RE: August 5,2014. Patricia Sharp-Doll 845 Hillside Drive Salt Rock, WV Case No S-C Patricia Sharp-Doll. Dear Ms.

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1 August 5,2014 Patricia Sharp-Doll 845 Hillside Drive Salt Rock, WV RE: Case No S-C Patricia Sharp-Doll V. Holiday Park Leisure Acres Association, Inc. Dear Ms. Doll: Pursuant to Rule 4.3.c of the Commission s Rules of Practice and Procedure. we are enclosing a copy of the Staff memorandum in this matter. Any responses must be submitted to the Executive Secretary s Office in writing within 10 days of this date, unless directed otherwise. All other parties have provided an address. Your failure to respond in writing to the utility s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice. If you have not done so, you are encouraged to file the Electronic Mail Agreement, previously mailed to you, which allows the Commission to serve all orders issued in this matter via electronic docket notification. When you provide an address, you will automatically receive docket notifications as documents are filed in this proceeding. The notifications allow recipients to view a document within an hour from the time the filing is processed. If you have not provided your address, please send an to caseinfo@,mc.state.wv.us and state the case number in the subject field. Please note - the Public Service Commission does not accept electronic filings. Sincerely, IFIt Encfs.: Memo Ingrid ferrell, Director Executive Secretary Division

2 FINAL JOINT STAFF MEMORANDUM TO: FROM: INGRID FERRELL Executive Secretary JOHN D. LITTLE Staff Attorney DATE: AUGUST 5,2014 RE: CASE NO S-C PATRICIA SHARP-DOLL V. HOLIDAY PARK LEISURE ACRES ASSOCIATION, INC. On June 2, 2014, Patricia Sharp-Doll filed a formal, verified Complaint against Holiday Park Leisure Acres Association, Inc. (Holiday Park). Ms. Sharp-Doll alleges electrical service has been terminated at the Holiday Park sewage treatment plant. The Holiday Park sewage treatment plant is owned and operated by Aha Lynn Vance. The history of Holiday Park is set forth in the June, 23,2014 Initial Joint Staff Memorandum. Ms. Sharp-Doll requests electrical service be restored and Holiday Park be placed in receivership. Staff notes that electrical service was restored to the Holiday Park sewage treatment plant on May 30, Since the filing of the Initial Joint Staff Memorandum on June 23, 2014, Staff has made site visits and talked with Mr. Vance and Ms. Sharp- Doll. In a telephone conversation with Mr. Vance on July 29, 2014, Mr. Vance informed Staff that he desires to continue operating the sewage plant. Mr. Vance also informed Staff that he has issued invoices for sewer bills but some residents are refusing to pay. Holiday Park is authorized by the Commission to charge $21 per month for sewer service. As of July 29, 2014, Holiday Park is not subject to a consent decree from the West Virginia Department of Environmental Protection. With the assistance of the Cabell County Health Department, Staff was able to find Joseph Peterman of JP Environmental to operate the wastewater treatment plant in Mr. Vance s absence. Mr. Peterman expended his own funds to repair the air blower. This should mitigate the odor problem. The residents of Holiday Park, particularly the Complainant, Patricia Sharp-Doll, are unhappy with the way Mr. Vance is operating the plant. Mansour Mashayekhi, Technical Analyst Associate with the Commission s Engineering Division, has continued his investigation. His findings and recommendations are set forth in the attached Memorandum. Mr. Mashayekhi notes that the sewage treatment plant was originally designed to operate only 3 months out of the year. Holiday Park was originally a camp ground. The sewage treatment plant is old; it was originally installed in the 1970 s and is in need of

