BOARD OF SUPERVISORS

Thursday, January 30, 2003

5:00pm

All Supervisors present.

Supervisors went into closed session to discuss a legal matter with counsel. No action taken following the meeting.

JOINT BOARD OF SUPERVISORS/SERVICE AUTHORITY

6:00pm

All Supervisors present. Mr. Castillo, Mr. Gilliam, Mr. Ott, Mr. Hight, Mr. Sperry, Mr. Sherwood present for the Service Authority.

Mr. Castillo presented information on refinancing the 1993 bonds to take advantage of any real savings. Preliminary estimates of savings are $80,000/year. Mr. Castillo reviewed the proposals received and presented a tentative timetable for the refinancing. Noting the savings, he then presented the Service Authorities identified priority projects. He said that the savings realized from the refinancing would allow the Authority to fund necessary projects without negatively affecting existing service customers or having to ask the county for additional funding. The projects as identified were:

1. Water Storage Tank at Devil’s Knob at Wintergreen ($400,000) – called for in the Water Model performed last year and resulting from a fire incident this past winter. The plan is for a new 500,000-gallon tank in addition to the existing 250,000-gallon tank.

2. Black Creek Water Impoundment ($350,000) – Mr. Castillo’s report noted that the impoundment is crucial to any further development of the Lovingston system.

3. Nelson County Regional Water Plant ($600,000)

4. Office/Maintenance Center for Service Authority ($250,000) – The Authority is currently housed in the basement of the Health Department building.

Total cost of identified projects: $1,650,000

Mr. Castillo said that he understood the Supervisor’s priority to be the Piney River Phase III project and that an application had been filed for Rural Development funding for that project. Noting that the county’s application is in process, he said that he would now feel comfortable applying for funding for the Authority’s identified projects without worrying about competing with the county for funding.

Mr. Bruguiere said that he agreed with the Authority’s plan to refinance and with the list of projects identified as priorities. He said that the county’s priority is Piney River Phase III, noting that it would be expensive but necessary. Ms. Brennan said that the Nellysford area does have big sewer problems and said that something would have to be done in that area. She noted that the Nellysford area is an identified growth area. Mr. Bruguiere said that it would not be a growth area until the problems were fixed. Mr. Harris said that he was glad to see the long-discussed impoundment on the priority list. Mr. Wood asked if any of the realized savings from the refinancing would be used to lower the amount of subsidy the county is paying the Authority. Mr. Castillo said that final numbers would not be available until the refinancing was in place and noted that the Authority does plan to apply for grant funding that could offset some of the expenses for the projects.

Mr. Sherwood asked if, in Virginia, localities could mandate that the developer pay for infrastructure to serve their development. Mr. Carter said that the county does not have cash proffers. Mr. Wood said that it would be a good long-term solution to keep the costs of growth from falling out onto all county residents.

Meeting adjourned.