la w office of - kentucky psc cases/2006-00534/western_answer_020607.pdf · la w office of /...

LA W OFFICE OF /

ATTORNEY AT LA W'

Ol'ficc Location: I15 Richmond Street Mount Vernon. Kentucky 40456

Mailing Address: P. 0. Box 1350 Mount Vernon, Kcntuclq~ 40456

Telephone 606-256-5 1 1 1 To11 Free 1-SOO-572-1343 Facsimile 606-256-2036

February 5,2007

Jerry J. Cox" jcox@!kili.net

c Public Service Commission P. 0. Box 615 Frankfort, Kentucky 40602-06 15

In re: Robert D. Peters v. Western Rockcastle County Water Association, 2006-00534

Gent lernen:

Please file the enclosed Answer of Western Rockcastle Water Association, Inc.

JJC/srnp

Enclosure

Respecthlly,

*Cf;RI IFIED CRIMINA1 1 RIAL SPEClALISl' BY N A l IONAL BOARD-OF 1 RIAL ADVOCACY

mailto:jcox@!kili.net

Jerry J. Cox, P.S.C. Post Office Box 1350

Mt. Vernon, KY 40456 606-256-5111

Fnx: 606-256.2036

COMMONWEALTH OF KENTUCKY

BEFORE THE PtJE3LIC SERVICE COMMISSIO

FEB 0 6 2007

COMMISSION

Case No. 2006-00534 PUBLIC SERVICE

In the Matter of:

ROBERT D. PETERS COMPLAINANT

V. ANSWER

WESTERN ROCKCASTLE COUNTY WATER ASSOCIATION DEFENTIANT

First Defense

Legitimate complaints of Robert D. Peters have previously been fully

addressed. See January 3 1,2006 letter and attachment from the Public Service

Cornmission attached as Exhibit A.

Second Defense

Defendant admits paragraphs (a) and (b), but denies paragraph (c) of the

complaint.

Third Defense

The demand for twenty (20) years of refunds is barred by the statute of

limitations and is outside the jurisdiction of this commission.

1

Jerry J. Cox, P.S.C. Post Office Box 1350 Mt Vernon, KY 40456

606-256-5111 Fax: 606-256-2036

Fourth Defense

The defendant continues to work toward solving the pressure problem of

plaintiff.

WHEREFORE defendant demands that the complaint of Robert D.

Peters be dismissed.

JERRY J. COX, PSC Attorney at Law P. 0. Box 1350 Mount Vernon, Kentucky 40456 Telephone: (606) 256-5 1 11

CERTIFICATE OF SERVICE:

I certify the foregoing Answer was served by mailing a true copy to Mr. Robert D. Peters, 395 Lone Oak Road, Mt. Vernon, Kentucky 40456, this the S* day of February, 2007.

2

Ernie Fletcher Governor

LaJuana S. Wilcher, Secretary Environmental and Public Protection Cabinet

Christopher L. Lilly Commissioner Department of Public Protection

Commonwealth of Kentucky Public Service Commission

21 1 Sower Blvd. P 0. Box 615

Frankfort, Kentucky 40602-061 5 Telephone: (502) 564-3940

Fax: (502) 564-3460 psc ky gov

Mark David Goss Chairman

Teresa J. Hill Vice Chairman

Gregory Coker Commissioner

January 31 , 2006

Mr. Charles W. Burton Western Rockcastle Water Association P.O. Box 627 Mt. Vernon, Kentucky 40456

Dear Mr. Burton:

Thank you for your response to our letter of January 3, 2006. Upon review, your respanses to both DTK's are accepted. We look forward to seeing the noted improvements on our next visit. .

Since re I y ,

Manager Water and Sewer Branch Engineering Division

GWW,mae C: Board Members, Western Rockcastle Water Association

Jim Adcock, investigator

w


LaJuana S. Wilcher, bcret , ry Environmental and P ' blic Protection Cabinet

Christopher L. Lilly Commissioner Department of Public Protection


21 1 Sower Blvd P.O. Box 61 5


Fax: (502) 564-3460 psc.ky.gov


Teresa J . Hill Vice Chairman


January 3,2006


Dear Mr. Burton:

Thank you for your response to our inspection report of October 26, 2005. Upon review,

DTR Number 1, you need to review meter records and devise a p(an with a schedule Submit this plan and schedule to the Public Service

DTR Numbers 1 and 2 a re rejected, as additional information is needed.

that will address their readings. Commission.

DTR Number 2, please explain how the current two tanks a re going to be updated 'io accommodate increased demand.

We expect to receive your revised responses to DTR Numbers 1 and 2 by Friday,

If you have questions regarding this correspondence, please feel free to contact Jim

January 13, 2006. A follow-up visit will be conducted in six months.

Adcock of my staff at (502) 564-3940, extension 415.

Si nce re1 y ,

IGeokge W. Wakim, P.E. Manager Water and Sewer Branch Engineering Division

GWVV:JA:mae C: Board Members, Western Rockcastle Water Association

Jim Adcock

KentuckyUnbridIedSpirit.com UNBRIDLED SP RIT

An Equal Opportunity Employer MlFlD

http://psc.ky.gov

http://KentuckyUnbridIedSpirit.com

January 11,2006

Mr~ George W. Wakim, P.E. Manager Water and Sewer Branch Engineering Division

Dear Mr. Wakim.

