District pays Alliance $181,550 monthly
BY ROGER SMITH
MOUNTAIN CITIZEN
INEZ — The search for a district water manager remains stalled nearly four months after the position became vacant, prompting Martin County Water District (MCWD) board members March 24 to question why the utility continues paying for the role through its $181,575-a-month management contract with Alliance Water Resources (AWR).
MCWD Chairman Tim Thoma pressed AWR officials for an update during the board’s regular meeting, noting that the district has continued to receive full invoices while the position remains unfilled.
Thoma questioned Erica Bogenpohl, P.E., senior operations manager for AWR, for an update on the district manager search. Bogenpohl has served as a key contact for the district and has attended board meetings since former district manager Todd Adams left four months ago.
Bogenpohl reminded Thoma that she told the board last month that a candidate had declined the offer.
“So we decided to hire a recruitment agency to assist us in this effort,” Bogenpohl said. “That recruiter has produced a number of candidates. None of them has been able to move forward with the process of having an interview with myself yet. The update that she gave me on Friday is that the search is proving to be more challenging than she had anticipated, but that she was still hopeful and to give her one more week to produce a viable candidate for us.”
Thoma then asked whether the district was still paying for the position through AWR’s monthly management fee.
“We’re all in agreement that the district is paying for this position every month. Right?” Thoma asked. “It’s in our management fee?”
Bogenpohl confirmed that it is.
“So we’re paying for a position that hasn’t been filled for four months, but the invoices keep coming,” Thoma said.
Board member Vernon Robinson asked whether the district’s monthly invoices had been reduced while the position remained vacant.
“No,” Bogenpohl replied.
“This will be one topic that we will talk about in executive session,” Thoma said.
AWR has managed the district since 2019, following the Kentucky Public Service Commission’s order that Martin County place its water system under outside management. The PSC’s order followed the district’s failure to hire a general manager despite repeated requests from regulators. The Missouri-based AWR came on board at the start of 2020 to manage operations following years of severe water loss — averaging about 65% to 75% — and deteriorating infrastructure.
The PSC order also included a permanent rate increase and a surcharge for debt repayment that together raised customer bills by about 44% at the time.
After nearly six years of professional management by AWR, the district began seeing reduced water loss rates last fall from as high as 78% to roughly 45%.
At the March 24 meeting, AWR informed the board that water loss for February was 48%, down from 52% in January.
In other business, Thoma announced that repairs to the Turkey water storage tank will proceed, as the district has secured the easements necessary for the project.
“That project is now ready to move forward with bidding,” Thoma said.
Watch Martin County Water and Sanitation board meetings at youtube.com/@mountaincitizen4369.