Great. Alright. It is, well let me check with Robin. Robin, are we ready to go? I am ready to go. Super. Alright. So it is 10:05. Let's go ahead and go on the record. Good morning everyone. This is the time set for the evidentiary hearing in the matter of the application of Monte Vista Water Company LLC for approval of a rate increase. Docket number W02703A250189. I'm Administrative Law Judge Chris Nichols and I have been assigned to preside over this
this matter. I will now take appearances of the parties beginning with Monte Vista Water Company LLC. And, miss Holyfield, you're here today on behalf of Monte Vista Water Company LLC? Yes. I am. Okay. Is there anyone else here today, on behalf of the company? No. Okay. Thank you. And for staff. Good morning, your honor. I'm Robert Ridenour for staff. Also with me is Theresa Hunsicker, Sierra Gobert, and Britton Baxter. Good morning all. Alright. I scheduled this hearing because the staff report, raised some issues about the company's operations and I just wanted to try to develop
the evidentiary record on those issues as best I can. Ms. Holyfield, does the company have a witness available today? I'm guessing it would be you to testify regarding the issues in the procedural order such as the the bank activity and sales taxes? Yes. Alright. Me. Thank you. And mister Ridenour, I trust that, staff have someone available to testify on those issues as well? Yes, your honor. So Mr. Ridenour, in addition to the issues mentioned in the procedural order, I did have just a few questions pertaining to revenue requirement and rate design.
I certainly wouldn't fault staff for not having someone available this morning since that was not addressed in the procedural order, But if there were someone available, I think that would be, helpful just to field a couple of questions. We have someone generally available, your honor. Thank you. Alright. Well, let's start with the issues noticed in the procedural order and then we'll get to the revenue requirement and rate design questions in due course. Alright, so we can now move on to opening statements since we won't be taking public comment this morning. So,
Ms. Holyfield, this is the opportunity for the company to make a statement on the record about, the application or anything pertaining to the application. It's not evidence. But if there's anything that you'd like to say that you think would be helpful in terms of the commission considering the application or in terms of, you know, considering the testimony that you'll provide today. You have an opportunity to to provide that information at this time. Would you like to say anything? I have nothing to say about it. Alright. Thank you. Mr. Ridenour, would staff like to make an opening statement?
Just briefly, your honor. Just like to say that, we've been through this sounds a little loud. And basically, provided that Monte Vista is willing to go along with the recommendations in this, we don't think there will be any issues in this. We did notice some discrepancies with the way it was being handled in the past, and we think we can work through these. And we will go through these through our regular testimony. Thank you. Alright. So, we will move on to taking some testimonies. So, miss Holyfield, as I said, I I scheduled this hearing because I do have some questions to ask. But, if you'd like to provide any testimony that you'd like,
regarding the company's rate application, you're welcome to do so at this time. And Any testimony that you provide right now would actually be considered as evidence in this proceeding. Again, I just wanted to give you an opportunity to provide any testimony that you'd like the commission to consider in this matter before I start asking questions about the issues addressed in the procedural order? No. I have read the paperwork and there's nothing I'd like to address. Thank you. Alright. So, miss, right now, is the is the company a member managed or a manager managed LLC,
if you know? Member managed. And who are the members of the company? The members? Yes, ma'am. Is that what you asked me? Do you want their names? Yes, please. Okay. Robert Klein. They're all family members. Robert Klein, Susan Susan Klein, David Klein, Mike Klein, Cindy Stroeney, hyphen Mooney, m o o n e y. Sir, could you say the the first name for, Mooney? Cindy. Cindy. Cindy Mooney? Yes. Alright. Is that c I n d I or c I n d y?
C I n d y. And Klein is k l e I n? No. C l I n e. Alright. And these are all members of of record? Yes. They are. Your honor, did you want miss Holyfield sworn in? Thank you, Robin. Yes. Thank you. Miss Holyfield, can you please raise your right hand? You just saw me state the testimony you are about to give in this proceeding. Shall be the truth, the whole truth, and nothing but the truth, so help you god? Yes. Alright. So it looks like I got a little ahead of myself again. So, miss, miss Holyfield, I'll ask you those questions again.
