CITY OF OAK HILL INCORPORATED 1925

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1 CITY OF OAK HILL INCORPORATED 1925 ~ridi of the Plateau February 13,2009 Christopher L. Howard Saff Attorney Legal Division WV Public Service Commission P.O. Box 812 Charleston, WV ! i -2 I Re: Case No S-C John Legg v. City of Oak Hill Dear Mr. Howard, Enclosed are responses #I, #2, #4 and #5 of a request by the Public Service Commission. Response #3 is forthcoming. William C. Hannabass Chairman, Oak Hill Sanitary Board Cc: Sandra Squire Y.u. %ox Oa6?-@ West Vir,inia ) Fax: 604)

2 CITY OF OAKHILL lncorporated 1925 ;Pride 4 the ;Plateau Case No S-C John Legg V. City of Oak Hill Request #1: Technical documentation showing that the existing package plant cannot serve one additional customer. Response Prepared by William C. Hannabass Oak Hill Sanitary Board Manager Persons who could testify regarding the response: William C. Hannabass - Oak Hill Sanitary Board John Tuggle, P.E. - Pentree, Inc. Ron Garrett - DEP Mark Via - Chief Operator Virginia Smith - Secretary, Oak Hill Sanitary Board Date of response - February 12,2009 Response: The ANSWER TO COMPLAINT signed January 2 1,2009 and forwarded to the Public Service Commission makes no mention of the inability to serve one additional customer. The issue is the inability to adequately serve one additional customer due to the age and deterioration of the package plant. Attached is a Facility Inspection Report performed by the Department of Environmental Protection on January 5,2009 which substantiates this inability. To adequately serve the 13 current customers it has been discussed (attached excerpt of Oak Hill Sanitary Board minutes, 1/21/09) to surcharge them for a main line extension that will cost approximately $500,000 (estimate attached, prepared by Pentree, Inc.) I am sure the current 13 customers would be receptive to Mr. Legg sharing service at the package plant and thus a possible surcharge in the near future. I am not sure that Mr. Legg would be receptive to sharing this cost or having to reveal this to a potential buyer of the property. William C. Hannabass Oak Hill Sanitary Board Manager T.O. Box Oa6 dil( West YirBinia o4) Fax: 604)

3 Rev. 01/00; 09/03 State of West Virginia Department of Environmental Protection Environmental Enforcement TimeIn -No. Time Out 14:20 County FAYETTE Facility Inspection Report Facility Name Location LOCHGELLY Permit No. WOO20284 Exp. Date 6/30/09 Design Flow.016 MGD Permittee CITY OF OAK HILL PH: Present Flow 7.2 GPM Address PO BOX 1248 OAK HILL, WV Weather 40's-Overcast-Fox NMunicipal Plant OPSD NPackage Plant =Ponds nother Evaluation codes: S - satisfactory; M-marginal;.%unsatisfactory; N/A-nod applicable; N/O-not observed; ND-not determined Discharge # 003 Flow PH ClZres DO Odor Marker Appearance Samples Photos Evaluation 7.2 gpm 6.7. < S S CLEAR - S Comments / Deficiencies: 1. EXCESSIVE I&I: SYSTEM HYDRAULICALLY SURGED DURING WET PERIODS. **WARkING!** You are hereby notified that the following remedial measures must be taken on or before: Official Representative: Mark Via Title Chief Operator Inspector Date Number of NOV's issued on this date: None:

