97

Loudoun County Sanitation Authority as permittee. This revised discharge permit will Include dechlorinaton. He said that the Authority received no response from the Loudoun County Planning Commission on its earlier correspondence regarding the potential return of ownership and operation to VICA. Mr. Gilchrist asked if VICA was copied on this correspondence. The General Manager replied no. Mr. Gilchrist suggested that VICA be provided copies of the correspondence.

19. Mr. Madigan asked about continuing discussions with Bell Atlantic regarding their request to locate a telephone antenna on the Authority's Sterling Park water tank. The General Manager responded that he had not heard from Bell Atlantic in approximately two months.

20. Mr. Gilchrist asked about the development of community well standards for Western Loudoun villages. The General Manager responded that Burns & McDonnell had completed their review and recommendations on I well testing. Mr. Hammes said these recommendations will be followed at the proposed subdivision adjacent to Lovettesville. The rest of the standards are dictated by the State Health Department and will be revised as required by the developer's engineers, subject to review and approval by the Authority,

21. Mr. Cornwell asked if there had been any coordination with the Authority and the Loudoun County Planning staff when they were developing the VISIONS concept, Mr. Hammes responded that more than 2-1/2 days of staff time was devoted to this in November.

22. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

M COXuuyc //. /£ ^-^^ airman Secretar^f

Meeting, January 17, 1989 I 1. A joint meeting was held on January 17, 1989 at 4:00 p.m. between the Loudoun County Sanitation Authority and the Loudoun County Board of Supervisors in the Loudoun County Board of Supervisors Meeting Room.

2. All members of the Loudoun County Sanitation Authority and the Loudoun County Board of Supervisors, and key staff of each body, were present, along with members of the media and the public.

3. Mr, Madigan, Chairman of the Authority, thanked the Board of Supervisors for the opportunity to meet with them to review the Authority's capital improvements program and fiscal plan to finance the improvements, He explained that the Authority currently has over $55 million worth of assets throughout its distribution system. These assets have been acquired through donation by developers and financed through the collection of availability charges. In order to improve the quality.of current services and plan for future growth, the Authority has adopted a capital improvements program which includes, the acquisition of 352 acres of land on which to.build a future AWT plant, purchase of wholesale water capacity from the Fairfax County Water Authority, construction of major transmission mains and other improvements. In order to finance the CIP it is necessary for the Authority to sell approximately $40 million worth of revenue bonds in February or March, 1989. The Authority plans to retire the bulk of the $50 million debt out of future availability charges. Unfortunately, to have the facilities in place when they are needed to meet development the Authority has to--plan and construct in advance of I collecting availability charges. Therefore, the Authority must advance these funds and retire the debt partially out of user rate increases. It is expected that the current proposed user rate increase in connection with the collection of availability charges will effectively reduce future user rate increases. Over 10% of the currently proposed user rate increase had been recommended in a November, 1986 rate study developed by Burns & McDonnell Engineering Co. Only the remaining 14% is required because of the sale of the $40 million worth of bonds. 98

4. Mr. Madigan then had Mr. Dale Hammes, the Authority's Deputy General Manager review the CIP Feasibility Study reconmiend- atlons and the proposed user rate increase in detail.

5. Mrs. Betty Tatum, Chairman of the Board of Supervisors, questioned the comparison of water and sewer charges with other jurisdictions that she had been furnished. She stated that the Authority's proposed rate increase was as low or lower than any other jurisdiction in Loudoun County, however, it was higher than those in Fairfax City, Fairfax County, and Herndon. Mr. Madigan responded that those comparisons are made on existing rates in all jurisdictions. Many listed jurisdictions are considering or will have to consider rate increases in the near future.

I 6. Mrs, Tatum said that she had received a letter and a number of telephone calls from customers concerned about the proposed rate increase. She said she understood that customers have to pay for services, however, she said she understood that it was the Authority's policy to have new facilities paid for by connection charges for new hookups. The General Manager responded that this is still the Authority's policy, however, the Authority did riot have the luxury of waiting until a sufficient reserve had been created for the collection of availability charges to purchase the 352 acre site for the advanced wastewater treatment plant on Broad Run, He also said that the cost of land had doubled the last 12 to 18 months, but was still less than the cost or price being paid for adjacent property. She said that in other words the statements made by the Authority earlier were based on the best information available at the time. She suggested that elected officials be provided with all potential caveats or unknowns dealing with rate increases in the future.

7. The Chairman and the General Manager both emphasized that the projections contained in the feasibility study amounted to 800 connections a year. We believe, however, that connections will be much larger than that resulting in additional accumulation of availability charge allowing the Authority to redeem the bonds earlier I thereby effectively reducing the future user rate increases. 8. Mr. Bos said the Town of Leesburg went through the same scenario several years ago. He congratulated the Authority on advance planning and stated that we couldn't wait until the year 2000 to acquire property and build and finance an advanced wastewater treatment plant. He said there was no way to avoid the present users from paying for part for this facility. He said the rate increases seem high at first but at some point in the future we will look back and consider them more than reasonable. He said the broader issue was the number of expected hookups on which this financing is based. He said this is where the Authority and the County needed cooperation and communication.

9- Mr. Stockman said he was not pleased with the amount of the proposed increases. He said he strongly suggested in 1984 that the Authority increase its connection charges to build a reserve to finance future improvements. He said he understood that facilities for growth would be financed out of connection charges. He then asked about the connection charges the Ashburn Farms Subdivision was paying. The General Manager responded that the Loudoun County Government would be receiving all reimbursement due the developer as a result of their proffer to the County. Mr. Stockman suggested that there wasn't very much that could be done and there are a lot of people irritated over the amount of the increase. The General Manager responded that he I had reminded Mr. Stockman and the Board in 1984 that the Authority had been advised by General Counsel that it could not arbitrarily and artifically set connection charges without facilities being planned and incorporated in the comprehensive plan and it was only recently that these two factors became a reality.

lO. Mrs. Kavanagh said she had been receiving letters and phone calls concerning the proposed rate increase and asking why the County needed to construct a facility to accommodate growth. She asked why the existing customers were being asked to finance facilities for future growth. The General Manager responded that in order to receive the lowest possible interest rate on the bonds the investment bankers 99

bond insurers, and rate consultants were requiring that the present users fund 75% of the debt service and 25% be financed out of connection charges. He said this was less than the 50-50 split or even 60-40 split the Authority had anticipated.

11. Mr. Madigan said that the Authority could not wait until 1994 - 1997 to acquire the property on which to build an advanced wastewater treatment plant. He said our system now operates and benefits from the fact that the Authority had not been required to finance the acquisition of property or_buildL sewage treatment plants or water treatment plants previously, and, therefore, enjoys lower rates than it would have otherwise. The General Manager pointed out the fact that the Authority's capital improvements program for 1989 includes several other improvements chat will benefit the existing customers and improve the quality of service in addition to the site acquisition for the Broad Run AWT site, I 12. Mr. Madigan said that although his opening remarks dealt with only the Broad Run AWT site the Authority was also focusing on water Improvements Including negotiations with the Fairfax County Water Authority to purchase wholesale water.

13. Mrs. Bird asked about the projected costs for the 1997 expenditures to finance the Broad Run AWT Plant. Mr, Madigan responded that the $84+ million were inflated to projected 1997 prices, Mrs. Bird also mentioned drainage problems in her district. Mr. Madigan responded that this was the responsibility of the Virginia Departm:ent of Highways.

14. Mr. Madigan asked the Board of Supervisors if there were any other areas of responsibility the Board wanted the Authority to become involved in.

15. Mr. Stockman asked how apartment units were billed. The General Manager and Deputy General Manager explained that connection fees for apartment units were computed on the size of water meters as were all other installations.

16. Mrs. Kavanagh questioned the time and location for the public hearing, suggesting that an evening would be more accessible to most customers. Mr. Madigan said that the Authority's Board had discussed this at the last meeting. The 2:30 p.m. was a traditional time for all previous Authority public hearings and that although over 12,000 notices of the public hearing had been mailed only a few comments had been received concerning the time I and location of the public hearing. He did suggest that the Authority would be sensitive to this concern in the future and schedule public hearings that would be most convenient to all Authority customers.

17. Mr. Madigan said that the Authority had revisited the issue of the location of the Broad Run AWT site and the cost of the property. He said that the Authority's engineering advisors had reconfirmed that the selected site was the only viable site along Broad Run and land appraisers had informed the Authority the cost the Authority was paying for the property is less than sales of surrounding property.

18. Mrs. Tatum said she felt the Authority was doing a good job, however, she suggested that it might reconsider a night meeting to accommodate the public.

19. Mr. Bos asked if the Authority was considering another work session dealing with package sewage treatment plants. He said he felt it would be of real value. The General Manager responded that Authority staff were avail­ able to meet at the convenience of Loudoun County officials.

20. The General Manager also volunteered to respond to letters any members of the Board of Supervisors had received regarding the Authority's proposed rate increase. I 21. Mr. Madigan asked the Board of Supervisors if there were any other areas they thought the Authority should be involved in, i.e., solid waste. There was no response and having no further comments the meeting concluded.

w. Avi lairma h^ Secretary ,y 100

Meeting, February 10, 1989

1. A special meeting of Che Loudoun CounCy Sanitation Authority having been duly called was held on Friday, February 10, 1989 at 1:30 p.m. in the Board Room of the Loudoun County Sanitation Authority offices. This special meeting was called prior to the Authority's regular meeting to review the Authority's 1988 Comprehensive Financial Audit with the Authority's external auditor, Ralph Charlton of the accounting firm of Minter, Morrison & Grant,

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr. Michael J. Falzone, R. K. Gheen, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C, Hammes, Deputy General Manager, Robert,K. Frye, Manager, Fiscal Operations, I Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Members of the media were present along with John Price of Burns & McDonnell Engineering Co.

3. The external auditor reviewed in detail the Authority's 1988 Audit with the Authority. He responded to all questions from members of the Authority. Although the Authority's audit reflected an operating loss of $610,000 after depreciation, when non-operating revenues were added the Authority's retained earnings increased $5,075,000 during 1988. After the completion of the review of the Authority's audit the Chairman said that items on the Authority's agenda not requiring action would be taken up.

4. The Deputy General Manager reviewed the agreements and easements which Che General Manager had signed on behalf of Che Authority since its last meeting. Those agreements and easements were:

Onsite Water and Sewer Agreement w/Dulles Warehouse Group dated January 11, 1989 for Prospect Industrial Park

Deed of Easement and Vacation (Sewer) w/636 Limited Partner­ I ship dated January 5, 1989 for 636 Industrial Park The agreements were in standard form and had been reviewed by General Counsel.

5. The Deputy General Manager reported on the status of the Xerox Offsite Sewer, He said that the plans were currently being reviewed by the State Health Department in Culpeper. The easement plats will be prepared soon and the acquisition of the easements will begin shortly. He said that Authority staff will be meeting with the design engineer on Monday to review the status of the project,

6. The Deputy General Manager reported on the Authority's survey of the Town of Hillsboro's water system. He said that AuChority staff had been unable to identify any leaks in the system between the spring and the storage reservoir. He said the Town had adjusted the flow switch which had increased the storage capacity and Chat the situation was not as critical as it had been. He said that Authority staff in its written report to the Town will strongly recommend that if the Town elects to continue using the spring then Che storage must be increased. This will provide a greater volume of available water and sufficient contact time for chlorination. Mr. Madigan asked if the situation could deteriorate during the summer, Mr. Hammes replied that current circumstances I would lead us to believe that it will. 7. The General Manager reported on items of interest of bills being considered by the 1989 Virginia General Assembly. He reviewed one which had passed both houses. This bill will require that interest be paid on retainages of contracts for public works projects over $200,000. He said the contracting authority must offer the selected contractor an escrow account to administer chis provision. IC will be encumbent upon the contractor to elect to request such an account. 101

8. The minutes of the meeting of January 13, 1989 having been previously presented were approved as presented and to be so recorded.

9. The Chairman called the public hearing to order to consider public comment on the Authority's proposed rates and read the following statement:

This is a public hearing regarding rates for the Authority. The AuChority, upon Che recommendaClon of iCs staff, consulting engineers and counsel, on November 30, 1988, passed a resolution signifying its intention to modify its rates and certain other fees and charges applicable to service by the Authority. Notice of this Public Hearing setting forth the proposed rate schedule was given by two publications in the Washington Post, a newspaper having general circulation in Loudoun County. This publication appears in che issues of December 4 and 10, 1988. All users of che facilities owned by the Loudoun County Sanitation Authority and all others interested now have an opportunity I to be heard concerning the proposed rates and charges.

The basis for the continuing service rate increase and other charges are as reported to the Authority by its consulting engineers. Burns and McDonnell Engineering Co., in their letter report dated November 30, 1988. The staff of the Authority is available to answer any questions from any Board member or from members of the public. Following any questions and answers, and upon consideration of any further information which may be brought forth in this Public Hearing, it will be in order to consider a Resolution, a copy of which is before you for adoption, of the rates therein set forth, to become effective February 13, 1989.

10. Mr. Madigan reported on the public meeting held in Sterling at the Sterling Middle School last evening to receive comment from the public on the proposed rate increases. He said that the major concern expressed was the size of the proposed increase. He said that he and Authority staff had explained why such a large increase was necessary. He said he felt that the Board in considerinj future increases should provide more time for the public to review and develop questions and responses. He also said he felt the Authority should consider evening public hearings in Che future to accommodate the general public.

11. The Chairman asked the General Manager if he had any observations on the public meeting. The General Manager said he had another issue raised which he felt the Authority should consider in future rate studies and/or I increases. That issue concerns the senior citizens on fixed income, living alone and not consuming che minimum amounc charged under the rate structure. One other concern expressed was the water restrictions which were in effect during the summer of 1988. A retired couple who were present expressed their concerns over retirees living on fixed incomes having to make ends meet and pay the additional costs of water and sewer service as well as other utilities, goods and services. They said that it is possible if prices continue to spiral upwards that they and others will be forced to leave Loudoun County. Mr. Madigan said that approxiamtely 18 people out of a population of approximately 30,000 served by the Authority attended the public hearing last evening to raise their objections over the increases. Mr. Falzone suggested that the consultant.consider a two-tier billing system for future rate increases. He said it isn't necessarily only the elderly but other singles living along which do not consume the minimum amount charged. Mr. Black asked what percentage of the Authority's customer base was composed of minimum users. The General Manager responded that the billing printouts would need Co be analyzed to determine the percentage.. Mr. Gheen said Chat most of the Authority's customers were not aware of the savings which the Authority's use of the Potomac Interceptor Sewer have produced and have been passed on to customers. This has relieved the Authority from having a sewage treatment plant and major lines of this type until this point in time. Mr. Madigan said that the rate consultant has noted that from 1975 to date the capacity costs for sewage creatment have increased over 300%, however, the Authority has been able to keep its user rate increases below 200% during the same period. I 12. No further comments being made the public meeting adjourned.

13. The Chairman called the regular meeting of the AuChority to order at 3:00 p.m.

14. Others who had arrived during the public hearing were Rob Dickerson of McGuire, Woods, Battle & Boothe, Bill Strickland, Bond Counsel of McGuire, Woods, Battle & Boothe, Jamie Traudt of the investment banking firm of Dillon Read, Inc., David Rose of Wheat First Securities, Robert Novak, Barbara Kayser and other members of the press. 102

15. The Chairman reported that the Authority had considered several items on the agenda not requiring action during the earlier part of the meeting and would report on these items if any members of the public wished information on them. None was requested.

16. The consideration of the proposed rate increase was before the Authority. Mr. Falzone said that he was reluctant but would MOVE that the Authority adopt the proposed rate increase, the motion was seconded by Mr. Black and wich an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the Loudoun County Sanitation Authority does hereby adopt the minimum charge per quarter and the quantity water and sewerage charges hereafter set forth together with I the single service charges as follows: WATER Minimum Charge Per Quarter*

Meter Size 2-13-89

5/8" $ 25,43 3/4" $ 31.79 1" $ 44.50 1-1/2" $ 76.27 2" $114.40 3" $203,37 4" $330.47 6" $648.22

Uniform rates per 1000 gallons over 6,000 gallons $ 1.45

Includes 6,000 gallons per quarter water use

SEWER I Minimum Charge Per Quarter* . .C-,-Meter Size 2-13-89

5/8" $ 27.68 3/4" $ 34.60 1" $ 48.44 1-1/2" $ 83.04 2" $124.56 3" $221.44 4" $349.84 6" $705.84

Uniform rates per 1000 gallons over 6,000 gallons $ 2,23 Wastewater charge for residential use limiCed to 38,000 gallons per quarter

Flat quarterly rate for unmetered residential sewer service $ 67.82

*Includes 6,000 gallons per quarter water use I Single Service Charge Water Service Only $ 3.50 Sewer Service Only $ 3-50

BE IT FURTHER RESOLVED, that the Loudoun County Sanitation Authority does hereby adopt the following fees and charges:

1) Applicants submitting plans for water and/or sewerage service conneccing Co the Authority's system shall pay fees computed from the following schedule: 103

Water:

Plan Review Fee: $0.25 per linear foot of pipe to be installed, to be paid when plans are submitted $25.00 Minimum

No change in inspection service fees.

Sewer:

Plan Review Fee: $0,60 per linear foot of pipe to be installed, to be paid when plans are submitted I $25 .00 minimum

No change in inspection service fees.

2) Late Penalty

Rule NO, 9 (Water and Sewer)

E, A penalty of ten percent on accounts not paid within 30 days of their due date shall be charged and collected by the Authority.

3) All other rates, fees and charges will remain the same.

The effective date of said rates and charges shall be February 13, 1989. The Rates, Fees and Regulations of the Authority, except as modified herein, are hereby affirmed and shall remain in effect until modified by action of this Board."

Mr. Madigan explained that the Authority was not indifferent to the concerns raised by its customers but felt it was compelled to move forward with the plans to provide quality service to the Authority's existing customers and provide for future growth, Mr. Falzone wanted the record to show that the rate consultant will be expected to consider minimum charges and two-tier I billing systems in the future rate increase recommendations.

17. The Chairman reported that the Authority had met earlier to review the Authority's 1988 Audit report with the External Auditor. Upon MOTION of Mr. Gheen, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority accepted its 1988 Audit report and authorized the usual distribution thereof.

18, The Authority's financial advisor, Mr. David Rose of Wheat First Securities, was Introduced, Mr. Rose distributed several handouts with information showing the status of the Authority's bond financing. He said that Authority staff and consultants had been working very hard in getting ready to go to market and with the Authority's approval of the proposed rate Increase, one-^ of the last hurdles has been passed. He said that his advice has been based on obtaining the lowest possible cost for the Authority with the greaCesC flexibility and having the ability for the Authority to set its own agenda for the future. He said he felt the Authority's actions which have been taken have p'lace'd the Authority in a position to do exactly that. He said that the bonds will be sold prior to the March 1 scheduled closing on the Broad Run AWT site. We are still talking about an approximate $40 million issue. The issue will be priced and the bond purchase agreement signed in New York next week. Anticipated closing on the bonds will be Tuesday, February 28. He said that when this process started he and the rate consultant were projecting an interest rate for 27 year bonds of approximaCely 8%. He said Coday the rates are more in the range of 7-1/2%. He reviewed comparative I interest rates for other financings done recently: Frederick/Winchester Service Authority at 7.4%, Fairfax County Industrial Development Authority at 7.75%, and City of Hampton at 7,5%. He then reviewed the.options and structures he has been reviewing on behalf of the Authority. He initially presented three basic financing options, AAA insured financing, uninsured BBB, and VRA - AA. He listed these three on one of the handouts Co show how they compare. The size of the issue on all three are the same. He explained the calculations of true interest rates which takes into consideration the underwriters fee, insurance premiums, fee to advisors. 104

and all other related costs. The true interest rate computed on the insured issue amounted to 7.45%. The uninsured issue amounted to 7.8% and VRA issue ammounted to 7.47%. Taking this comparison one step further the rate increase required under the AMBAC insured issue which he was recommending to the Authority was 24.5% under an VRA issue it would have been 39.5% which he felt was prohibitive and unnecessary. It therefore, is his opinion as financial advisor that the Authority should select and authorize the AMBAC insured issue as the best alternative and cost effective. He then reviewed a breakdown of the cost of issuance, variable expenses and fixed costs which include underwriting cosCs, bond counsel expenses, financial advisor expense, and rating house expenses. He then reviewed the events which will take place in New York next week in pricing the issue and signing the bond purchase agreement. He described the resolution authorizing the I purchase which has been provided each member. Mr. Strickland, bond counsel, reviewed the resolution. He said that it approves the principal documents involved in the financing including the master indenture, supplemental indenture, bond purchase agreement and authorized the General Manager, Chairman or Vice Chairman to execute these documents on behalf of the Authority within the specified parameters, Mr. Madigan asked if bond counsel had anything to focus on in this resolution. Mr, Strickland replied that not really because he had reviewed and approved all documents. Upon MOTION of Mr. Graham, seconded by Mr. Gheen and with an unanimous vote of the members present the following resolution was adopted:

RESOLUTION AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,585,000 WATER AND SEWER SYSTEM REVENUE BONDS OF LOUDOUN COUNTY SANITATION AUTHORITY

"The Loudoun County Sanitation Authority (the "Authority") is a public body corporate and politic of the Conmionwealth of Virginia created pursuant to the Virginia Water and Sewer Authorities Act, Chapter 28, Title 15.1 of the Code of Virginia of 1950, as amended (the "Act"). The Authority has determined that it is necessary and desirable to issue its revenue bonds in an amount not to exceed $41,585,000 (the "Bonds") for the purposes of financing the acquisition I of land for the future development of sewer facilities of the Authority, paying costs of certain improvements to its water and sewer system, and paying issuance costs for Che Bonds. The Bonds will be sold by the Authority to Dillon, Read & Co., Inc., Shearson Lehman Hutton, Inc., Scott & Stringfellow, Inc., and Ferris Baker Watts, Inc. (the "Underwriters").

The foregoing arrangements will be reflected in the following documents, forms of which have been presented to this meeting and filed with the Authority's records: (i) the. Master Indenture of Trust, dated as of February 1, 1989 ("Master Indenture"), between the Authority and Sovran Bank, N,A., as Trustee ("Trustee"); (11) the First Supplemental Indenture of Trust, dated as of February 1, 1989 ("First Supplemental Indenture"), between the Authority and the Trustee, with the forms of the Bonds attached as exhibits; (ill) the Bond Purchase Agreement, dated February 16, 1989 (the "Bond Purchase Agreement"), between the Underwriters and the Authority; and (iv) the Preliminary Official Statement, pursuant to which the Bonds are to be offered for sale by the Underwriters (the "Preliminary Official Statement").

