MACON WATER AUTHORITY AUTHORITY MEETING. Thursday, February 2, :30 PM

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1 MACON WATER AUTHORITY AUTHORITY MEETING 4:30 PM MEMBERS PRESENT: Frank C. Amerson, Chair Javors Lucas, Vice-Chair Dorothy Black Frank Patterson Steve Rickman Bert Bivins, III Ed Defore STAFF MEMBERS PRESENT: Tony Rojas, Executive Director Ray Shell, Assistant Executive Director LaToria Porter, Executive Assistant Gary McCoy, Water Treatment Director Kirk Nylund, Customer Service Director Mark Wyzalek, Environmental Compliance/Laboratory Director Michel Wanna, Field Operations Director Kellie Wyatt, Human Resources Director Harold Blevins, IT Manager Guyer F. Boyle, Chief Financial Officer Jimmy McAnn, IT Director Arleen Samuels, Accounting Manager Janice Wright, Administrative Assistant Kate Kubesheski, Interim Asst. Mgr. of Wastewater Larry Reynolds, Interim Asst. Mgr. of Wastewater COUNSEL PRESENT: Lonzy Edwards, Edwards & Youmas CONSULTANTS PRESENT: Chris Wood, Wood & Associates VISTORS PRESENT: Trae McCombs Joe White

2 Page 2 CALL TO ORDER Chair Amerson called the meeting to order and recognized Attorney Lonzy Edwards to give the invocation followed by the Pledge of Allegiance. Chair Amerson called for the question on the approval of the agenda. All those in favor say aye. (AYE votes by Confirmation of Minutes A. Authority Meeting: 1/05/2012 B. Finance Committee Meeting: 1/19/2012 C. Engineering Committee Meeting: 1/19/2012 D. Personnel Committee Meeting: 1/19/2012 D. Policy Committee Meeting: 1/19/2012 Chair Amerson called for the approval of the minutes. All those in favor say aye. (AYE votes by Petitions and Requests from the Public Mr. Joe White, a citizen who lives at 2492 Donald Avenue, approached the Board and stated that MWA initially informed him that his toilets were not connected to its sewer system through a later. In a later instance, MWA came back out to his property and stated that he was connected to the sewer system and would be back billed for four years. Mr. White stated that he was disputing the back billing. Director Rojas informed the Board that he and Mr. Kirk Nylund would communicate with Mr. White to investigate and solve the issue. Once information is received, Director Rojas will bring it back to the Board and provide the outcome. Report of Standing Committees Finance Committee 1. Discuss deposit refunds Member Black stated the Authority has had a standing practice in place for many years that provides the payment of interest when customer deposits are refunded to the customer of record. Mr. Guy Boyle, our Finance Director conducted an unofficial survey of other Georgia water and sewer utilities to determine how they handled customer deposit refunds. Of the sixteen that were surveyed, none paid interest on customer deposits. The Authority continues to pay interest of 3% on customer deposits. This practice seems to be out of

3 Page 3 sync with the conditions that have existed in the financial markets for the past three years as well as the practice of other similar utilities in the state of Georgia. Therefore, the Finance Committee unanimously recommended the Board accept the recommendation that the Authority discontinue the practice of paying interest on refunded customer deposits to reflect the current financial environment in which the Authority operates as well as the business practices that are being followed in similar utility operations across the state of Georgia. 2. Discuss deposit refunds Member Black stated that the Finance Committee unanimously recommended the Board adopt this policy. A copy a memorandum Mr. Kirk Nylund, which explained the need for construction accounts and a proposed policy to create construction accounts for commercial construction, was provided for the Board to review. Engineering Committee 1. Consider creating an Outdoor Recreation Committee Member Patterson stated that while discussing the fishing schedule for Javors Lucas Lake at the last Engineering Committee meeting, the Committee discussed the possibility of the Board creating an Outdoor Recreation Committee, which would be vested with the authority to establish rules for public fishing and hunting by employees at the Authority s property in Jones County. The Committee believed this would allow flexibility and reduce the time required to approve changes to the rules. The Committee would be made up of Members Patterson, Rickman and the Executive Director. The Engineering Committee unanimously recommended the Board approve the creation of the Outdoor Recreation Committee with the authority and memberships listed above. Personnel Committee 1. Consider approving a Cityworks/GIS Maintenance Coordinator Member Rickman stated that last year the Board approved an Administrative Assistant for the Maintenance Department. This role requires an in-depth knowledge of geographical data, mapping, and advanced computer applications. The role also requires application of simple mathematical concepts to analysis of data in aid of problem solving and project completion.

