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By Editor Becky Watts
ZEBULON - The City of Zebulon is in the process of annexing the new VA Clinic into the city limits of Zebulon. The VA Clinic is completed now, though it is not open quite yet, and that is the final step that was needed to begin this process that began many years ago with an agreement between the City of Zebulon and the Pike County Water and Sewer Authority.
This article will encompass the May 19, 2022 City of Zebulon City Council meeting as well as years of minutes and signed agreements between the City of Zebulon and the Pike County Water and Sewer Authority (PCWSA).
City of Zebulon Annexation Meeting
On May 19, 2022, the Zebulon City Council met to discuss the annexation of the VA Clinic now that the construction is complete. City Attorney Rob Morton advised council members that this was supposed to take place last year, but that the City only recently received the application for annexation.
There was a memorandum of understanding between the owner of the property and the VA Clinic from May of 2020 in which the owner agreed to annexation. This was supposed to be finalized when the VA Clinic building was completed, but the email for annexation and rezoning was received the week before this meeting took place. Notifications will be sent out to the county regarding this annexation.
The agreement with the Pike County Water and Sewer Authority was a quid pro quo for the PCWSA being allowed to buy water and sell it to Pike Plaza and the City of Zebulon providing water and sewer to for the VA Clinic. According to Water and Sewer Authority minutes, sewer will be provided to Pike Plaza in the future as well.
There is a 30-day deadline for the county to object to the annexation. However, the objection guidelines are very specific. The developer is represented by Newton Galloway.
There will be a public hearing before the Planning Commission after that and then back to the City for the rezoning and annexation. 1st and 2nd reading on the annexation ordinance with reports to the county and DCA after that.
The City of Zebulon is hoping to have this process completed within 60 days.
Morton advised that Chairman Briar Johnson of the Pike County Commissioners was there the Edwards family, the Molasky Group, etc. when this was discussed so this has not been a surprise discussion. Pike County Times reviewed about 3 years of specific PCWSA minutes in which this process showed Commissioner Tommy Powers as a part of the PCWSA board with only a short period of time between his passing and Chairman Briar Johnson going onto the Board.
Timeline Leading Up to Annexation
PCWSA is its own entity and does not operate under the direct supervision of the Pike County Board of Commissioners. However, PCWSA sends its approved minutes to the Board of Commissioners and has a commissioner on its board and has operated this way for a number of years to ensure that both entities are on the same page as they work together for the good of the county.
There are a number of signed agreements between the City of Zebulon and the Pike County Water and Sewer Authority (PCWSA) that are a part of this annexation. Several of these agreements go all of the way back to a Water Purchase Agreement from September 2, 2003 that has been amended since that time.
These agreements are of particular importance. Further details are included in the notes at the end of this article.
The 2019 Memorandum of Understanding (MOU) simply says that the City of Zebulon will sell water to the PCWSA at the wholesale/actual rate plus a service fee of 5% which is intended to cover costs and help offset maintenance.
The February 20, 2020 MOU says that the City of Zebulon and PCWSA agree to a Water Purchase Agreement which allows the county to continue to purchase water from Zebulon for the purpose of serving residents and businesses outside of the city limits of Zebulon and that both agree that the City of Zebulon will provide water and sewer to the VA development. Section 3 of this agreement specifically states that the City of Zebulon, PCWSA, the property owner, and the developer all agreed that the VA property will be annexed into the City of Zebulon.
The May 27, 2020 Development Agreement was signed by the City of Zebulon, Pike County VA LLC, and the Molasky Group (the developer for the VA) in order to serve the VA Clinic with water and sewer utilities based on the 2020 MOU with the City of Zebulon. The City agreed to design, permit, and construct water and sewer lines to the VA Clinic, but since the City didn’t have the resources to pay for the project outright, it applied for funding to complete the project. The developer agreed to help pay for at least part of these costs with their portion of funding being reduced based upon the amount received from any grant that the City obtained. (More on this in the notes below.) This agreement stated that the same water and sewer rates would be charged to the VA Clinic because it will be annexed into the city after its completion.
