Board Meeting Date:  February 25, 2019  ~ 4:00 PM

PERSONS PRESENT:  Mike Byrd, Doug Dabbs, Robert Morrison, Lisa Woodruff, Eric Wilmarth, Harry Johnston, Tom Heard, David Kubala, Dwayne Fowler, Tom Roach, Wesley Banks, Clint Blackwell, Mark Cochran, Beth Jones, Garry Hensley, Jennifer Arp, Joey Buice, Tim Dobson, Eric Wright, Melissa Darvish, Rodney Satterfield, Brian Breeden, Melanie Stephens, Corey Ghorley, Greg Long, Ryan Sarks, and Jeff Hooper.

Member Gary Winchester was not present.

Mike Byrd, Chair, called the meeting to order.

1.   AN INVOCATION WAS GIVEN BY MIKE BYRD, FOLLOWED BY THE PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

2.   COREY GHORLEY REQUESTED APPROVAL OF A CONSTRUCTION BUDGET IN THE AMOUNT OF $2,860,000.00 FOR THE FITZGERALD CREEK BELT FILTER PRESS ADDITION PROJECT.  Mr. Ghorley noted that this item is listed on the Authority’s current CIP list at an estimated cost of $2,500,000.00.

MOTION BY ERIC WILMARTH AND SECOND BY DOUG DABBS TO APPROVE A CONSTRUCTION BUDGET IN THE AMOUNT OF $2,860,000.00 FOR THE FITZGERALD CREEK BELT FILTER PRESS ADDITION PROJECT.  All members present voted for the motion.

3.   DWAYNE FOWLER NOTED THAT, AT THE 2/27/17 BOARD MEETING, THE BOARD HAD APPROVED THE CONSTRUCTION OF A PUMP STATION AND FORCE MAIN EXTENDED TO THE EXISTING SANITARY SEWER SYSTEM ON ARNOLD MILL ROAD, WITH THE EXACT LOCATION OF THE PUMP STATION TO BE DETERMINED BY STAFF AT A LATER DATE.  Mr. Fowler noted that representatives for Thomas Bradbury/BFP Farms are requesting approval of a second small pump station and force main to be installed in Holly Farm Subdivision to eliminate a proposed long, deep gravity line along the edge of the lake.  Also eliminated would be 13+/- manholes near the lake.  This pump station would serve between 25 and 50 lots based on design.

Mr. Fowler questioned if the Board desires to modify their approval at the 2/27/17 board meeting to allow for the requested second small pump station.

MOTION BY DOUG DABBS AND SECOND BY ERIC WILMARTH TO AUTHORIZE MODIFICATION OF THE PRIOR APPROVAL AT THE 2/27/17 BOARD MEETING IN ORDER TO ALLOW FOR CONSTRUCTION OF TWO PUMP STATIONS EXTENDED TO THE EXISTING SANITARY SEWER SYSTEM ON ARNOLD MILL ROAD.  All members present voted for the motion.

4.   DWAYNE FOWLER NOTED THAT THE AUTHORITY IS IN RECEIPT OF A PETITION FOR WATER LINE EXTENSION FROM RESIDENTS OF BISHOP DRIVE.  Mr. Fowler noted that twelve signatures are listed on the petition, in which the Authority could receive $1,700.00 per tap, which would yield $20,400.00.  Mr. Fowler reported an approximate cost of $29,400.00 for the installation of approximately 4,900 feet of 2 ½” water main.

MOTION BY ERIC WILMARTH AND SECOND BY LISA WOODRUFF TO APPROVE THE INSTALLATION OF APPROXIMATELY 4,900 FEET OF 2 ½” WATER MAIN FOR BISHOP DRIVE AT AN APPROXIMATE COST OF $29,400.00.  All members present voted for the motion.

5.  MIKE BYRD REVIEWED THE FOLLOW-UP ITEMS FROM THE 1/28/19 BOARD MEETING:

1)   DWAYNE FOWLER NOTED THAT, AT THE 1/28/19 MEETING, HE HAD PRESENTED A REQUEST FROM RALPH DAVIA OF GREYDEN ENGINEERING FOR THE INSTALLATION OF A LIFT STATION AND FORCE MAIN TO SERVE 56 SINGLE-FAMILY LOTS ON 24.71 ACRES LOCATED TO THE EAST OF WOODSTOCK ROAD AT THE INTERSECTION OF VICTORY DRIVE & WOODSTOCK ROAD. In the correspondence received from Mr. Davia, Mr. Davia had noted that he has researched connecting to possible gravity sewer, but noted that based on topography, it is not possible.

