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September 17, 2013 Regular Board Meeting

Posted on: September 17th, 2013

Call to Order – Chairman White called the meeting to order at 5:30 p.m. Board members present were J. B. White, Harvey Norris, Eddie Roberts, Jr., and Eddie Ford; also present was Michelle Cole, the Authority’s insurance broker, Marcie Seleb, general manager and Joyce Hosey, clerk to the Board.
Opening Prayer – Mr. Norris opened the meeting with a prayer.
Approval of Minutes from Previous and Called Meetings – Mr. Roberts made a motion to dispense with the reading of the minutes from the August 13th & 20th meetings and to approve the same.  This was seconded by Mr. Norris and approved unanimously.
Impact of Health Care Reform on Authority Coverage – Michelle Cole of Michelle Cole and Associates spoke to the Board about the reforms that will be affecting health care.  Ms. Cole explained that many insurance companies are offering customers the option to renew early so that businesses can avoid compliance with the National Health Care Reform Act which becomes effective on January 1, 2014.  She explained that with an early renewal, the Authority would have an additional ten months of coverage under the old law which could serve as protection in case prices rise dramatically in the new year.
The Authority’s current health insurance provider, Coventry, has offered to renew the policy for an additional twelve months effective December 1, 2013 with a price increase of 33%.  Ms. Cole had also priced less expensive plans with Coventry and comparable plans with Aetna, Humana, Blue Cross Blue Shield, and United Health.  The pricing summary is attached and made a part of these minutes.
After a discussion of options, board members were in agreement that to hold existing coverage until the policy expires in February 2014 in order to minimize changes, immediate expenses, and confusion for employees.  A motion by Mr. Ford recommended that the Authority keep the same coverage until the annual renewal in February 2014.  This was seconded by Mr. Roberts approved unanimously.
Consider Bids on West Butts Tank Project – Ms. Seleb reviewed bids for the West Butts elevated tank project which were opened on August 27th.   There were three bidders on the composite tank option and two on the multi-leg option.  Phoenix Tank had the lowest price on both with a total bid of $1,886,311 on the composite tank and $1,442,570.  The bid tabulation is attached and made a part of these minutes.
In a life cycle cost comparison for the two tank types, the multi-leg tank had the lowest cost even after sixty years of maintenance.  This comparison is attached and made a part of the minutes.
Ms. Seleb expressed concerns about the bid pricing. She presented comparable bid prices for tanks of similar capacity and height over the past two years.  Prices varied widely, but all bid totals were significantly under the lowest price offered for the West Butts project.  The comparable pricing is attached and made a part of these minutes.  A motion was made by Mr. Ford for Ms. Seleb to contact Georgia Environmental Finance Authority (GEFA) and determine if it would be possible to rebid this project in several months.  This was seconded by Mr. Roberts and approved unanimously.
Consider Contract for Hwy. 16 Sewer Mitigation Project – Ms. Seleb advised the Board that Robert Colby, agent for US Surety, opened bids for the Hwy. 16 Sewer Mitigation Project on August 20, 2013.  There were two bids received: Ronny Jones Construction – $348,000 and Strack Construction – $329,000.
Because these prices were so much higher than the most recent price quoted from Davidson Hydrant and Utility, Mr. Colby went back to Davidson to attempt to negotiate a price.  Davidson Hydrant & Utility was unable to bond the project, but has arranged for another contractor, Brtu Construction, to be the prime contractor with Davidson Hydrant & Utility as subcontractor at a total price of $260,155. This is $24,000 higher than Davidson’s last quote.
A motion was made by Mr. Norris to approve BRTU Construction as the prime contractor at a price of $260,155, with the stipulation that Davidson Hydrant & Utility serve as subcontractor and do all the work.  This was seconded by Mr. Roberts and approved unanimously.  Mr. White abstained from the vote because he owns property in the area.
A statement of qualifications from BRTU Construction Company is attached and made a part of these minutes.
Consider Revision to Personnel Policy – After an initial discussion of reformatting the Personnel Committee to include only two board members and the Authority General Manager, the Board decided to eliminate the Personnel Committee all together.  When personnel issues arise that should be elevated to the board, they will be brought before the entire Board at the monthly meetings.  Ms. Seleb will rework the Personnel policy for the Board’s consideration at the regular October meeting.
Fiscal Year (FY) 2013 Audit Proposal from Haisten and Johnson – A motion was made by Mr. Norris to accept the proposal conducting the FY 2013 Audit from Haisten and Johnson at a cost of $5,250.  This was seconded by Mr. Roberts and approved unanimously.
A signed copy of this proposal is attached and made a part of these minutes.
Manager’s Report