The June 8, 2021 Updated Water Purchase Agreement between the City of Zebulon and PCWSA updated past Water Purchase Agreements to include a minimum of 50,000 gallons per month being available to the PCWSA. Requests for residential and business service would be based on the size of the line with 4 inches being the tipping point for customers to go with the PCWSA unless it deferred new customers along the existing Zebulon service lines with a majority vote of the PCWSA.
On June 17, 2021, a letter was written and signed from the PCWSA to the City of Zebulon advising that the PCWSA had voted unanimously to approve for the City of Zebulon to extend sewer service lines to STS Development and Pike Plaza with the support of the PWSA.
On January 19, 2022, Pike County VA LLC and its manager submitted a Letter of Intent in support of the rezoning application for the Department of Veterans Affairs Outpatient Clinic On May 10, 2022, a signed application was submitted to the City of Zebulon by the Pike County VA Clinic and the developer, the Molasky Group, to request that the City of Zebulon annex its property into the City of Zebulon. Newton Galloway of Galloway & Lyndall is the representing attorney on the application for this 11.21 acre piece of property.
On May 19, 2022, the City of Zebulon City Council met and discussed the annexation of the VA Clinic. Pike County Times attended this meeting.
Closing
Pike County Times spoke with City Attorney Rob Morton after the Zebulon City Council meeting to try to understand what was happening and why. An open records request was also put down on paper for the intergovernmental agreements filled by City Attorney Rob Morton that are shown below as well as the open records request that was filled by Superintendent Scott Huckaby of the Pike County Water and Sewer Authority.
Morton gave a statement to Pike County Times that explained the quid pro quo between the City of Zebulon and the Pike County Water and Sewer Authority saying that there was a Memorandum of Understanding between the two entities related to the provision of water to Pike Plaza and to the VA facility were connected. The City of Zebulon agreed to provide water to PCWSA to sell to Pike Plaza in exchange for PCWSA agreeing that the City of Zebulon would service the VA Clinic directly with water and sewer and it be annexed into city. Morton said specifically that it was understood that the VA facility would be annexed.
There is a 30 day deadline for the county to object to the annexation according to specific objection guidelines, there will be a public hearing before the Planning Commission, and then the application will go back to the City of Zebulon for the end of the rezoning and annexation process.
The City of Zebulon is hoping to have this process completed within 60 days.
City of Zebulon City Council Meeting Write Up
May 19, 2022
Call to order at 5:35 p.m.
Motion to approve the agenda.
NEW BUSINESS
Juneteenth Parade on June 19. Circle the courthouse at 1:30 p.m. on Jackson Street. Motion to approve the parade application and road closure. Approved.
[Note from the Editor: The bulk of the meeting centered around annexation of the newly completed VA Clinic. City Attorney Rob Morton did most of the talking as he brought council members up to date on the ins and outs of this annexation.]
The development agreement between the owner and the VA from May of 2020, the owner has agreed to annexation. This was supposed to be completed in September of last year when everything was completed.
Morton received an email for application for annexation and for the rezoning last week. The question on was whether this was necessary or not. There was a consensus to err on the side of caution.
He advised that notifications have to be sent out. Morton further advised council members that there were determining whether this is in compliance and whether to accept this application.
Morton advised that because of his relationship with the county, he had provided an email notice to the Board of Commissioners to consider this. They are aware that you have received the applications, but you will be required to send certified notice, he said. [Note from the Editor: Rob Morton is also the attorney for the Pike County Board of Commissioners.]
The Mayor put together a plan report when the City of Zebulon annexed in the water facilities. We’ll use that as a guide for this. The agreement with the Pike County Water and Sewer Authority was a quid pro quo for water for the VA. They will buy water from you but will be Zebulon’s customer as the requirement for providing water to the McLeRoy Plaza development.
We have an obligation to provide a plan for services, etc. that will be put together 14 days prior to the meeting. This includes a fire, water, sewer, etc. intergovernmental agreement for fire throughout the county.
