Call to Order – Chairman White called the meeting to order at 5:30 p.m. Board members present were J. B. White, Harvey Norris, Burt Jones, Eddie Roberts, Jr. & Eddie Ford. Terry Nolan, a property owner from Brownlee Road was in attendance. Also present were Marcie Seleb, general manager and Joyce Hosey, clerk to the board.
Opening Prayer – Harvey Norris opened the meeting with a prayer.
Approval of Minutes from Previous Meeting – Eddie Roberts made a motion to dispense with the reading of the minutes from the April 9, 2013 meeting and approve same. This was seconded by Harvey Norris and approved unanimously.
Formally Approve Surety/Obligee Agreement for Hwy. 36 & 16 Sewer Projects – Board members had earlier in the month agreed by telephone vote for chairman J.B. White to sign an agreement with United Surety Company. Under this agreement, Davidson Hydrant and Utility Services will complete work on the Hwy. 36 and Hwy. 16 sewer projects that was left incomplete by Jones General Contracting. The United Surety Company will cover all costs as provided in the original project bonds. Ms. Seleb advised the board to officially ratify this action by vote during this regular meeting.
United Surety Company has agreed to reimburse the Authority for all costs to complete each of the remaining items of work for both projects in accordance with the terms, covenants, and conditions of the original contracts with Jones General Contracting. United Surety Company has approved the cost proposals for this work to be performed by Davidson Hydrant and Utility Services.
A motion was made by Mr. Roberts for the Authority to enter into the agreement with United Surety Company for the Hwy. 36 & Hwy. 16 Sewer Projects. This was seconded by Mr. Norris and approved unanimously. Mr. White abstained from the vote because he owns property near both projects.
A copy of the agreement is attached and made a part of these minutes.
Consider Contract with Davidson Utility & Hydrant for Hwy. 16 Sewer -Ms. Seleb stated that the contract for Davidson Utility and Hydrant is not ready for presentment because the contractor is struggling to free up capacity for required payment and performance bonds. She suggested that the Board authorize Chairman White to sign the contract when it is ready. A motion was made by Mr. Norris to authorize execution of the contract with Davidson Utility & Hydrant for Hwy. 16 sewer when it is available. This was seconded by Mr. Ford and approved unanimously. Mr. White abstained from the vote.
Receive Petition for Water Extension on Portion of Nathan Thaxton Road – Ms. Seleb presented a petition for a water extension request from property owners on Nathan Thaxton Road. This petition is from the section running from Brooks Road back to Hwy. 36. The extension measures 1.1 miles. Eleven persons having signed the petition, resulting in a customer density of ten customers per mile. A motion was made by Mr. Jones to accept the petition for water extension on a portion of Nathan Thaxton Road and send out letters to property owners. This was seconded by Mr. Roberts and approved unanimously.
A copy of this petition is attached and made a part of these minutes.
Consider Alternatives to Refinance Sandy Creek Loan – Ms. Seleb advised the Board that the $380,725 balance due on the Sandy Creek property loan is due on June 15, 2013.
The loan is currently financed through Hamilton State Bank which has been holding a certificate of deposit now valued at $725,000 as collateral. The loan was for 60 months with the bank charging the Authority one-percent more on the loan than interest on the certificate of deposit.
Quotes have been obtained from both Hamilton State Bank and United Bank to refinance the loan for an additional sixty months to pay it off, again using a certificate of deposit as collateral. The net total cost of the loan with United Bank would be $1342. Net total cost with Hamilton State Bank would be $4606.
A motion was made by Mr. Ford to refinance the Sandy Creek loan with United Bank. This was seconded by Mr. Norris and approved unanimously.
A copy of detailed quotes from each bank is attached and made a part of these minutes.
Consider Liberty Mutual for Supplemental Insurance – Ms. Seleb reported that staff had recently taken proposals from Liberty Mutual and Allstate for supplemental cafeteria plan insurance benefits. She and Administrative services manger, Vickye Smith, recommend Liberty Mutual as the best overall option for employees. A motion was made by Mr. Jones to select Liberty Mutual as the Authority’s supplemental insurance provider, replacing AFLAC in that capacity. This was seconded by Mr. Ford and approved unanimously.
