1 Joint Meeting
Appomattox Town Council & Appomattox County Board of Supervisors September 28, 2010
The Appomattox Town Council met jointly with the Appomattox County Board of Supervisors on Tuesday, September 28, 2010 at 6:00 p.m. at the Appomattox Municipal Building, 210 Linden Street, Appomattox, Virginia.
Town of Appomattox – Present: Paul D. Harvey, Mayor; Council Members: Joyce Bennett, Steve Conner, N. H. “Jimmy” Mayberry, Mary Lou Spiggle, C. Lewis McDearmon, Jr. and Timmy Garrett. Others: Stacey Wilkes, Town Treasurer and Roxanne W. Paulette, Clerk of Council.
County of Appomattox – Present: Board Members: Gary Tanner, Thomas Conrad, W. H. Craft, Samuel Carter, Jerry Small, Johnny G. Overstreet, County Attorney; Aileen T. Ferguson, County Administrator; Johnnie Roark, County Planner; and Vicky Phelps, Administrative Assistant.
Mayor Harvey called the Appomattox Town Council to order.
Chairman Tanner called the Appomattox County Board of Supervisors to order.
Supervisor Small delivered the invocation.
Mayor Harvey led the Pledge of Allegiance.
Mayor Harvey informed the Council that it has contracted with Aqua Law (Chris Pomeroy) to help craft an agreement between the Town and County.
The Council and Board heard from Mr. Earl Dickerson, Hurt & Proffitt, Inc. Hurt & Proffitt, Inc. has been working on the design of the Concord to Appomattox waterline and grant/loan submission.
Mr. Earl Dickerson: In April 2009, Hurt & Proffitt, Inc. was given a contract to proceed with design of the 460 waterline. The drawings were submitted to VDH. Comments were received in June/July of 2010. H&P is expecting final plans with approval by the end of October 2010. The plans have been reviewed by VDOT. It will not be placed in the median but it will be off the shoulder of the road. The Preliminary Engineering Report was prepared initially and sent to Rural Development. The VDH was approved the PER. Rural Development looked at the PER in 2009 but nothing happened because the Town was not on board. Now that the Town is a customer Rural Development will be provided with an up to date copy to review.
Rural Development has been involved since 2009 and money was available at that time.
The stimulus money has all been spent. The Rural Development funding option would likely be a grant/loan combination.
2 Joint Meeting
Appomattox Town Council & Appomattox County Board of Supervisors September 28, 2010
Rural Development The rates have dropped from 2.735% to 2.5% for 40 years. Back during the stimulus days we were being told 75% (Grant) and 25% (Loan). The federal government fiscal year begins October 1, 2010. USDA doesn’t know what their program will be at this time.
The County has been offered 4.27 million by the Virginia Department of Health in low interest loan – 2.5% interest rate, 20 years. The Board of Supervisors recently voted to accept $2.5 million of the $4.27 million. In my opinion (Earl) there is a possibility of Tobacco Commission to receive a grant.
Early in the process, the County met with CCUSA to discuss the rate of $2.27 per 1000 gallons. Once it was known that the Town would be a customer, Johnnie Roark and Earl Dickerson met with Mike Damron to discuss the rate methodology to reduce the costs being passed on to Appomattox County. Mike agreed to that approach. The rate for 250,000 gallons per day. If between the Town and County the rate would be $1.86 -- 200,000 gallons per day would be $1.97. As the volume decreases, the rate increases and vice versa.
Even at the rates we are projecting here, by numbers given by the Town Manager approximately a year ago, the cost of water at the well head per 1000 gallons there would be a potential savings of $20,000 – 30,000 per year.
On July 27, 2010, the CCUSA board approved the cost of treated water to Appomattox.
The contract is final but waiting to be executed.
The upcoming schedule:
• Expect plans (construction drawings) by the end of October 2010. • Railroad Crossing easement • The negotiation of 23 permanent and 15 temporary easements. The negotiation will be
•
complete by the second week of October 2010. If the County decides not to pursue Rural Development funding, bidding by mid-late November 2010. Likely receive bids after the 1st of 2011. The low bidder under contract by the end of January/February 2011.
• Under construction/complete by Spring 2012 or before.
Questions/Answers: Q: Mr. Conner asked if we can proceed without Rural Development funding? A: Mr. Roark stated that the County has the funds available but the board has not given the
okay to proceed.
