Board Meeting Date: January 30, 2012 ~ 9:00 A.M.
PERSONS PRESENT: Nancy Martin, Buzz Ahrens, Steven Woodruff, Mike Byrd, Robert Morrison, Tom Heard, David Kubala, Bill Graham, Rick Dobbs, Tom Roach, Wesley Banks, Ryan Sarks, Beth Williams, Jeff Hooper, Clint Blackwell, Dwayne Fowler, Randy Mitchell, Dan Carson, Dwight Turner, Mike Venters, Ron Banks, Craig Ferguson, and Gil Puffer.
Nancy Martin, Chair, called the meeting to order.
1. AN INVOCATION WAS GIVEN BY ROBERT MORRISON, FOLLOWED BY THE PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.
2. DAN CARSON PRESENTED THE 2010-2011 PBS&J GENERAL SERVICES CONTRACT UPDATE (FINAL). Mr. Carson reported an estimated contract amount of $34,699.74 and a total billing to date of $34,699.74.
3. DAN CARSON PRESENTED THE 2010-2011 INFRATEC GENERAL SERVICES CONTRACT UPDATE. Mr. Carson reported an estimated contract amount of $40,960.00 and a total billing to date of $24,108.50.
4. DAN CARSON PRESENTED THE 2010-2011 BROWN & CALDWELL GENERAL SERVICES CONTRACT UPDATE (FINAL). Mr. Carson reported an estimated contract amount of $91,339.74 and a total billing to date of $91,339.74.
5. DAN CARSON PRESENTED THE 2011-2012 ATKINS NORTH AMERICA GENERAL SERVICES CONTRACT UPDATE. Mr. Carson reported an estimated contract amount of $134,685.00 and a total billing to date of $1,931.52.
6. DAN CARSON PRESENTED THE 2011-2012 INFRATEC GENERAL SERVICES CONTRACT UPDATE. Mr. Carson reported an estimated contract amount of $3,480.00 and a total billing to date of $0.00.
7. DAN CARSON PRESENTED THE 2011-2012 BROWN & CALDWELL GENERAL SERVICES CONTRACT UPDATE. Mr. Carson reported an estimated contract amount of $119,848.00 and a total billing to date of $11,506.50.
8. DWIGHT TURNER PRESENTED LEAK ADJUSTMENT INFORMATION FOR THE PERIOD ENDING DECEMBER 2011.
9. MOTION BY BUZZ AHRENS AND SECOND BY MIKE BYRD TO AMEND THE 1/30/12 AGENDA TO INCLUDE CCWSA HIGHLIGHTS INFORMATION FOR THE PERIOD DECEMBER 2010 – NOVEMBER 2011. All members present voted for the motion.
Nancy Martin read the CCWSA Highlights information for the period December 2010 – November 2011 (ATTACHED).
10. JEFF HOOPER REPORTED CONCERNING A SEWER TAP ISSUE. Mr. Hooper referenced correspondence from Darrell Caudill of Roach, Caudill & Gunn, LLP (dated 12/1/11) to Jerry Haygood, Michael Shaw, and MJL Properties concerning 321 Reddin Road in Canton. In this correspondence, Mr. Caudill stated that it has come to the Authority’s attention that the property referenced above, owned by MJL Properties, has an unauthorized connection to the Authority’s sewer system. Additionally, this unauthorized sewer connection appears to cross the real property of another land owner, Pointe Development Group.
In this letter, Mr. Caudill further noted that Authority staff recently reviewed their records, and found no evidence of authorization for the connection to the Authority’s sewer system for said property. Mr. Caudill noted that if Mr. Haygood or Mr. Shaw could produce evidence to the contrary suggesting that the sewer connection was, in fact, authorized, this evidence should be provided to Authority counsel immediately for verification with the Authority.
In this letter, Mr. Caudill further noted that absent any showing that MJL Properties or a predecessor in title was authorized to connect to the Authority’s sewage system, it would appear that 321 Reddin Road has had the benefit of sewer service at no cost since 2006. Following an examination of the water meter records for this residence and measuring water consumption at this address as of 11/7/11, it appears that MJL Properties owes sewer fees in the amount of $1742.40. MJL Properties also owes a sewer tap fee in the amount of $4500.00, and unless it can be demonstrated that MJL Properties had some authorization to connect to the system, the Authority will assess a penalty for an illegal sewer connection in the amount of $2500.00. Additionally, the Authority will require proof that MJL Properties obtained an easement from the adjacent land owner, Pointe Development Group, for the private sewer line connection. Mr. Caudill had requested that that Authority be contacted within five days of receipt of this notification in order to arrange for payment of the amounts listed above, or the Authority would take immediate steps to disconnect the water service from said property until such time as appropriate payment arrangements are made.
Mr. Hooper reported that correspondence has now been received from Doug Flint of Flint, Connolly & Walker, LLP, regarding this issue. In this correspondence dated 1/20/12, Mr. Flint stated that his client, MJL Properties, purchased property at 321 Reddin Road from Pointe Development Group in 2005. Mr. Flint noted that his client was informed that the sewer tap for this property had already been purchased and the tap was installed by the prior owner in advance of the closing of the purchase of this property. Mr. Flint noted that he has only recently learned that Pointe Development Group did not actually pay the required tap fee subsequent to the letter by Roach, Caudill & Gunn, LLP to his client.
