Minutes 04/10/1984 - Laserfiche WebLink

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al0 TUESDAY APRIL 10, 1984 proposal, as further revised, follows: In its regular meeting on April 10, the City Council considered your letter of March 30 and your Board's proposal to undertake a diversion of City sewage from the Jones Creek Interceptor to the Authority's Upper Smith River Wastewater Plant. This request was respectfully denied because it provides no remedy for the City's pressing need for increased wastewater treatment capacity. The purpose of this letter is to formalize a counter-proposal, based on certain understandings reached at our negotiating meetings of February 23 and March 28, 1984. These understandings are as follows: 1. The diversion facilities, including the transmission line, will be designed and constructed by the Authority with a capacity of 3 MGD, estimated to cost $386,000. The City will pay one hundred percent of the initial cost of such facilities. 2. The City will purchase 1 MGD capacity in the Authority's Upper Smith River Wastewater Treatment Plant at a cost of $561,217 or 12.5 per cent (1 MGD of 8 MGD) of the local historical cost of the existing facility. 3. The Authority will design and construct facilities re- quired to expand the Authority's Upper Smith River Wastewater Treatment Plant from 4 MGD capacity to 8 MGD capacity when flow into said plant equals 90 percent of the existing plant capacity (4 MGD). The City will pay $142,263 or 12.5 per cent (1 MGD of 8 MGD) of the expansion cost. 4. The total cost to the City as described in items 1 and 2 above is estimated to be $947,217, subject to adjust- ments upon receipt of construction bids covering the diversion facility. 5. After the improvements set forth above become operational, the City shall have the right to divert City sewage from the Jones Creek interceptor to the Authority's Upper Smith River Plant in such quantity that the City deems appropri- ate, up to 1 MGD. The City will pay the Authority its pro rata share of the operation and maintenance costs related to the diversion facilities and treatment plant based upon a ratio of the quantity of City sewage diverted to the Authority's Upper Smith River Plant to the total sewage flow into said Plant. It is further understood that financing of the improvements in question will be generally in accordance with the current City/Authority agreement, titled "Sewerage Treatment Contract between the City of Martinsville and Henry County Public Service Authori ty", dated January, 1974, Se ct ion IX, Future Capi tal Improvements. However, there will have to be a subsequent agreement or