CWOODPAI\K Public Service District August 6,20 13 Sandra Squire, Executive Secretary Public Service Commission of West Virginia P.O. Box 812 Charleston, WV 25323 Q=..?=?iPt?~RJfi Q& %23& pst Q&\C tgt B=& Re: Approval for the sale of Real Estate Dear Ms Squire: The Claywood Park Public Service District is seeking approval from the Commission for the sale of Real Estate owned by the District. c Due to growth of the District, customer base as well as staff, the business office and maintenance facilities located at 1801 Staunton Turnpike, Parkersburg, WV 26104, built in the early 1970’s no longer met the needs of the District. In March of 2009 the PSD moved into its current office location (See PSC Case No. 07-0850-PWD-CN), and desires to sell the described Real Estate by public auction. Money received from the sale of the above described Real Estate would be used to make payment to the USDA, Rural Development agency to fully fund three of the Districts outstanding water bond reserve accounts, as well as construct a much needed equipment and materials storage building, on property now owned by the District next to its business office and water treatment plant. The District is Mly aware of the requirements of the bidding and purchasing laws of this state that it must follow in order to purchase and construct the proposed facilities. The District is currently seeking the approval of the USDA, Rural Development for the sale of this Property. If you require any further information please contact our General Manager, Todd Grinstead at 304- 422-6042. Chairman I 594 Davisville Rd. Davisville, WV 261 42 PO. Box 127 Parkersburg, WV 26102 Phone: 304-422-6042 Fax: 304-422-4014 Email: [email protected] www.woodpsd.org BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA Case No. Expedited Consideration Requested CLAYWOOD PARK PUBLIC SERVICE DISTRICT PETITION FOR CONSENT AND APPROVAL TO SELL REAL ESTATE AND REQUEST FOR EXPEDITED CONSIDERATION Claywood Park Public Service District (District) respectfully request the public Service Commission of West Virginia (Commission) to grant approval for the sale of Real Estate no longer necessary for the operation, maintenance or use in business of the District. In view of the straightforward nature of the relief requested in this petition, the Company request that the Commission retain this case and accord it expedited consideration in order that a final order approving the sale can be issued by August 30, 2013. In support of its petition, the District states as follows: INTRODUCTION 1. The name and address of the District is: Claywood Park Public Service District P.O. Box 127 Parkersburg, W 26102 2. The District is a public service district, created and authorized to transact business in accordance with the laws of the State of West Virginia, and is engaged in providing water and sewer service to various communities located within Wood and Wirt Counties in West Virginia, and within the boundaries established for the District by the Wood and Wirt County Commission’s and pursuant to authority granted the District by the Commission. 3. The name and address of the Purchaser is: Frank Douglas Douglas Building & Remodeling LLC 30 Douglas Dr. Parkersburg, WV 26104 4. Attached as Exhibit A to this Petition is a statement of the financial condition of the District that is responsive to the requirements of procedural Rule 10.6. 5. The District proposes to sell property located at 1801 Staunton Turnpike, Parkersburg, WV 26104. Due to growth of the District, customer base as well as staff, the business office and maintenance facilities built in the early 1970’s no longer met the needs of the District. In March of 2009 the District moved into its current office location (Case’ No.07-0850-PWD-CN). The District has determined that the Subject Property is no longer necessary for the operation, maintenance or use in the business of the District nor will it be needed in the future, and it should therefore be sold. 6. The District advertised to receive sealed bids in the Parkersburg News. At its regular Board meeting held on July 16, 2013 the Board received six (6) sealed bids, Attached to this Petition as Exhibit B is supporting documents. 7. The Subject Property consist of 0.79 Acres of land with a 1,650 square foot wood frame office building along with two (2) 1,600 square foot wood frame garage buildings. Attached here is Exhibit C property appraisal including deeds. The accounting history is accounts 303.4, 303.5 and 304.5 as shown on Exhibit F. 8. The Subject Property sale price will be $1 16,000.00. Money received from the sale would be used to make payment to the USDA, Rural Development to fully fund three of the Districts outstanding water bond reserve accounts, as well as construct a much needed equipment and materials storage building. 