There is a 30 day deadline for the county to object. The objection guidelines are very specific. He laid them out as follows:
1) There must be a material increase in burden to the county. Their zoning is P-I. Not a significant change because it’s a similar district. 2) Increase in density. It was allowed to be constructed by agreement so it will be the same as constructed. 3) The city is servicing the infrastructure so there should be no objection.
There will be a public hearing before the Planning Commission after that and then back to the City for the rezoning and annexation. 1st and 2nd reading on the annexation ordinance with reports to the county and DCA after that.
The developer is represented by Newton Galloway.
Discussion: We hope to have this done within 60 days. This will be annexed in July if this goes by the schedule. Will need to update the zoning map in the fall.
Chairman Briar Johnson of the Pike County Commissioners was there the Edwards family, the Molasky Group, etc. when this was discussed so this has not been a surprise discussion. There will need to be some service development issues to update.
Motion to accept the applications and move forward. Approved.
Motion to adjourn 5:57 p.m.
Added: Pike County Times spoke with City Attorney Rob Morton after the meeting to try to understand what was happening and why. An open records request was also put down on paper for the intergovernmental agreements filled by City Attorney Rob Morton that are shown below as well as the open records request that was filled by Superintendent Scott Huckaby of the Pike County Water and Sewer Authority.
Morton gave a statement to Pike County Times that explained the quid pro quo between the City of Zebulon and the Pike County Water and Sewer Authority. There was a Memorandum of Understanding between the two entities related to the provision of water to Pike Plaza and to the VA facility were connected. City of Zebulon agreed to provide water to PCWSA to sell to Pike Plaza in exchange for PCWSA agreeing that the City of Zebulon would service the VA Clinic directly with water and sewer and it be annexed into city. Morton said specifically that it was understood that the VA facility would be annexed.
Timeline of Signed Agreements
2019 Memorandum of Understanding (MOU) City of Zebulon and Pike Water and Sewerage Authority (PCWSA)
Based on a Water Purchase Agreement from September 2, 2003 that has been amended since that time, the City of Zebulon and PCWSA agreed to an MOU to address the delivery and sale of water to the McLeRoy Development. The City of Zebulon agrees to sell water to the PCWSA for purposes of the PCWSA selling the water to the McLeRoy Development. PCWSA agrees to pay the wholesale/actual rate that the City of Zebulon pays the City of Griffin for the water plus a service fee of five percent which is intended to cover costs and help offset maintenance. PCWSA is responsible for any damage caused by PCWSA and/or its agents, and all other water connections must be a part of a separate water purchase agreement. Bobby Blalock, Mayor and Mark Whitley, Chairman of the PCWSA
February 20, 2020 - Memorandum of Understanding (MOU) City of Zebulon and Pike Water and Sewerage Authority (PCWSA)
Based on a Water Purchase Agreement from September 2, 2003 that has been amended since that time, the City of Zebulon and PCWSA agreed to a Water Purchase Agreement which allows Pike County to continue to purchase water from Zebulon for the purpose of serving residents and businesses of unincorporated Pike County and outside of the service territory of Zebulon, both parties agree that the City of Zebulon will provide water and sewer services to the VA development, and both parties understand that the VA property will be considered part of the Zebulon service territory based on the assurances of the developer, property owners, and City of Zebulon and that the property will be annexed into the City of Zebulon. Section 3 states specifically: “The parties understand that the VA property will be annexed into the city limits of Zebulon. Accordingly, Pike Authority agrees to cooperate with and support said annexation. Joe Walter, Mayor and Ron Snowden, Chairman of the PCWSA
May 27, 2020 – Development Agreement
The City of Zebulon and Pike County VA LLC and the Molasky Group (the Owner) signed a development agreement to serve the VA Clinic with water and sewer utilities based on the 2020 MOU with the City of Zebulon. The City of Zebulon agreed to design, permit, and construct water and sewer mains, lines, etc. to the VA. However, the agreement says that since the city did not have the resources at that time to extend the utilities to the clinic site and will have to obtain funding for it and since the owner intended to share in the cost of the design, permitting, and construction of water and sewer including easements. The Molasky Group agreed to pay $50,000 toward the design and permitting costs and $275,000 toward the construction of these services to the City of Zebulon with the agreement that the owner’s contribution would be reduced by grant funds if a grant was obtained. The payment of these construction costs would be deemed an in-kind contribution and would be in lieu of the Capacity Recovery Fee charged by the City for new meter installations and/or water and sewer connection fees. The City of Zebulon agreed to be responsible for the remainder of the costs in this project. This agreement also agreed to charge the same water and sewer rates to the VA Clinic that it would be paying inside of the city limits since the owner has agreed to submit an application to have the VA Clinic annexed into the city after its completion.
