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HomeMy WebLinkAbout2/27/2003 - Special 171 February 272003 , Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 February 27, 2003 The Board of Supervisors of Roanoke County, Virginia met this day at the Roanoke Regional Training Center, 1220 Kessler Mill Road, Salem, Virginia, this being an adjourned meeting from February 25, 2003 for the purpose of a joint meeting with the City of Roanoke to discuss the formation of a Regional Water and Sewer Authority. IN RE: CALL TO ORDER Mayor Ralph Smith called the meeting to order for the City of Roanoke at 10:25 a.m. The roll call was taken. MEMBERS PRESENT: Mayor Ralph K. Smith, Vice-Mayor C. Nelson Harris, Council Members William H. Carder, William D. Bestpitch, M. Rupert Cutler, Alfred T. Dowe, Jr., Linda F. Wyatt STAFF PRESENT: Darlene L. Burcham, City Manager; William M. Hackworth, City Attorney; Mike McEvoy, Director of Utilities; Jesse Hall, Director of Finance; Christopher L. Slone, Director of Communications Chairman McNamara called the meeting to order for the County of Roanoke at 10:26 a.m. The roll call was taken. MEMBERS PRESENT: Chairman Joseph McNamara, Vice-Chairman Richard C. Flora, Supervisors Michael W. Altizer, Joseph B. “Butch” Church MEMBERS ABSENT: Supervisor H. Odell “Fuzzy” Minnix 172 February 272003 , STAFF PRESENT: Elmer C. Hodge, County Administrator; Paul M. Mahoney, County Attorney; Diane S. Childers, Clerk to the Board; Dan O’Donnell, Assistant County Administrator; Diane D. Hyatt, Chief Financial Officer; Gary Robertson, Director of Utilities IN RE: OPENING CEREMONIES The invocation was given by Council Member Nelson T. Harris, Pastor, Virginia Heights Baptist Church. Chairman McNamara and Mayor Smith offered welcoming remarks, and both extended their appreciation to staff members for their efforts in bringing the localities to this point in the negotiations. Special thanks were extended to John Williamson, Chief Executive Officer of Roanoke Gas Company, for the assistance he provided with regard to rate analysis. IN RE: REPORT ON REGIONAL WATER AND SEWER AUTHORITY The report was presented by Gary Robertson, Roanoke County Utility Director, and Mike McEvoy, Roanoke City Utility Director. Mr. Robertson stated that it was not a coincidence that the Regional Training Center was chosen as the location for this meeting. He noted that the regional accomplishments made by the Fire and Rescue Department at the training center, the joint staffing of the Clearbrook station, and the radio system are accomplishments which the two localities wish to continue to build upon. Mr. Robertson indicated that discussions regarding the formation of a Water Authority or regional cooperation on a water supply have been ongoing for more than 30 years. Mr. Robertson stated that in 2002, City and County staff were directed to 173 February 272003 , pursue the possibility of a Regional Water Authority. During these meetings, a number of different scenarios were considered including a contract amendment between the City and County, the possibility of a Wholesale Authority which would combine water sources but keep distribution systems separate, and a full service Authority which would combine not only sources but also transmission, distribution, and administration. Mr. Robertson noted that in reviewing these possibilities, it became clear that any discussion of a Water Authority should also be expanded to include wastewater. Mr. Robertson stated that staffs for the City and County are recommending the formation of a full service Water and Wastewater Authority based on three principles: ? Equal representation between the City and County ? The assets of both the City and County should be pooled ? Equalization of rates between the City and County Mr. Robertson extended his appreciation to members of City Council and the Board of Supervisors for the support they have extended to staff during these discussions. Mr. McEvoy stated that the City is recommending that a full service Water and Wastewater Authority be formed. This would include supply, treatment, transmission and distribution of water for the citizens of both localities, as well as the collection and treatment of wastewater. Functions such as meter reading, billing, and account services would also be incorporated. Staff is recommending, as one of the guiding principles, that an independent governing board be established to oversee the 174 February 272003 , Authority. The Authority would consist of equal representation from both localities. Staff believes that there are significant efficiencies to be gained which will benefit the customers. Examples of these efficiencies include: shared personnel and equipment; combined management of the water reservoirs for maximum yield; joint meter reading and billing operations; consistent operating policies (such as levels of treatment, combined purchasing, drought management, and development review); and better planning and design for future improvements to yield more efficient service delivery, saving time and money by not duplicating solutions to the same problems. In addition, financial stability will result from combining the two systems, which is important in a capital intensive industry such as utilities. Strong utility systems can also be helpful in promoting economic development. Other benefits of combining systems include equalization of rates, customers will gain redundancy during short-term emergencies as well as during droughts, and the replacement of older infrastructure will be facilitated, as well as the construction of new facilities in areas not currently served by utilities. Mr. McEvoy noted that while the County and City are currently the only participating localities, the Authority will be structured to allow other jurisdictions to join in the future. He indicated that all of the items mentioned apply to both water and wastewater services. He also noted that, specifically with regard to water, a stronger more stable water supply is created for both localities by providing assets, maximizing existing facilities, and making additional interconnections. Water plant expansions can be deferred through efficient use of existing facilities and when construction of future 175 February 272003 , large water supply projects becomes necessary, the Roanoke Valley will be well positioned to undertake such a project. Mr. Robertson stated that in many ways, wastewater could be interpreted as being the starting point for consideration of an Authority. He noted that Roanoke County, Roanoke City, City of Salem, Town of Vinton, and Botetourt County already share a single wastewater treatment facility and joint interceptor lines. The formation of an Authority further solidifies that arrangement and makes planning for future improvements easier and less controversial. The drought caused much of the attention to be focused on the water issue. As discussions continued