CITY OF FAIRMONT CITyICOUNlY COMPLEX

P.O. Box 1428 200 Jackson Street

Fairmont, West Virginia 26555-1428 (304) 366-6211

(304) 366-0228 FAX www.fairmontwv.gov

May 28,2008

P. 1 vz,%

c 9J Sandra Squire c-73

Executive Secretary Public Service Commission of WV P.O. Box 812 iz’1

Charleston, WV 25323 i,c7

f”3 -“m --c

RE: Petition for Leave to Intervene by the City of Fairmont

Case No. 08-0296-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 Sta f fs “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.

Very bxly yours,

/ L / @ Kevin V. Sansalone

KVS/sf Enclosures

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

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

CASE NO. 08-0296-W-CN

MONONGAH MUNICIPAL WATER WORKS, Monongah, WV 26547

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:

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 26554

Name and title of person who can testify regarding the response:

Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Fairmont, WV 26554

Eileen Layman, CPA City of Fairmont P.O. Box 1428 Fairmont, WV 26554

Date of Response: 05/27/08

Response: See attached

2

City of Fairmont Water fund First set of interrogatories Case No. 08-0296-w-pc-cn

Questionl,

Scope: Udpate the water treatment plant to provide pottable water to the residents of Fairmont and surrounding areas.

cost: 8,774,500.00

Impact: See below

Rates Minimum

518 314 I 1 114 1 1/2 2 3 4 6 8

First 25,000 Next 25,000 Next 25,000 All Over 75,000

Public Fire Protection Private Fire Protection

3 4 6 8

The above charges are subject to an additional charge of : Resale

2 or less

Leak Adjustment

Current 14.54 21.81 36.36 53.08 72.71

1 16.34 218.14 363.56 727.13 I , 163.40

5.81 3.40 2.79 2.74

17.05

39.65 59.48 79.30 99.14

148.71

17.05 1.93

0.455

Pro Forma

20.34 30.51 50.86 74.24

101.70 162.73 305.12 508.52

1,OI 7.05 1,627.27

8.13 4.76 3.90 3.83

23.85

55.46 83.20

110.92 138.67 208.00

23.85 2.70

0.64

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, 2006.

Name and title of preparer: Gary J. Fazalare, P.E. Greenhorne & O’Mara, Inc. 11 1 Elkins Street Fairmont, WV 26554

Name and title of person who can testify regarding the response:

Gary J. Fazalare, P.E. Greenhorne & O’Mara, Inc. 111 Elkins Street Fairmont, WV 26554

Date of Response: 05/23/08

Response: See attached

3

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

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 2003. The “state of the art” facility features immersed ultra- filtration 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

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 05-0424-W-MA FIRST 25,000 GALLONS USED PER MONTH @ $5.81 PER 1,000 GALLONS NEXT 25,000 GALLONS USED PER MONTH @ $3.40 PER 1,000 GALLONS NEXT 25,000 GALLONS USED PER MONTH @ $2.79 PER 1,000 GALLONS ALL OVER 75,000 GALLONS USED PER MONTH @ $2.74 PER 1,000 GALLONS SALES FORRESALE @ $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

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 195 1 and was last upgraded in 1977. 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. = 1322.00’) 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. = 1277.00’) to the Town’s concrete tank (overflow elev. = 1322.00’). 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

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

PRELIMINARY PROJECT COST ESTIMATE

Preliminary Engineering $15,000.00 Final Engineering Design $78,000.00 Construction Inspection $68,000.00 Lands and Rights-of-way $30,000.00 Local Leaal Services $10.000.00

Project Gntingency $7;000.00

Total Preliminary Construction Cost Total Preliminary Project Cost

Total Preliminary Cost Estimate

Su b-Total $228,000.00

$986,125.00 $228,000.00

$1,214,125.00

$857,500.00 $128,625.00 $986,125.00

Say $1,214,000.00

i

0 c

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. Fairmont, WV 26554

Name and title of person who can testify regarding the response:

Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Fairmont, WV 26554

Eileen Layman, CPA City of Fairmont P.O. Box 1428 Fairmont, WV 26554

Date of Response: 05/27/08

Response: See attached

4

City of Fairmont Water fund First set of interrogatories Case No. 08-0296-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

518 314 1 1 114 1 112 2 3 4 6 8

First 25,000 Next 25,000 Next 25,000 All Over 75,000

Public Fire Protection Private Fire Protection

3 4 6 8

The above charges are subject to an additional charge of : Resale

2 or less

Leak Adjustment

WIO With Monongah Monongah

Current Project Project 14.54 21.81 36.36 53.08 72.71

116.34 218.14 363.56 727.13

1,163.40

5.81 3.40 2.79 2.74

17.05

39.65 59.48 79.30 99.14

148.71

17.05 I .93

0.455

20.34 30.51 50.86 74.24

101.70 162.73 305.12 50852

1,017.05 1,627.27

8.13 4.76 3.90 3.83

23.85

55.46 83.20

110.92 138.67 208.00

23.85 2.70

0.64

19.52 29.28 48.81 71.25 97.60

156.17 292.81 488.01 976.04

1,561.66

7.80 4.56 3.75 3.68

22.89

53.22 79.84

106.45 133.08 199.62

22.89 2.59

0.61

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. Fairmont, WV 26554

Name and title of person who can testi@ regarding the response:

Zac Dobbins, CPA Bennett & Dobbins 3 17 Cleveland Ave. Fairmont, WV 26554

Eileen Layman, CPA City of Fairmont P.O. Box 1428 Fairmont, WV 26554

Date of Response: 05/27/08

Response: See attached

5

City of Fairmont Water fund First set of interrogatories Case No. 08-0296-w-pc-cn

Question 4: Revised 05/27/08 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

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 P.O. Box 1428 Fairmont,WV 26554

Name and title of person who can testify regarding the response:

David Sago, Utility Manager City of Fairmont P.O. Box 1428 Fairmont, WV 26554

James Fetty, P.E. City Engineer P.O. Box 1428 Fairmont, WV 26554

Date of Response: 05/27/08

Response: The 1 million gallon Watson Tank was returned to full service in October 2007. 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 5.750 million gallons per day.

6

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

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 P.O. Box 1428 Fakmont, WV 26554

Name and title of person who can testify regarding the response:

David Sago, Utility Manager City of Fainnont P.O. Box 1428 Fairmont, WV 26554

Date of Response: 05/27/08

Response. Yes

Dated this 28& day of May, 2008.

CITY OF FATRMONT Intervenor by Counsel

Attorney at Law City of Fairmont P.O. Box 1428 Fairmont, WV

8

CERTIFICATE OF SERVICE

1, Kevin V. Sansalone, Counsel for the City of Fairmont, do hereby cedi@ 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 25323

Thomas R. Michael, Esq. P.O. Box 250 Lost Creek, WV 26385

Counsel for the City of Fairmont