May 28,2008. City of Fairmont Responses to S W s Interrogatories, Data Requests and Request for Information
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1 May 28,2008 CITY OF FAIRMONT CITyICOUNlY COMPLEX 200 Jackson Street Fairmont, West Virginia (304) (304) FAX Sandra Squire c-73 c 9J Executive Secretary f 3 Public Service Commission of WV - m --c P.O. Box 812 Charleston, WV vz,% P. 1 iz 1 i,c7 RE: Petition for Leave to Intervene by the City of Fairmont Case No W-PC-CN MONONGAH MUNICIPAL WATER WORKS (Application for a certificate of convenience and necessity to upgrade, operate and maintain its water treatment facility and water distribution system) m cs1 b--a City of Fairmont Responses to S W s Interrogatories, Data Requests and Request for Information DearMs. Squire: As required by the Public Service Commission s Rules of Practice and Procedure, please find enclosed the original and eleven copies of the City of Fairmont Responses to PCS Staffs First Set of Interrogatories, Data Requests and Request for Information. The responses have been served as reflected by the Certificate of Service attached. Thank you for your attention to this matter. KVS/sf Enclosures Very bxly yours, /L/@ Kevin V. Sansalone CC: Dave Sago, Utility Manager, w/enc. Terry Owen, Esq., Public Service Commission, w/enc. Eileen Layman, CPA, w/enc. Thomas Michael, Esq., Counsel for the Town of Monongah
2 CASE NO W-CN PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON MONONGAH MUNICIPAL WATER WORKS, Monongah, WV Application for a certificate of convenience and necessity to upgrade, operate and maintain its water treatment facility and water distribution system. RESPONSE OF CITY OF FAIRMONT TO THE FIRST SET OF INTERROGATORIES, DATA REQUEST OR REQUESTS FOR INFORMATION BY THE STAFF OF THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA FOR CITY OF FAIRMONT Now comes the City of Fairmont and responds to the First Set of Interrogatories, Data Request or Requests for Information by the Staff of the Public Service Commission of West Virginia, as follows:
3 REQUEST NO. 1 The scope, cost and project impact on the City s rates as 8 result of the City s pending water treatment plant upgrade. Name and title of preparer: Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Fainnont, WV Name and title of person who can testify regarding the response: Date of Response: 05/27/08 Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Eileen Layman, CPA City of Fairmont Response: See attached 2
4 City of Fairmont Water fund First set of interrogatories Case No w-pc-cn Questionl, Scope: Udpate the water treatment plant to provide pottable water to the residents of Fairmont and surrounding areas. cost: 8,774, Impact: See below Rates Minimum I / Current I, Pro Forma ,OI , First 25,000 Next 25,000 Next 25,000 All Over 75,000 Public Fire Protection Private Fire Protection 2 or less The above charges are subject to an additional charge of : Resale Leak Adjustment
5 REQUEST NO. 2 Undated construction costs for the City s proposed water line to Monongah. The construction estimates included in the intervention filing are dated March, Name and title of preparer: Gary J. Fazalare, P.E. Greenhorne & O Mara, Inc Elkins Street Name and title of person who can testify regarding the response: Gary J. Fazalare, P.E. Greenhorne & O Mara, Inc. 111 Elkins Street Date of Response: 05/23/08 Response: See attached 3
6 PRELIMINARY ENGINEERING SUMMARY FOR A WATER SYSTEM EXTENSION PROJECT TO THE TOWN OF MONONGAH FOR THE CITY OF FAIRMONT MARION COUNTY WEST VIRGINIA May 2008
7 Preliminary Engineering Report I. INTRODUCTION The City of Fairmont owns an^ operates a potable water distribution system with several water storage facilities and a water treatment plant. The system is located in and around the City of Fairmont located in Marion County, WV. The City s service area encompasses the residents within the City limits as well as communities outside the City limits such as the Town of Pleasant Valley, Town of Barrackville, the communities of Meadowdale, Benton s Ferry, and Millersville. The City also sells potable water to the Town of Rivesville, Town of Grant Town, Tri-County Public Service District, Paw Paw Public Service District, Montana Mines Association, Valley Falls Public Service District, Monumental Water Association, Ice s Run Public Service District, and Little Creek Public Service District. The City of Fairmont is responsible for providing its current, as well as its future customers with a safe and reliable source of potable water. The City of Fairmont completed the construction of a new 10 MGD water treatment facility in Morris Park along Pleasant Valley Road in The state of the art facility features immersed ultrafiltration membrane style technology. The membrane technology provides nearly a 100% barrier against waterborne pathogens, including cryptosporidium, and it produces high quality safe drinking water. The new plant has immediate expansion capabilities to 12.6 MGD, and an ultimate expansion capacity of 15.0 MGD with the install&ion of srdditioilal membrme wits. JTJith the ~oiiipktioil of the new water treatment facility, the City of Fairmont has taken the lead to become a source of high quality water for the towns and communities of Marion County. Currently, the City of Fairmont is beginning construction for a water line extension project