The Rapidan Service Authority (RSA) has responded to the Gordonsville Town Council’s decision to terminate its 40-year-old sewer agreement with the authority.
Last month, town council members unanimously approved a resolution to terminate the town’s circa 1985 sewer agreement with RSA effective March 30. A letter signed by the five council members stated the town no longer wishes to act as the “middle-man” for RSA in processing and collecting the authority’s sewer bills. Under the agreement, RSA owns the sewer system and associated infrastructure with the town billing and collecting payments from in-town customers on the authority’s behalf. 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 decision to terminate the sewer agreement came 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.”
In a statement released Feb. 5, RSA General Manager Tim Clemons said the authority was created in 1969 to provide “essential water and sewer solutions for the region that includes Orange and Madison counties.” He said one of the first missions was to establish a drinking water supply for the Town of Gordonsville.
“When it faced infrastructure challenges in 1985, the town approached RSA about taking over the sewer system,” Clemons said. “In agreeing to take on this responsibility, RSA assumed the town’s debt and built a modern treatment plant.”
Clemons referenced the 1985 agreement which places the town as RSA’s customer. He said the town pays a wholesale rate for sewer service and the town has established individual accounts with town customers and bills them for sewer services.
While RSA disagrees that the town council can unilaterally terminate the town’s obligations under that agreement, Clemons said RSA is willing to assume the obligations “as shirking them would endanger the lawful provision of sewer services to the town’s residents and businesses.”
However, Clemons said doing so will take time. He said new accounts for town customers will have to be established with RSA and the identification and billing information has to be shared and access, easements and rights must be honored. He said the town has so far refused to share that required information, a statement town officials have disagreed with.
“The town’s resolution to stop billing for sewer services has major consequences as RSA must charge rates sufficient at all times to cover the cost of maintaining, repairing and operating its systems,” Clemons said.
He added that if RSA receives the necessary information from the town, proposed rates will be advertised with a public hearing scheduled to establish a “retail rate structure” for Gordonsville users. “That rate will apply to both in-town and out-of-town users and will reflect the true cost of sewer service, eliminating markups the town has been adding to its bills.”
According to the town council letter, the town has been losing money to process and collect RSA’s sewer bills which was a reason for the attempt to renegotiate the contract before terminating it.
In RSA’s statement, Clemons said the authority remains committed to professional operation and rates set according to industry standards and looks forward to a constructive dialogue with the town to finalize the details of the billing transfer.
The Gordonsville Town Council plans to have an information session on the decision to terminate the contract and next steps during the council’s March 2 meeting at 6 p.m. at town hall.
RSA Statement on the cancellation of the Gordonsville contract