Here are the additional responses to the inspection performed in October. You noted in your letter that DTR Number 1 and DTR Number 2 needed additional information.

DTR Number 1-Since January 1, 2006 our field workers have read over 300 meters and we have devised a plan for them to follow.

Monday: Read at least two roads in the northern end of the county while reading master meters in the area. (If time permits they may stay as long as possible to read more roads if there is no major problems causing them to come back)

Tuesday Do all necessary paper work that morning and that afiernoon read meters that are located out 461, HWY 70, HWY 150, HWY 39(This is a very BROAD area and will be very time consuming)

Wednesday: While reading master meters that morning again, pick at least two to three small roads in the northern section (a smaller section) of the county and finish any paperwork in that area before lunch. M e r lunch begin reading meters on HWY 25 S, and all the little roads and subdivisions in that area.

Thursday: Do all necessary paper work that morning and that afternoon read meters that are located out 461, Hwy 70, HWY 150, HWY 39(This is a very BROAD area and will be very time consuming)

Friday: Read all master meters and pick out small side roads and subdivisions around the local area to read and after lunch do any necessary paperwork that needs attention before the weekend.

DTR Number 2- You will notice that I have enclosed a copy of the Preliminary Engineering report so you can see the exact cost and construction to be done.

If you need any fiirther information please call me at 606-256-8283.

Sincerely,

Charles D. Burton, President

I ,

?%is Relidnay Engheel-ing Report i 8 intended to analyze the proposed water system extension and in;prczvements that are being planned by the Western Rockcastle Water Associatjm tcr serve six first time customers with potable drinking water and tu upgrade car replace 28,500 I,F of 6-incR, 3-jnch, and 3-inch water lines throughout Rnckcac;tle, F’u1ask.i and Lincoln counties. The new customers to be served are all residendaf.

The Wes!mn Rockcatle Water Associadon provides potable wafer service to nearly 3,800 customers in Rockcastle, R k u ~ and Lincoln counties. ‘The Association purchases all water for resale from the City of Mount Vernon.

Included In this repaft am maps af the proposed service arm sflcswing the Interlded route5 of the water lines, tad the location of major appurtenances. Tn addition, project cost estimates are included which outfine the entire project costs along with the propowl financing scheme,

area to be served with potable water for the first time i s located on Stevens R173d in Rovskcastte County, There we two mr?s to be served with an upgrade to chs wafer lines that are locakd on Kentucky Highway 1617 (Scaffold Cane Road) and Rrtitibotb Subdivision in Rockcastle County. Another area to be served with a water linz replaccement is located QII Kentucky Highway 461 in Pulaski County. In addition, two tank replacements will be mnsmcted in the areas Icnawn as Scaffold Cane and Brindle Ridge which are both located in Rockcastle County, These areas are delineated on the attached maps. Tbe topographjr in tliese W G ~ S consists primarily of gently wiling hills throughout the vsley areas aa.19 dong the numerous creeks i n this area with steep ridges encountered in the Dmiel. BWHE National Forest. The land use in the valley areas i y

mainly agricultural with some light timber hamesting. Withirr the proposed area, there are no mijar industrial. or commercial businesses.

The residents located OR the Stevens Road have never been served by a public uater system and most rely on camaunliLy spxjngs, t’amjly wells, or depend on water truck:, to provide them with their porablle water Mosr individuals pay t o have their wftzr

01/12.:2886 13: 53 50283511373 PAGE El3

delivered and those who cannot afford to pay local water haulers. transport their w&x by meaxis af barrels, bucket, or other containers. They often makc daily trips to the nearest water source, none of which are monitored by an approved health agency. It is not anticipated that a significant growth pattern will emerge as a result of t h e irnplemcntation of a chrnestic water supply but rather that the standard of living for those resrdents will be greatly improved.

me Westem Rockcastle Water Association executed a contract in 1993, w i t h the City of Mount Vernon to purchase 10 rrdlion gallons of water per month for 45 years The City has recently completed the constructing a new water treatment planc and the water purchase agreement has been mended to reflect a longer term and a lxger allotment The Association operates a distribution system thtPt serves nearly 3,800 residcntial and nonresidrlntial customers that reside throughout Rockcastle. Lincoln and Pular,kr Counties.

The Western Rockcastle Water Association operates the water system through a Board o f Directors, Office Manager, office personnel and field persome!.

fnformstjon regarding the current sate structure, annual operating and maintenance data and a tabulation of the users for an annual. period by monthly usage categories and sevenwe, will be aadyzcd in the Summary Atidendun? which will be inciuded in the Kmtucky Guide 7A.

This project is intended to eliminate n serious health hazard in the cnmmuniries in ivhich it will serve, to improve service to areas that are senred by undersized water lines, rind to address a low water supplly problem that exist,s in the areas of the Scaffold Cane tank arid Briridle Ridge tmk, The proposed service area, Stevens Road, has long been faced with inadequate and am$afe sow-ces of water. For many years, the residents have petitioiizd county officials in an attempt to secure a public water system. This need has been well documented by the Cumberland Valley District Health Department. The vast majority of samples taken (95%) were contanhated with high levels of fecal coliform. 'The persmal health md sdety of the residents are threaterietl by the use of lhesr cantaniinated supplies and the financial burden of having to haul. water for pe.rsond and f m h g needs is substmtial.

