Latest from Eastman Highlights

Is there a Clubhouse coming down? A look at the Center Evaluation Task Force FAQ’s on Eastman’s Website  reveals the following:

2. Who is on The Center Evaluation Task Force, and what are their qualifications?

The Task Force is composed of eight members: Phil Webber (Chair), Ed Jenik, Rick Karash, Elaine Lascher, Chuck Monahan, David Philippy, Andrea Sodano and John Walters.

(Explanation: Four Board Members and four hand picked members.)

3. What is it going to cost? Will I have to pay an assessment?

The cost to replace, restore and renovate the existing Center has been estimated to be approximately $1,500,000. (This is the low estimate--the high is $5 mill +). These costs encompass the building envelope (exterior walls, roof, windows and doors), electrical, mechanical and plumbing infrastructure, interior spaces and any building code requirements. What, if anything else, does the Community want to do to this facility to make it more enjoyable and more income producing? (More income producing? Is it not losing money now and we are paying the bill?)

Pithy Quote

The problem of power is how to achieve its responsible use rather than its irresponsible and indulgent use—of how to get men (and women) of power to live for the public rather than off the public. –Robert F. Kennedy

Another Intervenor Question

This question was posed by Robert Logan and the answer he got follows and then his comment on the answer he got. This is a fascinating look into how the wheels of government work, what you can actually say and get away with—your tax dollars at work.

DW 13-171

Responses to Robert F. Logan Set 1

Data Request Received: 08/12/13 Date of Response: 09/12/13

Request No. Robert F. Logan 1-6 Witness: William S. Weber

REQUEST: The failure of the buyer or buyer’s agent to perform Due Diligence implies that the buyers are accepting the sewer capital in an “as is” agreement. Why does your agreement in the signed Purchase and Sale waive what is standard criteria in almost all acquisitions even in “simple” home purchases?

RESPONSE: The VDE has performed the necessary Due Diligence and has been updating the information as circumstances dictate. A copy of the entire Due Diligence package has been available since May 2nd, 2013 at www.eastmanh2o.org or at the VDE office during regular business hours Monday through Friday 8:00 AM to 4:30 PM.

Robert Logan’s comment on the above: 

            Every document in the entire claimed Buyer’s Due Diligence on the VDE website is a SELLER’s document. This conveys that the VDE actions are on the part of the seller. NOTHING is presented that indicates ANY independent buyer financial or engineering analysis. Would an objective person conclude that the VDE Commissioners have acted on behalf of the seller and are the seller’s agent? Is this acting in the Public Good?

Bread Again--

It is much more interesting than politics. Recently my husband and I spent some time in France and decided this was no time to kick the gluten habit, or the wine habit or the fine food habit for that matter. After stocking up on 6-8 loaves of Suzanne’s wood fired bread in July, it finally ran out. Once in France my husband’s favorite pastime is to look for boulangeries and patisseries of the highest caliber—not a difficult task, you look for the line (the queue). Before long we had to trim our croissant per day habit to a half of a croissant each and the bread and cheese habit to every few days which is hard as there is so much good cheese. We started out in Ramatuelle. We have stayed in that area many times and I am always reminded of looking for places to rent over the years and coming across one owned by a Kris Kristofferson. It was perfect, had Internet (which was rare 10 years ago), had a great kitchen (I like to cook) and a view of the Mediterranean. The only problem was the price as we were only two people. I thought of emailing him and asking if he was THE Mr. K but I never did. Instead we stayed in a farmhouse in a vineyard. After Ramatuelle we went to Aix-les-Bains where I had the pleasure of cooking on an induction cooktop. It was fantastic—water boils in a few minutes, the cooktop stays cool so you have no burned on spills, the kitchen stays cool and it wipes clean with no special cleaners. Aix is a pretty little harbor town on the largest lake in France which happens to be near a well known cooking school and thus there are a handful of Michelin starred restaurants in the neighborhood. Then it was on to the fast train to Paris where one has only to walk out the door and there are shops and restaurants and boulangeries on every block. We stayed in a 600 year old building, re-furbished of course but oh if the walls could talk, what tales would they tell?