After consideration and in furtherance of the public purposes I for which the Authority was created, be it resolved that: 1. The issuance of revenue bonds of the Authority to be known as the Loudoun County Sanitation Authority Water and Sewer System Revenue Bonds, Series 1989, is authorized. The Bonds will be issued in an aggregate principal amount not to exceed $41,585,000. The bonds will be in substantially the forms and contain the terms set forth in the First Supplemental Indenture.

2. The Chairman, the Vice Chairman or the General Manager of the Authority is authorized Co determine and approve 105

the final details of the Bonds, including without limitation, the aggregate principal amount of the Bonds, the interest rates on the Bonds, the dates of the Bonds, the maturity dates of the Bonds and the sale price of the Bonds to the Underwriters, provided that (i) the true interest cost of the Bonds shall not exceed 8.5% and (11) the sale price of the Bonds excluding any original issue discount shall not be less than 97% of the aggregate principal amount thereof. The approval of the Chairman, the Vice Chairman or the General Manager of such details shall be evidenced conclusively by the execution and delivery of the Bond Purchase Agreement.

3. The Master Indenture, the First Supplemental Indenture and the Bond Purchase Agreement are approved. The General Manager, Chairman and Vice Chairman of Che Authority are each authorized to execute on behalf of the Authority, and, if required, the Secretary of the Authority is authorized to affix and attest the seal of the I Authority to, the Master Indenture, the First Supplemental Indenture and the Bond Purchase Agreement in substantially the forms submitted to this meeting, with such changes, insertions or omissions as may be approved by the Chairman or the Vice Chairman of the Authority, whose approval shall be evidenced conclusively by the execution and delivery of the documents. Each officer of the Authority is authorized to execute and deliver on behalf of Che Authority such other instruments, documents or certificates, and to do and perform such other things and acts, as they deem necessary or appropriate to carry out Che transactions authorized by this Resolution or contemplated by the Bonds, the Master Indenture, the First Supplemental Indenture or the Bond Purchase Agreement, and all of the foregoing, previously done or performed by such officers of the Authority, are in all respects approved, ratified and confirmed. The sale of the Bonds to the Underwriters pursuant to the Bond Purchase Agreement is determined to be in the best interest of the Authority.

4. The Chairman and Vice Chairman of the Authority are authorized and direcCed to have the Bonds prepared, to have the Bonds executed pursuant to the Master Indenture and the First Supplemental Indenture, to deliver the Bonds to the Trustee for authentication, and to cause the Bonds to be delivered to or for the account of the Underwriters upon payment of the purchase price as specified in the Bond Purchase I Agreement.

5. The form of the Preliminary Official Statement and a final official statement in substantially the form of Che Preliminary Official Statement are approved and their use by the Underwriters in connection with the offering and sale of the Bonds is approved, ratified and confirmed. The General Manager and the Deputy General or the Chairman of the Authority are authorized and directed to execute and deliver the final Official Statement in substantially the form of the Preliminary Official Statement submitted to this meeCing, with such changes, insertions or omissions as the executing officer may approve.

6. This Resolution will take effect immediately."

This resolution authorizes the Chairman and General Manager to conclude the final details of the issue which will take place next week in New York. Mr. Madigan asked if Loudoun County citizens could purchase these bonds through their brokers. Mr. Rose replied that yes they could, The Chairman then thanked Mr. Rose for his assistance and financial advice on this bond issue.

19. The General Manager reviewed the draft wholesale water purchase agreement with the Fairfax County Water Authority which was before the Authority, He explained that this draft has removed the cost of certain I facilities which the Water Authority had included in an earlier draft. We do not believe these facilities benefit the Authority, and, therefore, eliminated them. He said that with elimination of these facilities the computed costs of the water capacity are approximately $700,000 less than the $2.4 million per million gallons capacity contained in the Water Authority Agreement. He requested formal approval from the Authority to sign and submit this agreement to the FCWA. Upon MOTION of Mr. Black, seconded by Mr. Falzone and with an unanimous vote of the members present the Authority authorized the General Manager to submit this water purchase agreement to the Fairfax County Water AuChority for consideraton. 106

20. Mr. Franklin, General Counsel, reported that we now have a final agreement to purchase the Dematteis Tilles portion of the Broad Run AWT Site. He said the terms of the agreement are essentially the same as reported earlier. The price is $2.05 per square foot with settlement to occur on May 1, 1989 or earlier if specified by the Authority. Other features differ slightly from the Bles South Agreement because of the complex understanding about how the properties will develop and the proffers made by each developer for road improvements. He recommended and requested Chat the Authority authorize the General Manager to execute the agreement subject to his final review prior to executing the bond purchase agreement in New York next week. Upon MOTION of Mr. Gheen, seconded by Mr. Cornwell, and with an unanimous vote of the members present the Authority authorized the General Manager to sign the land purchase agreement with Demattis Tilles upon final review of I General Counsel.

21. The General Manager reported that the Authority received 12 proposals in response to its request for proposals for enigneering services for the Cub Run Pumpover. He said that all were responsive and had been reviewed and evaluated by Authority staff. Four firms were selected for Interview. Those firms were CH2M & Hill, Hazen & Sawyer, Camp Dresser & McKee, and Burns & McDonnell. He said that subsequent to the interviews the firms have been narrowed down to two, Burns & McDonnell and Camp Dresser & McKee, He recommended and requested that the Authority authorize him to negotiate with both firms to reach a final selection. He said that part of the preliminary work for this project will be aerial photography to determine the final routing and topography for the sewer. He said that this work must be done prior to the middle of March when the trees begin to bud. He recommended and requested that the Authority authorize staff to have this photography for the routing and location of Che water storage tank on Route 659 be included in the resolution. Upon MOTION of Mr. Gheen, seconded by Mr. Thomas and with an unanimous vote of the members present the Authority authorized further negotiations with the engineering firms of Camp, Dresser & McKee and Burns & McDonnell and authorized the requested aerial I photography. 22. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

ki/ %o^yy ^ ^.^^f.^.i airman Secretary /

Meeting, March 10, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, March 10, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr,, and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Robert K. Frye, Manager, Fiscal Operations, Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel, of McGuire, Woods, Battle & Boothe. Other Authority staff present were I Messrs. Tim Coughlin and John Fay. Members of the media and the public were also present.

3. The minutes of the special and regular meetings of February 10, 1989 having been previously presented were approved as presented and to be so recorded.

4. Mr. Hammes, Deputy General Manager, reviewed the agreements and Deeds of Easement and Vacation which had been signed by the General Manager on behalf of the Authority since its last meeting. Those agreements are: 106

20. Mr. Franklin, General Counsel, reported that we now have a final agreement to purchase the Dematteis Tilles portion of the Broad Run AWT Site. He said the terms of the agreement are essentially the same as reported earlier. The price is $2.05 per square foot with seCClement to occur on May 1, 1989 or earlier if specified by the Authority, Other features differ slightly from the Bles South Agreement because of the complex understanding about how the properties will develop and the proffers made by each developer for road improvements. He recommended and requested that the Authority authorize the General Manager to execute the agreement subject to his final review prior to executing the bond purchase agreement in New York next week. Upon MOTION of Mr. Gheen, seconded by Mr, Cornwell, and with an unanimous vote of the members present the Authority authorized the General Manager Co sign the I land purchase agreement with Demattis Tilles upon final review of General Counsel,

21. The General Manager reported chat the Authority received 12 proposals in response to its request for proposals for enigneering services for the Cub Run Pumpover. He said that all were responsive and had been reviewed and evaluated by Authority staff. Four firms were selected for interview. Those firms were CH2M & Hill, Hazen & Sawyer, Camp Dresser & McKee, and Burns & McDonnell. He said that subsequent to the interviews the firms have been narrowed down to two. Burns & McDonnell and Camp Dresser & McKee. He recommended and requested Chat the Authority authorize him to negotiate with both firms to reach a final selection. He said that part of the preliminary work for this project will be aerial photography to determine the final routing and topography for the sewer. He said that this work must be done prior to the middle of March when the trees begin to bud. He recommended and requested that the Authority authorize staff to have this photography for the routing and location of the water storage tank on Route 659 be included in the resolution. Upon MOTION of Mr. Gheen, seconded by Mr. Thomas and with an unanimous vote of the members present the Authority authorized further negotiations with the engineering firms of Camp. Dresser & McKee and Burns & McDonnell and authorized the requested aerial I photography. 22. There being no further business, upon motion duly made, seconded and carried the meeting adj ourned.

airman Secretary -9

MeeCing, March 10, 1989

1. A meeCing of the Loudoun County Sanitation Authority having been duly called was held on Friday, March 10, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Robert K. Frye, Manager, Fiscal Operations, Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel, of McGuire, Woods, Battle & Boothe. Other Authority staff present were I Messrs. Tim Coughlin and John Fay. Members of the media and the public were also present.

3. The minutes of Che special and regular meetings of February 10, 1989 having been previously presented were approved as presented and to be so recorded.

4. Mr. Hammes, Deputy General Manager, reviewed the agreements and Deeds of Easement and Vacation which had been signed by the General Manager on behalf of the Authority since its last meeting. Those agreements are: 107

Deed of Easement & Vacation (Sewer) w/Pulte Home Corp. dated 2-9-89 for S-80 Woodstone Outfall

Deed of Easement and Vacation (Sewer) w/NV Mercure Ltd. Partner­ ship dated 2-14-89 for Mercure Business Park, Lots 7A, 8A, 9 & 10

Onsite Water and Sewer Agreement w/Inder Chawla, N.D.,dated 2-23-89 for Sterling Retail Center

Deed of Easement and Vacation (Sewer) w/NV Mercure Ltd. Partner­ ship dated 11-19-88 for Mercure Business Park, Lots 2, 3, and 4

Deed of Easement and Vacation (Water) w/NV Mercure Ltd. Partner­ ship dated 2-20-89 for Mercure Business Park I Deed of Easement and Vacation (Sewer) w/NV Mercure Ltd. Partner­ ship dated 2-20-89 for Mercure Business Park, Lots 2, 3, 4 & 18

Onsite Water and Sewer Agreement w/North Dulles Retail Associates dated 2-28-89 for Dulles 28 Centre

Offsite Sewer Agreement w/Ashburn Village Joint Venture dated 3-1-89 for S-88, Ashburn Village Phase III, Section 28 Sanitary Sewer Outfall

Onsite Water & Sewer Agreement w/Windson Development Corporation dated 3-1-89 for Woodstone, Section II, Phase I

All were standard agreements and had been reviewed by General Counsel.

5. The Chairman and the General Manager reported on the recent sale of approximately $40 million of Authority revenue bonds. Mr. Madigan expressed the AuChoriCy's appreciation to Authority staff for their efforts in working with the consultants and financial advisors to bring this issue to market. He said that the timing of bringing the issue to market was very opportune considering inCerest rates have increased since the Authority's bonds were sold. The General Manager agreed and pointed out that even on February 16 when the Authority's bonds were sold for 7.5% other AAA insured issues sold for 7.6% to 8,1% with the same maturity dates. He said that the Authority's financial advisors, investment bankers, bond counsel, general counsel, and I rate consultant worked very hard in preparing this issue and bringing it to market. He said they deserve a lot of credit for their efforts in securing the lowest interest rate possible on these bonds. Mr. Gilchrist asked when the next bond issue would be needed. The General Manager responded that the next issue is expected to be needed to construct the Broad Run AWT plant around 1996. Earlier an additional $9 to $10 million borrowing was projected to be needed around 1991 and 1992, however, if availability charge revenue is received as projected this issue will not be needed. The General Manager said that settlement occurred and the Authority received the proceeds of Che sale on February 28. The funds were Cransferred to and invested by the trustee. The settlement on the 352.5576 acres occurred on March 1, 1989. The AuChority is now the record owner of .:the„,Broad. Run AWT site. He said that although the purchase price of the property had been estimated Co be about $33 million it now appears that after all bills are received, it will be somewhere between $600,000 and $700,000 less. The General Manager reported that the previous owner had leased the property to the Virginia Beef Corporation on which to raise sod. He said that he had discussed the possibility of the Authority continuing a similar lease with Virginia Beef Corporation with Mr. William Brockett, the president. He has asked Mr. Franklin to draft a lease agreement for the Authority's consideration. Mr, Gilchrist asked the status of the planning for the field office facility for the site. The General Manager responded that this was a priority project and that once the commission permit for the site is received more detailed planning will begin. He said that the language in Che commission permit application will when approved allow the erection of such a facility on this site. I

6. Mr. Hammes, Deputy General Manager reported that Burns & McDonnell Engineering Co. has been authorized to design a water repump station for Che SCerling Park WaCer SCandpipe. He said this project is included in the Authority's approved CIP. The repump station will allow full utilization of the tank and improve water pressue in the areas surrounding che tank. The repump station will extend the life of the tank and meet the demands of the growth and storage requirements placed on the Authority by the Virginia State Health Department. It will allow the Authority to meet storage requirements until its next storage tank on Rt. 659 is constructed and put in service. Mr. 108

Madigan asked the status of that site. Mr. Hammes responded that Authority staff will be meeting with the developers next Wednesday Co resolve remaining deCails of Che donation of the site to the Authority. He reported that Burns h McDonnell is beginning the design of the tank and the transmission main to the tank. Aerial photography will be done in the next couple of weeks.

7. Mr. Tim Coughlin, Chief Engineer for the Authority, reported on the status of the County's VISIONS concept for Western Loudoun, He reported that Authority staff serves as a technical resource to the task force of citizens investigating the comments and concerns generated at the public hearings in December regarding the proposed amendments to the County Zoning Ordinance. He said the task force is investigating three zoning options: small farms, clusters and villages. Each of these has different water and sewer issues. Major concerns for I community water issues are stream locations, quality, quantity, soil conditions, and state and federal regulations as far as impoundment and ground water are concerned. From a ground water standpoint the major issue is reserving sufficient land for future possible construction of impoundment for emergency or backup system should the initial groundwater system not provide quality and quantity sufficient for the village. Other issues regarding water is the protection plan for the surface or ground water once it's constructed. Another major issue is not only capital costs, but the operation and maintenance costs. Sewer issues are very similar, stream locations, state treatment standards and treatment types. He said from a sewage treatment plant standpoint, where to discharge to a stream is a big issue because of treatment standards. Loudoun County is in a very stringent water quality area. He said he expected the task force to be able to make recommendations by the end of the month to Che Board of Supervisors and the Planning Commission. His understanding is that within 4 to 6 months after this the Board of Supervisors will adopt amendments to the Comprehensive Plan, Zoning Ordinance and Subdivision Ordinance. Mr. Madigan said that the Authority has consistently maintained throughout that any of these systems will have to be financially self-sufficient. Mr. Cornwell asked if this will make it economically unfeasible for small villages. The General Manager responded ChaC it could make it awful expensive for the small villages of approximately 50 units as opposed to villages of 300 plus units, since I the sewage treatment plants will have similar operating costs. Labor costs for both size plants are essentially the same; only the electrical and chemical costs increase for the larger size plants. Mr, Black asked if there had been any discussion of providing water to the incorporated towns. Mr. Coughlin responded that there had not been. The Authority will be kept informed of the developments of the VISIONS concept.

8. The General Manager reported that following authorization by the Authority at its last meeting, staff had met with the engineering firm of Burns & McDonnell Engineering Co. and Camp Dresser & McKee to review their proposals for the engineering and design of the Cub Run Pumpover. He said that Authority staff was now in a position to recommend ChaC the contract be awarded to the engineering firm of Camp Dresser & McKee for the preliminary planning effort of this project. He said that the project will be divided into two phases, preliminary planning and the final design stage. This is because the Loudoun County Board of Supervisors still have not approved the Cub Run Area Plan. Conducting preliminary planning is consistent with the Authority not developing projects prior to Board of Supervisors approval. The project may be further divided into two sections, one consisting of the gravity sewer from its origin near the Potomac Interceptor Sewer to the southern boundary of the Dulles North Area which has been approved by the I Loudoun County Board of Supervisors. He said that he, Mr. Hammes, and Mr, Coughlin met last week with landowners in this area who are very much interested in proceeding. If so, they will finance Che Cotal cost of this portion of the project. After further discussion, upon MOTION of Mr.,Falzone, seconded by Mr, Cornwell, and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the Authority hereby awards Phase I of the Cub Run Pumpover Engineering Contract to the firm of Camp Dresser & McKee in the amount of $330,284.00." 109

9. Mr. Coughlin reviewed the status of the Xerox Offsite Sewer. He said Chat the application for a commission permit and special exception was submitted in December. Comments have been received from all county agencies which are minor in scope. These deal with connection Co the existing sewer, construction Impact, environmental concerns, and the fact that we were passing near the Hidden Lane Landfill adjacent to Broad Run Farms. The County will require that we perform monitoring in the area of the landfill. We expect a public hearing on the application to take place in the next month or two. Easement plats are about ready. We don't expect any problems in acquiring easements since we have met with all property owners along the route of the sewer. We have received a permit to cross Broad Run and have found that it will be necessary to conduct a Phase I Archealogical Study along the sewer alignment required by the Division of Historical Landmarks. Mr. Coughlin said that a number of studies have been done in this area and this should not be a significant undertaking. We should be ready for construction in approximately 2 months. I 10. The General Manager reported that the plans for the expansion of the Authority's office building are approxiamtely 95% complete. He said that the site plan has been submitted to the Town, however, we have not received comments as of this date. He said if we can get the Town's comments on the site we should be able to advertise the project around the end of April.

11. Mr, Coughlin explained that the County Board of Supervisors has postponed action on the pretreatment ordinance until March 20 to allow the County Attorney to make some minor revisions. Authority staff have surveyed Che AuChority's industrial dischargers and have determined that approximately seven will need permits. Mr. Madigan asked if fees would be Imposed on these dischargers. Mr. Hammes responded that we don't yet have a permit fee but are discussing it. Any lab expense to analyze samples from the dischargers will be their responsibility. Mr. Gilchrist asked who some of these dischargers were and what they will discharge. Mr, Hammes responded thac they include firms such as Automata on Rt, 28 which does electroplating and makes circuit boards for computer equipment. These discharges could if not treated contain heavy metals and acids.

12. The General Manager reported on House Bill 1100 which passed the 1989 Virginia General Assembly. This bill will fund Che cosCs of the relocation of utilities from primary highway rights-of-way. Before the enactment of this law all utilities were required to relocate their utilities I which interfered with road improvements at their expense. Now the cost of relocations become a part of the project costs. The bill was signed by the Governor on February 24 and included an emergency provision which made it effective on that date. This will save the Authority a substantial amount of money for the relocation of its facilities along Route 28. We are unsure of che exacC amount at the present time but will keep the Authority informed.

13. The General Manager introduced Mr. John Fay, the Authority's new Public Relations/Personnel Administrator. Mr. Fay replaces Mr. John Wailes who becomes Assistant to the General Manager as he goes on a permanent parttime basis.

14. Upon MOTION of Mr. Thomas, seconded by Mr. Black and with an unanimous vote of the members present, the Authority voted to go into executive session under Section 2.1-344(a), Subsection 6 of the Code of Virginia.

15. Upon MOTION of Mr, Black, seconded by Mr. Cornwell, and with an unanimous vote of the members present the Authority voted to return to regular'session.

16. During the executive session the Authority was briefed on the details and status of the negotiations with the Fairfax County Water Authority to enter into an agreement to purchase water. There was no action required, I

17. There being no further business, upon motion duly made, seconded andcarried the meeting adjourned.

Ui •^ hairman /^ Secretary fj 110

Meeting, April 14, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, April 14, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority.

2. Those present were Arlyn K. Black, Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, John W. Wailes, Assistant oC the General Manager, John Fay, Public Relations/Personnel Administrator, Robert K. Frye, Manager, Fiscal Operations, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel, of McGuire, Woods, Battle & Boothe. Members of I the media and the public were also present. 3. The minutes of the meeting of March 10, 1989 having been previously presented were approved as presented and to be so recorded.

4. The General Manager reviewed the request from the Sterling Park Safety Center to waive the water availability charges for their facility expansion. He explained that due to a higher water demand in the new facility, it is necessary to increase the size of the water service from 1" to 2" to meet the demand. Based on the Authority's current water availability charges and allowing credit for charges paid in 1971 leaves approxiamtely $20,000 due. He explained that since 1971 the Safety Center had been allowed to use an unmetered water service for fire related activities and that this condition will continue. Authority staff, however, have taken the position that this service line should be metered although there will be no charge for the water. This will help identify a portion of a substantial amount of unaccounted for water. He said that we had offered to provide a surplus water meter Co the Safety Center to install for this purpose. The General Manager explained that he had met with Philip Bolen, County Administrator, Mr. Rambo of the Safety Center, Mr. Goldfeder, Fire Marshall, and others in the Loudoun County Planning Department to resolve issues surrounding this project, one of which is the availability charges. He said that I Mr. Rambo understands the Authority cannot legally waive any of its fees or charges. He said Mr. Bolen had informed Mr. Rambo that Ms. Betty Tatum, Chairman of the Loudoun County Board of Supervisors, was prepared to recommend to the Board that they pay the increased water availability charges. A lengthy discussion then took place over the request. Mr. Black and Mr. Falzone suggested that should the Loudoun County Board of Supervisors not pay the increased availability charges the Authority should consider allowing the Safety Center to pay the fees over several years. Mr. Gheen asked what was the total cost of the project. The General Manager responded that the project has increased from an estimated $500,000 to more than $1 million. It was the consensus of the members that the Authority did not need to take any action today but wait to see what action the Loudoun County Board of Supervisors will take.

5. The General Manager reviewed a recent request from the City of Fairfax for the Authority to make a commitment to purchase a minimum of 5 mgd for the next 18 years. This is the length of time required to pay off the outstanding debt for the plant expansion. He said that we are now nearing the completion of a water purchase agreement with the Fairfax County Water Authority and that he was in a position to recommend that the Authority make this commitment. Mr. Gilchrist asked whether or not the cost would be similar to what was now being paid. The General Manager said yes, that the cost will still be determined by the exact formula used now based on the City's annual audit. Upon MOTION of Mr, Gilchlrst, seconded by Mr. I Graham, and with an unanimous vote of Che members presenC Che AuChority voted to commit to buy a minimum of 5 mgd of water for the next 18 years from the city of Fairfax conditioned on cost and quality.