9. The purchaser is Douglas Building & Remodeling LLC, operated by Frank Douglas. Douglas Building & Remodeling LLC, is a West Virginia LLC that is in the business of remodeling residential and commercial properties as well as new construction of a variety of buildings and structures. The intended purpose of the Subject Property for Douglas Building & Remodeling LLC is to relocate its business offices, shop and material storage facility, as well as perform its daily function as a business. 10. The District advertised the sale of the Subject Property by sealed bids, an invitation to bid was published in the Parkersburg News, a local news paper circulated in Wood i3 Wirt Counties and surrounding areas, stating ” Claywood Park PSD will be accepting sealed bids until July 16, 2013 at 2:OO pm for property located 1801 Staunton Turnpike (Rt-47) Parkersburg, W 26102. Contact the District office at 304-422-6042 between 8am and 4:00pm, Monday thru Friday for details and information on how to receive bid forms.” See attached Exhibit D (Advertisement & Property Bid Form) 11. The terms and condition of the sale are set forth in the purchase agreement attached here as Exhibit D. Basically, the Subject Property is being sold in its “AS IS” condition with no warranties or representations as to its condition for the sum of $1 16,000.00. The Contract is subject to the approval of the Public Service Commission of West Virginia. 12. The District had an appraisal of the Subject Property performed in December of 2010. The appraised value of the land and property was determined by L. Dean Swartz, Licensed real estate appraiser, to be $150,000.00. The Board made a business decision not to have another appraisal performed due to the cost involved. Due to the time that has passed and giving the condition of the economy of the local area, the Board realizes the value of the Subject Property has diminished to some degree. As evident in the bids received. The amount bid by Douglas Building & Remodeling was above the average amount bid by the other interested parties. See Exhibit B for bid results. 13. A copy of a plat showing the property to be conveyed is attached hereto as Exhibit E. The shaded and outlined area indicates the property to be conveyed. 14. The District doses not anticipate the sale of the property to have any effects on service to its customers. 15. The transaction will be cash sale at closing. There will be no financing on the part of the District. 16. The District doses not believe the sale of the property will have any effects on any other utility. 17. The approval of the sale is in the public interest and should be approved for the following reasons a. The terms and conditions of the sale are fair and reasonable; b. Neither party to the sale is given an undue advantage over the other; c. The sale of this property will not adversely affect the Districts service to its customers or otherwise adversely affect any other public utility or the public; d. The Subject Property will be used for a beneficial purpose by the purchaser, resulting in positive economic benefit for Parkersburg, West Virginia and the surrounding area, 18. The Districts public utility service will not be adversely affected by the sale of the property. Instead the sale will permit the District to continue to provide quality water service at reasonable rate by eliminating itself of property it no longer needs to operate and maintain. As well as allow the District to construct a much needed storage garage to protect its investment of vehicles, generators, pipe, fittings and various materials. 19. The District has concern for the time required to achieve approval of the Commission being a buyer has already been selected and is anxiously wanting to take possession. a. The District request the commission retain this case and accord it expedited consideration in a manner that will allow the Commission to enter a final order granting the request no later than September 30, 2013. b. Grant such other relief as the circumstances may require. Respectfully submitted this 6th day of August, 2013 Exhibit A Financial Information Balance Sheet Income Statement Cash Flow Statement BALANCE SHEET P ' 8/01/13 Claywood Park PSD 8/01/13 03:39:21PM PAGE 1 PGRIOD:12, YEAR ENDING: 2013 GENERAL LEDGER SEQ FILE: BAL01 WATER BALANCE SHEET _--- Y E A R - T 0 - D A T E ---- TITLE ACCOUNT # DETAIL BALANCE TOTAL ASSETS AND OTHER DEBITS WATER UTILITY PLANT 28869,657.12 RESERVE FOR DEPRECIATION 8956,821.96- MISC. WATER PROJECT-RISER RDG 1 105 001 00 336,704.15 ____________ _____.__NET WATER - UTILITY PLANT 20249,539.31 -.-.