It i s anticipated that six homes will be immediately affected by the prgjecl. The proposed service mea is shown on the attached maps, and is located in a geographic area where rock conditions are prevalent. Tine Earrain is over laden with visible rock outcmppingi and nunlemus creek crossings with limited access along the public roadway.

MUNAECH ENG ,

V, AL"ER.NATI[VES CONSIDEREP

Based on the fact that there we no other major potable water suppliers that exist in this area, the only practical potable water supplier that would consider serving these areas IS the Western Rockcastle Water Association. There are no other practical alternatives thilt could be considered, The Western Rockcastle Water Association IS supplied water by the City of Mount Vernon. Both of these entities are regulated by the Kentucky Division of Water and have a history of compliance with the Division's regulations and policies. Therefore, it was determined that the.% m a s would bi: best served by a water system built, owned, operated and served by the Western Rockcastle Water Association.

VI. PROBQSED PROSECT

The project entails the con$tructian of a &inch water transmission main to replace a n existing 4-inch water main on Kentucky Highway l617,, also known as Scaffold Cane Road. This transmission upgrade will provide a better service to the northern a r m of the system and provide a water supgIy to a new 100,000 gallon water storage tank that will replace an existing 20,000 gallon tank at Scaffold Cane. The trmsrnission and tank upgrwde will also alleviate a water supply pr~blem the Association has experienced recently due to con~nuous growth in the northern area.

This project also includes a new .(%-inch transmission main on Kentucky Highway 461 to replace an existing 4-inch line in the southern area of the system knowrl as Level Green This upgrade will eiigninde a short section of deteriorating water main rhar has caused the Association a continuous maintenance problem over the years. A 3-jnch waterline will be installed on rhe Rainbow Subdivision Road to replace an existing 2-inch water line, which currently serves approximately 20 customxs. A new 150,000 gallon tank will be constructed to replace an existing 50,000 gallon tank that is known vi Brindle Edge Ymlk ne= Brorihead, Kentucky. The Brhdle Ridge tank upgrade. will improve the water supply to an area that i s known as the Copper Creek area, which has experienced rremsndous growth and i s continuing to grow. New telemetry contra!s will be installed on a11 existing pwnp stations in the Western Rockcastle system,

J

The project also proposes to construct a small water line extension of approximately 3,000 1 1 of 3-inch waterfine that will serve six new customers in Rockcastle County. Plense refer to tfPe attached map for the location of this extension. The project will provide all necessary appurtenances and meter settings to the custmner's property linc.

The analysis of the Association's ability to finance and in turn own and operate the extension i s itemized in the Summary Addendum, which will be submitted at a later d3te This data will evaluate and compare the current and expected revenues as i! result of the sale of water, operation and maintenance COSLS, orhrr niiscellaneous income and costs, and a summary of the long-term debrs including their annual principle and intcrcst payments.

An analysis of ke cwtomer moathiy water usage and associated revenue genetarion wi!l be included and will be based on actual water sales for a one-year period. The Westcm Rockcastle Water Association will supply this infcjrmacion.

The project cost has been ssfimntd to be $940,000 and i t is to he financed by a $470,000 loan from Rurd Developmnt and a $470,000 grant from Rural Development.

Based on che desperate need for the residents io the Steven? Road area 10 have a potable water supply and to improve adequate water supply in areas served nn communities described herein it is recommended that the Western Rockcastle Water Associarim pursue that financial assistance as outlined above s o that Lhis urrheaIthy situation can. be corrected. 3% Western Rockcastle Water as so cia ti or^ is the unIy major supplier of potable water n e ~ c &ase m a s and eheir system is situated sticfi that the extension and hprovsments as prpropcsed can be made Without adversely affecting service to their existing customers.

PROCESS FQR R E V I W ON I c w DATE? Qciuber 7,2004

C. smta

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8.

9,

10.

WIlf comply wiih the lntergovmrnental Pemnnel kd of 197'0 (42 LI 3 C. $$4728..8763) relating lo prescribed standards for mwlt ~ysterns fw praograrns funded under ana of the 19 ststUtes or reegulellms specifled In Cyspe:ndlx A of OPM's Standards far a Merit System of Psmonnel Administration (5 C.F, R, 900, Subpart F).

Will comply with the Lead-Based Palnt Pdsenlng Prevenhn Act (42 U.S.C. $@480l el seq.) %filch prbRIMn the use of leead-bad paint in wnstrudion or rshabllltath 0: residonce structures.

