MT. ZION PSD MOVES TO TERMINATE ONE-YEAR "BAIL-OUT" AGREEMENT WITH TOWN OF GRANTSVILLE - Garretson Said Agreement Was To Assist PSD "Out Of Bind"

(02/01/2014)
The Mt. Zion PSD has moved to terminate a one-year operation and maintainence agreement with the Town of Grantsville, agreed upon in September, 2013, when the Mt. Zion PSD was in crisis.

The Mt. Zion PSD's financial and operational crisis was linked to their inability to pay the amount of a summary lawsuit against them, pay their workers and other outstanding bills, placing the critical delivery of water to their customers in jeopardy.

Grantsville Mayor Curtis Garretson said, "As Mayor of Grantsville, my responsibility lies with the citizens of the Town of Grantsville and Mt. Zion water has very little effect on them."

"The Town of Grantsville entered into this agreement to assist Mt. Zion PSD to get out of a bind, and to continue operations without any interruptions to their customers, and to ensure that the town would continue to get paid for the water being distributed to the Mt. Zion PSD," he said.

The Mt. Zion PSD has hired Charleston law firm Bowles and Rice in a move to take back the operation, saying the PSD can better operate the system.

Mayor Garrettson said, "The Town of Grantsville is not interested in needless efforts that will in the end only cost Mt. Zion PSD more money, which is unfortunate, because in the end Mt. Zion PSD customers will be the one's to foot the bill."

Mt. Zion PSD chair Sharon Postalwait did not respond to calls to comment on this story.

In a brief filed with the West Virginia Public Service Commission, the Mt. Zion PSD says, "The town's efforts to provide operation and maintenance services have hindered the efficient delivery of services."

See MT. ZION PSD REQUEST TO TERMINATE AGREEMENT

The brief has an extensive list of complaints about the town's operation of the system, saying, "The (Mt. Zion PSD) believes it can provide better, more efficient, and more orderly service to its customers directly using its personnel and equipment rather than through the operation and maintenance agreement (with Town of Grantsville)."

Mt. Zion PSD's request to the WV Public Service Commission, in terminating the agreement, is further seeking that the district remove its computer and files from the Town of Grantsville office, and resume billing services from the district's office."

Attorney Loren Howley, was hired by the Town of Grantsville, to respond to the termination request. The response says, "The (Town of Grantsville) states that the Mt. Zion PSD did not have the right to file the (termination) petition, inasmuch as the PSD assigned to the Town of Grantsville (one-year agreement) the sole authority for its operation...the PSD, as one party to the Operation and Maintenance Agreement.

The response further says the town did not replace the Mt. Zion PSD employees, with town employees filling in the gaps to provide service, with the Mt. Zion PSD office manager continuing to issue bills.

In a lengthy response, the town defended its efforts to provide service.

See GRANTSVILLE'S RESPONSE

EARLIER STORIES

MT. ZION PSD WATER SERVICE AT RISK - Town Of Grantsville, Calhoun Commission Holding Emergency Meetings

AGREEMENT TO KEEP MT. ZION PSD SYSTEM OPERATIONAL MOVES FORWARD - One Year Operation/Maintenance Contract Will Keep Water Flowing, Boil Water Advisory Could Be Lifted Soon

MT. ZION PSD BANK ACCOUNT EMPTIED - Company That Brought Lawsuit Says "I Hated To Do It"