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July 8, 2014 Regular Board Meeting

Posted on: July 8th, 2014

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., Burt Jones & Eddie Ford. Staff members present were General Manager Marcie Seleb and Joyce Hosey, Clerk to the Board.
Election of Officers for Fiscal Year 2015 – Mr. Ford made a motion to retain J. B. White as Chairman, Harvey Norris as Vice-Chairman, and Eddie Roberts as Secretary- Treasurer. This was seconded by Mr. Roberts and approved unanimously.
Approval of Minutes from June 17th & June 25th Meetings – Mr. Roberts made a motion to dispense with the reading of the minutes from the June 17th & June 25th meetings. This was seconded by Mr. Norris and approved unanimously.
Fiscal Year 2015 Budget & Rate Revision – Ms. Seleb reviewed the proposed Fiscal Year (FY) 2015 Budget, which had been modified based upon comments from the regular June meeting. The major change is an average five-percent across the board rate increase. Board members reviewed comparable rates from surrounding communities along with proposed rate tables. These are attached and made a part of these minutes.
Even with the rate increase, water operations is expected to have a negative cash flow of $124,400 and sewer operations is projected to have a negative cash flow of $19,800. When new capitalized assets are removed from expenses, water operations would have a projected income of $545,100 and sewer operations would have a projected income of $201,700.
Mr. White made a motion to approve the proposed rates as presented. This was seconded by Mr. Ford. The motion passed with Mr. White, Mr. Norris, Mr. Roberts, and Mr. Ford voting for and Mr. Jones voting against. A copy of the rate comparison chart is attached and made a part of these minutes.
Ms. Seleb advised the Board of two minor expenses that were added to the budget since the previous Board meeting. These included $20,000 for water quality analysis equipment within the distribution system and $10,000 for a tractor equipment storage shed at the Bucksnort Ranch wastewater facility.
Mr. Norris made a motion to adopt the revised FY 2015 Budget. This was seconded by Mr. Roberts and approved unanimously. A copy of the FY 2015 budget is attached and made a part of these minutes.
Request for Water in Lot in both Butts and Lamar Counties – Gary Lapides – Ms. Seleb reminded the Board that in June, Gary Lapides had requested a water tap on a lot on Short Road which is partly in Lamar County and which would be served by an Authority main that runs in Lamar County to the Truckstop Way lift station. The Board had tabled action on the request until it could be determined which county would be collect fees and property taxes on the lot. Ms. Seleb had learned from Butts County that taxes would be split between the two counties and that any building permit would be issued from the county where the building would lie.
Mr. Jones made a motion to approve Gary Lapides’ request for a water tap on the Short Road lot at the out-of-county water tap and usage rate. This was seconded by Mr. Ford and approved unanimously.
Haisten & Johnston, P. C. Audit Proposal – Ms. Seleb advised the Board of the proposed fee of $5,400 from Haisten & Johnston for Fiscal Year 2014 audit. This is an increase of $150 from Fiscal Year 2013.  A copy of the proposal is attached and made a part of these minutes.
Mr. Roberts made a motion to enter into an agreement with Haisten & Johnston for the FY 2014 audit at a cost of $5,400. This was seconded by Mr. Ford and approved unanimously. A copy of the signed agreement is attached and made a part of these minutes.
Manager’s Report 

Construction Update

Hwy. 16 West Sewer – All construction has been completed, but the newly laid pipe must be cleaned and survey results are not yet in hand. A notice has been issued reminding the contractor that liquidated damages will be charged for any work not completed by July 1, 2014.

Hwy. 16 East Sewer – The contractor, Crawford Grading and Pipeline, will be starting in August.

Nathan Thaxton Road – About 2,000 linear feet of pipe has been laid between Brooks Road and Hwy. 36 and crew has run into undiggable rock. Quotes for blasting are being obtained.

Bucksnort Ranch LAS – Board members were advised that sludge removal is in progress from the polishing pond at the LAS.

Trihalomethanes (THM’s) & Haloacetic Acids (Haa5’s) – Board members were advised of results from the first full year of Stage 2 Disinfection By-products analysis are completed well under maximum allowed levels. A copy of the results is attached and made a part of these minutes.

Discolored Water Incident at Ready Pac – Board members were advised that on June 23-24, water within the Ready Pac salad plant was discolored due to high levels of iron and manganese. This was not a health concern. While the minerals appeared to be from sedimentation dislodged from cast iron pipe in the area, the exact cause was undetermined. Roughly 800,000 gallons flushed from the system during this incident.

Ms. Seleb asked the Board to consider purchase of an on-hydrant quality monitoring device. This would allow the Authority and Ready Pac to constantly monitor the distribution system on Riverview Drive for pressure transients, chlorine, pH and turbidity. The cost of the monitor is estimated $7,000. Board members agreed that the purchase of the monitoring device was a good idea.

Operations Overview – Water and sewer pumping and billing numbers for the month of June were reviewed. Water billing for June 2014 was $229,859, up 1% from the previous June. Sixty-seven million gallons of water were pumped to the system during June. Two new water service taps were sold during the month. The current monthly water loss estimate was 13.7%, with the rolling annual average loss at 11.8%.

Sewer billing for June 2014 was $55,325, up 33% from the previous June. Average influent at the Bucksnort Ranch LAS was 300,000 gallons per day during June. No new sewer services were sold during the month.

Financial Report – Ms. Seleb went over the financial summary for Water & Sewer Operations, Capital Recovery Fees and SPLOST through June 2014. With the end of the fiscal year, Water Operations has brought in 124% of budgeted revenue and used 76% of funds budgeted for expense. Sewer Operations has brought in 117% of budgeted revenue and used 87% of funds budgeted for expense. Through June 30th, $548,955 has been collected in 2013-19 Special Purpose Local Options Sales Tax (SPLOST). Total cash on hand at the end of June was $6,879,569.
The financial summary reports, combined balance sheets, and combined income statements are attached and made a part of these minutes. Board members also reviewed copies of check registers for June 2014 which are also attached and made a part of the minutes.
Adjourn – Mr. Norris made a motion to adjourn the meeting at 6:15 p.m. This was seconded by Mr. Roberts and approved unanimously.