March 2009

Board Meeting Date:  March 30, 2009 ~ 9:00 a.m.

PERSONS PRESENT: Don Stevens, Barry Mansell, Gene Cornelison, Gary Winchester, Eric Wilmarth, Buzz Ahrens, Nancy Martin, Tom Heard, Janice Henderson, David Kubala, Bill Graham, Tom Roach, Jim Carpenter, Wesley Banks, Rick Wilson, Rick Dobbs, Clint Blackwell, Nate Giddens, Randy Mitchell, Dwayne Fowler, Jeff Hooper, Dwight Turner, Dan Carson, Mike Morrissey, Ron Banks, Dave Hatabian, Gene Hobgood, Bryce Holcomb, Kevin Stockdale, and Velda Babiak.

Don Stevens, Chairman, called the meeting to order.

1. KEVIN STOCKDALE AND VELDA BABIAK ADDRESSED THE BOARD TO REQUEST RELIEF FROM A GREASE TRAP FINE IMPOSED TO DECIO’S ITALIAN KITCHEN BY THE AUTHORITY. According to correspondence received by Ms. Babiak, Mr. Stockdale and Ms. Babiak are the owners of Decio’s Italian Kitchen and were late having their grease traps pumped. They were informed that they had been assessed a $250.00 fine. Ms. Babiak noted that it took several e-mails to reach anyone at CCWSA to discuss the issue and to find out exactly when the due dates are for pumping the traps. Ms. Babiak noted that she and Mr. Stockdale were trying to determine if CCWSA would accept the idea that she and Mr. Stockdale did not intentionally delay having their grease traps pumped.Ms. Babiak also noted that she had contacted Griffin Industries, the company responsible for their grease trap maintenance. Griffin Industries indicated to Ms. Babiak that a call was made to CCWSA to inform the Authority that the grease trap could not be pumped until 2/26/09. However, the due date given by the Authority for the pumping of the grease traps was 2/25/09. Therefore, Ms. Babiak noted that she and Mr. Stockdale could not comply on or before the due date because of scheduling conflicts with Griffin Industries.

   Nate Giddens, the Authority’s Industrial Pretreatment Coordinator, noted that according to permit regulations, grease traps are required to have maintenance every 180 days. Mr. Giddens reported that notice was given on 2/3/09 to Decio’s Italian Restaurant that maintenance must be performed no later than 2/17/09. Notice was given on 2/18/09 that a $250.00 fee would be assessed by the Authority if maintenance had not occurred by 2/25/09. As stated by Ms. Babiak, maintenance did not occur until 2/26/09.

   Ms. Babiak noted that Griffin Industries was attempting to clear up a billing issue concerning Decio’s Italian Restaurant before maintaining the grease traps.

   Discussion followed concerning the status of the contract between Decio’s Italian Restaurant and Griffin Industries for maintenance of the grease traps. Mr. Giddens noted that e-mails had been received by the Authority whereby Ms. Babiak had contacted Griffin Industries and had requested to be taken off-contract and placed on an on-call basis.

   Chairman Stevens stated that he felt the problem with regard to this issue is between Griffin Industries and Decio’s Italian Restaurant. CCWSA had no involvement with billing and scheduling conflicts that have arisen as a result of this issue. Therefore, the Authority must abide by its rules and regulations.

   MOTION BY GENE CORNELISON AND SECOND BY GARY WINCHESTER TO DENY THIS REQUEST, CONSISTENT WITH AUTHORITY REGULATIONS. All members voted for the motion.

   Ms. Babiak requested that the Authority provide her and Mr. Stockdale with a listing of companies other than Griffin Industries which specialize in grease trap maintenance. Mr. Giddens noted that he would forward this listing to Ms. Babiak.