Could you please just repeat the names of all of the members of the company? Robert Klein, Susan Klein, David Klein, Mike Klein, and Cynthia Stoyanoff hyphen Mooney, m o o n e y. Could you please spell Stoyanoff? Sorry. I didn't mean to turn this into a spelling bee. I can't tell you. She doesn't go by Stoyanoff anymore, but it was originally on the paperwork. She goes by Moony now. Understood. If you know, do any of the other members that you just identified have any,
education or experience that, you think are relevant or helpful when it comes to operating a utility company? No. They don't even live around here. Do you know if around the area. Do you know if anyone has an engineering degree or an accounting degree or anything that that might be helpful when it comes to operating a utility company? No. No. They do not. Do you know what the other members do for a living? Robert is retired. Mike is retired. Susan works for the clerk of the court,
the superior court in Pima County. David works for electrical company. I don't know what the name of the company is. And what about Cindy? She's retired. Do you know what, Robert or Mike or Cindy did when they, were working before they retired? Robert worked construction for RDI. Mike worked for the city of Sierra Vista, and then he worked contracts for, like, on Fort Huachuca when they have contracts. He worked for the government. Cindy
worked for a big it's like Raytheon, but it isn't Raytheon, and it was in Louisiana. Do you happen to know what David does at the, electric company? What he does? He works for well, he just does all kinds of miscellaneous work. He isn't he is not a licensed electrician, but he works for the company on wherever they need him. I don't know what exactly he does. Miss Holyfield, how about yourself? Do you have, any education or or experience that you think is is relevant or helpful when it
comes to operating a utility company? I do the best I can. I'm a bail bondsman. Understood. So how did you all come to, own and operate a utility company? My aunt was my aunt married the man that had originally started the company, and then he passed away. And then she had it. And then she passed away, and then we inherited it. Does the company have a a certified operator that it pays to make sure that the the system is operating properly?
Yes. Who is the certified operator? Paul j u I don't have his number with me. Paul, j u j u it's Tiara Waters company. It's out of Tucson. Okay. Do you j I Paul, j u e l j u e l, Paul. Okay. But it's t r o water. And I don't know if it's a corporation or an LLC. Alright. Thank you, miss Holyfield for the background. And and just a reminder, I I do see you turning around, so I just wanna make sure you're not communicating with anybody else while you're testifying.
No. I was looking to see if I had his exact paperwork Great. Over on the table, but I don't. Alright. So I wanna move on to some specific questions that I had based on, the issues raised in the staff report. So, miss Holyfield, you're aware that the staff report states that the company has ongoing bank account issues with fraudulent activity on one of its accounts? It did have. It doesn't have any more. That account is closed. Okay. Can you speak to the, the issues with respect to that account?
Somebody kept hacking it, and I kept going into the bank manager and talking to her. And she'd tell me to call the fraud department. I'd call the fraud department, and they'd send me back into Wells Fargo to the bank manager. And she'd tell me that I had to deal with the fraud department. And it was just it hap it kept happening, and it was the same they kept hacking into the company. I can't they would never they told me they weren't allowed to tell me who it was.
It was like a credit card. It was Credit One, and then there was a check that was washed, that was presented to a check cash in place in Tucson, and they don't give you any information. I took took it to the local sheriff's office because we're in the county, and they said that they'd handle it. But they don't tell you who did it, and then they never did. They refund they reversed some of the charges,
but they never reversed all the charges. And the bank manager is no longer with the bank. Thank you, miss Holyfield. There was quite a bit of information there, so I'm gonna try to unpack it a little bit at a time. So the bank account at issue, I heard you mentioned a credit card. Is the bank account there was the issue, is that a credit account or a or a a deposit account? No. It's a deposit account, but what they were hacking in and what was coming out was on our bank statements would say Credit One payment,
and it was not our account. It was not our credit card. It had nothing to do with us. We don't we never even had a Credit One account or a bank card for Credit One. I see. So it sounds like you're saying that, it appears that someone was, using the bank account to make payments on their own credit card without your authorization? Yes. Nobody was authorizing it. Alright. That account, was it Wells Fargo, you said? Yes. Who was that account in the name of? Monte Vista Water Company, LLC.
