Gordon. Kessler, Crutc hfo ie Id, Taylor Attorneys at Law 514 Seventh Street Moundsville, West Virginia December 3,2009
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1 V Kessler, Crutc hfo ie Id, Taylor Attorneys at Law 514 Seventh Street Moundsville, West Virginia Gordon Rodney T. Berry Jeffrey V. Kessler Steven T. Taylor Diana H. Crutchfield Eric M. Gordon Deceber 3,2009 Telephone:(304) Facsiile: (304) Toll-Free: (800) Sandra Squire, Executive Secretary Public Service Coission of West Virginia 201 Brooks Street Post Office Box 812 Charleston, WV U 0 ---J 3 CY ry w =(J 0 -.rc: C3 Re: City of McMechen Case No W-MA Dear Ms. Squire: Enclosed for filing please find an original of The City of McMechen's Answers and Respoass to Petitioner Marshall County Public Service District No. 1's First Set of Interrogatories io Requests for Production of Docuents Directed to the City of McMechen with regard to the above-captioned atter. Thanking you for your attention in this atter, I a J RC/lc k Enclosure cc: Willia R. Metzner, Esquire (w/enc) \\Bkcandtsewer\work dw\lkobasko\letters\wmfz\w Public Service Coiission.City of McMechen.lRC.wpd
2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON " < CASE NO W-MA 0 3, Ez) ZJ 0 InOa 0 ZJ -4 3'1. 5 CY CITY OF McMECHEN, a unicipal utility, w%-f.= J %- -5 v, 0 Investigation and suspension of increase ',"E P-c OQ W in water rates and charges as a result -nz3 a of petition filed in accordance with "Le - c3 0 r'3 West Virginia Code b. vi rn u THE CITY OF MCMECHEN'S ANSWERS AND RESPONSES TO PETITIONER MARSHALL COUNTY PUBLIC SERVICE DISTRICT NO. 1's FIRST SET OF INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS DIRECTED TO THE CITY OF McMECHEN Now coes The City of McMechen, by and through their counsel, Joseph R. Canestraro, Esquire, of Berry, Kessler, Crutchfield, Taylor & Gordon, and for its answers and responses to Petitioner Marshall County Public Service District No. 1's First Set of Interrogatories and Requests for Production of Docuents Directed to The City of McMechen, states as follows: Interroaatories INTERROGATORY 1: Does the City of McMechen easure, by eter, water used or consued in buildings and places owned, operated, or used by the City and/or its various departents? Yes. BERRY. KESSLER. CRUTCHFIELD. TAYLOR 5 14 SEVENTH ST
3 INTERROGATORY 2: used or consued in buildings Does the City of McMechen charge and bill for water nd places owned, operated, or used by the City and/or its various departents? No. INTERROGATORY 3 : Does the City of McMechen supply water for any swiing pool or pools operated by the City of McMechen or any of its departents? If so: Is that water easured by eter or any other ethod? How uch water was used in the operation of the pool or pools for the last two (2) suers? Are users of the pool or pools required to pay for adittance to or use of the pool or pools? If users are required to pay for adittance to or use of the pool or pools, how uch of the revenues so generated in each of the last two fiscal years (ending in 2008 and 2009) of the City ade its way to help fund the water operations of the City? Yes. N/A; BERRY. KESSLER. ZRUTCHFIELD, TAYLOR 514 SEVENTH ST N/A; 2
4 (c) (d) Yes;and Pool operates at a loss. INTERROGATORY 4: Does the City of McMechen easure, by eter or otherwise, water used or consued in its sewage collection and treatent operations? Yes, water and sewage. INTERROGATORY 5: Does the City of McMechen charge and bill for water used or consued by the City in its sewage collection and treatent operations? No. INTERROGATORY 6: Does the City of McMechen use, aintain, and account for a separate fund for its water operations, including bank accounts separate fro other operations of the City? If not: (a) With funds of what other operations of the City are water funds coingled? (b) What are the reasons, if any, for the coingling? Yes. BERRY. KESSLER, CRUTCHFIELD, TAYLOF; 514SEVENTHST 3
5 INTERROGATORY 7: Since June 30, 2004 (after Case No W-MA before the Public Service Coission, involving the City of McMechen, had ended), has the City, at any tie, taken or borrowed revenue generated by water operations of the City for other of the endeavors or operations of the City? If so: (a) Please identify each and every instance by the approxiate date, the aount, and the use to which the oney was put. (b) Identify each and every such appropriation that was repaid in whole or part by the approxiate date, the aount, and source of the repayent. No. INTERROGATORY 8: In Case No W-MA before the West Virginia Public Service Coission, involving the City of McMechen, the final order recoended by the Adinistrative Law Judge on February 9, 2004, and adopted by the Coission shortly thereafter allowed to the City an excess of $16,620 annually of revenues over debt-service and cash requireents ($213,150 less $196,530). What happened to the projected excess in each and every fiscal year coencing with the City s fiscal year beginning July 1, 2004, and ending with the City s fiscal year ended June 30, 2009? ANSWER See ost recent PSC reports and/or yearly audit, which is of public record. BERRY. KESSLER. CRUTCHFI ELD. TAYLOF 514 SEVENTH ST 4
