Agenda 11/26/2002 - Laserfiche WebLink

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HENRY COUNTY PUBLIC SERVICE AUTHORITY AND CITY OF MARTINSVILLE SEWER INFRASTRUCTURE IMPROVEMENT PROJECT MEMORANDOM OF UNDERSTANDING NOVEMBER 1, 2002 On January 25, 2002, a MEMORANDUM OF UNDERSTANDING between the Henry County Public Service Authority and City of Martinsville was signed. Ail concepts and methodologies in that document remain intact, but there have since been changes in construction schedules and capacity needs. This memorandum will refine and, therefore, supersede earlier projections and calculations and, in addition, provide the mechanism for making available additional needed treatment capacity that was not earlier anticipated. PROJECT ACTION PLAN: 1. Divert all existing Henry County PSA wastewater flow to the City's plant by converting the Koehler (USR) and Lower Smith River (LSR) wastewater treatment facilities to pumping and retention facilities. A force main will be constructed from the LSR facility to the City's plant as a part of this conversion; 2. Construct a new pumping facility on the City plant site to convey industrial waste fi.om the PSA interceptor directly to the City's plant. 3. Renovate the CRy's wastewater treatment facility to accommodate the increased flow. PROJECT TIMETABLE: All conversions, renovations and constructions are to be completed before July, 2003~ PROJECT FINANCING: Federal Grant: Under Congress's FY2001 Special Appropriations Act, $1,935,700 was appropriated for the "Henry County/CRy of Martinsville water and sewer infrastructure improvements project". The grant plus the required local match will provide $3,519,455 towards the total project cost, which is estimated to be $6.0 million dollars. Local Match: The City of Martinsville, under the current Henry County PSA- Martinsville Sewer Contract, is entitled to a capacity buv-in fee of anproximatelv $3.5 million dollars as payment for accepting the estimated 2.6 M® additional wastewater that will be sent to the City's plant by converting the Koehler facility. To satisfy the federal local match requirement of 45%, the City will forego the PSA payment of $1,583,755 of the capacity buy4n fee that would otherwise be due and payable from the Henry County PSA.