6. The Deputy General Manager reviewed a list of 11 agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that only one. Airport West, included oversizing and reimbursement. All had been reviewed by General Counsel, HI

Deed of Easement and Vacation (Water) w/Willow Pond Associates dated 2-21-89 for USS Industrial Park, Section 5, Lots 47A & 48A

Deed of Easement and Vacation (Sewer) w/Willow Pond Associates dated 3-3-89 for USS Industrial Park, Section 5, Lots 47A & 48A

Onsite Water & Sewer Agreement w/Hooker Homes, Inc. dated 2-13-89 for Potomac Hunt, Section 2

Offsite Sewer Agreement (S-89) w/Inder Chawla, MD dated 3-27-89 for Sterling Retail Center

Offsite Water Agreement (W-41) w/lnder Chawla, MD dated 3-27-89 for Sterling Retail Center I Onsite Water and Sewer Agreement w/Hooker Homes, Inc. dated 2-13-89 for Potomac Hunt, Section 3

Onsite WaCer and Sewer AgreemenC w/Landstar Corp. dated 4-12-89 Transdulles Center, Parcel 20

Onsite Water and Sewer Agreement w/Landstar Corp. dated 4-9-89 for Transdulles Research, USS Industrial Park, Section 5

Onsite Water and Sewer Agreement w/Windson Development Corp. dated 3-16-89 for Mercure Business Park, Lot 4A - 8A2

Offsite Sewer Agreement w/Airport West Ltd. Partnership dated 4-11-89 for Airport West

Offsite Water Agreement w/Airport West Ltd. Partnership dated 4-11-89 for Airport West, W-42

7. The General Manager Informed the Authority that he had an oral" agreement with the Bell Atlantic Telephone Company for the base rent to allow Bell Atlantic to install mobile telephone antennae on the Authority's water storage tank in Sterling Park. He said the amount was $2,000 per month for the first five year period with options for two additional five year periods with rent increases to be based on the CPI index. He suggested that since I it could take as long as a year for Bell Atlantic to receive the required county special exception & permits the Authority should also require Bell Atlantic to pay one month's rent or $2,000 for an option. Should the option not be exercised by June 1, 1989 the base rent will be Increased by a similar increase based on the CPI index. After a short discussion it was the consensus of the members that it need not,.take any action since the General Manager had been authorized to negotiate a lease with Bell Atlantic at a previous meeting.

8. The General Manager reviewed the recent developments in the Town of Leesburg's application with the State Water Control Board to expand its wastewater treatment plant with effluent limits less than those contained in the Dulles Area Watershed Policy. He explained that the State Water Control Board had developed a draft discharge permit with a consent order that will allow Leesburg to expand and meet limits recommended by the Northern Virginia Planning District Commission Study of 1985. This will allow the Town to have a_phosphorus removal level of 1,0 to 1.2 mg/1 rather than 0.1 mg/1 and seasonal nitrification which will result in substantial savings to the Town. The Water Control Board will, however, require stream monitoring to assure that there is no water quality impacts as a result of this action. The full State Water Control Board will act on Chis draft permit at their June, 1989 meeting in Virginia Beach. Discussion then took place over how this action by the State Water Control Board will affect the Authority's plans to build an advanced wastewater treatment plant on Broad Run, Since it is in the Dulles Area Watershed any action taken by the I State Water Control Board will probably save the Authority money. It was the consensus of the members that the Authority should take a wait and see position since it wasn't in a position to apply for a discharge permit as of this date,

9. The General Manager Chen reviewed the status of the negotiations with the FCWA to arrive at a wholesale water purchase agreement. He said that he felt we had just about worked out all details and that a formal agreement could possibly be brought to the Authority for its consideration at its next meeting. 112

10. The General Manager reported that the Loudoun County Board of Supervisors had recently adopted the pretreatment ordinance which gives the Authority the responsibility and authority to identify, permit and monitor industrial discharges to the sanitary sewer system. The Deputy General Manager said that a recent questionnaire had identified 13 potential dischargers that will need Co be permitted and monitored. Mr, Falzone asked who will be doing the monitoring. Mr. Hammes responded that the discharger will be required to submit a regular report. AuChority staff will sample and test to confirm the accuracy of the submitted reports at the discharger's expense. The question of enforcement action was then raised. The Deputy General Manager responded that the first action would be to shut off the water. Since this was an illegal activity there would also be criminal penalties for continued I violations. 11. The General Manager said that with the approaching summer season he had asked Mr. John Fay to review the water restriction ordinance and procedures for requesting relief. Mr. Fay then reviewed the development of the Metropolitan Washington Water Supply Emergency Plan which was initiated by the Metropolitan Washington Council of Governments. This emergency plan led to a 1980 agreement which was signed by all Metropolitan Washington local governments and utilities, including the Loudoun County Sanitation Authority. This plan lists several stages of water shortages and recommended guidelines for each phase of the shortage. The guidelines were used by most metropolitan jurisdictions to adopt ordinances to implement the water storage plan. He then reviewed the procedures for requesting relief from the Loudoun County water shortage emergency mandatory restrictions, a copy of which had been provided to each member. It is clear from the ordinance and the procedures that final responsibility of determination of the imposition of restrictions and a waiver rests with the Loudoun CounCy Administrator./ S. ^ Mr. Fay said that the amendments to the ordinance adopted by the g ^ Loudoun County Board of Supervisors during late last summer gave the ^ > County Administrator the flexibility to grant waivers based on a ^ 5- number of mitigating factors. Mr. Black said that he hoped the ^ o County Administrator's goal will be to keep all businesses open as ^ ^ long as possible during water shortages, particularly if someone's ^ "^ I livelihood is affected.. The General Manager said that there was ^ ^^ a strong possibility mandatory odd/even restrictions will be required "^ [^ again this summer if rainfall is below average, "^ ft) on 12. Mr. Frye reviewed a budget adjustment made necessary by g= ^_ the recent bond issue. He passed out the budget adjustments dated ^ ^ February 28, 1989 for Che operating budget. Upon MOTION of Mr. ^ ^ Gheen, seconded by Mr. Falzone and with an unanimous vote of the ^^ ^ members present the Authority approved the requested budget adjustments.^^ P n 13. Mr, Madigan asked when the glossy financial statements \^' ^ would be available. Mr, Frye said that they were being printed now. ^ rt T3 14. The General Manager passed out two lists, one listing ° ^ projects under preliminary permit but not under final permit. These projects total 79 with an estimated construction cost of $11,190,898. The other list was for projects under construction that have not been placed under preliminary permit. These projects total 87 with an estimated construction cost of $12,753,767. He said that during the first three months of 1989 Chere have been 287 new connections to the Authority's water and sewer system and that if we continue at this rate it will amount to 1150 for the year. Therefore, we are ahead of the projected 800 used in the feasibility report for the bond issue. I 15. Mr. Gheen asked about the Gilberts Corner proposed development. The Deputy General Manager said that he was aware of an application for commercial development at Gilberts Corner. Should this development be approved it will be considered a public system and require Authority participation, however, we aren't involved at this point.

16. Mr. Falzone asked if Authority staff were providing technical assistance to the County on the Elklick Area Plan and the issue of 113

failing septic systems in that area. The General Manager responded that yes we were working closely with the Loudoun County Planning Staff in this matter.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Chairman ^ ' Secretary (J

Meeting, May 12, 19B9 I 1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, May 12, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H, Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, John Fay, Public Relations/Personnel Administrator, and Patricia W, Bigden, Secretary. Mr. Sean Adams of the Leesburg Today Newspaper arrived late.

3. The minutes of the meeting of April 14, 1989 having been previously presented were approved as presented and to be so recorded,

4. The Deputy General Manager reviewed the list of 12 agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that only the Onsite Water and Sewer Agreement with Kettler & Scott, Inc. dated May 4, 1989 for Springlake and the Offsite Sewer Agreement with Landstar Corporation dated April 19, 1989 for Transdulles Center contained oversizing reimbursement. The agreements are as follows: I Deed of Dedication, Subdivision, Easement and Vacation w/ Loudoun Gateway Ltd. Partnership for Loudoun Gateway, Phase I, Lots 20B - 20E

Onsite Water and Sewer Agreement w/TDC 5 Limited Partnership dated 4-2-89 for Servisystems

Onsite Water and Sewer Agreement w/Daniels/Huntingdon Ltd. Partnership dated 4-10-89 for Huntingdon^!

Onsite Water and Sewer Agreement w/Kettler h. Scott, Inc. dated 5-4-89 for Springlake

Onsite Water and Sewer Agreement w/Broad Run Office Center Associates Ltd. Partnership dated 5-2-89 for Broad Run Business Center, Phase I, Roadway & Utilities

Onsite Water and Sewer Agreement w/Airport West Ltd. Partnership dated 5-3-89 for Airport West, Phase I

Offsite Water Agreement w/Loudoun Woodland Road Joint Venture dated 4-28-89 for Woodland Road Public Improvements (W-40)

Offsite Sewer Agreement w/Landstar Corporation dated 4-19-89 I for Transdulles Center (S-91)

Offsite Sewer Agreement w/Loudoun Woodland Road Joint Venture dated 4-28-89 for Woodland Road Industrial Park (S-87)

Onsite Water and Sewer agreement w/Ashburn Village Joint Venture dated 5-5-89 for Ashburn Village Boulevard, Phase 4 113

failing septic systems in that area. The General Manager responded that yes we were working closely with the Loudoun County Planning Staff in this matter.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Ch'atrman '^ Secretary V

Meeting, Hay 12, 19-89 I 1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, May 12, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H, Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, John Fay, Public Relations/Personnel Administrator, and Patricia W. Bigden, Secretary. Mr. Sean Adams of the Leesburg Today Newspaper arrived late.

3. The minutes of the meeting of April 14, 1989 having been previously presented were approved as presented and to be so recorded.

4. The Deputy General Manager reviewed the list of 12 agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that only the Onsite Water and Sewer Agreement with Kettler & Scott, Inc. dated May 4, 1989 for Springlake and the Offsite Sewer Agreement with Landstar Corporation ^B dated April 19, 1989 for Transdulles Center contained oversizing ^^k reimbursement. The agreements are as follows: ^p

Deed of Dedication, Subdivision, Easement and Vacation w/ Loudoun Gateway Ltd. Partnership for Loudoun Gateway, Phase I, Lots 20B - 20E

Onsite Water and Sewer Agreement w/TDC 5 Limited Partnership dated 4-2-89 for Servisystems

Onsite Water and Sewer Agreement w/Daniels/Huntingdon Ltd. Partnership dated 4-10-89 for Huntingdon^I

Onsite Water and Sewer Agreement w/Kettler & Scott, Inc. dated 5-4-89 for Springlake

Onsite Water and Sewer Agreement w/Broad Run Office Center Associates Ltd. Partnership dated 5-2-89 for Broad Run Business Center, Phase I, Roadway & Utilities

Onsite Water and Sewer Agreement w/Alrport West Ltd, Partnership dated 5-3-89 for Airport West, Phase I

Offsite Water Agreement w/Loudoun Woodland Road Joint Venture dated 4-28-89 for Woodland Road Public Improvements (W-40) I Offsite Sewer Agreement w/Landstar Corporation dated 4-19-89 for Transdulles Center (S-91)

OffsiCe Sewer AgreemenC w/Loudoun Woodland Road Joint Venture dated 4-28-89 for Woodland Road Industrial Park (S-87)

Onsite Water and Sewer agreement w/Ashburn Village Joint Venture dated 5-5-89 for Ashburn Village Boulevard, Phase 4 114

Onsite Water and Sewer Agreement w/Sterling Park Safety Center, Inc. for Sterling Park Safety Center

Deed of Easement and Vacation (Sewer) dated 5-8-89 with Richmond American Homes for Ashburn Farm, Section 1, Block 3

5. The General Manager reported that with a couple of corrections in the Fairfax County Water Authority (FCWA).draft wholesale water purchase agreement he felt the document was in final form. He said that legal counsel had reviewed it. He said that the computed cost per million gallons of capacity was based on estimates for the construction of new facilities and the agreement provides for the final costs to be adjusted once the new facilities are completed. Therefore, the final cost per million gallons of capacity may vary somewhat. The I final agreement also calls for the purchase of 10 mgd of capacity with an option for an additional 10 mgd purchase in the early 1990's. He recommended that the Authority approve this agreement and authorize it to be sent to the FCWA for their consideration. Upon MOTION of Mr. Falzone, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority approved the agreement and authorized it to be forwarded to the FCWA. Mr. Gilchrist asked if the draft agreement had been reviewed by the FCWA Board. The General Manager responded that it had not, that it was only a staff approved document and could incur changes at the board level. Mr. Madigan asked if the Fairfax County Board of Supervisors needed to approve this agreement with the Water Authority. The General Manager responded that it wasn't legally necessary since that authority operates under the same statute as the Sanitation Authority.

6. Mr. Tim Coughlin, Authority Chief Engineer, reviewed the status of the Xerox Offsite Sewer. He said we are rapidly approaching a point where we can advertise the project for construction. The permits from the Virginia Marine Resources Commission and the Corps of Engineers for the crossing of Broad Run have been::received. The plans and specifications for the project have been sent to the State Health Department in Culpeper for approval which is expecCed within the month. The acquisition of easements is proceeding. I Tentative dates for public hearings before the Planning Commission and the Board of Supervisors are June 14 and early July, respectively. The tentative dates established for advertising bids is May 31, 1989, for opening of bids - June 29, 1989 and for starting construction - August 1, 1989. Mr. Madigan and Mr. Falzone both referred to recent newspaper articles dealing with the sewer passing through Broad Run Farms and asked whether or not we are anticipating any problems, Mr. Coughlin reported that Authority staff had met with citizens of Broad Run Farms Cwice in Che lasC couple of weeks and Chat the citizens appear to understand the conditions under which the sewer will be installed. Mr, Falzone asked how near the abandoned landfill the sewer will be installed. Mr, Coughlin responded that the sewer has been moved to a point 300' away from that area and that a clay barrier will be constructed along the sewer to prevent the migration of gases into and along the sewer trench. Mr. Gilchlrst asked if the Authority was securing the easements, Mr. Coughlin responded that we are. Mr. Gilchlrst asked if Xerox was putting up the total funds for the project. Mr. Coughlin responded that the partners of the Potomac Interceptor Partnership are financing the total cost of the project according to the PIP agreement. Mr. Gilchrist asked if the Board of Supervisors will object to the Authority receiving bids for the project prior to the 456 commission permit being approved. The General Manager responded that the County Planning Staff are aware of the time constraints and the proposed schedules of the project. Should any problem arise the notice to I proceed to construction could be delayed.

7. The General Manager reported that bids for the expansion of the Authority's office building are scheduled to be opened on May 17, 1989 at 2:00 p.m. Seven contractors have taken out plans which should ensure competitive bids. The General Manager pointed out that the Town of Leesburg has promised to provide comments on the site plan for the expansion by May 15, If approval from the Town is not forthcoming the beginning of the expansion could be delayed somewhat 115

8. Mr. Tim Coughlin reported on the status of the proposed sewage treatment plant to serve Pong's Trailer Court in the community of Lucketts. He said that Authority staff was serving as a technical resource to the County Attorney's office which is trying to assist Mr. Pong in dealing with the State Water Control Board. Mr. Pong has had a discharge permit since 1987, however, he has not begun construction of the plant. Recently he was unable to secure an easement from an adjacent property owner to install a discharge sewer from Che plant to Clark's Run. Mr. Coughlin said that the proposed plant will be an experimental one that needed special Health Department approval, Mr. Madigan asked if the Authority will be operating the plant. The General Manager responded that one of the conditions the Board of Supervisors placed on this application when they made no objection Co the issuance of the discharge permit was that the Sanitation Authority should be the operator of the Plant. Mr. Cornwell asked what it costs to operate the VICA plant. The General Manager responded that currently it was costing $1250 per month. Mr. Coughlin said that the estimated cost of the Pong's sewage I treatment plant was around $1800 per month.

9. The General Manager reported on a recent meeting with County officials and representatives of VICA concerning VICA's proposal to be allowed to own and operate its sewage treatment plant rather than the AuChority. Those in attendance were the Board of Supervisors member, Mrs. Betsey Brown, Planning Commission member, Mrs. Gladys Lewis, Mr, Gary Diehl of VICA, Authority staff and County Planning staff. After a lengthy discussion in which Mr. Diehl cited the reasons VICA was making this proposal, Mrs. Brown and Mrs. Lewis decided that it was not necessarily an economic decision that needed to be made but a planning policy decision. They indicated that this issue will be addressed by the Planning Commission and the Board of Supervisors when it considers the County's VISIONS for Western Loudoun County which contains proposed villages with package STP's and community well systems. Mr. Madigan asked if we will continue to operate the VICA plant. The General Manager responded Chat we will continue to do so until' County officials approve some other arrangement. The County's current policy is not to approve Individual or package sewage treatment plants except in situations where existing septic systems fail. This policy and other existing STP facilities in the County were then discussed in some detail.

10. The General Manager reported Chat to comply with the recent bond indenture it was necessary to establish an amount for the replacement reserve I account. He said the bond indenture allows an amount for this account to be established between 5% - 10% of accumulated depreciation. It is the recommendation of Mr. Robert Frye and Authority staff that this amount be set at the maximum 10% of 1988 accumulated depreciation or $973,475,00 and that it should be funded as soon as possible. This fund will be used to fund any and all capital expenditures, repair and maintenance expenses according to Section 7.8 of the master indenture. This approach will allow LCSA to use the maximum of $973,475.00 during 1989 to fund replacement of renewal items and in effect maximize cash available for LCSA use. The fund already contains $600,000+. The amount in the account is re-established and re-funded each budget consideration. Upon MOTION of Mr. Gheen, seconded by Mr. Thomas, and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that in accordance with the Master Indenture of Trust between LCSA and Sovran Bank, NA, as trustee, as described in the definiton for "Replacement Reserve Requirement", the Loudoun County Sanitation Authority hereby sets the replacement reserve requirement at 10% of the accumulated depreciation.

Mr. Cornwell asked if all municipalities established this type of account since Purcellville has stated that they do .not do this. Mr. Hammes reported that this type of fund was developed because in our bond structure we have an early redemption fund which after required obligations are met for all other accounts 25% of the surplus is used to retire bonds early. If this I fund had not been established then it's possible that funds would not have been available for certain replacement.

11. The General Manager reported that recently Mr. Ted Jackson, the Authority's Supervisor of Wastewater Treatment, received the prestigious William D. Hatfield award from the Virginia Water Pollution Control Federation, This award is given to operators of wastewater treatment plants who through their outstanding performance and professionalism deserve commendation. The award was established in honor of Dr. William D. Hatfield's years of service 116

in treatment plant operations. Dr. Hatfield was superintendent of the Decatur, Illinois Sanitary District. He was president of Central State Sewage Works Association 1944-45 and served as president of the Federation in 1958-59. Mr. Gilchlrst said to let the record show that the Authority noted with great satisfaction Mr. Jackson's achievemenC.

12* Mr. John Fay reporCed that in light of the Planning Commission and Board of Supervisors' hearings on Che Authority's proposed wastewater treatment facility on Broad Run it would be educational for citizens near the site and county officials to tour the UOSA Facility which is similar to the one the Authority will be constructing. He said he was arranging a tour with the UOSA officials for a time during the first part of June. Interested parties will be notified of the exact time. This will provide a first hand look at the operation of an advanced wastewater treatment I facility and the absence of any impact on the environment. 13. Mr. Falzone discussed a recent article in the Washington Post regarding proposed development along Route 50 in the Elklick Watershed. The General Manager reported that Mr, David Miller, one of the principals of the 50 South Group which is making the application met with Authority staff several weeks ago to review their proposal. Mr. Gilchrist asked if there had been any action on the Cub Run Subwatershed Area Plan. The General Manager responded that the Supervisors' Policy Development Committee was scheduled to consider the matter further at their May 22 meeting.

14. Upon MOTION of Mr. Falzone, seconded by Mr, Gilchrist, and with an unanimous vote of the members present the Authority voted to go into executive session under Code of Virginia, Section 2.1-344(a), Subsection 1, to discuss personnel matters.

15. Upon MOTION of Mr. Black, seconded by Mr. Gheen and with an unanimous vote of the members present the Authority voted to return to regular session.

16. Upon MOTION of Mr. Gheen, seconded by Mr. Falzone, and with an unanimous vote of the members present the Authority passed the following resolution:

I "BE IT RESOLVED, that the Authority hereby amends its 1989 Budget and appropriates funds and authorizes the recruitment and employment of a Director of Fiscal Operations and a Director of Operations and Maintenance."

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned. A halrman Secretary^

Meeting, June 9, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, June 9, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, and William J. Madigan, Jr., members of the Authority; Kenneth 0, I Shelton, General Manager-Treasurer, Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe, Tim Coughlin, Tony Dawood, and John Fay of the Authority's staff were also present along with members of the press.

3. The minutes of the meeting of May 12, 1989 having been previously presented were approved as presented and to be so recorded.

4. As the Chairman was preparing to appoint a nominating committee to nominate officers to serve the Authority beginning July 1, 1989, Mr. Gilchlrst moved that the current slate of officers be 65

17- There being no further business, upon MOTION duly made, seconded and carried the meeting adjourned.

I ChairmAi Secretary "

Meeting, June 10, 1988

1, A meeting of the Loudoun County Sanitation Authority I having been duly called was held on Friday, June 10, 1988 at 3:00 p,m. in the Board Room of the Loudoun County Sanitation Authority offices.

2, Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Robert K. Frye, Manager, Fiscal Operations, John W. Wailes, Personnel/Public Relations Coordinator, Patricia W. Bigden, Secretary, Tony Dawood, Engineer III, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Others present were Otto Mayr of the Loudoun Times Mirror and Mark Jeffries of the engineering firm of Huntley, Nyce and Associates.

3, The minutes of the regular meeting of May 13, 1988 having been previously presented were approved as presented and to be so recorded.

4, The Chairman stated that in accordance with the unwritten agreement that the Chairman and Vice Chairman not serve longer than 4 consecutive years it was time for the Authority to elect a new Chairman. He explained that Mr. Cornwell was eligible to be reelected Vice Chairman. Mr. Gheen nominated Mr. William J. Madigan, Jr, I for Chairman, Mr. J. Lynn Cornwell, Jr. for Vice-Chairman and Patricia W, Bigden for Secretary to serve the term from July 1, 1988 to June 30, 1989. There were no further nominations, therefore, upon MOTION of Mr, Falzone, seconded by Mr. Black and with an unanimous vote of the members present these officers were unanimously elected.

