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HomeMy WebLinkAbout2/27/2003 - Regular.. ~'- Working Document -Subject to Revision Action Agenda Joint Meeting County of Roanoke City of Roanoke February 27, 2003 NOTE: THE PURPOSE OF THIS MEETING IS TO DISCUSS THE POSSIBLE FORMATION OF A JOINT WATER AND SEWER AUTHORITY. THE MEETING WILL BEGIN AT 10:00 A.M. AND WILL BE HELD AT THE REGIONAL TRAINING CENTER, 1220 KESSLER MILL ROAD, SALEM, VIRGINIA. A. CALL TO ORDER (10:00 a.m.) 1. Roll Call -City of Roanoke County of Roanoke ROANOKE CITY ROLL CALL AT 10:25 A.M. WITH ALL MEMBERS PRESENT ROANOKE COUNTY ROLL CALL AT 10:26 A.M. WITH HOM ABSENT B. OPENING REMARKS 1. Joseph P. McNamara, Chairman Roanoke County Board of Supervisors 2. Ralph K. Smith, Mayor City of Roanoke C. REPORT ON REGIONAL WATER AND SEWER AUTHORITY Presented by: Mike McEvoy, Utility Director -City of Roanoke Gary Robertson, Utility Director -County of Roanoke IT WAS REPORTED THAT STAFF FOR THE CITY AND COUNTY RECOMMEND THE FORMATION OF A REGIONAL WATER AND WASTEWATER AUTHORITY BASED ON THREE PRINCIPLES: ~1) EQUAL REPRESENTATION BETWEEN THE CITY AND COUNTY. (2) THE ASSETS OF BOTH THE CITY AND COUNTY SHOULD BE POOLED. ;.. (31 EQUALIZATION OF RATES BETWEEN THE CITY AND COUNTY. ~ A ~ STAFF REPORTED THAT THIS WOULD BE A FULL SERVICE WATER AND WASTEWATER AUTHORITY. FUNCTIONS SUCH AS METER READING, BILLING, AND ACCOUNT SERVICES WOULD BE INCORPORATED. IT WAS NOTED THAT WHILE THE CITY AND COUNTY ARE CURRENTLY THE ONLY PARTICIPATING LOCALITIES. THE AUTHORITY WILL BE STRUCTURED TO ALLOW_ OTHER JURISDICTIONS TO JOIN IN THE FUTURE. D. RESOLUTIONS Resolution endorsing the creation of a regional water and wastewater authority, and authorizing the County Administrator, Director of Utilities and County Attorney to proceed with developing an agreement and plan to create such an authority. (Paul Mahoney, County Attorney -County of Roanoke) R-022703-1 JPM MOTION TO ADOPT RESOLUTION URC WITH HOM ABSENT 2. Resolution endorsing the creation of a regional water and wastewater authority, and authorizing the City Manager, Director of Finance and City Attorney to proceed with developing an agreement and plan to create such an authority. (William M. Hackworth, City Attorney -City of Roanoke) COUNCIL MEMBER CUTLER MOVED TO ADOPT THE RESOLUTION MOTION SECONDED BY COUNCIL MEMBER BESTPITCH URC D. ADJOURNMENT JPM AND RKS ADJOURNED MEETING AT 10:57 A.M. 2 O~ ~oANO~E' ~ '~ ~ z ~ °v a? 1838 DIANE S. CHILDERS CLERK TO THE BOARD Email: dchilders~co.roanoke.va.us C~o~t~t~ ~f ~o~xxr~~ P.O. BOX 29800 5204 BERNARD DRIVE ROANOKE, VIRGINIA 24018-0798 (540) 772-2005 FAX (540) 772-2193 March 1, 2003 Mr. Elmer C. Hodge, Roanoke County Administrator Mr. Gary L. Robertson, Roanoke County Utility Director Mr. Paul M. Mahoney, Roanoke County Attorney Dear Gentlemen: BRENDA J. HOLTON, CMC DEPUTY CLERK Email: bholton®co.roanoke.va.us Attached is a copy of Resolution No. 022703-1 endorsing the creation of a Regional Water and Wastewater Authority, and authorizing the County Administrator, Director of Utilities, and County Attorney to proceed with developing an agreement and plan to create such an authority. This resolution was adopted by the Roanoke County Board of Supervisors at a joint meeting with Roanoke City Council on Thursday, February 27, 2003. If you need further information, please do not hesitate to contact me. Sincerely, ~~~ V ~ C,'CUG`~iG(1J Diane S. Childers Clerk to the Board of Supervisors Attachment cc: Diane D. Hyatt, Chief Financial Officer Darlene L. Burcham, Roanoke City Manager Jesse A. Hall, Roanoke City Finance Director William M. Hackworth, Roanoke City Attorney Mary F. Parker, Clerk, Roanoke City Council Michael T. McEvoy, Director, Roanoke City Department of Utilities AT AN ADJOURNED MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, HELD AT ROANOKE VALLEY REGIONAL FIRE-EMS TRAINING CENTER ON THURSDAY, FEBRUARY 27, 2003 RESOLUTION 022703-1 ENDORSING THE CREATION OF A REGIONAL WATER AND WASTEWATER AUTHORITY, AND AUTHORIZING THE COUNTY ADMINISTRATOR, DIRECTOR OF UTLITIES AND COUNTY ATTORNEY TO PROCEED WITH DEVELOPING AN AGREEMENT AND PLAN TO CREATE SUCH AN AUTHORITY WHEREAS, the recent drought and the need to expand and upgrade the wastewater treatment facility currently serving the Roanoke Valley have focused the need for a regional approach to the provision of water and wastewater services; WHEREAS, after extensive discussions, representatives of the City of Roanoke and the County of Roanoke have concluded that a "full service" water and wastewater authority would be the best vehicle for ensuring the citizens of their localities the most reliable means of providing water and