HomeMy WebLinkAboutAUTHORIZING AGREEMENT TO A MEMORANDUM OF UNDERSTANDING REGARDING FUTURE OPERATIONS OF THE SAVANNAH BLUFF LOCK AND DAM AUTHORIZING AGREEMENT TO
A MEMORANDUM OF UNDERSTANDING
REGARDING FUTURE OPERATIONS
OF THE SAVANNAH BLUFF LOCK AND DAM
WHEREAS, the Savannah Bluff Lock and Dam was constructed by the US
Army Corps of Engineers on the Savannah River in 1937 to promote navigation on the
Savannah River;and
WHEREAS,the Corps has determined that the lock and dam no longer serves
a federal purpose and is considering the decommissioning and removal of the facility;and
WHEREAS, due to the importance of the Lock and Dam in maintaining pool
elevation in the Savannah River in the North Augusta portion of the river for public drinking
water supply, wastewater discharge, industrial water supply and recreational purposes, the
City has a vested interest in having the current facility maintained in a safe operational status;
and
WHEREAS, the Corps of Engineers has indicated a willingness to consider
transfer of the facility to local sponsors who would be responsible for future maintenance and
operation consistent with the Corps'requirements for water flow and quality standards;and
WHEREAS, North Augusta and Aiken County have proposed to act as local
sponsors for the purpose of negotiating with the Corps of Engineers and have joined with
other stakeholders in developing a Memorandum of Understanding regarding the facility and
future operations thereof;and
WHEREAS,It is the belief of City Council that the Savannah Bluff Lock and
Dam should be maintained,thus protecting the pool level along the North Augusta shore and
should join with the other stakeholders in execution of the Memorandum of Understanding
which is attached hereto and made a permanent part hereof.
NOW THEREFORE BE IT RESOLVED by the Mayor and City Council for
the City of North Augusta in meeting duly assembled and by the authority thereof, that the
City Administrator is hereby authorized to sign on behalf of the City of North Augusta the
attached Memorandum of Understanding regarding the future operations and maintenance of
the Savannah Bluff Lock and Dam.
BE IT FURTHER RESOLVED, that with the adoption of this resolution,
Resolution#2000-23 adopted September 18,2000,which approved a previous version of the
Memorandum of Understanding,is nullified.
SAVANNAH BLUFF LOCK AND DAM
MEMORANDUM OF UNDERSTANDING
GOALS:
Through the cooperative efforts of local governments and industries from both the
South Carolina and Georgia sides of the Savannah River, the Savannah Bluff Lock
and Dam,will be operated for the purpose of maintaining the Augusta Pool. In doing
so,the economic well being of the entire community will be supported. The operation
of the facility will be handled efficiently,effectively and without political influence.
ASSUMPTIONS:
1. Authorization: The Secretary of the Army has been authorized by congressional
legislation to repair and rehabilitate the Savannah Bluff Lock and Dam and to build a
fish passage device at federal expense,and upon completion,to convey the facility to
Aiken County and the City of North Augusta,South Carolina.
2. Appropriations: Necessary funds will be made available through congressional
action for the full repair and rehabilitation of the Savannah Bluff Lock and Dam and
the construction of an approved fish passage device. The current estimate for the Lock
and Dam repair and rehabilitation,as identified in the Final 216 Disposition Report for
the Savannah Bluff Lock and Dam,is$6,814,000. The exact method for fish passage
and the associated costs have not been determined. Should the costs exceed estimates,
the full financial responsibility will be that of the Federal government.
3. Escrow Account: The Final 216 Disposition Report identifies $320,000 for
anticipated repairs in years 10-20 and$2,226,000 in years 20-30. The local sponsors
are asking that an escrow account be established and funded by the federal
government at the time the facility is transferred to the local sponsors for the purpose
of covering this already identified $2,546,000 (net present value of $576,953) in
capital costs. This escrow account will be the basis upon which a depreciation fund
will be established for the Savannah Bluff Lock and Dam facility.
H:\USFRS\CMARTiN Utilitia\SAVANJAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601.doc Page 1 of 20
permitting agencies and the Army Corps of Engineers advise, and if possible,
require that any new entity requesting a withdrawal permit from the Augusta Pool
participate in the costs of operating the Savannah Bluff Lock and Darn in
accordance with this agreement.