5, The General Manager said that with the election of new officers it was necessary for the Authority to adopt signatory resolutions authorizing banks to accept the signatures of the Chairman, Vice-Chairman, Secretary, General Manager/Treasurer, and Deputy General Manager to deposit and withdraw Authority funds. He explained that it was exactly the same as current bank signatory resolutions only the name of Mr. Madigan had been inserted in the place of Mr. Gilchrist. Upon MOTION of Mr, Gheen, seconded by Mr. Thomas and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that

1. The First American Bank of Viginia, Leesburg, Virginia, and the Sovran Bank, Leesburg, Virginia be and hereby are designated as depositories of the Loudoun County Sanitation Authority, and the following officers, agents and employees of this Corporation be and hereby I are, and each of them hereby is, authorized to deposit any of the funds of this Corporation in said Banks, said Banks are authorized to pay, cash or otherwise honor and charge to this Corporation any and all checks, notes, drafts, bills of exchange, acceptance, orders or other instruments for the payment of money or the withdrawal of funds, including those which may cause an overdraft, when signed, made, drawn, accepted or indorsed on behalf or the name of this Corporation by either the General Manager- 66

Treasurer or Deputy General Manager and the Chairman or Vice Chairman or the Secretary of the Authority. Except that all checks or other documents aforesaid in the amount of $1,000,00 or less shall require only the signature of the General Manager- Treasurer.

2. Said Banks are hereby authorized to pay, cash or otherwise honor or charge to this Corporation any such instrument and also to receive same for credit to the account of or in payment from the payee, indorsee, or any other holder thereof (Including any officer, agent, or signatory of this Corporation), without limitation of amount and without inquiry as to the circumstances of issue, negotiation or indorsement thereof or as to the disposition of the proceeds thereof, even if drawn, indorsed or payable to cash, bearer or the individual order of any signing officer, agent I or signatory, or other officer or agent, or tendered in payment of his individual obligation.

3. Any and all Instruments deposited by and on behalf of this Corporation with said Banks for credit, collection or otherwise, whether payable to or to the order of this Corporation or any officer or signatory of this Corporation, mayar,7 -r. •[.''.:^ •- •••- ' -;'• ' be indorsed;-..(by ..handwriting, • stamp'impression.-^--'-'--"r';- :'• -j :• .•" ; .: or by other means) by an officer or signatory of this Corporation acting alone, or by any other person authorized or purporting to be authorized so to do, with or without specifying the person who made, affixed or imprinted such indorsement or his authority so to do.

4. All of the foregoing authorities shall be and continue in full force and effect until revoked or modified by written notice actually received by said Banks at its office wherein the accounts of this Corporation are then maintained, setting forth a resolution to that effect stated to have been adopted by the Loudoun County Sanitation Authority and signed by one purporting to be the Secretary of this Corporation and bearing the purported seal of this Corporation, provided that such notice shall not be effective with respect to any exercise of said authorities prior to receipt thereof nor with respect to any checks or other instruments for payment of I money or withdrawal of funds dated on or prior to the date of such notice, but presented to the Banks after receipt of such notice and said Banks are hereby authorized at all times to rely upon the last notice, certificate or communication received by them, when so authenticated, as to any resolution of this Corporation or as Co persons who from time to time may be officers or signatories of this Corporation, or as to their respective specimen."; signatures and/or as to any other corporate matter, and said Banks shall be held harmless in such reliance, even though such resolution may be changed."

6. In the absence of Mr. Hammes, Deputy General Manager, Mr. Tony Dawood circulated a list of water and sewer agreements requiring Authority approval. He explained that all were standard Authority agreements and had been reviewed by General Counsel. They were:

Offsite Sewer Agreement with reimbursement (S-71), Loudoun Square, ESQ Ltd. Partnership

Onsite Water & Sewer Agreement w/reimbursement, Loudoun Square, LSQ Ltd. Partnership

Onsite Water & Sewer Agreement w/reimbursement, Concorde Phase 2 Sanitary Sewer Extension-Downs Park, Caldwell C. Kendrick I Onsite Water & Sewer Agreement, Concorde Center, Phase 3 with Concorde Associates I Ltd. Partnership

Onsite Water & Sewer Agreement, Countryside Manor, Robert R. DeLuca, Trustee

Onsite Water & Sewer Agreement, Woodstone, Section 2, Windson Development Corp. 67

Upon MOTION of Mr. Thomas, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority requested and directed the General Manager to execute Che agreements on behalf of the Authority.

In this regard the Chairman said that he had asked that a draft resolution be developed to allow the General Manager to routinely sign agreements on behalf of the Authority to speed up the process unless there is something unusual in a particular agreement which should be brought to the Board. The members were provided with a draft resolution which would accomplish what the Chairman had suggested. Following a discussion with Staff regarding the process by which water and sewer onsite and offsite agreements are negotiated, prepared and reviewed and upon MOTION of Mr, Cornwell, seconded by Mr. Gheen, and with an unanimous vote of I Che members present the following resolution was adopted: "BE IT RESOLVED, that the General Manager is hereby authorized to execute and bind the Authority to all water and sewer agreements which provide for developer or landowner construction onsite and/or construction offsite by or at the direction of the Authority;

BE IT FURTHER RESOLVED, that the General Manager likewise shall have the authority to execute Deed of Vacation and Releases which vacate or relocate easements no longer used or useful to the Authority,"

7. The General Manager said that since the countywide water supply study has been completed and accepted by the Authority it was necessary to have a water distribution system analysis done. This anlaysis would identify and locate the appropriate size of water transmission mains, storage requirements, and locations for future storage sites which will be needed as the remainder of eastern Loudoun County develops.. He circulated a proposal from Burns & McDonnell Engineering Company to accomplish this task. He said that the work would be under the Authority's 1976 general engineering agreement with Burns & McDonnell. He recommended that the Authority authorize the work. Upon MOTION of Mr, Graham, I seconded by Mr. Thomas, and with an unanimous vote of the members present the Authority approved having Burns & McDonnell develop the water distribution system analysis according to their proposal in an amount estimated to be between $41,000 - $45,000.

8. The General Manager reviewed the public hearing proceedings held by the State Water Control Board in the Board of Supervisors Meeting Room on June 7, 1988 at 7:00 p.m. to receive public comment on the Authority's application to discharge treated effluent from the Broad Run AWT Plant into Broad Run 10 miles above the FCWA intake. At present the State Water Control Board Dulles Area Watershed Policy requires a separation distance of 15 miles. He said that Mr. Gilchrist, the Chairman and Jack Hartigan, engineering consultant of Camp, Dresser & McKee had testified on behalf of the Authority's application. SupporC had been received from Che Fairfax County Water Authority, Fairfax County Board of Supervisors, Loudoun County Board of Supervisors, Virginia State Department of Health, the Northern Virginia Building Industry Association and others. Opposition was expressed from individual home owners in the Broad Run Farms community and an environmental attorney which had been engaged by the Broad Run Farms Citizens Association. He explained that although the public hearing had been adverCised Co receive only testimony dealing with the separation issue, testimony from the Authority and Town of Leesburg had been presented supporting other changes in the Dulles Area Watershed policy, Ms. Velma Smith, the hearing officer and a I member of the State Water Control Board, stated Chat the issue to be decided at the Water Contorl Board's June 27 and 28 meeting will deal with separation only. The remaining standards are a separate issue which will need to be addressed later. The attorney representing the Broad Run Citizens Association and Marion Agnew, an environmentalist, both suggested that land treatment be considered as a disposal alternative. This is a method of disposal which has been analyzed in great detail by the Northern Virginia Planning District Commission and the Town of Leesburg several years back. 68

Both concluded that soils in eastern Loudoun County were not conducive to this type of treatment.

9. The General Manager then reviewed a request from Mr. John Crowley for the Center for Innovative Technology to waive Che waCer and sewer availabiliCy charges for the CIT facility. Mr. Crowley explained that the CIT was a state created authority specifically for the purpose of coordinating research and development between private industry and the academic world. The General Manager said that the Authority's Rates, Rules and Regulations contained no provision to waive rates, fees, or charges for any entity, whether it be federal, state or local, and to his knowledge the Authority had never waived any. The General Manager than itemized the charges for the CIT under Che currenC raCe sCrucCure and under the proposed rate structure to be considered at the Authority's July 8, 1988 meeting. Under the current structure the total charges would amount to $88,590 and under I the proposed charges they would amount to $161,015, The General Manager explained that 85% of the availabiliCy charges would be reimbursed to the County under the loan agreement whereby the Loudoun County government is financing the cost of the extension of the water and sewer facilities to Che CIT. The General Manager explained that the water and sewer facilities on site at the CIT had been completed and tested and could be accepted and put under preliminary permit for use if the water and sewer extensions had been installed to the site. He said, therefore, the CIT could qualify for the currenC rate. He recommended that the Authority deny Mr. Crowley's request to waive fees, however, allow the CIT to pay at the current rate. Upon further discussion, and upon MOTION of Mr. Black, seconded by Mr. Thomas, and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the Authority hereby denies the request of CIT to waive water and sewer availability charges for the CIT, however, will only impose the current water and sewer availability charges."

10. The General Manager reported that Mr. Hammes and he had met with representatives of the Northern Virginia Builders Industry Association, Mr. Chris Brown and Mr, Frank Stearns, an attorney to explain how the proposed availability charges were developed. After some analysis by Mr. Brown and Mr, Stearns they had requested further information on how much has been collected over the past five years in availability charges and how this I amount had been spent. He said that this information had been provided to the builders industry association pursuant to their request. He said that the association had indicated a willingness to support the increases as long as they were satisfied that the revenue was earmarked and spent for appropriate facilities.

11. The General Manager called the Authority's attention to a copy of a memo he had passed out to each member dealing with conflict of interest reporting. The recent Virginia General Assembly had made some changes in the conflict of interest statutes requiring certain members and/or officers of public authorities and corporations to file financial statements. Mr. Franklin's associate had researched' the:new requirements- and had concluded that the members of the Authority and its officers were not required to file financial statements unless a member was involved in a business transaction with the Authority in which event that member could abstain in voting on any matters concerning ChaC Cransaction,

12. The Chairman questioned the status of the Xerox Offsite Sewer, Mr. Dawood explained that he had met with the engineers this morning and it appears that Christopher Consultants will ." , "": ; about half of the design in about two weeks and the remaining design will be completed by the end of July.

13. The Chairman asked whether or not the Authority had been successful in recruiting the engineer which had been approved at the last meeting. The I General Manager responded that yes, the Authority had been successful in the employment of Mr. Tim Coughlin who will probably report to work on August 1, 1988.

14. The Chairman reviewed his discussions with Mr. Rob Montgomery of the local health department in attempting to identify a potential drainfield site at the VICA facility. The General Manager said that Mr, Montgomery called him earlier today to report that staff had identified a potential site for a drainfield 69

He would communicate this in wricing shortly and that VICA will have to make the regular application for formal approval. He did bring to our attention, however, that should VICA elect to abandon the wastewater treatment plant and install a drainfield, the local health department will require that a legal limit be placed on the amount of use of the training facility. The possibility of the State Water Control Board revoking the discharge permit in the event VICA decided to stop using it was also discussed along with the potential requirement for advanced wastewater treatment in the event VICA expands its facility in the future and reapplies for a discharge permit. The Chairman suggested that when we receive Mr. Montgomery's letter we should meet with representatives of VICA to discuss all aspects of the issue,

I 15. The Chairman asked about the status of the acceptance of the wastewater treatment plant serving the Springwood Psychiatric Institute. The General Manager responded that the project has been completed except for an alarm system. The system has been installed but failed to operate properly. Springwood has delayed repairs because of their plans to expand the treatment facility.

16. The Chairman asked that for the next meeting a plan be prepared showing various segments of the major water and sewer construction schedule for the next several years, the estimated cost of each project and the recommended source of funding for each.

16. Upon MOTION of Mr. Black, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority voted to go into executive session under Section 3.1-344(a), subsecton 2 (Land Acquisition) of the Code of Virginia.

18. Upon MOTION of Mr. Gheen, seconded by Mr. Cornwell, and with an unanimous vote of the members present the Authority voted to return to regular session,

19. During the executive session the Authority received a status report on the progress in acquiring the site for the proposed I Broad Run AWT Plant. No action is required. 20. There being no further business, upon motion duly made, seconded and carried the meeting adj ourned.

uyk m Secretary irmany '

Minutes of Meeting of the Board of the Loudoun County Sanitation Authority for the Conduct of a Public Hearing Held July 8, 1988 at 2:30 p.m. in the Loudoun County Sanitation Authority Board Room

1. At 2:30 p.m. on July 8, 1988 a meeting of the Loudoun County Sanitation Authority was called to order by Mr. William J. Madigan, Jr., Chairman, for the purpose of conducting a public hearing regarding a change in sewer and water availability charges.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., I Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Robert K. Frye, Manager of Fiscal Operations, and John "W. Wailes, Public Relations/Personnel Coordinator. Mr. Otto Mayr of the Loudoun Times Mirror was also present.

3. Mr. Madigan read the following statement: 121

He then reviewed the Authority's policies, procedures and inspector training and supervision which is followed to minimize this possibility in Loudoun CounCy. Mr. Madigan suggested that this policy should probably become part of the Authority's personnel manual.

26. Mr. John Fay then reminded the Authority of the UOSA facility tour tomorrow morning, June 10, 1989 at 9:00 a.m. He then named the ones who have accepted the invitation and certain details of the tour.

27, Mr. Gilchrist asked about Lucketts Trailer Court, Mr. Coughlin reviewed the status of the proposal to install an experimental package wastewater treatment plant. He isn't sure the experimental technology will be approved and reviewed and implemented by the time constraints the Water Control. Board has placed on this existing facility.

28, The General Manager reported the Authority has received a signed I lease from Virginia Beef Corporation for its 352 acre Broad Run AWT site.

29. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Secretary

Meeting, July 14, 1989

1. A meeting of the Loudoun County SanitaCion Authority having been duly called was held on Friday, July 14, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K, Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia I W, Bigden, Secretary, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle h. Boothe. Messrs. John Wailes, John Fay and Tim Coughlin were also present, along with members of the press.

3. The minutes of the meeting of June 9, 1989 having been previously presented were approved as presented and to be so recorded.

4. The General Manager reported that the investigation of the apparent low bidder for the Authority's office building expansion. Keystone Builders, had proved to be very positive and, therefore, upon receiving the concurrence of the Chairman, Mr. Madigan, he had executed the contract for the expansion in the amount of $1,388,868. He said this amount is subject to change because of minor corrections in the final approved site plan dealing with the elimination of several tree wells. The contract completion date is January 16, 1990, or 190 calendar days from July 11. The contract includes a $250/day penalty for failure to complete on January 16, 1990. Upon MOTION of Mr. Gilchrist, seconded by Mr. Gheen and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the execution of the contract with Keystone Builders dated June 23, 1989 for the expansion of the Authority's Leesburg Administration Office Building in the amount of $1,388,868 is hereby ratified." 5. Mr. Dale Hammes reviewed a list of twelve agreements which had I been signed by the General Manager on behalf of the Authority since its last meeting. He explained that all were standard Authority agreements and only one. Woodland Road, contained reimbursement and that all had been reviewed by General Counsel, Those agreements are:

Deed of Easement and Vacation with Beaumeade AssociaCes for Beaumeade.

Onsite Water and Sewer Agreement dated 6-8-89 with Broad Run Office Center Associates Limited Partnership for Broad Run Business Center 122

Onsite Water and Sewer Agreement dated 6-14-89 with VC Properties, II for Concorde Industrial Park, Lot I3-A1

Onsite Water and Sewer Agreement dated 6-21-89 with Michael Harris Development, Inc. for Potomac Lakes, Section 7B

Onsite Water and Sewer Agreement dated 6-26-89 with Windson Development Corporation for Potomac Lakes, Section 2C

Onsite Water and Sewer Agreement dated 6-12-89 with Long Signature Homes, Inc. for Potomac Lakes, Section 4A

Onsite Water and Sewer Agreement dated 7-5-89 with The Milton Company for Potomac Lakes, Section 4B I Onsite Water and Sewer Agreement dated 7-7-89 with Loudoun Woodland Road Joint Venture for Woodland Road Industrial Park

Onsite Water and Sewer Agreement dated 5-19-89 with Huntmar Beaumeade I LimiCed Partnership for Huntmar at Beaumeade

Onsite Water and Sewer Agreement dated 6-30-89 with LSQ One Ltd. Partnership for National Association of Letter Carriers Building at Loudoun Square

Offsite WaCer Agreement dated 6-28-89 with Milton/Rockhill Ltd. Partnership for W-44, Milton/Rockhill Road Extension

Onsite Water and Sewer Agreement dated 7-5-89 with Long Signature Homes, Inc. for Potomac Lakes, Section 5B

6. The General Manager and General Counsel reviewed the following negotiations with the Fairfax County Water Authority of the Wholesale Water Purchase Agreement //2. The General Manager reported that the last major item resolved was the operational and maintenance costs of the water. The agreement originally called for the cost to be based on the amount of water sold rather than the amount of water produced by the Fairfax County Water Authority system. Since the Sanitation Authority is planning to obtain water at the Corbalis Treatment Plant I east of the Loudoun/Fairfax county line we felt it only fair to base the cost on water produced and not pay a portion of FCWA system water losses. This produced a substantial savings. Mr. Franklin said it was significant to note that this agreement will give the Authority the right to obtain 10 mgd of capacity virtually at once, •,•''•"'; r.. :.:- with_options; of; 10 mgd^which can ,ir.,c ; \-\ A •• -^ ••i':-;,.-. o.C .''.\ -.- .' ' " be exercised anytime after January 1, 1991, plus an additional 16.7 mgd option to purchase into the future for a total of 36.7 mgd. It is a long term agreement, it bonds Fairfax to plan for and make this capacity available to the Authority in increments as we need it. This is a significant milestone with this Authority and a major step towards a regional water supply for all of Northern Virginia tied to Fairfax County. The whole region is going to be getting the benefit of the economies of scale of a major supply facility. It's something in which the'"--Authority should take some pleasure. The Chairman congratulated and expressed the Authority's appreciation to the Authority's staff and General Counsel in working out the details of the water purchase agreement. After further discussion and upon MOTION of Mr. Gheen, seconded by Mr. Graham and with an unanimous vote of the members , present the following resolution was adopted:

"BE IT RESOLVED, that the Authority hereby approves the Fairfax County Water Authority Water Service Agreement #2 substantially in its present form subject to any minor I changes or review by staff and General Counsel." 7. The General Manager and Mr. Coughlin reviewed the bids received on June 29, 1989 to construct the Xerox Offsite PIP Sewer (S-61). There are four (4) segments of the sewer combined into two projects. There were nine (9) bids received on each project ranging from a low of $2,076,800 to a high of $3,082,000 on segments one and two and from a low of $2,532,497 to a high of $3,415,000 on segments three and four. The apparent low bidder on segments one and two which consists of the 42" sewer from the vicinity of Countryside Subdivision to the west side of Broad Run was the Yates Construction Company of Stokesdale, NC. The apparent low bidder for segments three and four which is from the west side of Broad Run up the Potomac River 123

onto Xerox property was the H. J. Schneider Company from Evans City, PA. The total bid of both apparent low bidders is $4,609,297, whereas, the engineer's estimate was above $7,000,000, Everyone involved with the development of this project is extremely pleased with the competitive prices received. Both apparent low bidders have been investigated and all reports were positive. Therefore, the General Manager recommended that the Authority award contracts to the two low bidders. Mr. Madigan asked if there had been a challenge to the Yates Construction Company's low bid for segments one and two. The General Manager replied that there had been a challenge on the form of the bid used by Yates. He said the Authority staff and General Counsel had determined that it was a minor irregularity and had concluded that the Authority could and should waive that irregularity. Mr. Madigan asked what was the amount of the next low bid for segments one and two. The General Manager responded that the next lowest bid was $313,000 higher. Mr, Gilchrist asked how staff accounted I for the large spread between the engineer's estimate and the apparent low bid. Mr. Coughlin reported that there were several factors which probably influenced this amount; the general opinion that the engineer's estimate going in was on the high side, the current market conditions, most bidders were from out of state and were large contractors looking for work, the weather conditions should be dry during late August, September and October, and four different pipe materials had been specified which created strong competition between the pipe manufacturers. Mr. Gilchrist asked if there was any unit pricing. The General Manager responded that there was none, that all prices were based on lump sums. Mr. Gilchrist asked if there had been any setasides for minority contractors. Mr. Franklin responded that since no Federal money was involved there is no legal requirement to include such a requirement. Upon MOTION of Mr. Gilchrist, seconded by Mr. Cornwall, and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the Authority hereby awards Contract S-61 Potomac Interceptor Extension, Segments One and Two, to the Yates Construction Company in the amount of $2,076,800 and Contract S-61, Potomac Interceptor Extension, Segments Three and Four to the H. J. Schneider Construction, Inc. in the amount of $2,532,497."

8. Mr. Madigan explained that recently several waCer softener and filCer companies had been contacting Authority customers and citizens in I the regiori attempting to sell water softening and filtering devices. Some have implied that the quality of the Authority's water is not what it should be, The General Manager reported on a visit he had received from a represeritative of a Manassas company attempting to sell a complete home treatment system. He said the representative had been careful not to suggest that the water was unsafe but tried to convince him that the system would save a substantial amount of soap and detergent costs. Mr. Fay said that at a recent AWWA National Conference he attended a seminar on this subject. Apparently this problem is a national problem and the marketing tactics can range froTti unethical to illegal. He described the approach that many other utilities were taking to educate its customers of the high quality of their water. He said that he had discussed this matter with the Loudoun County attorney and had been advised that they were aware of Che efforts of these companies, however, they could not become involved until and unless charges were brought against them for any violation of county or state law, Mr, Fay Chen reviewed a draft of a bill stuffer we will start mailing with Che Authority's water and sewer statements as soon as it can be printed. It was the consensus of the members that this was the best approach to take regarding this matter at this time.

9. The General Manager reported that the Authority's Broad Run AWT Site Commission Permit and Special Exception application which had been approved by the Loudoun County Planning Commission several weeks ago had been scheduled,to be considered by the Loudoun County Board of Supervisors on Monday night, July 10, 1989. It was brought to his attention that a question I had been raised whether or not the Authority had met statutory requirements in notifying adjacent property owners of the date and time of the public hearing. He said rather than secure waivers from the four adjacent property owners and to comply with the spirit of the law as well as the letter of the law he had withdrawn the application. We will resubmit it in the very near future and comply with all statutory requirements. He said that when the Planning Commission considered the matter at their meeting only one citizen spoke on the application. He said that at the July 10 public hearing, Mrs- 124

Tatum, Chairman of the Board of Supervisors, had been misadvised on which application had been withdrawn and stated that the Potomac InCercepCor Extension, PIP Sewer application had been withdrawn. Although she had been corrected rather quickly the County Attorney ruled that the public hearing on the PIP Sewer application must be continued until July 18. Proper notice of this action has been mailed by certified mail to all affected property owners along the route of the sewer.