In this correspondence, Mr. Flint further noted that the residence that has been constructed on the property was constructed in full compliance with all applicable City of Canton building codes. A building permit was purchased and a certificate of occupancy was issued (for a residence on public sewer) by the City of Canton with no mention whatsoever of a problem regarding the lack of a paid sewer tap. Mr. Flint further noted that, likewise, his client purchased a water meter from CCWSA during the construction period, again with no mention about lack of a paid sewer tap. Mr. Flint noted that he would be happy to share copies of these permits and applications should they be of assistance.
Mr. Flint further noted that he feels that the lack of a paid sewer tap for the residence constructed on this property occurred through no fault of his client. As such, this correspondence serves to request the waiver of any penalty fee that CCWSA is inclined to charge to this property. Mr. Flint stated that he feels that the sewer tap fee should be paid at the prevailing amount for sewer taps in 2005, and noted that he would try to collect a reimbursement of this amount from the former owner.
Mr. Flint noted that, in the letter by Darrell Caudill of Roach, Caudill & Gunn, LLP, Mr. Caudill indicated that sewer usage fees in the amount of $1742.40 are due for the duration of the time that the residence on this property had a water meter. Mr. Flint stated that he agrees that MJL Properties owes sewer usage fees for the times that it used water from March 2006 to July 2006. Mr. Flint noted that, at all other times, the water meter and water/sewer usage at the residence was the responsibility of other parties who were tenants.
Mr. Flint stated that he feels that MJL Properties should only be assessed sewer usage fees for the period it held the water account. Mr. Flint proposes to resolve this matter by having his client pay the prevailing tap fee from 2005 and the sewer usage fees from March 2006 to July 2006. Mr. Flint requests that the Board consider this request.
IT WAS THE CONSENSUS OF THE BOARD TO POSTPONE THIS ISSUE UNTIL NEXT MONTH’S MEETING IN ORDER FOR MR. FLINT TO PROVIDE COPIES OF PERMITS AND APPLICATIONS FOR THE ATTORNEY’S REVIEW. THIS ITEM WILL BE REPORTED BACK TO THE BOARD BY TOM ROACH AFTER REVIEW.
11. MOTION BY STEVEN WOODRUFF AND SECOND BY ROBERT MORRISON TO APPROVE THE 12/22/11 BOARD MEETING MINUTES AS PRESENTED. All members present voted for the motion.
12. BETH WILLIAMS PRESENTED THE FINANCE REPORT. Mrs. Williams reported that total operating revenues are approximately $108,454.00 below budget projections for the period ending 11/30/11. Mrs. Williams also noted that total operating expenses are approximately $270,877.00 below budget projections for the same period. Mrs. Williams reported year-to-date net income of $106,076.00 for the period ending 11/30/11.
13. CLINT BLACKWELL PRESENTED THE WATER TREATMENT OPERATIONS REPORT. Mr. Blackwell reported an average daily treatment of 12.548 MGD for the month of January 2012 at the Etowah River Water Treatment facility. Mr. Blackwell also reported that the Hollis Q. Lathem Reservoir is currently at full pool at 1189 ft. Mr. Blackwell reported a cumulative rainfall total of 61.47” for the past 12 months.
14. MIKE VENTERS PRESENTED THE WASTEWATER TREATMENT OPERATIONS REPORT. Mr. Venters reported an average daily treatment of 2.552 MGD at the Rose Creek Wastewater Treatment Facility, and an average daily treatment of 3.289 MGD at the Fitzgerald Creek Wastewater Treatment Facility.
15. MIKE VENTERS REPORTED THAT AUTHORITY STAFF HAD RECEIVED AN ODOR COMPLAINT ON 1/10/12 FOR 1720 INDIAN RIDGE DRIVE IN WOODSTOCK. Mr. Venters reported that Authority staff had investigated this issue.
16. BILL GRAHAM PRESENTED THE CONSTRUCTION REPORT. MR. GRAHAM REPORTED THAT ALL WATER MAINS ARE INSTALLED FOR THE TIMBERLAKE NORTH WATER MAIN REPLACEMENT PROJECT. Mr. Graham noted that testing is currently ongoing at Ramblewood Court, and noted that this project should be completed by next month’s meeting.
17. TOM HEARD PRESENTED THE GENERAL MANAGER’S REPORT. MR. HEARD REPORTED THAT A 6” WATER MAIN BREAK OCCURRED ON 1/28/12 NEAR TOONIGH ROAD AND SPRINGFIELD PLACE. Mr. Heard noted that the water had to be valved off until repairs were completed. Mr. Heard noted that the Authority had issued a Public Advisory Boil Water Notice because of this event and lab samples were taken. Laboratory tests results indicated that the water was safe for human consumption, and the Boil Water Notice was cancelled on 1/29/12. Mr. Heard noted that the specific area affected included residents along Toonigh Road from the intersection of Springwater Trace to Old Magnolia Trail. Mr. Heard stated that approximately 175 homes were affected by the Boil Water Notice, including homes in the Valley Brook subdivision.
Mr. Heard reported that thenotices had been submitted to the press and posted on the Authority’s website.
18. TOM HEARD INFORMED THE BOARD THAT HE HAS HAD BRIEF DISCUSSIONS WITH MAYOR HOBGOOD OF THE CITY OF CANTON CONCERNING CONSOLIDATION ISSUES.
19. THE BOARD EXTENDED CONGRATULATIONS TO TOM HEARD FOR BEING APPOINTED AS THE PRESIDENT OF THE CHEROKEE COUNTY CHAMBER OF COMMERCE.
20. MOTION BY BUZZ AHRENS AND SECOND BY STEVEN WOODRUFF TO ADJOURN. All members present voted for the motion.