Approve Purchase of Pickup Truck – Ms. Seleb advised the Board that a new pickup was in the budget for the current year. The Georgia state contract price is $24,096 for a 2013 Ford F150 V8 super cab from Alan Vigil Ford. Distribution and collection superintendent Rus Nail has obtained a quote of $18,788 for a truck with the exact same specification from Covington Ford in Monticello.
A motion was made by Mr. Ford to approve the purchase of a Ford F150 pickup truck from Covington Ford in Monticello at a cost of $18,788. This was seconded by Mr. Jones and approved unanimously.
Short Term Capital Improvements Plan – Ms. Seleb presented a draft five year capital improvements plan for discussion. She began her presentation with a review of her estimated schedule of receipt of funds from the 2013-19 Special Local Option Sales Tax (SPLOST).
Water system projects include $4 million in total construction with $2 million funded through system operations and the balance funded through capital recovery fees, grants and SPLOST. Sewer System projects include $1.2 million funded through system operations and SPLOST.
Board members discussed the pros and cons of the specific listed projects and the priorities for timing each project. Harvey Norris stated that he would like to see the Walter Moore/Paul Maddox extension completed as soon as possible in order to improve fire flows on those roads. He and Ms. Seleb will contact the City of Jackson to inquire about funding participation as this will benefit City customers on Paul Maddox Road.
It was agreed to hold off on adoption of the plan until it could be adopted as part of the Fiscal Year 2014 budget.
Manager’s Report
Construction Update
Hwy. 36 Sewer Project – Work on the Hwy. 36 Sewer project has been completed by Davidson Hydrant and Utility Services. The contractor is carrying out testing and cleanup prior to inspection by the Authority.
Hwy. 16 Sewer Project – This project is ready to go as soon as the contractor obtains bonds.
Meter Replacement Project – Ms. Seleb advised the Board that Books 1 – 14 have been completed. The contractor is working on Books 15 – 16. Approximately sixty polybutylene service lines have been replaced with copper by Authority staff over the last month.
Operations Report
At $194,686, water billing for April 2013 was down 6% from the previous month and up 7% from April 2012. Sewer billing for April 2013 was up 11% from the previous month and up 15% from April 2012.
The total water customer base was 5,297 with active water customers numbering 4,761. Four regular taps, one construction tap and one meter were sold in April. The total sewer customer base was 129 with active sewer customers numbering 124.
The average daily finished water pumped in April to the Authority, Jackson and Jenkinsburg from the Burford and Stewart plants was 2.1 million gallons per day, with a maximum of 2.4 million gallons per day. The rolling 12-month average loss was 10.6% with the current monthly average loss at 13.8%. The total amount of finished water pumped in April by plant was: Burford – 57 million gallons; Stewart – 6 million gallons.
The average wastewater influent at the Bucksnort Ranch Land Application System was .236 million gallons with an average daily effluent of .223 million gallons and a maximum 7-day effluent of .329 million gallons.
Financial Report – Ms. Seleb went over the financial summary for Water & Sewer Operations, Capital Recovery Fees and Special Purpose Local Option Sales Tax (SPLOST) for April 2013. For the month, water operations income was $206,736 and expenses were $93,502. Water capital recovery fee revenue for the fiscal year so far was $13,325 with expenses of $7,129. Sewer operations income for April was $41,101, and expenses were $41,101. Sewer capital recovery fee revenue for the fiscal year thus far was $187.474 with expenses of $11,578.
The Authority has used $177,192 of 2007-12 SPLOST to pay monthly debt on the Bucksnort Ranch expansion loan. To date, $577,758 remains in 2007-12 SPLOST funds for this purpose.
Total cash on hand through the end of April was $6,003,788. This is $708,264 over the June 30, 2012 balances. Copies of financial summaries, combined fund balance sheets, and combined fund income statements are attached and made a part of these minutes.
Review Bills Paid – Board members reviewed check registers and credit card statements for the month of April 2013. Copies of these documents are attached and made a part of these minutes.
Adjourn – A motion was made by Mr. Jones to adjourn meeting at 7:00 p.m. This was seconded by Mr. Ford and approved unanimously.