CITY OF BUCKHANNON WEST VIRGINIA

70 E. MAIN STREET 26201 TELEPHONE BUCKHANNON, WV 26201 (304) 472-1651

TDD # (304) 472-9550 FAX # (304) 472-4620 David W. McCauley, City Attorney

Tel. @ WV Wesleyan College (304) 473-8322

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March 30,2007

Ms. Sandra Squire, Executive Secretary West Virginia Public Service Commission 201 Brooks Street P.O. Box 812 Charleston, WV 25323

Fax #304-340-0325

RE: City of Buckhannon - Sewer Rate Ordinance Filing - supplemental documents

Dear Ms. Squire:

Once again, i am writing to you on behalf of the City of Buckhannon respecting Buckhannon’s recently submitted sanitary sewer rate ordinance. As required by PSC rules and regulations, I am now enclosing several additional documents necessary to PSC review of Buckhannon’s rate increase matter. I further note my recent receipt of the letter from PSC attorney, Wendy Braswell, dated March 1,2007, and this letter and enclosed documents are intended to respond to Ms. Braswell’s letter as well.

Please find enclosed three (3) sets of the following documents, which I offer as supplemental information to the City’s documents mailed to you under my cover letter of February 20, 2007:

(1) a copy of the Publisher’s Affidavit of Carmela Rice, Legal Clerk at the Buckhannon Record Delta newspaper, evidencing the publication of the post-adoption legal notice on February 23 and March 2,2007;

(2) a copy of the actual, post-adoption legal advertisement taken from the Record Delta;

(3) a copy of the February 16, 2007 press release distributed to our newspapers here the day following Buckhannon’s ordinance adoption. I note that I earlier provided to the PSC under my February 20 cover letter, newspaper articles, including the post- adoption February 19 Record Delta article; and,

(4) the original affidavit of Nancy C. Shobe, Buckhannon City Recorder and Treasurer, stating that the public notice and ordinance with newly proposed rates was posted for thirty (30) days following adoption of the ordinance, all I believe to be in compliance with your PSC Tariff Rule 150-2-22.1 .c.4. Actually, the notice has been posted well in excess of the required thirty (30) day period, and in fact remains posted there now.

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Buckhannon -The promise of tomomow with the dignity of yesterday

If you have any questions or comments whatsoever about any of the enclosed documents, or any of the other information previously filed with the Commission, please contact me at my West Virginia Wesleyan College off ice at (304) 473-8322.

Very truly yours,

enclosures

oc: James W. Knorr, Ill, Mayor Nancy C. Shobe, City Recorder & Treasurer Members of the City Council Members of the City Sanitary Board Samuel S. Ludlow, City Engineer & Sewage Superintendent Wendy Braswell, Attorney at law, WVPSC

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PRESS RELEASE - THE CITY OF BUCKHANNON

FROM: James W. Knorr, Ill, Mayor and Chairperson of the City’s Sanitary, I

w 1 I ,

.-iy DATE: February 16,2007 ~ P

22 4- ;:? RE: City Council’s proposed passage and enactment of Ordinance No. 33 q? 3

.r- 0-

increasing sanitary sewage rates

Buckhannon’s City Council approved on second and final reading, Ordinance No. 333 during its regularly scheduled meeting on Thursday, February 15,2007. The Ordinance upon effectuation will increase sanitary sewer rates by 1 2,3%. Officials of the West Virginia Public Service Commission after conducting a comprehensive rate study of Buckhannon’s sanitary sewage operations, projected the new rates will generate $265,000 in new, annual revenues for the City’s Sanitary Board operations.

Ordinance No. 333 further provides for some new administrative fees as are permitted to be collected by the City pursuant to Public Service Commission rules and regulations. These administrative fees include: (1 ) a special tap fee and (2) an extraneous flow charge.

Pursuant to state law, the new rates may not be made effective for forty-five (45) days following the ordinance’s passage, Le., April 1,2007.

During the forty-five (45) day period, customers may petition the Public Service Commission of West Virginia for redress of any grievances. The rates will automatically go into effect on April 1,2007, unless twenty-five percent (25%) of the 3,698 Buckhannon customers served, file a petition, or unless a customer residing outside the corporate limits alleges discrimination between customers within and without the corporate limits, or unless a customer residing within the corporate limits alleges discrimination between customers within and without the corporate limits. Any such petition should be addressed to the Executive Secretary, Public Service Commission of West Virginia, 201 Brooks Street, P.O. Box 81 2, Charleston, West Virginia 25323.

