Wayne S. Stonestreet 207 South Walker Street, Princeton, WV 24740 Eric J. Buckner By appointment only: 307 Federal Street Law & Commerce Bldg, Ste 501, Bluetield, WV 24701 LeRoy H. Katz (1917-1994) TELE: 304/431.4050 Norris Kantor, of Counsel TOLL FREE: 8001637,3551 Attorneys at Law Wayne L. Evans, of Counsel I FACSIMILE: 304/431.4060

September 22,2014

Ingrid Ferrell Public Service Commission 201 Brooks St, PO Box 812 Charleston, WV 25325

Via Fax: 304-340-0325 and USPS

Re: Northfork Municipal Water Department I Dear Ms. Ferrell: \

Please find enclosed for filing with your office an original and twelve (12) copies of a Response in Compliance with PSC Conditions of the PSC September 8, 2014 Order, along with Exhibits and a Certificate of Service evidencing service upon the parties in this matter. Please acknowledge this filing on the enclosed extra copy of this letter, returning to the undersigned.

Should you have any questions, fee1 free to contact me.

Very truly,

Katz, Kantor, Stonestreet & Buckner, PLLC

WSS:mt Enclosures BEFORE THE PUBLI~~~~~~~MMISSIONts-i OF WEST VIRGINIA

J RE:

LIVER BRIGHT CASE NO.: 14-0073-W-C ,.

ORTHFORK MUNICIPAL WATER DEPARTMENT

id

ENERAL INVESTIGATION CASE NO.: 14-0443-W-GI iT0 THE MANAGEMENT PRACTICES OF THE ORTHFORK MUNICIPAL WATER DEPARTMENT

RESPONSE IN COMPLIANCE WITH PSC CONDITIONS OF SEPTEMBER 8,2014 ORDER

The Northfork Municipal Water Department (hereinafter “Northfork,” “Ton n,”

Kater Board,” or “Water Department”) hereby file this Response to comply with the

ISCUSSION section ofthe September 8,2014 Order ofthe Public Service Commission of

‘est Virginia (herein “PSC”) in these matters and to comply with the conditions set fmh

erein so that a hearing regarding same and the costs thereof would not be necessary

I.

STAFF RECOMMENDED IMPROVEMENTS AND FlLING OF MONTHLY REPORTS ON PROGRESS

Northfork Municipal Water Department (hereinafter “Northfork,” “Town,” ‘.Wdter

lard,” or “Water Department”) agrees to make all the improvements recommended bq Mr

eimer as set forth in Exhibit A, attached hereto entitled “Northfork’s Timetabis for

Impletion of Tasks” by the times therein set forth, subject to the following:

a. Northfork requests an extension to complete item number 1 under the lecember 15,2014 deadline to a convenient time during the first half of calendar year 20 i 5; b. Northfork has completed at the time of this filing item numbers 1 and 2 tirider the Immediate deadline, item number 1 under September 15, 2014 deadline, item number I under November 30,2014 deadline, and item number 1 under December 1,2014 deadline;

c. Northfork is committed to timely completion of the remaining items lisd in the attached timetable; however, it notes that items listed which involve the assistance dMr.

Weimer, the assistance of employees and equipment of local public service districts (PSDs) and others, and adequate funds and good weather conditions will have a bearing on the actual date in which each item is completed. Nonetheless Northfork is committed to meeticg the deadline set forth in the attached timetable and is planning to timely complete each recommendation. Northfork will advise in its monthly reports to the Commission of any deadline that may not have been met, the reason therefor, and the plan to implement that item. Northfork will provide advance notice of same if the Water Board becomes aware in advance that a deadline for the implementation of a particular item cannot be met. Attached as Exhibit B hereto are Minutes of the Northfork Town Couqcil Meeting of September 15,

2014, approving and committing to the recommendations of Mr. Weimer for the Town's water system, subject to the aforesaid. Also attached, labeled as Exhibit C, are the Minutes of the Northfork Municipal Water Department meeting of September 17, 2014 wherein the

Water Board approved and committed to the same as well as the other conditions of such

PSC order, along withNorthfork's Plan to reduce its water customers' payment arrearab'ZCS 10

3% by the end of 3 years. Such Plan included a discussion of what percentage of its customers still carry an arrearage and set forth related concerns.

d. Monthly reports will be provided by the same official named in item IV below.

2 11.

PLAN TO REDUCE ARREARAGE AND REPORT CONCERNING SAME

Northfork has prepared and approved a plan to reduce its water customers' pa: zi-ent urearages to 3% by the end of 3 years. See Exhibit D attached hereto. Paragraph 11 of scch

?xhibit includes a report on what percentage of its customers still carry an arrearage.

