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Wednesday, October 21, 2009

BWD still attempting to dodge court decision

by M. Stewart
Today’s Review has a good update on Buckeye Water District’s nearly $10 million debt to the city of East Liverpool. According to the paper, a hearing is scheduled for Oct. 28 with the Seventh District Court of Appeals in Youngstown.

The appellate court already dismissed the BWD appeal once in April 2008 “for lack of a final appealable order.” I don’t see this second round going any better for the water district. Unless something really bizarre happens, the court will reject the appeal again. The Ohio Supreme Court, which is the next step, most likely won’t even hear the case.

Let us recall Columbiana County Common Pleas Court Judge C. Ashley Pike's February 2008 decision. Not only did Pike rule against the water district, he admonished BWD witnesses, stopping just short of accusing them of perjury.

“Those witnesses were either vague or evasive in their testimony and attempted to engraft upon the clear language of the contract their perceptions of what they thought the contract meant,” Judge Pike wrote. ... “Simply put, the reasons given by the district as to the city’s alleged breach of contract were never true reasons at all. They were pretext. The district simply made a business decision to obtain its own water and that is what it did.”

In other words, the water district’s attempt to weasel out of its purchase contract with East Liverpool was flimsy and transparent at best. Because Pike’s strongly worded decision isn’t likely to be overturned by the appellate court, it’s apparent to even the casual observer that the appeal process is all about delaying payment.

To put it bluntly, the county and BWD are in dire straits, especially since the water district’s major cash cow, Baard Energy, has been unable to attract investors for its proposed Wellsville coal conversion plant. Once the appeals process has been milked for all its worth and BWD is forced to pay up, I look for the county to do everything it can to separate itself from the water district to avoid sharing liability. That should be interesting to watch.

How the water district can afford to pay the city is the only real issue. Maybe that explains why the BWD Board of Trustees recently hired Dallis Dawson's people to go begging door to door in Calcutta for new customers. Pardon me if I'm not sympathetic. East Liverpool's water department has been forced to take out a loan to pay for $30k worth of new pumps. How pitiful is that?

I hope the Seventh District Court of Appeals’ decision is as strongly worded as Judge Pike’s. Maybe then BWD will be forced to come clean and pay its bills. It also might be a good time for the BWD Board of Trustees to start representing their constituents rather than the water district. After all, trustees are supposed to provide oversight on behalf of those who appointed them, not to operate as business managers or agents for the body they're entrusted to watch.

14 Comments:

Anonymous As I sees it said...

NONE of the Buckeye Water Board members are accountable to ANYONE.
What do I mean by that? When did we elect them? How long are their terms?
Who sets their compensation? If I was on the BWD board I would tell ELO to kiss my ***, there is no one that can remove me and I will do as I damn well please.
And as far as the commissioners, they are crying poor mouth again, just before the election, Just HOW DAMN MUCH MONEY DOES IT TAKE TO GET 1.2 MILLION IN INTEREST?

8:46 PM  
Anonymous river rat said...

No posts about the City Auditor? Is it because she is a Democrat? I think this is how it will play out in court. Because she is a democrat all this will be swept under the rug, just like it is being done here. The bottom line here is that she lied to the police.

9:23 PM  
Anonymous never know said...

Not that I disagree with what youre saying but don't count your chickens before theyre hatched. Pike has had a LOT of rulings overturned.Strangers things have happened.
Would you really expect the BWD to just lay down and play dead? Any entity ordered to pay that kind of money would exhaust every appeal possible.

9:30 PM  
Anonymous emanuel cant said...

The BWD rates are ridiculous. They took over Wellsville's water system, and aggressively raised rates to fund the monstrosity they created, which now covers 1/4 of the county. What would happen if the district goes bankrupt?

10:26 PM  
Anonymous Apostle Oliver said...

Well as in any legal action involving money, it is always easier to win the case then it is to collect the settlement, but in this case they have a customer base that is worth something now isn't it?

7:00 AM  
Blogger M. said...

BWD trustees are appointed by the municipalities that the water district serves. I believe their terms are four years, and they cannot be removed by the appointing bodies until the end of their terms.

The problem is that board members do not see themselves as oversight agents for their home municipalities. Instead, they act as agents of the water district. Believe it or not, several years ago the board members actually voted to give themselves salaries through BWD. In other words, they literally work for BWD.

I have no problem with any of the individual board members that I know. One is a very good friend of mine. I also have no problem with any employees of the water district. They are all good people. My problem is with the way the board sees itself in relation to the water district. They do not operate as advocates for customers or their home municipalities.

7:48 AM  
Anonymous F and B said...

Matt , I think everyone involved knows what is going to happen. There will be a deal made in the end and the city with not recieve any damages. It's all politics. Bolon and Wilson will get involved and like usual the city will lose in the end. Sad to say buts that's what I think will happen.

9:05 AM  
Anonymous about time said...

"NONE of the Buckeye Water Board members are accountable to ANYONE."

oh yes they are. They are public employees/officials, so they answer to the public.
where are all these irate customers on bwd meeting day? do they attend the meetings and bitch?
they also answer to the media now that joann bobby is on them. she has spanked them a few times now and at least is keeping news about them in the paper.

12:10 PM  
Anonymous As I sees it said...

About time,
When I start electing them via the ballot box and not have to deal with their overblown ego's, That is when they will be accountable to the public, the same public that they draw a paycheck from, and other benefits.

7:43 PM  
Anonymous complain said...

dissatisfied? take it to the commnities that appoint them to the board: village of wellsville (3); county commissioners (3); townships (all townships involved have to agree on three members)

9:51 PM  
Anonymous Sparky said...

You mentioned that the BWD Cartel aggressively took over Wellsville’s water system. How right you are, they said that a one of the gauges had leak some mercury and they had the EPA and others to put a lot of pressure on the Ville to hand it over.

We all know that “Mercury” which is a heavy metal, should it get into the water can cause a lot of problems including brain damage.

Having said that were you aware that the CDC and FDA know that 80% of all flu shots distributed in the USA contain a mercury-base preservative called thimersol.

Thimerosal consists of 49.6% ethyl mercury, an anti-bacterial, anti-fungal that allows manufacturers to sell the vaccine in large, multi-dose containers without fear of contamination.

Here’s the article if you want to read it http://www.jsonline.com/news/29295284.html

10:03 PM  
Anonymous As I sees it said...

Complain,
3 members from the county, 3 from Wellsville, and 3 from all the townships they serve....HUMMM....How about this: elect 3 every year for a three year term and then watch the water rates go down. Who elects them? EVERYONE in their service district. If they are going to run a pipe to Salineville, where is the representation from that town??
AND as for their meetings..As far as I know they still meet in the mornings when everyone that has a job is working.

8:48 PM  
Anonymous in the know said...

Not to defend the BWD in any way, just stating fact: Wellsville could no longer afford, or was capable, of running its own water system when the EPA stepped in and had BWD (SCCRWD then) take over. Same as Salineville just recently, where the water plant was in deplorable conditions.
With increasing EPA mandates, most small towns will probably eventually have to give up their utilities to bigger entities because I think that's what the EPA wants: county-wide water and sewer districts.
time will tell but surely wellsville residents (even tho they bitch about the cost) have to admit their water quality is better now than before BWD took over. At least people aren't taking bottles of water to council meetings that are half dirt, like they did in the 1980s!

7:10 AM  
Anonymous good ? said...

good question: will salineville get to choose a representative on the board of trustees now that it is served by BWD...it should.

9:12 AM  

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