| By Bob Weaver
The Mt. Zion PSD's 21-mile $5.2 million dollar water project appears to be moving forward, still bearing enough negative baggage to sink a battleship.
What was called "a closing" is scheduled for a special PSD meeting on December 21.
In a Monday hearing, Judge David W. Nibert decided not to continue a temporary restraining order requested by tank contractor Welding Inc.. It drew at least four attorneys, one each representing the Mt. Zion PSD, Welding Inc., Mid-Atlantic Storage, and engineer Jim Hildreth.
About 30 people attended the meeting, including members of the Mt. Zion PSD board.
PSD attorney Tom Whittier told Judge David W. Nibert that if Randy Plum, representing USDA rural development and Fred Rader with the Mid-Ohio Valley Regional Council, would be giving testimony, they would tell the court that "the project is maxed out" if it would need more money.
Whittier said if engineer Hildreth would be testifying in Monday's hearing, he would say the current bids would be lost after Dec. 30, 2009 and the project would have to be re-bid.
"Hildreth expects the cost to increase $800,000, and he wouldn't know where to get the revenue," said Whittier.
Drew Patton, representing project engineer Jim Hildreth, said Welding Inc. did not comply to the advertised bid requirements, a statement repeated by an attorney for Mid-Atlantic Storage, who did receive the tank bid for $319,000.
Hildreth said Welding, Inc. was "not a responsible bidder."
Welding Inc. claims they issued a check for $100 to Hildreth for a bid package, a packet they claim should not have been required by Hildreth.
During the final hours of bid letting, Hildreth returned Welding Incs. check, apparently because it did not include $25 to mail the packet.
Bruce Caswell, owner of Welding Inc., wrote on the check "Use only if I get the low bid."
Welding Inc. attorney Kelly Morgan maintained there is no law that says contractors must purchase a bid packet, saying such bidding information is available from the contractor's association.
"If there was a problem, Hildreth should have picked up the phone ...", Morgan said, "Ninety percent of the bid contracts do not require conditions like Hildreth."
Attorney Patton, representing Hildreth, agreed there is no law regarding the matter, but maintained Welding Inc. did not comply to the clear advertised legal requirements, "pick-up the bid packet or include $25."
Patton said Hildreth's requirement was based on getting contractors on track with the project engineer.
"Welding Inc. didn't comply, Hildreth upheld his legal duty and the bid was tossed," Patton said.
Welding Incs. attorney Kelley Morgan continued to maintain the company just didn't need Hildreth's packet, they already had the bid specifications.
Morgan raised several issues regarding Hildreth, including his alleged partial ownership of a sub-contracting company, implying Hildreth worked to see that his company obtained business.
Morgan said "Hildreth did not want Welding Inc. to bid on this project," while attorney Whitter indicated there have been concerns about the quality of Welding Incs. tanks.
Morgan produced a Secretary of State document indicating Hildreth's ownership.
Attorneys Whitter and Patton objected, saying "There are no witnesses to such an accusation, that it is hearsay, and such ownership is not pertinent to the current discussion."
Morgan said Welding Inc. filed a bid protest with Hildreth with no reply, indicating the company would suffer financially.
"Here you have a case where the two lowest bidders of a project have been denied," referring to Ron Lane, Inc., whose bid was $200,000 under Bruce Allen for the pipe contract.
Attorneys said Welding Inc. had been in previous court battles with Mid-Atlantic Storage, with one case going to the WV Supreme Court.
Monday's hearing concluded with Judge Nibert saying "The temporary injunction is dissolved," leaving Welding, Incs. option to pursue a civil suit.
The PSD is laboring under severe financial woes, problems with records, undergoing an investigation by the West Virginia Public Service Commission.
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