MOTION BY DOUG DABBS AND SECOND BY ROBERT MORRISON TO APPROVE THE REQUEST OF RALPH DAVIA OF GREYDEN ENGINEERING FOR A LIFT STATION AND FORCE MAIN TO SERVE 56 SINGLE-FAMILY LOTS ON 24.71 ACRES LOCATED TO THE EAST OF WOODSTOCK ROAD AT THE INTERSECTION OF VICTORY DRIVE & WOODSTOCK ROAD.  All members present voted for the motion.

6.   MOTION BY ERIC WILMARTH AND SECOND BY LISA WOODRUFF TO APPROVE THE 1/28/19 BOARD MEETING MINUTES AS PRESENTED.  All members present voted for the motion.

7.   BETH JONES PRESENTED THE FINANCIAL REPORT.  Mrs. Jones reported that total operating revenues are approximately $623,053.00 below budget projections for the period ending 12/31/18.  Mrs. Jones noted that total operating expenses are approximately $886,478.00 below budget projections for the same period.  Mrs. Jones reported year-to-date net income of $2,899,400.00 for the period ending 12/31/18.

8.   CLINT BLACKWELL PRESENTED THE WATER TREATMENT OPERATIONS REPORT.  Mr. Blackwell reported an average daily treatment of 13.757 MGD for the month of January 2019 at the Etowah River Water Treatment Facility.  Mr. Blackwell also reported that the Hollis Q. Lathem Reservoir is currently at full pool at 1189.3 ft.  Mr. Blackwell reported a cumulative rainfall total of 76.54” for the past twelve months.

9.   TOM HEARD PRESENTED THE WASTEWATER TREATMENT OPERATIONS REPORT IN THE ABSENCE OF MIKE VENTERS.  Mr. Heard 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 0.475 MG.  Mr. Heard reported an average daily treatment of 4.7 MGD at the Fitzgerald Creek Wastewater Treatment Facility, and an average daily treatment of 0.370 MGD for the Riverbend Wastewater Treatment Facility.

10.   JENNIFER ARP PRESENTED THE ENVIRONMENTAL REPORT.  MRS. ARP NOTED THAT AN OVERFLOW HAD OCCURRED THIS MONTH AT THE BRUSTER’S LOCATED ON EAGLE DRIVE IN WOODSTOCK.  Mrs. Arp noted that Authority crews jetted the line to correct the problem.

11.   DWAYNE FOWLER PRESENTED THE CONSTRUCTION REPORT.  MR. FOWLER PROVIDED AN UPDATE ON THE HWY. 20 PROJECT.

12.   TOM HEARD PRESENTED THE GENERAL MANAGER’S REPORT.  MR. HEARD REQUESTED APPROVAL OF CONTRACT CHANGE ORDER #1 FOR THE WATER DISTRIBUTION & WASTEWATER COLLECTION SYSTEM MASTER PLAN (CCWSA-2018-007-FREESE AND NICHOLS-WD & WCS MASTER PLAN) TO INCLUDE WATER AND SEWER MODEL DEVELOPMENT AND MODEL TRAINING.  Mr. Heard reported an original contract amount of $123,516.00, and an increase per the change order in the amount of $79,024.00.  Mr. Heard reported a revised contract total of $202,540.00, and noted that the contract completion time would be extended from 10/25/19 to 1/10/20 to allow for more time for training and modeling.

MOTION BY ERIC WILMARTH AND SECOND BY LISA WOODRUFF TO APPROVE CONTRACT CHANGE ORDER #1 FOR THE WATER DISTRIBUTION & WASTEWATER COLLECTION SYSTEM MASTER PLAN (CCWSA-2018-007-FREESE AND NICHOLS-WD & WCS MASTER PLAN) TO INCLUDE WATER AND SEWER MODEL DEVELOPMENT AND MODEL TRAINING.  All members present voted for the motion.

13.   TOM HEARD REFERENCED CORRESPONDENCE RECEIVED BY DONNA PIERCE, PRESIDENT OF THE COTTAGES AT TOWNE LAKE HOMEOWNERS ASSOCIATION.  In this correspondence, Ms. Pierce noted that The Cottages at Towne Lake is serviced by a master meter from CCWSA.  Ms. Pierce noted that she believes that The Cottages at Towne Lake has a water quality problem in their system.  Over the past twenty years, there appears to be a build-up of iron and manganese in the system.  It has been recommended that they flush their system using their fire hydrants to remove this build-up.

