ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, February 5, 1997 TAG: 9702050076
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: CHRISTIANSBURG
SOURCE: KATHY LOAN STAFF WRITER
Monday, the Public Service Authority delayed awarding the bids for the water and sewer line extensions while the hospital and the authority gather additional information. The delay came after discussing the matter both in open and executive sessions.
When the bids were opened Jan. 23, hospital officials were not pleased that the lowest bids were more than $260,000 over the engineers' estimate - made two years ago.
"A quarter million dollar surprise is not something we anticipated," Michael Gates, project manager for the new hospital, told PSA members Monday.
The hospital is offering to pay the additional $264,000 if it can recoup that money through connection fees that will be paid by other customers and businesses as the Bethel-Tyler Road (Virginia 177) area develops.
In November 1995, the county approved a utilities agreement with Radford Community to provide water and sewer service to the site. Under the contract, the hospital will pay nearly $2 million to extend county utility lines beneath I-81. The hospital could recoup a small portion of that amount, some $300,000, should its new building spur related development nearby.
"Because we're putting in utilities in excess of our needs, the PSA agreed to allow us to recoup connection fees" up to $300,000, Gates said after the meeting.
Now, the hospital would like to extend that cap to cover the increased cost of bringing the utilities to the community.
The hospital will sit on 50 acres of a 112-acre site that Radford Community bought from three landowners in November for $1.06 million. The state health commissioner gave final approval in September to Radford Community to build the $30.2 million facility. A 97-bed, 238,371-square-foot building is planned
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