wastewater treatment at the lowest cost and best rate for customers, as well as providing the best service; and WHEREAS, the Virginia Water and Sewer Authorities Act, §§15.2-1500, et seq., Code of Virginia (the "Act"), provides full authority for the City and the County to create an independent authority that would be responsible for the supply, treatment, distribution and transmission of water and the collection and treatment of wastewater; and WHEREAS, the City and the County desire to proceed to create such an authority, guided by the following principles: 1. That the assets and liabilities of the City and of the County water and wastewater utilities would be merged into one full service authority created pursuant to 1 the Act, to be responsible for the supply, treatment, distribution and transmission of water and the collection and treatment of wastewater. 2. In establishing and operating such an authority: a. Both localities would have equal representation on the authority's governing body. b. The assets and liabilities of the City and of the County utility systems would be pooled. c. Over a mutually agreeable period of time, the water and wastewater treatment rates of the City and the County will be equalized. 3. The City and the County will endeavor to reach agreement within the next sixty (60) days on an agreement and plan to accomplish the above, which agreement shall provide for creating an authority within the next twelve (12) months and include a schedule for implementing the various steps to be undertaken to create a combined water and wastewater system; and WHEREAS, the Council of the City of Roanoke and the Board of Supervisors of Roanoke County desire to memorialize the above by the adoption of concurrent resolutions, and to authorize their respective staffs to proceed with developing a plan to create such an authority. THEREFORE, BE IT RESOLVED by the Board of Supervisors of Roanoke County as follows: 1. The Board hereby endorses the principles stated above regarding the creation of a regional water and wastewater authority. 2. The Board hereby authorizes the County Administrator, the Director of Utilities, and the County Attorney to proceed to negotiate with the City within the next 2 sixty (60) days, if possible, the terms and conditions of an appropriate agreement and plan to create such an authority within the next twelve (12) months; such agreement to be subject to the approval of the respective governing bodies. On motion of Supervisor McNamara to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Flora, Church, Altizer, McNamara ABSENT: Supervisor Minnix NAYS: None A COPY TESTE: Diane S. Childers Clerk to the Board of Supervisors cc: File Paul Mahoney, County Attorney Diane D. Hyatt, Chief Financial Officer Gary Robertson, Utility Director Mary F. Parker, Clerk -City of Roanoke 3 Agenda Joint Meeting County of Roanoke City of Roanoke February 27, 2003 /o p NOTE: THE PURPOSE OF THIS MEETING IS TO DISCUSS THE POSSIBLE FORMATION OF A JOINT WATER AND SEWER AUTHORITY. THE MEETING WILL BEGIN AT 10:00 A.M. AND WILL BE HELD AT THE REGIONAL TRAINING CENTER, 1220 KESSLER MILL ROAD, SALEM, VIRGINIA. A. CALL TO ORDER (10:00 a.m.) 1. Roll Call -City of Roanoke County of Roanoke B. OPENING REMARKS 1. Joseph P. McNamara, Chairman Roanoke County Board of Supervisors 2. Ralph K. Smith, Mayor City of Roanoke C. REPORT ON REGIONAL WATER AND SEWER AUTHORITY Presented by: Mike McEvoy, Utility Director -City of Roanoke Gary Robertson, Utility Director -County of Roanoke D. RESOLUTIONS 1. Resolution endorsing the creation of a regional water and wastewater authority, and authorizing the County Administrator, Director of Utilities and County Attorney to proceed with developing an agreement and plan to create such an authority. (Paul Mahoney, County Attorney -County of Roanoke) 2. Resolution endorsing the creation of a regional water and wastewater authority, and authorizing the City Manager, Director of Finance and City Attorney to proceed with developing an agreement and plan to create such an authority. (William M. Hackworth, City Attorney -City of Roanoke) D. ADJOURNMENT 1 AT AN ADJOURNED MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, HELD AT ROANOKE VALLEY REGIONAL FIRE-EMS TRAINING CENTER ON THURSDAY, FEBRUARY 27, 2003 A RESOLUTION ENDORSING THE CREATION OF A REGIONAL WATER AND WASTEWATER AUTHORITY, AND AUTHORIZING THE COUNTY ADMINISTRATOR, DIRECTOR OF UTLITIES AND COUNTY ATTORNEY TO PROCEED WITH DEVELOPING AN AGREEMENT AND PLAN TO CREATE SUCH AN AUTHORITY WHEREAS, the recent drought and the need to expand and upgrade the wastewater treatment facility currently serving the Roanoke Valley have focused