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., & Eddie Ford. Staff members present were Marcie Seleb, general manager, and Alyssa Hopson. Chairman White welcomed Ms. Hopson as the new clerk to the board and thanked Joyce Hosey, the previous clerk, for her service.
Approval of Minutes from May 10, 2016 Meeting – Mr. Roberts made a motion to dispense with the reading of and to approve the minutes from the May 10, 2016 meeting. This was seconded by Mr. Norris and approved unanimously.
Excavator Proposals – Ms. Seleb noted that a larger excavator had been included in the current fiscal year budget to increase productivity and dig rock without blasting. She presented two proposals for a three-year lease/purchase to the Board. The total three-year net cost offered for a Komatsu PC 210LC-11 from Tractor and Equipment Company was $178,344 and a comparable Caterpillar 323 from Yancey Brothers had a net cost of $183,021. A motion was made by Mr. Norris to enter into the three-year lease/purchase for the Komatsu PC 2410LC-11. This was seconded by Mr. Norris and approved unanimously. Copies of both proposals and a detailed side by side comparison are included and made a part of these minutes.
Consider Revision to Personnel Policy – Ms. Seleb presented draft changes to the discipline section of the personnel policy and asked board members to review them over the next month. No action was taken.
FY 2017 Budget – Ms. Seleb presented a draft of the fiscal year 2017 budget. The proposed budget included $4,275,900 in income and $3,861,200 in expenditures including $1,156,000 in new capital projects. Major construction projects for the year include: completion of the Brownlee/East Ball/Nathan Thaxton Water Main, water and sewer extensions for the Dollar General Distribution Center, a water chemistry and treatment study by the University of Central Florida’s Environmental Systems Engineering Institute, and a potential ground storage tank at Riverview Business Park.
Ms. Seleb recommended placing on-hold the Bucksnort Land Application System field expansion and new System Control and Data Acquisition (SCADA) system for the year. New heavy equipment in the budget include the lease of the large excavator approved earlier in the meeting, a used forklift, and a new lowboy equipment trailer.
Ms. Seleb did not recommend a rate increase, but noted that net cash flows would be projected at only $4,900 for water operations after debt service is taken into account. She also noted that for Fiscal Year 2016, annual water billing had risen by only .3% and annual sewer billing had dropped by 8.1% After discussion, Board members decided to raise rates in order to make sure revenues are sufficient.
The minimum bill will continue to include the first 2,000 gallons usage and will rise from $12.50 to $13.00 for both water and sewer. The cost per 1000 gallons will rise from $4.75 to $5.00 for water and remain at $5.75 for sewer. With this new rate, the average water bill will increase by 4.6% and the average sewer bill will increase by 1.6%. Mr. Norris made a motion to adopt the budget. This was seconded by Mr. Roberts and approved unanimously. A copy of the draft budget as presented is attached and made a part of these minutes.
Manager’s Report
Construction
Bucksnort Land Application System (LAS) – The Authority’s crew is waiting on the extended reach backhoe to complete the repair of the Harkness Road pond.
West Butts Tank – The board discussed liquidated damage for delays in tank completion and directed Ms. Seleb to proceed in liquidated damage assessment.
Brownlee Road/Nathan Thaxton Road/East Ball Road – Work has begun on rock blasting on Nathan Thaxton Road between Georgia Hwy. 36 and Sandy Creek. Progress has been seen in obtaining easements for East Ball Road.
Love’s Mechanical Extension – The water main extension and 6″ tap are underway.
Operations
Joint Government Meeting – Ms. Seleb stated that the Authority is scheduled to host the joint City/County/Authority/Board meeting on July 28, 2016. Board members agreed to hold the meeting at the auditorium at the Butts County Administration Building with staff obtaining quotes from several caterers.
Prison Well – Ms. Seleb reported that Georgia Diagnostic Prison employees had told her that they do not have a scheduled date for installation of needed backflow prevention devices that will allow for safe start-up of wells to augment the prison’s water supply.
Trihalomethane Testing – Ms. Seleb reported that preliminary testing was done at the four disinfection by-products sites in May to get an idea of whether the new aeration system is producing anticipated results. On average, total trihalomethane numbers are lower by 52% as compared to the previous two years in June. Official test samples for the Georgia Environmental Protection Division were taken the first week in June. Results will not be ready until early July.
Water and Sewer Statistics – Water and sewer pumping and billing numbers for the month of May 2016 were reviewed. The average daily finished water pumped in January to the Authority, Jackson and Jenkinsburg from Burford and Stewart plants was 2.4 million gallons per day, with a maximum of 2.7 million gallons per day. The rolling twelve-month average loss was 12.3% with the current month average loss of 16.0%. The total amount of finished water pumped in May by each plant was: Burford – 69 million gallons and Stewart – 6 million gallons.
Water billing for May 2016 was $240,115, up 16% from the previous month, and up 11% from May 2015. Sewer billing for May 2016 was $56,039 up 5% from the previous month, and up 4% from May 2016.
Total water accounts numbered 5,448, with 4,945 active water customers. Two water taps were purchased on the existing system, one new main construction tap, and eleven new subdivision meter were sold during the month of May.
The average influent at the Bucksnort Ranch LAS was 258,000 gallons per day with an average effluent of 259,000 gallons per day. The maximum 7-day effluent was 289,000 gallons per day. Total sewer accounts numbered 161, with 160 active sewer customers. Three new sewer services were sold during the month of May.
Ms. Seleb noted that water loss for the past three months has been is at 15-17%, greater than the usual average loss of 12%. This indicates there is likely a large leak somewhere on the system.
Financial Report – Ms. Seleb went over the financial summary for Water & Sewer Operations, and Special Purpose Local Option Sales Tax (SPLOST) for May 2016. Water operations income for May was $256,833 with expenses of $175,424. Water capital recovery fee revenue for the fiscal year thus far was $21,489, with interest expenses of $3,561 and debt service costs of $69, 743 for the Sandy Creek loan.
Sewer Operations income for May was $58,068 with expenses of $43,643. Sewer Capital Recovery Fee revenue for the fiscal year thus far was $14,489 with no expenses.
To date, $1,450,620 has been collected in 2013-19 SPLOST, with $468,146 expended.
Total cash on hand at the end of May 2016 was $7,903,599. This is $230,623 under the June 30, 2015 balance. Copies of the May 2016 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 were given copies of check registers for May and June-to-date to review. Copies of these registers are attached and made a part of these minutes.
Adjourn – A motion was made by Mr. Ford to adjourn the meeting at 6:36 p.m. This was seconded by Mr. Norris and approved unanimously.