And, who are the, authorized signers on that account? Myself and Alfredo Rubio that was our park manager at the time who is now in a who is now in a hospital. Alright. Is there a reason that, mister Rubio was, an authorized signer on the account if he's not a member? The bank said we needed to have two people on there that were operating the water company, which I don't believe was right, but that's what the bank told us. And I or bank manager told us,
and that's why he was on it so he could take care of any kind of operating expenses and that because I'm not home all the time to sign checks and things like that. I'm I work in two or three counties, and I'm not there all the time. Alright. You said, this bank account has since been closed? Yes. And, I believe you mentioned that some, at least partial reimbursement, was received. Yes. Because I kept calling into the well, I would kept going in. I think it was four times I went into the bank and talked to the
bank manager, and she said that if she couldn't help me, that I had to call the fraud department. I would call the fraud department, and they'd say that they had to research it. And then they'd research it, and they'd reimburse all the ones that were that I said were fraudulent acts, which they were. And then we'd go for two or three months, and then the same thing would happen again. And it was there was nothing I could do other than call the fraud department because there was nobody else that would handle
it. Alright. How many, fraudulent charges were there in this bank account? I think it was about eight, and I don't know I don't have the closed account with me to tell you how many were reimbursed. I do not have that with me. Do you recall what the time period was of when these fraudulent charges were occurring? They used at least let's see. 20 about '23 '19 or 2023. And then they wouldn't do we wouldn't have everything would be fine for a couple
months, and then they'd do it again. And I'd call in again to the fraud department, and they don't seem to they're not very helpful. Were all these fraudulent charges in 2023? No. There was some in '20 early twenty twenty four. Okay. When was the account closed? Believe it was October '24. I can't tell you the exact date. I didn't bring the old checkbook. And I think you mentioned that there was a check that was washed. Can you explain what you mean by that? That's what they told me.
Because some they called, in fact, on a Sunday afternoon from a banking from, like, a check taxing place in Tucson and asked if we had written this check. And I they told me it was to a feed store or something like that. And I told them, no. We didn't write that check. And they said, well, it was washed. And one of their you have I didn't know this, but you have to be a member of a check cashing
business to be able to cash checks. And the people and the person that took it in was a member, but they wouldn't tell you who it is. And they told me to call the local sheriff or the local law enforcement, which in our way, our area is the sheriff's department, which I did. I made a report on it. They said it was washed, meaning that they had somebody had got the check and changed the amount on it. But it was the check had been written for,
like, I don't know, $38 or something like that. And they had made it over $400, and they turned it in to try to cash it. Was this a check that was washed, was that, one of the eight fraudulent charges in 2023 and early twenty twenty four that you mentioned previously, or was this apart from that? Let me see about that. I think it was in '23. Yes. Okay. But they didn't cash the check. And I did make a report on it.
Were all of the fraudulent charges from the same deposit account? I'm not understanding your question, sir. Well, how many bank accounts, does the company maintain? We had three. But the the fraudulent charges were from the water account, just one account. Okay. Thank you. That that answers my question. And I think you testified that at the time the company had three bank accounts. How many bank accounts does the company currently have? Two. There hasn't been any fraudulent activity on either of those two accounts?
No. Is there anyone who is a signer on either of those two accounts who is not currently a member of the company? No. I'm the only signer on them. Alright. Does the company plan on taking any additional measures to prevent, similar issues going forward? I've done everything that the bank has requested. Like, if there's a check that's over a certain amount that they're supposed to text me or notify me. I've done all of what they suggested, and I haven't had any problem.
I you know? Unless it's a large check, like, for a septic with the water with the park account, and then I call and notify them that we are process that we are gonna ride over the limit to take care of whatever it is. One was a septic system and a leach field. Are any of the bank accounts, other than the fraudulent charges that you mentioned, are any of the bank accounts
being used now or have they ever been used for deposits or expenses other than those related to the operations of Monte Vista? No. Alright. So they've never been used for personal expenses or, personal income or anything like that? Only for no. Only for the expenses for the park, like the park manager's check. Nothing nothing above what we're supposed to use it for to pay for the park.
Okay. Can you explain what you mean by, paying for the the park and the park manager? We have a lady that takes care of the rent checks and that and she gets paid to write the receipts and take care of that. Okay. And she's being paid by Monte Vista Water Company? By Monte Vista Mobile Home Park. Okay. So this, this person who's being paid to collect rent checks, she's not being paid by Monte Vista Water Company. No. She's being paid by the I'm trying to I was gonna get my paperwork,
but she's being paid by the park. Okay. Maybe you can help clarify because I I thought I heard you testify that there was money coming out of the Monte Vista water account or accounts to pay this individual who who collects rent checks. Can you clarify that? No. There no. There is water coming out of the mobile home park account to pay her for the rent check for pay for the rent checks.