6 INTERROGATORY 9: If a positive cash flow, such as entioned in the preceding interrogatory, did not aterialize in any one or ore of the City s fiscal years since June 30, 2004, please identify and explain the reason or reasons, including a reduction of anticipated water revenue and/or an increase in anticipated expenses, for the failure. See ost recent PSC reports and/or yearly audit, which is of public record. INTERROGATORY IO: Did an eployee or eployees of the City perfor work partly for water operations and partly for another or other endeavors and/or operations of the City in any fiscal year of the City since June 30, 2004? If so: Please identify each and every such eployee by nae and by position/positions with the City, and fiscal year or years in which each of the worked in a dual or split role or capacity. Please explain how or by what ethod, if any, copensation paid to each such eployee was allocated or divided between or aong the various endeavors or operations of the City. Yes, for sewage and water. BERRY. KESSLER, ZRUTCHFIELD. TAYLOR 514SEVENTH ST MOUNDSVILLE, W VA Ed McCloud, past superintendent; 5
7 Gary Willias, current superintendent; Owen Leley, operator eployed prior to 200+, Mike Maula, operator eployed as of 2008; and (b) 50% water and 50% sewage. INTERROGATORY 11: Does the City of McMechen aintain and repair the water-distribution pipelines in the territory of District No. I? Yes, all the way to the District's eter. INTERROGATORY 12: Does the City of McMechen pup to the District's storage tanks any of the water purchased fro the City by Marshall County Public Service District No. I? ANSWER No. INTERROGATORY 13: Are any of the present officials of the City of McMechen aware of any offers ade by District No. 1 since 1993 to take over and operate the water production-and-treatent facilities of the City and to sell water so produced and treated by District No. 1 to the City of McMechen? If so: (a) Please explain why no response to the offer has ever been ade to District No. 1 by the City. BERRY. KESSLER. CRUTCH FI E LD, TAYLOR 514SEVENTH Si MOUNDSVILLE, W VA (b) Please explain how the suggested takeover would have been detriental to the City of McMechen. No. 6
8 INTERROGATORY 14: Is the City of McMechen aware of any water eters of any of its water custoers that do not work ("dead eters")? If so: Please identify how any of the custoer eters presently are "dead" and how any dead eters fall into each class of custoers (residential, coercial, industrial, and so forth). Please state what the City of McMechen charges onthly for water use by custoers whose actual use is not easured by reason of "dead" eters? Does the City have in place a syste, policy, or plan for repairing or replacing "dead" eters? Yes. Respondent has not yet deterined a total of "dead" eters; Yes; and Respondent's syste to replace dead eters is ongoing. BERRY, KESSLER, CRUTCHFIELD. TAYLOE 514SEVENTHST 7
9 REQUESTS FOR PRODUCTION OF DOCUMENTS REQUEST 1: Please produce for inspection, review, and/or copying at the McMechen City Building, or at the offices of the attorney for Marshall County Public Service District No. I, at 1409 National Road in Wheeling, West Virginia, within twenty (20) days, the following docuents and things containing, disclosing, or reflecting financial and/or accounting inforation of the City of McMechen: Copies of the City s reports to the West Virginia Public Service Coission (PSC) for the fiscal years ended June 30, 2005, through June 30, A copy of the current water tariffs of the City of McMechen. A copy of the custoer certification ade to the PSC for June 30,2008, and June 30,2009. A list of the water custoers of the City of McMechen as of June 30,2008, and June 30,2009, by class (residential, coercial, industrial, and so forth), including the nubers of custoers in each class. Copies of the water-operation budgets of the City of McMechen for the fiscal years ending June 30,2008, and June 30,2009. BERRY. KESSLER. CRUTCHFIELD. TAYLOF 514SEVENTHST 8
10 (9 Copies of all tax reports and returns (state and federal withholdings, workers copensation, state and federal uneployent copensation) for the fiscal years ended June 30,2008, and June 30,2009. (9) For review, all inutes kept fro July 1, 2004, to the present tie relating to water operations of the City of McMechen (City Council, Water Board, Sewage Board, and any other bodies of the City). (h) A copy of the depreciation schedules as of June 30, 2008, for the water syste and facilities of the City of McMechen. (i) A detailed listing of cash and reserve balance as of the ost recent stateent dates, for water operations of the City of McMechen. (j) A listing of the naes, professions, positions, licenses, and contact addresses and telephone nuber of all persons now associated with the water operations of the City of McMechen and with the sewage operations of the City of McMechen. (k) Copies of the last two independent audit reports of the water BERRY, KESSLER. CRUTCH FI E LD, TAYLOR operations of the City of McMechen. 514SEVENTHST 9