Wlll comply with all Federal statutes reladng to non- disajmlnatlon. These indude but 818 not limlbd to: (6) Tale VI of the CMI Right8 A d of lW.4 (P.L 88-352) h l c h prohibits discriminethr, on the basis of race, calm or mtiariel orlgln; (b) Title IX of Ihe Edwseitldn Amendmmki of 1972, 86 amended (20 U.S.C. ggl5al 1683, and 16B5-7686), whl& prMibits cldscrimlna!fsn on the bask of ssx; (c) SwUon 504 of ti19 R&&iiltaHon Act of 1973, as amendad (29 U.S.C. 5T@4J, which prohibits disaiminetjon ah the basis of handicaps; (d) h e A@ Dl.kdPninaUOn Act of 1975, 89

amended (42 U.S.C. $j§6101-6107), M!CR prohlblts

C m e and Tresmnt Act of 4972 (P.L. i12-255), a5 srneindmi, relating to nmtdiscrimhatimi on the be& of drug abuse: (f) the Comprehensive Alcohol Abuse and Mahollsrn Prmention, Treatment and Rehabilitation Act of $970 (PL. 91416), a$ amended. relating to riondismmination on W3 baslii of alcohd abuse or alcoholism; (9) $&523 end 527 of the Publlc Health Service Act of 11912 (42 U.S.C. 55290 dd.3 and 290 ee 3), as mended. relating to conflilentiallty of alcohol and drig a h s e patlmt rmrds: (hi Title Vlll of the Clvll Rights Act of lD68 (82 U.S.C. $53601 ol sea.), as Bmendeci, rektlng to t70f?dl6Cripnlnatlot1 In We sale, rental or finarrchg d hbuaing; (1) any other nendigcrirninalian pmvisions in the specific statutejs) under wftlch uppllcetlazo for Fedessl assirjtarxx Is belng made; and, (j) the rquiremenrs of any other nondiscthirwlion stetule(s) which may apply to the

dlnctlrninatlon on the &?dU Qf am; (E) thts Drug &Use

EPppIlcatlon.

Nahnal Envlmnmenml Pallw A d of I369 (P L 94- 190) and Exemlve Order (EO) 11514; (b) notifiwtii;n d vlolatlng facilities pnrwant lo EO 1173a; (c) protrxthn af wetlands pursuant to EO 11990, (d) evahrstfon of flood hazards In floix9plairts In accor&nce with EO 11988. (e) Csssuranm of project consistency wfth the approved State mnegerrnent program dewdoped under the Cdestel Zone Management Act of 1972 (16 U.S.C. $$145t et seq.); (f) Gnnformrty of Fedem! acttons to State (Ckan Alr) Implementation Plans under Section Ittz(c) 5f lhe Clean Air Act of ,1955, as amend4 (42 U.S.C $57401 si seq.): (g) profedon of undergmrrnd swrces OQ drinking water mder !he %fe Drinking Water Act of 1474, as amended ( P L 93-523); and, (h) pmtection of sndwgered species under the Endangered Species Act d 1973, as amended (P.L. 93-205).

1g. Wlll cblnply with the Wlld and Scenic Rlvers Act of 1968 (16 U.S.C. S§iZTl et stq ) d a t e d io protenlng camponant$ M potentid components of the nalional wlkl and scanlc d v m system.

17. Wl asslst .he owardlng agency in a s u r h g complierice wlth Stsctbn 105 of the Netlonel Histwic Preservdllon A& of 1966, ad amended ( I S U.S.C. $4701, EO 11593 (IdEtntdfkallon and protection of historic properties), and t k Archaeological and Historic Preservation Act of 1974 (18 U.S.C. !j§468a-7 etseq).

Will cause to be perfmed the requlwd financlal irnd mrnprlzocz? stadits in wcordbnce with the Sic:gJe AudJt Act AMc?ndmmt& cf 1936 and OM3 ClraJlar Mo A-133, AM^ of Sbtes, Local Governmmks, and Mon-Prafit Organizetlons."

16.

Western Wockcaietle WiaQor Irgeimciatbn Oclober 7, 2004

J (Raw. 7-97) Pmck

01/12/2085 13:53 58233'31373 P A G t ir?

PROGRAM NARRATIVE

The Western Rockcastle Water Association is in need for improvements throughout the water system which serves the western, northem, and southern areas of Rockcastle Countjj, eastern portions of Lincoln County, and northern portions of Pulaski Couricy. These improvements inclade the coristruction of ip 6-inch water transmjssion main to replace an existifig &inch water main on Kentucky Highway 1617, also known as Scaffold Cane Road, This trsansdssion upgrade will provide a better service to the northern area of h e system and provide a water supply to a new 100.000 gallon water storage tank that will replace an existing 20,000 gallon tank at Scaffold Cane. The trmsmbsion and tank upgrde will also alleviate a water supply problem the Associaticn has experienced recently due: to continuous growth in the northern area.

This project also includes a new 4-inch &ansmission main OR Kentucky Highway 461 tn replace an existing 4-inch line in the southern area of the system known as Level Green. This upgrade will elidnace a short section of deteriorating water main that has caused the Association a continuous maintenance problem over the years. A S i n & waterline will be installed on the Rainbow Subdivision Road ra repface a 2-inch water line, which cunently serves approximately 'EO customers. A new 150,000 gallon zank will be constructed to replace an existing §Q,OOO gallon tank that is known as Brindle Ridge Tank neer Bmdhead, Kentucky. The Brindle Ridge tank upglade will improve ihc water supply to an area that is known as the Copper Creek area, which has experienced tremendous growth md is conthuing to grow. New telemetry controls will be installed on all existing pump stations in the Western Rockcastle system.