2. RICK DOBBS NOTED THAT AT THE 7/30/07 BOARD MEETING, THE BOARD HAD APPROVED CCWSA PARTICIPATION ON A 50/50 BASIS IN A TOTAL COST OF $124,145.00 FOR THE WATER LINE PROJECT ON NORTH ROPE MILL ROAD. Therefore, the cost to the Authority would be an amount not to exceed $62,072.50. Mr. Dobbs noted that the Authority has now received a request from Robert Stone of Treemaster, Inc. in which Mr. Stone stated that due to an error, Treemaster, Inc. is requesting that CCWSA consider participating in the additional units reflected on the change order (ATTACHED) needed to complete this project.Mr. Stone further noted that it has been discovered that an additional tie-in is needed for the existing two inch line. The prices on the request for change order are held to the bid prices from June 2007.

   Rick Dobbs noted that the “additional tie-in” is actually the original tie-in point and noted that Mr. Stone had missed the measurement by 920 feet. The 920 feet is the distance that Mr. Stone is requesting the Authority participate in. Therefore, the total cost for the 920 feet of 8″ PVC piping is $32,653.20. If the Board elects to participate on a 50/50 basis, the total cost to the Authority for this addition would be an amount not to exceed $16,326.60.

   MOTION BY ERIC WILMARTH AND SECOND BY NANCY MARTIN TO APPROVE AN EXTENSION OF THE TIME FOR COMPLETION OF THIS PROJECT BY ONE YEAR, BASED UPON THE PRIOR COMMITMENT OF THE BOARD TO APPROVE PARTICIPATION IN AN AMOUNT NOT TO EXCEED $62,072.50. THE REQUEST FOR PARTICIPATION FOR ADDITIONAL FOOTAGE IS DENIED AT THIS TIME. All members voted for the motion.

3. TOM ROACH REPORTED THAT THE BOARD, AT THE 5/28/08 BOARD MEETING, HAD APPROVED A TERMINATION NOTICE TO SPRINT/NEXTEL WHICH WOULD PLACE SPRINT/NEXTEL ON NOTICE THAT THEIR LEASE AGREEMENT WITH THE AUTHORITY WOULD EXPIRE IN JUNE 2009. Sprint/Nextel currently has cell towers located on the Authority’s Rose Creek tank.Mr. Roach noted that he had suggested that the providers may wish to consider installation of a monopole so as not to interfere with the Authority’s use of the tank. Mr. Roach noted that the providers had informed him that they must negotiate with a third party for funding for the installation of a monopole.

   Subsequently, Mr. Roach noted that he has received notification from both Sprint/Nextel and other providers such as Light House and T-Mobile who are interested in installing cell towers on the Authority’s Rose Creek property, as opposed to the water tank site. Mr. Roach had, in turn, placed these providers in contact with Bill Graham. Mr. Graham noted that there is not adequate space available on the Rose Creek site for the installation of these cell towers.

   MOTION BY ERIC WILMARTH AND SECOND BY GARY WINCHESTER TO APPROVE THAT THE AUTHORITY WILL NOT ENTERTAIN REQUESTS FOR CELL TOWERS ON ITS ROSE CREEK PROPERTY. PERSONS OR COMPANIES THAT REQUEST INSTALLATION OF CELL TOWERS ON THE AUTHORITY’S TANKS WILL BE DIRECTED TO AUTHORITY COUNSEL FOR POTENTIAL NEGOTIATION. All members voted for the motion.

