Agenda 11/26/2002 - Laserfiche WebLink

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PSA Obligation: (1) To complete the 2.6 MGD capacity purchase, the remaining cost to the PSA is $1,959,433. The City agrees to defer this payment for five years in lieu of interest payments at 2% of the principal on an annual basis, to be paid in twelve equal payments of $3,265.72 per month. Beginning in year six, a repayment schedule of the principal and 2% interest for up to 10 years will be established, if the capacity is still needed. (2) To allow closing of the LSR plant, an additional 1.6 MGD capacity, valued at $2,180,176, must be reserved for the PSA in the City's plant. Since the City does not wish to permanently relinquish this additional capacity, the City will permit use of 1.6 MGD capacity so long as not needed by the City, as allowed in Section IXH. of the Henry County PSA- Martinsville Sewer Contract, upon payment of interest calculated at 3.95% on an annual basis, to be paid in twelve equal payments of $7,176.41 per month. FUTURE CAPACITY: The LSR plant is to be taken out of service, but is to be maintained and remain operable. Whenever flow or quality stresses the City plant's ability to process the waste or meet regulatory requirements, or whenever, at the City's discretion, additional capacity is needed, the PSA agrees to restart the LSR plant within ninety days of receiving written notification from the City requesting the PSA to do so. By affixing their signatures hereto, the General Manager of the Henry County Public Service Authority and the Martinsville City Manager acknowledge that this MEMORANDUM OF UNDERSTANDING accurately sets forth the project elements that were agreed to in principal at their October 29, 2002 meeting. Both parties also acknowledge that their respective governing bodies must give final approval to this plan before it can bind either party. Henry County Public Service Authority arl B Reynolds, Jr, City Manager City of Martinsville