Water grant amount uncertain

AIKEN --- Valley Public Service Authority will likely have to take over the Avondale Mills water system without being able to confirm the amount of a grant for the deal.

The authority's board of commissioners met Monday night to hear details on the progress of the takeover from the board's lawyer, Eric Shytle.

He confirmed that representatives from the U.S. Department of Agriculture's Rural Development have orally agreed to grant money to the project but said they would not be able to define "conditions" before the end of the month.

The authority plans to close on the purchase of the water system Jan. 30.

"We'll get some money from Rural Development, but there will not be anything in writing," Mr. Shytle said during the meeting. "We actually have a cheaper project, so I predict we're in pretty good shape."

He recommended that the board continue with its plans to acquire the water system without the confirmed amount of grants and loans.

Contractors are bidding less for the work on the water system, so the authority likely will need about $11 million in loans and grants rather than $13 million, as originally estimated, said Calvin Smith, authority general manager.

For many years Avondale subsidized the water system as part of its textile operations, but it raised rates in the summer, saying that with the mills closed it could not keep the low fees.

Mr. Shytle suggested that the authority keep those rates. Some of the 550 Graniteville and Vaucluse customers had complained that their water bills increased 700 percent when the rates changed.

"They're not great rates, but we'll have to do what we have to do until we know how much it costs to run the system," Mr. Shytle said.

Authority engineer Bill Nunn informed commissioners that the authority's bidding process complies with stimulus requirements, so the board voted unanimously to accept the $2 million granted by the South Carolina Water Quality Revolving Fund Authority.

The Aiken County Council likely will vote on signing an agreement with Avondale during its Jan. 19 meeting. The county has started work on the sewer system and will take ownership of the system temporarily. The county will receive $4 million in stimulus funds to repair the system.

"They are close to signing with Avondale, but they just want assurance that they won't have to run the sewer system," Mr. Shytle said.

The Valley Public Service Authority board of commissioners will meet in two weeks to receive a final update on the water system takeover.

Reach Stephanie Toone at (803) 648-1395, ext. 110, or stephanie.toone@augustachronicle.com.