When she collects the rent checks and that and does the paper the receipts. Okay. So you said that, Monte Vista has two accounts, two bank accounts remaining. Correct? Right. Are those both accounts in the name of Monte Vista Water Company LLC? No. Okay. The mobile home Monte Vista Mobile Home Park. Is one of them and the other one is Monte Vista Water. Okay. So the the money that's going to pay this individual who collects rent checks is is coming out of the bank account associated with the mobile home park,
not the account associated with Monte Vista Water Company? That's correct. Thank you. Alright. Ms. Holyfield, I presume you're aware that, staff recommends that Monte Vista Water Company open a new bank account specifically for the use of its business operations going forward. Does the company have any objection to that recommendation? No. The only thing that I have been trying to work on was I was gonna I went into the National Bank. We only have one bank in Douglas, Arizona, and that's Wells Fargo.
We have two credit unions. I went into National Bank in BISB about opening a new account because I knew that they wanted me to open an account for strictly for the water company. And I just got the paperwork with that, but I didn't have any information. Other than that, I just went in and asked about opening an account there because we have no other banks in Douglas. Okay. But the company has no objection to staff's recommendation that a a new account be
opened? No. We have no objection. Alright. So the staff report also notes that the company did not pay its 2024 sales taxes. Is that correct? That is correct. Can you, provide some information as to why the 2024 sales taxes weren't paid? Sir, I cannot. It's my fault that they did not get paid, and I should have been on top of it, and I wasn't. It's my fault. Alright. I just wanted to clarify whether it was an issue of, just a mere oversight versus a lack of having funds to actually pay those sales
taxes. Yeah. It was an oversight. Thank you. It wasn't. When does the company plan to pay the 2024 sales taxes? I have to get the exact amount and call the Department of Revenue so that I can send in the sales tax. We have the money to be able to do it. I just have to take care of it. Okay. Do you have a a plan as to when you intend to do that? I'm trying to get everything done this month. I'm trying very hard. I've been I've been having some medical
issues that has sort of put a little bit of it's made me a little bit slower. Understood. Do you know when, the company's 2025 sales taxes will be due? I do not know till I make the phone call and find out. I cannot tell you. Okay. Do you anticipate that the company will be able to pay its 2025 sales taxes when they become due? Yes. We will. As far as you know, is the company delinquent on any other tax obligations right now, such as property taxes or income tax?
No. They've all been paid. Alright. I do want to hit just another point or two before I, head over to, to to staff's table. According to the staff report, Monte Vista has not been charging the rates that were authorized by the Commission. I believe according to the staff report, the company has been charging a flat rate of $15 per customer along with a surcharge, part of which is no longer authorized. Does that sound correct to you? That's what I understand. I did not know that, but I do understand that after reading the report. Yes.
Okay. Who's responsible for deciding what the rates are that are charged to customers of Buena Vista? I thought that's what this report the company was giving us the information so we know what to charge. I that's what I thought. I'm sorry if I don't understand. I'll I'll try to ask my question a little more clearly. Who at Monte Vista is responsible for deciding, Hey, we're going to charge customers $15 we're just going to charge customers a flat $15
rate as opposed to a $20 flat rate or a $10 flat rate or the rates that were authorized by the commission. Who, who at Monte Vista is responsible for for making those decisions? It will be whatever the whatever the ACC sets the rate at, and that's what we'll charge. Alright. So, so this is a a a rate case in which the commission will issue a decision about what rates are authorized going forward, but right now the company is charging a $15 flat rate along with a surcharge.
Correct? Yes. Okay. Why is the company charging $15 along with a surcharge as opposed to some other amount? Sir, I do not know I do not have an answer for you on that. I do not know why when Alfredo Rubio was managing the company, that was the rate that he told me we were supposed to charge. Now he talked to someone that came down from, I believe, ADQ or ACC. I don't know.
I can't tell you because I he isn't capable of telling me. He He he had an accident, and, mentally, he has mental problems. I can't tell you that. And that was the rate, I believe, even before he was there, but that was Harvey Allen that was handling that. And he's deceased. I can't I have no answer because I don't know. Okay. Has the as far as you know, has the company been charging the the $15 flat rate with the surcharge as as far back
as you can remember? As far back as I am knowledgeable of? Yes. When did you become involved with the company? My aunt in let's see. My aunt passed away in '91, and then I did not move down there or have anything to do with it. She had another on-site manager, Aura Douglas, and he handled it for her. I wasn't part of it at all. And he handled it for her, and then he passed away, and then she passed away.