The project dso proposes to construct a small water line extension of appruximatcly 3,000 EF of 3-inch waterline that will serve 6 new customers i n Rcsckcastlc County. Please refer to the actached map for the location of this extsnsicrn. The project will provide all necessary appurtenances and meter settings to the customer's property line.

The, Western Rwkcwstle Water Association will awn and operate the proposed water system extension and upgrades. The additional water will be provided by the City o f Mount Vernon, which has, more than adequate capacity to s e n e the extension and upgrades.

The Association is requesting a $470,000 Rural Development Grant and a 5470,OOCJ Rural Development Loan far a total project cost of $840,000 based upon the engineer's estimate,

Solid waste in Rockcastle County is collected by private haulers and taltcri IO E.R. Hopper & Sons landfill in Lily, Kentucky (Permit No. 063-00003).

i UNIT TOTAL COST - COST

$6.00 $1 8,000.00

400.00 aoo 00 2 EA 1,000.00 I 2,000.00

1,5cr0.00 1,500,OQ

Inch Gate Valve ._1__-. ,- .

250.00 1,500.00

r i i r . l C i 3

500.00

$38,100.00

$42,000 .OQ 4-


LaJuana S. Wilcher, Secretary Environmental and Public Protection Cabinet

Christapher L. Lilly Commissioner Department of Public Protection


21 1 Sower Blvd P O Box615

Frankfort, Kentucky 40602-0615 Telephone (502) 564-3940

Fax (502) 564-3460 psc ky gov




January 31,2006


Dear Mr. Burton

Thank you for your response to our letter of January 3, 2006. Upon review, your responses to both DTR's are accepted. We look forward to seeing the noted improvements on our next visit. .

Sin cere I y ,

I Gkorge W. Wakim, P.E. Manager Water and Sewer Branch Engineering Division

GWW:,mae C: Board Members, Western Rockcastle Water Association

Jim Adcock, investigator

Governcr Ernie Fletcher ;i LaJuana S. Wilcher, i cret ~ ry Environmental and P blic Protection Cabinet I

Christopher L. L-illy \ Commissioner Department of Public Protection


21 1 Sower BIvd PO.Box615


Fax: (502) 564-3460 psc.ky gov



Gregory Coker commissioner

January 3,2006

Mr. ChaFles W. Burton Western Rockcastle Water Association P.Q. Box 627 Mt. Vernon, Kentucky 40456

Dear Mr. Burton:

Thank you for your response to our inspection report of October 26, 2005. Upon review, DTR Numbers 1 and 2 are rejected, as additional information is needed.

DTR Number 1, you need to review meter records and devise a p(an with a schedule Submit. this plan and schedule to the Public Service that will address their readings.

Commission.

DTR Number 2, please explain how the current two tanks are going to be updated to accommodate increased demand.

We expect to receive your revised responses to DTR Numbers 1 and 2 by Friday, January 13, 2006. A follow-up visit will be conducted in six months.

If you have questions regarding this correspondence, please feel free to contact Jim Adcock of my staff at (502) 564-3940, extension 415.

Si ncerel y , i

c W) tL-6-

W. Wakim, P.E. Manager Water and Sewer Branch Engineering Division

GWW: .]A: m a e C: Board Members, Western Rockcastle Water Association

Jim Adcock

Kentucky [.In b rid IedS p i rit corn An Equal Opportunity Employer MIFID

January 11, 2006

Mi. George W. Wakim, P.E. Manager Water and Sewer Branch Engineering Division

Dear Nr. Walum:

Here are the additional responses to the inspection performed in October. You noted in your letter that DTR Number 1 and DTR Number 2 needed additional information.

DTR Number I-Since January 1 , 2006 our field workers have read over 300 meters and we have devised a plan for them to follow:

Monday: Read at least two roads in the northern end of the county while reading master meters in the area. (If time permits they may stay as long as possible to read more roads if there is no major problems causing them to come back)

Tuesday: Do all necessary paper work that morning and that afternoon read meters that are located out 461, HWY 70, HWY 150, HWY 39(This is a very BROAD area and will be very time consuming)

Wednesday: While reading master meters that morning again, pick at least two to three small roads in the northern section (a smaller section) of the county and finish any paperwork in that area before lunch. M e r lunch begin reading meters on HWY 25 S, and all the little roads and subdivisions in that area.

Thursday: Do all necessary paper work that morning and that afternoon read meters that are located out 461, Hwy 70, F-fMry 150, HWY 39(This is a very BROAD area and will be very time consuming)

Friday: Read all master meters and pick out small side roads and subdivisions arourid the local area to read and after lunch do any necessary paperwork that needs attention before the weekend.

DTR Number 2- You will notice that I have enclosed a copy of the Preliminary Engineering report so you can see the exact cost and construction to be done.

