilities. 1d. NW Natural Water
and its subsidiaries recently acquired water utilities in Idaho, Oregon, Washington and Texas.
Id. at 4. These acquisitions and the continued operation of these water utilities were seamless,
with no disruptions to customers' service. .Id.
4. Gem State Water recently acquired several water utilities in Idaho, and has
provided a seamless transition in ownership. This experience will carry over to Gem State
Water's acquisition of Troy Hoffman Water. Id.
Troy Hoffman Water
5. Troy Hoftnan Water is a regulated water utility that serves approximately 147
residential customers in Kootenai County, Idaho in accordance with CPCN No. 280. The area
currently served by Troy Hoffrnan Water is in the same vicinity as the territory served by Gem
State Water. Palfreyman Testimony at 5.
Tnr Tru,xsACTIoN
6. Gem State Water and the selling parties (Troy Hoffrnan Water, Dalton Square,
LLC, Ronald Stadley and Kenneth Murren) entered into the Agreement, which is attached to Mr.
Palfreyman's testimony.l The Agreement and the actions it contemplates, to the extent related to
this Application, are referred to as the "Transaction." The Agreement is conditioned upon the
Commission's approval. Agreement fl 5(b).
7. If approved, under the Agreement, Gern State Water will acquire the selling
parties' assets related to the Troy Hoffman Water Business ("Water Business Assets").
Palfreyman Testimony at 6. The Water Business Assets, which are listed in Schedule 2 of the
I The Agreement has been filed as "Confidential" under the Commission's rules.
GEM STATE WATER,S APPLICATION FOR APPROVAL OF ACqUISITTON - 3
Agreement, include all real property and personal property used to operate the Water Business,
including all water ights.Id.
8. Gem State Water is not requesting any change to rates, rate structure, or other
charges in this Application. Any future changes will be based on prudently incurred capital
expenditures and other accepted ratemaking principles. Palfreyman Testimony at 6-7.
9. If the Transaction is approved, Gem State Water will work with Commission
Staff to update its tariffs to reflect its addition of the Troy Hoffrnan Water Business Assets and
the retention of the existing rates, rate structure, and other charges for current customers of Troy
Hoffrnan Water and Gem State Water. Id. at7.
10. Gem State Water intends to work with Commission Staffbefore and during future
rate proceedings to consider consolidation of rates, rate strucfure, and other charges as
reasonable and appropriate for current Gem State Water and Troy Hoffrnan Water customers. .Id.
11. Gem State Water submits that the Transaction is in the public interest. The
Transaction will provide access to capital that is not currently available to Troy Hoffman Water.
Gem State Water and its parent companies will offer expertise in operating regulated utilities.
Gem State Water also will maintain the existing rates, rate structure, and other charges and will
maintain or improve the level of services currently provided.
12. Gem State Water, NW Natural Water of Idaho, NW Natural Water, and their
affrliates have financial resources and access to capital markets to sufficiently capitalize Gem
State Water so that it can provide safe and reliable water utility service and proactively address
the infrastructure needs of the Water Business Assets now owned by Troy Hoffinan Water. Id. at
3.
GrM Sr,{TE Warsn's AppLrcATroN FoR AppRovAL oF AcerlsrrroN - 4
13. Additionally, the water system currently owned by Troy Hoffman Water will
benefit from Gem State Water's, and its affiliates', core competencies in constructing and
maintaining infrastructure, providing exemplary customer service, and effectively managing
regulated utilities. Gem State Water has the ability to make needed improvements to the water
systems. Id. at3-4.
1,4. If the Transaction is approved, Gem State Water employees will assume the roles
previously undertaken by Troy Hoffman Water's contractors. Id. at5. Troy Hoffrnan Water's
current owners have agreed to assist with the fransition to Gem State Water as needed. .Id.
15. Gem State Water employees, who are based near Troy Hoffman Water's current
locations, have the business experience and water system expertise to operate and maintain the
Troy Hoffrnan Water Business Assets. 1d.
16. If the Transaction is approved by the Commission, Leslie Rayner, the licensed
water system operator for Gem State Water, will serve as the licensed water system operator for
the water system currently operated by Troy Hoffman Water. Ms. Rayner holds license number
DWD3-21515 (Class 3), and her business address is 250 Northwest Blvd., Suite 111, Coeur
d'Alene, Idaho 83816. Id.
17. Gem State Water has identified several potential necessary capital investnents,
including investments in SCADA, AMR metering, and an asbestos cement replacement program.
If the Transaction is approved, Gem State Water will begin the process of supplementing a water
master plan that will identiff and prioritize needs of the Troy Hoffinan Water Business Assets.
Id. at 6.
Rnqunsr ro AMEND AND TRANSFER CPCN
18. Troy Hofftnan Water currently holds CPCN No. 280.
19. As described above, Gem State Water intends to provide service to Troy Hoffinan
GEM SrATE WATER'S APPLICATIoN ron Appnover op AcQuIsInoN - 5
Water customers. Accordingly, Gem State Water respectfully requests that CPCN No. 280 be
transferred to Gem State Water.
