MACON WATER AUTHORITY AUTHORITY MEETING. Thursday, January 3, :30 PM

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1 MACON WATER AUTHORITY AUTHORITY MEETING 4:30 PM MEMBERS PRESENT: STAFF MEMBERS PRESENT: R. Kirby Godsey, Chairman Javors Lucas, Vice-chair Dorothy Black Steve Rickman Frank Patterson Bert Bivins, III Tony Rojas, Executive Director Ray Shell, Assistant Executive Director LaToria Porter, Executive Assistant Gary McCoy, Water Treatment Operations Director Kirk Nylund, Customer Service Director Guy F. Boyle, Chief Financial Officer Michel Wanna, Field Operations Director Arleen Samuels, Accounting Manager Mark Wyzalek, Lab/Environmental Compliance Director Harold Blevins, IT Manager Kellie Giles, Human Resources Director Larry Reynolds, Wastewater Operations Director Lisa Golphin, Project Manager Coordinator Jannette Ramney, Engineering Administrative Asst. Randy Smith, Project Manager Yvette Love-Lee, Administrative Asst. for Sewer/Covneyance COUNSEL PRESENT: Lonzy Edwards, Edwards & Youmas CONSULTANTS PRESENT: Chris Wood, Wood & Associates VISTORS PRESENT: Rev. Ronald Terry, New Fellowship Missionary Baptist Church Lucille Clark Vashti Pullen Ms. Randy Smith Trae McCombs Justin Crum

2 Page 2 CALL TO ORDER Chair Godsey called the meeting to order and recognized attorney Rev. Ronald Terry to give the invocation followed by the Pledge of Allegiance. Chair Godsey called for the approval on the agenda. Member Rickman motioned to approve. Member Black seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). Chair Godsey called for the approval of the minutes (listed below). Member Rickman motioned to approve. Member Black seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). Confirmation of Minutes A. Authority Meeting: 12/06/2012 B. Special Called Authority Meeting: 12/20/2012 C. Finance Committee Meeting: 12/20/2012 D. Engineering Committee Meeting: 12/20/2012 E. Outdoor Recreation Committee Meeting: 12/20/2012 Awards & Recognition 1. Pass a resolution recognizing Mr. Randy Smith who is retiring after 10 years of dedicated service to the Authority. Director Rojas stated that Mr. Randy Smith had a significant amount of experience before working with the Authority. He further stated that after Mr. Smith joined the Authority and became Project Manager, he managed a lot of projects and became very strong in construction and project management due to his previous background. Director Rojas also noted that Mr. Smith was a great representative for the Macon Water Authority and he will be missed. The resolution for Mr. Randy Smith was read aloud by Director Rojas. Member Bivins motioned to approve the resolution. Vice-chair Lucas seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). The Board congratulated Mr. Smith as photos were taken. Mr. Smith thanked the MWA staff and Board.

3 Page 3 2. Pass a resolution recognizing Ms. Sheila Yvette Love-Lee who is retiring after 29 years of dedicated service Director Rojas stated that for over 23 years, Ms. Love-Lee served as a member of the Authority s Pension Board. She also served as the Administrative Assistant of the Water Distribution system. Director Rojas also noted Ms. Love-Lee successfully spearheaded the MWA Annual Christmas Party and Company Picnic for years. The resolution for Ms. Yvette Love-Lee was read by Director Rojas. Member Black motioned to approve the resolution. Member Rickman seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). The Board congratulated Ms. Love-Lee as photos were taken. Ms. Love-Lee thanked the MWA staff and Board and noted that Mr. Frank Amerson will be missed. REPORT OF STANDING COMMITTEES Finance Committee 1. Consider establishing a same day service fee for large meters Member Black stated that this item concerned the proposal that the Authority establish fees to be paid in instances when an account holder with a water meter that is 3 inches or larger would like their service reactivated on the same day the account is established. The Finance Committee unanimously recommended the Board adopt the policy. *The recommended policy was provided to the Board* Chair Godsey called for the question on approving the policy. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). 2. Consider establishing a sunsetting provision for Basins Specific Sewer fees Member Black stated that basin specific fees are designed to recoup the cost of a project to extend sewer further into a watershed basin or into another basin by charging a one time per gallon fee for the estimated average daily amount of sewage that a development will contribute to the sewer system. A basin specific fee may be established for a sewer extension project which is funded by the Authority or a private developer. Basin specific fees that are collected for sewer extensions which were funded by a private developer are paid to the developer for a

