MT. ZION PSD BOARD DID NOT APPROVE ENGINEER'S RATE INCREASES - Ron Lane, Inc. Bid In Jeopardy, Top Priority To Get Water

(11/10/2009)

Mt. Zion PSD board members (L to R) Shirley Mace,
Sharon Postalwait and Roscoe Gainer (absent secretary-
treasurer Wilma Mace) facing compounded challenges

By Bob Weaver

More problems are challenging the Mt. Zion PSD board.

The board was advised last night that a pipe bid submitted by contractor Ron Lane, Inc. for Calhoun's $5.2 million water project could not be accepted because of policy.

RUS, the government agency, said the Lane bid contains locked-in costs for materials linked to time frames, indicating they do not accept bid extensions with price adjustments.

The PSD board is seeking further direction from officials regarding the matter, either to award the pipe bid to Allen Construction or to consider an option to rebid.

A special meeting will likely be called over the bidding problem.

After a question regarding money to fix problems, board member Roscoe Gainer said "We don't have a clue how much money we've got," implying the information has not been made available to be board from secretary-treasurer Wilma Mace.

Mace did not show for the meeting, nor did she send the agenda. Following a phone call to Mace, she advised board members she was ill.

Board members clarified an issue raised at last month's meeting regarding whether or not the board voted on pay increases for Jim Hildreth's engineering firm.

Board member Roscoe Gainer said no records exist approving the increases.

The increases, some of which were based on hourly work, could have resulted in a few hundred thousand dollars for Hildreth's firm.

Attorney Tom Whittier said, "If it was not acted upon by the board, it is not legal. It needed to be approved by the board."

"No agenda. No minutes. It didn't happen...The matter did not properly come before the board," Whittier said.

Board member Gainer said he and the other board members went to Mace's house to review records and minutes, and could find none related to the matter.

See related story MT. ZION PSD QUESTIONING MAJOR $$$ INCREASES GIVEN ENGINEERING FIRM

The board is seeking counsel regarding where to go from here.

Board tells community members the primary goal is to
get water to those who have been waiting for years

The board moved to improve procedures on check writing, after revealing that board members had been "presented with blank checks to sign."

The board spent time discussing how current project engineer Jim Hildreth could be removed from the project.

Board member Roscoe Gainer said, "I feel we have suffered greatly under what seems to be Mr. Hildreth's inept work. I think he forgot he was an employee of this board."

Gainer indicated if the project was re-bid, "It is not our intention to hire him."

Gainer was reminded by attorney Whittier they should seek legal counsel regarding Hildreth's employment.

"It's going to be difficult to have a business relationship with Mr. Hildreth that has any trust," Gainer said.

A report was given by PSD employees Dick Ullum and Tom Fluharty regarding recent problems, repair work, and equipment needs, after which the board gave some limited approval to make some repairs.

Considerable progress has been made cleaning up the sewer operation.

The workers recently repaired a leak on Phillip's Run that was leaking 33 gallons a minute for an extended period of time, and a second leak on Mt. Zion Ridge where J. F. Allen Construction ruptured a line, with a loss of 263,000 gallons.

Fluharty said "They (Mt. Zion PSD) have never been in compliance since the PSD's permit was issued," indicating the lift stations are not in compliance, with one water pump running the system, with two pumps down.

Board members indicated a rate increase is long overdue.

Community members continued to complain to the board about billing problems.

"We're tying to get all this worked out," said chairperson Sharon Postalwait.

"Our top priority is to get water to these people who have needed it for so many years," said board member Shirley Mace.

Fred Rader and Tim Meeks from the Mid-Ohio Valley Regional Council attended the meeting, discussing procedural problems with the board.

The West Virginia Public Service Commission is investigating the operations of the PSD, essentially after secretary-treasurer Wilma Mace failed to provide public records to the Calhoun Commission.