Board Meeting: May 27, 2020 ~9:00 A.M.
PERSONS PRESENT: Gary Winchester, Eric Willmarth, Doug Dabbs, Lisa Woodruff, Nancy Martin, Barry Mansell, Tom Heard, David Kubala, Dwayne Fowler, Darrell Caudill, Wesley Banks, Corey Ghorley, Beth Jones, Clint Blackwell, Joey Buice, Mike Venters, Jennifer Arp, Eric Wright, Garry Hensley, Gaye Blackwell, Jeff Hooper, Leo Baker, Mark Cochran, Melanie Stephens, Ryan Sarks, Bryce Holcomb, Brian Senne, Rafael Rodriguez, and Matt Nichols.
Member Harry Johnston was not present.
Gary Winchester, Chair, called the meeting to order.
1. AN INVOCATION WAS GIVEN BY DOUG DABBS, FOLLOWED BY THE PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.
2. BRYCE HOLCOMB OF CITI PROVIDED AN UPDATE OF THE AUTHORITY’S WATER AND SEWERAGE REVENUE REFUNDING BONDS, SERIES 2020A, AND THE AUTHORITY’S WATER AND SEWERAGE TAXABLE REVENUE REFUNDING BONDS, SERIES 2020B.
Mr. Holcomb noted that Municipal Market Data (MMD) has experienced sharp volatility in response to uncertainty surrounding COVID-19, but remains low in historical context.
Mr. Holcomb stated that Moody’s has recently upgraded the Authority’s bond rating to Aa1, and provided the following summary of refunding results: The Authority’s Series 2020AB bonds generated an aggregate of $6.7 million in gross savings and $6.4 million in present value savings (20.12% of bonds refunded).
Mr. Holcomb noted that the Series 2020 bonds attracted significant attention from investors, with 17 total institutional investors and over $115 million in orders (4.4x subscribed).
Mr. Holcomb noted that closing is scheduled for 6/25/20, and noted that bond validation should occur sometime the week of 6/15/20.
MOTION BY NANCY MARTIN AND SECOND BY LISA WOODRUFF TO ADOPT THE CCWSA 2020 SUPPLEMENTAL BOND RESOLUTION AND TO AUTHORIZE THE EXECUTION OF THE CCWSA REVENUE REFUNDING BONDS SERIES 2020 BOND PURCHASE AGREEMENT. All members present voted for the motion.
3. DWAYNE FOWLER REQUESTED APPROVAL OF THE RIDGE TRAIL SOUTH WATER MAIN EXTENSION/WHOLESALE METER REMOVAL PROJECT. Mr. Fowler reported an estimated cost of $42,000.00 for this scope of work, and noted that this item is listed on the Authority’s proposed 2021 CIP/Future Projects listing.
MOTION BY DOUG DABBS AND SECOND BY ERIC WILMARTH TO APPROVE THE RIDGE TRAIL SOUTH WATER MAIN EXTENSION/WHOLESALE METER REMOVAL PROJECT AT AN ESTIMATED COST OF $42,000.00. All members present voted for the motion.
4. DWAYNE FOWLER REQUESTED APPROVAL OF THE WOODSTOCK ROAD & VICTORY ROAD (ROUNDABOUT) WATER MAIN RELOCATION PROJECT. Mr. Fowler reported an estimated cost of $75,000.00 for this scope of work, and noted that this item is listed on the Authority’s proposed 2021 CIP/Future Projects listing.
MOTION BY BARRY MANSELL AND SECOND BY ERIC WILMARTH TO APPROVE THE WOODSTOCK ROAD & VICTORY ROAD (ROUNDABOUT) WATER MAIN RELOCATION PROJECT AT AN ESTIMATED COST OF $75,000.00. All members present voted for the motion.
5. COREY GHORLEY REQUESTED APPROVAL OF THE PROPOSED 2021 CIP/FUTURE PROJECTS LISTING (ATTACHED).
MOTION BY DOUG DABBS AND SECOND BY ERIC WILMARTH TO APPROVE THE 2021 CIP/FUTURE PROJECTS LISTING AS PRESENTED. All members present voted for the motion.
6. RYAN SARKS REQUESTED APPROVAL OF THE AMENDED FY 2020 SURPLUS LISTING. Mr. Sarks noted that the items included on this listing would be sold at auction on 6/13/20.
MOTION BY ERIC WILMARTH AND SECOND BY NANCY MARTIN TO APPROVE THE AMENDED FY 2020 SURPLUS LISTING AS PRESENTED. All members present voted for the motion.
