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MT. ZION PSD DIGGING OUT - Receivership Possibility, Efforts Called "Challenging" |
| (01/13/2010) |
DIGGING OUT (L to R) board member Roscoe Gainer, By Bob Weaver Attorney Tom Whitter advised the Mt. Zion PSD board Monday evening, "If questions don't get answered (by the WV Public Service Commission) the PSD could go into receivership." PSD board members went through an agenda that covered a myriad of problems, from current litigation that appears to have brought the $5.2 million water project to a standstill, to trying to wade through a list of financial problems. Board member Roscoe Gainer called the agenda "challenging." The board has paid some current operational bills, and has made an agreement with the Town of Grantsville to make payments on purchased water. Attorney Whitter recommended the PSC look to the WV Public Service Commission for help to review the problems for a possible rate increase, calling it a hardship situation. "The more we dig into the numbers, the more questions we have," Whitter said. "The district is unable to pay employees or make repairs," said board member Shirley Mace, "Some people say they haven't received a bill since last July." However, volunteer Norma Collins, said the billing is getting back to speed, although there have been some problems related to the winter weather. "We're trying to correct meter reading problems that seem to go back for several years," Mace said. Dick Ullum and Tom Fluharty, who have been working without pay, said a number of leaks and problems have been corrected with the resources available. Since the PSD's credit is thin and cash reserves are low, Ullum has been placing some needed items on his personal credit card. Board members Postalwait, Gainer and Mace participated in discussions on how to straighten-out the financial problems, hearing a report regarding the investigation by the WV Public Service requested by the Calhoun Commission. The board's CPA has resigned, unable to complete the 2007-08 audits because of unavailable records. There is a problem with missing minutes or where the Mt. Zion PSD board had not approved minutes of meetings. Board attorney Whittier indicated he would like for the board's former CPA to re-consider her resignation, since progress is being made. Representatives of the Mid-Ohio Valley Regional Council gave a report on plans to upgrade the sewer treatment plant and PSD systems, initial steps toward approving a company to move that work ahead. Attorney Whittier reviewed pending litigation regarding bid interference against project engineer Jim Hildreth, the suit is also filed against the Mt. Zion PSD. A hearing is set for January 22 for several matters. Whittier indicated attorney Rodaker will make a motion to dismiss the complaint filed by Ron Lane, Inc.
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