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Applicants tell PURA they will keep water fees bundled into rent for Carriage House apartments; operator says system needs no major capital work
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Summary
At a Public Utilities Regulatory Authority evidentiary hearing, applicant witnesses adopted interrogatory responses and confirmed that water service fees for the 64-unit Carriage House apartments are included in rent and that Aqua Pump will continue operating the private water system; PURA staff and commissioners pressed on asset condition, management and schedule toward a final decision.
At a Public Utilities Regulatory Authority evidentiary hearing, applicants for the proposed sale of the Carriage House apartments’ private water system adopted written interrogatory responses and described how the system is managed and billed.
Attorney Boucher introduced three witnesses for the applicant parties: Brian Krivcher, identified as the current owner of 20 Carriage House (the property owner), Douglas Smolov, representing SR Yukon (the proposed buyer), and Victor Nigro Jr., representing Aqua Pump (the current and proposed operator). Each witness swore an oath and adopted their interrogatory responses for the evidentiary record.
The most contested operational detail was billing. PURA counsel asked whether water-service fees are separately billed to tenants or included in rent. Brian Krivcher said the fee is not a separate surcharge and described the practice this way: "we give them the water for free, as part of our overall monthly lease." He confirmed the property has 64 units and said rent is set by unit size rather than by a per-tenant water charge. Douglas Smolov, speaking for SR Yukon, said SR Yukon currently has no employees and plans to use a third-party property manager for day-to-day leasing and maintenance while SR Real Estate principals would handle higher-level asset management.
Commissioners and PURA staff also pressed witnesses on the condition of the system’s physical assets. PURA staff reviewed DPH 1 (an attachment describing remaining useful life for equipment) and noted blank rows that appeared to refer to removed tanks; witnesses confirmed the blank rows reflect tanks previously taken out of service. When asked whether the system will require major capital work in the next five years, Victor Nigro Jr. said, "Not with this system. This system is relatively new with the components." He also described the plant layout, saying the pump house, wells, generator and delivery plant are located on a single lot at 20 Carriage House Drive and that the office and an end-of-main blow-off are at a different building converted to apartments.
On financing and lender conditions, Commissioner Smith asked whether the lender (identified in the hearing record as M&T Bank) will require an operating reserve at closing; witnesses said the lender will require a reserve funded at closing calculated as a dollar amount per unit, but the exact per-unit amount was "not off the top of" witnesses’ recollection and therefore not specified in the record.
PURA staff and the commissioners noted that interconnection to a nearby Yukon system could be an alternative in the future but is not part of the present proceeding. Witnesses said they have not obtained a cost estimate for connecting to Yukon water but would consider it if service became available.
Procedurally, the commissioner directed parties to file any late exhibits by April 2; indicated a proposed final decision could be issued on April 24 with written exceptions due May 1; and said the regular commission meeting to vote on a final decision is currently scheduled for May 27. Attorney Boucher asked staff to consider any feasible measures to expedite the process for lender certainty.
The hearing concluded after opportunities for redirect and additional questions were exhausted. No formal vote on the underlying application occurred during the evidentiary hearing.