Request for More Hydrants in Harbour Shores Subdivision – Ms. Seleb advised the Board that Thomas Hicks has requested that more fire hydrants be installed in the Harbour Shores subdivision.  The Board determined that when hydrants were installed according to adopted spacing standards at the time of construction, additional hydrants will only be installed if property owners pay for materials.

Donation Request – Ms. Seleb advised the Board that the Authority has been asked to make a donation to the Ernest Biles Golf Tournament.  All donations are used to provide sports scholarships to children participating in the Butts County Recreation Department.  The Board agreed to make a donation of $500.

Consider United Bank Investment Certificates of Deposit (CD’s) – A motion was made by Mr. Roberts to use United Bank as an agent to make investments in short term CD’s for the Authority.  This was seconded by Mr. Ford and approved unanimously.

Georgia Diagnostic Classification Center (GDCC) – Ms. Seleb advised the Board that she was informed that the GDCC will be going back on one of its wells in June of 2014.  This would be a drop in purchase of 120,000 to 150,000 gallons a day, or about 40% of the total now used by the GDCC.

Hire Water Plant Operator – A motion was made to hire Rick Titshaw as a water plant operator trainee.  This was seconded by Mr. Roberts and approved unanimously. Mr. White abstained from voting as his wife is related to Mr. Titshaw.

Hwy. 36 Sewer – The new Hwy. 36 Sewer line is in use with two new customers tied onto the system.

Meter Replacement Project – Ms. Seleb advised the Board that Mack Jones Construction has completed the installation of the original meter replacement project.  Approximately twenty nonfunctional meters have been found. Mueller is responsible for correcting this.

Tom Goddard Water Main Extension – The crew is 100 feet from the completion of the Tom Goddard main extension and ready to tie in and begin the extension on Nathan Thaxton Road up to Brooks Road.

Operations Report

Water billing for August 2013 was $208,344, nearly equal to the billing for July, and down 9% from August 2012.  Sewer billing for August 2013 was $38,042, up 10% from July 2013 and up 23% from August 2012.

The total water customer base was 5,308 with active water customers numbering 4,776.  One regular tap was sold the month of August.  The total sewer customer base rose by two to 131, with active sewer customers numbering 128.

The average daily finished water pumped in August to the Authority, Jackson and Jenkinsburg from the Burford and Stewart plants were 2.2 million gallons per day, with a maximum of 2.6 million gallons per day.  The rolling 12-month average loss was 13.8% with the current monthly average loss at 16%.  The total amount of finished water pumped in August by plant was: Burford – 72 million gallons; Stewart – 10 million gallons.  It was noted that due to the extremely rainy summer, there has been a significant drop in water usage as compared to the previous year.

The average wastewater influent at the Bucksnort Ranch Land Application System was 252,000 gallons per day with an average daily effluent of 191,000 gallons per day and a maximum 7-day effluent of 297,000 million gallons per day.

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 August 2013. Water operations income was $215,498, and expenses were $234,717.  The balance in the water capital recovery fee fund was $311,959.  Sewer operations income for August 2013 was $42,247, and expenses were $34,931.  The balance in the sewer capital recovery fee fund was $34,947.
The Authority continues to use 2007-12 SPLOST to pay the monthly debt on the Bucksnort Ranch expansion loan.  As of August 31, 2013, $512,795 remained in 2007-12 SPLOST funds for this purpose.
SPLOST income for 2013-19 was $147,234 and SPLOST-TATV income of $13,635 for a combined total of $160,868.  After inquiry, United Bank has agreed to move the Authority’s 2013-19 SPLOST funds to an interest-bearing account.
Total cash on hand through the end of August 2013 was $6,166,707.  This is $3,295 under the June 30, 2013 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 August 2013.  Copies of check registers and credit card statements are attached and made a part of these minutes.
Adjourn – A motion was made by Mr. Norris to adjourn meeting at 7:30 p.m. This was seconded by Mr. Ford and approved unanimously.