20. The transfer of the CPCN is necessary to effectuate the Transaction and to realize
the public benefits discussed above. The transfer of the CPCN is generally in the public interest
for the same reasons as the Transaction.
Aoorrroxu, INToRMATIoN
21. Additional information that may facilitate the Commission's consideration of the
Transaction is identified below.
22. Transaction-related costs related to the acquisition have been incurred by NW
Natural Holdings, not by Gem State Water, related to activities including due diligence,
environmental consultants, research, legal, travel and negotiations. The costs will not be passed
to Gem State Water and will not be included in any rate case frlings. Id. at7.
23. If the Transaction is approved, accounting, financial, and customer records will be
kept in the local office of Gem State Water, 250 Northwest Blvd., Suite 1l l, Coeur d'Alene,
Idaho 83816. Gem State Water's local office also will be the location for former Troy Hoffrnan
Water customers to pay bills, make requests, and otherwise correspond with Gem State Water.
Id. at8.
24. Troy Hoffinan Water meters are currently read in April, June, August, and
October, and customers are currently billed on a bi-monthly basis throughout the year. Gem
State Water intends to maintain this schedule for the foreseeable future. 1d.
25. Gem State Water provides 24-hour response to repairs or water quality issues.
Customers can call the Gem State Water office phone number, [phone], and the call will
Gsu Srere WersR's AIrLICATIoN FoR AppRover or AcqursnroN - 6
be forwarded to an answering service after hours or whenever the line is not able to be answered
during office hours. 1d.
26. The most recent sanitary survoy from the Idaho Departnent of Environmental
Quality for Troy Hoffrnan Water was completed.in20l6, and is attached as Attachment A.
27. Gem State Water will publish a notice to customers in the local newspaper, in the
form of Attachment B to this Application, regarding the Transaction and the Application,
although no notice is required because Gem State Water is not proposing any changes to rates.
Id. at7-8; IDAPA 31.01.01.125. Gem State Water also intends to file a notice to each customer,
and to file in this proceeding verification when such notice is sent.
28. Gem State Water has not identified any particular opportunities to add new
customers to Troy Hoffrnan Water at this time. If zoning changes occur, additional connections
may become available. Id at8.
29. A description of the water system, including information regarding components of
the Troy Hoffrnan Water Business Assets, are included in the 2017 santary survey. Gem State
Water intends to obtain additional information regarding the system through the water master
planning process.
30. Troy Hoffinan Water's water system is designed to supply fire flows.
31. Water rights information for Troy Hoflnan Water are attached as Attachment C.
Moprrrpo PRocnounp
32. Gem State Water believes a hearing is not necessary to consider the issues
presented in this Application and respectfully requests that it be processed by modified
procedure, using written submissions rather than a hearing, under the Commission's Rules of
Procedure 201 through 210.
GEM STATE Wernn's APPLICATToN FoR Appnov,ql or AceulsrrroN - 7
Coxcr,usroN
Gem State Water respectfully requests that the Commission enter an order:
1. Authorizing this matter to be processed by modified procedure.
2. Approving the Transaction, finding: that it is consistent with the public interest,
that the cost and rates for supplying service will not be increased by reason of the Transaction,
and that Gem State Water has the bona fide intent and financial ability to operate and maintain
the Troy Hoffinan Water Business Assets in the public service.
3. Transferring the CPCN currently held by Troy Hoffinan Water, CPCN No. 280,
to Gem State Water.
4. Granting such other relief as the Commission deems just and reasonable.
DATED: March 1,2021
GTVENS PURSLEY LLP
,P f--*a**
PrestonN. Carter
Charlie S. Baser
Givens Pursley LLP
Attornqtsfor Gem State Water Company, LLC
GEM STATE WATER,S APpLICaTION FOR APPROVAL OF ACQUISTTION - 8
ATTACHMENTA
GEM STATE WATERCOMPANY
Sanitary Survey - Troy Hoffinan Water Corporation
(18 PAGES)
STATEOFIDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALITY
21 1 0 lrcnuood Pad<way, Coeurd'Alac, lD 83814(208)7691422 C. L. tstncfi" Ofier, @vernor
John H. Tippets, Diredor
February 22,2017
Ronald Stadley
Troy Hoffinan Water Corporation
710 W Dalton Avenue, Suite B
Coeur d'Alene ID 83814
[e-mail]
Subject: Report of Sanitary Survey, Troy Hoffrnan Water Corporation PWS ID1280096
Dear Ron:
I would like to thank you for participating in the sanitary survey of the Troy Hoffrnan Water Corporation
public drinking water system (system) on January 27,2016.
The system was inspected and determined to be operating in compliance with the Idaho Rules for
Public Drinking Water Systems. A summary of deficiencies, one additional requirement and
recommendations are provided at the conclusion of the enclosed narative report. Please contact me
within 30 days of receipt of this report to discuss a schedule in which deficiencies will be corrected.
