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Home My WebLink AboutWQ0018708_Meeting_201907178 Attendees: Bay Tree Lake — Wastewater Utility System Meeting July 17, 2019 - 8:00 A.M. Archdale Building, Room 917. • Division of Water Resources (DWR) Old North State Water Company LLC (ONSWC) Envirolirk Public Staff— North Carolina Utilities Commission (Public Staff) - • Purpose: Permanent Solution for the Materially Non -Compliant Bay Tree Lake Wastewater Utility System (WW System) Lake Creek Corporation '(LCC) has constructively abandoned the WW System. Envirolink has been contract operator for the past years'. Asset Purchase Agreement between LCC and ONSWC dated May 23, 2017 (APA). Application for transfer filed with North Carolina Utilities Comimission (Commission) on January 8, 2018, in Docket No. W-1300, Sub 42. The Public Staff requested documentation supporting LCC's 'original cost net investment (Rate Base) in the WW System. LCC is the Bay Tree Lake developer and owner of Bay Tree Utilities and did not provide the Public Staff credible do I umentation to establish the Rate Base. Documented Rate Base is zero. The APA states a $130,000 purchase price based upon asslumed Rate Base of at least $130,000. _ APA also provides for later purchase price payments to LCC1in the amount of $2,000 per additional lot connected to the WW System of the 500 claimed, existing platted Tots. This would be $2,000 x approximately 330 lots = $660,000. Public Staff vigorously opposes these payments being included in Rate Base which customers would pay for. LCC - seriously non -compliant with Public Utilities Act No'rth1Carolina G ee rn al Statutes cQ1 pter 62 and Commission Rules. LCC_trans_f_er_r_ed thewBay Tree `Lake water utility system ! to Bladen; Counutty witho receiving_approvarfrom_the Commission in violation of N.Ci Geno.'Stat 111(a) :. „t 1 For the last 10 years, LCC has not filed the required A ml. al -Reports with the Commission. fForthe-past 1.0 years, L-CC hasmeither filed nor paid the required Regulate- Fees? LCCThas ignored all correspondence rom the Public Staff and Commission or the past 7)0 years. - r �LCC—has conveyed, to Red Bird Land Company LLC (Red Bird) more than 17300 acres adjoining°=the B'aj rTree Lake Development which may include the land upon which the Bay,Tree Lake wastewater treatment plant,(WWTP) and effluent spray field are located. ciATE op6 ZM Red Bird execute an asset purchase and development agreement with ONSWC. Red.Bird convey all components of existing WW System to ONSWC for minimal purchase price. Permanent Solution n ONSWC pay to install expansion of VVWTP to minimum of 30,000 gpd (goes in Rate Base). J ONSWC pays for the remediation of the existing wastewater collection system (goes in Rate Base). Red Bird installs at Red Bird's cost the collection system to serve properties developed by Red Bird. ONSWC expands the WWTP beyond 30,000 gpd and receives capacity payments from Red Bird for capacity utilized by Red Bird developments. ONSWC establish with Commission connection fees for the remaining Tots in LCC's Bay Tree Lake Development. This Connection Fee to include WWTP capacity, and cost to connect to existing collection system. Query: a. Arethere really collection mains for all of the claimed 500 Bay Tree Lake Development lots? Were any of these claimed 500 lots conveyed to Red Bird? Will ONSWC expand .the existing WWTP or will -ONSWC • construct a replacement WWTP7` Public Staff — Lead Attorney William E. Grantmyre 919 733-0977 T cwilliam.grantmyre(a5psncuc.nc.gov 2