- Last Updated on 08:24 AM 04/23/12
- BY Danielle Vaughn
Halifax County Service Authority board members adopted a bond resolution and approved the financing agreement and terms and conditions for the Virginia Resource Authority Spring Pool Loan at their monthly meeting held Thursday afternoon in the conference room of the Halifax County Service Authority Operation and Administration Offices.
The Virginia Resource Authority loan will help to finance the Leigh Street water treatment plant, Executive Director Willie Jones explained.
According to the bond resolution, the authority will borrow up to $1.4 million for this project for a term of 25 years.
Jones said the financing agreement sets the conditions for the bond and is a standard form for the Virginia Resource Authority.
The financing agreement states the authority will pledge the revenues from their customers for the payment of the debt, and the authority has to have enough money coming in to equal 115 percent of the bond debt service amount, Jones said.
The board also approved a water supply and wastewater treatment services agreement with South Boston Energy LLC. In this agreement the authority will provide water and sewer services to the South Boston Energy biomass power plant in order to cool the steam from their towers and for other additional uses, and South Boston Energy will pay the rates negotiated with the authority.
This agreement is a complicated one, Jones said because of all the different ways the authority interacts with South Boston Energy.
The design contract for the Maple Avenue water treatment solids diversion project was approved at Thursday afternoon’s meeting also.
Jones said the total construction cost for the project is $1,037,000, and engineering costs will total $155,000 including inspection work, survey work, geotechnical work and permit applications.
A two percent contingency for legal and administrative work will be paid totaling $21,000 and 10 percent contingency on construction equaling $94,000, Jones said.
According to Jones, the total cost of the project is $1,248,390.
The board approved a recommendation from the personnel committee for the authority to offer two health insurance plans from The Local Choice Program — the Key Advantage Expanded and the Key Advantage 250.
The authority will pay 90 percent of the Key Advantage 250 employee only premium, and the employee will pay the difference for the other plan or additional individuals who are covered.
Also Thursday afternoon, Jones updated board members on how the state mandated changes to the Virginia Retirement system will impact the budget, raising costs by a half of 1 percent.
Jones gave a brief update on the Maple Avenue Waste Water Treatment project and general project activity explaining they should begin extensive concrete pouring by first of this week.
The May meeting is scheduled to be held onsite, and board members will to have a chance to see the progress of the project for themselves.
In other business Thursday, Jones said they are continuing to work with SunTrust Bank on the direct drafting of accounts, and pilot testing should begin this month. The authority will include notices about this in the customers’ bills.
Jones said he still has work to do with the fixed assets and inventory on the software.
Following the meeting, the board went into close session to discuss personnel issues related to the hiring, firing and appointment of individuals.
No action was taken.