Please contact me at 208-666-4624 with any questions or concenrs you may have regarding the
findings of the enclosed re,port.
Sincerely,
!,r,,, k/ r\Ilt
Suzanne Scheidt Miller
Senior Drinking Water Analyst
suzanne. [e-mail]. eov
Enclosures: Troy Hoffrnan Water Corporation Report and Photo Log, Financial Survey Forms
c: Anna Moody, Drinking Water Program Supervisor,anna.mood .idaho.eov
File in TRIM: ID1280096
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 1 of 18
2017 Drinking Water Supply Report
Idaho Departrnent of Environmental Quality
System: Troy Hoffman Water Corporation
PWS #: ID1280096
County: Kootenai
Date of Survey: 01127/17
System Representatives Present at Survey: Mr. Ronald Stadley
Surveyed by: Suzanne Scheidt Miller, Senior Drinking Water Analyst
Available Sources: Well
Primary Source: Ground Water
Water System Type: Community
Population: 336
Service Connectionsz 147
System llistory and Overview
The Troy Hoffrnan Water Corporation (system) is classified as a community public drinking
water system serving the Hoffrnan Addition subdivision and neighboring residential properties
located within Coeur d'Alene city limits between Fourth and Fifteenth Street, and Dalton
Avenue and Day Road. The system is privately owned and operated by Troy Hoffrnan Water
Corporation, Inc. and actively regulated by the Idaho Public Utilities Commission (IPUC).
Idaho Deparftnent of Environmental Quality (DEQ) records indicate well and water system
component construction was initiated in 1956 to serye the Hoffrnan Addition subdivision.
A 3O-inch diameter hand dug well supplies the system and is enclosed in a well house due south
of the intersection of Hoffrnan Avenue and Anne Street. Two submersible pumps installed in the
well casing discharge to pressure via two respective flow-through hydropneumatic tanks.
Distribution main is constructed primarily of 4- and 6-inch asbestos cement (trancite) main with
one segment of 8-inch asbestos cement main and some 6-inch C900 main.
Three phase electrical supplies pumps via a designated overhead power connection from Avista.
The operator reports the system has not experienced a power loss within the last 20 years.
Well and Discharge Appurtenances
The well, hydropneumatic tanks and discharge appurtenances are enclosed within a locked well
house situated on a 0.08 acre well lot (parcel #C-0000-036-8555) owned by Hoffrnan Troy
Water Corporation (in turn owned by Dalton Square LLC) as per Kootenai County Assessor
records. Adequate heating and ventilation are provided within the well house. Original building
construction in 1956 and addition in 1966 did not include provisions for a floor drain; however,
doors do open outward.
A 0.5 cubic feet per second or the equivalent of 224 gallons per minute (gpm) municipal water
right was allocated from Idaho Department of Water Resources (IDWR) with a priority date of
April30, 1956.
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 2 of 18
A Driller's Report is not on frle with IDWR. DEQ records from the initial survey conducted in
1974 indicate the 30-inch steel cased well was hand dug to 254 feet below ground surface (bgs).
Static water level was recorded at203 feet bgs. Surface seal information is not available. The
well casing is sealed by a concrete pedestal and extends approximately 24 inches above grade.
Well vent, electrical, and pump discharge lines route through a steel plate sealed to the pedestal.
As previously indicated, two submersible three-phase pumps are installed in the 30-inch well
casing. A 30 hp Grundfos pump (equipped with soft start) operating in lead discharges
approximately 300 gpm to the 4000 gallon pressure tank (Tank A). A 20 hp Red Jacket
submersible pump (operating in lag) discharges at an unknown flow rate to the 3000 gallon
pressure tank (Tank B). Pumps are actuated by pressure switches installed on discharge lines to
respective tanks. The lead pump actuates on at 55 psi and off at72 psi. The lag pump actuates
on at 45 psi and offat 70 psi. The Grundfos 30 hp submersible lead pump was installed in June
2009. The operator reported previous issues with pump cycling have been remedied with the
installation of a soft start motor on the 30 hp pump. During low demand periods, the operator
regularly cycles the 20 hp pump to achieve adequate turn over through Tank B.
The 30 hp pump discharge appurtenances include a raw water sample tap, flow to waste,
pressure gages, and accessible check valves to isolate well discharge from Tank A. A pressure
relief valve tees off pump discharge to Tank A. The relief valve discharges outside the well
house building and the outlet is equipped with 24-mesh screen. A small leak on the outlet is
considered a deficiency requiring repair. Please contact our office within 30 days of receipt of
this survey to discuss a timeline in which this will be addressed.
The 20 hp purnp discharge appurtenances include flow to waste, pressure gages, and accessible
check valves to isolate well discharge from Tank B. A pressure relief valve tees offpump
discharge to Tank B. The relief valve discharges outside the well house building and the outlet is
equipped with 24-mesh screen.