5. Operational Expenses:
A. All operations,maintenance,and capital costs associated with the Savannah Bluff
Lock and Darn will be shared on a percentage basis. For the initial stakeholders
the percentage of participation will be:
Aiken County/North Augusta,South Carolina 30%
Augusta,Georgia 30%
DSM Chemical North America,Inc. 10%
Kimberly-Clark Corporation 10%
PCS Nitrogen 10%
General Chemical Corporation 10%
B. The participating industrial/commercial stakeholders shall not be charged
additionally through special taxes or fees for any costs associated with maintaining
the Savannah Bluff Lock and Dam. If a special district is set up for the purpose of
generating revenues for the expenses associated with the facility,the participating
industrial/commercial stakeholders shall be credited for any amount paid by said
stakeholder under this agreement.
6. Finances:
A. A separate enterprise fund will be established for the purpose of financial
accounting in association with maintaining the Savannah Bluff Lock and Darn.
B. The Savannah Bluff Lock and Dam Enterprise Fund will be reflected annually in
the Aiken County and/or North Augusta audits.
C. A separate audit of the Savannah Bluff Lock and Dam Enterprise Fund would be
available at the cost of the requesting party.
D. All revenues from whatever source shall be credited to the project in the following
order:
1. Annual operations
2. Depreciation/Contingency
3. Local sponsors
E. All direct costs incurred by the contractor(SCE&G) or the local sponsors (Aiken
County and North Augusta)will be charged to the Savannah Bluff Lock and Dam
Enterprise Fund.
HAUSERSICMARTIN\Unliup\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601,10c Page 3 of 20
representative to the Stakeholder Advisory panel. Each of the 8 initial stakeholders
will have one voice. Any new stakeholder will automatically have a representative.
11.Concurrence: We,the undersigned stakeholders concur with the principles contained
within this Memorandum of Understanding. In so doing we recognize that this
document is not a contract.
Aiken County,SC Government Permanent Date
Signature Signature Sheet 1 of 8
Title
North Augusta,SC Government Permanent Date
Signature Signature Sheet 2 of 8
Title
Augusta,GA Government Permanent Date
Signature Signature Sheet 3 of 8
Title
DSM Chemical North America,Inc. Industrial Date
Signature Signature Sheet 4 of 8
Title
General Chemical Corporation Industrial Date
Signature Signature Sheet 5 of 8
Title
Note: This signature sheet is number 1 of 8 originals.
H:\USERSCMARTIN\Udlities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601.doc Page 5 of 20
!U.Stakeholders Review Committee: Each stakeholder will be asked to designate a
representative to the Stakeholder Advisory panel. Each of the 8 initial stakeholders
will have one voice. Any new stakeholder will automatically have a representative.
11.Concurrence: We,the undersigned stakeholders concur with the principles contained
within this Memorandum of Understanding. In so doing we recognize that this
document is not a contract.
Aiken Cou ,SC Government Permanent Date
lr c z qpi o f
Signature . nature Sheet 1 of 8
Ceun' ncd C airman
Title
North Augusta,SC Government Permanent Date
Signature Signature Sheet 2 of 8
Title
Augusta,GA Government Permanent Date
Signature Signature Sheet 3 of 8
Title
DSM Chemical North America,Inc. Industrial Date
Signature Signature Sheet 4 of 8
Title
General Chemical Corporation Industrial Date
Signature Signature Sheet 5 of 8
Title
Note: This signature sheet is number 1 of 8 originals.
H:\USERS\CMARTIN\IDilities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601.d« Page 5 of 20
11.Concurrence: We,the undersigned stakeholders concur with the prmciptes contameu
within this Memorandum of Understanding. In so doing we recognize that this
document is not a contract.
Aiken County,SC Government Permanent Date
Signature Signature Sheet I of 8
Title
North Augusta,SC Government Permanent Date
Signature Signature Sheet 2 of 8
Title
Augusta, Government Permanent Date
• 1444— OVIV
SignaS , t nature Sheet 3 of 8
(471
Title
DSM Chemical North America,Inc. Industrial Date
Signature Signature Sheet 4 of 8
Title
General Chemical Corporation Industrial Date
Signature Signature Sheet 5 of 8
Title
Note: This signature sheet is number 7 of 8 originals.
H:\USERS\CMARTINIUtilities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601.doc Page 17 of 20
PCS N'ro n C /iaI CI of
Sign e ,dgna rri peit of 8
Title JC/
Kimberly-Clark Corporation Industrial Date
Signature Signature Sheet 7 of 8
Title
SCE&G Urquhart Station Contractor Date
Signature Signature Sheet 8 of 8
Title
Note: This signature sheet is number 8 of 8 originals.