111.

PLAN FOR PAYiMENT OF IRS ARREARAGE

Northfork has authorized counsel to review options available to the Town to hlly

.ddress and retire this outstanding obligation with the IRS. The Town does not believe that a urcharge over a three-year period would be reasonable. It does not believe that the monthly harge on its 187 customers would be collectible from its current customer base and believes uch a charge would force an increasing burden on the Town's utility customers' ability 10 lay for basic water, sewer and garbage services. The Town proposes to report to the

:ommission on Counsel's discussions with the IRS in addressing this issue.

IV.

MONTHLY REPORTS

Northfork has, and hereby does, designate Michelle Hargrave the Town Reporter ad

Ierk to file the reports required with regard to the items listed on Exhibit A, attached, as

Jell as any financial reports relating to the Water Department's activities. Ms. Hargraves' ontact information is as follows: Telephone - 304/862/3414; Address - PO Box 760,

Jorthfork, WV 24868. Further, Mr. Larry Porterfield has been designated and appointed y Northfork Municipal Water Department as a substitute contact person. Mr. Porteriiek's

3 primary function is to provide physical plant information concerning the water plant to Ms.

Hargrave to include in her reports.

Northfork acknowledges that its financial condition does not enable it to carry into

effect all the needs of the water system at this time. It further acknowledges that the

assistance of Commission Staff, local PSDs, volunteers, the McDowell Coiinty

Commission, and various other state agencies and persons are very much appreciated ard relied upon in making the improvements needed to the water system. Town Council and the

Water Board are committed to improving the water system and related services for the benefit of Northfork and the community that it serves.

NORTHFORK MLWICIPAL WATER DEPARTMEN7,

By Counsel,

A BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA

IN RE:

OLIVER BRIGHT CASE NO.: 14-0073-W-C VS. NORTHFORK MUNICIPAL WATER DEPARTMENT and

GENERAL INVESTIGATION CASE NO.: 14-04433-W-GI INTO THE MANAGEMENT PRACTICES OF THE NORTHFORK MUNICIPAL WATER DEPARTMENT

CERTIFICATE OF SERVICE

I, the undersigned attorney, do hereby certify that I have served a true copy of t!:e foregoing RESPONSE IN COMPLIANCE WITH PSC CONDITIONS OF

SEPTEMBER 8,2014 ORDER upon the following individuals by facsimile, and/or Lnited

States first class mail, postage prepaid, to:

Ingrid Ferrell Public Service Commission 201 Brooks St, PO Box 812 Charleston, WV 25325 Fax: 304-340-0325 IFerrelll~,osc.state.wv.us-

Oliver Bright PO Box 183 Northfork, WV 24868 obright3363~ahoo.com

Ms. Mavis Brewster, Gen. Mgr. McDowell County PSD HC 3 1 BOX436-3 Welch, WV 24801 Fax: 304-297-2810 mcdpsd@,frontemet.riet

On this 22"dday of September, 2014.

I

5 NMWD WORK PLAN TIME TABLE EXHIBIT A

NORTHFORK MUNICIPAL WATER DEPARTMENT TIME TABLE FOR COMPLETION OF TASKS

I IMMEDIATELY I 1. Maintain Consistent Media Level in Filters 2. Begin Water Terminations 3. Prepare Water Loss/Usage Report

1. Locate Valve to Line Across Elkhorn Creek at Fire Station

1. Install Phase Protection for All Pumos/Motors.. 12. Install Plant Master Meter I 15-Oct-14 1. Install Chlorine Chemical Pump 7 RPnlarP 4 inch Valve to Rpll 5trPPt Tank

2. Replace and Bury All Water Lines Subject to Freezing 3. Install Bvoass.. Meters Around Svstem Valves at 4 Locations 14. Clean Aerator and Add Rock NMWD WORK PLAN TIME TABLE EXHIBIT A

NORTHFORK MUNICIPAL WATER DEPARTMENT TIME TABLE FOR COMPLETION OF TASKS EXHIBIT B

Town of Northfork

Special Emergency Meeting

September 15,2014

A Special Emergency Meeting was held in Town Hall on September 15,2014.

The Reasoningfor the meeting was involving Case NO. 14-0073-W-C Oliver snghr v. Northfork Municipal Water Department, a Municipal Utility, Case No. 14-0443-W-GI General Investigation into the Management Practices of the Northfork Municipal Water Department.

Present were: Marcus Wilkes, Mayor; Michelle Hargrave, Recorder; and the following council members Michael Cappareili, Latonia Foster, Curtis Spencer and Robert White also present was Gary Dove,

Mayor Marcus Wilkes called the meeting to order at 6:OO PM.