4. MOTION BY BARRY MANSELL AND SECOND BY GENE CORNELISON TO APPROVE THE 2/23/09 BOARD MEETING MINUTES AS PRESENTED. Members Mansell, Cornelison, Ahrens, and Martin voted for the motion. Members Wilmarth and Winchester abstained from voting. Motion passed.
5. DON STEVENS REVIEWED THE FOLLOW-UP ITEMS FROM THE 2/23/09 MEETING:
   1) BILL GRAHAM REPORTED THAT BLASTING AT THE UNIVETER TANK SHOULD BE COMPLETED WITHIN TWO WEEKS. MR. GRAHAM REPORTED THAT THE TANK IS ANTICIPATED TO BE BACK IN SERVICE WITHIN 1 – 1 ½ MONTHS.
6. JANICE HENDERSON PRESENTED THE FINANCE REPORT FOR THE PERIOD ENDING 1/31/09. Mrs. Henderson reported that total operating revenues are $1,633,317.00 below budget projections at this time, and total operating expenses are $574,165.00 below budget projections for the period ending 1/31/09. Mrs. Henderson reported a net loss of $1,142,459.00, due to decreases in sales, sewer tap fees, and connection fees.
7. JANICE HENDERSON REPORTED THAT AUTHORITY STAFF HAS BEEN RESEARCHING THE CURRENT POLICY CONCERNING RESIDENTIAL SPRINKLER METER BACKFLOW REQUIREMENTS. The present policy is based upon federal requirements placed upon the CCWSA to have testable double check valve devices installed and attached on all residential sprinkler meters. The cost of these devices is $400.00 per unit, and the yearly testing fee of $60.00 per unit has been the responsibility of the customer only. Authority staff proposes to change the policy in order to spread the cost over time to the customer and to utilize Authority staff to implement the work, thus insuring proper installation and testing. It is proposed that the base rate for residential sprinkler meters will be increased by $3.00, the maintenance and annual testing of these meters will be handled in-house by Authority staff, and a $400.00 credit will be issued to customers who have previously had a double detector check valve installed on their residential sprinkler meter.MOTION BY ERIC WILMARTH AND SECOND BY NANCY MARTIN TO APPROVE AN INCREASE IN THE AUTHORITY’S BASE RATE FOR RESIDENTIAL SPRINKLER METERS BY $3.00. MAINTENANCE AND ANNUAL TESTING OF THESE METERS WILL BE HANDLED IN-HOUSE BY AUTHORITY STAFF, AND A $400.00 CREDIT WILL BE ISSUED TO CUSTOMERS WHO HAVE PREVIOUSLY HAD A DOUBLE CHECK VALVE DEVICE INSTALLED ON THEIR RESIDENTIAL SPRINKLER METER. All members present voted for the motion.
8. BRYCE HOLCOMB OF CITIGROUP ADVISED THE BOARD CONCERNING BOND COVENANT REQUIREMENTS. Mr. Holcomb encouraged the Board to be proactive in meeting its 1.0 bond coverage requirements (excluding tap fees) and 1.20 debt service requirements (including tap fees). Mr. Holcomb noted that the Authority’s reserves are not used in calculation of bond coverage requirements, and noted that meeting bond coverage allows the Authority to be in a more desirable position to meet debt service requirements.
9. JANICE HENDERSON PRESENTED A PROPOSAL FOR WATER METER BASE RATE ADJUSTMENTS, WHEREBY THE AUTHORITY WOULD INCREASE THE BASE RATE FOR ALL WATER METERS BY EITHER $1.00 OR $2.00, WHICH WOULD AID THE AUTHORITY IN MEETING ITS BOND COVENANT REQUIREMENTS.
   
   MOTION BY GARY WINCHESTER AND SECOND BY BARRY MANSELL TO APPROVE AN INCREASE OF $1.00 TO THE BASE RATE OF ALL CCWSA WATER METERS, EFFECTIVE 5/1/09 FOR APRIL BILLINGS. All members voted for the motion.
10. CLINT BLACKWELL PRESENTED THE WATER TREATMENT OPERATIONS REPORT. Mr. Blackwell reported an average daily treatment of 12.75 MGD for the month of March 2009 at the Etowah River WTP. Mr. Blackwell also reported that the Hollis Q. Lathem Reservoir is full at 1189 feet.
11. CLINT BLACKWELL REPORTED THAT HE HAD RECEIVED NOTIFICATION FROM THE GEORGIA DEPARTMENT OF HUMAN RESOURCES THAT THE CCWSA WATER SYSTEM HAS RECEIVED A 2007 WATER FLUORIDATION QUALITY AWARD FROM THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC). This award recognizes those communities that have maintained a consistent level of optimally fluoridated water for the calendar year.IT WAS THE CONSENSUS OF THE BOARD TO RELAY THIS INFORMATION TO LOCAL NEWSPAPERS, AS WELL AS BEING POSTED ON THE AUTHORITY’S WEBSITE.
12. RICK WILSON PRESENTED THE WASTEWATER TREATMENT OPERATIONS REPORT IN THE ABSENCE OF MIKE VENTERS. Mr. Wilson reported an average daily treatment of 2.052 MGD at the Rose Creek facility, and an average daily treatment of 3.672 MGD at the Fitzgerald Creek facility.
13. RICK WILSON REPORTED THAT A SEWER SPILL OCCURRED ON 2/22/09 AT A MANHOLE BEHIND 204 WOOD THRASH WAY IN WOODSTOCK, GEORGIA. Mr. Wilson reported that approximately 3000 gallons had been spilled.
14. RICK WILSON REPORTED THAT FRANK YOUNG, AN OPERATOR AT THE AUTHORITY’S FITZGERALD CREEK FACILITY, WAS SELECTED BY THE PROFESSIONAL OPERATOR ASSOCIATION AS WASTEWATER OPERATOR OF THE YEAR.
    
