PUD approves settlement agreement

GVNW to pay PUD $150,000 for services not performed

EPHRATA — The Grant County Public Utility District commission Monday, approved a settlement agreement between a former consulting firm and the PUD, based upon services the PUD did not receive in 2002.

The settlement of $150,000 from GVNW Consultants, Inc. was approved during the PUD commission's regular business meeting, and was one of many items taken up by the commission Monday.

The PUD filed suit against the firm after the state auditor's office found in a 2002 audit report of the district that PUD management had paid for services it did not receive in 2001 and 2002 contracts with the company. That SAO finding involved GVNW and three others companies.

The settlement was approved after it was also approved by the Washington State Auditor's Office and the Washington Attorney General's Office. The attorney general's office informed the PUD of its approval late last week.

Auditors said in their 2002 report that the PUD "exceeded its authority to provide wholesale fiber optic services and failed to inform the District's elected officials about the activities being performed under these contracts."

According to an auditor's report, GVNW was to provide modifications to the PUD's telecommunications facilities and fiber optic network to allow the PUD to operate an internal telephone service.

Under the settlement, GVNW has 10 days after receiving the settlement approval to pay $150,000 to the PUD in connection with the consulting work. Also as part of the settlement, both the PUD and GVNW will release any claims in connection with the contract work. GVNW must also pay the cost of the suit.

PUD attorney Ray Foianini told the commission at Monday's meeting that he approved of the settlement.

"I believe it's a reasonable settlement," Foianini said, "It's within the range that I can recommend."

Foianini also told the commission that three similar actions taken by the PUD are still in litigation.

Also Monday, the commission approved an agreement with the Transmission Issues Group, that provides