Councilman wants water authority boss to resign
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Michael Kenney, executive director of the Pittsburgh Water and Sewer Authority, listens to City Councilman Patrick Dowd, who called for Kenney's resignation.
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Pittsburgh Councilman Patrick Dowd today called for the resignation of Pittsburgh Water and Sewer Authority Executive Director Michael Kenney at a special council meeting that revealed new details of the director's ties with executives at firms that got authority contracts.
Mr. Dowd, also a water authority board member, said those relationships constituted "both potential and real conflicts of interest" that destroyed his confidence in Mr. Kenney.
Mr. Kenney today told council that he was, from 2007 through December 2008, a 20 percent shareholder in a business called Utilishield Inc., along with Christopher H. Kerr, Jay Skezas, Joe Hohman and Brian Hohman. Utilishield provides water line warranties, though not in Pittsburgh.
Mr. Kerr, Mr. Skezas, and both Mr. Hohmans -- who are father and son -- are executives in Resource Development and Management. Mr. Kenney in August 2008 awarded RDM a contract to analyze the Pittsburgh water authority's management structure. RDM was paid $85,000 to provide a study that has not yet been made public.
Mr. Kenney awarded that contract while still a shareholder in Utilishield.
Last year, after Mr. Kenney sold his shares in Utilishield, he was involved in the authority's decision to assign to every residential ratepayer, for $5 a month, a warranty for the privately owned water and sewer lines below their homes and yards. The firm receiving that premium is Utility Line Security, led by Mr. Kerr and including some of the other principals in Utilishield.
Mr. Dowd said Mr. Kenney had only revealed his business ties yesterday -- not while the authority board was considering the contracts.
"We cannot have board-executive director relations that are predicated on anything other than full confidence," Mr. Dowd said, as he sat across the council table from Mr. Kenney. "The executive director has to resign."
He also called for state and local investigations of the authority's Utility Line Security and Resource Development and Management contract, and a new bidding process for the role of warranty provider now held by Utility Line Security.
Water authority board Chairman Dan Deasy, a state representative, said he has "confidence in the director. I think he's done a good job.
"Should he have made some of these disclosures? Absolutely," Mr. Deasy continued, adding that Mr. Kenney's connections are part of his effectiveness.
"I think it was inappropriate to call for the director's resignation at this table," said Councilwoman Theresa Smith. She said water authority employees and residents have been "calling and saying what a great director you are."
First Published March 25, 2010 11:58 am