If you need any fh-ther information please call me at 606-256-8283,

Sincerely,

Charles D. Burton, President

‘ 1

I f

This 1Frr.elimlnary Eaginleetifig Rep013 is intended to malyze the proposed water system extension and improvements that are being planned by the Western Rockcastle Water Association tr;F serve six first time customers with potable drinking water and tv upgrade Tar reyllice 28,5131) LF of &inch, 3-inch, and 3-inch water lines throughout Rockcastle, Pulmisjki and Lincoln counties. The new customers to be served are all residen:la!.

ISie lVeslt?pn Wockcastfe Water Associadon provides potable. water service IO nearly 3,300 custon!ers in Rockcastle, FWwG and Lincoln counties. The Association purchases all water for resale ~ ~ Q T J I the City o f &lotint Vernon.

Included 3n this ~ : p ~ r t art: maps czf the proposed service area showing the intended r'oiite~ of the water lines, imd the Incatinn of major appurtenances. f n addition, project COS!

estiar,ates are included which outline the entire project costs along with the propowd Financing: scheme,

'I'he area Eo be sen~ed with potable water far the Fust time i s located on Stevens Road in Rmkcosde County, There we two ~ B S to be served with an upgrade, to the wafer lines that me located on Kenrucky Highway 1617 (Scaffold Cane Road) and Rainhow Subdivision in Rockcastle County. Another area to be served wi th a water l in2

replacement is locared an Kentucky Highway 461 in Pulaski County. In addition, two tank replacements will be constructed in the areas kiuluwri as Scaffold Cane and Brindle Ridge which are boa located in Rackcastle County. These areas are deiineated an ctie attached maps. "he topngraphjj in these areas consists primarily of gently rolling hill5 throughout ehe valley areas and along the numerous creeks i n this area with steep ridges encountered in the Daniel, BOOIA~ PIatkmd Forest. The land use in the valley areas is mainly agricultural vihth some light ti.mber Ihan~scing. Within the proposed area, there are no mdjm industrial OT commercial businesses.

The residents located on the Stevens Road have never been served by a public ~ a t e r system and S ~ S S ~ rely on community springs, Fwnjly wells, OT depend 011 water trucks to provide them with their potable w m r Most individ~alq pay to have their water

delivered and those who cannot afford to pay local water hzulers. transport their wirer by rneaxls of barrels, bucket, or other containers. They often make daily trips to the nearest water source, none of which are monitored by an approved health agency. It is not anticipated that a significant growth pattern will emerge as a result of the implemcntation of a domestic water B U ~ ~ I Y but rather that the standard of living for those residents will be greatly improved.

The Western Rockcastle Water Association executed a contract i n 1993 with {he City of Mount Vernon to purchase 10 million gallons of water per month for 45 years The City has recently completed the constructing a new water treatment plant and the water purchase agreement has been mended to reflect a longex term and a larger allotment The Association operates a distribution system t h ~ t serves nearly 3,800 residentiul and nonresidrntial custcbmers that reside throughout Rockcastk. Lincoln and Pula!,kr Counties.

The Western Rockcastle Water Association operates the warer system through n Board of' Directors, Office Manager, office personnel and field personnel.

lnformatjon regarding &e current rate structure, annual operating and maintenance datii and a tabulation of the users for an annual p&od by monthly usage categories ricd F C Y ~ ~ L S ~ , will be analyzed in the Sum19ty Addendum which will be included in the Kentucky Guide 7.4.

IV

This project is intended to eliminate 8 serious health hazard in the cornmuiiities in which it will sewe, to improve service to weas that are sewed by undersized water lints, and to address a Inw water supply problem that exists in the areas of the Scaffold Cane lank m d Brindle Ridge tank. The proposed service area, Stevens Road, has long been faced witli inadequate and unsafe same3 of water. Far many years, the residents have pztitiomsd coirnty officials j 2 an attempt to secure a public water system. This need has been well documented by the Cumberland Valley Ljistrict Health Department. The vast rnajori ty of samples taken (95%) were ccrnrdnated with high levels uf fecal coliform. The: pers0na.I health and safety of the residents are threaterled by [he use of these contaninated supplies and the financial hurden of having to haul. water for personal and farming needs is substimtial.

It i s anticipated ha t six homes will be immedintety affected by the pr:)jecl. The proposed sewice area is shown on the attached maps, and is locared in a geographic area where rock conditions a ~ e prevalent, The terrain is over laden with visible rock outcrnppings and nuniemus creek crossings with limited acces along the pubItc roadway.

81/12/2885 13: 53 5629391373 PAGE 84

Based on the fact that there art: no other major potable water suppliers rhat cvist in this area. the only practical potable water supplier that would consider serving these areas 15

the Western Rockcastle Water Association. There are no other practical alternulives that could be considered, The Western RockcastlIe Water Association is supplied water by che City of Mourat Vernon. Both Of these entities are regulated by the Kentucky Division of Water and have a history of compliance with the Divisian's regulations and policies, Therefore, it was determined that thew m a s woald be best served by a water system built, owned, operated and served by the Western Rockcastle Water Association.

VI. PROPOSED PROSECT

%he project entails the conSVuceian of a 6-inch water transmission main to replace a n existing 4-inch water main on Kentucky Highway 1617, also known as Scaffold Cane Road. This transmission upgrade will provide a better service 10 the northern area of the system and provide a water supply to a new 100,ooc) gallon water storage tank that will replace an existing 20,000 gallon tat& at Scaffold Cane. The trzinsrnissian an3 t3nk upgrade will also alleviate a water supply problem the Association has experienced recently due to continuous growth in the northern area.

