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 Michel Wanna, Field Operations Director Guyer F. Boyle, Chief Financial Officer Jimmy McAnn, IT Director Arleen Samuels, Accounting Manager 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 Justin Crum Reverend Frebruary
Page 2 CALL TO ORDER Chair Amerson called the meeting to order and recognized Rev. Monty February 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 DeFore, Patterson, Bivins, Rickman, Black and Amerson). Confirmation of Minutes A. Authority Meeting: 2/02/2012 B. Finance Committee Meeting: 2/16/2012 C. Engineering Committee Meeting: 2/16/2012 Chair Amerson called for the approval of the minutes. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). Report of Standing Committees Finance Committee 1. Consider approving the FY 2011 Comprehensive Financial Report Member Black stated that at the last Finance Committee meeting, Mr. Miller Edwards with the firm of Mauldin & Jenkins reviewed the 2011 Comprehensive Financial Report and Audit. The report was compiled by Mr. Guy Boyle and Ms. Arleen Samuels. The Finance Committee unanimously recommended that the Board accept the 2011 Comprehensive Financial Report and Audit as submitted. Chair Amerson called for the question on approving the Comprehensive Financial Report for fiscal year 2011. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). 2. Bid: Rehabilitation of the Bay Street Sewer Interceptor Member Black stated that seven bids were received. The low bidder was Reynolds Inliner, LLC with a base bid of $788,740.44. The proposed budget for this project was $1,000,000. The lowest bid was $211,259.56 under the proposed budget. The Finance Committee unanimously recommended the Board approve Reynolds Inliner as the lowest bidder for the project. Chair Amerson called for the question on approving the lowest bidder, Reynolds Inliner, LLC. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson).
Page 3 3. Bid: Improvements to the Echeconnee Lift Station Member Black stated that seven bids were received. The low bidder was Lakeshore Engineering, LLC with a base bid of $748,520. The proposed budget for this project was $650,000. The lowest bid was $98,520 over the proposed budget. To reduce the project cost to align with the proposed budget, staff proposed to install only one new grinder and it rehabilitate the old existing grinder. This would reduce the contract with Lakeshore Engineering by $92,219. The cost to rehabbing and installing the existing grinder would be funded with funds budget for lift station repairs. The Finance Committee unanimously recommended the Board approve Lakeshore Engineering, LLC as the lowest bidder for the project. Chair Amerson called for the question on approving the lowest bidder, Lakeshore Engineering, LLC. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). 4. Consider approving a budget adjustment to purchase the Profound UI Development Software Member Black stated that this item concerned a budget adjustment for the Information Technology Department in the amount of $4,710 for the purchase of software. The Finance Committee unanimously recommended the Board approve the budget adjustment for the Information Technology Department. A copy of a memorandum from Mr. Jimmy McAnn, which discussed the request in detail was provided for the Board. Chair Amerson called for the question on approving the budget adjustment for the software. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). Finance & Engineering Committee 1. Consider approving a project to provide weather protection for Reservoir electric motors Member Black stated that this item concerned a request for a project to provide an enclosure to protect the motors that operate the reservoirs pumps. The reservoir intake has a total of four pumps. Last year the #2 electric motor at the reservoir intake failed. During the repair of the motor, it was determined that the reservoir pumps are not weather rated for outdoor use and exposure to the elements. A business case evaluation was conducted to determine the optimum solution to address this problem. Four options were considered. The evaluation concluded that building an enclosure over the existing motors was the best of four options. The enclosure is estimated to cost $100,000. The Finance Committee and the Engineering Committee recommended that the Authority proceed with the project to construct the enclosure and approve the funding of