The precise rates wilt all be shown and set forth within the legal advertisement to be published in the Buckhannon Record-Delta newspaper immediately following the February 15,2007 adoption of the ordinance.

A complete copy of the proposed rates, including Ordinance No. 333 in its entirety, is available to all customers, prospective customers or their agents during the regular business hours of Buckhannon’s City Hall located at 70 East Main Street in Buckhannon, WV 26201, or by contacting City Recorder and Treasurer, Nancy C. Shobe at City Hall by telephone at (304) 472-1 651. Interested persons may also contact Sanitary Sewage Superintendent, Samuel S. Ludlow at the Buckhannon Sewer Plant at (304) 472-5459.

A copy of the proposed rates will also upon the City’s filing of its ordinance with the PSC, be available for public inspection at the Office of the Secretary of the Public Service Commission at 201 Brooks Street, P.O. Box 81 2, Charleston, West Virginia.

The chart below depicts (1 ) current sewer rates and proposed increased sewer rates and (2) dollar and percentage sewer rate increases reflected by the proposed new sewer rates.

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TYPE OF CUSTOMERISERVICE NEW RATE (post-April 1, 2007)

Users of 0 - 2,000 gallons of water $6.74/1,000 gallons

Users of 2,000 - 14,000 gallons of water $5.73/1,000 gallons

Users of 14,000 - 50,000 gallons of water $4.75/1,000 gallons

Users of 50,000 - 200,000 gallons of water $4.01/1,000 gallons

Users of more than 200,000 gallons of water $3.37/1,000 gallons

Minimum bill $13.48 per month (equivalent to 2,000 gallons per month)

Flat rate users (w/o metered water service) (based upon 4,500 gallons)

$27.79 per month

Flat rate for Housing Authority Complex $822.04 per month

Resale Customer(s) $2.95/1,000 gallons

Septage dumped at Sanitary Plant $ZO.OO/per load/ up to 1,000 gallon

Septage dumped at Sanitary Plant $2O.OO/each additional 1,000 gallon

Tapkervice connection fee $250.00/per tap

****Special tap/extension fee $2,00O/per tap

"Brushy Fork extension surcharge fee $1.50/1,000 gal.

*Brushy Fork minimum project surcharge fee $3.00 per month

*Brushy Fork flat rate surcharge fee $6.75 per month

Delayed payment penalty 10% on all accounts not paid in full by due date in addition to the net current amount unpaid. The delayed payment penalty is not interest and shall be collected only once for each bill when appropriate

**Security deposit - residential service

**Security deposit - commercial service

1 /I 2th of the annual estimated charge for average residential service as calculated by the City 1 /6th of the annual estimated charge for average commercial service as calculated by the City

***Leak adjustment increment $0.38 per 1,000 gallot?s is to be used when a bill reflects unusual consumption which is attributed to eligible leakage on the customer's side of meter. This rate shall be

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****Extraneous flow charge

applied to all consumption above the customer’s historical average usage.

Calculated based upon the amount of rainfall received during the preceding month multiplied by the area of the surface contributing to the extraneous flow discharge into the sanitary sewer system

*applicable only to customers in the Brushy Fork area

**to be required of all new customers effective May 5, 2003

***limited to two monthly billings

****established by and further defined/described pursuant to Ordinance No. 332

TYPE OF CUSTOMER/SERVlCE

Users of 0 - 2,000 gallons of water

Users of 2,000 - 14,000 gallons of water Users of 14,000 - 50,000 gallons of water

Users of 50,000 - 200,000 gallons of water (new tier)

Users more than 200,000 gallons of water

Minimum bill

Flat rate users (w/o water service)

Resale Customer(s)

Septage dumped at Sanitary Plant (first 1,000 gal.)

Septage dumped at Sanitary Plant (per 1,000 gal. over initial 1,000 gal. load)

Taphervice connection fee

Brushy Fork extension surcharge

($) INCREASE

$0.74 per 1,000 gal.

$0.63 per 1,000 gal. $0.52 per 1,000 gal.

$0.44 per 1,000 gal.

$0.37 per 1,000 gal.