This project also includes a new 4-inch trabsmissian main oil Kentucky Hlghwoy 461 to replace an existing 4-inch line in the southern area of the system k n o w as Level Green. This upgrade will eliminate a short section of deaeriorating water main thar has caused the Asscciaikn a continuaus maintenmcx problem over the years. A ]-inch wnterlinc will be installed an the Rainbow Subdivision Road to replace: an existing 2-inch warer line, which currently serves approximately 20 customers. A new 150,000 gallon tank will be constructed to replace 3n existing 50,000 gallon tank that is kncwn as Brindle Kdge Tank nea Brodhead, Kentucky. The Brindle Ridge tank upgrade will improve the water supply to an area that i s known as the Copper Creek area, which has experienced :remendous growth md i s continuing to grow. New telemetry contro!s will he installed on all existing pump stations in the Western Rockcastle system.

The project also proposes to construct a small water line extension of approximately 3,000 LF of 3-inch waterline that will serve six new customers i n Rockcastle County. Please refer to the attached map for the location of this extension. The project will provide ail necessq appurtenances and meter settings to the customer's property line.

J

The analysis of the Association's ability to finance and in turn own and nperale the extension i s itemized i n the S u m n q Addendum, which will be submitted at a later date This data will evaluate land compare the current and expecrsd revenues as a resulr of the sale of water, operation and maintenance costs, other miscellaneous income and costs, and a summy of the long-tern debts including their annual principle and intcrcst paymmts.

An analysis of the customer monthly water usage and associated revenue generation will be included and will be based on acmd ivazer sales far a one-year period. The Western Rockcastle Water Association will supply this infcmmcian.

The pmject cost has been estimated to be $940,000 and it is to be fin;ulced by L). $470,000 loan from Rural Development and iz $470,000 grant from Rural Develaprneflt.

Based on the desperate need €or the residents in the Stevens Road area to have 3 potlibk water supp1.y a d to improve adequate warm supply in areas served in crjriimunitirs described herein it is recommended that thc Western Rockcastle Water Assozjaiion pursue that financial assistance as outlined above so that this unhealthy situation can be corrected. The Western Rockcastle Water Association is the only majrtr cupplier of potable water new these areas and their system is situated such that the axtension and irnpravcments as gropcsed c;ut be made WjthQUt adversely affecting S B T V I C ~ to their earisting customers.

STATE EXECUTIVE

"-

8 8

B. Wlll comply wIih the Intergovmmental Pemnnel Act of 1970 (42 U.3 C. §$4728-4763) rotating to prescribed standards for merlt 1rysti3ms far programs funded U ~ & P ORB of &E 19 stetuts bf roguliatb~~ $pMad In Apmndk A of QPM‘s Standards for a Merit System of Penonnal Administr’atlon (5 C,F,R, 800. Subp8tt Fj,

9. mll compty vdth the Lead-Eamd Palm Polsaning Prevwtkn Act (42 U.S.C. §§4801 et seq,) Lvt;leh prdhlbit~ the use of k i d - b w d pelnt in construction or rshablllh~tbn of residot;ce struucturss.

10, Will wrnply with all Fe‘edarsi statutes relsdng to non disairnbnatlon. These indude but ere rwt lirnlted to: (a) TRle VI cd the CMI Right6 Act of lgS4 (P.L 88-352) MIIiICh prehibits discriminatlor, on the besis of race, calor or national cdgln; (b) Titie IX of fie Edwcatlon ArneMmmE of 1972, as amended (20 U.S.C. ggl6e.l 1683, and .t6B!&l685), MI& PFahibitS discdrnitlna!fon on the bask of sax; (c) SwUon 504 d the RbhaMitetion Act of 9873, as arnendad (29 U.S.C. 5794), vvhlch prahiblts dlsaimlnetlon on the basis of handimps; (d) the A@ DiscAmInaWon Act of 1975, 2s amended (42 U.S.C. $jg6l!l1-6’lilo7), v&!h prohlblts dJw&%lnation on the b s l u of ,?I*; (e) the Drug &use mtim smd Treatrmnt ACA of ?e72 (P.L. ~ 2 - 2 5 5 ) ~ 35 amendmi, relating tn ncmdiscrimhie!imi an the basis of drug abuse: (r) tho Comprehensive Almhol Abuse and BJcohcllsrn PrwlmMon, TrWitmant end Rehabilltation Act of 1970 (P.L.. Y1416), 85 amended, relating to riondb~minstion on !ha basis of alwhd abuse or almholism; (0) s523 end 527 of the Public Healih Service .kt of 4912 (42 U.S.C. $5290 663 and 290 e:: 3}, as amended. rehting to ?finfidentlelity of olcnhbl md dmg ahme patlent r ~ ~ r d s : (h) Title Vlll of the Clvfl Rlghgs Act d 1968 (42 U.S.C. $ f i X O l irl seq.), aa amended, rslatlng to nmndlscrimlnation tn the $ale, rantst or hamirig of h3b!$ing; ( I ) any cther nandBcrirninalimn provisions in the speadfio statute js) under whlch appllmtkm fer F e d w l assktance Is Mnl; made; and, (J) ihe rqulrernenis of any other nondiscrirnitwtian stelute($) whlch may apply ta the appJicatlon.

