MACON WATER AUTHORITY AUTHORITY MEETING. Thursday, August 06, :30 PM. Frank Patterson, Vice-chairman Ed DeFore Javors J. Lucas Dwight Jones

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1 MACON WATER AUTHORITY AUTHORITY MEETING 4:30 PM MEMBERS PRESENT: Sam Hart, Chairman Frank Patterson, Vice-chairman Ed DeFore Javors J. Lucas Dwight Jones STAFF MEMBERS PRESENT: Tony Rojas, Executive Director/President Guy Boyle, Executive VP of Business Operations Ray Shell, Executive VP of Field & Plant Operations LaToria Porter, Executive Assistant Gary McCoy, Water Treatment Operations Director Kirk Nylund, Customer Service Director Larry Reynolds, Wastewater Operations Director Mark Wyzalek, Lab/Environmental Compliance Director Harold Blevins, IT Director Arleen Samuels, Accounting Manager Michel Wanna, Field Operations Director Darryl Macy, Manager Sewer Conveyance & Water Dist. Kellie Giles, Human Resources Director Jocelyn Hunt, Asst. Mgr. of Water Distribution Dale Moorehead, Water Plant Operator Ernest Roberts COUNSEL PRESENT: Virgil Adams, Adams, Jordan & Herrington CONSULTANTS PRESENT: Chris Wood, Wood & Associates David Lucas, STIFEL Financial VISTORS PRESENT: Trae McCombs, Macon-Bibb TV Ruby Roberts Danny Ingram, Past President of GAWP

2 Page 2 CALL TO ORDER Chair Hart called the meeting to order and asked Member Patterson to give the invocation followed by the Pledge of Allegiance. Chair Hart called for the approval on the agenda. Member DeFore motioned to approve. Vicechair Patterson seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Jones and Hart). Chair Hart called for the approval of the minutes (listed below). (AYE votes by DeFore, Patterson, Lucas, Jones and Hart). All those in favor say aye. Confirmation of Minutes A. : 07/02/2015 B. Outdoor Recreation Committee Meeting: 07/16/2015 C. Finance Committee Meeting: 07/16/2015 D. Engineering Committee Meeting: 07/16/2015 AWARDS & RECOGNITION 1. Pass a resolution recognizing Mr. Ernest Roberts who is retiring with 23 years of dedicated and distinguished service to the Authority. Member DeFore motioned to approve the resolution. Vice-chair Patterson seconded the motion. All those in favor say aye. (AYE votes by members DeFore, Patterson, Lucas, Jones and Hart). After the resolution was read by Director Rojas, the board presented Mr. Roberts with a plaque and check as pictures were taken. Mr. Roberts thanked the Authority for his employment of 23 years. 2. Pass a resolution recognizing Mr. Joe Appling who is retiring with 26 years of dedicated and distinguished service to the Authority. Director Rojas stated that Mr. Appling chose not to attend the Board meeting and asked if the Board would pass the resolution without his presence. Member DeFore motioned to pass the resolution. Vice-chair Patterson seconded the motion. All those in favor say aye. (AYE votes by

3 Page 3 3. Awards received at the Georgia Association of Water Professionals (GAWP) Conference Presented by Mr. Danny Ingram, Past President GAWP Mr. Danny Ingram approached the Board to present the following awards: a. Jocelyn Hunt - Induction in the Select Society of Sanitary Sludge Shovelers (5-S) b. Dale Moorehead Operator Meritorious Service Award c. Darryl Macy Arthur Sidney Bedell Award d. Macon Water Authority U.S. President s Volunteer Service Award e. Macon Water Authority People s Choice Award Best Tasting Water Finance Committee REPORT OF STANDING COMMITTEES 1. Consider increasing the capitalization thresholds for asset values that are capitalized and depreciated. Chair Hart stated that the Finance Committee recommended raising the floor value from $2,000 and a minimum three year life to $10,000 and a minimum of a three year life effective with the Authority s current fiscal year It was noted that this recommendation has the support of the Authority s external audit firm of Mauldin & Jenkins, LLC. 2. Consider approving a request to pass a bond reimbursement resolution for up to $5,000,000 that would provide the legal means for which the Authority may reimburse itself from future fiscal year 2016 bond issue proceeds. Chair Hart stated that long range financial planning for the rehabilitation of the Lower Poplar and Rocky Creek wastewater reclamation plants includes issuing bonds in calendar year 2015, 2016 and The bond reimbursement resolution provides an avenue by which the Authority would reimburse itself from bond proceeds once the bonds are issued, which would be at a later date. A reimbursement resolution would provide up to an 18 month window of opportunity in which the Authority may reimburse itself for incurred expenses related to the bond projects. 3. Consider approving a request to retain David Lucas and Stifel Financial Corporation as bond underwriter and Jon & Jim Pannell of Gray Pannell and Woodward LLP as bond counsel for a planned fall 2015, $10M bond issue. Chair Hart stated that Stifel Financial Corporation acquired Sterne Agee and maintains offices in Macon Georgia. David Lucas, a representative of Stifel, will act as the MWA principal contact during the underwriting process. The Finance Committee requested that the MWA retain the firm of Gray Pannell & Woodward, LLP of Savannah Georgia as bond counsel for the calendar year 2015 bond issue. Partners Jim and Jon Pannell will act as the primary contacts for the fall 2015 bond issue.