$1.48 per month

$3.04 per month

$0.32 per 1,000 gal.

$O.OO/per load/ 1 st 1,000 gal.

$O.OO/each add’l 1,000 gal.

$O.OO/per tap

$0.00

INCREASE (%)

12.3%

12.3% 12.3%

12.3%

12.3%

12.3”/0

12.3%

12.3%

0.00%

0.00%

0.00%

0.00%

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--------- A F F I D A V I T

STATE OF WEST VIRGINIA,

COUNTY OF UPSHUR, to-wit:

Nancy C. Shobe, after being first duly sworn, hereby deposes and states upon her

“My name is Nancy C. Shobe, of 105 West Lincoln Street, Buckhannon, Upshur

oath as follows:

County, West Virginia 26201. I am currently employed as the City Recorder and

Treasurer for the City of Buckhannon, a West Virginia, municipal corporation, and I have

served in that capacity continuously since 1990. I have been employed by the City for

nearly thirty-eight (38) years, and have worked extensively with all of; the City’s utility

operations during that time, including the City’s sanitary sewer operations. My off ice is

located within Buckhannon’s City Hall located at 70 East Main Street in Buckhannon.

“I am generally familiar with the rules and regulations of the West Virginia Public

Service Commission, and I have for some time been specifically aware of the PSC’s

posting requirements relative to the public posting of proposed utility rates prior to, during

and following the adoption of a utility rate ordinance. On Thursday, February 15,2007, the

Buckhannon City Council approved on second and final reading Ordinance No. 333 of the

City of Buckhannon, an ordinance proposing the increase in sanitary sewer rates here. This

ordinance was first formally proposed during the Thursday, February 1,2007 City Council

meeting.”

“Ordinance No. 333, including all information respecting the proposed sanitary

sewage rate increase, was at all times following the first reading of the ordinance during the

February 1, 2007 City Council meeting through the present, posted by me in a prominent

place visible to the public in the main lobby of Buckhannon’s City Hall next to the customer

payment window. The applicable sanitary sewage rate information further set forth in the

City’s post-adoption notice, has remained posted at this location through the present, Le.,

March 29,2007, and further shall remain posted through April 1,2007, being the

scheduled date of effectuation of Buckhannon’s new sanitary sewer rates.”

“Buckhannon’s sanitary sewer rates, and in fact, all of Buckhannon’s utility rates, are

readily available for inspection upon request by any citizen or City sewer customer.

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Furthermore, as provided by PSC rules and regulations, our customer payment area has a prominently displayed placard indicating that utility rates are available for inspection upon

request of any member of the public.”

And further Affiant saith not.

DATED this 29th day of March, 2007.

City Recorder & Treasurer The City of Buckhannon

Taken, subscribed, sworn to and acknowledged before me this 29th day of March, 2007.

My commission expires: LU? e 2.C 2 c : i O

OFFICIAL SEAL NOTARY PUBLIC

STATE OF WEST VIAGINfA AMBERLE JENKINS

RT. 1, BOX 208A BUCKHANNON, WW 2fj201

r Comr?ission Expires June 20,20 10

2

. . -

THE RECORD DELTA P.O. BOX 550

BUCKHANNON, W 26201

FElN NO. 363672215 (304) 472-2800

Nancy Shobe City of Buckhannon 70 E Main St Buckhannon, WV 26201

LEGAL ADVERTISEMENT INVOICE

ACCT# 800 LEGAL## 503d

DESCRIPTION Sanitary Rates

PUBICATION DATES 2/23/2 007

3/2/2 007

PUBLICATION COST

$ 258.75 $ 194.06

$ - $ - $ - $ - $ - $ -

AFFIDAVIT FEE ' $ 2.00 TOTAL $ 454.81

Legal Rate: . I 1 1/5 cents per word space for the first publication 75% of the first cost for each additional publication

AFFIDAVIT

STATE OF WEST VIRGINIA, COUNTY OF UPSHUR, Carmela Rice, Legal Clerk of the Record Delta, a Newspaper Published in Buckhannon in said county, do hereby certify that the annexed

Was published once a week for T w o Successive- weeks in said Record Delta Newspaper as aforesaid,

Sanitary Rates

Legal Clerk:

WEST VIRGINIA, UPSHUR COUNTY, TO WIT: Subscribed and s day of f&-~

rn before me this -@ncl