ELLIOTT 8'c ELLIOTT, P.A.ATIORNEYS AT LAW

150& Lady SinetGOIIM&IA, SOUTH CAaoLWA29201

a&hit&gsll~isw,m

November 19, 2014

1lnmam(&03) 7714555SAmsIa (&03) 771-$010

VIA ELECTRONIC FILINGIocelyn D. Boyd, EsquheChief Clerk 8& AdminisnatarSC Public Service CommissionP. O. Bax 11649Columbia, SC 29211

RB: Application ofCarolina Water Service, Inc. for Appmval of an Agreement for SewerService for thc Rose Oaks SuMivision, Phase IV, York County, in Richland County,South Camlina

Enclosed for Sing please tmd tbe Application of Camlina Water Service, Inc. for~ of anAgree&nest for Sewer Service for the Rose Oaks Subdivision, Phase IV, Richland County, SouthGuoliua. A docket number has not yet been assigned. By copy ofthis letter, I am serving the 0%caofRegulatory Staff.

If you have any questions or if I may pmvide yau with any additional information, please do nothesitate to contact mc.

Sinctsely,

Elliatt 4

Scott Blliott

SE/ibkEnclosurescc: C. Dukes Scott, Bsquhe w/enc.

BEFORE

THE PUBLIC SERVICE COMMISSION OF

SOUTH CAROLINA

DOCKET NO. 2014- -S

In Re:

Application of Carolina Water Service, Inc. )for Approval of an Agreement for )Sewer Service for the Rose Oaks )Subdivision, Phase IV in )Richland County, South Carolina )

Carolina Water Service, Inc. hereby applies to the Public Service Commission of

South Carolina ("Commission") for approval of a Sewer Service Agreement by and between

Carolina Water Service, inc. ("Applicant" or "Carolina Water"), and a developer, Rose Oaks

Development, LLC ("Rose Oaks"). In support of this Application, the Applicant would

r'respectfully show unto the Commission the following:

l. Applicant is a public utility currently authorized to operate water and

wastewater systems under the jurisdiction of the Commission in counties throughout the

State of South Carolina. Its corporate charter is presently on file with the Commission, and

an appropriate bond has been posted with same. A schedule of rates and charges for

Applicant's service has previously been authorized by Commission Order 2014- 207 issued

March 4, 2014 in Docket No. 2013-275 —WS.

Applicant's representatives for purposes of this Application are:

Legal Representative:

Scott Elliott, EsquireElliott & Elliott, P.A.1508 Lady StreetColumbia, SC 29201Tel.: (803) 771-0555Fax: (803) 771-8010

Company representative:

Richard J. DurhamPresidentCarolina Water Service, Inc.150 Foster Brothers DriveWest Columbia, SC 29172Tel.: (800)272-1919Fax: (803)791-8643rjdurham@uiwater.corn

3. Applicant is the operator of sanitary wastewater collection, treatment and

effiuent disposal systems ("sewer systems") which are located in and serve various parts of

the State of South Carolina including Richland County.

4. Rose Oaks is the developer of a residential subdivision consisting of forty-one

(41) residential lots ("Development") in the Rose Oaks Subdivision, Phase IV in Richland

County, South Carolina.

5. Applicant has sewer service available to serve the Development.

6. Applicant and Rose Oaks have negotiated an Agreement for Sewer Service

("Agreement") in which Carolina Water Service will provide sewer service to the

Development. In turn, Rose Oaks will construct and install the necessary wastewater

collection facilities to serve the Development according to the terms and conditions of the

Agreement. A copy of the fully executed final Agreement dated October 30, 2014 is

attached hereto as Exhibit "A."

7. Upon approval of the Agreement by the Commission, Applicant will provide

sewer service to the affected customers in accordance with all of the applicable terms,

conditions, rates and charges set forth in its rate schedule as may be on file with this

Commission and as amended from time to time.

8. Applicant seeks an order of this Commission authorizing Applicant to record

its project costs associated with the Agreement with Rose Oaks as utility plant in service

additions, subject to review and audit by the Office of Regulatory Staff in Applicant's next

rate proceeding.