In this correspondence, Ms. Pierce further noted that their water price is for both water and sewerage service.  Since the flushing would only involve water and not sewerage service, The Cottages at Towne Lake HOA Board would like to inquire if they could receive a lower rate for the water used during the flushing.

David Kubala and Tom Heard presented a draft policy for flushing water mains in private master-metered developments.  According to this draft policy, certain residential developments in Cherokee County have been zoned and built without sufficiently large utility rights-of-way for the CCWSA to service as individual residences.  These few residential developments are served through a master-meter for water.  The internal distribution system for such developments is private and the responsibility of the homeowners association or property maintenance company to properly operate and maintain.  It is the policy of CCWSA to forgive up to $250.00 in service charges annually to a master-metered residential development upon its proof of flushing its private water distribution system, in order to encourage adequate maintenance of its private water distribution system.

MOTION BY HARRY JOHNSTON AND SECOND BY DOUG DABBS TO ADOPT THE POLICY FOR FLUSHING WATER MAINS IN PRIVATE MASTER-METERED DEVELOPMENTS AS PRESENTED, RETROACTIVE TO INCLUDE THE REQUEST BY THE COTTAGES AT TOWNE LAKE HOMEOWNERS ASSOCIATION.  All members present voted for the motion.

14.   TOM HEARD REFERENCED CORRESPONDENCE RECEIVED FROM SCOTT KING OF ERTH PRODUCTS, LLC.  In this correspondence, Mr. King noted that the term of the Sludge Procurement Agreement dated 2/28/98, as amended, between ERTH Products, LLC and CCWSA presently expires on 2/28/19, unless further amended to extend the term of the agreement.  Mr. King also noted that ERTH Products sustained substantial damage to one of its three primary composting buildings from Hurricane Michael which limits the volume of sludge that ERTH is presently able to process until mid-2019.

In this correspondence, Mr. King noted that pursuant to the Sludge Procurement Agreement, as amended, he is providing written notice to the Authority of ERTH’s intent to seek a price increase at the end of the current term of the agreement should CCWSA desire to extend or renew the agreement.  Mr. King is proposing the following options to CCWSA for extension or renewal of the current contract.  The options are as follows:

1)       CCWSA shall have the option to extend the contract for an additional period of up to ninety (90) days ending May 30, 2019 with a price adjustment to $75 per wet ton for the extended period.

2)       CCWSA shall have the option to renew the contract additional one-year periods, subject to acceptance of the annual price adjustment requested by ERTH.  The price adjustment and renewal shall be granted by CCWSA provided CCWSA notifies ERTH of its intent to renew the contract and specifically approves the requested price change for the renewal period.  The requested price change for the proposed contract term of March 1, 2019 through February 28, 2020 is $80 per wet ton.

3)       CCWSA elects to forgo extension or renewal of the current Sludge Procurement Agreement, as amended, and permits the agreement to expire on 2/28/19, at which time the agreement between ERTH Products, LLC and CCWSA will terminate.

In this correspondence, Mr. King noted that ERTH’s proposed price is based on the current tipping fee price of $55.00 per wet ton at their gate plus freight cost of $25.00 per wet ton for transport from CCWSA to ERTH Product’s Plains, Georgia facility.

MOTION BY ERIC WILMARTH AND SECOND BY LISA WOODRUFF TO APPROVE THE EXTENSION OF THE CONTRACT WITH ERTH PRODUCTS, LLC FOR SLUDGE PROCUREMENT SERVICES FOR AN ADDITIONAL PERIOD OF UP TO NINETY (90) DAYS ENDING MAY 30, 2019 WITH A PRICE ADJUSTMENT TO $75 PER WET TON FOR THE EXTENDED PERIOD.  All members present voted for the motion.

15.   TOM ROACH REPORTED THAT HE HAS DRAFTED A LETTER TO ELDON BASHAM, COUNSEL FOR THE CITY OF WOODSTOCK.  In this letter, Mr. Roach noted that he has been made aware of recent conversations by and between Mr. Jeff Moon, Woodstock City Manager, Mike Byrd, Chairman of CCWSA, Tom Heard, General Manager of CCWSA, and others regarding the provision of potable water and wastewater collection services in and around the City of Woodstock.  The City of Woodstock and CCWSA entered into a “489 Agreement” on January 24, 2000.  The 489 Agreement incorporated a small, scale map of the City of Woodstock’s service area.  The map attached left some interpretation of service areas around the fringes of the City’s service area.  In addition, the City and CCWSA have traded around service areas in areas more economically served by the CCWSA or the City since 2000.

