By David Hedges, Publisher
thetimesrecord.net
You can pick your poison when trying to determine the most serious problem facing a long-delayed water project in Calhoun County.
Members of the Mt. Zion PSD and their engineer, Jim Hildreth, are at odds over which company should be awarded the contract for the largest infrastructure project in Calhoun County history.
The $5.2 million water line extension will serve nearly 200 homes with 21 miles of new line from Russett to Chloe, as well as the communities of Millstone and Sand Ridge.
The contractor approved by the PSD, Ron Lane of Arnoldsburg, withdrew his bid Monday, saying the delays were costing him too much.
As a result, members aren't sure if they will have to rebid the entire project, which would lead to further delays.
If that wasn't enough, members say their records and finances are in such a mess, they have asked for a formal investigation by the state Public Service Commission.
To add to the drama, at their meeting Monday members discussed a contract adjustment that would raise Hildreth's fees more than $100,000.
The original contract with Hildreth in 2001 put the estimated amount for engineering services at $408,000. But an addendum dated June 5, 2007, raised that to $530,000.
PSD members Roscoe "Cokey" Gainer, Shirley Mace and chairman Sharon Postalwait discussed that addendum at their October meeting, but did not have minutes from past meetings to examine.
The members adjourned to the home of Wilma Mace, the secretary/treasurer hired by the PSD to keep minutes of the meetings as well as handle customer billing and financial records.
After examining the records at Wilma Mace's home, members agreed there was no record of any vote to increase Hildreth's fees.
Wilma Mace did not attend Monday's meeting and when someone in attendance called her home, she said she was ill.
Hildreth also was not present for Monday's meeting, when Gainer reported that there was nothing found in the past minutes about an increase in the engineering fees.
"There was no mention at all of any of that happening," according to Gainer, appointed by the Calhoun County Commission to fill a vacancy on the PSD in September.
PSD attorney Tom Whittier told members if it did not appear in their minutes, it was not valid.
PSD member Shirley Mace said in the past Wilma Mace (no relation) had prepared minutes for the PSD chairman to sign without a vote.
Whittier said the full board should review the minutes and approve them to make them official.
Gainer also complained that blank checks had been presented to board members for their signature, a practice Whittier said should be stopped.
Some in attendance at Monday's meeting who already have water service complained about their bills, including receiving past due notices and checks that were held two months before they were deposited.
Postalwait said the PSD members knew there were problems and were trying to solve them.
As for those still waiting on service, their wait could be longer.
Bids on the extension were opened July 2, and on July 13, at least according to some PSD members, the contract for installing the water line was awarded to the low bidder, Ron Lane Inc.
But because of questions surrounding the minutes, it remains unclear what the motion was.
When Hildreth made his recommendation at a meeting Aug. 31, he told the board to award the bid to Bruce Allen Pipeline of Harrisville, with a bid $200,000 above Lane's.
PSD member Della Nichols resigned one day before that meeting, and the two remaining members could not reach an agreement. Postalwait wanted to accept Hildreth's recommendation to award it to Allen, while Shirley Mace said it had already been awarded to Lane.
At their September meeting, witnessed by a large crowd at the Arnoldsburg Community Building, Gainer joined the board and made a motion to vacate the July 13 motion regarding the contract. That motion passed unanimously.
Gainer then made another motion to award the contract to the low bidder, Lane. The motion passed 2-0, with Postalwait not voting.
Hildreth warned the members that USDA Rural Utilities Service, which is providing most of the funding for the project, might not approve their decision to go against their engineer's recommendation.
There was also controversy about another contract for a 100,000-gallon storage tank.
Mid-Atlantic Storage Systems Inc. was awarded the contract as the lone bidder. But a representative of another company, Welding Inc., said his bid was never opened because of a technicality.
After the PSD accepted the bid from Mid-Atlantic, the Welding Inc. representative said he planned to take legal action.
Both Lane and Allen had provided contract extensions, but Lane said he would have to increase his bid by $150,000 because of higher material costs during the delay.
Fred Rader of the Mid-Ohio Valley Regional Council, the agency administering the project, said the USDA would not accept an extension with a price increase.
There were also questions about Allen's extension because it was dated Oct. 15, which was after the original bids had expired.
Allen's extension was only good through Nov. 29, and Whittier said it was unlikely a loan closing could be completed that quickly.
Members eventually agreed to seek advice from the USDA and another attorney, since Whittier said he had a conflict because he had represented Lane in the past.
Because of the conflict, Charleston attorney Robert Rodecker has been advising the PSD about matters involving Lane.
PSD members plan to call a special meeting later this month, after they receive word from Rodecker.
If the project has to be rebid, Gainer said he would like to replace Hildreth as the engineer.
"I think he's forgotten he's an employee of this board," Gainer said.
Whittier said that could cause additional delays, and the PSD may still have to pay Hildreth for services already performed, which he said could be a substantial cost.
"The bottom line is, you get into a can of worms when you do that," Whittier said. "That doesn't mean you shouldn't do it, but we need to be solving, not creating, problems."
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