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The Weirton Transit Corp. Board of Trustees continues to steer the non-profit entity through the process of dissolution as part of plans to transition the existing bus service into a municipal department, meeting in special session Monday.
Dan Guida, who was hired as the board's legal counsel during a special meeting Oct. 27, noted the majority of the actions put on Monday's agenda were an effort to formalize the dissolution process and ensure the proper steps are taken.
The board unanimously approved five agenda items during the meeting, including the adoption of amended and restated articles of incorporation and bylaws, a resolution to dissolve, liquidate assets and adopt a plan of dissolution, a formal plan of dissolution and the distribution of assets, and the hiring of Stephen Magnone to serve as the accountant for Weirton Transit during the process.
Guida reported copies of all the documents were sent to board members for their review Friday, further explaining the previous resolution to dissolve approved by the board was being rescinded to make sure it more properly followed state law.
"It wasn't completely in compliance with the Nonprofit Corporation Act," he said, referring to regulations established under Chapter 31E of West Virginia Code.
It was noted the process to dissolve would include a listing of all property owned by Weirton Transit, as well as any creditors.
Board Vice Chair Frank Bohach asked if WTC would need permission from the Federal Transit Administration to transfer ownership of the buses to the City of Weirton as federal funds were used in their purchase. Guida said the board and city would need the blessing of both the FTA and the State of West Virginia, and he is planning to meet with City Attorney Vince Gurrera to establish the terms of a donation agreement for such a transfer.
Board member Brian Maley, among the board members participating by telephone, questioned whether there would be enough funding available to hire a CPA.
"Before we hire anyone, I want to make sure we have the proper funding," Maley said.
Guida said any hiring would be contingent upon receipt of a letter of engagement and having the funds.
It was estimated, pending any delays at the state or federal levels, the full dissolution could be completed within 60 to 90 days. Meanwhile, board Chair Flora Perrone assured residents who use the bus services that they shouldn't see any change in service.
The Transit Board voted in June to begin the process of dissolving the private, non-profit entity which has overseen public transit services in Weirton since its founding in the late 1980s. The move followed the discovery of financial issues in the fall of 2021, which officials have said stemmed from the non-payment of taxes, as well as the resulting fees and penalties.
With assistance from Weirton Council, Transit officials were able to pay off those funds earlier this year but came close to having to shut down transit services, at least temporarily, in June as a result of a lack of available revenue. A shutdown was averted through a paring down of routes and other services, which has continued.
In October, city council unanimously approved, on emergency reading, an ordinance to formally initiate the process of establishing a municipal transit department, including the hiring of a transit director.