4 Oak Hill Sanitary Board January 21,2009 (excerpt from 1/21/09 meeting) Fayette Plateau Industrial Park Sewer - researched the ownership of the property where the package plant is located. It has been established the Fayette Plateau Business Development Corporation is the owner but this company was dissolved. Attorney Michael Martin reviewed the dissolution papers and determined there is not a rightful owner. The ownership needs to be established before contacting Richard Lewis. Mr. Lewis will be for the treatment parameter issues. The Sanitary Board is the permit holder. Mr. Michael will need to check with PSC about before proceeding further and will leave the deed as it exists now. The NPDES permit application will need to be submitted before the end of the month. Chairman Hannabass will contact DEP about separating the Industrial Park from the original permit and try to obtain a separate permit on the plant. John Tuggle and Bill Hannabass will call Tom Michael to discuss the option of a surcharge or to give plant back to the tenants. John Legg - PSC complaint - John Legg sent a complaint letter to the PSC concerning tapping on to the Industrial Park package plant. He has not applied to the Sanitary Board for a tap onto city sewer. The complaint was sent Tom Michael for him to respond to the PSC. Mr. Hannabass will verify today if answer has been sent to PSC about the complaint.

5 Line 1 08:38:23 a.m Oak Hiif Sanitary Board Sewer Extension. fur industrial Park Sewer Pfant Decommissioning September l 7s 2008

6 CITY OF OAKHILL INCORPORATED 1925 Trich 4 the Tcateau Case No S-C John Legg V. City of Oak Hill Request #2: Moratorium, if any, imposed on the Utility that would prohibit further service connection Response Prepared by William C. Hannabass Oak Hill Sanitary Board Manager Persons who could testify regarding the response: William C. Hannabass - Oak Hill Sanitary Board Date of response - February 12,2009 Response: None Sincerelv. P William C. Hannabass Manager, Oak Hill Sanitary Board

7 CITY OF OAKHILL INCORPORATED 1925 Case No S-C John Legg V. City of Oak Hill Request #4: Copy of any city ordinances that would demonstrate that different classes of customers are treated differently or that some service is restricted in some areas to a specific class of customers Response Prepared by William C. Hannabass Oak Hill Sanitary Board Manager Persons who could testify regarding the response: William C. Hannabass - Oak Hill Sanitary Board Damita Johnson - C Date of response - February 12,2009 Response: Oak Hill Sanitary policy and City of Oak Hill ordinance attached. William C. Hannabass Manager, Oak Hill Sanitary Board 9.0. Box 1245 Oa6 l&( West Yir@nia (304) Fax: (304)

8 ~ S ~ A RBOARD Y OF THE crty OF OAKHLLL RESOLUTION LllLzITTNG SERVICE TO AREAS WIm CITY LIMITS. WHEREAS, the Sanitary Board of the City of Oak Hill has statutory jurisdiction for twenty miles outside the corporate limits of the City of Oak Hill, pursuant to West Virginia ,8-20-1, and 8-20-la; and WHEREAS, the Sanitary Board can authorize extensions of its sewer system as it may consider expedient, pursuant to West Virginia Code ; and WHEREAS, the Sanitary Board is under a public service obligation to extend its mains,. and its plant and facilities to serve new customers with its service area who may apply for service,-pursuant to 150CSB-5.5.a; and.., '..._ WHEREAS, the Public Service Commission of the State of West Virginia has ruled that,.- I -..-_. I as a genera1 proposition, a municipality cannot be compelled to serve consumers outside its limits, at least in the absence of a contract or of a course of conduct whereby the city has held itself out as a public utility in a particulap case. me Public Service Commission has no author& to require a public utdity to serve outside of its service territory. A municipality has the statutory authoritsf to serve areas within twenty miles of its borders. However, the authority is permissive. A municipality may serve and supply the area kchded within twenty miles outside its corporate limits with sewer services. There is no requirement to do so. Tvgart Valley Mall. Inc. v. City of Elldns Sewer System, Case No S-C (Rec. Dec. Dec. 22,1982; Commission Order AfErming Rec. Dee., March 29,1984); Hancock County PSD v. City of Weirton, Case No PSD-S-C (Rec. Dec. Oct. 28, 1992; Final Novo 17, 1992); Thomas L. and J. M&Iene Mm& v. Town of Chapman?IIe Sewer DeDartment, Case No S-C (Rec. Dec. Apr. 8, 2005; Final Apr. 28,2005); and