June 8, 2021 – Updated Water Purchase Agreement between the City of Zebulon and Pike Water and Sewerage Authority (PCWSA)
This built upon the Water Purchase Agreement from September 2, 2003 and its amendments as well as the Water Purchase Agreement and its amendments to define a new Water Purchase Agreement in which the City of Zebulon is willing to sell water to PCWSA on an ongoing and continuous basis with the PCWSA agreeing to buy a minimum of 50,000 gallons of water per month and sales being based upon the Zebulon Utility Service Territory. Requests for service will also abide by an agreement that all both residential, business, and industrial customers in the Limited Zebulon Utility Service area who need a line less than 4 inches will be a City of Zebulon customer and those who need a line larger than 4 inches will be a PCWSA customer with PCWSA having the option to defer new customers along existing Zebulon service lines to Zebulon by a majority vote of PCWSA.
June 17, 2021 – PCWSA Letter of Support to the City of Zebulon
Letter written by PCWSA Chairman Ron Snowden to Mayor Joe Walter advising that PCWSA voted unanimously to approve for the City of Zebulon to extend sewer service to STS Development and Pike Plaza with the support of the PCWSA.
January 19, 2022 – Letter to the City of Zebulon Mayor and Council
Pike County VA, LLC and its Manager submits a Letter of Intent in support of the Rezoning Application for the Department of Veterans Affairs Outpatient Clinic. “Applicant requests that the Application be granted.”
May 10, 2022 – Application for Preliminary Annexation Review
A signed application was submitted to the City of Zebulon by the Pike County VA Clinic LLC/Molasky Group to request that the City of Zebulon annex its property into the City of Zebulon. Newton M. Galloway of Galloway & Lyndall, LLP is the attorney for the Molasky Group. The property totals 11.21 acres. Permitted Title Exceptions include State and Pike County ad valorem taxes for the year 2020 and leans not yet due or payable as well as subsequent years, riparian rights (the rights of all landowners whose properties connect to a running body of water like a river or stream), easement from J. Williams Edwards to the Georgia Power Company in 1997, easement from R.W. Dunn to Georgia Power from 1927, and easement from James Joseph Edwards, Jr. and Christopher Carter Edwards to the Georgia Power Company in 2000.
May 19, 2022 – City of Zebulon Called Meeting
The discussion of the annexation and rezoning of the VA Facility. Pike County Times attended this meeting.
May 23, 2022 – Email to Pike County Times and City Administrator Larry Mitchum
City Attorney Rob Morton provided open records requests related to the annexation of the VA. Morton advised that the Pike Plaza MOU does not mention the VA Annexation, but the MOU related to the VA does.
“As stated to you previously, it was understood by the parties that in exchange for the City agreeing to sell the PCWSA water that would be then sold from the PCWSA to Pike Plaza, PCWSA would agree for the City to provide the water and sewer services to the VA and the VA property would be annexed. The unexecuted MOU between the City and PCWSA related to Pike Plaza, entered in 2019 does not specifically mention the annexation of the VA since that VA development had not yet started and was a separate project. However, the annexation of the VA is specifically addressed in the Executed MOU between the City and the PCWSA entered in 2020.”
Records of the Pike County Water and Sewerage Authority (PCWSA)
This is a synopsis of three years of minutes from the PCWSA.
