Water & Sewer Committee

Sammy Rich, City Manager John Boyd, Assistant Director WATER AND SEWER DIVISION Customer Service Department Bryan Parris, Director Operations Department Brandon M. Cook, Director Water Reclamation Facilities Jeff Hill, Director Water Treatment Facilities Wayne Stanley, Director WATER AND SEWER COMMITTEE MEETING City Hall, 601 Broad Street, Sam King Room Thursday, December 7, 2023 9:00 AM PRESENT: Chairperson Jim Bojo Commissioner Craig McDaniel Commissioner Elaina Beeman Mr. Sammy Rich, City Manager Mrs. Meredith Ulmer, Assistant City Manager Mrs. Toni Rhinehart, Finance Director Mr. Doug Walker, Public Information Officer Mr. John Boyd, Assistant Division Director Mr. Bryan Parris, Customer Service Director Mr. Jeff Hill, Water Reclamation Facilities Director Mr. Wayne Stanley, Water Treatment Facilities Director Mr. Jeff Pope, Water Treatment Facilities Assistant Director VISITORS: David Crowder WRGA News Multiple citizens present CALL TO ORDER Chairperson Jim Bojo welcomed everyone and called the meeting to order. REVIEW OF THE MINUTES No changes to the November 2, 2023, minutes were suggested, and minutes were approved by common consent. Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 1 of 6 FINANCIAL REPORT Mrs. Rhinehart provided a copy of the 2024 budget draft for Water and Sewer and stated she would be going over and discussing the Operating Budget and Mr. Boyd would go over the Capital Budget. She pointed out the budget included a zero to four percent merit increase for employees and the City contribution for employee insurance went from $10,500.00 per employee to $12,600.00 and increase of $2,100.00 per employee which is a significant increase especially in larger departments such as water. GEMEDS did have a slight increase, but we were paying a little more than was required so the increase is due to the increase in the number of employees. Workers’ Compensation contribution is the same. Rhinehart then moved into Operating Revenues and pointed out there was a reduction in anticipated Operating Revenues across all rate revenues based on the 20% reduction per the settlement agreement. Rhinehart then pointed out Interest Income had a large increase due to the settlement funds as well and it was almost a wash between the reduced operating revenues and interest income so everything should balance out but we will have a rate study in 2024 as previously discussed, mainly because we not only lost the increases added to cover cost of a new treatment facility but also lost the normal operating cost increases that we would have had during those years as well. We are proposing total revenues and transfers-in for 2024 will be $30,647,000.00. Rhinehart then moved on to expenses by department saying there was not much to talk about here except in the Water Filter Plant, 5610, there was a significant increase due to eight new positions discussed at previous meetings. Chairperson Bojo asked what was the dollar amount of those eight positions? Mr. Boyd stated it would be roughly $700,000.00, saying this was a part of the $3 million overall increase we knew would be coming with the new plant. Chairperson Bojo, that figure does include benefits, correct? Rhinehart replied yes. OLD BUSINESS None NEW BUSINESS Mr. Boyd provided the committee with handouts of the October monthly updates and LIWHAP update. Boyd then went into 2024 Capital Budget Request. He explains each of the vehicles listed in all departments are rated on a grading system and it is not replaced until it is classified at 28 points and above meaning it needs immediate attention. He also pointed out everyone is aware of Water Treatment, Reclamation and Water Billing but within Operations there are about eleven or twelve subunits and each one has its on budget. Boyd began with 5410 Operations Office reporting three vehicles to replace all scoring 29 or higher, all having more than 80k miles and one new piece of equipment a GPR Utility Locator and explained this locator operates on sonic and would locate PVC sewer mains that do not have tracer lines. He also stated 30% of the cost could come from the lead and copper grant we will be receiving. Boyd also apologized to the Commissioners for having to act with so little information and time on the lead and copper application saying we only received the documents on Thursday, and they wanted it on December 1st, so we had to push it through to get it back to them. Commissioner McDaniel asked if that was GEFA funds? Boyd responded that it is federal funding administered through GEFA. Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 2 of 6 McDaniel continued saying; on another board I serve on a representative from GEFA made a presentation and I think there is an effort now to try to replace every lead pipe or line and the grant is a very small amount compared to the cost, so does the consumer pay for that or how is it paid for? Boyd stated that was still to be determined and at this point the only thing that is absolute in this rule is we must complete an inventory by October 2024, everything else is still up in the air. Typically, the utilities responsibility ends at the meter, but this new rule includes the customers line, but we don’t know if we will have to replace it or just provide them the information that they need to replace it and then there is funds for them, but we don’t know yet. Operations Office total Capital request $169,000.00 5420 - Customer Service Capital request included $7,650.00 for an additional AMI Drive-by Unit. Mr. Parris explained this piece of equipment was used to collect meter reading when a meter did not connect to the fixed base system and to collect usage data to assist with customer questions with monthly water usage and charges. He also stated the department currently has one unit that was purchased at the beginning of the meter change out pilot testing about six years ago and the additional unit would allow the department to have two people working on collecting readings and assisting customers each day. The second and final request for $32,000.00 to relocate drive-thru. Parris explained current drive-thru window was obsolete and finding parts for it was increasingly difficult and was also in a bad location. The new drive-thru would be two video monitors with audio and a shoot system like many of the banks are now using rather than a window and drawer that opens and closes. Customers and customer service representatives would still have visual and vocal contact with each other. Additionally, the outside monitor and shoot would be located at the end of the Customer Service Office building which will allow about four more cars to line up before entrance to the parking lot is blocked and cars are backing up on Broad Street which has been a problem for years. Customer Service total Capital request $39,650. Chairperson Bojo questioned; this will only cost $32,000.00. Boyd replied we got some estimates on equipment and installation and added a little more for possible in-house construction and this should cover everything. Parris added going back to something like we currently have would likely be closer to $100k with equipment and installation. 5440 - Maintenance, Boyd explained these are Water & Sewer Division employees, but they do help with other City- wide maintenance of buildings, infrastructure, and the like. The department has only one capital request for $62,000.00 to replace truck #929, a 2012 F250 crew cab with a F250 with a service body. Maintenance total Capital request $62,000.00 5610 – Water Treatment, Mr. Stanley stated as everyone is aware we will be constructing a new Reverse Osmosis (RO) filter plant and there will be a lot of modifications on existing equipment so our hope is most of what we have listed is just place holders for funds and we can get through these next few years without having to spend money on something that will be replaced or upgraded with the new plant. Boyd and Stanley explained the total Capital budget for the Filter Plant for 2024 was prepared for worst case scenario with a total of $1,660,000.00 however, hopefully only a few items would likely be used such as the $125,000.00 listed for replacing the Etowah Raw Water pump as we have had to replace this pump every year and this will not be a part of the new plant. The goal for 2024 and going forward until the new plant is operational is to only spend what is necessary to keep everything running but we must be prepared for the absolute worst. Water Treatment total Capital request - $1,660,000.00 Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 3 of 6 5620 - Water Service, sub-department under Operations. Replace service truck and trailer #927 $267,000.00, backhoe buckets $11,000.00, concrete saw $50,000.00 and a mini excavator $90,000.00. Boyd stated the service truck was ordered in 2022 but would likely not be delivered until the third quarter of 2024. The concrete saw will replace the current walk-behind saw that is 20 years old. Water Service total Capital request $418,000.00 5630 - Tanks and pumps, sub department of Operations. $50,000.00 to replace pumps and motors and $10,000.00 for SCADA maintenance. These are place holders, and these items are budgeted each year. Tanks and Pumps total Capital request $60,000.00 5710 - Wastewater Treatment Plants - Mr. Hill discussed the line-item detail of the department’s $1,428,000.00 total Capital budget. A total of $650,000.00 was budgeted for building rehab and completion of earlier building projects and repairs or upgrades to equipment within the facility. A new septage receiving station $500,000.00, this station will improve the way the department receives septic waste from septic pumping companies that are currently charged a flat rate regardless of amount. The new station will measure the amount and monitor for grease contamination and will not allow it to be dumped. The budget also included $13,000.00 for the laboratory glassware washer. $65,000.00 for replacement of smaller equipment such as mowers and utility vehicles and $185,000.00 for an excavator replacement. Wastewater Treatment Plants total Capital request $1,428,000.00 5720 - Sewer Service sub department under Operations. Line items included $1,031,000.00 carry overs from 2022 and 2023 for three large trucks. $15,000.00 for skid steer jackhammer attachment, $15,000.00 for sewer smoke machine, $43,000.00 to replace truck 924(2011) and $95,000.00 for replacement bobcat skid steer. Sewer Service total Capital request $1,199,000.00 5730 Wastewater Lift Station sub department under Operations. These line items are again place holders that are budgeted each year just in case with $10,000 for SCADA and $80,000 for pumps and motors. Wastewater Lift Station total Capital request $90,000.00. Chairperson Bojo asked what exactly is SCADA? Mr. Rich replied, Supervisory Control and Data Acquisition System. This allows our operators to see what is going on out in the field at each site from their office. 