Prayer was given by Curtis Spencer.

Recorder Michelle Hargrave passed out letter from @unci1 member Rhonda Cox stating she could not attend meeting due to such short notice.

Mayor Wilkes went over the Procedural Order of the Public Service Commission of West Virginia. He then turned the floor over ta the Chairman of the Water Board, Curtis Spencer.

Mr. Spencer spoke on the complaint filed by Oliver Bright 10 the Public Service Commission dated January 27,2014 alleging abysmal water service; in particular, Northfork' 5 customers have been under a boii-water advisory for over a year. After a brief discussion, the council decided to have the Water Departments anorney Wayne 5. Stonestreet answer the compiaint no later than September 22,2014 as noted by the Public Service Commission order. Gary Dove, Curtis Spencer and Robert White will meet with Mr. Stonestreet on Tuesday, September 16,2014 at 3:OO PM. Gary Dove asked the Recorder. Michelle Hargrave; to have ready d copy of the June 30, 2014 Financial Statement and a total number of delinquent accounts as of September 16,2014.

Gary Dove passed aut Time Table for Completion of Tasks sheets to all present. The Northfork Town Council discussedthe task required and voted to commit to completing the task set forth in a timely fashion and authorized the water board to do so.

ecorder, Michelle Hargrave EXHIBIT C

Minutes of the Special Meeting of the Town of Northfork Water Board September 17,2014

A Special Meeting of the Town of Northfork Water Board was held on September 17, 2014 at 6:OO p.m. at Northfork Town Hall, Northfork, WV. Present at the meeting were Curtis Spencer, Gary Dove, Robert White, Latonia Foster, Larry Porterfield, Guy Wyatt, Michael Cappareili, Marcia Whyte and Jeff Kline. The meeting was called to order by Chairman Curtis Spencer on the above date at 6:OOp.m; prayer given by Robert White.

The first order of business brought before the Board was a discussion with Jeff and Marcia from Capital Building Partners, who appeared at the Special Meeting to present information concerning the land purchased by Capital Building Partners (“CBP”) in sections of Northfork and the cabins CBP plans to build on those lots. CBP requested approval from the Town to do this project with the understanding that CBP would also need to secure approval from the Health Department prior to beginning construction. CBP indicated that such meeting was currently scheduled for Friday, September 19, 2014. Robert White inquired of Jeff and Marcia if they thought about leasing the land. A general discussion ensued and Chairman Curtis Spencer related to Jeff and Marcia, on behalf of CBP, that if the Health Department approved the sewage application, the Water Board did not foresee a problem.

The next order of business to come before the Board was the Complaint instituted by Oliver Bright against the Northfork Municipal Water Department. Information was presented that Gary Dove and members of the Water Board met with Attorney Wayne S. Stonestreet on September 16, 2014 to discuss such Complaint, as well as the Administrative Review instituted by the Public Service Commission. The Board discussed the need for a Response to be filed with the PSC to the guidelines and requirements set forth in their orders entered with respect to the instant matters. The Board further discussed that Larry Porterfield and Guy Wyatt had been contacted to help with a checklist that Jim Weimer of the Engineering Division had set up for the Town. Although some of the problems on the list had already been implemented, the Water Department would need to continue to work together with Mr. Weimer, Rural Water, Assistance Staff, local PSDs and community volunteers in order to progress in implementing the requirements under the PSC checklist. Guy Wyatt presented to the Board that the Water Department needed to locate the turn off points and mark them with blue paint for identification purposes. He further related that the Water Department is in the process of changing from gas to liquid chlorine treatment. Gary Dove stated that he had drafted a letter to water customers outlining new procedures and policies concerning late payments and disconnections to comply with the PSC September 8, 2014 order. He related that the Water Department intended to implement these procedure and policy changes as of October 1,2014. A genera! discussion ensued, with Members discussing the potential of a water rate increase. Gary Dove stated that he could begin posting the water accounts/ledgers immediately upon approval. Upon Motion made by Robert White, seconded by Latonia Foster, and unanimously carried, it was RESOLVED that the Northfork Municipal Water Department (Water Board/Department), approved the requirements of the September 8, 2014 PSC order and that with the assistance of Attorney Wayne Stonestreet, would file a Response in ccmpliance with the September 8, 2014 PSC order, along with all necessary reports, plans, exhibits and attachments, and that the Department shall continue to work with the PSC, Mr. Weimer, community volunteers and any such other entities necessary to fuifill the tasks and requirements set forth in the PSUs September 8, 2014 order, It was further RESOLVED that the Water 8oard/~c~hfork~ufficipal Water Department would begin filing the monthly reports requisite under the PSC Order of September 8,2014.

