MT. ZION PSD RECOMMENDS RON LANE, INC. FOR WATER PROJECT - PSD Members Support Commissions Investigation

(09/15/2009)

MT. ZION PSD BOARD TAKES A STAND

Pictured (L to R) Fred Rader, Mid-Ohio Valley Regional
Council; Wilma Mace, PSD secretary/treasurer; Sharon
Postalwait, PSD member/chairperson; Shirley Mace, PSD
board member; and Roscoe Gainer, new PSD board member

The Mt. Zion PSD voted 2-1 last night in Arnoldsburg to award the waterline construction contract to low bidder Ron Lane, Inc. Lane's bid, which was $200,000 lower than Bruce Allen, had been denied by project engineer Jim Hildreth.

Hildreth said his denial of the Lane bid was related to "risk management," while contractor Ron Lane said his performance was covered by bonding.

The motion to award Lane the project was made by new PSD member Roscoe Gainer, although there are some official contingencies related to final approval.

The $5.2 million 21-mile project has suffered a number of ups and downs.

"I hope to see this project get unstuck," Gainer said, "Residents need public water."

The board affirmed project engineer Hildreth's recommendation to award the tank project to Mid-Atlantic Storage Systems.

Welding, Inc., another bidder on the tank project, continues to contend it was illegal for Jim Hildreth not to open their bid, Hildreth said Welding, Inc. was "not a responsible bidder."

Welding, Inc. has declared they plan to bring a lawsuit in the matter.

Board member Shirley Mace continued to express concern she had made the motion to approve Lane at an earlier meeting, saying secretary-treasurer Wilma Mace had not recorded it correctly after it was voted upon.

"It was not the way I made the motion," Mace said.

Board chairperson Sharon Postalwait said Mace's earlier motion had a contingency, indicating it had to be approved by engineer Hildreth.

Mace said there was no such contingency in the motion, and PSD secretary-treasurer Wilma Mace, who indicated she did not understand Mace's motion, appeared to make a correction.

Chairman Sharon Postalwait appeared to struggle with procedures in conducting the meeting, while sources close to the PSD board indicated formal board meetings with record-keeping had not been a practice over the years.

Gainer was appointed earlier in the day by the Calhoun Commission to fill a vacancy left by Della Nichols.

Gainer's first action at last night's meeting was to ask Mace for an agenda. Mace responded she did not have an agenda, saying "I was not trained to have one," in her 26 years with the PSD board.

During the meeting, the board went into executive session, which was apparently related to board members seeking legal advise from their attorney Tom Whittier.

Project engineer Jim Hildreth fielded several questions asked by Gainer.

About 50 people, mostly prospective water customers, attended
the Mt. Zion PSD meeting, with some recording the meeting on video

The board unanimously voted to send a letter of support for the Calhoun Commission's request to the West Virginia Public Service Commission for an investigation of the Mt. Zion PSD.

The Calhoun Commission called for the investigation Monday following consumer complaints and apparent management issues.

The Calhoun Commission said the "Mt. Zion PSD issues critically need to be resolved."

The commission asked the WV Public Service Commission to "formally investigate the Mt. Zion PSD, covering financial and management issues, from how money was handled to reviewing audits, record keeping, minutes/decision making, the hiring of engineers and bidding processes."

Fred Rader from the Mid-Ohio Valley Regional Council answered questions and issued some procedural advice.

Dick Ullum and Tom Fluharty, who have been hired by the Mt. Zion PSD to clear up sewage problems, gave a report regarding progress. The PSD has been cited by the WV-EPA.

A motion to establish a permanent meeting time for 6 p.m. was approved.