regarding the formation of a Regional Water Authority, it became clear that wastewater needed to be included as part of this plan. Mr. Robertson reported that Roanoke County currently has a contract arrangement with the City of Roanoke for wastewater treatment. As a result of requirements from the Department of Environmental Quality (DEQ), as well as a desire for additional capacity, the third change to this contract in less than 10 years will soon be executed. The forming of an Authority between Roanoke County and Roanoke City providing for shared ownership removes the uncertainty involved with renegotiating a contract for wastewater services in the future and also provides increased leverage for permitting with government agencies. Mr. Robertson stated that both the County and City utility departments share personnel, billing, equipment, and administration between water and sewer. It 176 February 272003 , was not logical to separate these operations and place only one in an Authority. To gain the maximum benefits in terms of efficiency and cost savings necessitates that wastewater be included in the Regional Authority. Mr. McEvoy indicated that the next step in the process is the approval by both localities of a resolution endorsing the creation of a Regional Water and Wastewater Authority. The resolution is based on three principles: (1) Equal representation on an independent governing board. (2) Pooled assets of both localities utility systems. (3) Equalization of rates. Mr. McEvoy stated that the members of City Council and the Board of Supervisors are being asked to authorize staff to prepare the necessary contracts, documents and studies for the formation of a Regional Water and Wastewater Authority. Staff will present this information to the governing localities within 60 days. Mayor Smith congratulated Mr. Robertson and Mr. McEvoy for the efforts in bringing the localities to this point in the formation of an Authority. IN RE: 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) R-022703-1 177 February 272003 , Mr. Mahoney reported that the resolution endorses the creation of a Regional Water and Wastewater Authority based upon the principles previously outlined by Mr. Robertson and Mr. McEvoy. Mr. Mahoney indicated that the resolution establishes an aggressive directive that staff returns to the Board in a short period of time for acceptance of the agreements and documents to begin the implementation of this process. Mr. Mahoney recommended approval of the resolution. Supervisor McNamara moved to adopt the resolution. The motion carried by the following recorded vote: AYES: Supervisors Flora, Church, Altizer, McNamara NAYS: None ABSENT: Supervisor Minnix Supervisor Church stated that he was very pleased at the action being taken today, and indicated that the choice to allow staff to handle the negotiations between the two localities was a wise one. He stated that it is a testament to the determination of both localities to pursue a Regional Authority that this agreement is proceeding despite the fact that we are no longer facing a drought situation. He noted the increased level of regional cooperation that exists today, and stated that a combined Authority will be an economic development asset for the area. Supervisor McNamara commended both governing bodies for allowing the staff to handle the negotiations, and stated that we are one valley, one citizenry, and 178 February 272003 , one economic development unit. He indicated that this action is a tremendous step forward in this regard. 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 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. 179 February 272003 , 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. 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 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 Bestpitch stated that it is appropriate that the agreement is being signed when both reservoirs are full and the localities are not in a time of crisis. He voiced his support for the two localities working together, and stated that he hopes this will lead to examining other areas for potential cooperation. 180 February 272003 , Council Member Harris expressed his appreciation to the staff members who have handled these negotiations. He stated that this is a great day for the Roanoke Valley and an atmosphere of regional cooperation has been cultivated. He stated that this is an action that the business leadership and citizens can be proud of, and that will set in motion improvements that will benefit future generations. He noted that allowing the staff to handle this issue has proven to be a valid approach. Council Member Carder extended his appreciation to the staff and stated that this is a big step forward in viewing the Roanoke Valley as a whole rather than as separate constituencies. He expressed his desire to see this trend continue in other areas such as regional land use planning, transportation, view shed protection, and economic development. Council Member Wyatt noted that in the past, there was much political posturing and efforts at regional cooperation proved unsuccessful. She stated that she is honored to be part of this action today which demonstrates that the members of the City Council and Board of Supervisors are “statespersons” and not “politicians”. She commended both localities for their cooperation and stated that the citizens will benefit from this action. Council Member Cutler thanked the staff for their excellent work and commended them for the inclusion of a provision in the resolution which will allow other jurisdictions to join in and expand the mission of the Authority to include, among other issues, stormwater management. 181 February 272003 , Mayor Smith recognized Ms. Burcham and Mr. Hodge for comments. Ms. Burcham stated that it was her desire to remain quiet today and indicated that it was City Council’s day. She stated that she was pleased to be present to share in the events of this day. Mr. Hodge stated that leadership and the expectation for excellence originates with the Board and City Council. They set the standard and are, accordingly, the ones who deserve the credit. He stated that much work remains to be completed. He indicated that this effort was undertaken with the expectation that it would be a small step toward regional cooperation, and that the City and County are fortunate to be participants in this process. Council Member Cutler moved to adopt the resolution. The motion was seconded by Council Member Bestpitch. The motion carried by the following recorded vote: AYES: Council Members Bestpitch, Carder, Cutler, Dowe, Harris, Wyatt, Smith NAYS: None IN RE: ADJOURNMENT Chairman McNamara and Mayor Smith adjourned the meeting at 10:57 a.m. Submitted by: Approved by: ________________________ ________________________ Diane S. Childers Joseph P. McNamara Clerk to the Board Chairman 182 February 272003 , This page intentionally left blank