Fayette County commissioners defer decision on dissolving Paige Kinkade wastewater district; emergency operations discussed

FAYETTE COUNTY — Fayette County commissioners on Oct. 11 held a statutorily required public hearing on a proposal to dissolve the Paige Kinkade Public Service District (PSD) and did not take final action, instead deferring the decision to a subsequent, duly noticed meeting.

The commission heard updates from local PSD officials and county staff about emergency operations, timelines for a potential takeover by an investor-owned utility and damage-repair funding from the Federal Emergency Management Agency. Commissioner Allison (full name not provided) said recent developments — including a new state law limiting the Public Service Commission's ability to require utilities to assume extraordinary debt — strengthened the commission’s view that deferral and caution are appropriate. "We're trying to grow our county in the valley. And if we have unreliable water and wastewater, we're not gonna be able to do that," she said.

The Paige Kinkade PSD manager, Bart Jackson, told commissioners that the district has immediate equipment and repair needs and that one grinder costing about $2,500 has already been ordered. Jackson identified himself as the manager of the Paige Kinkade Public Service District and described the district's current repair needs.

County staff described the administrative steps ahead if an asset purchase agreement (APA) is signed: the county would submit an application to the state Public Service Commission (PSC), and it could take about six months after that submission to receive an order permitting the transaction. Staff also said an emergency operations-and-maintenance (O&M) agreement could be signed more quickly to let the buyer begin emergency work while the PSC process runs, possibly within three to four weeks.

Commissioner Allison outlined recent discussions with federal officials about Hamilton Hollow repairs and FEMA funding, saying earlier estimates that repair funding would be about $20 million have been reduced; she said $17 million is the best-case FEMA estimate at present and that an additional roughly $5 million may still be required from state or other sources. Allison said she was not confident FEMA funding will be approved quickly and cited other federal funding decisions as context for uncertainty.

Board member Jim, present as one of two Paige Kinkade board members, and county representatives discussed staff and employment questions tied to any transfer of operations. County staff said employees would be given the opportunity to apply for positions with the acquiring utility, but there are no guarantees that all staff would remain in the same roles or at the same facility.

Commissioners also asked for the record that minutes and evidence from prior public meetings and stakeholder sessions on this topic be incorporated into the hearing record. County counsel (Mr. Tyler, role/title not specified in the record) advised the commission to adopt the prior records and noted the commission has already held multiple meetings and site visits related to the PSDs.

The commission moved into an executive session to discuss contract-related negotiations (purchase contract K.162). After returning from executive session, the commission reported that no decisions were made. A motion to adjourn the hearing passed with voices of "aye."