4 Page 4 period of 7 years from the effective date of the fee. After 7 years, the Authority retains their fees. The Finance Committee unanimously recommended the Board approve the provisions for basin specific sewer fees. Chair Godsey called for the question on approving the sunsetting provisions. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). NEW BUSINESS 1. Consider an appointment to the Board of Directors of Macon Soils for a term of 2 years beginning April 1, Member Patterson recommended that Member Rickman be appointed to serve a two year term beginning April 1, Vice-chair Lucas motioned to approve Member Patterson s recommendation. Member Black seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). 2. Consider the election of the Vice-chairman and the appointment of Standing Committees for Chair Godsey stated that with the blessing of Vice-chair Lucas, he recommended appointing Member Frank Patterson as vice-chair of the Authority Board. Member Rickman motioned to approve Chair Godsey s recommendation. Vice-chair Lucas seconded the motion. All those in favor say aye. (AYE votes by Lucas, Patterson, Bivins, Rickman, Black and Godsey). REVIEW OF THE MONTHLY FINANCIAL AND HEALTH INSURANCE REPORT Director Rojas reviewed the Financial report and Health Care report for the year-to-date period ending November 30, Water sales through November totaled $3,791,163 which was $151,900 over budget. Sewer sales were $2,989,339 through November. This was $73,146, or.37%, below budget through the first two months of the year. Other operating income was $389,166 through November which was $43,083, or 2.07%, over budget. Other Non-Operating income was $298,948, which was $256,770 over budget for the first two months.

5 Page 5 Director Rojas stated that included in other non-operating income was a termination payment from Wells Fargo Bank of $227,000, which was received in October for the termination of a forward agreement that was tied to the 2001B bonds refunded in Operating expenses totaled $4,195,451 for the first two months of the year. This was $702,231, or 2.39% below budget through November. Timing of spending versus the annual budget often results in significant under spending to budget during the first quarter of the fiscal year and should not be considered permanent. Non-operating expenses were $1,420,353 versus a budget of $1,573,487. This was $153,134, or 1.51%, below budget. The Authority s health insurance account held a balance of $4,341,754 at the end of November. This included the retiree health insurance funds which totaled $1,222,706. The health insurance account had a negative month in November with $325,678 in contributions taken into the account and $373,595 paid out of the account. YTD through November 30 th the account took in $645,533 in contributions and paid out $676,675, resulting in a YTD negative position of $31,142 for the first two months of the year. REPORT OF THE EXECUTIVE DIRECTOR Director Rojas stated that the Authority has two variable rate bond issues outstanding that total $23,630,000. Director Rojas briefly provided additional information relating to the variable rate bond and the low interest rate expense that the Authority has experienced. Director Rojas informed the Board that the Annual Taste of Macon will be held on Tuesday, February 26, 2013 in Atlanta, Georgia. Director Rojas stated that Mr. Ray Shell and Mr. Michel Wanna communicated with the Corps of Engineers, the Savannah District. The Authority has an abandoned 54 inch diameter concrete pipe, which is adjacent to an abandoned sewer line and runs under the levee. Director Rojas added that the Corps is requiring that the concrete pipe is backfilled with Quikrete. Director Rojas stated that the Authority will communicate and work with the City and consider using an account that was established after entering an agreement with the City in which funds were set aside for the closing of the landfill and the maintenance of the levee. A News article from an Industry and Trade magazine which discussed the Gold Award that the Authority received was handed to the Board to review. The following referrals were made: Referrals to Committees Finance: Bids: Rocky Creek WTF Final Clarifiers 1 Rehabilitation Project Discuss the topic of paying a franchise fee to the consolidated government of Macon and Bibb Referred by Member Bivins

6 Page 6 Engineering: Discuss how to honor and recognize Chairman Amerson with a permanent memorial Personnel: Consider approving changes in the responsibilities of the Project Manager s position Policy: Discuss the method of choosing the Authority s Vice-chairman. Referred by Member Bivins There being no further discussion, Chair Godsey adjourned the Macon Water Authority Board meeting at 5:05 PM. NOTE: VERBATIN MINUTES AVAILABLE FROM THE EXECUTIVE DIRECTOR.

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