4 Page 4 4. Review and Consider approving the 2016 Capital Improvement Plan (CIP) Chair Hart stated that the CIP contains items that have been identified as required or necessary to maintain and support the Macon Water Authority in its mission to provide clean, safe drinking water and sewer conveyance services that meet or exceed regulatory and environmental compliance requirements. The CIP includes all items and projects except those items and projects that are financed through bond proceeds and GEFA loans. The CIP totals $38,611,387. Chair Hart called for the question on approval of the Capital Improvement Plan. All those in favor say aye. (AYE votes by REVIEW OF THE MONTHLY FINANCIAL AND HEALTH INSURANCE REPORT Water sales totaled $18,163,016 which was $439,376 over budget. Sewer sales totaled $16,534,665 which was $632,092 over budget. Total water and sewer sale combined were $36,308,717 which was $903,451over budget. Other operating revenues were $1,611,036 which was $168,017 under budget. Total non-operating income was over budget by $146,405. The Authority recognized approximately $203,345 in gains on investments through June 30, These gains were NOT included in the financial results noted above but were disclosed separately. When the above items were totaled, excluding gains, the Authority had income through the month of June of $36,580,147 which was $1,049,856 over budget projections. Operating expenses through June totaled $21,786,644, which was $1,582,169 better than budget. Non-operating expenses totaled $6,513,546, which was $807,504 better than budget. The health insurance account for June received contributions of $357,238 and had withdrawals of $310,237. This increased the overall fund balance through June by $569,314. The total balance in the account was $4,945,767. REPORT OF THE EXECUTIVE DIRECTOR The proposed budget was handed out to the Board. Director Rojas reminded the Board of the budget sessions that would be held the following week. Director Rojas informed the Board that the Authority completed a project which involved the lighting retrofit of the Billingslea Building and the service center. Director Rojas asked Mr. Ray Shell to approach the Board to discuss the project in detail. Director Rojas asked Mr. Guy Boyle to approach the Board to provide an update on the efforts to replace the Authority s customer service billing and financial system.

5 Page 5 Referrals to Committees The following referrals were made: Pension: Quarterly Pension Meeting Finance: Consider a request from the City of Byron, GA to extend the due date of their 2013 peaking factor penalty to December 31, 2016 Customer Concern Mr. George Holroyd Customer Concern Mr. Lowell Register RFP s for external consulting resources Consider adopting a budget the 48 Diameter Gravity Sewer Rehabilitation Project Discuss Performance Operations Dashboard Engineering: Review a roof investigation report for the roofs at the warehouse on 5 th Street. Chair Hart stated that he has been in discussion with Director Rojas concerning strategic planning for the Authority. He further stated that in October of 2015, the Authority will work with the Carl Vinson Institute of Government to develop a long range strategic plan. The project will involve employees, the Board, the community leadership and senior staff. Member DeFore motioned to go into Closed Session to discuss potential litigation and real estate. Vice-chair Patterson seconded the motion. All those in favor say aye. (AYE votes by At 5:35 pm, the Macon Water Authority Board went into Closed Session At 6:05 pm, the Macon Water Authority Board returned to Open Session Member DeFore motioned to re-open session. Vice-chair Patterson seconded the motion. All those in favor say aye. (AYE votes by Attorney Virgil Adams recommended that the Board authorize Chair Hart to sign an intergovernmental agreement for a new 704 fund project. Member DeFore motioned to approve the recommendation. Vice-chair Patterson seconded the motion. All those in favor say aye. (AYE votes by members DeFore, Patterson, Lucas, Jones and Hart). There being no further discussion, Chair Hart adjourned the Board meeting at 6:15 pm. NOTE: VERBATIN MINUTES AVAILABLE FROM THE EXECUTIVE DIRECTOR.