5750 Flood Stations sub department under Operations. $500,000.00 budgeted for rehab to address some issues such as lead paint and other safety issues. This does not take care of all stations but will take care of a couple for this year. Flood Stations total Capital request $500,000.00 Total Water & Sewer equipment request total $5,625,650.00. 5100 R & E Water sub department under Operations. New Hydro Excavator $485,000.00, we can use 30% of lead and copper grant. Carry over from 2022 $ 267,000 to replace service truck and trailer 932. $50,000.00 for water meters at larger construction projects. Generator for Operations building $50,000.00. $500,000.00 for water main extensions and repairs, which we no longer do extensions. This covers the cost of repairing and upgrading existing lines. And you will see the same amount next in Sewer R & E. Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 4 of 6 R&E Water total Capital request $1,352,000.00 5500 R & E Sewer- The first two are again carried over from 2022 & 2023. $267,000 to replace service truck and trailer 933, $ 94,000.00 for F550 dump truck (non CDL), $130,000.00 for F750 dump truck, $110,000.00 for New Holland backhoe and as mentioned $ 500,000.00 for sewer line repairs and upgrades. R&E Sewer total Capital request $1,101,000.00 Total R&E Equipment $2,453,000.00. Moving into projects most of which are ongoing and recurring each year, which we show here through 2028. Some of these are also place holders which we hope not to use but again we need to be prepared for. Ultra Filtration Treatment $5,000,000.00. Watershed Protection Plan $ 40,000.00, this is an annual program where we use a third party to assist with field work and studies. Customer service fixed base metering $50,000.00. Annual collection and distribution contract $2,500,000.00 this is a new project that will be ongoing where we have contracted prices for a third-party contractor to come in and take care of water and sewer projects which the division cannot take care of due to scope and timing. SCADA $ 50,000.00, again this is a place holder in the event of something such as tornadoes taking out the system and we hope not to use it. Rate study $ 28,000.00, Steel tank maintenance $ 130,000.00 an ongoing contract which expires in 2025 and we hope to renew or extend it. $20,000.00 leak detection program, a third party comes in with specialized equipment to assist with identifying the leaks we cannot see. Replace transmission mains – Mt Alto and Saddle Mtn, $200,000.00 place holder that we hope not to use. $250,000.00 meter change out program to finish up 1 ½ and 2-inch meters. Chairperson Bojo asked how much longer it will take to complete this project. Parris and Boyd stated all the easier changes had been completed at this point and the remaining could take one to two days for each. We are anticipating a couple more years to finish up. McDaniel asked of all the line items what is the line you must follow in terms of what you can charge against the settlement. Boyd and Rhinehart said basically anything charged to project 5192 and some increased operational costs that are directly related to the new facility such as the additional employees that will be hired. McDaniel stated my point is we can’t just spend those funds on just anything. Rhinehart said that is correct and I think what we will do at the end of the year is assign this as a fund balance in Water for this project. It is not necessarily restricted because everything for Water is restricted to Water, but I think we do need to assign that amount going forward so it is shown that way in our financial statement that is in our annual report. McDaniel asked if we knew the final construction cost yet and Rhinehart responded with no we do not. McDaniel asked when we will know that number and Boyd responded with right now, we are meeting weekly working with Archer Westen and Insight Engineering, but we just aren’t ready yet to determine that. Boyd wrapped up with project 5188 being the 2017 SPLOST for upgrading the water system in Rosemont Park. Water and Sewer projects Capital totals $15,068,000.00 Rhinehart commented that this detail is very helpful and should help answer a lot of the questions that have come up directly related to the amount of what is budgeted in Water. And I think going over these line by line should help show we must be ready and why we have some of these there just in case. There are certain things that we just cannot not do. OTHER Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 5 of 6 None Adjourn There being no further business to discuss the meeting was adjourned. Respectfully submitted. John Boyd, Assistant Director Rome Water and Sewer Division Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, December 7, 2023 Page 6 of 6