And I moved down there in 1996, and then I hired Alfredo Rubio in '97, and that's when I became involved. But we we formed the company. The attorney that we had, Martin Ryan, is the one that formed the company for us. And that was when my aunt passed away in '91. Okay. Do you recall the company ever changing the rates that it was charging company or was charging customers?
I don't know. I can't to my knowledge, I I didn't even know that it wasn't done right and that it wasn't a rate case and it wasn't done properly. I never even knew that. So all this came up when we started to get the rate in requested the rate increase. And that's when I found out that nothing had been done since the seventies that was done properly. I didn't know this. I was not even involved. I wasn't even around then.
Okay. Miss Holyfield, I think that's all the questions I have for you today. I I really appreciate you being here and and fielding these questions. As I said, we're just trying to develop the the most thorough record that we can for the commission to issue a decision in this matter. Thank you very much. Before I let you go, I do want to give staff an opportunity to ask you some, follow-up questions if they think there's anything, that might be helpful to get in terms of testimony. Mister Ridenour, any cross for miss Holyfield? Thank you, your honor. I do have just a couple of questions. I think you took care of just about everything I had,
but I do have a couple others. Miss Holyfield, I wanna go back to the to the bank accounts. You say that there's one bank account for the water company and one for the, trailer park. Is that correct? Yes. The one for the water company, is it used exclusively for the water company and no other money goes in or out of that? Yes. Okay. Thank you. Okay. You you said that and I'm gonna jump around here, but and I apologize for that, but that's just the way my notes are written now. You say that you hired mister Rubio, I believe, in 1997. When did he, stop working for you?
In He had a bad accident, a bad traffic accident in, I believe, September '24. It might have been early twenty five. I can't tell you exactly. I'd have to I can look at the checkbook if you want me to and see when he was offered. No. That's fine. Just roughly a year, maybe a little more than a year ago then. No. Okay. On the on the past due taxes, the sales taxes, do you file are the taxes filed annually, just once a year? Yes. Okay. And also on the sales taxes,
Do you know if you were collecting the taxes as a line item on the bills, or was this something that you paid out of your own funds each year? No. It would have been paid out of the our funds or the company funds, not my funds. You were not there was no special line there was no special billing to the customers, though, for sales taxes, or was there? I thought it was on the water company bill. Is that what you're asking me? Yeah. That's what I'm asking. I just didn't know if if you put a line item on the bill to
the customers for sales tax. There's a line. Yeah. There's an item on the bill. Okay. Thank you. Actually and also, I guess, the final question in the staff report, it also is making a note that you need to add a meter at the well to check for any losses. Is do you have think you'll have any problem getting that installed? No. Okay. I don't have any other questions at this time, your honor. Thank you. Thank you, mister Ridenhauer. I also do not have any follow-up questions. So, miss Holyfield, thank you very much for your testimony. That will be all the questions that we have for you today,
in terms of eliciting testimony. But this this hearing is going to continue because staff is going to present at least one witness for purposes of answering some questions on these issues. I would encourage you to stick around, and and participate. Okay. So with that said, miss Holyfield, I know you said that, there was not there was not anyone else here on behalf of the company today, but, since it's it's currently the company's case right now, I just did want to give you an opportunity in case, there was anyone from the company that you would like to call as a witness
today and have answer questions as part of this proceeding. Is that something you'd like to do? No. I don't have nobody else with me. Okay. Alright. So with that, the the company rests its case, as it were? There's nothing else the the company would like to add, miss Holyfield? No. Alright. Thank you. Alright. Mister Ridenour. Thank you, your honor. Staff would like to call Theresa Hunsaker to the stand. You just only state the testimony you're about to give in this proceeding shall be the truth, the whole truth, and nothing but the truth, so help you God. I do.
Welcome. Good morning. Good morning. Can you please, state and spell your name for the record? Teresa Hunsaker, T E R E S A K E R. Hunsaker, H U N S a k e r. And where are you employed? With the utilities division at the Arizona Corporation Commission. And and what is their address? 1200 West Washington, Phoenix, Arizona. I just wanna make sure is she getting picked up through the microphone? I could I'm hearing it, but I don't know if I'm just hearing it from the room. Robin, are you able to hear miss Hunsaker? Yes. Okay. Thank you.