9. Applicant submits that the public convenience and necessity will be served by

the approval of this Agreement and respectfully requests that the Agreement be approved by

this Commission. The Applicant further submits that given the nature of the agreement

between the Applicant and Rose Oaks, no hearing in this rnatter is required.

WHEREFORE, the Applicant respectfully requests that the Commission issue its

order:

A. approving the Agreement between Carolina Water and Rose Oaks; and

B. granting such other and further relief t and

proper.

Columbia, South CarolinaNovember 19, 2014

Scott Elliott, EsquireElliott & Elliott, PA1508 Lady StreetColumbia, SC 29201Tel.: (803)771-0555Fax: (803)771-8010

EXHIBIT nAu

DRR'E

NF FOR ER CEOAESS BDIVl~$ 1V

R~icRlea gmmnSL

This Agreement is entered into this~ day of OC~ 2014 by and

between Rose Oaks Development, LLC, existing under the laws of the State of South Carolina

end authorized to do business in South Camlina (ereinager referred to as "DeveiopeP), and

Camlina Water Service, lnc., a Delaware corpomtion authorized to do business in Sauth Carolina

(hereinailcr referred to ss "Utithy").

WHEREAS, Developer is the owner ofcertain real estate parcel (Tax Pamei No.

R03200-014t I), pordons ofwhich are located at English Legend Dnvc adjacent to Antique Rose

Court, Irmo, South Camlina, Richland County, heremsfter refened to ss the"~'sec"Exhibit I"); aad,

WHEREAS, Developer desires to develop the Pmperty mto s resideatial development

referred to as Rose Oats Subdivision, Phase IV ultimately consisting of forty one(41) single

Smity residences having sn estimated daily wastewater usage of smteen thousand four hundred

(16,400) gallons per day, snd,

WHEREAS, Utility is a public utiTity engaged in the business of fiunishing sewer service

to the public m its desigoated Camlina Water Service, Inc. Franchised Service Territory located

m Richland County and Pmperty is located witlun the service territory. The Utility desires to

have constructed and installed, and the Developer desnes to construat snd install, the wastewater

cogrction facilities to serve the Propndy subject to the terms and conditions of this Agreement;

WHERBAS, Developer desires Utility to provide wastewater utility service within the

Pmperty snd Utility desires to pmvide wastewater utility service accordbtg to the tenne and

conditions ofthis Agreement.

NOW, THERBFORB, iu consideration ofthe mutual covenants as hereinafter set forth,

the parties hereto agree as follows:

A~RTI

esents ons aad W'

el er

Deveiopw represents and wanants that:

i. Developer m the ownet ofor is duly authorized to act on behalf ofthe owner(s) of the

Pmperty; and,

2. Developer will cooperate fully with the Utility in any and afi applications or petitions to

public authorities deemed necessary or desirable by Utility in connection with the

oonsuuction sud installation of, and service provided to the Facilines contemplated by

this Agreement; snd„

3. Developer will convey to the UtiTity or otherwise vest in the Utility such right, title and

interest m and to such real estate as may be reasonably necessary to pernut the UtiTity to

carry out the terms and condiuous of this Agreement; and,

Developer will convey to Utility or pmvide by recorded subdivision plate such easements

or rights ofway as the Utility inay reasonably mqmre for the Utility's perforinance of its

obligations under this Agreement. Any such plate, conveyances or licensee will be m

form reasonably satisfactory to Utility's legal counsel.

ARTICLE B

Ol)' ti fpaciliti s b v I er

1. Fgcjfifies

Developer shall construct and mstafi any additional necessary was~ cogection

faciliues to serve the Pmperty, including but not linuted to mains, valves, service tat~manholes, odor contml devices, lift station(s) with emergency generator(s), and other

faciliues as are reasonably required to pmvide adequate wastewater service not

previousiy mstalled m previous phases (hereinafter referred to as the "Facilifies").

Wastewater collection mama will have a muumum diameter of eight (8) inches, except

where otherwise approved by UtiTity. The gravity sewer cofiection system shall connect

to exisung gmvtty mains on site at a point as determined by Utility. AB mahmals used by

the Developer for said Facilities shall be new, first-class, and smtable for the uses made

thereof. Developer guarantees afi construction, materials, wodnnsnslup, and the tmuble-

fiue operation ofthe Facilities (or any portion ofthe Facilities) for one year after the

Facilities (or such poruon ofgm Facilifies) are placed in service.

