Government News

Water Company Consolidation Meeting Determines Utility Rates will Increase, Staff will likely Decrease and it will save Nothing

In another attempt to move the Town of Grantsville, Pleasant Hill PSD and Mt. Zion PSD into consolidation, all entities involved met at the Grantsville Town office either in person or through the internet to determine the viability of it happening. Mt. Zion and Pleasant Hill had all but resigned themselves to the fact of it happening, but following today’s meeting it was apparent that the only Company appearing  on board was Mt. Zion Public Service District.

Long time dedicated board member, Dale Cunningham, verbalized his frustration with the three year process and announced his official resignation from the Pleasant Hill PSD Board effective February 9th, 2023. In addition, Office and District Manager Karen Shreves has resigned her position and John Villines, their only certified operator will be going to work for Minnie Hamilton Health Care Systems. This leaves Xavier Carpenter, who is uncertified and inexperienced in charge of a system with over 800 water customers. 

Mayor Robert Petrovsky was very clear on his stance regarding the consolidation informing the powers that be in the meeting, “You cannot merge with no employees and have it work.” 

Dale Cunningham complained that the merger attempt had been going on for three years and they were no further along than when it started. 

Jonathan Stanley, Attorney for the Town of Grantsville, was first to speak stating that he had not heard anything for several months following the Committee of Water Companies putting together a proposal that they would have liked to consider. He asked all those recommending the consolidation three questions: “How do we make sure a consolidated utility functions any better than a single unit? How do we retain workers with proper qualifications? These plants are the property of the citizens of Grantsville, and they’re losing a valuable asset. The Town of Grantsville has never been opposed,” he said, “if those three things can be resolved.”

No answer was given by any one of the agencies attempting to force the consolidation.   

Shelia Burch, Board member of the Mt. Zion PSD spoke saying that “we understand those three issues, but Mt. Zion does not offer what Grantsville does with benefits and we cannot. Retirement and insurance are not benefits that can be done.”

Jim Kelsh, Attorney for Mt. Zion PSD said that “Consolidation can take many forms, Mt. Zion rates are very high and we are skeptical that it would push rates up even higher. We are currently losing customers who are returning to their own water sources. We understand that Grantsville has their policies and benefits, but that would push our rates beyond affordability. As for the  compensation for the city’s assets, I have never seen a merger where they had to purchase part of the assets,  they instead merged into it.” There would be no money awarded to the town for their part of the consolidation. 

Pleasant Hill PSD’s Karen Shreve spoke regarding the study that was paid for initially, stating that she “couldn’t see how any of the Water companies would be a great success. We don’t have benefits, we’ve had a rate increase. Through inflation, covid and gas prices we were eligible for no help. I’d like to see how the study shows it would be a success.”

No answer again regarding Karen’s questions about the results of the study performed by Dunn Engineers for thousands, upon thousands of dollars. Nor did any other agency who has stood to make money from this consolidation comment. 

Micheal Griffith, Accountant and Consultant for the Mt. Zion PSD, also making several dollars from this event, spoke saying that he “did not anticipate a savings with the consolidation, that less money would be spent. With the engineering report all three entities have short falls and if they’re combined it would be beneficial according to the engineers. I never said it would cost less once combined.  I just thought it would be better if they shared personnel, etc.”

What personnel would Mr. Griffith me speaking of? The one uncertified staff member Pleasant Hill has left? The one Part time Class I Operator and two part time trainers that Mt. Zion PSD has employed? Or is it the two certified Class 2 Operators of Grantsville, One Class 2 Sewer Operator,  2 operators in training and field staff working for the Town of Grantsville? Is it any wonder that Mayor Petrovsky cannot see the advantage of his City Consolidating, being that he holds the greater share of “resources.” 

Kathyrn Emery of the West Virginia Department of Environmental Protection, who apparently carries a great deal of power in West Virginia spoke in a terse tone as she addressed the Mayor and his concerns.  Ms. Emery informed the group that “Grantsville has $300,000 in funding from a grant In 2020. I can’t believe the town wants money for something that they didn’t pay for. That would be an interesting thing for them to explain and causes me concern as to how they think that. They have a history of not maintaining what they have which is why I’ve been pushing for consolidation. You have to meet all the requirements of your system and you’re  currently having trouble doing that. It seems it would be better for you to share your resources and equipment to maintain your system.” Ms. Emery on more than one occasion has made it clear to all involved, if they don’t consolidate she will allow no future funding.  

Craig Arthur, new Calhoun County Commissioner asked Emery if the consolidation would make us eligible for additional grant money?

Commissioner Matt Walker asked “if the Consolidation could move forward with just the two, (Pleasant Hill and Mt. Zion)? It’s been told that if this doesn’t happen we won’t be eligible for any funding. If two go and one doesn’t, does that prevent for funding?”

A Representative from the Funding agency, the USDA, responded that “if they (the water companies) say they’re going to continue business as usual, you can’t even take care of what you have, and we’ll be throwing good money after bad. I will have even more concern and there will be a conversation that will take place at the infrastructure.” Which as most understood it, this would basically could mean that they’ll advise no more grant funding to be awarded. 

Mayor Petrovsky speaks again telling those online that “I’ve never been closed minded but it doesn’t make sense, we have the only class two operators and the only certified staff, Since I have been mayor, I have put $28,000 into the system. I don’t see how this (the consolidation) is going to fix it.” 