7. DAVID KUBALA REPORTED THAT THE METROPOLITAN NORTH GEORGIA WATER PLANNING DISTRICT’S PROPOSED 2021 BUDGET AND WORK PROGRAM REFLECTS AN INCREASE IN THE COUNTY DUES RATE FROM $0.25 TO $0.36 WHICH WILL PROVIDE FUNDING FOR THE 2022 WATER RESOURCE MANAGEMENT PLAN UPDATE. Mr. Kubala noted that currently the Authority and Cherokee County participate on a 50/50 basis in the payment of annual dues of the Metro District. Mr. Kubala noted that this proposed rate increase by the District would, in turn, increase the annual dues that would be paid by the Authority on a 50/50 basis with the County. Mr. Kubala noted that he would continue monitoring the situation.
Gary Winchester noted that this item would be reviewed at the time of CCWSA budget presentment.
8. DARRELL CAUDILL REQUESTED THAT THE BOARD APPROVE, IN CONCEPT, A DRAFT INTERGOVERNMENTAL AGREEMENT BETWEEN FORSYTH COUNTY, FULTON COUNTY, AND CCWSA. Mr. Caudill noted that Forsyth County desires to provide sanitary sewer service to residents of the planned Puckett Drive development lying in Fulton County, and CCWSA desires to provide potable water service to those residents of the planned Puckett Drive development lying in Fulton County, and Fulton County desires to allow such services and adjustments of its service delivery accordingly.
MOTION BY BARRY MANSELL AND SECOND BY DOUG DABBS TO AUTHORIZE TOM HEARD TO EXECUTE AN ACCEPTABLE AGREEMENT, CONTINGENT UPON APPROVAL BY FORSYTH AND FULTON COUNTIES. All members present voted for the motion.
9. MOTION BY ERIC WILMARTH AND SECOND BY LISA WOODRUFF TO APPROVE THE 4/27/20 BOARD MEETING MINUTES AS PRESENTED. All members present voted for the motion.
10. BETH JONES PRESENTED THE FINANCE REPORT. Mrs. Jones reported that total operating revenues are approximately $1,870,573.00 above budget projections for the period ending 3/31/20. Mrs. Jones reported that total operating expenses are approximately $478,801.00 below budget projections for the same period. Mrs. Jones reported year-to-date net income of $6,532,371.00 for the period ending 3/31/20.
11. CLINT BLACKWELL PRESENTED THE WATER TREATMENT OPERATIONS REPORT. Mr. Blackwell reported an average daily treatment of 16.882 MGD for the month of April 2020 at the Etowah River Water Treatment Facility.
Mr. Blackwell reported that the Hollis Q. Lathem Reservoir is currently at full pool at 1189.2 ft. Mr. Blackwell reported a cumulative rainfall total of 66.47” for the past twelve months.
12. MIKE VENTERS PRESENTED THE WASTEWATER TREATMENT OPERATIONS REPORT. Mr. Venters reported an average daily treatment of 3.3 MGD at the Rose Creek Wastewater Treatment Facility, as well as a total reuse monthly flow of 2.5 MG. Mr. Venters reported an average daily treatment of 4.5 MGD at the Fitzgerald Creek Wastewater Treatment Facility, and an average daily treatment of 0.300 MGD at the Riverbend Wastewater Treatment Facility.
13. JENNIFER ARP PRESENTED THE ENVIRONMENTAL REPORT. Mrs. Arp noted that no spills or overflows occurred during this reporting period.
14. DWAYNE FOWLER PRESENTED THE CONSTRUCTION REPORT. Mr. Fowler provided an update on the State Route 20 project.
15. TOM HEARD PRESENTED THE GENERAL MANAGER’S REPORT. MR. HEARD REFERENCED CORRESPONDENCE RECEIVED FROM DAVE HATABIAN OF THE CITY OF CANTON. In this correspondence, Mr. Hatabian stated that as the City of Canton continues to grow, their demand for potable water increases. Although the City is not pushing the limits of their plant capacity, the City would like to begin discussions to purchase additional water from the Authority above the amount in the current agreement.
Tom Heard noted that he would be attending a virtual meeting today at 2:00 p.m. with representatives of the City of Canton to discuss this issue and to advise them of the Authority’s current capacity policy.
16. TOM HEARD NOTED THAT THE AUTHORITY WOULD RESUME STANDARD FULL-TIME OPERATIONS ON 6/1/20, AND ALSO NOTED THAT THE AUTHORITY WOULD BE PROVIDING NOTIFICATION TO CUSTOMERS WITH PAST DUE ACCOUNTS THAT, BEGINNING 7/1/20, CCWSA WILL RESUME ITS DISCONNECTION POLICY FOR NON-PAYMENT.
17. TOM HEARD NOTED THAT CONSTRUCTION HAS BEGUN ON THE SMITHWICK CREEK PUMP STATION PROJECT.
MOTION BY NANCY MARTIN AND SECOND BY ERIC WILMARTH TO ADJOURN. All members present voted for the motion.