Q: Mr. Conner asked if Rural Development had unfunded mandates? A: Mr. Dickerson stated that Rural Development requires the locality to charge
$4000/month. These people pay the same for 4000 gallons as they did for 5000 gallons per month. The requirement with Rural Development is the Median Household Income
3 Joint Meeting
Appomattox Town Council & Appomattox County Board of Supervisors September 28, 2010
(MHI) x 1.5% / 12 months equals the rate the locality would need to charge for debt service.
Q: Mr. Conner asked if this would be for the life of the loan? A: Mr. Dickerson – yes.
Q: Mayor Harvey asked if there was a reapplication process after 10/2010? A: Mr. Roark and Mr. Dickerson responded – No. The Preliminary Engineering Report
(PER) is the application Art Powers has had for a long time.
Q: Mr. Carter asked if anyone has looked into the Tobacco Commission funding? A: Mr. Roark stated that the County receives their yearly appropriation but there is another
pot of money possible matching money for the STAG grant.
A: Mrs. Ferguson spoke regarding the inquiries on the Tobacco Commission funding. We
have not ignored that avenue, but have not been encouraged.
Q: Mr. Conner asked if the Virginia Department of Health dictates rates? A: Mr. Dickerson responded that they want to see that you have the ability to make the loan
payments.
A: Mr. Roark said that to the Virginia Department of Health the Town is one customer to the
County and the Town has been given the pass through rate.
Q: Mr. Conner asked if there was anything preventing the bid from being awarded in
February 2011?
A: Mr. Roark responded that the County will handle the payback of any loans/grants, etc.
The rate with VDH is based on prevailing AA Market rate. The rate will be set at the closing.
Comment: Mr. Conner said we need to act quickly.
Q: Mr. Conner asked the board if they had approved for the County to proceed without Rural
Development funding.
A: Mr. Roark – that is correct.
Comment: Mr. Conner stated that if you wait on Rural Development you’ll lose the project
or it may cost more money.
Aileen Ferguson, County Administrator – We have all the money we need. We are looking for all the grant money we can. If we continue looking at grant money, we will reduce the money needed from the taxpayers.
Mr. Carter stated that we know the Tobacco Commission has money.
Aileen Ferguson, County Administrator – We are pursing the grant money from the Tobacco commission but there are criteria you must meet.
4 Joint Meeting
Appomattox Town Council & Appomattox County Board of Supervisors September 28, 2010
Mayor Harvey asked if anyone has contacted our delegate. Mr. Conner said the State Senator, too.
Aileen Ferguson said both of which are good options.
Mr. Dickerson - To qualify for Rural Development grant money = The formula is MHI x 1.5 / 12 = $32.00 – 33.00 per month per user.
Mr. Roark reiterated that the County has the money to proceed.
Mr. Conner – We promised the people cleaner and cheaper water – In these economic times we need to make this decision and move on. It isn’t going to get any cheaper.
Mr. Carter – Can we make any alterations to the current plan? Such as a spur to Route 613, the Community Park or the IDA park?
Mr. Conrad – We’ve been talking about the 460 waterline for years – Not “fingers” of the line. Let’s put the line down 460.
Mr. Craft – Why do you have to cross the Railroad tracks so many times?
Mr. Dickerson responded – for connections.
Mr. Dickerson stated that it’s a 12” line down 460 with 3/4” residential connections.
Mr. Conner asked again if the board says go – you’re ready?
Mr. Dickerson responded that we (H&P) have been proceeding to the bid process. We haven’t been authorized to advertise the bids.
Mr. Dickerson also stated that provided we follow all of Rural Development’s guidelines when the money is available we could possibly seek reimbursement.
Mr. Conner said I just wanted to make sure we weren’t waiting on money that may or may not come.
Aileen Ferguson, County Administrator told the board that they could take action tonight but it’s my understanding that the project is moving forward.
The Board of Supervisors decided to take action at their meeting on Monday, October 4, 2010.
Mayor Harvey thanked everyone for coming together to discuss the matter.
5 Joint Meeting
Appomattox Town Council & Appomattox County Board of Supervisors September 28, 2010
On a motion by Councilmember Mayberry, seconded by Councilmember Garrett, Council voted to adjourn at 6:50 p.m. All members present voting aye. Motion carried.
Roxanne W. Paulette Clerk of Council
Paul D. Harvey Mayor