ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 9, 1990                   TAG: 9005090585
SECTION: VIRGINIA                    PAGE: B-1   EDITION: BEDFORD/FRANKLIN 
SOURCE: BY MONICA DAVEY STAFF WRITER
DATELINE: BEDFORD                                LENGTH: Medium


WATER-SEWER PACT SOUGHT

County officials are suggesting a revenue-sharing agreement to put an end to a fight about water and sewers in Bedford County and Bedford City.

The county supervisors' chairman, A.A. "Gus" Saarnijoki, laid out a five-point proposal in a letter delivered to Bedford City Council members Tuesday.

The letter follows several months of disagreement between the city and county over city extensions of water and sewer service into the county. Under his proposal, Saarnijoki wrote, the two localities might be able to add water and sewer service to "the already long list of areas of cooperation" between them.

Saarnijoki recommended a revenue-sharing agreement to allow the city to gain some funds earned by the county from commercial and industrial properties that are served by city water and sewer. He did not offer specific details of what revenues or how much money that agreement might include.

In addition, he said that the Board of Supervisors would release the city from a past agreement that prevented the city from charging county utility customers more than 115 percent of what the city customers paid.

Last year, that issue prompted an initial dispute about the water and sewer question. When city officials proposed higher rates for county utility users, county officials reminded them of the 115 percent agreement. City officials stuck to the agreement, but put a moratorium on new water and sewer extensions into the county. That moratorium stands.

In his letter, Saarnijoki said that the supervisors "did not want to have a hand in setting" the city's rates. But, he asked that those county customers be treated "fairly" and asked that rates for residential - as opposed to commercial or industrial - water and sewer service rates be equal in the county and city.

As part of his proposal, Saarnijoki asked that the city remove its moratorium on water and sewer connections in the county.

He said the county would provide its consultant's information about water and sewer needs to the city as it worked to study its long-term utility needs. City officials had said they would reconsider the moratorium on water and sewer extensions once a study of those needs was finished.

Finally, Saarnijoki recommended, the city would agree to an annexation moratorium on areas on which the county and city were sharing revenue.

It was an annexation request by a county nursing home that led the county to file suit against the city earlier this month.

Carriage Hill nursing home asked the Commission on Local Government to allow its 23 acres of land to become part of the city. Carriage Hill's owners said they wanted annexation so they could get water and sewer extended to their property - a feat they could not accomplish with the city's moratorium on extensions.

That annexation request has not yet been considered by the Richmond-based commission. Meanwhile, the county's suit in Bedford County Circuit Court claims that the city already had a responsibility to serve Carriage Hill without annexation and that the city encouraged the nursing home owners to file the annexation request. That suit has yet to be acted on as well.

Saarnijoki suggested that - if city officials were amenable to his proposal - the county suit and the annexation request would no longer be needed.

The city and county boards have a joint meeting scheduled for May 15, where Saarnijoki is asking that the issue be addressed.

Bedford Mayor Michael Shelton had said last week that he doubted there was much the two boards would have to discuss at the joint meeting - given the pending legal suits.

City Manager Jack Gross said Tuesday that he could not comment on Saarnijoki's letter because council members had not yet had enough time to read it.



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