2. AB Facilities constructed and uwtafied by Developer pursuant to this Ardcle II shafi be

conshuctcd and instafied without cost or expense to Utility.

AB plans, specificahons aud construction of thc Facilities shaB be in actxudtmce with

applicable standards, requirements, rules and regulations ofafi govermnenta! bodies and

regulatory agencies which may have junsdiction there over, and shsfi have received the

written approval ofUtility before construction is begun, which appmval shsfi not be

unreasonably withheld or delayed.

4. Developer shall save and hold UtiTity harmless from and against all suits or chums that

may be based upon any injury to sny person or property that may occur m the course of

the performance of the construction ofthe FaciTities by Developer or by anyone acting ou

Developer's behalf, or under Developer's supennsion and control, mctuding but uot

limited to ciauns mane by employees ofDeveloper, aud Developer shsU, at its own cost

aud expense, psy all costs aud other expenses ansmg there Sum, or incurred in

connection therewith, including reasonable attorneys'ees.

5. Developer shsB obtain, with cooperation ffum Utihty, all requisite permits and zoning

and other sppmvals and all else required to construct the Faciliues, without cost or

expense to Utility.

6. Upon written acrmptsnce of the Facilities bythe Utility and interconnection with the

Utility's exisung wastewater systems, all of the FaciTities installed by Developer pursuant

to this Agreement shall become the propetty ofUtility as mstalled, without cost or

expense to UtiTity, with thc exception of the lateral service lines fmm the cleanout to each

single fiunily residence, for which the pmperty owner shaH retam ownership and

maintenance responsibility. Developer shall execute ail conveyances, licenses and other

documents reasonably requested by Utility as necessary or destmble in its opinion to

ensure its ownership of, ready acocss to, and operauon and maintenance of the Facilities.

Developer shag furnish Utility with lien wmvers m a fmm reasonably satisfactory to

Utility's legal counsel &mn Developer and Rom all suppliers, subcontractors and all

other who furnish labor, equipment, materials, rentals, or who perfOrm any services in

connecuon with FaciTines construction hermu. Developer agrees to provide to UtiTity

documentary evidence, in form satisfactory to UtiTity, sufffcient to establish the original

cost of the Facilities. Utility shall have, at all times, all right, title and interest in and to

me Facilities.

7. Developer shall not have um right to connect individual lot service coimecuons to the

Faciliues until such tune as the FaciTities have been formally accepted by the Utility,

written approvals have been received fmm all govenunental bodies and regutamty

agencies which may have jurisdicuou there over, aud all applicable connection fees have

been paid.

All connccnons must be inspected by me Utility prior to backfilling and covenng ofany

pipes. Written notice to fue Utility requesung an mspecuon ofa connection shall be

made at least forty-eight (48) hours in advance of the inspecdon, excluding weetuuuu aud

official Utility holidays.

R Should the Developer fail to comply with the fcregomg inspecuon prmnsions, Utility

may refuse service to a connecuon until such time as me appropriate mspections have

been completed.

10. Developer shall, prior to the transfer to Utility of the Facilities, grant permanent,

assignable easements sausfactory to Utility, without cost or expense to Utility,

authorizing Utility to own, operate and maintain the Facilities thmughout the Pmperty

and pmviding reasonably adequate rights ofaccess and woddng space for such purposes.

11. Developer shall, prior to the transfer to Utility of the Facilities, pmvide to Utility as-built

drawmgs, snd all other information (by both bard copy and electmruc copy), reasonably

required tc operate, maintain, aud repair the Facilities.

12. Upon Developer's sabsfaction of its obligations under this Agreement, Utility agrees to

reserve adequate utility capacity for up to forty throe (pj wastewater connections located

within the Pmperty. 8/ PPbb-re/sir/res

Other

1. Developer will prohibit, thtuugh restneted land covenant, any owner of real estate witbm

the Pmperty to oonstruct m nuuntmn any sepuc system witlun the Property.