4tsndard Ftpm 4240 !Rev 7.97)

Bmrwrfbed b.1, QMB Clrculer A-102

12.

13.

14.

15.

"iathsnal Environmental Policy A& cF :358 (P L 91- 190) and ExewBvb Order (EO) f 1514: (b) notrfrcatron d vlalatlng facilities pursuant lo EO 11738: (c) protection of wettand~ putsvarit to E& 71990, ( d ) ewahrsllun of fled h a a r b in Rodplains In accordance with EO 11988. (e) Sssurance project consistency wlth the 8 p p f ~ e d Stat@ mr?eg@ment program devaloped lander the Coestd Zorrs Management Act of 1872 (16 U SC. §$I451 et 4eq.I; (9 mnformrty of Federsl actton6 :o Slat4 (Clean Air) Implwnsniatlclt Plans wnder Section 17BIc) of Ihs Cleen AJr Act of 195s. as amefldwi (42 U.S C $57401 e1 seq.): (g) protectJon of undergmwd sources ai drfnking water Ynder (he Sei9 Onnking Water Act uf 1974, a6 smanded (P L 93-523); and, (h) pmtectlrrn of endangered smdes wnder the Endangered Species Act of 1973.8s arriended (P.L 93-2033.

?B, Wlll comply with the Wald and Sceriic Rivers Act of f968 (18 U.S.C. 55127'1 et sq.) related 10 prateairi(j mmpoonents w patentid components of the naLional WM and %c~nlc rivers system.

47. Wl assist the owardlng agency in asuring cxmtplianca Wlib Sectbn 'to6 of the Nellanal HIsiMtc P r e ~ e ~ b i l o n Act of 1966, 8s amended (16 U,S.C. 54701, EO 44593 (Identffkatlon and protection of hlstoric properties), and Ik Archamlogicai and Histotic Presemtiun Act of 1974 (18 U.S,C, @469al et seq 9.

15. Will cause to be performed the requlmd Rnancial and cornfllsncs audits in FiccodGrice 'wkh the Single Audlt Act Amera~crlnts of 1936 and bMB Clrailar No. A-433, "Aw3k of States, Local Cmwmmants, and Non-Prafit Organizations."

Mll cornpiy MAth all appJicabls requirements of all arher Federal laws, executive orders, regtdaffans, end policies pvarnlng fhk p a g r i m .

19.

E11/12/2WU6 13: 53 5Q26’331373 tJACjt i M

PROGRAM NARIL4TWE

The Western Rockcastle Water Association i s in need for improvements throughout the water system which serves the western, northern, and Southern areas of Rockcastle County, eastern partions of Lincoln County, and northern portions of Pulaslci Gounry . Thtse improvements include the construction of a 6-inch water transmission main to replace ad existing .$-inch water main on Kentucky Highway 1617, also known as Scaffdd Cane Road. This transmission upgrade will provide ti better service to the northern area of Ihr: sy;ystem and provide a water supply to a new 100.000 gallon water storage tank that will replace an existing 20,OQO gallon tank at Scaffold Caoe. The trmsmission Eand tank upgrade will also alleviate a water supply problem the Ascociatian hats experienced recently due to continuous growth in the northern area.

This project also includes a new 4-inch transmission main on Kentucky Highway 46 1 io replace an existing 4-inch h e in the southern area of the system known as Level Green. T h i s upgrade will eliminate w short section of deteriorating water main that has caused rbr: Associadon a continuous maintenance problem over the years A 3-inch waterline will be installed on the Rainbow Subdivision Road Io replace a 2-inch water line, which currently serves zpproximately 20 customers. A new 150,000 gallon tmk will be constructed to replace an exisdng 563,800 gallon tank that i s known as Brindle Ridge Tmk near Brodhed, Kentucky. The Brindle Ridge tank upgrade will improve the water supply to an area that is known as the Copper Creek area, which has experienced tremendous growth sand is continuitig to grow. New telemetry cazntrols will be installed on d l existing puny stations in the Western Rockcastle syriem,

The project also proposes to construct a small water iine. extension of appnnitnatdy 3,000 EF of 3-inch waterline: that will serve 6 new customers i n Rockcastlc County. Please refer to the attached map for the l o c a t h of this extension. The project will provide dl inecesmry Eppurtenances and meter settings to the customer’s property line.

fie Western Rockcastle Water Association will own and operate the proposed water system extension and upgrades. The additional water will be provided hy the City of Mount Vernon, which has more than adequate capaciry to serve the extensioi) and upgrades.

The Association is requesting a $470,OQO Rural Development Grant and a 5470,001) Rural Development Loan for a total project cost of $940,000 based upon the engineer’s estimate,

Solid waste in Rockcastle Counzy is collected by private haulers atid rajieri IO E.R. Hopper & Sons landfill in Lily, Kentucky (Permit No. 063-00003).

A4saage Cost'C us t 0 m ~4 r $4,666.67

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