that will provide bulk water to the residents of the City of Mannington and its resale customers. The Project includes approximately 13 miles of 12 & 16 water line with a 1000 GPM water pump station. This project will eliminate the need for the City of Mannington to construct a new water treatment facility and possibly additional source water impoundments. To be a source of water for the communities of Marion County, the City of Fairmont has offered to evaluate the alternatives for providing water to systems currently in the process of upgrades and improvements to existing or proposed new water treatment facilities. The purpose of this Engineering Summary is to provide a feasible alternative to the construction of a new water treatment facility for providing the Town of Monongah with a continuous supply of potable water. Attached is a map showing the City of Fairmont s proposed alternative for providing potable water service to the Town of Monongah. 1 City of Fairmont Water Extension Project to the Town of Monongah
8 Preliminary Engineering Report 11. CURRENT SITUATION A. Raw Water Intake The City of Fairmont s water system begins with the pumping of untreated water from the Tygart Valley River, approximately one half mile upstream from the confluence of the Tygart Valley and West Fork Rivers. The raw water pumping consists of two 300 HP, 7-stage, 1800 GPM pumps and two 500 HP, 5-stage, 3200 GPM pumps. The raw water pumps are remotely actuated from the water treatment facility and transfer river water through two parallel 16 and 20 raw water lines two the raw water reservoir. B. Water Distribution System The City s water distribution system is comprised of approximately two hundred fifty five miles of 1 through 24 diameter PVC, AC, cast iron, and galvanized pipe. The system includes the following water storage tanks: Location Clearwell #1 Clearwell #2 Al:egl?eny # 1 Allegheny #2 Watson Stoney Road Sterling 1.5MG 1.5MG I. OMG 1.OMG 1.OMG 2.OMG 0.15MG Construction Concrete Steel Steel Steel Steel Concrete Steel Total system storage capacity is 8,150,000 GAL. C. Potable Water Treatment Facility and Production The City of Fairmont owns and operates a water treatment plant that utilizes the Tygart River as its raw water source. The plant produced an average 5,240,000 gallons. of potable water per day during the past year. The current plant existing capacity is 12.6 MGD with an ultimate design capacity of 15 MGD. D. Existing Rate Information EXISTING RATE SCHEDULE - PSC Case No W-MA FIRST 25,000 GALLONS USED PER $5.81 PER 1,000 GALLONS NEXT 25,000 GALLONS USED PER $3.40 PER 1,000 GALLONS NEXT 25,000 GALLONS USED PER $2.79 PER 1,000 GALLONS ALL OVER 75,000 GALLONS USED PER $2.74 PER 1,000 GALLONS SALES $1.93 PER 1,000 GALLONS Minimum Bill = $14.54 for 2,500 Gallons Average Bill = $26.15 for 4,500 Gallons 2 City of Fairmont Water Extension Project to the Town of Monongah
9 Preliminary Engineering Report IV. ALTERNATIVE The City of Fairmont believes that it can offer the Town of Monongah a feasible alternative to its potable water supply that would eliminate the need to construct a new water treatment facility. This alternative would provide potable water service to the Town of Monongah from the City of Fairmont s existing 1,000,000 gallon Watson Water Tank. The Watson Water Tank is located within 2,000 linear feet of the Town of Monongah s existing 12 water line leading from their current water treatment facility. See attached map showing the proximity of both water systems facilities. Based on the WV Bureau of Public Health Sanitary Survey, dated June 25, 2003 the current Town of Monongah Water Treatment Facility was constructed in and was last upgraded in The capacity of the Town s treatment facility is 1200 gpm. The source water for the water treatment plant is the Tygart Valley River and treatment includes chemical coagulation, flocculation, sedimentation, filtration, disinfection, and fluoridation of the water supply. The Town of Monongah s water system contains four water storage tanks with a total system capacity of about 2,000,000 gallons. In general the high service pumps located at the water treatment plant fills the main 1,000,000 gallon concrete water tank (overflow elev. = ) and part of the distribution system. The 500,000 gallon concrete water tank is filied by gravity from the main water tank and is controiied by the use of an altitude valve. The Thoburn booster pump station fills the Four States water tank and the Idamay water tank. Based on an average daily production of 700,000 gallons, the Town has an existing storage capacity of about 2.8 days. The City of Fairmont would offer the following proposal to the Town of Monongah for their consideration in evaluating the construction of a new water treatment facility. The City of Fairmont s existing Watson Water Tank was returned to service in late 2007 and is providing additional water storage for the City and its resale customers. The City of Fairmont would extend a 12 water line from the existing Watson Tank to a proposed 1500 gpm booster pump station, the new booster pump station would pump water from the City s Watson Tank (overflow elev. = ) to the Town s concrete tank (overflow elev. = ). All water delivered to the Town of Monongah would pass through a master meter located at the new booster pump station. The City s proposal would include installing a 20 gate valve with actuator on their existing 20 water line near the City s water treatment plant. This valve would allow for flow control from the City s clearwell to the Allegheny and Watson Tanks ad provide for proper water tank turnover. Also, the project would include interior and exterior painting of the existing Watson Water Tank, construction of a new water booster pump station, the installation of approximately 2,000 LF of 12 water line and the connection to the Town of Monongah s system (see attached map). 3 City of Fairmont Water Extension Project to the Town of Monongah