H:\USERS\CMARTIN\Utilities\.SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-08060144 Page 20 of 20
PCS Nitrogen Industrial Date
Signature Signature Sheet 6 of 8
Title
Kimberly-Clark Corporation Industrial Date
Signature Signature Sheet 7 of 8
Title
SCE&G Urquhart Station Contractor Date
20 il�/,
Signature Signature Sheet 8 of 8
ManLq?r, rira&L t cSTc frCr7
Title JJ
Note: This signature sheet is number 2 of 8 originals.
H:(USERS\CMARTINIUtilities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-080601.da Page 8 of 20
I Pv G U S �� ✓
AUGUSTA-RICHMOND COUNTY COMMISSION
.711:A151,1
JAMES B. WALL LEE BEARD
1736 ULNIER BRIDGES
GFO R GI CITY ATTORNEY JERRY BRIGHAM
HENRY H.BRIGHASI
P.O. Box 2 125 ANDY CHEEK
RICHARD L.COLCLOVCH
BOB YOUNG 454 GREENE STREET WILLIAM B.KUHLKE,JR.
Mayor AUGUSTA,GA 30903 STEPHEN E.SHEPARD
MARION WILLIAMS
Bus.(706)821-2488
WM. "WILLIE" H. MAYS, III FAX No: (706)722-5984 WALTER S.HORNSBY,III
Mayor Pro Tem E-MAIL: 1WALL@CO.RICHMOND.GA.US
Interim Administrator
April 5, 2001
Mayor Pro Tern Willie Mays
Commissioner Lee Beard
Commissioner Ulmer Bridges
Commissioner Jerry Brigham
Commissioner Henry Brigham
Commissioner Andy Cheek
Commissioner Richard Colclough
Commissioner Bill Kuhike
Commissioner Steve Shepard
Commissioner Marion Williams
Dear Commissioners:
I am enclosing a copy of an Memorandum of Understanding which the Mayor
asked that I distribute. Hopefully, this can be discussed at the next Commission meeting in two
{ weeks. If any of you have any thoughts or questions which you would like to discuss in advance
of that meeting, please let me know.
With best personal regards, I am
Yours very truly,
gei;Tg, W20James B. Wall)a#1
JB W/sj p
Enclosure
Cc: Mayor Bob Young
Mr. Walter Hornsby
Mrs. Lena Bonner
4((.)East Buena vista AN)
North Augusta.SC
North �.. 39841_#t()8
Augusta Post Office Box(54-000
North Augusta.SC
2986 1-6400
South Carolina's Riuelfront
City of North Augw
March 13, 2001
The Honorable Bob Young
Mayor, City of Augusta
530 Greene Street
Augusta, Georgia 30911
Dear Mayor Young:
Please find enclosed a revised Memorandum. of Understanding relating to the Savannah Bluff
Lock and Dam. We feel that revisions contained in the MOU properly address concerns raised by
Augusta-Richmond County in Randy Oliver's Letter of October 27, 2000, and a recent phone
conversation with you.
Specifically, the revisions identify the governmental entities as permanent stakeholders and
outline provisions whereby Augusta-Richmond County would have the use of the 50 +/- acre park on the
Georgia side of the facility. Please review the document and call me with any questions regarding same.
Also, please let me know at your earliest convenience, if the revised document satisfies the concerns
previously raised.
The MOU as revised has not been formally approved by any of the other governments or
industries listed as stakeholders. However, all had approved the previous version. We wish to satisfy
your concerns prior to circulating the new MOU to each of them for approval.
We are all aware of the long tedious journey this project will take prior to its being turned over to
the local sponsors, Aiken County/North Augusta. Once the MOU among the stakeholders is in place, we
will then turn our attention to the MOA between Aiken County/North Augusta and the Corps of
Engineers. The Corps has already begun preparing this document.
Thank you for your understanding in this matter. If I can provide additional information, please
let me know.
Sine
Charles B. Martin
City Administrator
REE. D
CBM:dby C
cc: Mayor and Council MQR 1 4 2001
Ms. Joan Wilson, Acting Aiken County Administrator
Mr. David Jerome, Manager, Urquhart Station, Beech Island May'U+ .
