USDA Tactics Questioned by Grantsville Mayor

Photo Left to right: Mayor Robert Petrovsky, Fred Hypes, Luke Peters, Jake Frady

The Grantsville City Council met on Monday, November 7th, 2022 for their regularly scheduled meeting with Mayor Robert Petrovsky, Recorder Tosh Shock and all council members present: Linda Staton, Cheryl Sturm, Dorothy McCauey, Judy Powell and William Villers.

Mayor Petrovsky reported that ARPA funding had been used to pave and repair several areas in the city, including the street at the City Park where the town was advised during a 2021 inspection that it needed attention with a large number of potholes. The remaining ARPA funds will be used to replace the heating and cooling unit on the City building

Another item of report from the Mayor was the city beautification project and concern over the metal grate on the city building that had become what some consider an eyesore to Main Street. He had city employees inspect the surface beneath the grating which was brick and concreted windows leaving little hope of removing the grating without a plan to resurface the building in some other manner.

Council Woman Cheryl Sturms informed the Mayor that someone had painted a pickle ball court on the tennis court at the City Park. The Tennis courts are in dire condition and in serious need of repair. Cheryl wanted the Mayor to consider repurposing the Tennis courts for pickle ball which was tabled until it is determined what the next step would be on the grant for boat launches being constructed at park.

Calhoun Committee on Aging was given permission to store some of their Christmas decor in City storage being that it does decorate the street in front of their building.

Fred Hypes of Dunn Engineering reported on the Water project progress informing the council that the Water Filters would be completed in just a few weeks which will end the round the clock operation of the plant which costs considerable overtime for Water employees. The clarifier will hopefully be completed by the first week of December, and the pumps by end of December. Hypes requested a change order to cover the cost of cleaning out the back wash basins due to the first basin being full. The cost of that operation would be $35,000.00 to have it pumped out and put in geotextile bags to contain the waste. A second requested change order was for $40,000.00 for a second access road to the basin. These funds would come from the contingency fund that began at $189,000.00 with $75,000.00 remaining. According to Hypes the water project is at the 75% completion phase. Both requests for change were tabled until December. The Council did approve for Heat Tracing to be completed on the lines at the plant to prevent freezing at a cost of $4,529.44

Luke Peters, Community Development Director for the Mid Ohio Valley Regional Council requested a draw down from the water project in the amount of $2,100.00 for an interest payment to the USDA, also informing the council that beginning in December those interest payments will be auto drafted from the City’s bank account with substantial increases to nearly $5,000.00 monthly by September 2023. Additional draw downs were requested for $200,161.47 to Orders Construction, $4,300.00 for an interest payment and $90.11 for administration fees to MOVRC, all of which were approved.

The Sewer Project plans and specs have been delivered the DEP for revue.

A very tense, yet cordial conversation ensues…

Mayor Petrovsky informed Fred Hypes, Luke Peters and Jake Frady (also from MOVRC) that they were about to be put on the spot. Advising them that the United States Department of Agriculture (USDA) had currently invested multiple thousands of dollars into the the Grantsville Water and Sewer Projects, and because of that the Mayor found it hard to believe that they would threaten to withdraw all funding for the completion of those projects if the Town of Grantsville refused to agree to consolidation with the Mt. Zion Public Service District and the Pleasant Hill Public Service District. The Mayor said that he (Representing City Government) had felt as if they were being held at gunpoint by the USDA over funding as well as by Kathy Emery, Director of the Division of Water & Waste Management for the WV Department of Environmental Protection. The Mayor stated his frustration in having spent months and thousands of dollars working to put together a report that nobody ever looked at. “I’m not playing ball” he said, “I’m not donating the plants.” (Referring to the water and sewer).

Luke Peters informed him that they’d still have use of the plants.

The Mayor continued saying no to the acquisition. Complaining that the county board had put together a plan that went into a shredder. He noted that he did not like hearing that Grantsville was “in the way.” And “if we don’t give you those plants, you’re no longer getting funding.”

Fred Hypes ask who had told him the plans were never looked at, because they were given to the Calhoun County Commission and their attorney to look over. Yet the City did not know that had occurred and had never received any report saying what had become of their plan.

Fred Hypes stated that some things needed to be explained. The Utilities were not the only ones involved in the mechanics of a merger and even the act would take 2 to 3 years to complete. He informed the Mayor that “as far as your assets are concerned, it is beyond just the parties negotiating because there are government funds involved.” Referring to the stake that lending agencies have in the merger.

Mayor Petrovsky questioned the financial wisdom of adopting the debt of the Mt. Zion PSD and the Pleasant Hill PSD. Even with the customers it didn’t justify taking on the debt.

Hypes brought it to the Mayors attention that Grantsville had 70% of the debt on their own. To which the Mayors response was “Everyone has debt. We’re the bigger organization.”

Luke Peters of the MOVRC attempted to convince the Mayor the project would work if they downgraded packages offered to new employees and raised rates accordingly. Fred Hypes mentioned that there would be a rate threshold, meaning rates could only go so high.

The Mayor informed them that he thought someone needed to be brought in that knows what they’re talking about. They put together a rag tag team of people (which he included himself in) that didn’t know what was in their best interest.

Fred Hypes response was that they had the experts, Dunn Engineering, MOVRC and other expert professionals. He said that there was a whole series of steps to go through to make the merger happen. Including dealing with the bonds from USDA and involvement of other lenders and people from here to Washington D.C. who must approve.

The conversation appeared to be going nowhere. The Mayor in utter frustration said that he felt as if he was being held at gunpoint to consolidate. He had heard that Mt. Zion and Pleasant Hill had agreed to consolidate yet there was no communication to him regarding that. He was then informed that it was up to the Calhoun County Commission to hire attorney’s and accountants to make it happen. A county board would be established for the merged system.

Other council members questioned how taking on more debt, adding additional staff and benefits could possibly help them.

“The cost would be spread across more customers,” was the answer given.

Hypes said that it wasn’t a money saving issues, it was making the systems sustainable.

Councilman William Villers asked how it would benefit the quality of life for the citizens of Grantsville? He added that he’d seen how the Calhoun County Commission handled their business, and it wasn’t good.”

The Mayor closed the conversation by saying he was not totally against it. But not at the expense of the City’s employees and by giving away the water and sewer plants.