GLOVERVILLE --- Valley Public Service Authority's board of commissioners approved a takeover of Avondale Mills' water system Monday, but the commissioners say they still have 120 days to decide whether they will keep it.
Eight commissioners voted yes on the resolution to acquire the rundown water system, with Commissioner Keith Smith abstaining.
If the water authority isn't able to collect the $12 million to $15 million it will take to maintain and rehab the system within the next two months, the authority can cancel the agreement, board attorney Eric Shytle said. The commissioners will not sign the agreement with Avondale before reviewing the document in the next couple of days.
"It's really just a technicality," Mr. Shytle said. "The big deal is we're ready to take over the system."
Once the agreement is signed, the authority will begin managing the water system and await signed confirmation at the state and federal levels that will allow it to charge different rates for the 550 Vaucluse and Graniteville customers than it charges its current 3,000 customers in Gloverville and Warrenville. The official switch will not occur until January.
The rate difference is needed because of the debt the authority will acquire from taking on the water system, which before this summer had not had a rate increase since 1981, said Valley General Manager Calvin Smith.
Avondale Mills will grant the water authority $1 million after signing the agreement. Imposing a base rate of no less than $30 per month will provide the funds to pay back a three-year, $3 million loan. USDA Rural Development will give the authority another $3 million, and it will get $2 million in stimulus funds. That leaves a $6 million shortfall, Mr. Smith said.
"If we're not able to get grant monies to help with the rest of it, we'll have to cancel the agreement," Mr. Smith said.
Board Chairman Otis Gibson said he hopes that industry will grow in the small area, adding customers and revenue.
"It's not over yet, but we're going on the right road," Mr. Gibson said. "This will be a great day for Graniteville. They have low water pressure and very little fire protection, so we can help that."
Acquiring the water system will not affect rates for Gloverville and Warrenville customers, Mr. Gibson said.
Keith Smith said several constituents asked him to vote against acquiring the system. He said he fears the new customers will sue the authority for charging the higher rates.
"If someone tries to sue and they win, that puts us in the hole and will mean higher rates for everyone," he said.
Reach Stephanie Toone at (803) 648-1395 ext. 110, or stephanie.toone@augustachronicle.com.
WHAT'S NEXT
The Public Service Commission will hold a public hearing Sept. 30 in Graniteville before it reconsiders the new water and sewer bills. On Oct. 6, the PSC will reconsider the new rates.
TIMELINE
DEC. 23: Avondale applies with the South Carolina Public Service Commission for approval of new rates.
FEB. 2: Avondale publishes notice of proposed rates in the Aiken Standard and mails customers a similar notice.
MARCH 23: A public hearing in Graniteville is postponed.
MAY: A public hearing is held at Byrd Elementary School, but turnout is light.
JUNE 2: A public hearing is held before the Public Service Commission in Columbia.
JUNE 18: The PSC agrees to Avondale's rate change.
JULY 31: Avondale water customers receive their higher bills, prompting complaints to the PSC and legislators.
AUG. 3: The area legislative delegation, noting that the PSC didn't publish approval of the rates within 10 days, as required by state law, asks the commission to address a lack of notice with the new rates.
AUG. 5: The PSC suspends the new rates.
AUG. 6: 200 angry residents of Graniteville and Vaucluse turn out for a community meeting.
AUG. 12: The PSC lifts the suspension, not addressing the lack of notice.
AUG. 13: Legislators receive a temporary restraining order on the rates, granted by Judge Michael Baxley pending further review by Judge Jack Early.
AUG. 19: A hearing is held with Judge Early as to whether a temporary injunction should be issued on the rates.
AUG. 24: Judge Early issues the temporary injunction. A hearing to consider a permanent injunction is pending.
AUG. 28: Avondale files an appeal with the state Supreme Court over the temporary injunction
MONDAY: Valley Public Service Authority's board of commissioners vote to take over Avondale Mills' water system.
Sources: Aug. 24 court order; state Rep. Roland Smith
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