Neither Developer nor any entity or individual af!iliated with Developer has executed or

wifi execute any agreement with any lot purctuuer in the Property or any other parties or

made any representauons to any such purcnmers or other parties hereunder such

purchaser or omar parues have acquhud any mterest in Fsciliues to be installed under

this Agreement.

ARTICLE IV

Utili Services Connection Fees Rate Char

Developer shall submit to Utility, upon execution of this Agreement, a nonrefundab!e

Plus Review Fee ofone mousand dollars ($ 1,000.00). Subsequeot agreements fur future

phases shall be subject to additional plan review fees. Upon execuuon of this

Agreement, developer shall submit to Utility a nomufunuable five hundred dollar

($500.00) Inspecuon Fee. Should the Facilities requnu additional inspection(s) iiue to

unpmper instafiation, defective or unapproved mateuals. the Developer shall pay a

nonrefundable five hundred dollar ($500.00) fee for each additional inspection reqmred.

Future phases, covered by subsequent agreements, shall also require addinonal inspection

fees.

2. Developer shall pay and deliver to Utility the sum ofmoney which is the non-recurring

servioe connection snd plant impact fees ('Tap Fees") pmvided for under Utility's rate

schedule, as approved by the Public Service Commission of South Camlins and amended

Sum umc to time, nuutiplied by the Single Family Eqmvalent ("SFB") rating set forth

therein. For the project that is the subject of this Agreement, that sum shall be a

nonrefundable fee oftwenty-et8m thousand seven hundred dollars aust no cents

($28,700.00) winch is based on forty one (41) SFEs snd the Utility's current rate

schedule, Tap Res, Plan Revrew Fec aad the uutial Inspection fee totaling tturty

thousand two hundred dollars and no cents ($30,200.00) are due upon execution ofthis

Agreement. Should it be determined by the UtiTity that the pmject contemplated by this

Agreement consrsts ofmore then forty one (4i) SFEs, then in that event the Developer

shall be requuud to pay an additional sum to Utility for each addinonal SFE usmg the

cstculstron pmvided for hercuubove conditioned upon Erst recrsvmg the sppmval fmm

Utility for such mcrease in SFEs. In addition, Developer agrees that it will not represent

to any thun party that utiTity service ts available Sum UtTiity for use within the proposed

development except (1) upon Developer's payment of the Tap Fees as provided

hereinabove, snd (2) establishment of service and an account between said hurd party

and Utility, including payment of all fees anti charges authonzed under the Utility's

approved rate schedule exceptiog tap fees.

3. Prim to the commencement ofutility service to any lot within the Property, lot owners

withm the Property are responsible for the payment to Utility of all applicable sewer fees

as amended from time to time snu at the rate then tn effect. Such fees, usage and all

other incidental rates and charges shall be rendered by Utility m accordance with

UtiTity's rates, rules snd regulations and conditions of servrce on Gte with the South

Carolina Public Servrce Commisston (the "Comnussion"), as emended &om time to time

snd then in efl'ect. Capamty shall not be reserved for any lot, out parcel, commercial

space or building for whrch the tap fee has not been paiL

Upon installanon and acceptance ofthe Facilities snd paymeot of all applicable

connection fees, Utility agrees to supply aH customers within the Property with adequate

snd customary wastewater service and to operate. maintain snd repen all Facilities as

uulicated herein, after acceptance by Utility and issmmce ofopcratiouai approvals by aU

regulatory authorities.

A~RTICIE

Coutgds~sio Ajipm~at

Within thirty (30) days following thc exccuuon of this Agrccmcnt, Utility will file an

applicanon wi(h tbe Comnnssion in conformance with Commission rules and .

regulations. Developer agrees to cooperate with Utgity in any pmceeding msulting

fiom such application anti to reunburse UtiTity its reasonable attorney fees, costs and

litigauon expenses incurred for such filing, and m addition, m the event such

applicsnon is litigated by the Office ofReguiatory Stsfi cr opposed by third pmues.

The pmvision of sewer service to the customer within thc Property is subject to the

Commission's authority.

