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HomeMy WebLinkAbout2002-08i ,~. • RESOLUTION 2002-08 ADOPTION RESOLUTION REGARDING USER AGREEMENT MARCH 5, 2002 BACKGROUND WHEREAS, the City of Radford, the Town of Dublin, the Town of Pulaski, the County of Pulaski and the County of Montgomery are members of the Pepper's Ferry Regional Wastewater Treatment Authority (the "Authority"), and as such are signatories to the Pepper's Ferry Regional Wastewater Treatment Authority User Agreement dated March 4, 1981, as amended June 26, 1986, December 17, 1992, July 30, 1993, and July 13, 1995 (the "User Agreement"). WHEREAS, on October 11, 2001, the Board of the Authority adopted and approved certain amendments to the User Agreement which will become effective upon approval of the same by the member jurisdictions as provided in Section 8.1 of the User Agreement. WHEREAS, the amendments adopted by the Authority and submitted to the Town Council of the Town of Pulaski, Virginia, for approval and consent pertain to revising the allocation of pump station and treatment plant capacity from pre-determined allocation of • capacity to a use capacity and establishes Authority responsibility to plan and provide WHEREAS, MCPSA has expanded its service area and has acquired treatment capacity to meet its expansion needs. However, it has not been able to acquire comparable need capacity in the Radford Pump Station or the New River Pump Station, this fact resulting in MCPSA's exceeding it's allocation. To obtain parity between used treatment capacity and pump station capacity, MCPSA will purchase 0.1 MGD capacity from Pulaski County and will compensate the Authority for 0.15 MGD Radford Pump Station capacity and 0.256 MGD New River Pump Station capacity. Compensation to the Authority shall be placed in respective debt service accounts to serve members of the Authority. future capacities as deemed necessary for the members' benefit as delineated in the proposed amendments to the User Agreement. In anticipation of said revision, reconciliation of Montgomery County Public Service Authority's ("MCPSA") pump station capacity use in excess of its allocation and Pulaski County having treatment capacity in excess of its need will be addressed by MCPSA compensating others for excess use cost and by the Authority purchasing Pulaski County's excess capacity. WHEREAS, Pulaski County financed separate from the Authority 3.0 MGD capacity as part of the treatment plants initial capacity. Pulaski County has not used this capacity and has sold 0.35 MGD to other members. To make this capacity available under the proposed amendments, the Authority will acquire the remaining 2.65 MGD treatment capacity from Pulaski County. _~ • WHEREAS, the proposed amendments, heretofore adopted by the Board of Directors of the Authority, are as set forth in the revised User Agreement attached hereto and made a part hereof. NOW, THEREFORE, BE IT RESOLVED, by the Council of the Town of Pulaski, Virginia as follows: That subject to the terms and provision of any Security Agreements, Bonds of the Authority and any and all Bond documents or evidences of indebtedness of the Authority, the Town of Pulaski consents to the amendments to the User Agreement, as set forth herein and in the exhibit hereto, approves the same, and if necessary authorizes the Mayor and Clerk to execute and seal the same on behalf of the Town of Pulaski, Virginia. 2. That the above-consent is conditioned upon Montgomery County Public Service Authority acquiring 0.1 MGD Radford Pump Station capacity from Pulaski County and paying the Authority $117,424 as compensation for past excessive usage of the Radford Pump Station and the New River Pump Station. 3. That the above-consent is made with the understanding that the Authority will compensate Pulaski County ONE MII.LION and NO/100 DOLLARS ($1,000,000.00) as an acquisition price for the County's 2.65 MGD excess • treatment capacity. 4. That the Clerk of the Town of Pulaski, Virginia, shall provide a certified copy of the Resolution to the Executive Director of the Authority. This Resolution is effective upon adoption and is adopted by duly recorded vote of the Town Council, on this St" day of March, 2002 as follows: Jeffrey S. Worrell -Aye Bettye H. Steger -Aye Pauline G. Mitchell -Aye James M. Neblett, Jr. -Absent Daniel Talbert, Jr. -Aye Kenneth M. Fleenor -Aye E. G. Black, Jr. -Aye Lane R. Penn -Aye Charles W. Stewart, Jr., Mayor Attest: r c Patricia Cruise, Clerk of Council i • The foregoing is certified to be a true copy of Resolution 2002-08, of the Council of the Town of Pulaski, Virginia, adopted on the 5th day of March, 2002. ~ ~ ~ Patricia Cruise Clerk of the Town of Pulaski, Virginia •