There being no further business to come before the Board, the meeting was adjourned at 7:45 p.m. EXHIBIT D NORTHFORK MUNICIPAL WATER DEPARTMENT CUSTOMER ARREARAGE REDUCTION PLAN 1. A letter to every customer of the Northfork Municipal Water Department will be mailed by September 30, 2014, with each customer’s respective water, garbage and sewer bill. outlining the need for prompt payment of all water and garbage bills, along with the consequences should this not happen. (Draft Letter is attached as Exhibit I.)

2. The Water Board is working on a method of assessing a late fee for each bill that is not paid when due. This will be added to delinquent accounts accordingly, after written notice to customers, once instituted.

3. When an invoice becomes 10 days past due, a call will be made to the customer.

4. When an invoice becomes 15 days past due, a letter will be mailed to the customer. laying out the necessity for payment of the late bills.

5. After an invoice becomes 20 days past due, a letter shall be mailed to the customer, explaining that service is in danger of being discontinued. Such discontinuance shall result in water cut off if the balance is not paid within 5 business days, and an additional reconnection fee to have the meter re-installed shall be required prior to renewal of service.

6. After exhausting these means, including the giving of proper notice prior to disconnection, service will be terminated to the customer.

7. Northfork Municipal Water Department has attempted to work with customers with past due balances, allowing them to sign a contract, paying their balance in full in 6 months, 12 months or 18 months, by paying so much per month, in addition to paying their current bill. This has only proven slightly successful because there has been only minimal follow-up to the contract use and payment, as well as follow-up to unpaid balances, or late payments.

8. At least one member of the Water Board will work weekly, along with Gary Dove, a clerk hired by the Town Council for special projects, to provide constant monitoring of these accounts.

9. Once the water service has been terminated, if the customer shows no inclination to get it provided again, legal proceedings will follow, up to turning the account over to a collection agency for collection, filing liens against properties and other legal remedies available to the Town and Water Board.

IO. The Water Board feels that with these plans being enacted, the 3% goal of customers in arrears at the end of 3 years can be met. Realizing this is not going to happen overnight, goals for the following 3 years include: a reduction to 20% by December, 20 14, to 15% by December, to 8% by December, and ultimately to 3% by December, 2017

Rev. 09/18/14 EXHIBIT D NORTHFORK MUNICIPAL WATER DEPARTMENT 11. As of September 17, 2014, there were 156 individual households and 31 businesses as customers of the Northfork Municipal Water Department. Also on that date, 38 of the households and 1 of the businesses were two months or more behind in payment of water bills. Overall, of 187 customers, 39 in arrears equates to 20.8% of the customer base. These figures are based on those customer’s two months in arrears; the percentage is higher for those just one month behind.

12. Northfork Municipal Water Department will strive to make this plan viable and to bring the arrearages down to proposed levels.

Rev. 09/18/14 NORTHFORK MUNICIPAL WATER WORKS P 0 BOX 760 NORTHFORK, WV 24868

September 25,2014 NOTICE

Customer of Northfork Water Works/ Northfork Municipal Water Department Northfork, WV 24868

Dear Customer:

First, the Northfork Water Works Board would like to thank you for letting us serve you with water to your home/business. We very much appreciate your business.

If you pay your water bill each month on time, you may regard this Notice simply as information concerning new policy and procedures adopted by Northfork Municipal Water Department. This Notice is provided t3 each and every customer of the Northfork system to inform you of the implementation of these procedures.

Beginning October 1, 2014, it has become a requirement of all our customers that bills for water and garbage are paid on time. An action has been filed with the Public Service Commission, and Northfork Municipal Water Department has been ordered to drastically decrease the rate of late payments received from our customers.

All water and garbage bills, along with sewer, are mailed to you no later than the 1" day of each month and are due by the TOth of that month.

The Northfork Water Works Board is in the process of implementing the assessment of a late charge on any account for each invoice that remains unpaid by the due date. After written notice of non-payment, discontinuance of your water service may occur, and if your water meter is pulled out, you may be subject to a reconnection fee in addition to having to pay the entire amount due in order to get service restored.

Please pay your current account balance in full by the lothof each month in order to avoid late payment Fees and potential disconnection, resulting in reconnection fees and the requirement of a $0.00 account baiance prior to restoration of service.

If you currently owe a balance on either your water or garbage account, please come by Town Hall Is speak with a member representing the Water Board on Thursday, October 2 or Friday, October 3 between 10 a.m. and 3 p.m. to discuss payment of your account if you are unable to pay in full by October 10.

Thank you very much for your cooperation and attention to this Notice.

Sincerely yours,

Northfork Water Works