SPIRIT LAKE EAST WATER COMPANY

OCTOBER 2016

HOW DOES SLEWCO RATE?

Spirit Lake East Water Company is one of many water districts in the area. Check out how the rates, volume, and service connections compare.

Q: How are rates established? A: Rate establishment varies by district. Spirit Lake East water district rates are set by the Idaho Public Utilities Commission (IPUC) based on the cost to run the system and promotion of water conservation. Our most recent rate change occurred November 2013.

Q: What do payments go towards? A: The top five expenses are 1) electricity used to pump water from the ground and delivery, 2) infrastructure maintenance (repairs, maintenance, blow offs, etc.), 3) mechanical equipment, 4) testing and regulatory fees, and 5) administrative duties (to include, but not limited to, customer service, billing, delinquent accounts, account ownership changes, and Department of Environmental Quality (DEQ) and IPUC compliance).

“A (Fire Flow System Upgrade) project of this magnitude requires homeowner & customer request…” – Leslie Abrams, Manager pg5

GETTING TO KNOW YOUR WATER SYSTEM

Spirit Lake East Water Company is a privately owned, for profit, public water system; operating since late 1978 and currently serves over 300 homes in Kootenai and Bonner Counties. The water system consists of one 100 HP well. It is approximately 660 feet deep and is fed by the Rathdrum Aquifer. The concrete reservoir has a capacity of 200,000 gallons. Your individual meter can process 100 gallons per minute (approx. 0.13 CCF).

Many upgrades have been made to the water system, including a new metal structure erected to protect the water reservoir, and a new 175kw generator capable of running the entire facility in the event of a power outage.

All paper, email and phone communications are documented. The phone system records all incoming and outbound bound calls. In the event of office staff assisting other customers, or after-hours messages, please remember to include your name, account number (or physical address) and concern for prompt call back and resolution.

RATES AND NON-RECURRING CHARGES

The IPUC approved rate is as follows:  $2.33 for each 1,000 additional gallons over 8,000 gallons for customers with usage  $25.55 minimum monthly charge; no measured in gallons. additional charge for usage of 8,000 gallons/10.7 CCF or less per month.  $1.74 for each 1.0 CCF over 10.7 CCF for (48,000 gallons or 64.2 CCF) on the first bill issued customers with usage measured in cubic feet. after a meter reading is taken. (CCF = 100 cubic feet; 1 CCF = 748 gallons) Hook-up Fee (New Service) - $2,500.00 per each new Meter readings are done at the end of each month, customer hook-up. except when conditions make the meter inaccessible. Late Payment Charge – one (1%) percent monthly In the event the Company cannot read a customer’s applicable to the unpaid balance after the due date. Reconnection Fee for accounts closed thirty (30) days meter for a billing period, the customer will only be or less billed the minimum monthly charge as set forth Requested during business hours - $16.00 above. The Company aggregates the 8,000 Requested for other than normal business hours - gallon/10.7 CCF monthly allowance for each month $32.00 that no meter reading is taken and bills for all usage Reconnection fees for accounts closed longer than exceeding the total aggregated allowance on the next thirty (30) days bill issued after a meter reading is taken. Requested during business hours - $52.00 Requested for other than normal business hours - Example: If the customer has used more than the $65.00 monthly allowance over a six (6) month winter period Returned Check Fee for each customer check returned to the Company for non-sufficient funds - when no meters can be read, he or she will be billed for $20.00. usage exceeding the aggregated monthly allowance DISTRICT RATE COMPARRISONS The average monthly usage in the Spirit Lake East Water District is 14,850 gallons/19.85CCF, billable as $41.51. Other districts may allow more, less, or no volume in the minimum monthly billing. Per publicly available rates the following districts would bill the same volume as follows: METER SET COST COMPARRISON

***Other districts bill for account changes, delinquent notices, meter re-reads, backflow non- compliance, and late fees up to $10.00.*** BILLING AND PAYMENT OPTIONS

Billing is available through postcard statements Payments may be received by check, money order, delivered by USPS or electronically to your email; both through the PayPal Network (online via have the same issuance and due dates. www.slewco.com), or scheduled through the Office.

Electronic Statements contain a link directly to the website for your convenience. If you would like to change your billing method please email account. It is the account holder’s responsibility to [email protected] with your request. consider this when sending payments. Rates and fees apply per the billing schedule. Bank Bill Pay may take 7-10 business days to reach our office after the financial institution has debited your Payments received are applied prior to any charges.