the need for a regional approach to the provision of water and wastewater services; WHEREAS, after extensive discussions, representatives of the City of Roanoke and the County of Roanoke have concluded that a "full service" water and wastewater authority would be the best vehicle for ensuring the citizens of their localities the most reliable means of providing water and wastewater treatment at the lowest cost and best rate for customers, as well as providing the best service; and WHEREAS, the Virginia Water and Sewer Authorities Act, §§15.2-1500, et seq., Code of Virginia (the "Act"), provides full authority for the City and the County to create an independent authority that would be responsible for the supply, treatment, distribution and transmission of water and the collection and treatment of wastewater; and WHEREAS, the City and the County desire to proceed to create such an authority, guided by the following principles: 1. That the assets and liabilities of the City and of the County water and wastewater utilities would be merged into one full service authority created pursuant to the Act, to be responsible for the supply, treatment, distribution and transmission of water and the collection and treatment of wastewater. 2. In establishing and operating such an authority: a. Both localities would have equal representation on the authority's governing body. b. The assets and liabilities of the City and of the County utility systems would be pooled. c. Over a mutually agreeable period of time, the water and wastewater treatment rates of the City and the County will be equalized. 3. The City and the County will endeavor to reach agreement within the next sixty (60) days on an agreement and plan to accomplish the above, which agreement shall provide for creating an authority within the next twelve (12) months and include a schedule for implementing the various steps to be undertaken to create a combined water and wastewater system; and WHEREAS, the Council of the City of Roanoke and the Board of Supervisors of Roanoke County desire to memorialize the above by the adoption of concurrent resolutions, and to authorize their respective staffs to proceed with developing a plan to create such an authority. THEREFORE, BE IT RESOLVED by the Board of Supervisors of Roanoke County as follows: 1. The Board hereby endorses the principles stated above regarding the creation of a regional water and wastewater authority. 2. The Board hereby authorizes the County Administrator, the Director of Utilities, and the County Attorney to proceed to negotiate with the City within the next sixty (60) days, if possible, the terms and conditions of an appropriate agreement and plan to create such an authority within the next twelve (12) months; such agreement to be subject to the approval of the respective governing bodies. 2 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, A RESOLUTION endorsing the creation of a regional water and wastewater authority, and authorizing the City Manager, Director of Finance and City Attorney to proceed with developing an agreement and plan to create such an authority. WHEREAS, the recent drought and the need to expand and upgrade the wastewater treatment facility currently serving the Roanoke Valley have focused the need for a regional approach to the provision of water and wastewater services; WI-IEREAS, after extensive discussions, representatives of the City of Roanoke and Roanoke County have concluded that a "full service" water and wastewater authority would be the best vehicle for ensuring the citizens of their localities the most reliable means of providing water and wastewater treatment at the lowest cost and best rate for customers, as well as providing the best service; WHEREAS, the Virginia Water and Sewer Authorities Act, § § 15.2-1500, et sec,, Code of Virginia (the "Act"), provides full authority foar the City and the County to create an independent authority that would be responsible for the supply, treatment, distribuCion and transmission of water and the collection and treatment of wastewater; Wf-IEREAS, the City and the County desire to proceed to create such an authority, guided by the Following principles: 1. That the assets and liabilities of the City and of the County water and wastewater utilities would be merged into one full service authority created pursuant to the Act, to be responsible for the supply, reatment, distribution and transmission of water and the collection and treatment of wastewater. 2. In establishing and operating such an authority: a. $oth localities would have equal representation on the authority's governing body. b. The assets and liabilities of the City and County utility systems would be pooled. c. Over a mutually agreeable period of time, the water and wastewater treatment rates of the City and the County will be equalized. 