10. Mr. Franklin, General Counsel, explained the changes to the Virginia Freedom of Information Act which became effective July 1, 1989. He said that the spirit and letter of the Act require work of chis Authority as a public body to be conducted in an open session available to the public with some very limited exceptions. I Closed sessions or executive sessions can be undertaken only for limited consideration of specific employment related matters, land acquisition of real property for public purposes, or consultation with legal counsel, staff and advisors related to either actual or probable litigation or other specific legal matters. Another feature of the change is that once a motion has been made properly to go into executive session you are further required to limit your business and discussion of matters to the specific items which properly got you into the executive session and that when you leave executive session to take formal action you have to certify that in the executive session you only considered such matters as were proper and within the framework of the motion. The General Manager asked General Counsel whether or not the changes also reduced the time to respond to requests for information under the act from 14 to 5 days. Mr. Franklin responded yes that it did.

11. The General Manager responded that the Board of Supervisors still has not acted on the Dulles South Cub Run Area Land Management Plan. Consideration has been delayed until September. Mr. Coughlin reported that the Authority's consultant will be submitting a preliminary engineering report soon to the Authority on the Cub Run Pumpover project. We have tentatively scheduled formal presentation of the report to the Authority at its September meeting, Mr. Madigan asked if everyone at the County level was aware of the Authority's I lead time on this project. The General Manager responded that yes they were.

12. Mr. Coughlin explained that Chere had been no change in Che sCatus of the proposed package sewage treatment plant to serve the Lucketts Trailer Court since the Authority's last meeting. Mr. Pong is still trying to negotiate an easement across the adjacent property for the outfall sewer. The AuChority continues to serve as a technical resource to the County on this matter,

13. The General Manager reported that the Waterford Huntley Subdivision community well system application was on the Board of Supervisors' Public Hearing agenda Monday night, July 10, 1989. He said a number of speakers from the Community of Waterford spoke against the application. Concerns voiced by those speakers include that the system if approved should be self-supporting financially, wells should not deplete adjacent wells in.the community, and that they felt the Virginia Historic Landmarks Commission still had review and approval authority under the 1974 EPA agreement discussed at the Authority's last meeting. He said that Mr, Larr Kelly, Assistant County Attorney, also interpreted the 1974 agreement as the Authority and its General Counsel do, that is that it expired upon the completion of the original Waterford Sewerage System. Mr, Gilchlrst asked if there had been any proposal to have the community well system serve present homeowners. The General Manager responded that there had not although I he had just received a letter from an adjacent property owner requesting service. He said this request will be placed on the Authority's next meeting agenda for consideration. Mr. Gilchrist asked if we have geological reports on the probable effects of these new wells on the existing wells in Waterford. Mr. Hammes responded that we do have a hydrogeological study which is now under review. This assesses any influence on wells of the surrounding area. 125

14. Mr. Hammes reported that we have received preliminary design plans and specifications for the repump station to be constructed at the Sterling water standpipe. They are currently under review. The next step is to submit them to the State Department of Health for review and approval. The Authority proposes to purchase the major equipment thereby saving sales taxes and solicit bids for a contractor to install. The project should be completed late fall of this year,

15. Mr. Coughlin reported that we now have a preliminary design report from Burns & McDonnell Engineering Company for the elevated storage tank on Route 659. The developer of the Broadlands Subdivision has donated the 5 acre site at no cost and will contribute to the cost of the 30" water transmission main from the tank site down to Ashburn Boulevard along Route 659, a distance of approximately 6,000', We now have an agreement on that project with the developer. We are proceeding with the geotechnical investi­ I gation of the site. Once completed within the next two or three weeks this information will be furnished to Burns & McDonnell Engineering Co, who then will proceed to final design. The plans will then be submitted to the State Department of Health for review and approval. It is expected that we will be prepared to advertise for construction bids at the end of this year or early next year with about a year needed to construct the project.

16. Mr. Madigan said that we are approaching the time of the year when the Authority needs to review its rates, fees and charges. The General Manager said that he and the Chairman had been discussing this matter over the last several months and that he had recently received a proposal from Burns & McDonnell to review and update its water and sewer availability charge and user rate studies. He said it was obvious that availability charges needed to be Increased because of the increased cost of construction, the cost of the Broad Run AWT site exceeding the projected cost included in the last computation of the sewer availabilty charges and a refinement of the Authority's capital Improvements program. He also said that the feasibility study for the $40 million bond issue used a projection of 800 new connections per year in the revenue projections. He said we now are running at a 1300 to 1400 new connections per year level. This additional revenue could possibly lower the projected user rate increase for 1990. He, therefore, recommended.that the Authority accept Burns & McDonnell's proposal to review these rates based on the latest information at a cost of $13,800. The study will be completed within 1-1/2 months from authorization or upon receipt of the June finanlcal I figures. These new rate recommendations need to be received, reviewed and advertised sufficiently in advance for possible adoption effective January 1, 1990. Upon MOTION of Mr. Falzone, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority approved the proposal and scope of work for financial plans/bond covenant review dated July 12, 1989 from Burns & McDonnell Engineering Co. in the amount of $13,800,

17. The General Manager explained that the Authority had received permission several years ago from the District of Columbia to dump up to 7,000 gpd of septage into the Authority's sewage system tributary to the Blue Plains Sewage Treatment Plant. Currently only one hauler is licensed to collect and dump septage into the Authority's sewer system. He said he recently received a request from Don's Johns of Chantilly for a dump site in Loudoun County. He said that after giving this careful consideration he would recommend that the Authority deny this request for several reasons. First, the capacity is limited to 7,000 per day which is being utilized by Conover on many days. Secondly, Don's Johns pumps sewage and other debris including bottles, bricks, rocks, boards, etc. from their units and the Authority's dump site is not equipped with screens or communitors to handle this type of debris. After a short discussion, and upon MOTION of Mr. Gilchrist, seconded by Mr, Gheen, and with an unanimous vote the request from Don's Johns of Chantilly for a dump site in the Authority's sewage system was denied for the reasons cited by the General Manager.

18. Mr. Madigan congratulated and commended Mr. Gheen for his long standing efforts and service on behalf of the Authority and the community in general I which were also recently recognized by an editorial in the Leesburg Today newspaper,

19. Mr. Gilchrist asked if the Authority was going to get into a pump and haul situation at the Xerox Landsdowne development. The General Manager responded that there was a slight possibility if the PIP sewer could not be completed on time next year.

20. Upon MOTION of Mr, Graham, seconded by Mr. Thomas, and with all members voting aye,,the Authority voted to go into executive session under Section 2.1-344 (A) , Subsection 1 of the Code of Virginia for Che purpose of considering employmenC related matters. 126

21. Upon MOTION of Mr. Cornwell, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority voted to return to regular session.

22. Upon MOTION duly made, seconded and carried the following resolution was adopted:

"WHEREAS, the Loudoun County Sanitation Authority has convened an executive meeting on this date pursuant to an affirmative record vote and in accordance with the provisions of the Virginia Freedom of Information Act; and

WHEREAS, SS 2.1-344.1 of the Code of Virginia requires a certification by the Loudoun County Sanitation Authority that I such executive meeting was conducted in conformity with Virginia Law;

NOW, THEREFORE, BE IT RESOLVED, that the Loudoun County Sanitation Authority hereby certifies, to the best of each member's know­ ledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting .to which this certification resolution applies, and (11) only such public business matters as were identified in the motion convening the executive meeting were heard, discussed or considered by the Loudoun County Sanitation Authority."

23. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

u Secretary/ Ch irma

I Meeting, August 11, 1989 1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, August 11, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices,

2. Those present were Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J, Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager- Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Wailes, John Fay and Tim Coughlin and Ms. Leslie Griffith, Authority staff, along with members of the press, were also present.

3. The minutes of the meeting of July 14, 1989 having been previously presented were approved as presented and to be so recorded.

4. Mr. Dale Hammes reviewed a list of 13 agreemenCs which had been signed by Che General Manager on behalf of the Authority since its last meeting. He explained that all were standard Authority agreements and had been reviewed by General Counsel. Those agreements are:

Onsite Water and Sewer Agreement w/VanMetre Venture dated I 8/9/89 for Cascades, Phase I, Section 2B Onsite WaCer and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Cascades, Section 4B

Onsite Water and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Potomac Lakes, Section 4C

Onsite Water and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Potomac Lakes, Section 2B 126

21. Upon MOTION of Mr, Cornwell, seconded by Mr. Graham, and with an unanimous vote of Che members presenC Che AuChority voCed to return to regular session.

22. Upon MOTION duly made, seconded and carried the following resolution was adopted:

"WHEREAS, the Loudoun County Sanitation Authority has convened an executive meeting on this date pursuant to an affirmative record vote and in accordance with the provisions of the Virginia Freedom of Information Act; and

WHEREAS, SS 2.1-344.1 of the Code of Virginia requires a certification by the Loudoun County Sanitation Authority that such executive meeting was conducted in conformity with I Virginia Law;

NOW, THEREFORE, BE IT RESOLVED, that the Loudoun County Sanitation Authority hereby certifies, to the best of each member's know­ ledge, (1) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification resolution applies, and (11) only such public business matters as were identified in the motion convening the executive meeting were heard, discussed or considered by the Loudoun County Sanitation Authority."

23. There being no further business, upon motion duly made, seconded and carried the meeting adjourned. jil Chairma Secretary/

I Meeting, August 11, 1989 1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, August 11, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2, Those present were Michael J, Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager- Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Wailes, John Fay and Tim Coughlin and Ms. Leslie Griffith, Authority staff, along with members of the press, were also present,

3. The minutes of the meeting of July 14, 1989 having been previously presented were approved as presented and to be so recorded,

4, Mr. Dale Hammes reviewed a list of 13 agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that all were standard Authority agreements and had been reviewed by General Counsel. Those agreements are:

Onsite Water and Sewer Agreement w/VanMetre Venture dated I 8/9/89 for Cascades, Phase I, Section 2B Onsite Water and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Cascades, Section 4B

Onsite Water and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Potomac Lakes, Section 4C

Onsite Water and Sewer Agreement w/NV Homes Limited Partnership dated 7/14/89 for Potomac Lakes, Section 2B 127

Onsite Water and Sewer Agreement w/Rlvermead Homes, Inc. dated 8/10/89 for Potomac Lakes, Section 5D

Onsite Water and Sewer Agreement w/Drewer Development Corp. dated 7/21/89 for Potomac Lakes, Section 5E

Onsite Water and Sewer Agreement w/VanMetre Venture dated 8/9/89 for Potomac Lakes, Section 6B

Onsite Water and Sewer Agreement w/Senate Construction Corp. dated 7/26/89 for Potomac Lakes, Section 6D

Onsite Water and Sewer Agreement w/Beaumeade Circle Ltd, Partnership dated 8/2/89 for Parkway Center at Beaumeade I Onsite Water and Sewer Agreement w/Winchester/Laing Beaumeade Associates dated 8/8/89 for Winchester at Beaumeade

Onsite Water and Sewer Agreement w/Landstar Corporation dated 8/4/89 for Enterprise Center II

Onsite Water and Sewer Agreement w/Falcon Enterprises, Inc. dated 7/21/89 for Oakbrook Commerce Center IV

Onsite Sewer Agreement w/Kettler & Scott, Inc, dated 7/26/89 for Potomac Terrace, Section 1 Sanitary Sewer Outfall

5. The General Manager introduced Ms. Leslie Griffith, the Authority's Director of Fiscal Operations. Ms, Griffith started employment with the Authority on August 7, 1989.

6. The General Manager reviewed Mr. Michael Cody's July 11, 1989 letter requesting the right to contract to purchase any surplus water that might be available from the community well system when the Huntley Subdivision is developed in the Community of Waterford. Mr. Cody explained that he and Patrick Cody are owners of two lots across the street from the proposed subdivision. He stated that it was his understanding that the wells on the Huntley site could provide water for 20 single family units and that only 18 are proposed for the Huntley Subdivision. He, therefore, was proposing I to contract for the right to pruchase any available surplus water for his two lots. Mr. Hammes explained that Burns & McDonnell Engineering Company was still reviewing a hydrogeologic study of the wells on the Huntley site to confirm the amount of available water. He said that Burns & McDonnell Engineering Company had requested additional information related to the recharge rate of the groundwater system from the consultant working for this developer. The issue of whether or not the Authority should entertain this type of request at this point in time was then discussed. The impact on surrounding wells, the availability of surplus water in the event of diminishing yields, and the fact that the Board of Supervisors had only approved the community well system for the Huntley Subdivision led the members of the Authority to conclude that it was premature to entertain this request at the present time. It was the consensus of Che Authority that these types of issues need to be resolved by the time the Authority enters into its first agreement to develop, operate, and maintain a community well system for any of the proposed villages in Western Loudoun.

7. The General Manager reported that the Authority now has a completely executed wholesale water purchase agreement with the Fairfax County Water Authority and that the first month's payment has already been made. The Chairman again expressed appreciation to Authority staff and General Counsel in consummating this agreement.

8. The General Manager and Deputy General Manager reviewed their recommendation that the Authority enter into a contract with the Phoenix Construction Co. to install I approximately 1100' of 36" water transmission main across the Woodstone Subdivision in eastern Loudoun County. They explained that this is a segment of Contract W-33 (FCWA - Route 7 Water Supply Main) which is required to be completed to obtain the water from the Corbalis Water Treatment Plant in Fairfax County, They explained it was urgent to have this pipe line installed since the Woodstone development is being rapidly completed. The easement has been offered free of charge to the Authority provided the pipeline can be installed prior to restoration. Mr. Hammes 128

explained the competitive negotiation with several contractors to arrive at the proposal by Phoenix to install the pipe for $76,223,35. He then explained securing bids from pipe manufacturers including the successful bid of U.S. Pipe Company for $69,143.46. A discussion on how these activities met the competitive negotiation provisions of the public procurement act was then held. After further discussion and upon MOTION of Mr. Gilchrist, seconded by Mr. Graham and with an unanimous vote of the members present the Authority passed the following resolution:

"BE IT RESOLVED, that the General Manager is hereby authorized to enter into a contract with the low bidder, at a price not to exceed the bid of Phoenix Construction Co., Inc. in the amount of $76,223,35, to install 1100' of 36" water transmission main I (a portion of Contract W-33 - FCWA - Route 7 Water Supply Main); BE IT FURTHER RESOLVED, that the General Manager is hereby authorized to purchase approximately 1100' of 36" ductile iron water pipe from U.S. Pipe Company for $69,143.46;

BE IT FURTHER RESOLVED, that the contract and purchase of pipe are subject to approval of General Counsel and conformance with the Virginia Public Procurement Act."

9. The General Manager reported that construction of the Xerox Offsite Sewer (S~61) was expected to begin around September 1, He explained that a preconstruction meeting had been held with H. J. Schneider Company of Evans City, PA, the successful low bidder for Che portion of the sewer extending from Broad Run unto Xerox property, A preconstruction meeting will be held with the Yates Construction ffi Company of Stokesvllle, NC next week. The Yates Construction Company was the successful low bidder for the portion of the sewer between i^ Countryside and Broad Run. ct. rt 10. The General Manager explained that the Authority has received tu a preliminary engineering design report from Camp Dresser & ^cKee on the proposed Dulles South Cub Run pumpover to Broad Run./ He said H that the consultant's presentation to the Authority will be scheduled I for its September, 1989 meeting. Mr. Gilchrist questioned the status of no the Board of Supervisors approval of the Cub Run Area Plan, The General cw Manager responded that it was his information that they still intended M to act on it during the month of September. The General Manager then P informed the Authority of a recent rezoning proposal he had received o a copy of. The subdivision's name, Greenfield, is proposed for the second watershed west of Cub Run in Foley Branch. It consists of 3" approximately 2200 acres with approximaCely 4900 dwelling units and 2 million square feet of retail office and industrial space. The c County Planning staff accepted this rezoning proposal even though la­ this area is currently in the rural area. There is no area plan •-( underway for this watershed similar to the Cub Run Area. rt en 11, The General Manager reported that Authority staff and Burns en & McDonnell Engineering Company were actively working on the review rt of the Authority's Rates, Fees and Charges as authorized by the Authority ^ at its last meeting. He said the consultant will be reviewing the user rates and water and sewer availability charges. Eliminating ^ the minimum charge, and accessing the impact of a winter and summer rate will be analyzed in detail, Mr. Falzone asked if staff was c considering any seasonal impact fees similar to those of Virginia "^ Power. The General Manager responded that if after a review of the » analysis it appeared worthy of consideration it would be brought to M the Authority for consideration. Mr. Gilchrist suggested that Authority staff revisit the Impact of having the Waterford Sewerage System be re self-sustaining financially, particularly since the Board of Supervisors H I has defined the sewer service limits around the community. He suggested S this was different from St. Louis since there were no prescribed limits 3 00 around that community at present. 12, The General Manager reported that the Authority's administration fii building expansion was progressing on schedule. It is expected that n the concrete slab will be poured next week. The delivery of the columns *-*^ and steel joists have been delayed until September 5. The contractor is still confident that the building will be completed by the end of n> the year, o 129

13. The General Manager reported that nothing significant has happened since the last meeting regarding the sewage treatment issue for the Lucketts Trailer Court. He said that Tim Coughlin of the Authority's staff prepared an estimated cost of temporary pump and haul for the Assistant County Attorney. The infrastructure including two 9,000 gallon concrete storage tanks and installation costs would amount to approximately $51,000, The pumping and hauling costs for an estimated 3,000 gpd of sewage generated would amount to approximately $200 per day. This includes a $20 per load disposal cost to the Authority. This compares to a cost of approximately $80,000 to install a package sewage treatment plant to serve the trailer court. The General Manager reported that Mrs. Betsey Brown, Board of Supervisor member representing this area, has written to Mr. Pong trailer court owner, on two occasions urging him to itensify his efforts to resolve the sewage treatment issue.

14. The General Manager reported that the revised schedule for the Loudoun County Planning Commission to consider the Broad Run AWT application I is September 13, 1989. October 9, 1989 is the tentative date for the Loudoun County Board of Supervisors to consider it.

15. Mr. Hammes reported that we have most of the material from the consultant on the design, plans and specifications for the repump station at Che SCerling WaCer Standpipe. He said that we have found out that we need to apply for site plan approval.

16. Mr. Hammes reported on the relocation of the water facilities along the Route 28 construction project. He said that a substantial amount of the new facilities have been installed, however, the old facilities have not been abandoned. He said the interconnections between the new and existing facilities is scheduled to be made this fall without affecting service to Authority customers.

17. The General Manager presented a list of uncollectible liens which had been filed over the last eight to ten years. He explained that two had been Incorrectly filed and the others had been voided by foreclosures on the properties. He explained that this was an accounting housecleaning matter. Upon MOTION of Mr. Gheen, seconded by Mr. Thomas, and with an unanimous vote of the members present the following uncollectible accounts are hereby written off.

Lien Date Account # Customer/Owner Period of Service I Amount

8/4/87 Z0100G306A Kent 4/8/86 - 8/26/86 $ 67.38 7/22/82 Z01000342A Dixon/Sweilem 3/4/82 - 5/3/82 31.75 12/21/78 Z05000152A Boyce/Taylor 4/11/78 - 9/1/78 59.81 7/6/78 Z05500542A Ait 1/11/78 - 5/26/78 48.78 7/22/82 Z05500620A Rahnama 1/20/82 - 3/8/82 20.09 1/22/82 Z09002426A Repass/Lawson 4/22/81 - 9/8/81 71,50 12/16/80 Z12000041A Vatistas 4/22/80 - 7/30/80 108.27 10/18/71 Z16001799A Schon 4/29/71 - 7/29/71 17.45 4/21/87 Z16001894B VanNess/Bartkoski 5/9/86 - 6/9/86 77.47 10/22/82 Z17000165A Hackett 2/4/82 - 6/21/82 67.19 4/26/76 Z17000171A LaRusso 11/25/75 - 4/12/76 19.67 9/10/80 Z17000273A Myer 4/29/80 - 6/4/80 29.42 8/30/79 Z25000090A Barnes/Behrens 12/13/78 - 5/7/79 83.08 7/11/79 Z27000355A Beresford 2/6/79 - 6/29/79 44.93 7/11/74 Z29000155A Luck 2/19/74 - 4/30/74 26.90 2/1/79 Z29000178A Pack/Bennett 5/10/78 - 11/21/78 116.20 9/2/77 Z29000189A Lemnah 5/11/77 - 8/29/77 59.00 9/2/77 Z2900Q189B Lemnah 5/11/77 - 8/29/77 33.42 5/10/89 Z32000052B Roberts/Laing 2/14/89 - 3/14/89 109.80 11/5/86 Z39002200A Medallion Indust 5/27/86 - 10/20/86 104.85 10/6/78 Z49002676A Whitaker 3/7/78 ~ 5/30/78 20.85 11/5/79: Z49002712A King 7/13/79 - 10/29/79 38.06 2/19/76 Z50002064A Domico 9/5/75 - 11/24/75 26.90 I 5/26/81 Z50002253A Johnson 9/10/80 - 2/2/81 53.70 2/10/84 Z50002278B Pearson/Behrens 6/15/83 - 11/7/83 42,13 2/18/83 Z63000647A Kulp 6/23/82 - 11/8/82 102.15 10/13/83 Z63000662A McCauley/Sherman 3/23/83 r 6/13/83 44,85 5/26/76 Z64000031A Ledford 12/12/75 - 5/17/76 53.52 11/2/84 Z65000151A Burke 1/3/79 - 5/4/79 55.65 7/1/82 Z65000212A Middleton/Sutphin 10/6/81 - 3/22/82 53.96

Total - 30 $1,688,73 130

18. The General Manager reviewed the status of the pretreatment program as described in a memo from Ms, Judy Rowe to Mr. Dale Hammes, He explained that the pretreatment of wastewater agreement between the Loudoun County Sanitation Authority, County of Loudoun and the District of Columbia had been signed by the Authority and Loudoun County on May 30, 1989. Although the District of Columbia has not signed, the program is being implemented. Authority staff have performed Inspections of the 15 potential Industrial user facilities previously identified. The results of these inspections and the applications are being analyzed. It appears that approximately seven will need to be permitted. It is expected that the District of Columbia will sign the agreement soon,

19. The General Manager directed the Authority's attention to its six months' financial statement. He said it's interesting to I note that even after considering depreciation the Authority's assets now total over $106 million.