More Q & A's at the PUC

Here is another question posed to the VDE to try and validate how they are working in the public interest as they swore an oath to do.

Eastman Sewer Company, Inc.

DW 13-171

Responses to Robert F. Logan Set 1

Data Request Received: 08/12/13      Date of Response: 09/12/13

Request No. Robert F. Logan 1-9      Witness: William S. Weber

REQUEST: Paragraph 6.04 of the signed VDE/ECA/ESC Purchase & Sale Agreement of

5/29/13 stipulates that “In the event that VDE discontinues its operation and maintenance of the sewer system, for any reason, ECA shall be given the FIRST OPTION to re-acquire the sewer system for one dollar ($1.00)…”etc. Can you please explain why you agreed to grant ECA a “most favored” buyer status?

RESPONSE: This clause was inserted as a courtesy to the community given that the ECA was the only entity that existed that was in a position pre, and now post Purchase and Sales execution, that could obtain or re-acquire the sewer operation.

MY COMMENT:  The VDE’s agreement establishes a price--$1, to return the Eastman Sewer Company after capital improvements have been made to its current private ownership (the ECA Board) which is solely responsible for all decisions and actions of ESC for the past 12 years. It is in the seller’s interest, NOT in the 500+ sewer users/ECA owners who will pay for all Capital Improvements anticipated to exceed more than $2 million cumulatively by 2016. I see no way this agreement is in the Public Interest which in this case I define as sewer users/owners.

Q&A at the PUC

Some people may be wondering what sort of questions get asked at the “Public Hearings” of the PUC, so here is an example of one I asked and the response I was given:

Eastman Sewer Company, Inc.

DW 13-171

Responses to Geraldine Logan Set 1a

Data Request Received: 08/12/13 Date of Response: 09/12/13

Request No. Geraldine Logan 1a-6 Witness: Brian Harding

REQUEST: In PUC Order No. 24.368, of September 2, 2004 in the Settlement Agreement portion, paragraph 3 states “The Settlement calls for Eastman to begin, in 2004, a 10-year program of locating, inspecting and cleaning its sewer mains. Based on the bid Eastman received from vendors, Staff and Eastman agreed that Eastman would incur an annual expense of $15,000 for this project.” Further on in the same section it is stated “Eastman agreed to report annually on the work done on the project. Staff and Eastman also agreed that, if for any reason Eastman were to discontinue the project, it  would notify the Staff immediately.” Please supply copies of the annual reports to the PUC for locating, inspecting and cleaning the sewer mains? If this was not carried out, given the risk to any buyer and sewer users why would this inspection not be a pre-requisite and in the public interest before any sale?

RESPONSE(from Brian Harding): The Eastman Sewer Company takes very seriously its commitment to maintain the system. Since 2004, ESC has spent approximately $65,000 for cleaning and inspecting of the sewer mains. This effort has encompassed 24 separate days of work by contractors, in six different years. Attached is a list of maintenance items performed by independent contractors since March 2003, with the cleaning and inspection work highlighted. Copies of invoices and payments for all work shown are maintained with sewer company records. Note – this maintenance record does not include the extraordinary number of maintenance tasks performed by our licensed operator, Water System Operators, as part of the annual contract. It also does not include any capital-related work performed.

MY COMMENT TO THIS: “ESC takes very seriously its commitment to maintain the system” however this does not include submitting any reports to the PUC, nor notifying PUC Staff if they weren’t doing it, nor do they have in their possession the reports and videos that were done. They agreed with the PUC to expend $15,000 per year for 10 years( $150,000). They spent $65,000 so what happened to the other $85,000? They declined to answer the last question as to how it was in the public interest and safe-guarded our lake to Not do this work. This also begs the question of what kind of oversight does the public get from the PUC?