4 Page 4 The Maintenance Manager would like to requested the following: The title for this role to be changed to Cityworks/GIS Maintenance Coordinator The newly titled position to be moved to a pay grade 15 (range $ $23.72) from a pay grade 12 (range $ $20.46) The Personnel Committee recommended the Board approve the creation of the Consider approving a Cityworks/GIS Maintenance Coordinator position in pay grade Consider approving a position of Assistant Manager for the Rocky Creek Waste Water Treatment Plant. Member Rickman stated that the existing management positions approved for the Authority s Wastewater Treatment Plants include the Director of Wastewater Operations and an Assistant Manager for the Lower Poplar Wastewater Treatment Plant (WWTP). There is no Assistant Manager s position for the Rocky Creek WWTP. Therefore, to maintain an efficient compliant operation, the Executive Director recommended the creation of a new Assistant Manager s position at the Rocky Creek WWTP. Member Rickman further stated that assuming the Board approve the request, there would be no need to increase the budget for salaries as the funds necessary to accomplish the reorganization exist in the current budget. The Personnel Committee recommended the Board accept the Executive Director s recommendation and approve an Assistant Manager s position for the Rocky Creek WWTP. Policy Committee 1. Consider approving a Cityworks/GIS Maintenance Coordinator Chair Amerson stated that the Policy Committee recommended that the Board amend section 6.5 to clarify the definition of the word items. Section 6.5 of the by-laws follows: The Finance Committee may authorize without further Authority action all expenditures for items approved in the Authority budget. The Policy Committee recommended the following language for Section 6.5: The Finance Committee may authorize without further Authority action all expenditures for anything approved in the Authority budget including items, supplies, equipment, vehicles, services and projects.

5 Page 5 New Business 1. Consider approving a request from the City of Macon for a loan from the Landfill Closure Account. Director Rojas stated that this request was from Mayor Riechart on behalf of the city of Macon for a loan from the monies the Authority has set aside for the closure of the landfill. The first item is a request from Mayor Riechart on behalf of the city of Macon for a loan from the monies the Authority has set aside for the closure of the landfill. (A copy of Mayor Riechart s letter to Chairman Amerson was provided for the Board to review). The loan of approximately $450,000 would be used to make improvements to the landfill s methane gas system as required by a Consent Order the City received from EPD. The loan would be repaid over a three year period from revenues the City receives from the sale of its methane gas to Cherokee Brick, and supplemented if necessary with proceeds from the General Fund of the City. The rate of interest would be equivalent to the rate of interest the Authority s landfill account would earn from the Local Government Investment Pool. The account currently holds $610,331. The loan agreement would allow the City to finance the improvements to the methane gas system at a very low rate of interest, while ensuring the landfill account is repaid at the rate of interest it would normally earn. The repaid funds would be available in the future to be used for the landfills closure. Chairman Amerson recommended the Board approve Mayor Riechart s request and approve the authority entering an agreement with the City of Macon for the loan. Member DeFore motioned to approve the recommendation. Member Amerson seconded the motion. All those in favor say aye. (AYE votes by members Defore, Patterson, Lucas, Bivins, Black, Rickman, and Amerson). 2. Discuss appointments to the Standing Committees Chair Amerson recommended all Committee officers remain the same as the previous year. Member DeFore motioned to approve the recommendation. Member Bivins seconded the motion. All those in favor say aye. (AYE votes by members Defore, Patterson, Lucas, Bivins, Black, Rickman, and Amerson). REVIEW OF THE MONTHLY FINANCIAL AND HEALTH INSURANCE REPORT Water sales totaled $5,232,230 which was $244,734 below budget projections. Sewer sales totaled $4,305,102 which was $138,805 below budget. Other operating revenues were below budget projections by $41,151, while non-operating revenues were above budget by $33,098. Operating expenses totaled $5,354,485, which was below budget by $1,429,781. Nonoperating expenses equaled $2,300,170, which was $269,061 below budget. Director Rojas stated that December was a good month for the health insurance account. A total of $254,241 was deposited in the account, while the deductions from

6 Page 6 the account totaled $230,718. This resulted in an increase in the balance of the fund in the amount of $23,523. A total of $4,702,191 was available for health insurance cost with a total of $1,221,034 of this amount being reserved for retiree health insurance cost. REPORT OF THE EXECUTIVE DIRECTOR Director Rojas informed the Board that the Authority received a settlement payment in the amount of $426,041 from Wells Fargo Bank on behalf of Wachovia Bank. This settlement was the result of a formal agreement entered into between Wells Fargo Bank, N.A. and the Office of the Comptroller of the Currency (US Government). The Comptroller, conducted ongoing examinations of the Bank and reviewed available information indicating that certain employees and agent of the Banks predecessors in interest engaged in illegal conduct and/or unsafe or unsound practices in connection with the marketing and sale of certain derivative financial products to certain municipalities and other non-profit organizations in certain competitively bid transactions, during at least 1997 through The following referrals were made: Referrals to Committees Pension: Quarterly Pension meeting Finance: Discuss fees for 2012 Comprehensive Financial Report (Audit Results) Profound UI Development Software Engineering: Report and recommendation from Water loss audit project Cavanaugh & Associates Weather Protection for Reservoir Electric Motors There were no other referrals from the Board. After brief discussion, Chair Amerson adjourned the Macon Water Authority Board meeting at 5:00 PM.

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