20. The General Manager reported on a break in the City of Fairfax's 24" transmission main on July 18, 1989, He explained that a contractor had drilled a hole through the 24" main just west of Ashburn. Because of the fact that the City of Fairfax had not repaired two main line valves in this transmission main during the last threei- years it was necessary to shut down the Authority's entire system during repairs. The subdivision of Ashburn Farms had no water and the rest of the Authority's systeml-had'.reduced I'pressure during the 18+ hours of repairs. He explained that during repairs, he had convinced City officials to install a 24" main valve. He circulated a leCter of apology from the William A. Hazel Company whose workmen had drilled through the pipe. He explained that the Authority had rented milk trucks to deliver potable water to residents of Ashburn Farms during the emergency. William A. Hazel Co. had prepared under the Authority's supervision a notice of the emergency and had delivered it door to door within the community. Mr. Fay explained the arrangements he made with Che media and others to inform the Authority's customers of the emergency and secure their cooperation during the repairs. Wire services, local media, newspaper, radio and TV stations were informed. Because of the excellent cooperation I of the Authority's customers during the emergency the water level in the Authority's standpipe on Circle drive in Sterling Park never dropped below 59'. The interconnections with the Fairfax County Water Authority were opened and the FCWA boosted its pressure in the area to assist the Authority during this time. Mr. Falzone and others commended Mr. John Fay and the Authority staff in the way the emergency was handled particularly the way it was communicated to the Authority's customers, Mr. Madigan questioned the ability of the water system to meet its growing demands. Mr. Hammes responded Chat because of regular periodic rainfall this spring and summer there had been no problems. The problem last summer was caused by prolonged drought and heat.

21. Mr. Gilchrist asked about the status of the Authority's proposed field office or maintenance facility in Eastern Loudoun. The General Manager responded that upon the receipt of the Commission Permit and Special Exception for the Broad Run AWT site from the County Planning Commission and Board of Supervisors, Authority planning efforts would be accelerated.

22. The General Manager reviewed the contents of a letter from Mrs. Betty Tatum, Chairman of the Loudoun County Board of Supervisors seeking assistance and advice from the Authority in making sewer service more available to the citizens of Broad Run Farms and Potomac Farms communities. In her letter she asked that the Authority consider waiving sewer connection fees which the Authority cannot do. The General Manager said that Authority staff had provided most of the I requested information to the Health Department and to the Board of Supervisors earlier but would follow up with a comprehensive response to her letter.

23. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Chairman'^^ V Secretary 131

Meeting, September 8, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, September 8, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H, Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs, John Fay and Tim Coughlin and Ms. Leslie Griffith of the Authority staff and members of the press were also present. 3. The minutes of the meeting of August 11, 1989 having been previously I presented were approved as presented and to be so recorded.

4. The General Manager introduced Mr. David Schwartz of Camp Dresser & McKee, the engineering firm engaged to develop the Cub Run preliminary engineering design study. Mr. Schwartz, Project Manager for the Cub Run Pumpover project, introduced his associates, Mr, Bob Klinger, CDM's Office Technical Director, and Mr. Andy Landrom, Chief Design Engineer for the gravity sewer portion of the project. Mr. Schwartz said that the preliminary design report consisted of four parts: (1) a letter report addressing collection and conveyance alternatives of wastewater in Occoquan Watershed of Loudoun, (2) pumping station in Cub Run, (3) Broad Run gravity sewer and (4) Potomac Interceptor assessment covering evaluation of the portion of the Potomac Interceptor affected by the project. He said that this study is a refinement of the earlier 1986 study which addressed the wastewater management alternatives for the entire Occoquan Watershed in Loudoun County. That study recommended an arrangement consisting of pumping out of each subwatershed, ultimately to the Cub Run Watershed for pumpage into the Broad Run Watershed for gravity conveyance to the Potomac Interceptor Sewer and ultimately to the Authority's proposed Broad Run AWT plant. This study has determined that Cub Run will be served independently from the other subwatersheds. Service to Cub Run is composed of the Cub Run Gravity Sewer, the Cub Run Pumping Station, the Cub Run Force Main and the Upper Broad Run Gravity Interceptor which will in the future handle flows pumped from Elklick Run Subwatershed. The lower portions of Upper Broad Run Interceptor will also handle flows from the Upper Broad Run Watershed. The I proposed Cub Run Pumping Station is located north of Route 50 just Inside the Loudoun county line immediately south of Sand Branch and east of Route 609. Access is off Route 609. Design basis is based on the 1986 study and the anticipated buildout of the watershed is around the year 2036. Initially the station will be sized to accommodate 3 mgd of capacity which can be ultimately upgraded to 9 mgd at buildout. The pumping station estimated cost is $3 million. The 20" force main will be designed for an ultimate peak flow of 9.1 mgd. The force main will proceed from the pump station northwest along the South Fork of Sand Branch and reaches Rt, 50 east of the entrance to Chantilly Crushed Stone and parallels the right-of-way of Rt. 50, crosses Rt. 606 and turns north terminating at a discharge structure. The force main is estimated to cost $1.7 million, Mr. Andy Landrum was introduced and proceeded to explain the gravity sewer portion of the project. He explained that the Cub Run arrangement with the pump station north of Rt. 50 would require the installation of 4200' of gravity sewer but will eliminate the need for one pump station which was recommended in the 1986 study. It will be designed to convey a peak flow of 6,5 mgd. The esCimaCed cost of the Cub Run Gravity Sewer is $1.3 million and the Upper Broad Run Gravity Sewer is $14.7 million. Mr. Schwartz then reviewed the Potomac Interceptor Assessment which is the portion of the Potomac Interceptor from the north end of Dulles Airport to the Authority's Broad Run AWT site. He said they analyzed a single and a dual pipe arrangement to accommodate the increased flows. Because of timing and proj ecting times of availability of capacity the two alternatives will need further analysis. Mr. Schwartz said that an environmental assessment of the route of the pipe and pump station had been performed and that it was determined that any impact would be short term. The ultimate impact will be beneficial because of the improvement I in water quality. An archaelogical assessment was also performed. There were seven sites of interest, two or three will require additional investigation. Mr. Schwartz then showed a projected schedule which Indicated a period of 35 months will be needed from the time final design is authorized until the completion of construction. Mr. Madigan asked what the total cost of the project is projected to be. Mr. Schwartz responded that it will total an estimated $20.7 million plus the cost of the land. Mr. Falzone asked if they had attempted to project land costs. He responded that no, they hadn't. Mr. Coughlin explained that the alignment of the sewer crossed a number of large 132

parcels owned by major developers that would be required to grant easements. Mr, Gilchrist asked the General Manager about the status of Board of Supervisors' approval of Cub Run. The General Manager responded that it was still his understanding it was scheduled to be considered this month. Mr. Gilchrist then asked about the availability of financing this large amount. The General Manager responded that he and staff had met with a number of large landowners in the Dulles North Land Area earlier this year and would be meeting with them again when the final report is completed. He didn't feel the financing of the major portion of the project was a problem, only the portion of the Dulles South consisting of the pump station and force main could present a problem. Mr, Schwartz and his associates were commended for their thoroughness and were excused.

5. The General Manager explained a recommended Change Order No. 1 I to the contract for the expansion of the LCSA office building. The change order adds the removal of three existing trees and the replace­ ment with three red maples, the providing of a dumpster enclosure with a gate, the providing of a construction entrance and a sediment trap and the providing of two additional doors. Deductions from the original contract are the elimination of three tree wells and the elimination of landscaping surrounding the dumpster. This results in a net increase of $1,740.00. Upon MOTION of Mr. Falzone, seconded by Mr. Thomas, and with an unanimous vote of the members presenC the Authority passed the following resolution:

"BE IT RESOLVED, that the Authority hereby amends its contract with Keystone Builders and approves Change Order No. 1 with a net increase of $1,740.00 resulting in a new contract price of $1,390,688.00."

The Chairman asked the General Manager if he needed more flexibility in Che area of change orders. The General Manager responded Chat he did not feel like he needed anymore flexibility since any minor changes will be held and included in a single change order if the need arises.

6. The General Manager reported that the Authority's group hospitalization insurance policy was scheduled for renewal October 1, I 1989. A recent renewal proposal had been received from Blue Cross/ Blue Shield of Virginia with an increase in premiums of 26%. He said that Blue Cross/Blue Shield was asked to develop some options for the Authority's consideraton. Options offered by Blue Cross was to raise the prescription drug cost to the employees from $2.50 to $3.00 for generic drug prescriptions and from $4.50 to $8.00 for name brand drugs. Another option was for pre-admission review requirements to carry a $500 penalty. When both options are accepted the new increases in premiums would amount to 13.2%. Mr. Falzone said that pre-admission review was common in the industry and that the coverage the Authority had was top notch and recommended that the Authority approve the renewal. The General Manager stated that other carriers had been contacted and none would even consider providing similar coverage. Upon MOTION of Mr, Falzone, seconded by Mr. Gheen and with an unanimous vote of the members present the Authority voted to accept the proposal of Blue Cross/Blue Shield of Virginia for its hospitalization insurance group coverage.

7. Using maps the Deputy General Manager reviewed the status of development in Loudoun County. He pointed out the existing customer base, active areas of construction, approved projects, approved rezonings, rezoning applications before the County and the Authority's treatment plant site. Mr. Falzone asked about the Mobile tract adjacent to Goose Creek and Route 621. Mr. Hammes pointed out the area and said that it was currently located in an area designated as a rural area of Loudoun I County. Mr. Gilchlrst asked about the status of the Tri-County Asphalt STP. The General Manager responded that the discharge permit still had not been received from the Virginia Water Control Board. There is no discharge from che plant at the present time. Mr. Hammes pointed out the Dulles South Area and the application of the Brambleton development in the Dulles North Area. He pointed out that part of the property was in the area tributary to Beaverdam Reservoir and may have an impact on the drinking water, Mr. Madigan asked if the Authority will take a strong stand on this. Mr. Hammes responded that Authority staff had already indicated serious concerns regarding development within the watershed. 133

Mr. Falzone asked about the limits of the Leesburg sewer and water service area. Mr. Hammes explained the corporate limits of the Town of Leesburg and the conditions of the annexation agreement prohibiting development beyond the corporate limits and Route 659 until the year 1994.

8. Mr, Dale Hammes, Deputy General Manager reviewed a list of eight water and sewer agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that all were standard agreement-sand had been reviewed by General Counsel. Those agreements are:

Sewer Easement and Vacation w/Quad/LeBourget, Inc. dated 8/10/89 for LeBourget Business Park, Lots 12 & 13

Onsite Water and Sewer Agreement w/Robert J. Batal Builders, Inc, dated 7/21/89 for Cascades, Section 3A I

Onsite Water and Sewer Agreement w/Windson Development Corporation dated 8/15/89 for Cascades, Section 8B

Onsite Water and Sewer Agreement w/British Aerospace, Inc. dated 6/29/89 for British Aerospace-Flight Simulator Training Facility

Onsite Water and Sewer Agreement w/Rt. 28 Highpoint Associates dated 8/22/89 for Highpoint

Onsite Water and Sewer Agreement w/Capital Homes, Virginia, Inc. dated 7/18/89 for Potomac Lakes, Section 5A

Onsite Water and Sewer Agreement w/Robert J. Batal Builders, Inc. daCed 7/21/89 for Cascades, Section 3B

Onsite Water and Sewer Agreement w/Linpro Lansdowne Land Ltd Partnership dated 9/1/89 for Lnsdowne, Section 1, Lot 4D

9. The General Manager reported that he and two Authority staff members visited the Prince William County Service Authority last week to tour their two- year old administration building and maintenance facility. He said that with the exception of the sewage treatment plant operations all of the Prince William I County Service Authority's operations are conducted out of its administration building and maintenance facility on Davis Ford Road. He said during the tour they came up with a lot of good ideas for the Authority to consider in planning its facility. This planning will be accelerated before the end of the year,

10. The General Manager reported that no major action had taken place on the Lucketts Trailer Court sewage treatment plant. The County is still trying very hard to have the property owner take a more active interest in obtaining State Water Control Board approval of its wastewater treatment plant and securing an outfall easement. Yesterday the Authority received a copy of a letter from the State Health Department in Richmond to Mr. Donald Pong which approves the Vladix unit for Chis installation. The approval carries very stringent conditions dealing with sampling, testing and operation and maintenance of the facility. It is considered non-conventional technology because it does not have operational history. The Authority will be kept informed of developments.

11. The General Manager reported the clearing of the easements for the Xerox PIP sewer had begun. Pipe and manhole structures are expected to be delivered to the site by the end of September. Approximately four property owners in the Broad Run Farms and Potomac Farms Subdivision have refused to grant an easement and condemnation proceedings have begun. 12. The General Manager reported that the Fairfax Count}' Park Authority I has insisted that two additional alternative routes in Fairfax County be analyzed for the Authority's 36" water transmission main to the Corbalis Plant. He said that Authority staff is currently analyzing the two alternatives and that once completed it will be forwarded to the Fairfax County government. He said he had talked to Mr. Jay Lambert, Fairfax County Executive, on this matter and had been assured by Mr. Lambert that he would offer the assistance of his office in securing commission permit approval for the selected route. This will not alter the route in Loudoun at all. 134

13. The General Manager reported that the review of the Authority's rates, fees and charges underway by the rate consultant. Burns & McDonnell Engineering Co,, was nearing completion. He said that Ms. Leslie Griffith was also working very closely in this effort. The consultant and Authority staff are looking at the possibility of eliminating the minimum charge per residential unit all together and also considering a summer surcharge to promote conservation. He said he hoped to have a draft of the rate review to the members of the Authority prior to its October meeting.

14. The General Manager explained his recommendation that the Authority enter into an agreement with the Blue Cross/Blue Shield of Virginia for premium conversion in calculating Federal and State withholding from salaries of Authority employees. Currently I withholding is calculated on the gross annual and/or monthly salary. By initiating premium conversion the portion of the group hospitalization premium paid by the employee will be deducted prior to tax calculation. This will not affect the employees' state retirement benefits since the gross prior to reductions for premium conversion will be reported to VSRS, The only impact could be a slight reduction in future Social Security benefits. He recommended that the Authority authorize entering into this agreement. Upon MOTION of Mr. Gilchrist, seconded by Mr. Thomas, and with an unanimous vote of the members present the Authority voted to authorize the agreement with Blue Cross/Blue Shield of Virginia for premium conversion subject to staff and General Counsel review,

15. Mr. Madigan asked about the impact if any of Section 89 of the IRS Code. Ms. Leslie Griffith said that she was not concerned over the Authority meeting the code requirements since she had done a preliminary discrimination test which revealed no problem. Further, U.S. Congress has under consideration significant changes to the code,

16. Mr. Gilchrist asked about Fairfax County's request to purchase capacity in the Authority's proposed Broad Run AWT plant and negotiations to determine Fairfax's costs. The General Manager responded that the Authority formally acknowledged Fairfax County's request for 5 mgd of capacity. He stated that Fairfax's request will be considered in the preliminary design stage of the plant and negotiations will begin at I that time. Mr. Gilchrist asked where in Fairfax will the sewage flows be coming from. The General Manager responded that the area east of Route 28 served by two extensions of the Potomac Interceptor across the airport will receive the increased flows from Fairfax County.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

U^Lifh^C, yf A^d^ 7/.A^^y^ Ch'airman ^ h^ Secretary^

Meeting, October 13, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, October 13, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices.

2, Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; I Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M, Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Fay and Tim Coughlin and Ms. Leslie Griffith of the Authority's staff and members of the press were also present.

3, The minutes of the meeting of September 8, 1989 having been previously presented were approved as presented and to be so recorded.

4. The General Manager reviewed the highlights of a draft resolution of intent for the Authority to increase certain rates. 134

13. The General Manager reported that the review of the Authority's rates, fees and charges underway by the rate consultant. Burns & McDonnell Engineering Co,, was nearing completion. He said that Ms. Leslie Griffith was also working very closely in this effort. The consultant and Authority staff are looking at the possibility of eliminating the minimum charge per residential unit all together and also considering a summer surcharge to promote conservation. He said he hoped to have a draft of the rate review to the members of the Authority prior to its October meeting.

14. The General Manager explained his recommendation that the Authority enter into an agreement with the Blue Cross/Blue Shield of Virginia for premium conversion in calculating Federal and State withholding from salaries of Authority employees. Currently I withholding is calculated on the gross annual and/or monthly salary. By initiating premium conversion the portion of the group hospitalization premium paid by the employee will be deducted prior to tax calculation. This will not affect the employees' state retirement benefits since the gross prior to reductions for premium conversion will be reported to VSRS. The only impact could be a slight reduction in future Social Security benefits. He recommended that the Authority authorize entering into this agreement. Upon MOTION of Mr. Gilchrist, seconded by Mr. Thomas, and with an unanimous vote of the members present the Authority voted to authorize the agreement with Blue Cross/Blue Shield of Virginia for premium conversion subject to staff and General Counsel review.

15. Mr. Madigan asked about the impact if any of Section 89 of the IRS Code. Ms. Leslie Griffith said that she was not concerned over the Authority meeting the code requirements since she had done a preliminary discrimination test which revealed no problem. Further, U.S. Congress has under consideration significant changes to the code,

16. Mr. Gilchrist asked about Fairfax County's request to purchase capacity in the Authority's proposed Broad Run AWT plant and negotiations to determine Fairfax's costs. The General Manager responded that the Authority formally acknowledged Fairfax County's request for 5 mgd of capacity. He stated that Fairfax's request will be considered in the preliminary design stage of the plant and negotiations will begin at I that time. Mr. Gilchrist asked where in Fairfax will the sewage flows be coming from. The General Manager responded that the area east of Route 28 served by two extensions of the Potomac Interceptor across the airport will receive the increased flows from Fairfax County.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Ch'a irman ^ h^ Secretary^

Meeting, October 13, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, October 13, 1989 at 3:00 p.m. in the Board Room of the Loudoun County Sanitation Authority offices,

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; I Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Fay and Tim Coughlin and Ms. Leslie Griffith of the Authority's staff and members of the press were also present.

3. The minutes of the meeting of September 8, 1989 having been previously presented were approved as presented and to be so recorded,

4. The General Manager reviewed the highlights of a draft resolution of intent for the Authority to increase certain rates. 135

fees and charges at its January, 1990 meeting. The recommendations from the Authority's rate consultant and Authority staff include:

1. A reduced minimum charge which does not include usage, (customers who use less than 5,000 gallons per quarter will experience a decrease in their quarterly bill)

2. Average bill for all other residential customers will increase by approximately 9,6% (bond feasibility projected a rate increase of 16.9% for FY 1990)

3. Sewer cap reduced from 38,000 to 36,000

4. Customers using more than the greater of 6,000 gallons or 1.3 times their winter quarter consumption during the June through November I billing will be assessed an additional peak use charge.

5. Metered consumption from Authority fire hydrants will have a peak use charge imposed from May 1 through November 1.

6. Customer deposits charged all applicants who do not own the premises will be based on the size of meter and average quarterly consumption.

7. Deposits will earn simple interest of 5% per annum up to end of month prior to discontinuance of service.

8. Deposits plus interest will be refunded after two years' of satisfactory payment history.

9. Charges for meter and plan review/inspection fees are proposed to be adjusted to reflect actual cost.

10. Water availability charges are proposed to increase by 13.6% to $3,014 up from $2,653.

11. Wastewater availability charges to be increased by 9.9% to $4,011 up from $3,649. I 12. Master metered multifamily dwellings, apartments, townhouses, condos, will be assessed availability charges based on the number of units at 80% of the 5/8" meter charge.

The General Manager said that he recommended that the Authority hold two public hearings, one on the evening of January 11, 1990 at 7:30 p.m. in the Sterling Middle School Auditorium and the other at 2:30 p.m. on January 12, 1990 in the Authority's Boardroom. These times and locations will provide a convenient time and place for all Authority customers to comment on the proposed rates. Mr. Madigan said that although the General Manager had quickly reviewed the recommendations, a lot of work had entered into the final proposals. Originally the bond feasibility study had projected a 16.9 % user rate increase for 1990. He expressed his appreciation to those involved in the effort to refine and lower the recommended increases. Mr. Gilchrist asked to what extent the eastern Loudoun customer base had subsidized the sewage treatment system for the community of Waterford in the last ten to twelve years. The General Manager responded that since August, 1978, the date the plant began operating, the accummulated deficit amounts to $184,746. Mr. Gilchrist said that since the Authority's stated policy is for community water and sewerage systems to be self-sufficient financially, the Authority should reconsider mandatory connections for the Community of Waterford. He said this matter was discussed recently when the Huntley Subdivision matter was considered and that the Authority had considered mandatory connections for Waterford several years ago but failed to act at that time. He said this issue becomes more important because the County is considering the self contained communities or villages for western Loudoun. He asked that I General Counsel prepare a draft mandatory connection resolution for the Authority's consideration at its next meeting. After a short discussion, upon MOTION of Mr. Falzone, seconded by Mr, Thomas, and with an unanimous vote of the members present the following resolution was adopted: 136

BE IT RESOLVED, that the Loudoun County Sanitation Authority hereby signifies its intent to increase certain rates, fees and charges at its regular January, 1990 meeting and hereby sets the times of 7:30 p.m. on January 11, 1990 in the Sterling Middle School Auditorium and 2:30 p.m. on January 12, 1990 in the Loudoun County Sanitation Authority Board Room for public hearings to receive comments regarding same,

BE IT FURTHER RESOLVED, that the General Manager is hereby directed to have published in the Loudoun Times-Mirror, for two consecutive weeks, notice of the proposed increase in the schedule of rates, fees, and charges, and the day and time of the public hearing.

The proposed rates, fees and charges are: I 1) METERED WATER AND WASTEWATER RATES FOR CONTINUING SERVICE Meter Water Rates Wastewater Rates Description Size Current* Proposed** Current* Proposed**

Minimum Charge 5/8" $ 25.43 $ 18.08 $ 27.68*** $ 15.87*** Per Quarter 3/4" 31.79 25.40 34,60 23.25 1" 44.50 40.03 48.44 38.01 1-1/2" 76,27 76.60 83.04 74,91 2" 114.40 120.49 124.56 119.19 3" 203.37 222.90 221.44 222.51 4" 330.47 369.20 359.84 370.11 6" 648.22 734.95 705.84 739.11

Uniform Rate per 1,000 gallons for customers whose accounts were in existence (either in active or inactive status) during the whole of the preceding winter quarter **** All 1.45 $ 1.57 $ 2.23*** $ 2.47***

Uniform Rater per 1,000 I gallons for customers whose accounts were established during or subsequent to the preceding winter quarter All $ 1.45 1.68 $• 2.23*** $ 2.47***

Peak Use Rate per 1,000 for usage more Chan the greater of 6,000 gallons or 30% above winter quarter usage ***** All $ $ 3,14 $

Rate for Unmetered Residential Service All $ 67.82 $ 75.15

Single Service All $ 3.50 $ 3.50 $ 3.50 $ 3,50

* Minimum Charge per quarter for current rates includes 6,000 gallons, and Uniform Rate is for usage over 6,000 gallons (for 1989 rates only),

** Minimum Charge per quarter for proposed rates does not include usage, and Uniform Rate is for all usage over 0 gallons (for 1990 rates I only). *** Maximum residential customer discharge for 1989 and 1990 is 38,000 and 36,000 gallons per quarter, respectively.