TERMINATION RULES

SUMMARY OF RULES AND REGULATIONS OF THE IDAHO authorization or knowledge of the utility. PUBLIC UTILITIES COMMISSION GOVERNING CUSTOMER 4. The utility has made a diligent attempt to notify the RELATIONS OF NATURAL GAS, ELECTRIC AND WATER customer of termination, but has been unable to make PUBLIC UTILITIES contact. NOTIFICATION A utility may terminate service to a customer without 1. A billing may be considered past due fifteen (15) days his/her permission after adequate notice for the after the billing date. A written notice of termination following reasons: must be mailed at least seven (7) days before the 1. Failure to pay an undisputed past bill, or when proposed termination date. payment is made with a written check or electronic 2. At least twenty-four (24) hours before the service is payment drawn on an account with insufficient funds, terminated, another attempt shall be made to contact the 2. Failure to make security deposit where it is required. customer. 3. Failure to abide by terms of a payment arrangement. 3. If service is not terminated within twenty-one (21) 4. Customer or applicant misrepresented their identity calendar days after the proposed termination date, for the purpose of obtaining utility service. another seven (7) day and twenty-four (24) hour notice is 5. Customer or applicant denies or prevented the required. utilities access to the meter. 4. No additional notice is required if upon receipt of a 6. Willful waste of service through improper equipment termination notice the customer makes a payment or otherwise. arrangement and fails to keep it, or when payment is 7. Customer or applicant is a minor not competent to made with a written check or electronic payment drawn contract as defined by Idaho Code. on an account with insufficient funds. 8. Customer or applicant owes money on an existing account or from a previous account for service provided WHEN TERMINATION IS NOT ALLOWED within the past four years. 1. The unpaid bill totals less than fifty dollars ($50) or two (2) months service, whichever is less. A utility may deny or terminate service without prior 2. The unpaid bill is for service to another customer. notice to the customer or applicant and without his/her 3. The unpaid bill results from the purchase of non- permission for one or more of the following reasons: utility goods or services. 1. A situation exists that is immediately dangerous to 4. Terminations are not allowed on Friday, Saturday or life, physical safety or property. Sunday, legal holidays recognized by the State of Idaho, 2. The utility is ordered to terminate service by any the day proceeding legal holidays, or at any time when court, the Commission or other duly authorized public the company is not open for business. authority. 3. The service obtained, diverted or used without the To The Residents Of The Spirit Lake East Water District,

Thank you for your continued support and many words of encouragement as this past year brought the water district several unforeseeable challenges. I’d like to share details of each situation, how Spirit Lake East Water Company has addressed them, and planning for the future. December 8, 2016 our generator had a radiator part failure. The part had been re-called without our notification. The failed part was replaced and the system was chlorinated and coliform bacteria tests collected after the chlorine was flushed. February 8th and 9th, 2016 our water system experienced a depressurization event due to loss of a major electrical component in the pump house. The system was chlorinated and coliform bacteria tests collected after the chlorine was flushed. April 13, 2016 the generator was unable to activate during power outage due to undetected electrical damages incurred from February. After bypassing the damage, the part was replaced during a scheduled water interruption on May 9th; system was chlorinated and coliform bacteria tests collected after the chlorine was flushed. Your health is important to us. Even well designed and operated water systems such as ours may experience pressure loss (depressurization events) from time to time. When a significant pressure loss occurs, there is a potential for back flow or cross connection contamination to occur in the water system’s distribution system, thus initiating an opportunity for contaminants to be drawn into the drinking water supply. We have done our best to limit this potential through the implementation of our cross-connection control program. While preventative measures through the Idaho Department of Environmental Quality’s (IDEQ) cross- connection/ backflow prevention requirement have been established, significantly diminishing probable contamination, it is not possible for any public drinking water system to completely rule out the potential for contamination during a depressurization event. The potential for the introduction of microbial and chemical contaminants into the water system may pose a special health risk for people with weakened immune systems (immuno-compromised persons), children and the elderly. If contamination occurred it may cause symptoms of nausea, vomiting, diarrhea, cramps, headaches, or other symptoms. If you are concerned about the potential for contamination due to a depressurization event, please consume bottled water if you notice a decrease in pressure at your tap. (Boiling your water may not be an effective method to ensure that you are protected from all potential contamination). In the event of depressurization, our certified water system operator will flush the system and/or provide disinfection. Upon completion, the system is tested for coliform bacteria. It takes 24 hours for the laboratory to run a test for coliform contamination. If test results indicate that coliform bacteria contamination has occurred, we will notify all water users. All current labs are posted on the website, www.slewco.com, and are available by request. At the request of the homeowners, during the 2013 rate case, the Idaho Public Utility Commissioners ordered a “Fire Flow Study” to evaluate the structural propensity in support of fire hydrants and water flow within the district. The pipeline would require upsizing of 57,765 lineal feet; in 6-inch, 8-inch, and/or 10-inch pipe and 54 hydrants. The reservoir would require an additional 23,750 gallon capacity with 50,000 gallon storage tank, upgrading two booster pumps, adding an additional booster pump, and an additional 500 gpm at 600 feet TDH at the source well. In conclusion, the majority of pipe, reservoir capacity, and booster pumps are undersized and would require upsizing to support the flow rate requirements. “The total estimated cost to bring the Spirit Lake East water system in compliance with the IDEQ standards is estimated at $5,833,700 (.00)” (Welch Comer & Associates, Inc. Spirit Lake East Water System Analysis. System Anaylsis, 2015). A copy of the study is available in the office for your convenience. A project of this magnitude requires homeowner & customer request and, due to the high financial capital costs, would be included in a rate case and executed in several phases. It is my pleasure to be of service to you. If you have further questions please send them to the office so I may give them my undivided attention.

Warmest regards,

Leslie Abrams, Manager

Spirit Lake East Water Company Fall/Winter Check Off List o Clear yard waste and growth 6’x6’ around meter. o Locate the water shut off valve on your house in the event of frozen pipes. Do NOT turn off the meter. The account holder is financially responsible for damages caused by anyone outside of water district employees. o Leave snow over the meter box. It is a natural insulation that prevents the meter from freezing. Keep house insulation and yard waste out of the meter boxes to prevent ice from forming on the meter.

Spring/Summer Check Off List o Clear yard waste and growth 6’x6’ around meter. Keep clear to assist field technicians in times of reading, assessment, or repair. o Schedule Backflow testing and turn in result before June 1, 2017 if you have an automatic sprinkler, animal watering system, and/or cistern. Non-compliant accounts may have interruptions in service. Standard rates apply. o Update any contact information that has changed in the past year. New phone numbers, email addresses, and expired credit cards used in autopay are common items in need of updating. If we do not have current information for your account, we may not be able to reach you in an emergency.