The Fayette Tribune, Oak Hill, W.Va.

Local News

August 13, 2008

Fayetteville voters approve sale of city water, sewer systems

By Matthew Hill

Fayetteville residents decided overwhelmingly Saturday to sell their water and sewer systems to West Virginia American Water Co.

According to company spokesperson Jessica Greathouse, about 86 percent of the votes cast favored the sale. A final tally is expected Thursday. Greathouse added that the purchase agreement should be signed by the end of September.

Once the sale is complete, water will be delivered to the town’s 1,900 water customers via the company’s New River plant near Beckwith. Fayetteville’s 1,100 sewer customers will receive wastewater service from Fayetteville’s existing sewer plant.

The state’s largest private water provider has been selling water to the Fayette County seat since January under an emergency service agreement.

Town residents participated in early voting on the proposed sale between July 21 and Aug. 6, and the special election took place Saturday. Mayor Jim Akers and other city officials have supported the sale for some time. The town had been in talks with West Virginia American Water Co. since before 2005 and had negotiated a proposed contract for the sale of the water and sewer systems.

According to that contract, the company will pay about $3.9 million to the town for its sewer and water systems, which would eliminate Fayetteville’s related debt. Additionally, the company would invest at least $2.7 million in water system improvements and $1.5 million in sewer system upgrades in the first five years after the sale.

West Virginia American will also pay for the cost of Saturday’s election and will reimburse the town up to $25,000 for legal and accounting fees incurred by the town during negotiations.

City officials have negotiated a discount from West Virginia American’s water rates for the next four years and from its sewer rates for the next two years.

Akers asserted last month that, according to the city’s accountant, Fayetteville residents were facing a water rate increase of 25 percent to 30 percent and a sewer rate hike of 13 percent immediately, had the sale not gone through. Such an increase would have resulted in rates higher than those of West Virginia American Water Co., Akers estimated.

Public hearings on the measure were conducted in Fayetteville on May 22, June 5 and Aug. 7.

— E-mail: mhill@register-herald.com

The Associated Press contributed to this story.

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