A*** Xhe winter quarter billing period is defined as any quarterly billing period based on meter readings obtained or estimated in the months of February through April. ***** For consumption in excess of the amounts identified above in the June through November billing periods by customers whose accounts were in existence during the whole of the preceding winter quarter billing period. 137

2) METERED CONSUMPTION FROM AUTHORITY FIRE HYDRANTS

For metered water consumption provided through a fire hydrant, the following rates will be applied to che quantity of water purchased:

All usage from May 1 - November 1 $ 3.14/1000 gallons All usage all other times $ 1.57/1000 gallons

3) CUSTOMER DEPOSITS

The Authority will require from any residential or commercial applicant for continuing service, who is not the owner of the premises to be served, a cash deposit to secure the performance by the customer of the terms and conditions of the Authority under which water/sewer service is provided, which deposit shall equal the amount of the average bill for one quarterly billing period based upon the size of the meter. I The deposit will earn simple interest at a rate of 5% per annum, up to the end of the month prior to refund.

The deposit will be refunded, with interest, after two years of satisfactory payment history or when service has been discontinued, whichever comes first, after deducting any charges due on account.

Customer Deposits Meter Size Water Wastewater Total

5/8" ; 55.00 ; 75.00 i 130.00 3/4" 82.00 113.00 195.00 1" 135.00 185.00 320.00 1-1/2" 265.00 370.00 635.00 2" 422.00 593.00 1,015.00 3" 788.00 1,112.00 1,900.00 4" 1,312.00 1,853.00 3,165.00 6" 2,618.00 3,702,00 6,320.00

4) PLAN REVIEW/INSPECTION FEES

Applicants submitting plans for water and/or sewerage service connecting to the Authority's system shall pay fees computed from the following schedule: I

Plan Review Inspection Existing Proposed Existing Proposed WATER Cost per linear foot $ 0.25 $ 0.30 $ 0,75 $ 2.00 of pipe to be installed Minimum Charge 25.00 30.00 75.00 200.00

SEWER Cost per linear foot 0,60 0.65 1 1.75 i 2.20 of pipe to be installed 25.00 65.00 175.00 220.00

5) AVAILABILITY CHARGES

A lump sum availability charge shall be paid by each applicant for water/ sewer service based upon the type of premise or the maximum daily quantity of vater/sewer estimated to be used/discharged, whichever produces the greater charge, as follows:

Water and Wastewater Availability Charges

Type of Premise Water Wastewater Single Family Residence-individually metered $ 3,014 $ 4,011 I Town Home Residence-individually metered $ 3,014 $ 4,011 Multi-Family Residence (apartment, townhouse, condominum, or combination thereof) -Master metered, each unit $ 2,411 $ 3,209 13:

Commercial, Industrial, Institutional and Single Family Residence with larger than 5/8-inch meter:

Rated Demand Availability Charges Meter Size Capacity Ratio Water Wastewater

5/8" 20 1,0 $ 3,014 $ 4,011 3/4" 30 1.5 4,521 6,017 1" 50 2.5 7,535 10,028 1-1/2" 100 5.0 15,070 20,055 2" 160 8.0 24,112 32,088 3" 300 " 15.0 45,210 60,165 4" 500 25.0 75,350 100,275 I 6" 1,000 50.0 150.700 200,550 6.) All other rates, fees and charges will remain the same."

5. The General Manager referred to the draft statement of policy dealing with community well systems which had been furnished each member. He said it was staff's first cut of proposed policies dealing with these systems. He said Authority staff were seeking the members' ideas and suggestions to develop a final draft for the Authority's consideration at a later meeting. Mr, Gilchrist asked if the VISIONS concept envisioned water impoundments. Mr. Hammes responded that the first target would be groundwater from wells but Authority staff were stating that any available impoundment sites would be identified for future use if needed.

6. The General Manager reviewed a request from the Virginia Department of Highways for the Authority to donate approximately 837 square feet of its property near the intersection of Routes 7 and 28 for Virginia Power and C & P Telephone easements. He reminded the Authority that it had donated approximately 2200 square feet of this site previously for the highway interchange right-of-way. He said in this case he would recommend that the Authority grant the requested easement provided it received adequate compensation. He said compensation for this easement would be consistent with the acquisition of easements the Authority had acquired from Virginia I Power in the past. He said based on the costs the Authority was having to pay for the easements in the flood plain along the Xerox Offsite Sewer he would recommend that the Authority place a value of $1500 for the requested easement. After a short discussion, and upon MOTION of Mr. Falzone, seconded by Mr. Gilchrist and with an unanimous vote of the members present the Authority voted to grant the requested easement to VDOT for C & P Telephone and Virginia Power use at a cost of $1,500.

7. Mr. Hammes, Deputy General Manager, reviewed a list of three agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He explained that all were standard Authority agreements and had been reviewed by General Counsel. The agreements are:

Deed of Easement and Vacation (Sewer) with LSQ One Limited Partnership dated 8-24-89 for NALC Building at Loudoun Square

Offsite Sewer Agreement with Robert P. Franz dated 9-13-89 for S-98 (Broad Run Farms, Lot 7)

Amendment to Deed of Easement and Deed of Vacation (Sewer) with LSQ One Ltd. Partnership dated 9-14-89 for NALC Building at Loudoun Square

I 8. Staff reported that both contractors are underway on the Xerox PIP Offsite Sewer construction. Seven property owners have refused to grant easements to the Authority and condemnation proceedings were implemented. The contractors are presently clearing Che alignment and starting to bring pipe, manholes, and stone bedding material onto Che site. The H. J. Schneider Construction Co. has begun pipe installation west of Broad Run this week and the Yates Construction Company will begin pipe installation east of Broad Run in about two weeks. 139

9. It was reported by Authority staff that no major action had taken place concering the Lucketts Trailer Court Sewerage system. The Virginia Department of Health has approved the design of a wastewater treatment plant for the site. The property owner is still trying to secure an outfall easement. The General Manager explained that he received a copy of action by the Virginia State Water Control Board which extends the date for the owner of the trailer court sewage treatment plant to comply with the Water Control Board's directive until December 31, 1989. During this time Mr. Pong must acquire Che necessary easemenc for the outfall and begin the installation of a package sewage treat­ ment plant,

10. Staff reported that on September 23, 1989 the Loudoun County Planning Commission approved the commission permit application for the Broad Run AWT site. A public hearing before the Loudoun County Board of Supervisors for approval of the Commission Permit and Special Exception was held on October 10, 1989, Because of concerns of Broad Run Farms citizens this I item was deferred until the Board of Supervisors' November 6, 1989 meeting. LCSA staff are conducting a preliminary investigation for locating a water quality monitoring station on Broad Run.

11. Staff reported on the progress of the construction of the 36" water line connecting to the Fairfax County Water Authority's water system. A portion of the water main through the Woodstone Townhouse development in Sterling has been installed to avoid further impact in the construction of new homes. The contractor is presently pressure testing the water main. LCSA staff are reviewing a request by the Fairfax County Park Authority to relocate a large portion of the alignment from their property in Fairfax County.

12. Staff reported that the County is still working on the land area management plan for the Dulles South Cub Run area. Our consultant is in the process of finalizing the preliminary engineering reports for the Cub Run wastewater pumpover. The Loudoun County Planning Commission has approved the Cub Run Area Management Plan and forwarded it to the Board of Supervisors. It is expected that the Board of Supervisors will act on it before the end of the year.

13. Staff reported that the design plans and specifications for the repump station at the Sterling Standpipe, which involves the installation of two pumps and related piping at the standpipe to increase the effective I volume of the facility and improve system pressure, is currently being reviewed by staff.

14. Staff reported on the elevated storage tank on Route 659 which is a project involving the construction of a 2.5 million gallon elevated water storage tank along Route 659 near the Broadlands subdivision, and the construction of approximately 8,500' of 30" water main along Route 659 from the City of Fairfax Water Treatment Plant to the elevated water tank. The tank location and alignment of the 30" main is being coordinated by staff with the developer and with the proposed widening of Route 659. The consultant's preliminary design report is under review by staff.

15. Staff reported that seven industrial wastewater dischargers have been permitted by the Authority under the Industrial Wastewater Pretreatment Program. The dischargers are required to monitor the quality of their wastewater on a fixed schedule and submit reports to the Authority. The Authority will also conduct random and unannounced sampling of the dischargers' wastewater to insure compliance with the requirements of the pretreatment program,

16. The General Manager pointed out that the Authority's next regular scheduled meeting is November 10, 1989. This is a national holiday observing Veterans Day which is November 11. After a short discussion it was the consensus of the Authority that the meeting be rescheduled for November 17, 1989 at 3:00 p.m. I 17. The General Manager said ChaC he had recently received a copy of a tax bill the County forwarded Co the former owner of the Authority's Broad Run AWT site. He said the County has the property appraised at $2.17 per square foot which is more than the $2,05 and $2.10 per squre foot the Authority paid for it.

18. Mr. Tim Coughlin reported that the Authority's staff had taken a strong position on development in the Beaverdam Drainage Area and are 140

recommending that the County require a hydrologlc study by the developer of the Brambleton prior to action on their application. Mr. Coughlin said that the developer has hired a consulcanc Co develop this study. We have also recommended that an independent study be conducted and that the developer proffer a monitoring program for the watershed, Mr. Gilchrist asked to what extent the City of Fairfax was participating. Mr. Coughlin responded that they haven't showed much interest,

19. The General Manager suggested that the members put the evening of December 15, 1989 on their calendars since this is the date of the Authority's Christmas Dinner.

20. The General Manager reported that we had received an inquiry from a golf course designer concerning the possibility of leasing a I portion of the AWT site. The Authority will be kept Informed of any future developments regarding this matter.

21. Mr. Black asked the status of the proposed Bell Atlantic telephone antenna on the Authority's Sterling Water Standpipe. The General Manager responded that Bell Atlantic had executed the agreement and was paying rental fees. The application for special exception from the County to allow the installation of the antenna is underway.

22. The Chairman explained the proposal for the Authority to offer a deferred compensation plan to its employees. He said it would only cost the Authority a small amount of time for administration of the plan. Upon MOTION of Mr. Gilchrist, seconded by Mr. Graham and with an unanimous vote of the members present the Authority approved the concept and guidelines for the deferred compensation plan.

23. Upon MOTION OF Mr. Gilchrist, seconded by Mr. Black, and with all members voting aye, the Authority voted to go into executive session under Section 2.1-344(A), Subsection l.of the Code of Virginia for the purpose of considering employment assignments and salaries.

24. Upon MOTION of Mr. Cornwell, seconded by Mr. Graham, and I with an unanimous vote of the members present the Authority voted to return to regular session.

25. Upon MOTION of Mr. Gilchrist, seconded by Mr. Black and with all members voting aye, the following resolution was adopted:

WHEREAS, the Authority has convened an executive meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and

WHEREAS, SS2.1-344,1 of the Code of Virginia requires a certification by this Authority that such executive meeting was conducted in conformity with Virginia Law;

NOW, THEREFORE, BE IT RESOLVED, that the Authority hereby certified that, to the best of each members' knowledge, (1) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification resolution applies, and (ii) only such public business matters as were identified in the motion convening the executive meeting were heard, discussed or considered by the Authority."

26. Mr. Thomas reported on behalf of the Personnel Committee. I He said ChaC the recommendations of the Personnel Administrator contained in a memo dated September 28, 1989 were considered and that the Authority was in agreement concerning reclassification of employees and changes in salary classification and grades. He said they also agreed that all employees should be included in any cost of living adjustment granted by the Authority. He said chat Chis cost of living adjustment is recommended Co be 4% beginning January 1, 1990. In addition, they recommended that the salary of the General Manager and Deputy General Manager be increased 5% each effective October 1, 1989. Upon MOTION of Mr, Black, seconded by Mr, Graham and with an unanimous vote of the members present these recommendations were approved. 141

27. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

Chairman Secretary ^

Meeting, November 17, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, November 17, 1989 at 3:00 p.m. in the Board Room of the Loudoun county Sanitation Authority offices., I 2. Those present were Arlyn K. Black, J, Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager/Treasurer, Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Fay and Tim Coughlin and Ms. Leslie Griffith of the Authority's staff and members of the press were also present.

3. Mr. Cornwell, Vice Chairman, presided in the absence of Mr. Madigan, Chairman.

4. The minutes of the meeting of October 13, 1989 having been previously presented were approved as presented and to be so recorded.

5. The General Manager reviewed Change Order No. 3 to the contract with Keystone Builders, Inc. for the construction of the Authority's administrative office building expansion. He said the amount of $1,622.50 was to cover the cost of upgrading the quality of the doors and walls of the elevator. This will revise the total contract price to $1,393,033, After a short discussion and upon MOTION of Mr. Gilchrist, seconded by Mr. Black, and with an unanimous vote of the members present the following resolution was adopted: "BE IT RESOLVED, that the Authority hereby approves Change Order No. 3 I in the amount of $1,622,50 to its June 23, 1989 contract with Keystone Builders, Inc."

6. The November 17, 1989 draft Statement of Policy Concerning Community Water and Sewerage Systems was reviewed by the members of the Authority, staff and General Counsel. Since the members hadn't seen this draft prior to today, Mr, Gilchlrst suggested they go through it in detail and resolve any questions. Then a final draft could be prepared for the Authority's consideration at the next meeting. Items such as, average or estimated costs, mandatory connections, and notification to property owners of this policy were discussed. Mr. Franklin suggested making notation on subdivision plats so this requirement would be a part of a recorded legal document and land records. It was suggested that the service area description be changed to "such as recommended by the Authority and approved by the Board of Supervisors": Mr. Thomas asked if the policy contemplated different rates for each system? The General Manager responded that was the intention. Mr. Franklin explained the section of the Water and Sewer Authorities Act authorizing authorities to pass mandatory connection resolutions with the concurrence of the Board, of Supervisors. Any property upon which lot or parcel a building shall have been constructed for residential commercial, or industrial use could be forced to pay a connection fee, front foot fee and a non-user fee, however, vacant property isn't affected. Mr. Cornwell asked if the new communities around existing ones could be forced to hook on to the sewage system. Mr. Franklin responded that they could be forced to pay a one time connection fee assessment but could not be forced to physically connect If they had functioning systems. The noted changes will be made and forwarded to each member for final consideration at I the Authority's December meeting,

7. The General Manager said that consideration of mandatory connections for the Waterford Sewerage System required further study. Authority staff are still refining some costs as it relates to debt service and researching to determine how many properties have not paid connection fees. He suggested that the matter be deferred. 141

27, There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

~Chairman/./ ' ' Secretary 0

Meeting, November 17, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, November 17, 1989 at 3:00 p.m. in the Board Room of the Loudoun county Sanitation Authority offices., I

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager/Treasurer, Patricia W. Bigden, Secretary, and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. John Fay and Tim Coughlin and Ms. Leslie Griffith of Che AuChoriCy's staff and members of the press were also present.

3. Mr, Cornwell, Vice Chairman, presided in the absence of Mr. Madigan, Chairman.

4. The minutes of the meeting of October 13, 1989 having been previously presented were approved as presented and to be so recorded,

5. The General Manager reviewed Change Order No, 3 to the conCracC wiCh Keystone Builders, Inc, for the construction of the Authority's administrative office building expansion. He said the amount of $1,622,50 was to cover the cost of upgrading the quality of the doors and walls of the elevator. This will revise the total contract price to $1,393,033, After a short discussion and upon MOTION of Mr. Gilchrist, seconded by Mr. Black, and with an unanimous vote of the members present the following resolution was adopted: "BE IT RESOLVED, that the Authority hereby approves Change Order No, 3 I in the amount of $1,622.50 to its June 23, 1989 contract with Keystone Builders, Inc,"

6. The November 17, 1989 draft Statement of Policy Concerning Community Water and Sewerage Systems was reviewed by the members of the Authority, staff and General Counsel. Since the members hadn't seen this draft prior to today, Mr. Gilchlrst suggested they go through it in detail and resolve any questions. Then a final draft could be prepared for the Authority's consideration at the next meeting. Items such as, average or estimated costs, mandatory connections, and notification to property owners of this policy were discussed. Mr. Franklin suggested making notation on subdivision plats so this requirement would be a part of a recorded legal document and land records. It was suggested that the service area description be changed to "such as recommended by the Authority and approved by the Board of Supervisors". Mr. Thomas asked if the policy contemplated different rates for each system? The General Manager responded that was the intention. Mr. Franklin explained the section of the Water and Sewer Authorities Act authorizing authorities to pass mandatory connection resolutions with the concurrence of the Board of Supervisors. Any property upon which lot or parcel a building shall have been constructed for residential commercial, or industrial use could be forced to pay a connection fee, front foot fee and a non-user fee, however, vacant property isn't affected. Mr. Cornwell asked if the new communities around existing ones could be forced to hook on to the sewage system. Mr. Franklin responded that they could be forced to pay a one time connection fee assessment but could not be forced to physically connect if they had functioning systems. The noted changes will be made and forwarded to each member for final consideration at I the Authority's December meeting.

7. The General Manager said that consideration of mandatory connections for the Waterford Sewerage System required further study. Authority staff are still refining some costs as it relates to debt service and researching to determine how many properties have not paid connection fees. He suggested that the matter be deferred. 142

8. The General Manager reported that the proposed Budget for 1990 will be available in approximately a week to ten days. He suggested that the Authority meet a half hour earlier at its December 8, 1989 meeting as a committee of the whole to review the budget, Mr. Gheen asked that significant changes be high­ lighted on the comparative statement,

9. The General Manager reported that the terms of Messrs. Black and Thomas as members of the Authority expire on December 31, 1989. He said the Authority routinely notifies the Board of Supervisors of this fact and whether or not each member would accept reappointment. Both expressed a desire to be reappointed, therefore, the Board of Supervisors will be so notified. I 10. The General Manager reported that the Loudoun County Board of Supervisors at its November 6 meeting deferred the Authority's, application for a Commission Permit and Special Exception for the Broad Run AWT Plant, He said that deferral was for the purpose of allowing time for the Authority and Loudoun County staff to meet with citizens of the Broad Run community to address questions that they raised. The meeting was held on November 8, 1989 at the office of Planning, Zoning & Community Development, As a result of the meeting the conditions of approval for the AWT Commission Permit and Special Exception have been slightly revised to include more specific language regarding compliance with the County storm water and flood plain management policies and with meeting the require­ ments of Che Dulles Area WaCershed Policy. He said the citizens were pleased to learn that the Authority proposed to initiate a monitoring program on Broad Run which will be conducted by VPI/SU.

11. A list of 25 agreements which had been signed by the General Manager on behalf of the Authority since its last meeting was reviewed. The General Manager explained that all except those so noted were standard Authority agreements and the form of each had been reviewed by General Counsel. Those agreements are:

Deed of Easement and Deed of Vacation (Sewer) dated 10-26-89 with Village Market Centers, Inc. for Village Center on Seven I Phase II, Sections I and II Deed of Easement and Deed of Vacation (Water) dated 10-26-89 with Village Market Centers, Inc. for Village Center on Seven, Phase II, Sections I and II

Onsite Water and Sewer Agreement dated 9-22-89 with Douglas Corner, Inc. for Douglas Court Industrial Park, Phase II, Parcel Al (with Reimbursement)

Onsite Water and Sewer Agreement dated 10-10-89 with North Dulles Retail Associates for Dulles 28 Centre (with reimbursement)

Onsite Water and Sewer agreement dated 9-14-89 with NV Homes Limited Partnership for Potomac Terrace, Section 1 and 2

Onsite Water and Sewer Agreement dated 10-11-89 with Woodland Road Joint Venture for Woodland Road Industrial Park, Section 3, Lot 2

Onsite Water and Sewer Agreement dated 10-11-89 with Huntmar Beaumeade II Ltd. Partnership for Huntmar at Beaumeade, Phase II

Onsite Water and Sewer Agreement dated 10-13-89 with Christopher I Properties Ltd. Ptnshp for Cascades, Section 3C Onsite Water and Sewer Agreement dated 9-18-89 with Centennial Ashburn Business Park Associates, L.P. for Ashburn Business Park, Phase II (with reimbursement)

Onsite Water and Sewer Agreement dated 9-4-89 with Centennial Ashburn Business Park Associates, L.P. for Ashburn Business Public Improvements, Phase One (with reimbursement) 143

Onsite Water and Sewer Agreement dated 8-17-89 with MGK, Inc. for Staverton West, Lot 6A

Onsite Water and Sewer Agreement dated 10-27-89 with 637 Joint Venture for 637 Joint Venture Subdivision

Offsite Sewer Agreement dated 9-12-89 with LaRock Homes, Inc. for S-93, Richland Acres, Section 4

Onsite Water and Sewer Agreement dated 10-23-89 with Capital Homes, Inc. for Mirror Ridge Road Construction

Onsite Water and Sewer Agreement dated 10-26-89 with VMS/Lansdowne Ltd. Ptnshp for Lansdowne Executive Conference Center/Hotel Lansdowne, Section lA, Lot 1 I Onsite Water and Sewer Agreement dated 8-29-89 with Ryan Operations General Partnership for Potomac Lakes, Section 7A

Onsite Water and Sewer Agreement dated 10-6-89 with Investors Real Estate Investment for Potomac Lakes, Section 6A

Onsite Water and Sewer Agreement dated 8-14-89 with Sterling Business Associates, Inc. for Three Sterling Park Business Center

Offsite Sewer Agreement dated 9-13-89 with Robert P. Franz for S-98, ' Broad Run Farms, Lot 7

Offsite Sewer Agreement dated 11-6-89 with Belmont Forest Ltd. Partnership for S-99, Belmont Sanitary Sewer Outfall.

Offsite Sewer Agreement dated 10-27-89 with Lawrence Klunk for S-100, Richland Acres, Lot 30 Sewer Extension

Onsite Water and Sewer Agreement dated 11-8-89 with Ashburn Village Joint Venture for Ashburn Village, Phase V

Onsite Water and Sewer Agreement dated 11-8-89 with Washington Engineering Associates Ltd. Ptnshp for University Center, Phase I I Onsite Water and Sewer Agreement dated 11-14-89 with Daniels/ Huntingdon Limited Ptnshp for Huntingdon II & III

12. The General Manager reported on the progress of the Xerox (PIP) Sewer. The siphon crossing under Broad Run has been installed by the Yates Construction Co, The contractor started laying pipe near the Countryside Subdivision and will work in a westerly direction towards the Broad Run Farms Subdivision. The other contractor, H. J. Schneider, Inc., is currently working within the Northern Virginia Regional Park Authority easement on the Janelia Farm property. He has installed approximately 7,200' of 42" pipe to date which is approximately half of his project. Both projects are progressing ahead of schedule with minimum problems. Mr. Gilchrist asked how the inspection of the two projects was being handled. The General Manager responded that the Authority has assigned one full time inspector on the proj ect and a supervisor of inspections also spends a significant amount of time as needed on site.