3 Case No S-C August 5,2014 Page 2 replacement. Mr. Mashayekhi notes Mr. Vance has a water termination agreement with West Virginia-American Water Company. Staff has learned Mr. Vance has sent water termination notices to the residents who have not paid their sewer bills. Apparently the residents of Holiday Park are refusing to pay their sewer bills because they are not satisfied with the way MI.. Vance is operating the sewage treatment plant. Mr. Mashayekhi recommendations are set forth in his Memorandum. Staff notes that the issues in this case are complex and most likely will not be resolved within the time frame of this case. Staff is continuing to work with the Cabell County Health Department, the West Virginia Department of Environmental Protection, and the residents of Holiday Park on a long term solution. Until a long term solution is found Staff makes the following recommendations: 1. If Mr. Vance is unable, or unwilling, to operate the sewage treatment plant, he relinquish ownership to another party or entity; 2. Mr. Vance pay ail taxes and fees assessed to the sewage treatment plant; 3. Mr. Vance file his annual report; 4. Mr. Vance explore whether a rate increase is warranted; 5. Mr. Vance contact a Staff member of the Commission s Water and Wastewater Division if he needs assistance at ; 6. The residents of Holiday Park pay the sewer bills issued by Mr. Vance. Staff notes that part of the relief requested in this Case was for Holiday Park to be placed in receivership. In receivership proceedings, a willing receiver is necessary. The closest viable receivers are Salt Rock Sewer Public Service District and Pea Ridge Public Service District. Neither has expressed an interest in acquiring Holiday Park. Without a willing receiver, receivership proceedings are not a viable option. Staff is continuing to work with the Parties and the Cabell County Health Department, the Cabell County Commission, and the West Virginia Department of Environmental Protection to find a long term solution. As more information becomes available. Staff will make further recommendations. JDLis Attachment!: 1 /< cws i,,kj H:\JLittle\-CASES\> S-S (HOLIDAY PARK)\Final JSM.docx

4 WEST VIRGINIA PUBLIC SERVICE COMMISSION FINAL MEMORANDUM DATE: TO: July 25,2014 John Little, Staff Attorney Legal Division e- Fr2rii f>tv P& c? 7.*u-y. Yi.+E Ppr &: F 23 Z@$ FROM: Mansour Mashayekhi, Technical Analyst Associate,-i i4 Engineering Division SUBJECT: Case No S-C Patricia Sharp-Doll V. Aha Lynn Vance (Holiday Leisure Acres Association) On June 2, 2014, Ms. Patricia Sharp-Doll (Complainant) filed a formal complaint against Mr. Aha Lynn Vance (Defendant). The Complainant alleges that the power for the aeration system at the wastewater treatment plant has been shut-off. The wastewater treatment system is owned and operated by the Defendant. Lack of aeration caused significant odor problems as untreated wastewater is being discharged into the receiving stream. The Complainant wants the power turned-on and other problems at the sewage treatment plant fixed. Holiday Leisure Acres Association was incorporated (C-corporation) on November 10, Initially, the site was developed as a camp ground in the early 1970s. In 1972, a package sewage treatment system was installed to serve visitors of the Camp during the three months per year when the Camp was open. Later on, the site was converted into a housing development and was incorporated in November The sewage treatment plant was managed and operated by the Corporation until In November 5,2007, the sewage treatment plant was purchased by Mr. Alva Lynn Vance (Defendant). The plant had been operating in good condition until recently when the Defendant experienced some health issues. On June 10,2014, Staff visited the site and met with the following parties: the Complainant, other residents, the Defendant, and Cabell County Health Department employees (Ms. Karen Hall-Dundas and Mr. Keith Lee). The air blower at the sewage treatment plant was not working and there was significant odor at and around the plant. Staff was told that the air blower s motor has burned-out and its timer stopped working. It was estimated (by Mr. Vance) that it

