Weirton - City Council voted Monday to issue almost $2.5 million in water revenue bonds to pay for a major water plant upgrade, but some councilmen are unhappy with the manner in which the city will have to pay back the debt.
By a 5-1 vote, council members passed the third and final reading of an ordinance authorizing Weirton to incur $2,496,208 in bond debt, with Councilman David Dalrymple casting the lone "no" vote. A public hearing regarding the bond issue preceded the regular meeting, but no residents showed up to comment on the matter.
Controversy came, however, before a vote on a resolution establishing electronic repayment of the debt to the West Virginia Municipal Bond Commission. The resolution authorizes the commission to automatically withdraw payments monthly from the city's account.
Councilman Fred Marsh suggested the city should set up a separate account specifically for repaying the loan. But John Stump of Steptoe and Johnson, bond counsel for the city, told council members the state would not allow that.
City Manager Gary DuFour expressed concern the resolution gives the state "unfettered access" to the city's funds.
Stump said he understood council's concerns, but noted that as the lender, the state has the right to make the rules regarding repayment.
"They want their money immediately, that's what it comes down to," he said. "I don't agree with it."
Finance Director Tom Maher Jr. said the city would be given a few days' notice before the funds are electronically withdrawn; however, he said he would rather see the city make payments to the state instead of the state automatically taking them.
Marsh added computer errors sometimes occur, and the city's general fund could be tied up in such a case.
Stump provided council members with a phone number for Chris Jarrett, executive director of the West Virginia Water Development Authority.
"I would encourage every member of council to call Mr. Jarrett" and express their opinions, he said.
Councilman George Ash moved to table the resolution until council members could gather more information, with Councilman George Kondik seconding. However, Kondik withdrew his second after Stump informed council members that tabling the matter could put the funding in jeopardy.
The matter was put to a roll call vote, which led to a 3-3 tie - with councilmen Ronnie Jones, Max Fijewski and George Kondik voting in favor, and Marsh, Ash and Dalrymple voting against. It then fell to Mayor Mark Harris to break the deadlock.
"I'm not jeopardizing free money, so I'm voting yes," Harris said.
Following the vote, Marsh explained his "no" vote was not based on the payment process, but on the state telling the city from which account it must repay the loan.
"The (Internal Revenue Service) doesn't even do that," Marsh said.
In another matter, council members voted unanimously to award a contract to replace the Greenbrier Road Bridge in the city to James White Construction of Weirton, at a cost of $96,000. Early estimates predicted the cost of the project at about $140,000.
Public Works Director John Brown told me that the construction company's engineer told him work on the bridge could begin within eight weeks. The city this spring lowered the deteriorating span's weight limit from 10 tons to 3 tons and established a 10-foot height bar to prevent large vehicles from crossing.
During the residents' comments phase of the meeting, Ward 1 resident Herbert Veal presented Jones with a plaque thanking him for his prompt response in addressing concerns from residents of the Harris Hills area of the city.
"It's not very often you can get a quick response from some officials," Veal said.
Harris said he was pleased to hear the positive comments.
"Usually we get a lot of complaints," he said. "It's nice to hear someone step up and thank a councilman for what they've done."