11 (I) A listing of all grants (or the grant papers if no listing has been ade) fro federal, state, and local sources since June 30,2003, used for refurbishing, repairing, renewing, or adding to the water syste and facilities of the City of McMechen, including an identification of each source, the aount received fro each, and for what the funds were used. () A copy of the McMechen water departent s generat ledger detail by PSC classification for the fiscal years ended June 30,2008, and June 30,2009. (n) A copy of adjusting entries to the accounting records of the McMechen water departent fro June 30, 2008, to the present, (0) Copies of all funding applications ade by the City of McMechen for proposed capital iproveents, whether preliinary, interi, or final (including any ade to the West Virginia Industrial and Jobs Developent Council). (p) For review (or by diskette or e-ail), coputer-billing progra report by onth for the fiscal year ended June 30,2008, and for the fiscal year ended June 30,2009, including custoers, classes, eter sizes, consuptions, and billings detailed in 100-gallon increents. 10
12 For review, all invoices related to water operations of the City of McMechen for the fiscal year ended June 30,2008, and for the fiscal year ended June 30,2009. Copies of all reports prepared by professionals which are related to any pending water project of the City of McMechen, including projected revenues and expenses, budgets, and adding of new custoers. A listing of extraordinary expenses anticipated and capital assets planned for any and all projects of the City of McMechen for iproveents to the City's water facilities which are pending at this tie. A listing of known and easurable changes in the nuber of custoers, custoer consuptions, payroll levels, eployee-benefit levels, operation and aintenance expenses, capital additional, and debt-service needs occurring within the past five (5) years. RESPONSE: All docuents are presently located at the City offices for review. BERRY. KESSLER. CRUTCHFIELD, TAYLO 514SEVENTHST 11
13 REOUEST 2: Please produce for inspection, review, and/or copying (at the place and within twenty days as entioned in the first request above) the following docuents and things containing, disclosing, or reflecting inforation about the physical plant and facilities of the water syste of the City of McMechen: Copies of the onthly operation reports of the treatent plant, showing the aount of water treated in al twelve onths of the City s fiscal years ended June 30, 2008, and June 30,2009. Reports of finished water sent back to the treatent process to supply cheical feeds, backwash, and so forth, for the fiscal years ended June 30,2008, and June 30,2009. A list of nubers, sizes, and locations of the water-storage tanks of the City of McMechen, and (if available) tank-level charts for the peak day of the fiscal years ended June 30, 2008, and June 30,2009. A listing or report of the lineal feet of each of the pipeline sizes in the water-distribution syste of McMechen. A listing or report of the various custoer classes served by the following pipe-size groups: 4-inch pipe and saller; 6- inch pipe; and 8-inch pipe and larger. BERRY, KESSLER, CRUTCHFIELD, TAYLOF 514SEVENTHST 12
14 A copy of the latest IS0 Hydrant Flow Suary showing the available fire flow at 20 pounds per square inch, or a copy of the equivalent records. A copy of the latest reports of the estiated total annual fire-departent useages of water in the City of McMechen (either fro the City or fro its fire departent), showing the classes of custoers for which such useages are attributable. RESPONSE: All docuents are presently located at the City offices for review.!$ o eph R.yanestraro, Esquire State Bar ID No City of McMechen Berry, Kessler, Crutchfield, Taylor & Gordon 514 Seventh Street Moundsville, West Virginia Telephone: (304) Fdcsiile: (304) BERRY. KESSLER. :RUTCHFIELD. TAYLOF SEVENTH Si MOUNDSVILLE W VA 13 0 CI, 4 Zn 3 Q a3 0 - rn -c 0 n3 w
15 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO W-MA CITY OF McMECHEN, a unicipal utility, Investigation and suspension of increase in water rates and charges as a result of petition filed in accordance with West Virginia Code b. CERTIFICATE OF SERVICE - TZzZ -rl 0 rn N a rw w Service of the foregoing THE CITY OF MCMECXEN'S ANSWERS AND RESPONSES TO PETITIONER MARSHALL COUNTY PUBLIC SERVICE DISTRICT NO. 1's FIRST SET OF INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS DIRECTED TO THE CITY OF McMECHEN was served upon the following by United States ail, postage prepaid, this 3rd day of Deceber, 2009: Willia R. Metzner, Esquire 1409 National Road Wheeling, W (Counsel for Marshall County Public Service Distrikt No, I) BERRY. KESSLER, ZRUTCHFIELD. TAYLOR SEVENTH ST State Bar ID No Counsel for City of McMechen Berry, Kessler, Crutchfield, Taylor & Gordon 514 Seventh Street Moundsville, West Virginia Telephone: (304) Facsiile: (304) \\Bkcandtsetver\work docs\lkobasko\abc\answers to Marshall PSD#1 Interrogatories & RFP (1st Set).City of McMechen.JRC.wpd 14
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