Water & Sewer Committee

Sammy Rich, City Manager John Boyd, 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, August 1, 2024 9:00 AM PRESENT: Chairperson Mayor Pro Tem Jim Bojo Commissioner Bill Collins Commissioner Randy Quick Commissioner Elaina Beaman Commissioner Wayne Robinson Mr. Sammy Rich, City Manager Mr. Andy Davis, City Attorney Mr. John Boyd, Division Director Mr. Bryan Parris, Customer Service Director Mr. Wayne Stanely, Water Treatment Facilities Director Mrs. Jeff Pope, Assistant Water Treatment Facilities Director Mr. Doug Walker, Public Information Officer Mrs. Kelly Parker, Assistant to City Manager Mr. Joe Smith, City Clerk Mr. Mark Green, Deputy City Clerk VISITORS: Bryan Pate, InSite Engineering Shannon King, InSite Engineering Jason Ray, Archer Western David Crowder, WRGA News Multiple citizens CALL TO ORDER Chairperson Jim Bojo welcomed everyone and called the meeting to order. REVIEW OF THE MINUTES No changes to the May 2, 2024, minutes were suggested, and minutes were approved by common consent. FINANCIAL REPORT In Mrs. Rhinehart’s absence Mr. Boyd gave a brief update of the financial statements. He reported operating revenues were down $2.8 million due to the rate rollback but again interest income is up $4.7 million off setting that shortfall. Expenses were in line with budget and at $10.5 million for this year compared to $10 million this time last year. Cash is at $194 million compared to $181 million last year, which includes the settlement. Without the settlement cash is $16.4 million compared to $18.1 million last year. OLD BUSINESS PFAS and Water Treatment Mr. Boyd began with a statement saying, one thing, I would like to emphasize is that we can’t continue to kick this can down the road. Do we want to be the community that was awarded funds and had been working on the project for eight months, and not meet the deadline. Boyd then turned the discussion over to Bryan Pate with Insite Engineering. Mr. Pate reminded the committee that four sites had been seriously considered for the project but only two were feasible- Riverside Parkway and the Public Works site on Vaughn Road. Pate’s recap showed the estimated cost of $194,500,000 with a $31 million contingency for unexpected cost, for a total of $226 million with the Riverside Parkway location. However, Pate expects that number to come down saying, “We will continue to refine that budget as we go.” “We know the major scope of the project, but as we get further down into what types of pumps and membranes we are going to put in, those prices begin to narrow down. All those things will happen before we execute a construction contract.” Pate’s estimated cost for the public works location is $204,500,000 with $31 million contingency, plus $1 million for property acquisition, $29,500,000 for public works relocation, $150,000 for environmental investigation, $2,500,000 for environmental remediation, and $4 million for demolition. For a total of $273,150,000.00. Chairman Bojo commented, “I have real heartburn about having to spend an extra $50 million.” Pate continued explaining, using the public works site would require fast-tracking the schedule and beginning the work almost right away to possibly meet the deadline for completion adding, “a lot of things have to go right.” The project deadline is the second quarter of 2028. Commissioner Robinson told the committee he still opposes the Riverside Parkway site and would prefer that location to be used for private development. Commissioner Quick made the motion to accept Riverside Parkway location with a $200 million cap. Chairman Bojo seconded the motion. City Manager Sammy Rich stated he could get this in for next Monday’s meeting. NEW BUSINESS Rate Study Mr. Boyd reminded the committee the rate rollback in 2023 also rolled back the portion of the rate increases included for normal operating cost increases and that we were due to begin a rate study just after the rollback but decided to postpone. We now need to evaluate a rate increase for 2025. Mr. Boyd asked if the committee wanted to do rate study or a rate increase based on the CPI, (Consumer Price Index). Mr. Boyd and Mr. Rich favored a CPI for now and a rate study next year. Commissioner Collins made the motion to do a rate study and Commissioner Quick seconded the motion. OTHER None Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, August 1, 2024 Page 2 of 3 Adjourn There being no further business to discuss the meeting was adjourned. Respectfully submitted. John Boyd, Director Rome Water and Sewer Division Minutes prepared by: Bryan Parris, Customer Service Director Water and Sewer Committee/ Commission Minutes, August 1, 2024 Page 3 of 3