An instantaneous and totalizing flow meter is installed on discharge from the 30 hp pump. The
meter was not installed with adequate upstream and downstream pipe length, and is not reporting
accurately. An instantaneous and totalizing flow meter is not installed on the 20 hp pump. The
lack of flow meters is evaluated as a system deficiency. Please contact our office within 30 days
of receipt of this survey to discuss a timeline in which this will be addressed. The system may
wish to evaluate an electromagnetic flow meter as an option due to limited available pipe length
on pump discharge to Tank A.
Well Lot and Source Water Assessment
The well lot perimeter is fenced to prevent unauthorized entry. The well lot does not meet the
minimum required setback distance of 50 feet from neighboring property lines. However, as
well construction (1957) precedes adoption of the Idaho Rules for Public Drinking Water
Systems in November 1977. Setback requirements would be enforced in the event the well is
subject to unresolvable contamination attributed to practices within setback distances. The
location of sewer main owned and maintained by the City of the Coeur d'Alene was taken into
consideration at the time sewer service became available to the Hoffrnan subdivision. Sewer
main was constructed at a setback radius of greater than 70 feet from the well. Mike Becker with
the City of Coeur d'Alene Wastewater Department also confirmed the nearest pressure sewer
mains were greater than one half mile from all Hoffrnan water system components.
Page 2 of 6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 3 of 18
A Source Water Assessment Report of the well was completed by DEQ on April 30, 2001, and
Potential Contaminant Inventory was updated in August 2016. The complete report may be
viewed at: http ://www2. deq. idaho. gov/water/swaOnline/S earch
A ground water under direct influence of surface water (GmrDD determination was completed
on May 2, L995; the source was evaluated as ground water.
Hoffman Well House and Infrastructure
Well Discharge Appurtenances
Two flow-through steel hydropneumatic tanks ride on distribution. The east 4000 gallon tank is
identified as Tank A (installed 1956); the west 3000 gallon is identified at Tank B (installed
1966). Each tank is equipped with a pressure gauge, pressure relief valve, isolation valves, and
drain. A portable electric air compressor located in the well house recharges tanks. The
compressor is actuated by a time meter adjusted by the operator as necessary to maintain sight
glass level on Tank A. Sight glass levels on Tank A are representative of levels on both tanks as
individual tank effluent discharges to a manifold supplying 6-inch main on Hoffinan Avenue.
Valves allow for individual tank discharge to be isolated from distribution; however, well
discharge is not plumbed with a tank by-pass to discharge to pressure.
An underground sprinkler system provides irrigation to the well lot from the 30 hp pump
discharge to Tank A. Backflow protection is provided by a double check assembly tested
annually by Idaho licensed backflow assembly tester and system licensed operator, Ken Murren.
Distribution Components
The system supplies 147 metered service connections. Distribution main consists of 6-inch
asbestos-cement (AC) water line, with a portion of 8-inch AC line on Hoffrnan Avenue east of
the pump house, and 4-inch AC lines serving Timber Avenue and Day Road. Small segments of
distribution main at sffeet intersections were replaced in 1998 with C-900 main in coordination
with a City sewer main construction project.
Page 3 of6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 4 of 18
Gravity Sewer Main
Well L.ot
Water MainWater Main Gravity Sewer Main
As per the operator, setbacks from gravity sewer and potable water main are met. Sewer main
are located down center lines of streets and potable water mains are located in alley ways.
Distribution main was constructed primarily in a dendritic pattem. Dead end mains on opposite
ends of Timber Avenue, Day Road, Hoffman Avenue, and Margaret Avenue are equipped with
hydrants flushed twice per year. Other system valves are exercised each spring.
There are no known distribution leaks on water main. All service connections are metered.
The system does not provide adequate fire flow as established by the Coeur d'Alene Fire
Departrnent to two fire hydrants installed on 6-inch distribution main. As per Idaho Rules for
Public Drinking Water Systems (Rules) 58.01.08.003.52 "adequacy of the water system fire flow
capacity is determined by local fire authority." Lack of adequate fire flow presents a risk of
damage to main in the event fre pumps were connected to hydrants. [n order to prevent this,
operators have notified the Coeur d'Alene Fire Department regarding this concern. In response
the Fire Department does not recognize the two hydrants supplied by the system. Rather, fire
flow is provided to the subdivision from four hydrants supplied by the City of Coeur d'Alene
Water Department and located at Troy, Margaret, and Anne Avenues, and Easy Street.
Cross Connection Control
The Hoffrnan Troy water system actively implements a cross connection control program
meeting the requirements of the Rules. Specifics of the progmm are listed in notification of
requirements provided to customers in 2011 and saved to DEQ's electronic records
(2012ACA16r).