In this draft letter, Mr. Roach further noted that the issue that he is writing about today came about as a result of a developer being required by the City to construct a $250,000 plus wastewater pump station in order to pump wastewater into the City’s collection system rather than utilize the gravity sewer main operated by the CCWSA on the very property the developer wishes to develop.

On April 29, 2002, the City and the CCWSA entered into an agreement to extend the temporary treatment of 250,000 gallons of the City’s wastewater, to exchange an area of the City’s service area to the CCWSA, to exchange an area of the CCWSA’s service area to the City and to provide for the CCWSA to provide retail wastewater treatment service only, to an area of the City’s service area.  Paragraph 4 of the 2002 agreement provides for a January 1, 2006 expiration.  The CCWSA believes that the contract expiration language only referred to the temporary provision of wastewater treatment services by CCWSA to the City.  Mr. Roach further noted that it is nonsensical to interpret the contract as being a temporary service area swap.  In fact, the CCWSA’s belief regarding the expiration of the 2002 agreement as communicated in writing to Mayor Henriques by then chairman, Don Stevens in 2008, without response, denial, objection or question.  Based upon the 2002 agreement, the parties’ subsequent behavior, as well as the lack of response from the City in 2008, the CCWSA has treated the two (2) areas conveyed for service to CCWSA by the 2002 agreement as CCWSA service area and has expanded significant sums in developing infrastructure to serve those areas.

Mr. Roach further noted in this draft letter that the Board of Directors and the employees of the CCWSA were shocked by the City’s recent insistence that he aforementioned service area exchanges were for only four (4) years.  Despite the City’s insistence that the 2002 agreement expired, the City continues to serve the service area known as the “Waymon Anderson Tract” and the CCWSA continues to provide retail wastewater collection and treatment services to the service area known as the “Brookshire Development”.  The City seem to pick and choose which part of the 2002 agreement expired based upon economics rather than legalities.

Mr. Roach further noted that understanding that the service area discussion required a global solution which addresses topography, hydrology, existing infrastructure, treatment capacity, line capacity, potable water capacity and pressure, he will reserve further comments regarding the 2000 service area agreement and the 2002 agreement modifying the 2000 service area agreement for another day.

Mr. Roach noted in this draft letter that the discussions between the City and CCWSA representatives has brought to light an issue that must be addressed immediately.  As indicated above, a portion of the 2002 agreement required the CCWSA to provide wastewater collection and treatment services for the “Brookshire Development”.  The CCWSA initially believed that the City had not remitted connection fees it collected in the “Brookshire Development” to the CCWSA.  Mr. Moon and his staff audited their remittance and concluded that all amounts in the “Brookshire Development” had been appropriately remitted to the CCWSA.  Upon learning of this audit, representatives of the CCWSA attempted to verify Mr. Moon’s audit and determined that the City has in fact remitted all tap fees within the “Brookshire Development” except for the subdivision’s amenities lot including a pool and pool house, which would amount of 1 ERU.  CCWSA staff has also recently discovered that the Park 9 apartments, which were built in 2016 adjacent to the “Brookshire Development” has connected to the CCWSA.  It is believed that the City collected connection fees for the Park 9 apartment community and has failed to remit those connection fees to the CCWSA.  Based upon tax records, CCWSA staff has determined that the apartment community contains a total of 238 one- and two-bedroom units and a total of 37 three- and four-bedroom units.  An equivalent residential unit (ERU) is assumed to represent a typical single-family home generating 400 gallons per day of wastewater.  One- and two-bedroom apartments are considered to be .75 ERUs; three- and four-bedroom apartments are considered by to 1 ERU each.  Based upon those calculations, the Park 9 community generates 215.5 ERUs per day, plus the 1 ERU generated by the Brookshire pool amenity lot.  The CCWSA connection fees are $4,500.00 per ERU, thus, generating a total connect fee for the apartments of $974,250.00.  Mr. Roach concluded that, based upon review of this information by City of Woodstock counsel, he feels they will concur that the connection fees aforesaid are owed to CCWSA, and this correspondence should be considered as a demand for immediate payment in full.

IT WAS THE CONSENSUS OF THE BOARD FOR AUTHORITY COUNSEL TO SEND THIS LETTER TO ELDON BASHAM, COUNSEL FOR THE CITY OF WOODSTOCK, PRIOR TO THE CCWSA’S MEETING WITH THE CITY OF WOODSTOCK ON WEDNESDAY, FEBRUARY 27, 2019.

16.   MOTION BY HARRY JOHNSTON AND SECOND BY DOUG DABBS TO ADJOURN.  All members present voted for the motion.