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waarro
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| Joined: | Wed Apr 23rd, 2008 |
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Posted: Wed Apr 23rd, 2008 10:17 pm |
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From: Ken Svee [kbsvee@yahoo.com]
Sent: Sunday, April 20, 2008 10:05 AM
To: gleason-web@azcc.gov; mayes-web@azcc.gov; mundell-web@azcc.gov; hatch-web@azcc.gov; pierce-web@azcc.gov
Subject: Docket #W-01303A-07-0209
Arizona Corporation Commission members,
It is my understanding that the Commission and Administrative Law Judge Jane Rodda will be holding a Open Meeting on May 6th 2008, on the above matter.
My schedule will not permit me to be in attendance at that time. I would, however, like to once again voice my strong opposition to the proposal.
My strong opposition is not opposed to fire life safety issues as my entire career was dealing with building and fire codes. However, with the current ISO rating of 4, I feel the fire life safety issue has not been justified.
I feel that the Corporation Commission is being asked to make a decision on a project and proposal without all the necessary and pertinent information. To authorize the Arizona-American Water Company to commence construction of the fire flow improvement and implement the Fire Flow Cost Recovery Mechanism without verifying some lacking information would be improper.
The Arizona-American company should be required to provide the Commission with the following information.
1. What is the present ISO rating and what will the rating be after completion of the project.?
2. If the rating will change, what will the ratepayer gain in insurance cost.?
3. What is the cost of construction , is it $5.1 million, $2.6 million, or what??
4. Who is going to do the construction? Is that company bonded and licensed??
5. Do you go out for competitive bidding???
6. Normally the cost of the project is what the awarded bid is and not based on a assumed or estimated amount. What is the contract amount?
In closing I feel that there are some very important questions to be answered before a decision to move on is made.
I would also like to proint out that in my experience, and anyone with knowledge in the construction industry knows, the difference between a estimated cost and the actual cost can be great at times. In this day and age, with rapidly cost of living increases, uncertain cost of material and labor, rising dilivery costs, etc. chances are that the actual cost of the project will be much greater than the estimates. Especially when the estimates are very uncertain and already outdated. A major reason why the project should be completed up front. Then talk about repayment. Why does Arizona-American feel that the ratepayers can afford to pay for this project and they can't??? Could it be because Arizona-American knows that their estimates are uncertain, not reliable, and definately outdated. Normal acceptable time for a estimate to be reliable would be 30 days but not during these economic times.,
Once again I will state that I find it sad that now all of a sudden the Fire Safety is an issue. How long has it been this way? Will it really improve the ISO rating , which by the way is a safety rating. It takes into account the water availability, water mains size, hydrants, water pressure, fire department equipment, fire personnel, training, budgets, codes, ordinances, management, and other items, just to mention a few.
In my way of thinking the item before you is like having the cart before the horse.
I say once you have your answers to the above critical issues, then you should consider the request and not until.
Wallace A Roholt
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