The Mayor seemed less than pleased at the reference to the handling of City finances by previous administrations and informed them further “I’m not having any problem paying my people so I would end up paying my people to take care of everyone else’s systems. Our operation at the water and sewer has been turned around. There needs to be employees in place, we’ll drive ours in the dirt and lose everyone.” He noted that if the benefits were taken from his staff he would lose his Chief Operator to retirement immediately, and likely destroy everything else with other staff following suit for jobs at higher wages that are already available to them. 

Karen Shreve spoke of her concern regarding the inability to pay their staff benefits while the Town staff has benefits. “It costs money to merge,” she said, “ what kind of payments would be offered to Mt. Zion and Pleasant Hill, you can’t offer one group benefits and the others nothing?”

Mayor Petrovsky continues saying “I can retain my people because of the benefit package. I see some huge endeavors that will blow up in our faces. How can I tell my workers to go to Mt. Zion or Pleasant Hill when City repairs need done, I don’t see the benefit.”

Commissioner Matt Walker breaks in saying “It seems that these people have spoken.” He then asked “Is the people who said this was a good idea here?”

Luke Peters of the MOVRC speaks up saying that Fred Hypes of Dunn Engineering and John Stump, Council would be those in question. Peters said that “Nobody ever said it was going to save money.” 

A new person is now in the meeting online: Fred Hypes of Dunn Engineering speaks saying “There was nothing in our study that said there was excess personnel, or savings, we found that there was a shortage and all utilities are having to operate short staff, and it was a danger to the employees. There was never ever a word said that this would be a cost saving. There is 10’s of millions of improvements that needed to be made and staff added and sharing.” 

Mayor Petrovsky again states his concerns: “Mt. Zion and Pleasant Hill cannot offer the town any help. Chemicals and testing become another issue increasing costs, if everything is an increase where does the assistance come from? People can make more money and benefits else where, you can’t say where you’re going to get these bodies?” (Referring to the lack of staff.) “The water and sewer have been taken care of and I’m going to keep doing that,  but now you’re saying we have to do it for all three entities. They’re all in a fragile situation and if we consolidate and the staff doesn’t see it’s for them, and they decide to leave, it makes me very leery. The citizens of this town are not going to be receptive to pay the rate hike for the other systems.”

One of the few savings that the DEP, USDA, MOVRC, and Accountants proclaimed was the savings on the annual Audit, accountants and boards. The consolidation would allow 1 board, (still multiple members) 1 audit (saving about $14,000.) And accountant fees which would be in question. With this, they want to see all utilities combined. 

Luke Peters of the MOVRC continued to defend the consolidation saying that “There was a lot of good content in the plan created by the 3 entities, I think we need to see the benefits packages and salaries and what the citizens are going to pay.”

City Attorney Jonathan Stanley speaks again saying “When we’re talking about consolidation everyone is having a hard time envisioning it, especially with the staffing issues. If we’re going to be in the same predicament two years from now, why not sell it to WV American water now? Can we have a conclusive document on what you’re going to put into it to make it happen?

Katheryn Emery, DEP replies with “I suggest you get together and figure out how this works best. I’m not in an position to tell you that.”  

Mayor Petrovsky asks “Where’s the $100,000 spent with Griffith and Associates for their study?”

Karen Shreve asks, “Was that information not apart of the study.” 

Griffith responds saying that it was not apart of the study. That was only a preliminary study. 

The Mayor then says that the city is done putting money into studies.  

The City Attorney chimes in again saying that “The big question the committee couldn’t answer was, where does this money come from on the front end. This was the question when we handed over the report. People were supposed to look at their report and answer those questions, we’ve heard nothing for months from the the powers that be. We’ve had 8 months to 1 year to figure this out. If they’re not comfortable giving us that money now, why would they be comfortable if we consolidated?”

The meeting continues back and forth for another half hour or so with little headway. The funding agencies refuse to say they’ll help in setting up the consolidation, those expenses would be laid at the feet of the Water companies and at the ultimate ending cost going to the consumers. There was discussion between Luke Peters, the USDA and DEP about the ability of spending certain funds for certain things, but nobody had answers. It would all be looked into later. 

There has been hundreds of thousands of dollars already spent toward a consolidation which is no where closer than it was in the beginning. Money in the pockets of outside agencies that could have been put into the systems.

Dale Cunningham complained, “You said you had $33 million to help us out, now you don’t have a dime.” 

Karen Shreve commented saying “You said you’d have the money to help us through, now there is nothing.” 

The bottom line from what Ridgeview News could gather from this meeting is that there are people in power who have legalized extortion.  The DEP, the USDA, and multiple other agencies have come together and determined that a community of water companies will either consolidate or lose all funding available to other communities. It’s not that there haven’t been mistakes made by the city or the psd’s. But, this consolidation, not only doesn’t fix the issues within the companies, it could possibly take viable companies and cause their failure. It could cause employees who have served many years to lose their benefits and possibly their retirement. It is also an act of people with far too much power. 

These entities will come back together again in a few weeks. It has been said they’ll have more answers. But will there be an answer to how they’ve justified spending hundreds of thousands of dollars to force a decision upon a county and city government against their will? County citizens using public water need to be aware that these decisions are effecting their water and sewer prices. Not only that, but, if these systems lose their staff, safe drinking water will also not be guaranteed. 

Ridgeview news will advise of the next meeting date to keep the community informed. 

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