3. The City and County will endeavor to reach agreement within the next sixty (b0) days on an agreement and plan to accomplish the above, which agreement shall provide for creating an authority within the next twelve (12) months and include a schedule for implementing the various steps to be undertaken to create a combined water and wastewater system. WHEREAS, the Council of the City of Roanoke and the Roanoke County Board of Supervisors desire to memorialize the above by the adoption of concurrent resolutions, and to authorize their respective staffs to proceed with developing a plan to create such an authority. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. City Council hereby endorses the principles stated above regarding the creation of a regional water and wastewater authority. 2. City Council hereby authorizes the City Manager, Director of Finance and City Attorney to proceed to negotiate with the County, within the next sixty (60) days, if possible, the terms and conditions of an appropriate agreement and plan tv create such an authority within the next twelve (12) months; such agreement to be subject to the approval of the respective governing bodies. ATTEST: City Clerk. TOTAL P.03 Regional Water and Wastewater Authority Suggested Question and Answer List for Responding to Inquiries 1. Q. What actions are the governing bodies being asked to take today? A. The County and City Staffs are recommending that City Council, and the Board of Supervisors formally authorize and direct their respective Staffs to jointly proceed with the planning and design steps necessary to allow for the creation of a regional water and wastewater Authority. Both governing bodies will need to review subsequent briefings and details on a proposed agreement before final action is taken and the Authority is actually created. 2. Q. Why is a regional Authority needed? A. Both water and wastewater issues are multi jurisdictional in nature. Water and wastewater capacity and resources are drainage basin determined, not local government boundary determined. The most efficient and effective way to manage and utilize the basin's water and wastewater potential is with amulti- jurisdictional organization. In Virginia the most appropriate way to organize a multi jurisdictional water and wastewater operation is with an Authority. The recent droughts, cost of developing new sources of supply and the cost of wastewater treatment has convinced us that a truly regional approach to these challenges is needed. 3. Q. There has been a great deal of public discussion about a water Authority, but why is sewer, or wastewater, now included? A. Much of the media coverage has focused on the water issue because of the drought. However, the original request was to investigate a water and wastewater Authority. In addition, the two operations, water and wastewater, are largely integrated services sharing personnel, billing and computer systems, equipment, management, etc. To gain the most efficiency and synergy from a regional Authority necessitates including wastewater, as well as water. 4. Q. If the best way to deal with water and wastewater problems is regionally, why are the City and the County the only proposed participants in the Authority? A. Last year when we first began analysis of the possibility of .creating an Authority, the other Valley jurisdictions were not yet ready to investigate a regional water and wastewater Authority. We respected that position and focused on working with the two largest jurisdictions. Our aim is to design and implement an Authority that other jurisdictions can join later, under mutually agreeable arrangements, when those jurisdictions believe such a move is in their best interest. 1 5. Q. What will be the impact on other local government water and sewer services because those jurisdictions choose not to join the regional Authority initially? A. Today, depending on the government and service, those governments have contracts with either the City or the County for water supply or wastewater treatment. Those contracts will continue and the local government in question will receive the same service from the new Authority. The new Authority will honor the contracts the same way that the City or County did prior to creating the Authority. 