May 16, 2018 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Steve Brown, Pike County Commissioner Tommy Powers, Ron Snowden, and Yvonne Langford to record the minutes. Member John Spraggins not present.
The VA Facility Report showed a discussion with Rod Wilson, the Zebulon Water Superintendent regarding the potential of providing water and sewer to the VA Clinic north of Zebulon. The service agreement between the City of Zebulon and PCWSA would expire on September 18, 2018. There was a discussion about whether the PCWSA could provide water and sewer to the VA location and the possibility of annexing the VA facility into the city if the site adjoining the City of Zebulon City Limits. “Discussion was held regarding the fact that no decision has been made regarding where the facility will be located and it would be premature to take any action.”
September 19, 2018 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Ron Snowden, and Steve Brown. Pike County Commissioner Tommy Powers and John Spraggins were not present. Also present: Water Superintendent Scott Huckaby, Dee McLeRoy, Eric McLeRoy, and two of their employees.
Dee McLeRoy addressed the PCWSA about his new development north of the City of Zebulon on Highway 19. It is 1.2 miles north of the Zebulon city limits. Discussion centered around PCWSA providing water and sewer to the development in cooperation with the City of Zebulon. Scott Huckaby, the Water Superintendent, agreed to attend the next meeting of the Pike County Board of Commissioners to discuss cost sharing with the county on the benefit of cost sharing on this possible project.
Huckaby also suggested the possibility of involving the Pike County Economic Development Authority.
October 24, 2018 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Ron Snowden, Pike County Commissioner Tommy Powers, and John Spraggins. Steve Brown was not present. Also present: Water Superintendent Scott Huckaby
A summary of a late September meeting between PCWSA Water Superintendent Scott Huckaby and City Administrator Larry Mitchum as well as a second meeting that took place on October 2 between PCWSA representatives and City of Zebulon representatives regarding a future sewer project for McLeRoy, Inc. The Board recommended that a letter be sent to City Administrator Mitchum suggesting that a study committee be formed between the two entities in preparation for this project.
December 11, 2018 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Ron Snowden, Pike County Commissioner Tommy Powers, and Steve Brown. John Spraggins was not present. Also present: Water Superintendent Scott Huckaby
The PCWSA directed PCWSA Attorney Rob Morton to draft a letter to the City of Zebulon to provide the PCWSA with answers to technical questions asked of the PCWSA by engineering firms in relation to water and sewer needs for the VA Clinic.
June 10, 2019 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Ron Snowden, and Pike County Commissioner Tommy Powers. Members Steve Brown and John Spraggins were not present. PCWSA Attorney Rob Morton and Water Superintendent Scott Huckaby.
PCWSA Attorney Rob Morton presented a Memorandum of Understanding (MOU) with the City of Zebulon regarding the McLeRoy Construction project north of Zebulon on Hwy. 19. If signed by the PCWSA, it will allow PCWSA to tap into Zebulon’s water line and provide water to McLeRoy Inc. and its customers. The City of Zebulon would be having a City Council Workshop on June 11, 2019 in which this would be included if the MOU was signed. Motion to approve the MOU and sign it. PCWSA Attorney Morton also provided a draft Water Purchase Agreement with the City of Zebulon that matched the original Water Purchase Agreement and its addendums that had expired in 2018. A motion to approve the draft submission was made and approved.
June 19, 2019 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at the meeting: Chairman Mark Whitley, Ron Snowden, and John Spraggins. Member Charles Duff was not present. Pike County Commissioner Tommy Powers was deceased. Also present: Water Superintendent Scott Huckaby.
Mr. Huckaby updated the Board on the McLeRoy Development and advised that it would be connected to the Zebulon water line in the very near future. PCWSA would be buying the water from Zebulon and selling it to McLeRoy Inc.
February 19, 2020 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at this meeting: Chairman Ron Snowden, Mark Whitley, and Britain Turner. Members not present: John Spraggins and Charles Duff. Also present: Water Superintendent Scott Huckaby, PCWSA Attorney Rob Morton, and County Manager (CM) Ron Alexander.
