2001711_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
GENE FADNESS
DON HOWELL
RANDY LOBB
DAVE SCHUNKE
TONYA CLARK
BOB SMITH
MICHAEL FUSS
MARGE MAXWELL
BEVERLY BARKER
WORKING FILE

FROM: SCOTT WOODBURY

DATE: JULY 11, 2001

RE: CASE NO. HVW-W-01-1 (Happy Valley Water)
SALE OF WATER COMPANY

On June 4, 2001, the Idaho Public Utilities Commission (Commission) received a letter notice requesting a transfer of the Certificate of Public Convenience and Necessity for the Happy Valley Water System. Joseph and Donna Brammer are the current certificate holders. The new owner is Brett McCarty. Reference Idaho Code § 61-526; IDAPA 31.01.01.112. The Application sets forth the general terms of purchase and includes the qualifications of Mr. McCarty for ownership and management of the community water system.
The Happy Valley Water System is a public water utility providing water service to the following described existing service territory: an approximate 1/2 square mile area located approximately 3 miles west of U S Highway 95 in Kootenai County, Idaho, on the north side of Hayden Avenue between Huetter Road and Meyers Road, said area including all of the south half of Section 17, Township 51 North, Range 1 West, Boise-Meridian. Reference Idaho Code §§ 61-124, 61-129.
The Happy Valley Water System serves 25 residential customers on lots ranging in size from five (5) to ten (10) acres each. The Brammers operate and provide water service under Certificate of Public Convenience and Necessity No. 364. Reference Case No. HVW-W-99-1, Order No. 28183 issued October 19, 1999.
Under the terms of the negotiated exchange, the system has been sold to Brett McCarty for $10,000. Mr. McCarty resides adjacent to the subdivision within which the Happy Valley Water System provides service. Mr. McCarty’s mailing address is: 10035 North Memory Lane, Rathdrum, Idaho 83858. As reflected in the letter filing, Mr. McCarty possesses the following qualifications for ownership and management of the Happy Valley Water System:
1. Nationally certified water well driller, nationally certified pump installer, by the National Ground Water Association.

2. Licensed well drilling contractor and licensed drilling rig operator in both Washington and Idaho.

3. Licensed as a Specialty Electrical Contractor, and Specialty Plumbing Contractor and a licensed journeyman specialty electrician and journeyman specialty plumber in Idaho.

4. Certified in Spokane County for water sampling of public and private water systems.

5. Published author on ground water industry related topics.

6. President of the Idaho Ground Water Association.

7. Chairman of the Construction Rules Committee of the Idaho Ground Water Association.

8. Active member of the Government Affairs Committee of the National Ground Water Association.

9. Lobbyist for ground water related issues in Washington, D.C.

10. Public speaker on ground water education, electrical codes. (Guest speaker at the 1996 National Ground Water Association’s Annual Convention in Las Vegas, and many other speaking and teaching engagements for Idaho and Washington conferences)

11. President of McCarty Drilling & Pump, Inc. (a water well drilling and pump systems contractor, and water treatment contractor).

The proposed transfer of certificate is contingent on and subject to Commission approval.
On June 18, 2001, the Commission issued Notices of Application and Modified Procedure in Case No. HVW-W-01-1. Individual notice was provided to all customers of Happy Valley Water System. The deadline for filing written comments was July 6, 2001. The Commission Staff was the only party to file comments (attached). Staff notes that Mr. and Mrs. McCarty have already taken position of the water system and have initiated several improvements. The McCarty’s are not interconnected to the water system at this time. Their residence is, however, within the subdivision served by the water system. Staff believes that the McCarty’s are well qualified to operate the system. Staff notes that the McCartys purchased the assets of the water system but did not purchase the corporation or the corporate name. Staff recommends approval of the Application, cancellation of Certificate of Public Convenience and Necessity No. 364 and issuance of a new Certificate of Public Convenience and Necessity to the new corporation, yet to be named and incorporated by Brett and Nora McCarty.
Commission Decision
Does the Commission find it reasonable to cancel existing Certificate Public Convenience and Necessity No. 364 for the Happy Valley Water System and issue a new Certificate to a new corporation to be formed by Brett and Nora McCarty?

Scott D. Woodbury

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DECISION MEMORANDUM 3