After months of back and forth, the Rapidan Service Authority (RSA) has filed suit against the Town of Gordonsville for alleged breach of contract.
In January, the council adopted a resolution terminating the town’s circa 1985 contract with the utility authority. Under the agreement, the town collected and billed for sewer on behalf of RSA. According to the resolution, the council felt it would be in the public’s 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 stated 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 gave notice that the agreement would be terminated as of March 30, but council members later voted to extend that deadline by 60 days, pushing the termination date to the end of May.
In March, the town reported a productive meeting with RSA with the two entities agreeing to work together to provide RSA information necessary to bill the town’s sewer customers as well as setting forth a monthly credit to the town for 15 years to offset costs associated with replacing water meters. In April, RSA officials held a public hearing and in May set the rates for Gordonsville customers. However, on Aug. 10, RSA officials issued a press release that the town had failed to approve or sign the necessary legal documents to allow the authority to bill customers. Town officials say the transition document goes beyond its scope, eliminating the town’s ability to pursue legal action against the authority in the future. The authority officials also claim the town owes nearly $99,000 in sewer charges associated with unbilled customer accounts from June 15 – July 15, denying the sewer agreement was cancelled.
Town manager Anthony Schienschang said the town has operated in good faith with RSA over the last 10 months, extending the transition timeline considerably at their request to allow the authority sufficient time to implement billing procedures.
Now the issues may be resolved in court. On Monday, RSA filed a 31-page complaint alleging the town is in breach of the sewer agreement and the town’s claims that it had expired and has been terminated are false. The suit claims the agreement is instead in full force and effect and should RSA bill Gordonsville sewer users, RSA would be the ones breaching the contract. In addition, before any billing can take place, RSA officials need the security deposits that were paid by tenants.
The suit seeks relief by way of the court declaring the sewer agreement remains in full force, finds that RSA is not in breach of said agreement and awards RSA its attorney fees. The authority also seeks a temporary injunction requiring the town to resume billing customers for sewer, comply with the sewer agreement or make payments to the court to hold in escrow. The injunction would remain in place until the court has resolved the alleged issues.
Meanwhile, Schienschang said the town remains committed to representing its residents’ interests by minimizing public utility costs and advocating on their behalf.
“We will continue to work with the Rapidan Service Authority for operational matters to ensure we meet our duty to our residents and customers,” he said.
In other news, RSA will soon have a new member and chair.
During last week’s meeting, chairman Mark Johnson announced his resignation effective Aug. 31. Johnson, a former Orange County Supervisor, has recently been active on social media advocating for data centers in the county, calling them “smart growth.” Several residents have asked that he be reprimanded for his comments. It’s unknown if the resignation is in response to those requests.
