(c) City of Manassas Park In December 2008, pursuant to the terms of a Water Capacity Purchase and Service Agreement (the Agreement), the Authority sold 1.4 MGD of wholesale water capacity to the City of Manassas Park for $9,870,000. The rate for water service will be based on the wholesale rate charged by Fairfax Water to the Authority, plus other charges and costs which are defined in the Agreement. (d) Prince William County Credit Effective December 31, 2012, the Authority entered into an Amendment to the Modification and Assumption Agreement with the County (the Amendment), whereby the Authority would assume responsibility for paying the County’s existing obligation towards UOSA debt service. Under the terms of the Amendment, the Authority established a non-cash credit for the benefit of the County in the amount of $13,782,300, representing previous payments made by the County toward UOSA debt service under existing agreements. The County may use this non-cash credit to purchase water and sewer availability, or any asset of the Authority offered for sale by the Authority. The non-cash credit will be reduced by the value of any such sale. In order to access the non- cash credit, the County must provide to the Authority a duly adopted resolution of the BOCS authorizing the application of the non-cash credit for a specific transaction. To date, the County has used $1,804,188 of the non-cash credit toward availability fees for various County facilities. Additionally, an agreement has been executed for the sale of a part of the 57.86 acres of land (the Occoquan Forest site) from the Authority to the County for $2,000,000, to be paid by the County using the non-cash credit. The sale will be completed per the terms of the sale agreement once the facility has been fully decommissioned in accordance with state and federal requirements, by the end of March 2021. As of June 30, 2020, the remaining amount of the non-cash credit available to the County is $9,978,112, of which $154,514 has been approved by the BOCS for use in earmarked projects. (e) Virginia Department of Transportation (VDOT) VDOT requires all entities performing work in the VDOT right-of-way to post a continuous bond or surety to insure compliance with the conditions of land use permits that are issued by VDOT and to guarantee the satisfactory performance of the work. Through its commercial insurance policies, the Authority meets VDOT’s requirements for liability coverage for personal injury, property damage and lawsuits that may arise from the work performed under the permits. (f ) Other Commitments The Authority has entered into commitments for capital projects and operating expenditures totaling approximately $28.6 million as of June 30, 2020. These commitments are goods and services ordered, but not yet received as of June 30. (g) Operating Leases In April 2016, the Authority executed an agreement to lease commercial industrial space in Woodbridge, VA to be used as warehouse space. The original lease term was for two years, with an expiration date of March 31, 2018, and was then amended and extended for an additional six years through March 31, 2024. Payments made under the lease during the years ended June 30, 2020 and 2019 were $42,869 and $42,240 respectively. In January 2018, the Authority executed an agreement to lease additional commercial industrial space in Woodbridge, VA to be used as warehouse space. The original lease term is for six years and three months, with an expiration date of March 31, 2024. Payments made under the lease during the year ended June 30, 2020 and 2019 were $66,707 and $65,893 respectively. In April 2018, the Authority executed an agreement to lease additional commercial office space in Woodbridge, VA to be used as office space while the Authority constructs a new building on the Raymond L. Spittle Building campus. The original lease term is for three years and nine months, with an expiration date of December 31, 2021. Payments made under the lease during the year ended June 30, 2020 and 2019 were $367,060 and $295,534 respectively. NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 75
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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