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Nelson County approves support agreement to advance Lovingston sewer rehabilitation
Summary
The Board unanimously approved a county support agreement enabling the Nelson County Service Authority to proceed with an estimated $2.235 million Lovingston sewer rehabilitation project, including CIPP lining of about 8,000 linear feet of pipe and a USDA-backed loan portion the county pledged to support as a moral obligation.
The Nelson County Board of Supervisors on Aug. 13 approved a support agreement that clears the way for the Nelson County Service Authority to seek long-term financing for a Lovingston sewer rehabilitation project.
The Service Authority’s assistant executive director, Jennifer Fitzgerald, told the Board that about 16,000 linear feet of terra-cotta (clay) sewer pipe serve Lovingston and roughly 8,000 linear feet will either be replaced or lined using cured-in-place pipe (CIPP), a trenchless method that creates a jointless, seamless pipe inside the existing pipe. Fitzgerald said the work will include replacing 31 manhole covers and frames, lining sewer laterals and manholes, and CCTV inspections to locate problem segments before construction begins.
"This method would extend the pipeline for up to 50 years," Fitzgerald said, and it is intended to eliminate inflow and infiltration that lead to sanitary sewer overflows that are prohibited under the locality’s Virginia Department of Environmental Quality permit.
Why it matters: County staff framed the project as a public-health and environmental protection measure that also reduces long-term maintenance costs for aging infrastructure. The full project budget is $2,235,000, and Fitzgerald said the Service Authority is eligible for grant funding that covers about 71% of the cost. The permanent financing will include a USDA Rural Utilities Service (RUS) purchase of a revenue bond to cover the remaining portion.
County Administrator Candice McGarry told supervisors the support agreement is required by the financing entity so the Service Authority can take on the loan portion (roughly $600,000 as presented). The agreement includes a county "moral obligation" pledge to appropriate debt service if requested and to establish a 10% debt service reserve until one annual payment is accumulated.
Supervisor Jesse Rutherford, who asked for confirmation that the grant was income-based and comparable to a prior Schuyler award, said the project was timely for Lovingston. The Board voted 3-0 to adopt Resolution R2024-59, authorizing execution of the support agreement and the associated non-binding county pledge.
Fitzgerald said the project start date was delayed about five to six months because USDA’s Office of General Counsel review and the unexpected passing of the project engineer pushed the schedule; the construction is expected to take about 18 months once started. She also announced a project event at the courthouse at 11 a.m. on Aug. 20, 2024.
The Board’s action: The resolution approving the support agreement (R2024-59) passed unanimously (3-0) by roll call vote. The motion was moved by Jesse N. Rutherford and seconded by Dr. Jessica L. Ligon.
Authorities and next steps: The resolution and presentation referenced the Virginia Water and Waste Authorities Act (Chapter 51, Title 15.2, Code of Virginia) and the RUS Letter of Conditions describing the terms of the bond and grant eligibility. The Service Authority will proceed with CCTV inspections and finalize procurement and construction schedules; staff noted the public ceremony and next steps for financing.
