Board of Supervisors : 2.16.10

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BOARD OF SUPERVISORS
Tuesday, February 16, 2010

Present: Ms. Connie Brennan, Mr. Joe Dan Johnson, Mr. Tommy Bruguiere, Mr.
Allen Hale and
Mr. Tommy Harvey

VDOT REPORT: Mr. Mike McCormack reported that there is a balance of $174,705
remaining in the Rural Rustic Roads fund and presented three options for
using that money:

Option #1 – Pigeon Hill Road (Rt. 681) $87,900 with balance used to pave 0.6
miles of Cub Creek Road (Rt. 680) – total Cub Creek project is 2.5 miles
for a total $363,226.

Option #2 – Pave 1.0 miles of Berry Hill Road (Rt. 613) with balance of
$29,322 used to pave 0.3 miles of Pigeon Hill Road.

Option #3 – Fully fund 0.6 miles of Pigeon Hill Road for $87,900; fully fund
0.5 miles of S. 74,101 with balance of $12,704 to be applied to Cub Creek
Road.

Option #4 – Fund 1.2 miles of Cub Creek Road for $174,705.

Supervisors agreed to Option 3.

LOVINGSTON WATER/SEWER SYSTEM: Ms. Trish Becker, owner of the Basement
Bistro, and Ms. Jode Shaw, Chair of the Lovingston Opry, presented
information on their businesses and ongoing problems with water and sewer.
Ms. Becker noted that they purchased the old St. Mary’s Catholic Church on
Front Street and three other properties in part because of they were
attracted by Lovingston’s redevelopment plans. She noted an investment of
over $500,000 in personal capital and the formation and operation of two
businesses, employing over seven employees. Ms. Becker reported on the music
and entertainment programs of the Lovingston Opry, which opened in 2006, as
well as the many civic contributions that business has made. She reported on
the opening and operation of the Basement Bistro in 2008, noting the $50,000
investment to build the kitchen with the use of local contractors and the
boost to tourism and the local economy.

Ms. Becker then reviewed four water/sewage incidents:

– November 2006: assumed to be caused by internal pipes with damages
totaling $1,100
– February 2009: again assumed to be caused by internal pipes with damages
totaling $500
– January 20, 2010: advised by Nelson County Service Authority (NCSA) that
the problem was caused by an external blockage; advised by NCSA to hire a
licensed contractor as soon as possible; advised by NCSA that their
insurance would cover the damages; advised verbally by NCSA that the problem
was fixed and they could reopen on January 21st; damages limited to cleanup
labor costs and top layer floor replacement at approximately $4,500
– January 25, 2010: extensive damages of approximately $25,000 cleanup
plus loss of business; unable to reopen either business due to potential
health hazard.

Ms. Becker noted that after hiring a contractor and cleanup business, NCSA
has now stated that their insurance will not pay for the damages and she
asked the Supervisors to help with requiring accountability of NCSA. Ms.
Becker listed the questions remaining about the two major incidents. She
asked for the county’s help in finding out what caused the problems, what
was fixed and what remains to be fixed, on what authority did the NCSA
conclude it was safe for their business to reopen and is there still a
health hazard. Ms. Becker asked the county to help with access to documents
concerning Lovingston’s water/sewage infrastructure in that area and she
asked that the county consider an emergency loan or assistance to help them
deal with the costs of the local contractors, cleanup business, employees
who assisted in the cleanup and the $25,000 in damages until this issue can
be settled. Ms. Becker also asked the Supervisors to stop the expansion of
water and sewer lines until Lovingston’s crumbling infrastructure is
properly identified, quantified and a definitive repair/replacement plan is
in place.

Supervisors tabled discussion until Ms. Becker gives the same presentation
to NCSA and the Board meets with that group.

ROSELAND WATER LINE EXTENSION: The County has been in discussions with DEQ
who has offered approximately $1.7 million in DEQ and Federal stimulus funds
to extend the water line from the intersection of Rt. 151/Rt. 56 to Roseland
to address contamination at two underground storage sites at Ferguson’s
Store (3 contaminated wells) and Roseland Rescue Squad (5 contaminated
wells). The Nelson County Service Authority (NCSA) had indicated that the
extension was not possible due to water supply concerns and needed upgrades
to include a secondary water source and withdrawal from the Tye River as
well as a loop system to discharge into the Tye. The proposed new lines
would serve approximately 110-120 potential new customers and cost about
$9.3 million.