Attachments
Augusta—Ric nil u — �.:�1i�;✓
H:\USERS\Civ1ARTIN\Uti lities\SavannahBluffLockandDam-IMOD-Mayoryoung31201.doc
administration Economic&community engineering&Public Works Building Standards Finance Parks.Recreation Public Safety Public Utilltie,
)dice 803.441.4202 Development Olficc 80:3.4414.223 Office 803.441.4227 01fice ri.441.4215 &Leisure Services Office 803.441.4251 Office 803.44
Fax 803.441.4203 Olflce 803.441.4221 Fax 503.441.4232 Fax 803.441.4232 Fax 803.4+1.4203 Orrice 803.441.4315) Fax 803.441.4252 Fax 803.441
Fax 803.441..1232 Pax 803.441.4319
www.northau:usta.net
March 5, 2001
SAVANNAH BLUFF LOCK AND DAM
MEMORANDUM OF UNDERSTANDING
GOALS:
Thh the cooperative efforts of local governments and industries from both the South
Carolinarougand Georgia sides of the Savannah River, the Savannah Bluff Lock and Dam,
will be operated for the purpose of maintaining the Augusta Pool. In doing so, the
economic well being of the entire community will be supported. The operation of the
facility will be handled efficiently, effectively and without political influence.
ASSUMPTIONS:
1. Authorization: The Secretary of the Army has been authorized by congressional
legislation to repair and rehabilitate the Savannah Bluff Lock and Dam at federal
expense, and upon completion, to convey the facility to Aiken County and the City of
North Augusta, South Carolina.
2. Appropriations: Necessary funds will be made available through congressional action
for the full repair and rehabilitation of the Savannah Bluff Lock and Dam. Current
estimates for this repair and rehabilitation, as identified in the Draft 216 Disposition
Report for the Savannah Bluff Lock and Dam, are $6,814,000. However, should the
costs exceed this estimate, the full financial responsibility will be that of the Federal
government.
3. Escrow Account: The Draft 216 Disposition Report identifies $320,000 for anticipated
repairs in years 10-20 and $2,226,000 in years 20-30. The local sponsors are asking that
an escrow account be established and funded by the federal government at the time the
facility is transferred to the local sponsors for the purpose of covering this already
identified $2,546,000 in capital costs. This escrow account will be the basis upon which
a depreciation fund will be established for the Savannah Bluff Lock and Dam facility.
H:^.USERS\CMARTrN\Utilities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-FINAL021901.doc Page 1 of 5
March 5, 2001
The local sponsors will request that the local governments, appropriate state
peiniitting agencies and the Army Corps of Engineers advise, and if possible, require
that any new entity requesting a withdrawal permit from the Augusta Pool participate
in the costs of operating the Savannah Bluff Lock and Dam in accordance with this
agreement.
5. Operational Expenses:
A. All operations, maintenance, and capital costs associated with the Savannah Bluff
Lock and Dam will be shared on a percentage basis. For the initial stakeholders the
percentage of participation will be:
Aiken County—North Augusta 30%
Augusta-Richmond County 30%
DSM Chemical North America, Inc. 10%
Kimberly-Clark Corporation 10%
PCS Nitrogen 10%
General Chemical Corporation 10%
B. The participating industrial/commercial stakeholders shall not be charged additionally
through special taxes or fees for any costs associated with maintaining the Savannah
Bluff Lock and Dam. If a special district is set up for the purpose of generating
revenues for the expenses associated with the facility, the participating
industrial/commercial stakeholders shall be credited for any amount paid by said
stakeholder under this agreement.
6. Finances:
A. A separate enterprise fund will be established for the purpose of financial accounting
in association with maintaining the Savannah Bluff Lock and Dam.
B. The Savannah Bluff Lock and Dam Enterprise Fund will be reflected annually in the
Aiken County and/or North Augusta audits.
C. A separate audit of the Savannah Bluff Lock and Dam Enterprise Fund would be
available at the cost of the requesting party.
D. All revenues from whatever source shall be credited to the project in the following
order:
1. Annual operations
2. Depreciation/Contingency
3. Local sponsors
H:\USERS\CMARTIN\Utilities\SAVANNAH BLUFF LOCK AND DAM MEMORANDUM OF UNDERSTANDING-FINAL021901.doc Page 3 of 5
4
March 5, 2001
10. Stakeholders Review Committee: Each stakeholder will be asked to desianate a
representative to the Stakeholder Advisory panel. Each of the 8 initial stakeholders will
have one voice. Any new stakeholder will automatically have a representative.
11. Concurrence: We, the undersigned stakeholders concur with the principles contained
within this Memorandum of Understanding. In so doing we recognize that this document
is not a contract.
Aiken County Government Permanent Date
North Augusta Government Permanent Date
'I Augusta-Richmond County Government Permanent Date
DSM Chemical North America, Inc. Industrial Date
General Chemical Corporation Industrial Date
PCS Nitrogen Industrial Date
Kimberly-Clark Corporation Industrial Date
SCE&G Urquhart Station Contractor Date
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