Chair Rhonda James and the entire Mountain Water District board its CPA and attorney addressed the funding for an audit requested by District 6 Magistrate Chris Harris during a November meeting. The audit would be the third such review of the MWD since 2008.
Harris said he would pay for the audit out of his funds if the brunt of the costs were determined to in fact fall on the county.
“You said you would pay for the audit,” James told Harris on Tuesday. “We are here to take you up on that offer.”
James, a CPA, said the district is on its feet financially and the costs of an audit – around $75,000 – would have to be passed on to the customers.
Pike County Judge-Executive Wayne T. Rutherford then said that Harris’ road fund had been depleted and Harris responded that he would find the money for the audit in the budget.
“It is my motion to freeze all payments used for short line water extensions and fire hydrants to the Mountain Water District,” Harris said. “That should save over $160,000 and will more than pay for the audit.”
There is currently a backlog of requests for short-line extensions.
Rutherford said the other magistrates will have an issue with the money appropriated for hydrants being frozen.
“I get calls all day long about people who need hydrants,” District 2 Magistrate Vernon “Chick” Johnson said. “I have a lot of people in my district who need new hydrants and several hydrants need repaired.”
District 3 Magistrate Leo Murphy said he has several hydrants on the list to be installed.
Harris’ motion was tabled when Rutherford’s motion that a work session be held with state auditor Crit Luallen to discuss the cost of the audit be held. Rutherford’s motion passed with Harris casting the only descending vote.
Rutherford said the last two fiscal court audits cost around $21,000 each. James said the last two water board audits cost around $20,000.
The court unanimously agreed to oppose the proposed Kentucky Power rate increase and also agreed to draft a letter asking the utility to reimburse the county for money spent during the late-December winter storm.
The fiscal court also agreed to a partnership with Mountain Comprehensive Care Center and extended its lease agreement to 30 years so the construction of housing units for intellectually disabled people can proceed at Douglas Park on county-owned property. The complex will contain four units originally and 16 units in the near future, according to MCCC’s counsel and ombudsman Julie Paxton.
The court accepted the low bid submitted by R.L. Construction Inc. for site preparation at Scott Fork.
Rutherford was authorized by the court to sign a Master Incentives Agreement with EQT as soon as the final documents are received. Assistant county attorney Roland Case and Pike County Office of Energy and Community Development Director Charles Carlton said they have been negotiating the document with EQT attorneys for months.
Rutherford said EQT signed an agreement with the state in July 2009.
The fiscal court’s most recent action will keep the project on schedule as to when construction will begin on EQT’s 45,000 square foot building, which will house their regional headquarters. The timeline for completion is spring 2011 and 100 people will be employed on the construction job.
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