WESTOVER, W.Va. — Talks have been under way, and the first formal step will occur June 13, when MUB presents an Operations and Maintenance (O&M) agreement to the PSB board, MUB said in a press release.
PSDs operate under the authority of the Monongalia County Commission, and commission President Tom Bloom said in the release that the PSD initiated the acquisition.
“Members of the PSD explained that they lacked the resources to continue to manage the system,” Bloom said in the release. “After some discussion the obvious solution was to turn to the one place that has the expertise to resolve the issue and that’s MUB.”
As reported in March, the state Ethics Commission has leveled nepotism charges against Michelle Malone, the manager of the River Road and Paw Paw-Route 19 public service districts. A public hearing to consider the charges is set for June 25 in Charleston.
Bloom, Commissioner Ed Hawkins, MUB General Manager Tim Ball and Malone all said that the charges are not connected to the acquisition.
Ball said, “I am uncertain whether, or to what degree, the ethics matter is a factor for the PSD, the County Commission, or the River Road employees in presenting their combined request that MUB acquire the system. Inasmuch as the employment of the River Road staff will end once MUB services begin, the ethics matter is immaterial to our plan.”
Bloom said during a phone interview, “That’s separate. We’re doing what’s in the best interest of the people out there.”
Malone said in an email exchange, “This action was necessary because the RRPSD is understaffed and is unable to find and retain adequate field personnel to maintain and operate the utility. The system recently completed its system improvement and upgrade project and is in the best physical and financial condition that it has been in for many, many years.
“As a result,” she continued, “the PSD is ready (physically) for the anticipated growth that will be experienced over the next several years.
Combining with the Morgantown Utility Board for the expertise and resources that they can offer is the natural progression for the PSD. The RRPSD board and staff look forward to working with MUB to make this as smooth a transition as possible.”
Ball explained in the release and in an email exchange that MUB is developing the O&M agreement to present to the PSD board. Once the board approves it, he said, the agreement will go before the MUB board on June 18.
It will then go before the County Commission, Bloom and Hawkins said, and then to the state Public Service Commission for final approval. They expect to take it up before the end of the month.
Ball estimates that the entire local process to approve the agreement will take about three months. PSD employees will remain on staff until then. Once the O&M is approved, their employment will end and MUB’s services will begin.
He expects state PSC approval will take about six to nine months.
“The PSD Board must remain in place until then in order to execute the transaction once it is approved.”
Malone said she expects PSD staff employment will end by no later than Labor Day. Malone’s daughter, Kady Malone, is a part-time office assistant, and is also employed by Paw Paw.
Malone’s husband, Charles Malone, is system manager. He also works full time for the city of Morgantown and his does his PSD work evenings and weekends.
Ball explained the reasoning behind MUB’s thinking in the press release. “There are a few things that go into the equation of acquiring River Road PSD. Foremost, we already furnish the treated water distributed by the utility and occasionally assist the PSD with maintaining its system. This means that we have a very strong relationship.”
“More importantly,” he said, “the acquisition falls directly within the purview of our mission of protecting public health. We are not going to simply sit back and watch a closely related water utility struggle when they have expressed a need for assistance.”
Ball said MUB will purchase the PSD, but for a token nominal amount. “The real price is that we will take over their existing debt.”
That debt, he elaborated in the release, is a 30-year, $3 million bond held by the PSD, funded by a rate charged to River Road PSD customers.
“One thing that cannot be emphasized enough,” he said, “is that the debt held by the River Road PSD will not impact our other current rates in any way. MUB customers will continue paying their current rates and River Road PSD customers will continue paying their current rates. Customers themselves will notice no difference in service delivery or cost for those services.”
The Dominion Post asked Malone and Ball about the possibility of transferring unemployed PSD staff to MUB. Ball said there is no plan for that, but MUB has open office position it offered to Malone in light of her years of experience.
Malone said she anticipates declining the offer due to her remaining responsibilities at Paw Paw. She’s had no discussions yet with the Paw Paw board regarding its future.
“I will continue to manage temporarily,” she said. “I plan to seek full-time employment elsewhere at which point I will no longer be able to continue to serve in my position as manager of the PPPSD.”
Paw Paw is a Marion County PSD and outside MUB’s service area, Ball said.
Regarding the other two River Road staffers, Ball said, “All other River Road employees are welcome to apply for employment at MUB at any time (but without any promise of employment by MUB). In any case, any River Road employee hired by MUB will start as a new hire (with zero seniority).”
This story, written by David Beard, first appeared in The Dominion Post.