Tuesday, February 9, 2010

Approval to take over Avondale water system expected Monday

Friday, Sept. 18, 2009 1:44 PM
Last updated 2:19 PM

Officials announced today that an agreement to switch over the Avondale Mills water system to the Valley Public Service Authority will likely be approved at a Monday public meeting.

“I feel sure they’ll probably sign that agreement Monday night,” said Calvin Smith, the general manager for the VPSA.

The meeting is set for 6 p.m. Monday at the VPSA board office at 435 Pine St., Gloverville. Mr. Smith said the authority’s board would vote to allow its chairman to sign the agreement, in which Avondale would give the VPSA the system along with about $1 million.

“It’s actually going to start the time clock on the 120 due diligence days,” Mr. Smith said, adding that the agreement would allow the VPSA to back out at any time during 120 days “if anything comes up we’re not aware of.”

He said checks of the system would occur in that time and that if all goes well the official switch-over would occur by January.

In the meantime, officials expect a legal battle over recently approved higher water and sewer rates to continue. The Avondale Mills water system has come under scrutiny amid a water and sewer rate increase earlier this year for about 550 Graniteville and Vaucluse residents. The new rates, which were requested by Avondale and approved by the South Carolina Public Service Commission, became effective in July, when some residents received bills hundreds of dollars higher. Since then, the higher rates have spawned a court challenge by some area legislators, and Avondale has filed an appeal with the state supreme court arguing against a recent court injunction halting the new rates. The temporary injunction was granted after a circuit court judge ruled proper notice of the new rates hadn’t been given to customers after their approval.

Mr. Smith said that even when the VPSA takes over the system, it will have to adopt Avondale’s higher rates for at least a year as they will temporarily have to purchase water from another authority, Breezy Hill, and address water loss issues with Avondale’s deteriorating system. After that, Mr. Smith said reduced rates could follow.

The transfer to the VPSA also will result in repairs to the decades old Avondale system. Mr. Smith said his authority hopes to use $2 million in stimulus funds, $6 million in grants, the $1 million from Avondale and to borrow $3 million from USDA Rural Development to overhaul the system.

Comments

thankgodforaugusta

why would anyone want a broken down old system with a bunch of customers who think they shouldn't have to pay for the water good luck vpsa your going to need it

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