Redevelopment commission approves Waverly wastewater agreement to enter SRF loan queue

Chelsea, a staff member for the Morgan County Redevelopment Commission, told members the resolution before the commission would approve the Waverly wastewater system acquisition agreement "in substantial form" so the county could enter the State Revolving Fund (SRF) loan queue.

Chelsea said the regional sewer district asked for more time to respond to questions (from 24 hours to about five days) and had tabled the matter earlier because of two issues: the closing date and responsibility for existing on-site infrastructure such as laterals and mains. She said staff is pursuing a maintenance bond for up to three years to cover post-closing failures; if a bond is not possible, staff proposed placing up to "a quarter of 1,000,000" in escrow to cover repairs.

"We need the agreement so that we can get in the queue with SRF for closing," Chelsea said, adding SRF closing currently looks like it may occur in July.

Chelsea also said Barnes and Thornburg attorney Chris Bridal has been working with county staff and will attend the next regional sewer district meeting to answer questions. The regional sewer district had previously tabled the agreement; Chelsea said staff expects to return it to the district in April with additional exhibits.

Troy Sprinkle moved to approve Resolution 20-26-1, Meredith seconded, and members approved the resolution by voice vote.

The record shows the commission approved the agreement "in substantial form" rather than a final signed contract; Chelsea said staff will return to the commission to ratify any substantial subsequent changes and will complete missing exhibits before closing.

Next steps: staff will continue coordination with the regional sewer district and SRF and expects to present the final materials ahead of the anticipated July SRF closing.