By NATE KING KING and OLIVIA BERGMEIER
Salina Post
Earlier this month, the Kansas Corporation Commission, or KCC, ordered Sundowner, LLC, owner Scott Kolling, to remove the locks he placed on water meters at Sundowner West Mobile Home and Trailer Park.
Following the adoption of a report by the KCC Utilities Division, staff found that Kolling was out of compliance as a public utility.
Sundowner, LLC’s failure to obtain proper documentation could lead to an almost $1 million fine. The fine is from K.S.A. 66-138, which prescribes a civil penalty of no less than $100 a day for providers who fail to comply with a provision of the public utilities statutes. The report stated that the fine would begin on Aug. 26, 2021.
One of these statutes requires filing for a Certificate of Public Convenience and Necessity, or COC, before providing the service. According to the KCC analysis, staff found that Sundowner, LLC owner Scott Kolling had not obtained a COC.
“K.S.A. 66-104 defines a public utility as any company that furnishes water service,” the report by the KCC Utilities Division stated. “In addition to obtaining a COC to operate as a public utility, K.S.A. 66-117 requires public utilities to seek approval for any rates or changes to its customers.”
Misty Livingston-Holmes, a longtime resident at Sundowner, said she voiced her concerns with the KCC about whether or not the founder of Sundowner, Frank Norton, ever applied for a COC when he established the park or if he was required to do so.
“I said, ‘I want clarification on this,” Livingston-Holmes said. “[Saline County] told me to call the KCC, and they will handle it.”
READ MORE: Years of neglect causes water crisis at Sundowner Mobile Home and Trailer Park
When Livingston-Holmes called the KCC’s consumer helpline in 2023 and again in January 2024, the KCC staff told her that the commission knew nothing about the water issue at Sundowner or that Sundowner’s public utility even existed.
According to a statement from Linda Berry, the KCC Public Affairs and Consumer Protection director, the KCC staff are unsure when the subdivision Norton founded became a public utility. Berry said if Norton sold water to private homes while he owned the park, it would qualify as a public utility under K.S.A. 66-104.
This unknown qualification status for a COC or other oversight continued through each subsequent owner of Sundowner, LLC.
“They didn't know anything about it because he [Kolling] was never registered with the state,” Livingston-Holmes said. “Sundowner originated with Frank Norton owning the property. We bought lots, so with Frank, though, owning all of this, he didn't have to register.”
Residents at Sundowner, including Livingston-Holmes, continue to experience alternating days of black water with sandy sediment or strong-smelling chlorinated water coming from their faucets. Livingston-Holmes said the water quality issues have ruined her kitchen and bathroom appliances.
“This is the third time that I've had to run my dishwasher. I'm currently running it empty because I ran my washer, and I had all kinds of nasty sand all over my dishes,” Livingston-Holmes said. “The water has ruined our clothes and appliances because of all the black yuck.”
On top of black or heavily chlorinated water, Kolling allegedly provided water bills late to residents, with some Sundowner residents reporting bills that totaled almost $1,000.
Billing issues continue to affect the residents of Sundowner, and Livingston-Holmes said she felt burdened with anger and disgust.
“I got my water bill for February, and according to Scott, my consumption showed that I had used almost 16,000 gallons,” Livingston-Holmes said. “We use it to shower, which we try to do minimally, run our dishwasher, and wash our clothes. If you compare my bills from the past, we have never even come close to using 16,000 gallons of water.”
Livingston-Holmes and other Sundowner residents first raised their concerns with the Saline County Commission, starting with Saline County District 5 Commissioner and Commission Chair Joe Hay.
The early efforts from the local scene
The only significant change the Saline County Commission could make to remedy the issue was to impose eminent domain, but that process is lengthy, and Hay said it would take too long to get the residents the help they need.
Instead, Hay began conversations with the KCC and the Kansas Department of Health and Environment, or KDHE, and provided as much information as possible. The recent KCC Utilities Division report outlined some things Hay found in his initial review of the issue.
“I think they looked at it like he's [Kolling] neglected so much stuff,” Hay said. “He's never applied for the permit — he never applied to be able to raise their rates.”
State Representative Susan Concannon became aware of the ongoing situation at Sundowner after hearing about billing errors and inconsistent water quality from Hay.
LISTEN: 🎙King in the Community: State Rep. Susan Concannon
Concannon later found more evidence for Kolling’s alleged neglect when KDHE staff told her that a local individual sent the water samples to the state department. KDHE staff confirmed this was the standard when testing privately owned wells, and staff do not visit the site.
“When I first found out about it that weekend, when I came home, I just drove to Sundowner and walked around, met some people,” Concannon said. “I had to see and hear about it myself before I could be a big advocate for them in Topeka.”
The following week, Concannon spoke with KDHE and a representative from Gov. Laura Kelly’s office to find a solution for residents.
“I just could not find anybody who would respond in a way that I felt was reactive,” Concannon said.
One way Concannon later saw an issue of slow response was in the Utilities Division report. Staff recommended that the KCC order Kolling to “Show Cause” or explain why Sundowner, LLC, would not need to apply for a COC within 30 days — possibly 30 more days of residents living with a compromised water system.
To Concannon, this issue was more than just part of her job. As she began interacting with Livingston-Holmes and other residents, she found the importance of opening dialogue channels for them.
“It's part of my job, but the part that I really enjoy is being able to fix a problem and help my constituents,” Concannon said. “Getting to know Misty has been just a pleasure. She really is a fighter for her community.”
Inspired by the strength of Livingston-Holmes and other residents at Sundowner, Concannon continued to push the issue and decided to contact Kansas Sen. J. R. Claeys, chair of the Utilities Division. After notifying Claeys, he sought further clarification on Sundowner’s history.
“The issue was that they [Kansas Attorney General’s Office] was under the assumption that the KCC would regulate based on it being from utility,” Claeys said. “Once they found out that there was a landlord-tenant issue, that gave them the clarification they could pursue.”
According to KDHE Communications Director Jill Bronaugh, the KDHE is responsible for complying with and enforcing federal and state regulations regarding public water supply systems.
Bronaugh said in the statement, “If the water system is privately owned, the KCC also has oversight authority regarding water rates.”
With the analysis of the Sundowner issue complete and on public record, KCC staff and other departments continue to wait for Kolling to “Show Cause” as to why he may not need a COC to continue business as Sundowner, LCC.
“This is a major health concern,” Livingston-Holmes. “I am very disappointed. I'm irritated. I'm just disgusted.”