System operators have authority to inspect services for cross connections. An inventory of
identified cross connections at services is maintained and estimated by the operator as 98o/o
complete. Annual backflow assembly testing is required by an Idaho licensed backflow
assembly tester (BAT). In 2016 customers were provided a wriffen deadline (August 31') for
assembly testing or be subject to disconnection and associated re-connection fees.
Disconnection would also occur in the event of an unresolved failed assembly. The system
charges a fee between $20 and $40 for reconnection; fees are dependent on whether or not
reconnection occurs during or outside of regular business hours. A copy of the notice was
provided to DEQ at the time of the survey and saved to the system records.
Required Depressurization Response
As per Idaho Rules 58.01.08.552.01.b.ii.1-2 during unplanned or emergency situations, where
water pressure within the system is lonwn to have decreased below 20 psi, the water supplier
must notifu DEQ, provide public notice to affected customers within 24 hours andflush and/or
disinfect the system. When sampling and corrective procedures have been conducted, the water
supplier must re-notify the affected customers that water is safefor consumption. During
planned maintenance or repair situations, when water pressure within the system is expected to
fall below twenty (20) psi, the water supplier must provide public notice to the affected
customers prior to the planned maintenqnce or repair activity and shall ensure that the water is
safefor consumption.
Page 4 of6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 5 of 18
Monitoring and Reporting Requirements Summary
As a community water system, monthly monitoring for total coliform is required from rotating
sampling locations representing the distribution system according to a sample siting plan as per
the Revised Total Coliform Rule. The plan was reviewed during the field inspection survey.
Source water quality meets all regulatory drinking water standards. Nitrate levels have
historically ranged from 0.57 to 1,.7 mg/L with a decreasing trend; the maximum contaminant
level (MCL) for nitates in drinking water is 10.0 mg/L. Arsenic levels have historically ranged
between 0.005 and 0.007 mg/L. The most recent arsenic sample result collected in June 2014
was 0.0059 mg/L. The MCL for arsenic in drinking water is 0.010 mg/L.
Lead and copper monitoring results from the last round of five samples collected in September
2016 indicated lead levels ranging from 0.0012 to 0.0019 mg/L and copper levels ranging from
0.0128 to 0.0895 mglL. The action level for lead is 0.015 mg/L and for copper is 1.3 mg/L.
Consumer notification of lead tap water monitoring results was conducted by the system. A
copy of the notice and required certification is on file with DEQ. Lead and copper monitoring is
next due between June l, and September 30,2019.
The table below reflects the sampling schedule requirements for the system. The monitoring
schedule may also be accessed at: http://www.deq.idaho.sov/water-quality/drinking-water/pws-
switchboard.aspx
Samole Twe Frequencv Sample Location
Total coliform 1 sample per month Distribution locations identified in sample
site plan
Lead and Copper 5 samples per 3 years Cold water kitchenlbath tap identified in
sarnple site plan
Asbestos 1 sample per 9 years Service connection served by AC main
Nitrate 1 sample per year Well
Nitrite 1 sample per 9 years Well
Alpha I sample per 9 years Well
Radium 226 I sample per 9 years Well
Radium 228 I sample per 9 years Well
Fluoride I sample per 9 years Well
Sodium I sample per 3 years Well
Uranium I sample per 9 years Well
VOCs 1 sample per 6 years Well
Arsenic 1 sample per 3 years Well
IOCs 1 sample per 9 years Well
The Hoffrnan Troy water system actively participates in the Department's monitoring waiver
program. The following table summarizes the source water monitoring waiver status for the
system.
Page 5 of6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 6 of 18
Contaminant Next Monitorins Due Waiver Renewal I)uration
IOCs t2/3u2019 t2/3U20t9 9 year
Cyanide Not required t2l3U20t9 9 year
VOCs 1213U2019 t2/3U20t9 6 year
SOCs Not required 0510U2017 3 year
Dioxin Not required 05/0U20t7 3 year
The system mails all customers the Consumer Confidence Report annually. A copy of the report
and certification form is provided to DEQ as required.
Management Capacity & Operator Certification
As previously indicated, the system is privately owned and under the designated supervision of
Responsible Charge Operator, Ronald Stadley who holds a current very small operators license
(VSWS-12189-GP) from the Idaho Bureau of Occupational Licensure, Drinking Water and
Waste Water Professionals (IBOL). Mr. Ken Murren is the Substitute Responsible Charge
Operator and also holds a current very small operators license (VSWS-17012) from IBOL.
Water Rate Schedule
Water rate schedule was updated :rl,20l4. All service connections are metered and billed a flat
rate of $2750 bi-monthly for a 10,000 gallon usage. An overage of $1.12 for each additional
1,000 gallons per billing period is charge. A $458 hook up fee is charged for new service
connections.
Conclusion
The system was found to be operated in compliance with the Idaho Rules for Public Drinking
Water Systems. Listed below is a summary of issues identified during the survey inspection.
Please consult with DEQ staffwithin 30 days of receipt of this report to discuss a timeline for
correction of defi ciencies.