Mr. Carter reported that staff (County and NCSA) meetings had resulted in
NCSA staff indicating that they can proceed with the Roseland extension to
deal with the 8 contaminated wells without the other projects being part of
that extension. He noted that NCSA would review and approve any future
connections to the system (outside the 8 contaminated sites) to ensure
adequacy of potable water and sufficient wastewater treatment capacity. Mr.
Castillo (NCSA) said that NCSA will continue to pursue funding for the other
projects and improvements without a commitment from the Supervisors to fund
such projects.

Mr. Carter presented a Draper Aden analysis of the projects originally
proposed by NCSA and County staff’s preliminary estimates on this project.
Because of the length of the extension with the few number of customers at
the end of the line, staff estimates an annual expense to flush the line of
$58,964 plus $114,379 additional outlays to NCSA (expenses of $224,379 for
the current Piney River 3 system minus the $110,000 projected revenues in
FY11) which includes the debt service but excluding any amount for
additional O&M expenses (solely for the Roseland water line extension). Mr.
Carter noted that the annual expenses to the county for Piney River 3 and
the Roseland water line extension could easily equal or exceed $200,000 per
year. He reported that the County currently allocates $327,093 per year to
NCSA for capital costs (debt service) and fire protection fees.

Mr. Hale, noting the $1,687,000 available from DEQ, asked how much
additional money would be needed from the County to complete the extension.
Mr. Harvey said $213,000, based on construction estimates. Mr. Hale said
that, while NCSA and the County are separate entities, if NCSA has a
problem, we all have a problem. Mr. Johnson said that NCSA is going to be
forced to make improvements to the intake and wastewater systems. Ms.
Brennan said that she did not understand why the original proposal had all
of these requirements attached to it and now the water line extension can be
done without those requirements. Mr. Castillo said that NCSA is trying to
look ahead at future requirements and tie projects together to obtain
funding. Ms. Brennan said that this is the worst possible timing to be
offered stimulus funds when the County’s economy is so depressed.

After further discussion, Supervisors directed staff to work with NCSA staff
to tighten up the estimates without including any costs to operate any
existing systems. Mr. Hale agreed to work with the two Boards’ staff to work
up the numbers in an understandable format for review at the February 25th
meeting.

COUNTY ADMINISTRATOR’S REPORT: Mr. Carter reported on the following:

– Blue Ridge Medical Center/CDBG Project: a public hearing is scheduled
for February 25th to receive input on the expansion project and to consider
a resolution for submittal of a grant request to VA-DHCD.
– 2012 General Reassessment of Real Estate: Statements of Qualifications
were received from four firms by January 29th. Interviews will be scheduled.
– Flood Plain Ordinance: The County’s flood plain ordinance (within the
Zoning Ordinance) must be updated to conform to state and federal
requirements with approval by June 18, 2010. Staff is working on developing
the update and proposing a joint public hearing with the Planning Commission
in March, 2010 to meet the June 18th deadline.
– Staff is working on proposals to present to the Supervisors to make the
provisions for mandatory water and sewer connections in the County
Ordinance, Subdivision Ordinance and NCSA Rules and Regulations conform. At
present, the requirements are vastly different.
– Staff will introduce a budget document at the February 25th meeting.

APPOINTMENTS:

– Keep Nelson Beautiful: Supervisors unanimously reappointed Roger Nelson.
– Jefferson Area Disabilities Board: Supervisors unanimously appointed Dr.
Kathryn Cameron.

DIRECTIVES:

Supervisors directed staff to schedule a joint Board of Supervisors/School
Board meeting for 6:00pm on Thursday, February 25th in the Board of
Supervisors’ meeting room to review the School Board’s preliminary budget
plans.

CONDITIONAL USE PERMIT/SHANNON FARM ASSOCIATION: The applicants applied for
a permit to build one non-electric 16×16 cabin with alternative plumbing on
property at 274 Shannon Farm Lane in Afton. The Planning Commission
recommended approval of the permit at their January 27th meeting. With no
public comment, Supervisors voted 5-0 to approve the permit.

Meeting continued until Thursday, February 25th at 6:00pm.

Copyright 2000-2010 by Rural Nelson, Inc. All rights reserved. Reports may
be reprinted or excerpted with attribution.

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