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Page-Kinkade PSD members brief commission on proposed West Virginia American Water sale; commission agrees to pay PSD attorney bill
Summary
Page-Kinkade Public Service District representatives told the Fayette County Commission that West Virginia American Water has proposed buying some PSD water and sewer systems; the commission met in executive session and approved paying the PSD's attorney $15,535.61 from the general fund.
Representatives of the Page-Kinkade Public Service District (PSD) briefed the Fayette County Commission on Feb. 19 about a proposal from West Virginia American Water to buy some PSD utilities and about outstanding PSD debts. Commissioners met in executive session with counsel and then approved direct payment of the PSD'board'attorney's outstanding bill of $15,535.61 from the county general fund.
James McCartney, identified in the meeting as the PSD chairman, said West Virginia American Water approached PSD leadership on June 22 with a proposal to buy three PSD systems (water and sewer for some and sewer only for others). McCartney said PSD counsel had sought permission to release the proposal to the PSD boards so the process would not happen privately, and the boards were told the prospective buyer would not leave the boards in place but would keep staff and that proceeds could be applied to customer bills for up to three years.
McCartney and other PSD officials described a long, troubled financial history for the PSDs, including unpaid vendor invoices and a multi'part project covering filters and grinder pumps. The PSD officials said they believed West Virginia American Water had not paid certain contract amounts that PSDs had billed. Commissioners said the written closing paperwork and contracts would govern any dispute about what was owed and that attorneys on both sides should review the records.
After an executive session for legal advice, Commissioner Taylor moved and the commission approved paying Philip Tissue, the PSD's longtime attorney, $15,535.61 from the county general fund so the PSD would have counsel ready to represent the board as it evaluates the proposal and potential next steps. Tissue confirmed the amount was acceptable. The commissioners emphasized they were not directing a sale but were responding to an immediate request to ensure counsel could continue representing the PSD board.
McCartney and other PSD members said they plan public meetings for customers in early March to gather community input on any potential sale; meeting dates were discussed in the record for March 5—7 (public meetings on March 5, 6 and 7 were referenced). Commissioners said they would review documents and advised PSD leaders to provide contract and payment records for the commission and counsel to review.
The payment for counsel was presented as a one'time invoice to ensure the PSD board had access to legal advice during discussions about the prospective sale and vendor disputes.