10 Preliminary Cost Estimate for the City of Fairmont Water Line Extension to the Town Of Monongah May 21,2008 PRELIMINARY CONSTRUCTION COST ESTIMATE 15% Contingency Su b-total $857, $128, $986, PRELIMINARY PROJECT COST ESTIMATE Preliminary Engineering $15, Final Engineering Design $78, Construction Inspection $68, Lands and Rights-of-way $30, Local Leaal Services $ Project Gntingency $7; Su b-total $228, Total Preliminary Construction Cost Total Preliminary Project Cost Total Preliminary Cost Estimate $986, $228, $1,214, Say $1,214,000.00
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12 REQUEST NO. 3 The projected impact on the City s rates as a result of the City s proposed water line extension to Monongah. Name and title of preparer: Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Name and title of person who can testify regarding the response: Date of Response: 05/27/08 Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Eileen Layman, CPA City of Fairmont Response: See attached 4
13 City of Fairmont Water fund First set of interrogatories Case No w-pc-cn Revised 05/27/08 Question 3 Projected impact on the City's rates as a result of the City's proposed water line extension to Monongah Rates Minimum WIO With Monongah Monongah Current Project Project , , , , First 25,000 Next 25,000 Next 25,000 All Over 75, Public Fire Protection Private Fire Protection 2 or less The above charges are subject to an additional charge of : Resale I Leak Adjustment
14 REQUEST NO. 4 A cash flow analysis in support of Items 1 and 3. Name and title of preparer: Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Name and title of person who can testi@ regarding the response: Date of Response: 05/27/08 Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Eileen Layman, CPA City of Fairmont Response: See attached 5
15 City of Fairmont Water fund First set of interrogatories Case No w-pc-cn Revised 05/27/08 Question 4: A cash flow analysis in support of items 1 through 3 STATEMENT OF CASH FLOW CASH FLOW FROM OPERATING ACTIVITIES Cash From Customers Less: Cash Paid for Operation & Maintenance Expenses Interest Received Interest Paid NET CASH PROVIDED BY OPERATtNG ACT lvlt tes CASH FLOWS FROM INVESTING ACTIVITIES Payments to Special Accounts Purchase of Property, Plant & Equipment NET CASH USED BY INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Retirement of long-term Debt Issuance of Debt NET CASH PROVIDED BY FINANCING ACTNITIES $ 8,277,394 (3,901,410) 176,222 (2,097,575) 2,454,63 1 (728,30 1 ) (9,958,500) (10,686,801) (1,607,034) 9,958,500 8,351,466 EXCESSCASH 11 9,296
16 REQUEST NO. 5 Has the City s Watson Tank been placed back in service? If so, what capacity is now available to Monongah? Name and title of preparer: Kevin V. Sansalone Attorney at Law City of Fairmont Fairmont,WV Name and title of person who can testify regarding the response: Date of Response: 05/27/08 David Sago, Utility Manager City of Fairmont James Fetty, P.E. City Engineer Response: The 1 million gallon Watson Tank was returned to full service in October With the return of the Watson Tank to service, the City s water storage capacity increased to 8.19 million gallons. All of the City s storage facilities work in conjunction with each other. Fairmont s average daily production at the water filtration Plant is million gallons per day. 6
17 REQUEST NO. 6 A 20-year and 40 present worth analysis comparing the construction cost of Monongah's proposed treatment plant contract to Fairmont's proposed water line extension project to serve Monongah. Response. The response to Request No. 6 is not complete. Upon formulation of a complete response, the City of Fairmont will supplement its responses to these interrogatories, data requests or requests for information. 7
18 REQUEST NO. 7 It the Town of Farmington gives notice to Monongah and decides to purchase its water from Fairmont, does Fainnont intend to provide service to Farmington 8s a resale customer. Name and title of preparer: Kevin V. Sansalone Attorney at Law City of Fairmont Fakmont, WV Name and title of person who can testify regarding the response: David Sago, Utility Manager City of Fainnont Date of Response: 05/27/08 Response. Yes Dated this 28& day of May, CITY OF FATRMONT Intervenor by Counsel Attorney at Law City of Fairmont Fairmont, WV 8
19 CERTIFICATE OF SERVICE 1, Kevin V. Sansalone, Counsel for the City of Fairmont, do hereby that on May 28, 2008, I served a true and accurate copy of the foregoing Responses by first class U.S. Mail, postage prepaid, upon the following: Terry Owen, Esq. Public Service Commission of WV P.O. Box 812 Charleston, WV Thomas R. Michael, Esq. P.O. Box 250 Lost Creek, WV Counsel for the City of Fairmont
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