And, what is your position with the department or with the commission? Public utilities manager. And what what duties does that take take you have you doing? Examining, analyzing applications, rate applications, financing applications, other type of applications, as well as performing the analysis, statistical review, commission analysts as well and review their staff reports and testimony. And have you seen the staff report in this case? Yes. I reviewed it. Do you have a copy of that in front of you right now? Yes. I do. What was your role in the preparation of this document?
I would have reviewed the application as well as reviewed the staff report when written. Okay. You you didn't personally prepare it? No. Okay. But the person who prepared it is no longer employed here, so you so this today falls upon you. Is that correct? Yes. It does. Okay. With that being said, do you adopt the testimony of the staff report as part of your sworn testimony here today? Yes. I do. With that, your honor, I'd request to admission of exhibit s one for as it'd be admitted. Miss Holyfield, would you have any objection to the staff report,
as as identified as exhibit s one being, admitted to the record as an exhibit or admitted to evidence? No. I don't. Exhibit s one is hereby admitted. Thank you. Miss Suntacker, do you have any concerns with the way, Monte Vista Water Company has been operating since the last time it appeared before the commission. I think that the the testimony provided, today kinda gives clarifying points, with respect to the fraudulent bank activity, the company's position on, making amends with, what's going on with the sales tax,
getting a new meter, creating a different bank account that, you know, to kind of alleviate, some of the situations that are ongoing. I think that overall, that the company is making strides towards trying to properly run the company. I think the only thing I would note is it's probably it's not in the staff report, but, I think there needs to be kind of a succession plan. I I don't I didn't hear any mention of a succession plan, going on, but that would be the only thing. And it's not noted in the staff report, but I would note that after after listening to the owner,
discuss what's going on ongoing with the company as it is today. And that makes sense, I think, with the history of the company also. I would agree with that. Basically, if the if the company were to accept all of the recommendations in your staff report or in the the admitted staff report, and fulfill those obligations, would you be satisfied with their operations? Yes. Okay. If the staff report is is accepted, do you think it would the outcome would be fair and equitable in this case? Yes. I do. If the company were to ever have any questions on its operations,
would staff be available to answer any of those questions at any time in the future? Yes, of course. Okay. And with that, your Honor, I will make miss Suntaker available for cross examination. Thank you, mister Ridenour. Good morning, miss Suntaker. Morning. So as I mentioned earlier, I do have a few questions on the revenue requirement and cash flows and so forth. Would you feel comfortable answering those questions today? Yes. Alright. If I could turn your attention to exhibit s one, at page three. Within the testimony or within the schedules? The testimony. Okay.
Okay. And if you could turn to the section titled, revenue requirement. Okay. And the staff is recommending a revenue requirement of $19,000. Is that correct? Correct. And that was based on a debt service coverage ratio or DSC of 3.16? Correct. Can you provide any, background or any, information as to, why the the DSC should be used as a target as opposed some other metric? I wouldn't say that it was driven by that as being a target. That's just the outcome of the overall recommendations. Originally,
the company's proposals was having the company operating a loss. And based on the review of the company's application and the arsenic issues ongoing that we, as staff, propose the ERRF for repair funds to, properly, obtain enough funds to replace the media as ongoing as well as the meter on the wellhead. So there's ongoing funds that need to be provided in order to properly operate the company. They've been continuing to operate at a loss. So in a in a case like this,
a smaller water company without a whole lot of customers, how does staff typically go about determining what an appropriate revenue requirement would be? Is it based on return on rate base? Is it based on cash flows? In this case, it was more driven by looking at an operating margin with respect to what it would what it would it take to operate the company properly. If you look at the b BC Schedule one, there was an overall 8.75% operating margin for the company based on the revenues of 19,000.