A draft MOU was presented to the Board from PCWSA Attorney Rob Morton regarding a water and sewer authority agreement for the VA Clinic on Hwy 19. It was noted at that meeting that this parcel would be annexed into the City of Zebulon at some time in the future. The minutes say that the City of Zebulon is trying to get financing and needed this MOU as part of the documentation. The PCWSA Board asked CM Alexander about the stance of the commissioners. CM Alexander said that he had been asked to look at the project informally, but that the Board of Commissioners had not made a formal statement. CM Alexander suggested that the wording in the MOU, particularly “territory” versus “parcel,” was vague and needed to be reworked so that it only included the parcel that the VA Clinic would be built upon. The PCWSA Board reworked the wording and a decision was reached for PCWSA Board Chairman Snowden to meet with PCWSA Attorney Morton for redrafting.
March 18, 2020 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at this meeting: Chairman Ron Snowden, Mark Whitley by phone, and Britain Turner. Also present: Water Superintendent Scott Huckaby, PCWSA Attorney Rob Morton
Chairman Snowden advised that the VA Clinic MOU was signed and delivered to the City of Zebulon. He also updated the PCWSA Board the agreement offered by the City of Zebulon that would closely mimic the previous agreement with the PCWSA in the county service area outside of the City of Zebulon. Customers wanting smaller than 2-inch lines would be serviced by the City of Zebulon and anything larger would be a PCWSA customer with the PCWSA purchasing the water and selling it to the customer.
August 27, 2020 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at this meeting: Chairman Ron Snowden, Mark Whitley, John Blakeney, Pike County Commissioner Briar Johnson, and Britain Turner by phone. Also present: PCWSA Attorney Rob Morton, Water Superintendent Scott Huckaby, System Engineer Shon Hampton.
Discussion about the expired City of Zebulon Water Service Agreement and which entity would supply water to which customers outside of the City of Zebulon’s service area. Member Whitley suggested a compromise with PCWSA having first right of refusal with customer taps that are 2 inches or larger within the blue service delivery area and outside of it in the county that would need to tie onto the City of Zebulon water lines. Any customers with lines that are below 2 inches would belong to the City of Zebulon.
May 20, 2021 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members present at this meeting: Chairman Ron Snowden, Mark Whitley, John Blakeney, Jeremy Craig. Not present: Pike County Commissioner Briar Johnson. Also present: PCWSA Attorney was Rob Morton, Water Superintendent Scott Huckaby, System Engineer Shon Hampton, County Manager Brandon Rogers, Josh Hopkins, Brent Karr, Zebulon City Administrator Larry Mitchum, Zebulon City Mayor Joe Walter, and Aaron Clark.
The Zebulon Service Delivery Contract was discussed in detail. It has a one-year agreement and will automatically renew at the end of the agreement with a 90 notice to cancel the contract. The intent of the agreement, which was approved, was to have cooperation between the parties with parameters to define the service area, service fee for water, amount of water made available to PCWSA, etc.
December 16, 2021 – Pike County Water and Sewerage Authority (PCWSA) Regular Meeting Minutes
Members in this meeting were as follows: Chairman Ron Snowden, Pike County Commission Chairman Briar Johnson, Jeremy Craig, Mark Whitley, and John Blakeney by phone. Also present: PCWSA Attorney Rob Morton, Water Superintendent Scott Huckaby, and County Manager Brandon Rogers.
Water Superintendent Huckaby advised that he received a phone call from Zebulon Mayor Joe Walter regarding a Rural Innovative Fund (RID) grant that Zebulon is pursuing with regard to the McLeRoy development to provide sewer services to Pike Plaza. The grant was due on January 14, 2022 and asked PCWSA for a letter of support for the project. Motion was made and approved to do this. PCWSA also agreed to a discussion with Zebulon Mayor Joe Walter on amending the MOU for sewer services and how billing, maintenance, and other issues would be addressed between the two entities.
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