    THE AUTHORITY’S BOARD OF DIRECTORS CONGRATULATE MR. YOUNG FOR RECEIVING THIS AWARD.
15. BILL GRAHAM PRESENTED THE CONSTRUCTION REPORT. MR. GRAHAM REQUESTED APPROVAL OF THE AUTHORITY’S SURPLUS ITEMS LISTING (ATTACHED), AND NOTED THAT, PENDING APPROVAL, THESE ITEMS WOULD BE SOLD AT AUCTION ON MAY 9, 2009.
    
    MOTION BY ERIC WILMARTH AND SECOND BY GARY WINCHESTER TO APPROVE THE AUTHORITY’S SURPLUS ITEMS LISTING THAT WILL BE SOLD AT AUCTION ON MAY 9, 2009. All members voted for the motion.
16. BILL GRAHAM REFERENCED CORRESPONDENCE BETWEEN GREG GRAHAM OF D & H CONSTRUCTION AND DAVID MANN OF PBS&J IN WHICH MR. GRAHAM NOTED THAT DUE TO ISSUES BEYOND THEIR CONTROL, D & H CONSTRUCTION WOULD LIKE TO REQUEST ADDITIONAL TIME FOR THE SR 140 UTILITY RELOCATION PROJECT. Delays, changes, and lack of cooperation from the GDOT road-widening project have continued to slow production considerably. Greg Graham noted that the trench depth has been eight to twelve feet deeper than anticipated with twelve to twenty foot depths yet to come. In order to offset the slower production, D & H has added a second crew and have instituted a six day work week. Greg Graham noted that even with these efforts, D & H still feels it will not meet the deadline set forth. Therefore, they are requesting an additional thirty days in order to reach substantial completion.Bill Graham noted that approval of this request would extend the contract from March 26, 2009 to April 25, 2009.

    MOTION BY GARY WINCHESTER AND SECOND BY ERIC WILMARTH TO APPROVE THE REQUEST FOR A 30-DAY TIME EXTENSION FOR THE SR 140 UTILITY RELOCATION PROJECT. All members voted for the motion.

17. TOM HEARD PRESENTED THE GENERAL MANAGER’S REPORT. 
18. TOM ROACH REPORTED THAT LAST YEAR THE AUTHORITY HAD RETAINED DR. KARL DUFF OF PROFESSIONAL LIABILITY CONSULTANTS FOR INSURANCE CONSULTING SERVICES. However, the Authority learned that Dr. Duff required additional certification to conduct these services. Time did not permit Dr. Duff to obtain additional certification prior to the deadline for insurance analysis. Mr. Roach noted that he has been unable to contact Dr. Duff in order to determine if Dr. Duff has required this additional certification. Therefore, Mr. Roach requests permission for himself and Janice Henderson to research additional consulting firms to perform this analysis.IT WAS THE CONSENSUS OF THE BOARD FOR AUTHORITY COUNSEL AND JANICE HENDERSON TO RESEARCH ADDITIONAL CONSULTING FIRMS TO PERFORM THE AUTHORITY’S INSURANCE ANALYSIS. A RECOMMENDATION WILL BE GIVEN AT NEXT MONTH’S BOARD MEETING.
19. MOTION BY GARY WINCHESTER AND SECOND BY ERIC WILMARTH TO ADJOURN. All members voted for the motion.

The meeting adjourned at 11:00 A.M.