6. Q. The proposal today calls for equal representation of the County of Roanoke and the City of Roanoke on the Board of the new Authority. Why is that? A. The City and the County are proposing to become true partners in meeting the water and wastewater needs of their citizens and businesses. The best way to demonstrate partnership in this endeavor is to be equal partners. In addition, each jurisdiction brings major facilities, assets, resources, opportunities, and challenges to the table. The City and County need to be equal partners in meeting the Valley's water and wastewater needs for the long term. 7. Q. Who will serve on the Board of the new Authority? A. Certainly no decisions have been made as to who will serve. The governing bodies of the City of Roanoke and the County of Roanoke have agreed that there will be equal representation of the two jurisdictions. Whether the representatives will be members of the Board of Supervisors and City Council, or whether the respective governing bodies will appoint private individuals, or a combination of elected and appointed individuals, is one of the issues to be researched and considered along with a host of details to be investigated over the coming months. 8. Q. What will happen to water and sewer rates in the County and the City? A. We are proposing to bring in rate experts to review the County and City rates and to make recommendations. It is our expectation that rates would be equalized over several years. It is also our expectation that rates in the County would gradually decline and rates in the City would gradually increase as the cost and resources of Spring Hollow Reservoir, as well as other resource enhancements, including new interconnections, are spread over a larger customer base. However, the key issue for creating the Authority is to better position citizens of both the County and the City to have reliable and adequate long term, reasonably priced, water and wastewater service. 2 9. Q. Roanoke County has a large debt obligation for Spring Hollow Reservoir. Who will pay for that debt? A. Both the County and the City have debt obligations for various water and wastewater facilities. With these debts come major facilities that are critical to providing reliable regional service. It is expected that the new Authority will assume or service debt for the water and wastewater facilities it will operate. Part of the study and analysis over the coming year will be to work out the legal and financial details. 10. Q. The City of Roanoke has a lot of older water and wastewater facilities that may eventually have to be replaced. Who will pay for these replacements? A. Some portions of the facilities in the City will need to be replaced with new facilities over along-term future replacement program, just as many unserviced areas of the County will need to have new facilities constructed through a future expansion program. In both cases new construction is more costly than lower cost existing facilities. The new Authority will make investment and construction decisions based on the need of all of the water and wastewater customers, and future customers, and uniform rates will be designed to fund needed investments, both for replacement of old facilities and construction of needed new facilities. 11. Q. If other local governments join the new Authority at a later date will they have equal representation? A. The details of the make up of the Authority Board beyond the current agreement that there will be equal representation of the City and the County is a detail to be worked out. The key objective will be to establish a Board of manageable size that can work in the best interest of meeting the water and wastewater needs of the Valley and the region. The new Authority will be designed to allow other jurisdictions to join in the future. 12. Q. Will the new Authority really be more efficient and does being more efficient mean laying off City or County employees? A. There are many areas where the new Authority should be more efficient ranging from a single billing system, to eliminating duplication of equipment, inventories, administrative systems, etc. Future savings in reservoir operations, and new source development, are expected to be a key issues in long-term efficient operations. However, implementing the new Authority will take a great deal of planning and careful integration of systems, resources and personnel. Between retirements, attrition, personnel needs of other departments, and growth, the creation of the Authority will not lead to lay off of any current City or County employees. In addition, we expect to involve employees in the planning, design, implementation and operation of the new Authority so 3 employees of both jurisdictions will be knowledgeable and directly involved in this exciting opportunity to bring more reliable long term water and wastewater service to the Valley. 4