Deficiencies
1. Accurate instantaneous and totalizing flow meters are required on the 20 and 30 hp
submersible well pump discharge lines as per IDAPA 58.01.08.542.04.
2. The pressure relief valve outlet on the 30 hp pump discharge is leaking and requires
repair as per IDAPA 58.01.08.542.10.
Additional Requirement
1. Please complete the attached financial forms and return to the DEQ Coeur d'Alene
Regional Office by March 31,2017.
Recommendations
1. It is recommended are system valves are exercised on an annual basis.2. It is recommended that an Operation and Maintenance Manual be developed for the
system.
Page 6 of6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 7 of 18
Name of Facility: Troy Hoffman Water Corporation
lnspector(s): Suzanne Scheidt Miller
lnspection Date: Friday, January 27,2Ot7
Purpose of lnspectlon: Sanitary Survey
Photogra phic Documentation
Publish Date: Tuesday 3l January 20L7
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 8 of 18
ldaho Department of Environmental Quality
Photographic Documentation For Troy Hoffman Water Corporation
Table of Photographs:
Photograph 2: Frost free hydrant on pump discharge manifold to distribution (inside fence)
Photograph 5: 30 hp submersible pump controls (equipped w soft start)
Photograph 7:20hp submersible pump controls (lae)
Photograph 8: 30 hp submersible pump pressure relief discharge.
Photograph 9: 30 hp submersible pump discharge appurtenances to Tank A.
Photograph 10: DCA backflow protection on 30 hp pump discharge to underground sprinkler system
Photograph 11: Underground sprinkler system controls - well lot
Photograph 12: Hydropneumatic Tank A (flow through)
Photograph 14: 30 hp submersible pump pressure switch and isolation valve to Tank A
Photograph 16: Tank B (flow through) sight glass (same elevation as Tank A)
Photograph 17: Tank B pressure switches regulating 20 hp submersible pump
Photograph 18: Air compressor discharge to Tank B with pressure gage
Photograph 19: Tank B discharge to manifold pressurizing distribution.
Photograph 20: 30 hp pump pressure relief discharge outlet w vented cap protected w 24-mesh.
Photograph 21:20 hp pump pressure relief discharge outlet w vented cap protected w 24-mesh.
Photograph 22: Concrete inscription pump house original constructed 1956...........
Photograph 23: Concrete inscription pump house addition constructed 1965
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 9 of 18
3
4
4
5
5
6
6
6
6
7
7
8
8
9
9
10
10
10
10
11
11
LL
2
ldaho Department of Environmental Quality
Photographic Documentation For Hoffman Water Cor
&
'#
-.,1ffi*
Photograph 1: Well house building Photograph 2: Frost free hydrant on pump discharge manifold to
distribution (inside fence)
3
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 10 of 18
ldaho Department of Environmental Quality
Photographic Docu mentation For Hoffman Water ration
Pholograph 4; Well u.rith 20 and 30 hpr subnrersible pump discharge
4
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 11 of 18
HOFFMAN WATER CO
2 08 - 664- 98 s8
ldaho Department of Environmental Quality
ic Documentation For Troy Hoffman Water Co
Photograph 6: 30 hp submersible pump controls (lead and equipped w soft
start)
Photograph 5: Well casing vent w 24-mesh screen
5
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 12 of 18
ldaho Department of Environmental Quality
Documentation For Hoffman Water Corporation
Photograph 7: 20 hp submersible pump controls (lag)
Photograph 8: 30 hp submersible pump pressure relief discharge
Photograph 9: 30 hp submersible pump discharge appurtenances to Tank A Photograph 10: DCA backflow protection on 30 hp pump discharge to
underground sprinkler system
6 ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 13 of 18
ldaho Department of Environmental Quality
Documentation For Hoffman Water
Photograph 11: Underground sprinkler system controls - well lot
Photograph 12: Hydropneumatic Tank A (flow throughl
7
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 14 of 18
ldaho Department of Environmental Quality
Documentation For Hoffman Water Corporation
Photograph 14: 30 hp submersible pump pressure switch and isolation valve
to Tank A
Photograph 13: Electric air compressor control timer
8
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 15 of 18
ldaho Department of Environmental Quality
Documentation For Hoffman Water ration
Photograph 16: Tank B (flow through) sight glass (same elevation as Tank A)
Photograph 15: Tank A discharge to distribution
9
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 16 of 18
ldaho Department of Environmental Quality
ic Documentation For Hoffman Water Co
Photograph 17: Tank B pressure switches regulating 20 hp submersible
pump
Photograph 18: Air compressor discharge to Tank B with pressure gage
,{
I
Photograph 20: 30 hp pump pressure relief discharge outlet w vented cap
protected w 24-mesh
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 17 of 18
Photograph 19: Tank B discharge to manifold pressurizing distribution
10
ldaho Department of Environmental Quality
Photographic Documentation For Hoffman Water
4.''t'-.i'gs
Photograph 22: Concrete inscription pump house original constructed 1956
Photograph 21: 20 hp pump pressure relief discharge outlet w vented cap
protected w 24-mesh
Photograph 23: Concrete inscription pump house addition constructed 1966
ATTACHMENT A TO APPLICATION
GEM STATE WATER COMPANY
Page 18 of 18
11
ATTACHMENT B
GEM STATE WATERCOMPANY
Notice to Customers
(1 PAGE)
Gem Stote
WATER*
TROY HOFFMAN WATER CORPORATION
CUSTOMER INFORMATION
Dear customers,
ln December 202O, Gem State Water Company, a subsidiary of NW Natural Water, entered into an
agreement to acquire the water utilities of Troy Hoffman Water Corporation ("Troy Hoffman Wate/').
