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Council OKs second reading to enlarge VPSA boundaries
11/10/2009 9:21 PM

By HALEY HUGHES
Staff writer

Second reading of a proposed ordinance to enlarge Valley Public Service Authority's boundaries to include Graniteville and Vaucluse passed with little comment from Aiken County Council or the public.

A hearing was held on the subject Tuesday during which the public was invited to share their opinion on the ordinance, but no one stood up to speak.

Enlarging the local utility's service area to include the water and sewer areas currently served by Avondale Mills is a step in the ongoing process of transferring ownership of the system to Valley Public Service Authority (VPSA) from Avondale.

The authority may provide services only within its service area; therefore, according to the ordinance, Council finds it is necessary that VPSA's service area boundaries be enlarged to facilitate its acquisition and operation of the system.

In September, VPSA entered into an agreement with Avondale to take over the system.

VPSA is in the middle of a 120-day due diligence period. An environmental report will be conducted, grants will be applied for from the Rural Development Authority and several other areas will be studied in this period.

"The due diligence period should finish in January," said VPSA attorney Eric Shytle. "The authority wants to make sure it protects its existing customers and see if it can take on the financial liability of the Avondale system."

If everything meets with VPSA's approval, it will sign the agreement which will then be taken to the Public Service Commission to be confirmed.

"In the event negotiations don't go through, what happens?" asked County Council member Scott Singer.

"We plan to put contingencies in place throughout the ordinance that if negotiations don't go through, the boundaries will stay in place," said County Administrator Clay Killian.

The water and sewer systems need expensive upgrades or refurbishment, according to engineers.

The upgrades will be achieved by a combination of loans, stimulus funds and grants from the Department of Agriculture.

As part of the deal, Aiken County will officially take control of the Avondale sewer system and be in line for $4 million in stimulus funds to help refurbish it.

VPSA is in line for $2 million in stimulus funds to refurbish the water system.

Council will hear the third and final reading of the proposed ordinance at its meeting on Tuesday.

In other business, newly elected Councilman Alexander "Sandy" Haskell was sworn in to represent County District 5.




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