Page 4 the project from the Capital Reserve Fund. It was noted that the Capital Reserve Fund currently has a balance of $8,459,778 and has more than enough unobligated funds available for the project. Chair Amerson called for the question on approving the project to provide weather protection for the Reservoir electric motors. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). Engineering Committee 1. Consider approving recommendations from the water loss audit project. During the Joint Finance and Engineering Committee meeting, some of the Finance Committee members left early. Therefore, a quorum of the Finance Committee was not in attendance to consider the second item, which was the consideration of approving recommendations from the water loss audit project. Therefore, the Engineering Committee continued its meeting on this item. Member Patterson stated that the development of a water efficiency program will give more attention to the operation and maintenance of the Authority s water distribution system, which is needed and is the natural progression of the Authority s focus on its infrastructure. The estimated cost of the program for this fiscal year is $373,875. $150,375 of this cost is capital. $45,000 is going to install equipment at the Amerson Water Treatment plant to ensure the accurate measurement of our finished water. The remaining capital investment of $105,375 will allow the Authority to begin installing automated meter reading equipment on meters which are 2 and larger in size, beginning with the largest meters. The bulk of the $223,500 in operating cost for this fiscal year is for consulting to assist in starting the program and testing large meters. Recently, the Authority received a settlement payment of $462,000 from Wells Fargo. These funds along with $50,000 from the Authority s special projects budget could be used to fund the start of the water efficiency program in this fiscal year. The Engineering Committee unanimously recommended the Authority begin a water efficiency program and amend the budget to provide funding for this fiscal year. Chair Amerson called for the question on approving the recommendations from the water loss audit project. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). Policy Committee 1. Consider changes to the by-laws on the Finance Committee s authority as it relates to approving bids. Director Rojas stated that this item was voted on at the last Authority Board meeting. In order to change the by-laws, the Board must vote on an item twice. Therefore, this item was brought back to the Board for a second vote. Director Rojas proceeded and 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:
Page 5 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. Chair Amerson called for the question on approving the changes to the by-laws. All those in favor say aye. (AYE votes by DeFore, Patterson, Bivins, Rickman, Black and Amerson). REVIEW OF THE MONTHLY FINANCIAL AND HEALTH INSURANCE REPORT Water Sales totaled $7,000,908, which was $240,608 below budget projections. Sewer sales totaled $5,900,236, which was $68,963 below budget projects. Other operating revenues were just below budget projection by $4,488 and totaled $733,219. Non-operating income was above budget projections by $456,655. This was due to the receipt of the unanticipated settlement payment the Authority received from Wells Fargo in the amount of $426,041. Operating expenses equaled $7,781,898 and were $1,236,791 below budget. This is a timing issue and certain utility bills for the treatment plants have not been received. Non-operating expenses, which totaled $3,059,701, were below budget by $365,941. Non-operating expense will come back into line at the end of the year when the Authority pays $704,000 into the revolving fund for industrial development. The health insurance account had a total balance of $4,633,603. Of this amount $1,221, 145 was reserved for retiree health care cost. The balance of the account dropped by $68,699 in the month of January. REPORT OF THE EXECUTIVE DIRECTOR Director Rojas stated that the legislation has been introduced to set the boundaries for the elected districts. The districts are the same and will mirror the lines that the County Commission is using for their districts. A legal ad was listed in the Macon Telegraph two weeks prior. Director Rojas stated that staff is working to make changes to the Authority s bill design. He recommended a working session with the Board to discuss and review the proposed design. Director Rojas will follow up with the Board on a date for the session. Mr. Chris Wood, representative of Jim Wood & Associates, briefly stated that he provided a public notice on smoke testing to the Bibb County residents. Mr. Wood also thanked the local media for their help in relaying the information.
Page 6 Referrals to Committees The following referrals were made: Pension: Discuss and review employee pension plan Finance: Review and discuss the comprehensive financial policies Member Patterson informed the Board that the opening day for public fishing is March 2, 2012 from 6:00 am until 7:00 pm Friday to Sunday. All rules, regulations and fees will remain the same as the previous year. He also noted that the lake level was at 374.6. Member DeFore motioned to go into closed session to discuss industrial recruitment to the Authority s industrial property. Member Patterson seconded the motion. All those in favor say aye. (AYE votes by members DeFore, Patterson, Lucas, Bivins, Rickman, Black and Amerson). At 5:05 pm, the Macon Water Authority went into closed session. At 5:45 pm, the Macon Water Authority returned to open session. Member DeFore motioned to reopen session. Member Patterson seconded the motion. All those in favor say aye. (AYE votes by members DeFore, Patterson, Lucas, Bivins, Rickman, Black and Amerson). No decisions were made and no actions were required to be taken in the open meeting. Chair Amerson adjourned the Macon Water Authority Board meeting at 5:50 PM.