Chester receiver demands stormwater authority stop paying board salaries

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Chester’s state-appointed receiver Michael Doweary issued an order Tuesday, demanding the Stormwater Authority of the City of Chester cease paying salaries to six board members.

Doweary asserted Chester City Council never signed off on salaries for the SAC board members pursuant to the Municipal Authorities Act.

The affected board members include Susan Dennis, Fred Green, John Shelton, Joy Taylor, Portia West and Elizabeth Williams. Green and West currently serve as City Council members. Taylor is the city controller. In April 2024, first-term Mayor Stefan Roots accused Green and West of violating the city charter for receiving two salaries from the city.

“With regards to Portia West, her term expired on October 28, 2024, yet she remains on the SAC Board and continues to receive salary payments,” Doweary wrote. “While the MAA provides that a board member may stay on until replaced, SAC’s Articles of Incorporation only authorize five (5) board members, yet SAC currently purports to have nine (9) board members.”

SAC interim executive director Bruce Conner and solicitor Steven Hann did not immediately respond to a request for comment. Green and West did not immediately respond to a request for comment.

“This order only applies to ceasing current and future salary payments,” Doweary wrote. “I reserve the right to seek recoupment of unauthorized salary payments made to these individuals, or unauthorized payments made to other individuals.”

The receiver’s office declined to comment on the order. Doweary claimed SAC has been aware of the issue for months but has yet to take action.

Doweary, who is tasked with rescuing the bankrupt city’s purse, clashed with SAC officials in recent months over allegations of bad governance. In May 2024, Doweary filed a motion with the U.S. Bankruptcy Court to gain access to SAC’s finances.

He alleged SAC conducted an unauthorized board expansion, blocked officials and paid board salaries without permission. Additionally, his office lambasted SAC for acquiring a loan from former executive director Horace Strand and his church to make payroll.

Attorneys representing the receiver’s office deposed SAC officials in October, further scrutinizing the embattled authority for allowing a contractor to donate a $400,000 building as a “restricted gift” to Strand’s nonprofit among other allegations. Strand accused the receiver of having “an axe to grind.”

Strand retired from the authority in November, citing the “stresses” of managing Chester’s stormwater system.

Doweary’s plan to pull the city out of bankruptcy involves monetizing the city’s various water assets. He tendered his resignation Thursday.

Rick Siger, secretary of the Pennsylvania Department of Community of Economic Development, nominated Vijay Kapoor, Doweary’s chief of staff, to continue Doweary’s work and maintain the office’s position on Chester’s water assets.