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CALHOUN'S $5.2 MIL WATER PROJECT STALLED BECAUSE OF LITIGATION

(12/30/2009)
By Bob Weaver

A Mt. Zion PSD meeting scheduled to vote on final approval of contracts to move Calhoun's $5.2 million water extension project ahead didn't happen.

The district was set to give contracts to Bruce Allen Pipeline and Mid-Atlantic Storage Systems Inc., with both bids facing legal challenges.

The beleaguered water project is now facing a hold-up because of USDA guidelines.

"The project is being put on hold because of pending lawsuits," said PSD board member Roscoe Gainer.

"The USDA will not permit the letting of contracts with pending litigation," he said.

"We intend to face the increasing hurdles and get water."

Gainer indicated the project will likely be re-bid when the legal issues are cleared.

Gainer was unable to give any time frames on how long it would take for the legal issues to be cleared.

Calhoun contractor Ron Lane is one of the litigants. Lane has been building a case against project engineer Jim Hildreth over what he calls bid interference.

Lane apologized to the Mt. Zion PSD and customers needing water, saying "I had to file the suit against the Mt. Zion PSD because of legal requirements, while I just wanted to file the suit against Jim Hildreth."

"Mr. Hildreth is the one that has broken the rules," Lane said.

The Mt. Zion PSD has been advised by legal counsel Tom Whittier that engineer Hildreth cannot be removed from the project at this stage of the project, advice that Ron Lane says is not correct.

Meanwhile, the PSD is facing critical financial problems, while an investigation of the PSD is underway by the West Virginia Public Service Commission.

The PSD's CPA auditor has resigned, saying financial records were not provided by former secretary-treasurer Wilma Mace to complete required audits for 2007 and 2008.

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The information on these pages, to the extent the law allows, remains the exclusive property of Bob Weaver and Dianne Weaver The Hur Herald. All information may be freely used but must not be sold or used in any type of commercial endeavor, or used on any web site without the express permission of the owners ©Bob and Dianne Weaver, The Hur Herald, 1999, 2000, 2001