Regular Monthly Meeting s2

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Fannin County Water Authority Regular Monthly Meeting Commissioners Meeting Room December 14, 2016, 2:00 P.M.

Anita Weaver called the meeting to order 2:00 P.M.

Members present were Anita Weaver, Chairwoman, Stan Helton, Zack Ratcliff, and Kay Kendall, Secretary. Jackie Self and Larry Chapman were absent. A quorum was present.

A motion was made by Stan Helton to approve the minutes from the Regular Monthly Meeting of the Water Authority held November 16, 2016. Zack Ratcliff seconded the motion. The motion passed unanimously.

Tom Evans with R. L. Jennings & Associates, PC thanked the FCWA Board Members for allowing him to complete the Audit again this year. He reported that Marnie Mashburn is a pleasure to work with and is very prompt in supplying him with needed information which makes the Audit process progress very smoothly. Tom supplied a draft of the financial statements as of June 30, 2016 to the FCWA Board Members for review. He explained that these financial statements are fairly stated in accordance with generally accepted accounting principles which is a clean opinion. Property owned by the FCWA was initially paid for with General funds by Fannin County, but was reimbursed by the SPLOST account so if the land is ever sold, it must be put into the SPLOST account, even if there is a gain. The FCWA has an operating loss, but more customers will turn this into an operating gain. He recommended that the customer deposits should be kept in a separate bank account. Findings of lack of segregation of duties within the FCWA office is the same as the year before, but is common within small companies. The anticipated 2011 SPLOST income is $2,500,000.00. Since the USDA loan is pre-existing revenue bond debt, the new SPLOST starting in 2017 is P a g e | 2 not eligible to repay this loan. Tom recommended that the FCWA open a new SPLOST account for 2017 SPLOST funds. He also reported that the FCWA has a good foundation for a start-up water authority that can be built upon by adding revenues faster than adding debt.

Marnie Mashburn, Administrative Assistant reported that collections are being monitored closely with few issues and the Budget vs. Actual report was given to all Board Members.

Zack Ratcliff reported that the master meter and 3000 foot of pipe is installed up Robert Miller Road within Riverwalk on the Toccoa project area. Coldwater Creek Road is almost complete and work will begin on Woodlands Bluff soon. He also reported that if work on the project is uninterrupted, lines should be tied in within 2 weeks.

Stan Helton reported that Ed Hawkins finished repairing a huge leak at Hidden Valley Drive and Ridgeview Road. Anita Weaver thanked Fannin County for the help provided by them in repairing the leak.

Kurt McCord with Carter & Sloope Consulting Engineers reported that he has reviewed invoices from HD Supply Waterworks and since the market prices change so much, the item prices will be hard for vendors to keep. He also reported that the difference is not enough to ruin a good relationship with such a dependable vendor. Kurt recommended that the FCWA pay all invoices as presented by HD Supply Waterworks.

Kurt McCord recommended that the FCWA decide if they desire more help from T. Stancil and if so it would be better to make this decision sooner than later. He also reported that the Riverwalk project is still under budget and ahead of schedule.

A motion was made by Stan Helton to allow Carter & Sloope to approve additional work by T. Stancil up to $200,000.00. Zack Ratcliff seconded the motion. The motion passed unanimously.

Chuck Burden, a Riverwalk resident questioned if the additional 4 taps outside of the GEFA approved area would be connected before service is turned on. Kurt P a g e | 3

McCord explained that these additions were not approved under the GEFA project, therefore the extensions can be made after the GEFA project is closed out.

Lynn Doss with Doss & Associates reported that these additional connections will be made with SPLOST funds.

Anita Weaver presented HD Supply invoices totaling $4672.71 and Doss & Associates invoices totaling $4856.25 to the FCWA Board.

Marnie Mashburn reported that when Georgia EPD declared the level 2 drought, The News Observer inquired about enforcements that the FCWA has in place. Kay Kendall explained that the Fannin County Water Authority does not have the authority to pass an ordinance, but could draft one to present to the Fannin County Commissioners. Lynn Doss explained that this is the responsibility of a County or City and is not a responsibility of the FCWA.

Chuck Burden voiced his appreciation regarding the progress made on the Riverwalk project and also commented that the FCWA and T. Stancil teams work very well together.

Holly Nelson, Realtor reported that she has clients interested in developing 152 acres off of Benchleg Road which is across from the Quarry Road property owned by the FCWA. These clients would like Highway access across the Quarry Road property and would possibly be willing to purchase the property or an easement. Anita Weaver, Zack Ratcliff and Larry Chapman will meet with Holly Nelson to discuss further.

Anita Weaver reported that Stan Helton was stepping down from the FCWA and presented him with a plaque in appreciation for his hard work and commitment.

A motion was made by Stan Helton to go into Executive Session to discuss real estate. Zack Ratcliff seconded the motion. The motion passed unanimously.

Coming out of executive session, no decisions were made. P a g e | 4

A motion was made by Anita Weaver that the meeting adjourns. Stan Helton seconded the motion. The motion passed unanimously.

______, Anita Weaver, Chairwoman

______, Kay K. Kendall, Secretary