MACON WATER AUTHORITY AUTHORITY MEETING 4:30 PM MEMBERS PRESENT: STAFF MEMBERS PRESENT: COUNSEL PRESENT: Sam Hart, Chairman Frank Patterson, Vice-chair Dwight Jones Bert Bivins, III Ed DeFore Dorothy Black Javors Lucas Tony Rojas, Executive Director/President Ray Shell, Executive VP of Field & Plant Operations Guy F. Boyle, Executive VP of Business Operations Lisa Golphin, Sr. Executive Asst. of Strategic Planning LaToria Porter, Executive Assistant Gary McCoy, Water Treatment Operations Director Kirk Nylund, Customer Service Director Larry Reynolds, Wastewater Operations Director Arleen Samuels, Accounting Manager Michel Wanna, Field Operations Director Mark Wyzalek, Lab/Environmental Compliance Director Harold Blevins, IT Director Darryl Macy, Sewer Conveyance & Water Dist. Mgr. Heather Veal, CMOM Coordinator Virgil Adams, Adams, Jordan & Herrington CONSULTANTS PRESENT: Chris Wood, Wood & Associates VISTORS PRESENT: Justin Crum, Macon-Bibb TV Howard Harper, SACAL
Page 2 CALL TO ORDER Chair Hart called the meeting to order and asked Vice-Chair 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. Member Black seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, Chair Hart called for the approval of the minutes (listed below). (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, All those in favor say aye. Confirmation of Minutes A. : 12/03/2015 B. Authority Closed Session: 12/03/2015 C. Pension Committee Meeting: 12/15/2015 C. Finance Committee Meeting: 12/15/2015 D. Engineering Committee Meeting: 12/15/2015 E. Closed Session Eng. Committee: 12/17/2015 AWARDS & RECOGNITION 1. Pass a resolution recognizing Mr. Ralph Hardy who is retiring with 49 years of dedicated service to the Authority. Director Rojas stated that between the two employees that were being recognized, there was over 102 years of service to the Water Authority. Director Rojas proceeded by first acknowledging Mr. Ralph Hardy, who retired on December 31 st after serving 49 years of service. Mr. Gary McCoy, MWA s Director of Water, approached the Board to share a brief history along with highlights of Ralph s career. After the resolution was read aloud by Director Rojas, Member DeFore motioned to approve the resolution. Vice-Chair Patterson seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, The Board greeted Mr. Hardy as photos and a token of appreciation was presented. 2. Pass a resolution recognizing Mr. James Tapley who is retiring with 53 years of dedicated service to the Authority. Director Rojas stated that Mr. Tapley was unable to attend the board meeting; nevertheless, he provided a brief history and highlights of Mr. Tapley s career. Vice-Chair Patterson motioned to approve the resolution. Member DeFore seconded the
Page 3 Pension Committee REPORT OF STANDING COMMITTEES 1. Consider requesting the Bibb County Legislative Delegation introduce legislation to amend the MWA Employee Pension Plan to comply with provisions of the Internal Revenue Code as a result of recent federal legislation. 2. Consider passing a resolution to amend the MWA Retirement Savings Plan to comply with provisions of the Internal Revenue Code as a result of recent federal legislation. Member Black stated that the first two items concerned amendments to the Employee Pension Plan and the Retirement Saving Plan to comply with provisions of the Internal Revenue Code as a result of recent federal legislation. Member Black further stated that it would be necessary to have State Legislation passed in order to amend the Employee Pension Plan, while the amendment to the Retirement Savings Plan may be accomplished by the Board s passage of a resolution to amend the plan. Chair Hart called for the question on the approval on amending the MWA Employee Pension Plan to comply with provisions of the IRS as a result of recent federal legislation. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, Chair Hart called for the question on the approval of passing a resolution to amend the MWA Retirement Savings Plan to comply with provisions of the IRS as a result of recent federal legislation. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, 3. Consider applying to the Internal Revenue Services for a favorable determination letter on the MWA Retirement Savings Plan. Member Black stated that the Pension Committee recommended that the Authority have Ms. Patti Keesler file for a favorable determination letter from the IRS for the Retirement Saving Plan. The IRS currently has a program that allows sponsors of qualified plans to apply for a favorable determination letter on plan documents. A favorable letter means the IRS has reviewed the terms of the plan document, and has determined that it complies with federal law requirements that enable pension benefits to be taxed when distributed and not when contributed or promised to the participant. It is basically an insurance policy that says if the employer s plan is audited within 5 years of the date on the letter; the IRS cannot impose penalties or fines if the auditor finds faulty language in the plan document. The IRS is discontinuing this program starting January 1, 2017. Governmental plans that want to apply must do so by January 31, 2016. The IRS user fee for this program is $2500. The Retirement Savings Plan was effective July 1, 2012, and its terms appear to be in compliance with all federal law requirements. Member Black stated that Director Rojas recommended that a favorable determination letter is not sought for the Employee Pension Plan as the plan has never previously filed with the IRS even though the plan has been in place for 50 or more years and it could therefore be an expensive process. Chair Hart called for the question on the approval. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones,
