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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 R:\USERS\CMARTFN\UtilitiesiSAVAN'IAH BLUFF LOCK AND DAM MEMORANDUM OF DNDERSTANDING-FINAL021901.doc Page 5 of 5