9 WHEREAS, the Sanitary Board of the City of Oak Hill does not have any contractual obligations to serve customers outside the corporate limits of the City of Oak Hill; and WHEM.AS, the Sanitary Board has not held itself out as a public sewer utility in areas outside the corporate limits of the City of Oak Hill; and WTBREAS, the Sanitq Board finds that it is not expedient to extend sewer sewice outside the carporate boundaries ofthe City of Oak Hill due to the resulting burden upon the citizens and rate payers of Oak Hill. b NOW, THEREFORE, BE IT RESOLVED as follows: - 1. The seryiceareziof &e.sanitary Board ofthe City is hereby defined to bedax, * area within the corporate boundaries of the City of Oak Hill. 2. Said service area wiil extend to areas added by annexation to the corporate boundaries of the City of Oak Hill. 3. It is the &.icy of the Sanitary Board of the City of Oak Hill to deny sewer service to areas outside its service area, that is, outside the corporate boundaries of the City of Oak

10 STATE OF WEST VIRGINIA COUNTY OF FAYETTE Subscribed and sworn before me this 3 $.ti day of ZLQYlQdd, 2009 by William C. Hannabass, Manager of the City of Oak Hill. My commission expires: /L;skd+JT 9hQ CERTIFICATE OF SERVICE I hereby certify that on January 21,2009, I served the foregoing Answer to Complaint on behalf of the City of Oak Hill upon the following by depositing a true copy thereof in the United States mail, postage prepaid, in an envelope addressed as follows: John Legg Elizabeth Street Oak Hill, WV Thomas R Michael P.O. Box 250 Lost Creek, West Virginia,

11 Sewer Service Area 1. The service area of the Sanitary Board of the City of Oak Hill is hereby defined to be any area within the corporate boundaries of the City of Oak Hill. 2. Said service area will extend to areas added by annexation to the corporate boundaries of the City of Oak Hill. 3. It is the policy of the Sanitary Board of the City of Oak Hill to deny sewer service to areas outside its service area, that is, outside the corporate boundaries of the City of Oak Hill. e - 1 st Reading October 13,2008 2"d Reading and Adoption November 10,2008 William Hannabass, Mayor

12 CITY OF OAK HILL INCORPORATED 1925 Trih of the Tlateau Case No S-C John Legg V. City of Oak Hill Request #5: Who owns and operates the package plant Response Prepared by William C. Hannabass Oak Hill Sanitary Board Manager Persons who could testify regarding the response: William C. Hannabass - Oak Hill Sanitary Board Thomas Michael - City Attorney -_- Date of response - February 12,2009 Response: The Oak Hill Sanitary board operates the package plant. The plant was last owned by the Fayette Plateau Economic Development Corporation. The Corporation is dissolved and there is no consideration of the package plant in the dissolution. William C. Hannabass Manager, Oak Hill Sanitary Board T.0. Box Oak T@ West Vir@nia ) Fax: 604)

13 January 21,2009 d Fayette Plateau Industrial Park Sewer - researched the ownership of the property where the package plant is located. It has been established the Fayette Plateau Business Development Corporation is the owner but this company was dissolved. Attorney Thomas Michael reviewed the dissolution papers and determined there is not a rightful owner. The ownership needs to be established before contacting Richard Lewis. Mr. Lewis will be for the treatment parameter issues. The Sanitary Board is the permit holder. Mr. Michael will need to check with PSC about placing a surcharge on customers before proceeding further and will leave the deed as it exists now. The NPDES permit application will need to be submitted before the end of the month. Chairman Hannabass will contact DEP about separating the Industrial Park from the original permit and try to obtain a separate permit on the plant. John Tuggle and Bill Hannabass will call Tom Michael to discuss the option of a surcharge or to give plant back to the tenants. John Legg - PSC complaint - John Legg sent a complaint letter to the PSC concerning tapping on to the Industrial Park package plant. He has not applied to the Sanitary Board for a tap onto city sewer. The complaint was sent Tom Michael for him to respond to the PSC. Mr. Hannabass will verify today if answer has been sent to PSC about the complaint.

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