MORGANTOWN — Morgantown City Council moved four items tied to the Morgantown Utility Board’s acquisition of the River Road Public Service District on for future consideration during a brief Tuesday committee of the whole meeting.
MUB has been operating the RRPSD — to which it already provides treated water — through an operating and maintenance agreement since shortly after the PSD approached the county commission last fall about relinquishing control to MUB.
The county commission has already expressed its support for such a move.
MUB will freeze the rates of the 780 or so River Road customers for the next 27 years — the remainder of a 30-year, $3 million bond for which those customers are paying a surcharge. MUB General Manager Tim Ball said once that outstanding debt is expired, the River Road rates will match that of other MUB customers.
In essence, the purchase price is the assumption of River Road’s debt by MUB. Ball said the bonds related to the debt are revenue bonds attached solely to the revenues of MUB, meaning it will not constitute a financial liability for the city.
“We view this proposed acquisition as a win, win,” Ball said. “The customers of River Road will enjoy improved service, including access to the greater technical and professional resources of MUB with no increase in their rates. MUB will enjoy the benefit of growing its customer base, and that kind of growth is a hedge against the ravages of inflation.”
Assuming approvals from council and the county, the issue would then move to its final hurdle, the West Virginia Public Service Commission.
It is anticipated council will take the items up during its April 2 and 16 meetings. The bond ordinance tied to the deal would require a third reading at the first meeting in May.
In other city news, council will also take up the sale of 1.85 acres of real estate at the Morgantown Municipal Airport to RDR Properties LLC at a future meeting
City Attorney Ryan Simonton said the land is made up by two narrow strips adjoining existing RDR property and is not usable for airport purposes.
He said the proposed sale price of $38,000 is in line with the property’s appraised value.
According to Simonton, the details of the sale will ultimately have to be approved by the Federal Aviation Administration to determine if the airport is getting fair value and confirm the land is not necessary for aeronautical purposes.
The land was described as forested hillside situated on the airport property’s boundary, along Hartman Run Road.
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