The Gordonsville Town Council has approved a resolution terminating the town’s 40-year-old sewer agreement with the Rapidan Service Authority (RSA).
According to the resolution which was approved unanimously by the council during its meeting Wednesday, the town entered into an agreement with RSA June 6, 1985 which called for the town to convey its sanitary sewer system to the authority which was done Aug. 22, 1985. The agreement also includes Liberty Fabrics which no longer operates in town. Currently, according to the agreement, the authority determines the rates to be charged to the town and the town collects payment from the authority’s in-town customers. According to the resolution, it would be in the public best interest to deal with only one point of contact for sewer service and billing questions rather than dealing with RSA for service questions and concerns and the town for billing questions and concerns. The resolution states that in the interest of public transparency, the authority as the sewer service provider should deal directly with the public on its rate structure to provide clarity and transparency of its costs, rates, charges and fees.
The resolution gives notice that the agreement will be terminated as of March 30. The last billing cycle that the town will bill RSA’s in-town sewer customers on the authority’s behalf will be meter readings for March 15.
A letter signed by the five council members confirms the termination and states the town no longer wishes to act as the “middle-man” for RSA in processing and collecting the authority’s sewer bills. An investigation into the impact of handling billing for RSA found at the town’s current sewer rates and under RSA’s calculation method, the town was losing money to process and collect the bills. The council members said by eliminating the town’s involvement in sewer billing, customers will need to reach out to RSA directly with questions and concerns which will increase accountability and transparency, as well as reduce confusion and staff time when residents call town hall about sewer issues including backups, leaks and offensive odors.
“The Gordonsville Town Council believes that it is in the best interest of the town and RSA’s sewer customers for RSA to handle its own sewer billing directly,” councilors wrote.
The letter states that because of RSA’s refusal to renegotiate the decades old contract and in order to avoid raising the town’s sewer rates to cover the losses, council made the decision to terminate the existing sewer agreement.
The council said it hopes RSA will continue to provide uninterrupted service to its customers in Gordonsville and the surrounding area and that the rate will remain at or below $8.55 per 1,000 gallons for its customers in Gordonsville which is the rate RSA has charged the town.
The town will continue to handle water billing as the town owns the water infrastructure.
The decision to terminate the sewer agreement comes approximately one month after town council members voted unanimously to “authorize the town’s litigation attorney to negotiate or litigate regarding water and sewer rates.”
Link to the Town of Gordonsville resolution terminating the sewer contract
Letter from the Gordonsville Town Council regarding the contract cancellation
