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June 9, 2010 Regular Board Meeting

Posted on: June 9th, 2010

Call to Order – Chairman White called the meeting to order at 5:30 p.m. Board members present were J. B. White, Bob Harris, Harvey Norris, Wesley Keber & Burt Jones; Authority staff members’ present were Marcie Seleb and Joyce Hosey. 
Opening Prayer – Mr. Norris opened the meeting with a prayer.
Approval of Minutes from Previous Meeting – Mr. Harris made a motion to dispense with the reading of the minutes from the May 11, 2010 meeting and approve the same. This was seconded by Mr. Norris and approved unanimously.
Fiscal Year 2011 Budget – Ms. Seleb made a presentation on the proposed FY 2011 budget. She began by reviewing the Authority’s key economic indicators. The customer base has been stagnant for the last three years. A few new taps have been added, but a number of accounts are inactive due to property vacancies. A total of 4,699 bills was printed for the June 1 billing, four less bills than the previous year. Surprisingly, water usage has been up eight-percent over the previous year with billing increased by fifteen-percent. Overall, the Authority is in a sound financial situation, but no growth can be anticipated in the short term.
As part of the proposed budget, a conservative estimate of water and sewer revenue, with a five-percent reduction over the current year, was used. No rate increase was proposed. In response to the continued slow economy, one staff position was proposed for elimination with one employee to be transferred from water production to water distribution. Monthly staff furloughs would be eliminated.
The combined operations budget anticipates $2,743,300 in income with $2,741,300 in expenses and debt service with a net positive cash flow of $2,000. Projected spending from capital recovery fees and Special Purpose Local Option Sales Tax would be $504,000. Additional detail on budget items was shown on slides and on the line-item budget, copies of which are attached and made a part of these minutes.
A motion was made by Mr. Keber to adopt the FY 2011 budget as written. This was seconded by Mr. Norris and approved unanimously.
Consider Formal Agreement Regarding Flovilla Sewer System – Board members considered a formal agreement with the City of Flovilla regarding an agreement on the service area for the city’s proposed sewer system. After the May meeting, attorney Will White recommended a formal agreement be used in lieu of a letter of understanding. Harvey Norris, who is also the mayor of Flovilla, stated that he would prefer that the requirement for the payment of one dollar be removed from the agreement. A motion was made by Mr. Jones to authorize Chairman White to sign the formal agreement with Flovilla once revised to the satisfaction of both Mr. Norris and attorney White. This was seconded by Mr. Harris and approved by a vote of four to zero with Mr. Norris abstaining.
Consider Developing Sewer Service Delivery Strategy – As part of the City of Flovilla’s sewer system project, Butts County and the three cities must revise the existing Service Delivery Strategy, which does not contain any component for sewer. Ms. Seleb explained the requirements of Georgia’s Service Delivery Strategy law (HB 489). Ms. Seleb suggested that the Authority take the lead in developing a comprehensive mapped sewer service strategy that would be agreeable to the local governments. A motion was made by Mr. Jones directing Ms. Seleb to begin this project. This was seconded by Mr. Keber and approved unanimously.
Update on EIP/One Georgia Grant Applications – Ms. Seleb updated the Board on the status of the EIP/OneGeorgia grant applications. The OneGeorgia grant has been submitted with a decision on funding expected within a few days. It is expected that the Department of Community Affairs will request the final application for the EIP grant and release the developer for construction shortly.
Select Engineer for Isaac Head Road Design – Ms. Seleb advised the Board of the following proposals she has received for engineering the Isaac Head extension.

  • Rindt-McDuff – $3.00 per linear foot; price may drop after first project; making a total price on Isaac Head of $12,372.
  • Woodard & Curran – $8,200 minimum; price thereafter $2.05 per linear foot; total price on Isaac Head $8,200.

A motion was made by Mr. Norris hire Woodard & Curran to engineer the Isaac Head Road extension. This was seconded by Mr. Harris and approved unanimously.
Manager’s Report

Update on Construction Projects

  • System Maintenance – The crew continues to do valve and hydrant marking. 
  • Colwell Road Connector – Plans were received today for the Colwell Road connector and now the I-75 bore is ready for bidding.
  • Shop Site Improvements – The crew is replacing existing fencing and signage at the Brownlee Road shop. After discussion, a tentative date of June 30, 2010 was planned for tree planting dedication for Michael Watts, an employee who was tragically killed in an automobile accident last year.

Operations Report – Water billing for May was up $13,000 from April and was the biggest May ever at $203,918, with an active customer base of 5,207. Sewer billing for May was up $6,000 from April and was the biggest May ever, at $32,402 with an active customer base of 127.

The average daily water pumped to the Authority, Jackson and Jenkinsburg from the Ocmulgee and Stewart plants was 2.1 MGD, with maximum of 2.6 MGD. The rolling 12-month average loss was 11.8%. The total amount of water pumped in May 2010 per plant was: Burford – 58 MG; Stewart – 6 MG. The average wastewater influent at the Bucksnort Ranch LAS was .186 with an average daily effluent of .183/.550 MGD and a maximum 7-day effluent of .254/.550 MGD.

Georgia Environmental Facilities Authority (GEFA) Resolution – Ms. Seleb advised the Board that GEFA is requesting a new resolution for the Authority’s original loan dating back to September 14, 1989. This is part of GEFA’s effort to package its Georgia Fund loan portfolio for resale on the bond market. A motion was made by Mr. Norris directing Chairman White to sign this resolution. This was seconded by Mr. Keber and approved unanimously.
Biological Monitoring Report for Towaliga Watershed Ms. Seleb called the Board’s attention to the recently completed report on biological health in the Towaliga watershed. This biannual report is required by EPD as part of the ongoing watershed assessment in the Towaliga basin. Habitat conditions at the study sites were found to be moderately to fairly degraded. A copy of this report is attached and made a part of these minutes.
Consider Reduction in Hydrant Meter Charges for Tim Cawthon – Mr. White has been approached by Tim Cawthon asking for a reduction in the bill for hydrant water used by Peek Construction on the East Ball Road project. Mr. Cawthon had the meter for 36 weeks, incurring a $100 per week charge in addition to usage. Mr. Cawthon said that he only used the meter approximately four weeks. Mr. White told Mr. Cawthon that he would ask the Board to consider a reduction, but was unable to guarantee anything. A motion was made by Mr. White to approve a reduction of 50% in the weekly charge. This was seconded by Mr. Harris and approved unanimously.
Financial Report – Ms. Seleb went over the financial summary for Water & Sewer Operations and SPLOST through May 2010. With 92% percent of the fiscal year passed, water operations revenues are 105% of annual budget and expenses are 78% of annual budget. Water operations cash has increased by $582,865. With 92% percent of the fiscal year passed, sewer operations revenues are 110% of annual budget and expenses are 79% of annual budget. Sewer operations cash has increased by $93,860.
A copy of the financial summaries, as well as combined balance sheets and income statements is attached and made a part of these minutes.
Review Bills Paid – Board members reviewed check registers and credit card statements for the month of May 2010.
A copy of these check registers is attached and made a part of these minutes.
Adjourn – A motion was made by Mr. Harris to adjourn meeting at 6:45 p.m. This was seconded by Mr. Jones and approved unanimously.