ARTICLE VI

1. Except as pmvided in this Agreement, neither party to this Agreement shall be liable to

the other for failure, default or delay in perfouning any of its obligations hmeunder, if

such failure, defindt or delay ia caused by strikes or other labor problems, by forces of

nature, unavoidable accident, fir, acts ofthe public enemy, interference by civil

authorities, acts or failure to act, decisions or orders or regulations of any govemmenuu

or military body or agency, office or couumssion, delays in receipt ofmateruus, or any

other cause, whether of sunilsr or dissunilar nature, not within the contml of the party

atfncted snd wnich, by the exeouse ofdue diligence, such party is unable to prevent or

overcome, except as otherwise pmvided for herein. Should any of the foregoing evenS

occtu, the parues hereto agree to pmceed with diligence to do wtmt is rcasoaable and

necessary so that each party may perform its obligations uader tbw Agreement.

2. The faihue ofeither pwty hereto to enforce any of the provisions of this Agreement or

the waiver thereof in sny instance by either party shall not be construed as a general

wmver or relinrimslnnent on its part of any such provisions, but the same shall,

nevertheless. be and remain m full force and effect

The represeutanons, warrannes and agreements contained harem shall smvive, and

continue m effect. Utility agrees to indemnify Developer, us successors and assigns, and

hold Developer harmless agamst any loss, damage, l~ihty, expense or cost accruing or

resuiung fmm any misrepresentations or breach of any representation, wammty or

agreement on the part ofUtility under ttus Agreemcnt; Developer agrees to indemnify

Utility, its successors and assigns, and hold it and them harmtess atpunst any loss,

damage, liability, expense or cost of UtiTity, seeming or resuihng Rom any

misrepresentation or breach of any rcpresentanon, warranty or agreement an the psst of

Developer under this Agreement or &om any nusrepresentation m or materiaL omission

from sny cerdficatc or other document furnished or to be furnished to UtiTity by

Developer.

4. This Agreement sets forth the comptete understanding between Developer and Utility,

and any amendments hereto to be eifechve must be made m writing.

5. Notices, correspondence snd invoicing required hereunder shall be given to Developer

and to Utility at the following addresses, or at any other addresses designated in writing

ny either party subsequent to the date hereof:

If to Utility:Camlina Water Senrice, Inc.151 Old Wire RoadWest Columbia, SC 29172Attn: Mr. Richanl J. Durham, President

With copy to:Csmlina Water Sconce, Inc.2335 Sanders RoadNorthbmotr, Illinois 60062Attn; Mr. John Stover, General Counsel

If to Developer.Rose Oaks Development, LLC124 Cedar RdLexmgton, SC 29073Attn: Mr. Jolm Moore

Delivery when made by registered or certified mail shall be deemed complete upon

mailing. Delivery by overnight courier shall be deemed complete when delivered.

6. This Agreement may not be assigaed by Developer without the written approval of

Utility, which appmvat shall not be unreasonably withheld. This Agreement shall be

binding upon and inure to the benettt of the pernes hereto snd their respective successors

and assigns.

7, This Agreement shall be governed by the laws ofthe State of South Csmlina.

8. Ifdds Agreement is not executed pnor to November 28, 2014, then the terins and

conditions contamed herein will be waived, with no further obligations or responsibilities

to either party.

[Signatunn Begm on the Following Page]

IN WITNESS WHEREOF, theparties hereto have set their tends tbe day and year above Erst

vrrltteln

Rose Oaks Development, LLC

CERTIFICATE OF SERVICE

The undersigned employee of Elliott & Elliott, P.A. does hereby certify that shehas served below listed parties with a copy of the pleading(s) indicated below by mailinga copy of same to them in the United States mail, by regular mail, with sufficient postageaffixed thereto and return address clearly marked on the date indicated below:

Application of Carolina Water Service, Inc. for Approval of anAgreement for Sewer Service for the Rose Oaks Subdivision,Phase IV, Richland County, South Carolina

DOCKET NO.: 2014- -S

PARTIES SERVED: C. Dukes Scott, EsquireOffice of Regulatory Staff1401 Main Street, Suite 900Columbia, SC 29211

PLEADING: APPLICATION OF CAROLINA WATER SERVICE,INC. FOR APPROVAL OF AN AGREEMENT FORSEWER SERVICE FOR THE ROSE OAKSSUBDIVISION, PHASE IV, RICHLAND COUNTY,SOUTH CAROLINA

November 19, 2014

Legal Assistant