That's below, you know, what you'd see other companies. It was enough to continue to operate properly as well as gain the funds to do repairs and maintenance as well as replace the media as needed. Alright. And you touched on this already, but, I just wanna clarify. So, as I read the staff report, it looks like this would generate, an annual cash availability of $6,363? Correct. As shown on DC six. And staff believes that the $6,363 would be, will be sufficient to cover the sort of contingencies that a small company like Monte
Vista, might encounter during the year? Well, the operative word is you you would hope, but, you know, emergencies do happen and they could have, you know, some major repairs and then they may need to come in, sooner than what was staff recommended at five years. So Alright. I do have just a couple questions about rate design. Are you familiar with the term crossovers when it comes to rate design? Is that with respect to the difference between the meter sizes or k. Gotcha. So is it your understanding that a a a quote crossover exists when at a given usage the bill for a larger meter would be lower than the bill for
a smaller meter? That yes. Are you aware of any crossovers created by the rate design recommended by staff? Not seeing that with respect to some of the calculations. Not seeing that on Are you speaking with respect to the EERF? Are you speaking with the overall rate design? Overall rate design Let me get the schedule. So I see a rate in in an upward direction on a five eighths and three quarter inch meter recommended at thirty four eighty five and a three quarter inch meter at
fifty two twenty eight and then ongoing in an upward direction all the way to a six inch meter. Okay. If if there were any crossovers that were created by the rate design, would staff be in favor of adjusting the rate design slightly to eliminate crossovers? Or is that something Thing that just isn't, a big concern for staff. Certainly, that would be at the discretion of the judge to make those type of recommendations and at such if they were inclined to do so. Do staff try to avoid crossovers? If at all possible.
And why is that? You would you would look at the volumetric, like, the volumes coming through a meter, and you would do it in at a with a multiplier to incline the rates to be higher for larger meter sizes. Not to crossover that a little smaller meter, you know, was somehow doing a creating a crossover. Is there any reason why crossovers are undesirable and and should try to be avoided? Yes. I'm I'm inclined to try to find out exactly if there is one, and if there is one, try to avoid that. But if the judge is inclined to say that there is a crossover,
I'd like to understand why. Okay. Is is there a reason that staff typically tries to avoid crossovers? Are they inequitable for customers? Well, you would want a customer to respectively pay for their meter sizes and their volumetric. And, you know, it may if there's a number of commercial customers, if they're using larger volumes, you know, maybe they need to be set to a rate at a lot harder volumetric with a higher volumetric rate. So Alright. As for the, the bank accounts and the fraudulent activity,
I I understand that you're picking this case up. Do you have any knowledge as to how staff became aware of the issues with the bank accounts? That was in the application. It was actually stated in the application, that they had been involved in some fraudulent activities. But based on the testimony, she had, you know, she had contacted the bank and did the best she could to try to resolve those issues. K. So, I guess what I was trying to get out was how staff became aware of the issue. Was it in response to a data request or some other way? Physically in the application.
It's part of the disclosures at the beginning of the application. Okay. Thank you. Did not hide it. They disclosed that there was issues going on. On. And if you know, what sort of investigation did staff perform after those issues were were raised? Well, we reviewed the general ledger and anything ongoing and had discussions with the owners, and was there anything that staff learned in its investigation apart from, what's already provided in the application and the staff report and, what, what miss Holyfield testified to today that you you think is relevant?
No. Based on miss Holyfield's testimony today, does staff believe that the company has the ability to manage its finances, going forward as long as staff's recommendations are adopted? Yes. Staff does. Alright. Thank you, miss Hunsaker. That's all the questions I have. I do wanna give, miss Holyfield an opportunity to to ask miss Hunsaker any questions she has, if any. I don't have any different questions. Thank you, Ms. Holyfield. Mr. Ridenour? No further questions, your honor. Alright. Thank you, Ms. Huntsaker. That's all we have. You're excused. All right. I think that's
all the questions I have for any witness. Mr. Ridenour, would staff like to call any other witnesses to provide any additional testimony today? No, we would not, your honor. All right. So with the with the taking of testimony concluded, miss miss Holyfield, would the company like to make a closing statement? Is there anything you'd like to add in light of of the testimony that's been provided today? No. Other than, like I said, I'll do my best to get everything in order the way it's supposed to be. Thank you, miss Holyfield. Mister Reitenauer,
would, would staff like to make a closing statement? Just briefly, your honor, we would like to thank miss Holyfield for being cooperative with this, entire process. And we feel that provided that she is available or capable and ready to go along with the staff recommendations, and if that's what you approve, we would recommend that, this case be processed that way. And with that, we are we have nothing else, your honor. Thank you, mister Ridenour. Alright. Looks like our only exhibit has been admitted. Any procedural issues that we need to address before we conclude the hearing,
miss Holyfield? Yeah. Mister Ridenour? No. I'm not. Thank you, Ms. Holyfield. Mr. Ridenour? No, your honor. Alright. Great. Alright. Well, thank you all for being here this morning. Thank you for participating and helping to answer the questions that I had so we can develop the record. And with that, this hearing is adjourned. We can go off the record. Thank you.