5 may cost approximately $1,000 to have them repaired. The Defendant alleged that there is no funding available to have the air-blower repaired. The Defendant claimed that he only had approximately $45 in the account as some customers owe money and some stopped paying their bills on time or not paying at all. Each customer is required to pay approximately $2 1 flat fee per month for sewage services. There is a dispute among parties on number of customers in the Association. The Defendant told Staff that currently there are approximately twenty eight (28) paying customers collecting approximately $588 revenue per month. From this amount; energy, chlorination, de-chlorination costs and his services are paid. Staff was also informed by the Complainant that there are approximately thirty seven (37) residents in the Association. Some residents have their own septic systems. Some residents stopped monthly payments due to lack of sewage service (alleged). The Defendant informed the Staff that he currently has some medical issues and is not able to attend the sewage treatment plant adequately. He expressed verbally that he is willing to walk away with no interest with the sewage treatment system. Staff noted that the following issues will need to be addressed regarding this case: Short-term: The air-blower and its components will urgently need to be repaired to eliminate odor problems. Proper chemicals will need to be added to meet the facility s NPDES permits requirements. Funding to meet the short term obligation which didn t seem to be available. It may require approximately $27 to $37 per customer an additional fee to have the aeration system fixed (short term). None of the residents expressed any interest in managing the billing process or operating the sewage treatment plant. Staffs goal was to seek an outside resource for managing the whole process (operation and invoicing). Long term: In the long run, operation of the sewage treatment plant must be addressed adequately including management of the billing and collection tasks. The package treatment plant (In-ground steel tank) is an old and outdated system that must be replaced by a new one. A nearest sewage treatment plant is approximately 8-10 miles away and economically is not feasible to connect. Economic issues: Residents of Holiday Leisure Acres Association appear to be experiencing economic difficulty

6 and may not have financial means to meet the demand of the wastewater treatment plant needs. An update and Staffs recommendation: Staff and the Cabell County Health Department team were able to find Mr. Joseph Peterman of JP Environmental to operate the wastewater treatment plant as Mr. Vance was not available. Mr. Peterman was keen in fixing the short term problems and expressed interest in running the plant afterwards after legal issues are ironed out. He informed Staff that he spent his own money to purchase a new motor and a timer to fix the air-blower. On July 21,2014, Mr. Peterman informed Staff by that the motor and timer are operating fine. Therefore, he was planning to send his invoice to Mr. Vance (the Defendantowner) first, then to Holiday Park if Mr. Vance doesn t pay. Mr. Peterman had also spoken to the DEP about the site s NPDES permit and was told that the plant does not have a valid NPDES permit. He further discovered that the property taxes have also not been paid. Staff opined that the following issues regarding this case that should be addressed: 0 Legal Issues: Ownership of the wastewater treatment plant will need to be addressed or new ownership formed. Mr. Vance ought to legally relinquish ownership aspect of the wastewater treatment system if he is unable to operate the plant. The Complainant informed Staff that they can t afford to form a Home Owners Association (HOA). 0 Economic Issues: The sewage treatment system was originally intended to serve the camp ground for approximately three (3) months a year. The plant is old and desperately in need of replacement. Current residents are not willing or can t afford to bear the cost of a new sewage treatment plant (they expressed verbally). On July 29,2014, Staff contacted Mr. Vance to see if anything has changed since its visit to the site? He told Staff that he has recently issued monthly invoices for sewage service. He has an Agreement with the water company to cut-off water services for non-sewer payments. He is planning to pay an annual $60 NPDES permit s fee to keep it up-to-date and pay the outstanding property taxes which due soon. To manage current

7 mechanical needs of the system, He may have to apply for a rate increase through 19A to pay for such needs. He also mentioned that customers are not paying his invoices. At the same time, customers expressed to Staff that they are frustrated with their past experience and have decided not to make the payments to the Defendant. Finally, the nature of the complaint was that the Complainant wanted the sewage treatment s power be turned on. The power is on and the plant is operating by efforts of Mr. Peterman. There are no urgent technical issues remaining regarding this case. Issues are financial and Legal in nature matters in the short term and in the long run. Therefore, technical Staff defers the remaining issues to be addressed by the Commissions Utilities and Legal divisions.