13. Mr. Gilchrist asked about the status of the alignment of the 36" water transmission main to the Corbalis Water Treatment Plant in Fairfax County. The General Manager responded that Authority staff had completed their analysis of two additional alternative routes this week. We are now prepared to meet with VDOT and Fairfax County officials to resolve the issues raised by the Fairfax County Park Authority over the preferred route. The selection of the final route will be made soon and the application for the commission permits I in Fairfax and Loudoun Counties will be submitted then.

14. The General Manager explained that at the request of the County Administrator, LCSA staff had prepared planning level cost estimates for a public sewer system and wastewater treatment plant to serve the Village of Aldie. The proposed service area was recommended by the Loudoun County Health Department. A phased approach to providing public sewer service was requested to be evaluated along with alternative conveyance methods. He said the recently reported estimated costs of approximately $31,000 per 144

connection for the 57 users in the community or approximately $1.7 million for the total sewerage system was somewhat inflated. He said a review of the costs revealed that they could be reduced substantially by deleting availability charges and a significant amount of land acquisition on which to build the sewage treatment plant. With these reductions it would still cost an estimated $21,000 per connection to serve the entire community. Mr. Tim Coughlin then reviewed several phased alternatives to correct the immediate problems in the community and highlighted the results. He explained that the entire community was in a Loudoun County historic district which with its requirements would inflate the costs of construction including archaeological surveys, and more expensive fencing around the sewage treatment plant. Using maps he explained that the Phase I alternative would be a I low pressure system and would only serve the critical areas south of Route 50. This would place the wastewater treatment plant in the center of the village where it would be cost effective and discharge into Little River. The estimated cost of this system to serve approximately 30 connections is $600,000 or $20,000 per connection. Phase II would be a logical extension of Phase I to include those areas north of Route 50 identified for the expansion of the sewage treatment plant. Phase I of the sewage treatment plant would be 10,000 GPD and Phase II would add another 10,000 GPD of capacity. The General Manager pointed out each user of this scheme would have the continuing operating costs for the grinder pumps. The proposed gravity system would not require these costs. Mr, Coughlin pointed out that either scheme or alternative would require a waiver by the State Department of Health of the required buffer around the sewage treatment plant. Mr. Gilchrist asked if the Health Department had granted waivers in the past. The General Manager responded that it had in the Community of Waterford and St. Louis, Mr. Coughlin pointed out that he also looked at the possibility of relocating the wastewater treatment plant on the western edge of the Village but the cost impact was insignificant compared to the other location. The question of the practicality of these types of grinder pumps, who maintains them, and whether or not they are bypassable was discussed. They cannot be bypassed and can be maintained either by the homeowner or the utility at the I expense of the homeowner. Mr. Cornwell said he appreciated the presentation of the phased alternatives to correct the sewage treatment problems in the Community of Aldie. He said Mr. Thomas Dodson, the member of the Board of Supervisors representing this area, had discussed this matter with him as late as yesterday. The General Manager reported that the Authority staff had been invited to a meeting with County staff to review these alternatives yesterday but other participants were unable to attend, therefore, another meeting would have to be scheduled.

15. The General Manager reviewed a list of six uncollectible accounts which exceed $100. He explained that the Authority had passed a resolution authorizing and directing staff to write-off as uncollectible, accounts less than $100 after all efforts had been exhausted to collect same. These six accounts total $910.15. Upon MOTION OF Mr. Thomas, seconded by Mr. Black and with an unanimous vote of the members present the following resolution was adopted:

"BE IT RESOLVED, that the Authority hereby authorizes the following uncollectible accounts be written off:

DATE ACCOUNT NO. CUSTOMER AMOUNT

06/15/89 Z-050-00040A Corbin $128.00 I 12/30/88 Z-050-00281A Britt 119.54 10/31/88 Z-079-00026A Cole 126.96 09/12/89 Z-080-00231A Graves 101.11 09/07/88 Z-280-00932A Henrickson 163.44 05/22/89 Z-650-00162A Hogan 271.10

Total $910.15" 145

16. The General Manager said that the Virginia State Water Control Board is going to require the Goose Creek Sewage Treatment Plant to be closed and abandoned after five years. He said he felt it would be prudent to have a study developed by an engineering consultant to determine the most appropriate and cost effective way to replace this treatment capacity and provide for additional capacity in the area as needed. He felt water service to the area should also be investigated. He said Mr. Hammes who was not at work today because of sickness was developing a scope of work and estimated costs of such a study. The matter will be on the Board's December agenda for consideration.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned. I uJl L^- qJAyjUM X, 't^^ Chairman Secretar

Meeting, December 15, 1989

1. A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, December 15, 1989 at 3:00 p,m. in the Boardroom of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M, Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs, Tim Coughlin, John Fay, John Wailes, Ms. Leslie Griffith of the Authority's staff, members of the press and developer representatives were also present.

3. The Chairman invited the developer representatives to address the Board if it was their desire to do so. Mr. Eric Muller with Kettler & Scott I said a number of developer representatives had met earlier with Authority staff to discuss the Authority's proposed availability charge increases and the method of computing multifamily unit rates. He expressed his firm's concern over the magnitude of the increases and the timing and method of implementation. He said it would cost his firm an estimated additional $1.2 million in the Potomac Lakes Subdivision. He said written requests had been made to the Authority for a delay to allow the industry to examine the justification and proposed a compromise for phasing in the increases. Mr. Jim Butts with the Charles E. Smith Companies, developer of University Center also addressed the Board citing his firm's plans to construct 10% of the apartments as affordable housing. He also asked for an extension beyond January 12, 1990 for the implementation of the multifamily computation to allow the necessary people to examine the proposed rates. Rita Bamberger of Trammel Crow Residential also addressed the Board. She said her firm had contracted to buy a residential component within University Center and were proposing a portion as affordable housing. The proposed increase would amount to approximately $2.2 million more in connection fees over the total project. No one else chose to address the Board, therefore, the Chairman called the meeting to order.

4. The minutes of the meeting of November 17, 1989 having been previously presented were approved as corrected and to be so recorded.

5. The Chairman said the Authority had met as a committee of the whole at 2:30 p.m. with Authority staff to review the Authority's proposed 1990 Budget I in detail. He said Authority staff had answered all questions regarding the proposed budget satisfactorily, therefore, upon MOTION of Mr, Gilchrist, seconded by Mr. Black and with an unanimous vote of the members present the Authority approved the 1990 Budget, He said that during the Authority's budget session he had presented a certificate of achievement from the Government Financial Officers Association to Robert K. Frye, the Authority's Manager of Accounting. It was a certificate for excellence in financial reporting for the Authority's 1988 Comprehensive Annual Financial Report. He said this was the second year in a row that the Authority's annual report had won this achievement. 145

16. The General Manager said that the Virginia State Water Control Board is going to require the Goose Creek Sewage Treatment Plant to be closed and abandoned after five years. He said he felt it would be prudent to have a study developed by an engineering consultant to determine the most appropriate and cost effective way to replace this treatment capacity and provide for additional capacity in the area as needed. He felt water service to the area should also be investigated. He said Mr. Hammes who was not at work today because of sickness was developing a scope of work and estimated costs of such a study. The matter will be on the Board's December agenda for consideration.

17. There being no further business, upon motion duly made, seconded and carried the meeting adjourned. I Ui V&fe-^cy ^ hairman Secretaf

Meeting, December 15, 1989

1- A meeting of the Loudoun County Sanitation Authority having been duly called was held on Friday, December 15, 1989 at 3:00 p.m. in the Boardroom of the Loudoun County Sanitation Authority offices.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr., Michael J, Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J. Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0. Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel of McGuire, Woods, Battle & Boothe. Messrs. Tim Coughlin, John Fay, John Wailes, Ms. Leslie Griffith of the Authority's staff, members of the press and developer representatives were also present.

3. The Chairman invited the developer representatives to address the Board if it was their desire to do so. Mr. Eric Muller with Kettler & Scott I said a number of developer representatives had met earlier with Authority staff to discuss the Authority's proposed availability charge increases and the method of computing multifamily unit rates. He expressed his firm's concern over the magnitude of the increases and the timing and method of implementation. He said it would cost his firm an estimated additional $1.2 million in the Potomac Lakes Subdivision, He said written requests had been made to the Authority for a delay to allow the industry to examine the justification and proposed a compromise for phasing in the increases, Mr. Jim Butts with the Charles E. Smith Companies, developer of University Center also addressed the Board citing his firm's plans to construct 10% of the apartments as affordable housing. He also asked for an extension beyond January 12, 1990 for the implementation of the multifamily computation to allow the necessary people to examine the proposed rates, Rita Bamberger of Trammel Crow Residential also addressed the Board. She said her firm had contracted to buy a residential component within University Center and were proposing a portion as affordable housing. The proposed increase would amount to approximately $2.2 million more in connection fees over the Cotal project. No one else chose to address the Board, therefore, the Chairman called the meeting to order.

4. The minutes of the meeting of November 17, 1989 having been previously presented were approved as corrected and to be so recorded.

5. The Chairman said the Authority had met as a committee of the whole at 2:30 p.m. with Authority staff to review the Authority's proposed 1990 Budget I in detail. He said Authority staff had answered all questions regarding the proposed budget satisfactorily, therefore, upon MOTION of Mr. Gilchrist, seconded by Mr. Black and with an unanimous vote of the members present the Authority approved the 1990 Budget, He said that during the Authority's budget session he had presented a certificate of achievement from the Government Financial Officers Association to Robert K. Frye, the Authority's Manager of Accounting. It was a certificate for excellence in financial reporting for the Authority's 1988 Comprehensive Annual Financial Report. He said this was the second year in a row that the Authority's annual report had won this achievement. 146

Since Mr. Frye has resigned and this was his last day with the Authority he congratulated Mr. Frye on his efforts on behalf of the Authority and wished him well in opening his own accounting practice,

6, The Authority's draft Statement of Policy Concerning Community Water and Sewerage Systems was then considered. The General Manager said that this draft included suggested revisions Authority members and General Counsel had made. He recommended that the Authority consider formally adopting it today if it met with their approval. Mr. Falzone questioned whether it was legally and technically sufficient because of its significance. Mr. Franklin suggested that it created a fair balance between the two because the more specific you become the more technical you also must become. He said he felt that it had good balance as a beginning policy and could be amended or modified later as practical problems arise in I developing the systems. Mr. Falzone asked if the Authority was legally binding itself to make modifications later, Mr, Franklin said that he viewed this as an announcement to the community of what the Authority's current posture was on the community water and sewerage systems. The Authority is obligated to deal with these problems and the public is entitled to know where the Authority stands and needs some general guidelines. Mr. Hammes said technically we are hitting the areas broadly and the specifics will be handled when the agreements are developed and specifications are reviewed and approved for specific projects. Mr, Black questioned why the words "the Authority may adopt" mandatory connections rather than "shall" adopt was Included. Mr. Franklin responded that it was his suggestion that the work "shall" be changed to "may" because he wasn't sure, given the level of experience with the problem, the Authority wanted to bind itself to mandatory connection ordinances as a condition to acceptance of a system. Mr. Black suggested that this is why the Authority is having difficulty resolving the situation in Waterford now because of the absence of a mandatory connection resolution. Mr. Thomas asked if the Authority would be the one to determine if the systems would be economically feasible and whether or not this policy would encourage community systems. The General Manager responded yes, it was the Authority's responsibility to determine the economic feasibility provided the developers were willing to finance the projects. According to the draft policy Mr. Gilchrist said that he did not feel I it would encourage community systems, in fact it might discourage when the developers saw how much it was going to cost them. He said that since the Loudoun County Board of Supervisors had created a VISIONS concept it was necessary for the Authority to develop a policy in providing water and sewer to Che villages that would be developed. Mr. Gilchrist said that the Authority could modify the policy at any time. Mr. Franklin questioned the wording change on routine service extensions. Mr. Gilchrist responded that routine service extensions should be within Che service area prescribed by the Loudoun County Board of Supervisors and that any change should be approved by them. After further discussion, upon MOTION of Mr. Gilchrist, seconded by Mr. Gheen, and with the following record vote: Mr, Black, yea; Mr. Cornwell, yea; Mr. Gheen, yea;, Mr. Gilchrist, yea; Mr. Graham, yea; Mr. Madigan, yea; Mr. Thomas, yea; and Mr, Falzone, nay; the Statement of Policy Concerning Community Water and Sewerage Systems was adopted. Mr. Falzone explained his nay vote was not in opposition to the policy but in some of its wording.

7. The General Manager said that consistent with the Authority's planning and recommendations of local and state regulatory agencies the Authority has received a proposal from VPI/SU to develop, implement and administer a monitoring program on Broad Run. He said the proposal received was a comprehensive one that included sampling not only at the Authority's proposed discharge point to Broad Run but also at each creek tributary to I Broad Run. He said that Dr. Grizzard of the VPI staff had been asked to segregate this proposal. Mr. Coughlin pointed out that the Dulles Area Watershed Policy requires Loudoun County to establish a monitoring program for all land development within the watershed. When the proposal is segregated the Authority will forward it to the County to determine their interest for participation in the comprehensive program. This matter will be brought back to the Authority for its consideration at its next meeting. 147

8. The General Manager said that Authority staff had developed a scope of study for a Goose Creek Water and Sewer Capacity Study. Mr. Hammes referred to a map showing the area to be studied and its relationship to the Town of Leesburg's existing and proposed systems and its relationship to the annexation. He mentioned the Water Control Board's intention to require that the Goose Creek Industrial Park Sewage Treatment Plant be abandoned after five years and the need to replace this capacity. He said it was also necessary to examine water needs in this area of growth over the next 20 to 30 years. We will need to quantify needs in this area and the possibility of sewage service by way of pumpover to Russell Branch. Water needs may require the expansion of existing sources. Mr. Gilchrist asked if this was a request for proposals. Mr. Hammes responded that staff proposed to use an existing engineering agreement to have the work performed since the estimated cost is less than the amount requiring public proposals. Upon MOTION of Mr. Gheen, seconded by Mr. Graham and with an unanimous vote of the members present the Authority voted to approve the scope of work for the Goose Creek Water and Sewer Capacity Study and authorized staff I to have the consultant proceed. The General Manager suggested Chat this might be an appropriate time for the Authority to suggest to the Town of Leesburg that the two bodies meet to discuss matters of mutual concern. It was the consensus of Che Authority that this would be appropriate. The General Manager was directed to draft a letter to the Mayor of Leesburg for the Chairman's signature requesting same.

9. The Chairman explained the letter from the Waterford Citizens Association in which they state that their association is opposed to mandatory sewer connections. The General Manager then reviewed some statistics with the Authority concerning the Waterford Sewerage System. He stated there were 83 current accounts or connections to the system, 33 structures in the community without connections to the system, 17 of which have a source of water and 5 of the 17 have paid availability charges. He said the current proposed rate increase would raise the flat quarterly rate for Waterford customers to $78.55. To put the system on a break-even basis the rates to the 83 connections would have to be raised to approximately $131.49. If all 32 structures not connected were required to connect and a non-user charge was imposed upon all 32 this would reduce the required user rate to $123,91 a quarter. If all 18 houses in the proposed Huntley Subdivision were connected that would reduce the quarterly charge to $101.83. Removing the structures without a source of water from the mandatory connections would result in a minimum flat quarterly charge of $104.75. Mr, Black asked what the Authority's other customers were paying to subsidize the operation I of the system. The General Manager responded that the latest computation indicated each eastern Loudoun customer was contributing approximately $2.51 annually. After further discussion it was the consensus that this matter should be deferred until the Authority's March meeting at which time Authority staff would make recommendations to place the system on a self sufficient fiscal basis.

10. The Deputy General Manager reviewed the Water and Sewer Agreements which had been signed by the General Manager on behalf of the Authority since its last meeting. He pointed out that only one contained reimbursement. Those agreements are:

Onsite Water and Sewer Agreement dated 11-14-89 with Martens-Edward Development Co, for Cascades, Section 6A

Onsite Sewer Agreement dated 10-19-89 with Loudoun Station Limited Partnership for Loudoun Station

Offsite Sewer Agreement dated 10-19-89 with Loudoun Station Limited Partnership for Loudoun Station (S-95)

Offsite Water Agreement dated 10-20-89 with Sterling Square Associates Ltd Partnership for Sterling Square (W-45) 11. The General Manager reported that on November 21, 1989 the Loudoun I County Board of Supervisors had approved the Authority's application for a Commission Permit and Special Exception for the Broad Run AWT plant by a 7 to 1 vote, Ms, Kavanagh voted against it. He then reiteriated the proposal received from VPI to develop, implement and administer a monitoring program on Broad Run,

12. The General Manager reported that approximately 8200' of 42" diameter sewer pipe had been installed west of Broad Run and approximately 800' east of Broad Run of the Xerox Offsite PIP Sewer. The project is approximately 35% complete and is on schedule for completion and operation by June, 1990. 148

13. The General Manager reported that there were no develop­ ments since the last meeting concerning Aldie. Authority staff is waiting for the County to schedule another meeting date for the Authority to review its different options for public sewer service with County staff.

14. The General Manager reported that the Loudoun County Board of Supervisors is scheduled to act upon the Cub Run Area Management Plan at its December 19, 1989 meeting. Final engineering reports for the Cub Run sewage pumpover system, details of which have been reviewed by the consultant with the Authority should be received this week.

15. The General Manager reported that a property plat for the I Route 659 elevated storage tank location has been received from the developer donating the site. The final design of the tank has begun.

16. The General Manager reported that the Authority is preparing a site plan for Loudoun County approval for the repump station at the Sterling Standpipe. The consultant's design plan and specifications are under review by Authority staff.

17. The General Manager reported that there have been no develop­ ments concerning the Lucketts Trailer Court proposed sewage treatment plant since the Authority's last meeting. The property owner apparently still is trying to secure an outfall easement.

18. The General Manager reported that the Authority's staff had made a final review of the alternative routes for the 36" water transmission main to the Fairfax County Water Authority Corbalis Plant, All routes of the transmission main require that it be installed in VDOT right-of- way. A meeting earlier this week with VDOT had been cancelled by VDOT because of the weather. Efforts are underway to reschedule the meeting to determine the acceptability and location of placing this transmission main within the VDOT right-of-way.

19. The General Manager reported that the developer for the I Deerfield Subdivision will be required to construct a 20 gpm water treatment plant for LCSA operation and maintenance. A VPDES permit will be required for discharge of filter backwash water to the stream. The permit application has been submitted to the State Water Control Board.

20. Mr. Gilchrist suggested that the Authority's proposed AWT plant on Broad Run will end up providing service to a major portion of the Authority's existing customer base as well as future growth and that this point should be made by the media when reporting on the Authority's planning and proposed rate increases. The General Manager reported that this could be possible should the District of Columbia raise its user rates to a point higher than what it would cost the Authority to treat its own sewage at the Broad Run Plant. Mr. Gilchrist asked if the comparison of the two rates could be made. The General Manager responded that he felt it was too early to develop a comparison. More information would be needed for both facilitiss.

21. The Chairman said that the Authority had received a request from the Loudoun County Board of Supervisors for it to consider phasing in the multifamily unit computation of its proposed availability charges. The Authority had also heard similar requests from several representatives of the building industry at the beginning of its meeting. He said everybody is concerned about providing low or moderate housing in Loudoun County and felt that the Authority should I respond to the requests which it had received. The General Manager reported that Authority staff had met with a large group of building industry association members and heard their concerns. He acknowledged that they have some real problems but shared with them that the Authority was in a similar situation since when it entered negotiations to acquire the Broad Run AWT site the proj ected purchase price of property was $12 to $15 million. The final cost ended up being in excess of $32 million. This naturally has to be passed on to the developers in the form of availability charges. He said the proposed 149

basic availability charges had been developed using the same methodology as in past years. Computations were based on firm costs of proposed facilities. By the time the Authority considers the proposed increases in January it will have been 18 months since the last increase. These increases average only 11%. He said staff recognizes that 90 days notice is not a long time for the development community. He, therefore, said if it was the desire and consensus of the Authority, he would develop a phasing structure for the Authority's consideration at its January meeting. He said the building industry took the same position this year in Fairfax and Prince William counties when each county proposed rate increases. Each agreed to phase in the increases with appropriate Increases at the end of the phasing period to make up the difference for any lost revenue. It was the consensus of the Authority that staff should develop such recommendations. 22. Upon MOTION of Mr. Thomas, seconded by Mr. Graham, and with an I unanimous vote of the members present the Authority voted to go into executive session under the Code of Virginia, Section 2.1-344(A), Subsection 3, Real Property Acquisition. Mr, Cornwell and Mr. Gheen asked to be excused.

23. Upon MOTION of Mr. Gilchrist, seconded by Mr. Graham, and with an unanimous vote of the members present the Authority returned to regular session.

24. The Chairman invited the press back into the meeting and reported that no action was required as a result of the executive session.

25. Upon MOTION of Mr. Black, seconded by Mr. Thomas and with all members present voting yea, (Mr. Cornwell and Mr. Gheen were not present) the following resolution was adopted:

"WHEREAS, the Authority has convened an executive meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and

WHEREAS, SS2.1-344.1 of the Code of Virginia requires a certification by this Authority that such executive meeting was conducted in conformity with Virginia Law;

NOW, THEREFORE, BE IT RESOLVED, that the Authority hereby certified that, to the best of each members' knowledge, (1) only public business maCCers I lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification resolution applies, and (11) only such public business matters as were identifed in the motion convening the executive meeting were heard, discussed or considered by the Authority."

26. There being no further business, upon motion duly made, seconded and carried the meeting adjourned.

m ~fi7f?uyiyyL ^. /nyq^^^,^ ) airman SecretaryJ^

Minutes of Meeting of the Board of the Loudoun County Sanitaton Authority for the Conduct of a Public Hearing Held January 12, 1990 at 2:30 p.m. in the Loudoun County Sanitation AuChority Board Room

1. At 2:30 p.m, on January 23, 1990 a meeting of the Loudoun County Sanitation Authority was called to order by Mr. William J. Madigan, Jr., I Chairman, for the purpose of conducting a public hearing regarding a change in water and sewer rates.

2. Those present were Arlyn K. Black, J. Lynn Cornwell, Jr,, Michael J. Falzone, R. K. Gheen, Frank Gilchrist, Charles H. Graham, William J, Madigan, Jr., and H. Rogers Thomas, members of the Authority; Kenneth 0..Shelton, General Manager-Treasurer, Dale C. Hammes, Deputy General Manager, Patricia W. Bigden, Secretary and Stanley M. Franklin, General Counsel, of McGuire, Woods, Battle & Boothe, Leslie Griffith, Director of Fiscal Operations, and Stephen Malick. Members of the public, Che developmenC communiCy and the media were also present.