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• 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.
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• 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
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• 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.
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Patricia Cruise
Clerk of the Town of Pulaski, Virginia
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