Page 4 Finance Committee 1. Consider approving an amendment to the Capital Improvement Budget of the Sewer Conveyance Department to allow for the purchase of 6-inch by-pass pump. Member Black stated that staff requested to amend the 2015-16 CIP Budget for the Sewer Conveyance Department to provide for the purchase of the trailer mounted 6-inch sewer by-pass pump for approximately $16,000. The Authority would defray the purchase of a concrete street saw, which is budgeted at $15,000 until next year and purchase the by-pass pump at this time. Chair Hart called for the question on approval. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, NEW BUSINESS 1. Consider the appointment of the Vice-Chairman and the Standing Committees for 2016. Chair Hart provided his recommendations of the Standing Committees for 2016 (attached to the minutes). Member DeFore motioned to approve the recommendations. Member Jones seconded the 2. Consider appointments to the Macon Economical Development Commission Board and the New Town Macon Board. Chair Hart provided his recommendations to the Macon Economical Development Commission Board and the New Town Macon Board (attached to the minutes). Member DeFore motioned to approve the recommendations. Member Jones seconded the REVIEW OF THE MONTHLY FINANCIAL AND HEALTH INSURANCE REPORT Mr. Guy Boyle reviewed the Financial report and Health Care report for the month of November. Water sales totaled $3,934,872 which was $290,588 below budget projections. Total net Sewer sales totaled $3,418,103 which was $13,871 above budget projections. Total water and sewer sales combined were $7,352,975 which was $276,717 below budget projections. Other operating revenues were $442,461 which was $56,669 above budget projections. Total nonoperating income was over budget by $11,528. The Authority recognized approximately $54,640 in gains on investments through November 30, 2015. 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 November 30, 2015 of $7,835,849 which was $208,519 below budget projections.
Page 5 Operating expenses through November totaled $4,314,749, which was $1,109,691 better than budget. Non-operating expenses totaled $1,451,203, which was $209,796 better than budget. This included $190,412 in interest favorability. The health insurance account for November received contributions of $324,237 and had withdrawals of $291,135. This increased the overall fund balance through November by 26,655. The total balance in the account on November 30, 2015 was $5,045,780. REPORT OF THE EXECUTIVE DIRECTOR Director Rojas asked Ms. Heather Veal, CMOM Coordinator, and Mr. Michel Wanna, Director of Field Operations, to approach the Board to discuss the sewer spills during the month due to heavy rainfall. Director Rojas asked Mr. Gary McCoy, Director of Water, to approach the Board to discuss a sanitary survey that was conducted on the Water Treatment Plan by the Georgia Environmental Protection Department. The following referrals were made: Engineering: Referrals to Committees Consider approving the Capital Improvement Plan for the rehabilitation of the Lower Poplar and Rocky Creek Water Reclamation Facilities Consider approving Task Release 10 with CH2M Hill for consulting services to support the Design/Build Contract Selection Process for the project to rehabilitate our Water Reclamation Facilities Considering funding access improvements for the interceptor sewer between the Corbin and Riverside Dr. Lift Stations. Member DeFore motioned to go into Closed Session to discuss the appointment, employment, hiring, disciplinary action or dismissal, or performance of an officer or employee. Vice-Chair Patterson seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, At 5:30 pm, the Macon Water Authority Board of Directors went into Closed Session. At 6:45 pm, the Macon Water Authority Board of Directors returned to Open Session. Member motioned to return to Open Session. Vice-Chair Patterson seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, Black and Hart). Attorney Virgil Adams read the motion and stated that the Authority ratify the renewal of the contract of the Executive Director and approve the proposal from Northwestern Mutual Insurance regarding a life insurance policy for the Executive Director. Vice-Chair motioned to approve. Member DeFore seconded the motion. All those in favor say aye. (AYE votes by DeFore, Patterson, Lucas, Bivins, Jones, There being no further discussion, Chair Hart adjourned the meeting at 6:45 pm. NOTE: VERBATIN MINUTES AVAILABLE FROM THE EXECUTIVE DIRECTOR.