After the sale is approved, Troy Hoffman Water will continue to be operated locally with the oversight of
Gem State's North ldaho team made up of professionals from the Coeur d'Alene area. Gem State Water,
and Troy Hoffman Water expect that the transition will be seamless to customers.
The tdaho Public Utilities Commission (IPUC) is currently reviewing the transaction. To follow the
regulatory process, check the Commission's website at www.puc.idaho.gov or use the contact
information listed below.
About NW NaturalWater
NW Natural Water provides water distribution service or will provide water distribution service upon
closing of pending acquisitions, to approximately 52,000 people through over 26,000 connections in the
Pacific Northwest. NW Natural Water is a subsidiary of NW Natural Holdings (NYSE:NWN) and is
headquartered in Portla nd, Oregon.
More information
lf you have questions about the transaction and transition to Gem State Water, please contact Troy
Hoffman Water, NW Natural Water, or the IPUC using the following information. (Note: this is for
inlormotion about the transoction. Pleose continue to contoct Troy Hoffmon Woter for customer biiling
and service informotion.)
P.O. Box 3388 Coeur D'Alene, lD 83816
L.877 .7 55.9287 - www.gemstate-water.com
ATTACHMENT B TO APPLICATION
GEM STATE WATER COMPANY
Page 1 of 1
?
Trov Hoffman Water
710 W Dalton Ave.
Coeur d'Alene, lD 83815
hoff ma nwater@ gma il.com
(2081 664-98s8
NW NaturalWater
Attn: Melissa Moore
250 SW Taylor St. Portland, OR 97204
melissa.moore@ nwnatural.com
lso}l22642Lt
Public Utilities Commission
11331W. Chinden Blvd Building 8, Suite 201-A
Boise, lD 83714
(2081334-0300
Gem State Water
Attn: Leslie Abrams-Rayner
250 NW Blvd., Suite 203
Coeur d'Alene, !D 83814
leslie@ gemstate-water.com
l877l7sS-9287
ATTACHMENT C
GEM STATE WATER COMPAI\Y
Water Rights
(2 PAGES)
,L.?- \)lfr$l,fu1}*,t.\D
IT THI DISTBICT SI'3I OI rlII ?IPTf, JI'DICITL cr or Elffi Judicial Dlsflot
STATI OT IDTtrO, IS IID FOT IllE CTCUTTY OI Twln Fdls - SEIB of ldalp
ID R' CSSEA
caaa Io. {95?6
PrBlIlL Dacttl ?onauArt toI.I,.c.P. 5a (b) ron'
rrt.s ligbt 95-02117
By qod(
nNl3 llID IDDREBS!TROy xott'xlf, ralln, cotP
710 r DILIOX rVB Stt a'
ca&n D ALILE, tD 13815
SOIIRGE:
QEIllTITr;
cnoullD tAlER
0.30 cta60,00 tsr
PAIORITI DTT!:
Righr ros, 95-211?.nd 95-8130.r. thitGd Eo r Eot.l cmbl!€drsual dlvrrrio ?olle. of Ul.? f,f .
0t I to/ t956
a51X Bo{lf S36 gtSE ritbltr XootGarl CouatyPOItf,I OF DII|BRSIONT
P4SAPqEE tXD
PETTOD O? U8E:HrnP,osa oF lrsl FB,IOD OF OsE
0l-01 m 12-31
QUAT8ITY0.50 cF8
60.00 tnl
Itualclprl
PL*SE Or gSE!
P:.acG of u8c ia uitbiE tbc saric. ar.a ot troy Eoffn r rrrcrco4)orrtloa rs pro"1d.d lor uldGr td&o 1rr.
orsEt pnrrvrsroilS racEssaff pon Drpu0rrto$ oR luqrrrErErrroil o! tara rr?!R !.r(r{fr
$II8 PTRIIA'J DE€BBE I8 8r'!.,ICr TO gucrl CIETEII. PROVISIOTISxlcraalBy lon Txt Drluf,rBlof, o! rBr Ll(Ifr6 on, roR filr tPsrcrEr?rDltrlllSTrrrlo! ot Itlt lrrta. R.rgHrS ts xrt r! lrlrTrt{lrElJyDE'lilIrlO ET Tt't OOUTA AT r POIrl tN 'D'T BO tArrR T8tli THAllllBy o! A pIlN t uilrrlE) Drcrrr. r.c. aEcarof, .2_1.12(6).
