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HomeMy WebLinkAbout6/7/2022 - Special Vinton Town Council Special Called Meeting Council Chambers 311 South Pollard Street Tuesday, June 7, 2022 AGENDA Consideration of: A. 2:00 p.m. - ROLL CALL AND ESTABLISHMENT OF A QUORUM B. ITEMS REQUIRING ACTION 1. Consider adoption of a Resolution authorizing the Town Manager to execute a Transfer Agreement between the Town of Vinton and the Western Virginia Water Authority for the conveyance of the Town’s water and sanitary sewer system to the Authority effective July 1, 2022 C. ADJOURNMENT NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. efforts will be made to provide assistance or special arrangements to qualified individuals with disabilities in order to participate in or attend Town Council meetings. Please call (540) 983-0607 at least 48 hours prior to the meeting date so that proper arrangements may be made. Sabrina M. McCarty, Vice Mayor Keith N. Liles, Council Member Laurie J. Mullins, Council Member Michael W. Stovall, Council Member Vinton Municipal Building 311 South Pollard Street Vinton, VA 24179 (540) 983-0607 1 Meeting Date June 7, 2022 Department Town Council Issue Consider adoption of a Resolution authorizing the Town Manager to execute a Transfer Agreement between the Town of Vinton and the Western Virginia Water Authority for the conveyance of the Town’s water and sanitary sewer system to the Authority effective July 1, 2022 Summary Council at their meeting on December 7, 2021 adopted Resolution No. 2468 certifying its intention to have formal discussions with the Western Virginia Water Authority (the Authority) regarding the Authority’s ownership and operation of the Town’s public water distribution and treatment system and the sanitary sewer collection system. The Executive Director of the Authority and Staff, the Town Manager and Staff along with their respective attorneys have negotiated a Transfer Agreement to include these elements: 1. The Authority will assume the assets of the Vinton Utility System and will provide water and wastewater service to customers in the existing utility service area. 2. The assumption of $8,071,634 in debt including $3,411,602 associated with its water system and $4,660,032 with the sewer system. Some debt is classified as general obligation and will need to remain on the Town's books with the Authority entering into an agreement to make payments on this debt. 3. A purchase price of $3 million (total) with the Authority paying the Town $1.5 million in FY24, $1 million in FY25 and $0.5 million in FY26. 4. The Town will keep existing utility fund balances minus unspent bond proceeds, grant funds described in Item 5 and revenues for telecommunication leases. Town Council Agenda Summary 2 5. The Town will transfer $5.7 million in local funds slated for water distribution improvements, primarily in residential areas of Roanoke County. Some of these funds will be used to strengthen the interconnection with the Carvins Cove distribution system. 6. As this is an acquisition, the Town will not have a seat on the Board of Directors; however, an agreement has been reached with Roanoke County to allow the Town to consult in the selection of one of the County's three appointees to the Board. 7. The existing Utility Service Agreement between the Town and Roanoke County, assumed in 2004 by the Authority with an expiration date of 2029, will be retired. The Authority’s Board at their meeting on April 21, 2022 adopted Resolution No. 445 approving said Agreement. Town staff recommends that the Transfer Agreement be executed to formalize said agreement between the parties with an effective date of July 1, 2022. The Transfer Agreement will be provided to Council prior to the meeting. Attachments Resolution Recommendations Motion to adopt Resolution 1 RESOLUTION NO. AT A SPECIAL CALLED MEETING OF THE VINTON TOWN COUNCIL, HELD ON TUESDAY, JUNE 7, 2022, AT 2:00 P.M., IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA 24179. WHEREAS, Vinton Town Council and Administration desire to provide the best rate and infrastructure stability, service, and water quality for current and future customers and realize the best way to do that is through a regional approach; and WHEREAS, the Western Virginia Water Authority (the "Authority"), a public service authority was formed in 2004 and exists in accordance with the provisions of Chapter 51 of Title 15 .2 of the Code of Virginia, 1950, as amended, the Virginia Water and Waste Authorities Act§§ 15.2-5100, et seq. (the "Act"); and WHEREAS, Vinton Town Council at their meeting on December 7, 2021 adopted Resolution No. 2468 certifying its intention to have formal discussions with the Authority regarding the Authority’s ownership and operation of the Town’s public water distribution and treatment system and the sanitary sewer collection system; and WHEREAS, the Executive Director of the Authority and Staff, the Town Manager and Staff along with their respective attorneys have negotiated a Transfer Agreement (the “Transfer Agreement”) of the Town’s water and sanitary sewer systems to the Authority, the form of which has been presented at this meeting; and WHEREAS, the Western Virginia Water Authority Board at their meeting on April 21, 2022 adopted Resolution No. 445 approving the Transfer Agreement; and WHEREAS, Town staff recommends that the Transfer Agreement be executed to formalize said agreement between the parties with an effective date of July 1, 2022. NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE TOWN OF VINTON, VIRGINIA, AS FOLLOWS: 1. The Transfer Agreement is hereby approved in a form substantially similar to the one presented to Council and approved by the Town Attorney; and 2. The Town Manager is hereby authorized, for and on behalf of the Town, to execute the Transfer Agreement and to take all such further action as may be necessary in connection with any other necessary documents in furtherance of the same. This Resolution was adopted by motion made by Council Member , seconded by Council Member , with the following votes recorded: 2 AYES: NAYS: APPROVED: Bradley E. Grose, Mayor ATTEST: ______ Susan N. Johnson, CMC, Town Clerk