MABS board deadlocks in reorganization meeting
Pietkiewicz raises litigation concerns; office head clarifies finances
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL - The Municipal Authority of the Borough of Shenandoah Offices.
RAVEN RUN – The Municipal Authority of the Borough of Shenandoah (MABS) deadlocked in their selection of new officers Thursday night.
MABS held its reorganization meeting via a hybrid meeting, held at its Raven Run office and on Zoom.
The meeting followed a half-hour executive session regarding ongoing litigation, and came to a grinding halt when nominations were requested for chairperson.
James Rusin, appointed by borough council last month to replace former chairperson Joseph Anczarski, whose term expired, nominated Leo Pietkiewicz for the post.
Pietkiewicz is a longtime Shenandoah Borough councilman, and has been asked to recuse himself from matters regarding the sale of the authority on both sides, by the MABS board itself in March for its side, and by Tom Twardzik, Ateeco, Inc., owner, in October for the borough’s side.
No second was received, and John Szczyglak nominated Brian Dillman, receiving no second once again.
The remaining board member, Gary Wood, was absent, so, while Dillman and Pietkiewicz could technically second their own nomination and bring the election to a vote, the vote would deadlock at 2-2.
With no way to settle the matter without Wood, Solicitor Joe Nahas suggested continuing the meeting with him serving as a temporary chair for organizational purposes only, and settling the matter at a special meeting.
Concerns raised regarding civil complaint
During the public participation portion of the regular meeting that followed, Pietkiewicz raised concerns regarding MABS filing a civil complaint against the borough. He brought up the legal requirement that any action be approved by the board.
Pietkiewicz expressed concern regarding the filing of litigation against the borough in December with “no public notification that it was voted on by the board so we could file that.”
The litigation in question was filed by the law firm of Elliott Greenleaf and Dean, Wilkes-Barre, who was retained as special counsel to represent MABS regarding the proposed sale of it.
“It doesn’t say anything in there stating that we’re giving him authority to proceed with anything,” Pietkiewicz said, regarding recent meeting minutes. “My question is, was it authorized in executive session and then never actually voted on publicly?”
In March of 2020, MABS retained the law firm to “research, investigate, and commence legal action if warranted against the Borough of Shenandoah… to stop the proposed sale of the Shenandoah water supply, treatment, and distribution system and any other authority assets because the authority has determined that said proposed sale is not in the best interests of the Authority or its customers,” according to the Sentinel’s reporting at the time.
Pietkiewicz requested a copy of the minutes from that meeting, as well as the audiotape.
Clarifying rumors about finances
Later in the meeting, during the reports portion, Jennifer Hepler, office supervisor, clarified the financial position of MABS, saying the authority is far healthier than rumors proclaim.
“We’re not operating in the red,” Hepler said, citing rumors that the authority “doesn’t know how to handle” its money. “In 2015, when the DCED study was done, the authority was in financial distress, but that was before I took the position of office supervisor. Myself, along with my coworkers, have made changes to try to bring the authority back into the black, which we have done.”
“We have a construction fund, which is for the upgrade of the plant and the distribution system. This account was opened with proceeds from the refinance loan,” Hepler said. “There’s a little over $1.4 Million in the account, and this account is only used to pay for invoices pertaining to upgrades to the plant and distribution system, not legal fees and invoices for the day-to-day operations of the authority.”
Hepler added that the authority has three savings account, two from the telecomms tower and wind farm leases, and one for the upkeep of the dams.
She added that day-to-day costs and legal fees are paid from the general fund.
“We are a public entity, and all of our finances are public knowledge. If anyone, at any time, has any questions about our finances, they can contact me instead of believing all the rumors they hear on the street,” Hepler said.
In other business, the authority approved posting and advertising the position of a full-time distribution employee, following their resignation. The authority board, and Bill Moyer, working foreman, thanked and commended him for his service.
The board also heard a customer issue from Shenandoah Heights regarding an allegation of faulty meter readings, which the board voted to follow past practice of establishing a payment plan for the customer’s bill.
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