$,IJE 5T (b} SBR,TIFICATT
rlth lith r.ap€ci to tba llruc! detcraiDad by tDc tbofG Judg&a[t o! ordar, it li baraby cERttlIED, i! accord.lceItr13 5a(b), I.n.c,p,, thrt tb. court h., &tcmiacd E}!t Eh.ra ls ao Jurt rcrroD lor of thG ent.ry of NtlD.l Judg[.at .Dd tllt thr court br' r[.t do.r b.tr.by dir.ct lbtt tbc.bovc rhr1l bc a fiDrlJud$lGat r{roo uhich cxlcBElon Eay irluG urd an eDDarl ary bc talao .a prgt ldad lIlrc1lrt. Rulcs
Erlc ir.
Prcaidlag JUdEG of the
e--s: {.^116- -.Ber-.- -te-. ^gJuqtabaeE
canaA -Fr.EtrAtr DECS,ir 9m8urulT ro l.n.c.p. 3a(b)P.gc 1
ouD- 16-2019ATTACHMENT C TO APPLICATION
GEM STATE WATER COMPANY
Page 1 ol2
Nov - g 20t9
rrt.r tjght 95-0211?
IT tAE DIgtBTqT COUBT OF TM ':TTB JI'DICIT& DISTRIET OF ITHE
srArE or ruilrc, ur rf,D loB tllE colrllTY ol lrltl l]I.ljs
In Rc C8ABI
ct.a fo. {1575
PltlIfI, DtCilB PIT8SU}!tT TO
r.R.c.P, 5a(b) toa
Ftm Judclel Dlttht
County ldrho
Irtcr nlght 95-0t130
llNrl lilD IDDR!S8:tnoY Bo??lrrn rtrlt conP
710 r DfI.Til rV! STE ,,
COEITB D lr,ElE. rO 83815 By crfi
SOTIRCE:
QUII*IITi:
CNOI'E TAlTEf,
0.53 Crs141.70 AtY
night Io.. t5-2117 .$d 95-3130 18. Ilnit.d to r totrl cooblrcd.uual dlvrlrloo volurc of 1a1.? Itr.
Pi,IOR,ITI DIEE:
POMT Ol DIVBRSfONT
PUnPOgl tttD
PEIIOD OF USBr
oel26/198L
r3ar noat s36 8l8B lltblB Xoot.nel Cou[ty
PIre808E Or g8a PNIOD OI UsE
01-01 lo 12-31
QUrlTTITY0.53 Cts
tr{1.70 trr
xualcipd
PIICE OF USB:
Pla€r of uer 1r ultbia tha sarelcc arc! of troy Bofl8ta iatcrCorporati@ aa prorldrd for undar Idrro ley.
o?ltE Enor,llsror8 flclasrBt rtoR Dllrl[rrrof, on. rDilrrrarRATrotl or ?ars rtaEn Et6Ht:
tars PIFTIAL DICRtt I8 ggtlEgr 80 sucH clttrRrrl gno\xrSloNs
I|BCBASTBY FOR t?8 DIAIBITIOU O! TII! Elgtrrs OE lOR rtl! ETTICIENTIDI{IrISINTTIOOT OF !!TIE rAT!?. BICETI rS t{AY 8E U!,TD{A?EIJ
DRTIEIIDTD !I TAI CIUT T? r POrf,T Itr IIIE ID IAIEI, THrr| Tf,EtUrBY oF t TUIIIJ Uf,ItI@ DBCIE!. I.C. gBqrrOll a2-1a12(51.
RU&A St (bl qtRrrtrfrrE
fltb arqrGct Eo tb! ll3u.a data'3llaad ry tha rboe. JudgBCEt or ord.r, it iB hcrcby CBRfIfrlD, in accotatance,iEb [ul. r{{b), I.n.c.p.. thet rDa coqrt b.,d3tr'rtincal lbat tbelc it no juct i* tha .nrry of aflaal Judgnncat .ad thai tbc coult brr .ad docs h.leby dilect tbrt rbe !bov.bc a flDalJudguGotupoo uhieh .xasuEloa nay Laaue a3d ra app.rl aey bc tr*aE as providrd by l.ta nulcr
Irlc it. rlldn..u
Plaiiditrg Oudge o! the
Co€ur dtAlasc-gpokuc lll?ar ldJudlcrtlon
cSnBA -PrIIIA! Dten8r PtRgmrsr 80 I.E.C.r. 5a(b'Prgc 1
Ju!- 1 9 -2019ATTACHMENT C TO APPLICATION
GEM STATE WATER COMPANY
Page2 ol2
Nov - s ?019
rrter eiEhr 95-0!t3O