MORGANTOWN — River Road Public Service District Manager Michelle Malone has accepted a conciliation agreement with the state Ethics Commission, admitting she engaged in nepotism in employing her husband and daughter as PSD staff members.
The Ethics Commission approved the agreement Thursday morning.
As part of the agreement, Malone agreed to pay a $1,000 fine and $750 toward costs of the commission’s proceedings. She also agreed to accept a public reprimand and undergo Ethics Act training.
The Ethics Commission leveled the nepotism charges against Malone, who also manages the Paw Paw-Route 19 PSD, in March. River Road employs Malone’s husband, Charles Malone, as system manager and their daughter, Kady Malone, as office assistant. Kady also works for Paw Paw.
The agreement explains that River Road first hired Michelle and Charles Malone as independent contractors to manage the PSD in 2003. The state Public Service Commission (PSC) approved this.
Based on advice of the PSD accountants, it hired Malone as an employee in 2010. Charles was hired in 2012. The agreement and other case documents explain that Kady was hired by both PSDs as a contractor in 2012; River Road made her an employee in 2013.
The agreement cites Malone’s explanation that the employment of family members arose “from the unique factors of the PSDs,” including their small size and lack of resources. Both PSD boards hired her family members knowing they were family.
Malone agreed that employment of her relatives violates the Ethics Act because she is involved in their supervision and in matters affecting the terms and conditions of their employment.
The Dominion Post reported early June that Morgantown Utility Board will acquire the River Road PSD because the PSD lacks the resources to manage the system, which has grown by about 300 customers in 15 years.
On July 5, the Monongalia County Commission provided a resolution of support for an Operations and Maintenance (O&M) agreement, which will next go to the PSC for final approval.
PSD employees will remain on staff until then. Once the O&M agrreent is approved, their employment will end and MUB’s services will begin.
MUB General Manager Tim Ball has said the operations and management agreement could take as long as three months to get PSC approval, while the acquisition could take a year.
Malone previously said she intends to decline a MUB job offer because of her continued responsibilities at Paw Paw, but she plans to seek a full-time job and then would no longer be able to serve at Paw Paw.
