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CL-2287 New Business   Item #: A.       
Meeting Date: 04/21/2020  
Subject:    Amendment to Pittsylvania County Service Authority Agreement
From: Jason Grey

COUNCIL ACTION
Business Meeting:     04/21/2020
SUMMARY
The Pittsylvania County Service Authority (PCSA) is moving forward with a large system expansion that will add residential customers, but will also provide a public water system to three County schools.  PCSA is considering purchasing more water from the City and to be able to provide a lower cost of supply to the Berry Hill Industrial Park.  The City proposes to sell water to PCSA for $1.92/100 cubic feet.  This rate was determined by our rate consultant as the City's cost to serve PCSA.  The City also proposes to purchase up to 62,500/gallons per day from PCSA for their audited contracted rate with the Henry County Service Authority plus $0.35/1,000 gallons.  The total average cost of water supply provided by PCSA from the Henry County Service Authority for the Berry Hill Industrial Park would be $1.45/1,000 gallons.  
BACKGROUND
The City of Danville has been providing water to the Pittsylvania County Service Authority (PCSA) since the 1970s.  Over the next two years, PCSA looks to expand their water system from Brosville to the Mount Hermon community.  They will need additional water capacity from the City to serve.  City staff is requesting that City Council authorize the City Manager to amend the current PCSA-City of Danville agreement to include the new terms for purchasing water for the Berry Hill Industrial Park and for the City selling water to PCSA for their system expansion.
RECOMMENDATION
Staff recommends that City Council authorize the City Manager to amend the current Pittsylvania County Service Authority (PCSA) agreement to include the City purchasing water from PCSA for the Berry Hill Industrial Park and selling water to PCSA for their upcoming system expansion.

Attachments
Resolution
PCSA expansion map


    

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