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Friday, July 29, 2011

Lakeview Water and Mountain Sewer owner bugs out under investigation pressure.

It was learned recently from Melvin Smith, Ron Catanzaro’s attorney
in the Ogden area, that Catanzaro has left the State of Utah for Nevada.

As reported in this blog, Mountain Sewer Company has been the subject of a Formal Complaint and investigation by the Utah Public Service Commission (PSC) regarding operating problems and billing questions regarding both Mountain Sewer and Lakeview Water Corporations.

Our information is that Catanzaro turned over most or all of his assets to the owner of A-1 pumping pending approval of the Public Service Commission. These assets include both Mountain Sewer and Lakeview Water Corporations. Word on the street is that Mountain Sewer owed A-1 pumping and other vendors substantial unpaid bills for services.

At the pre hearing conference on July 19th the Public Service Commission law judge indicated that a complete audit of Mountain Sewer as requested by the complainants would be one of the first orders of business, and the parties would reconvene in about a month to to discuss the audit results and set the date for the Formal Hearing. It appears that Mr. Catanzaro did not want to face the PSC audit results and examination of his operating procedures detailed in the formal complaint, so he decided to sell out and leave the area.

An initial meeting between the prospective new owner of Mountain Sewer and Lakeview Water corporations and the Ad hoc committee of utility users that filed the formal complaint against Mountain Sewer was held on July 28th. The purpose was to air out some particulars about the sale and transfer of assets and responsibilities and to have some utility customers meet the new owner so they could get to know each other. The new owner committed to working with the users to resolve current outstanding issues and he promised to stay in communication with the utility users on the operations and plans for the future for both corporations. A check with the PSC staff indicated the normal timeframe for approval of an uncontested sale of a PSC regulated company is from 45 to 60 days.

It is not clear as of this writing how this transfer of assets will affect the pending PSC formal complaint or what the reaction of the possible sale is from the Weber County Commissioners who have been the body politic for oversight for Mountain Sewer for many years.

Update on Lakeview Water and Mountain Sewer

A correction to the initial post: The new owner of Mountain Sewer and Lakeview Water is the father of the owner of A-1 Pumping.


Joltin Joe said...

Good for the customers of Mountain Sewer and Lakeview Water. If the new owner assumed all of the assets, he is liable for debts on taxes, other vendors, etc. etc. So if Catanzaro owes anyone money, you may be able to collect from the new owner.

Grizelda said...

So somebody caught up with Catanzaro at last! No telling how much he owes around Northern Utah. It is apparent by the tax rolls, he owes Weber County a bundle of property taxes that have been delinquent for years and he lost his butt on his properties to some banks that last few years.

As a resident of the Valley for many years, I have noticed that it has always been his thing to bug out on a responsibility when the going gets tough.

Mitzy said...

The word around the valley is that Catanzaro did not sell to the people that were being examined by the PSC as prospective buyers. He suddenly sold to someone who was not in the picture as a possible buyer before. If true that would indicate haste and he probably stuck the new owner will all kinds of unpaid bills. We hear the former lawyer for Catanzaro is now the lawyer for the new owner. Hold onto your hats on this one!

a turn said...

And what about former Commissioner Bischoff? Catanzero had him in his back pocket and now Bischoff is running for Mayor of Ogden. Two peas in a pod for sure.