Columbus, Georgia

November 11, 2002







The regular monthly meeting of the Board of Water Commissioners of

Columbus, Georgia, was held at the office of the Columbus Water Works on

Monday, November 11, 2002, at 1:30 p.m., the following Commissioners being

present:

Kathelen Spencer, Chairperson

Leon Siegel, Treasurer

James Yancey

Harry Vernon

Mayor Bobby Peters





Receipt of the Minutes of the October 7, 2002, meeting was acknowledged

by the Board and approved as written.

Chairperson Spencer took a moment to make an announcement that private

donors who have asked to remain anonymous have pledged the funds to cover the

cost of the commemorative fountain that is being erected on Broadway in front

of the RiverCenter. Funds previously budgeted for the fountain from the

Columbus Water Works can now be used for other purposes.

President Turner informed the Board that the Columbus Water Works

received the following awards:

? Excellence Award for Workplace Safety in 2001

? Certificate of Achievement for Excellence in Financial Reporting

? Award of Financial Reporting Achievement ? Emory Blount

Chairperson Spencer acknowledged their appreciation with a round of applause.

Next, Chairperson Spencer acknowledged that there were customers present at the

meeting to hear President Turner?s presentation on the Financial Plan and Rate

Adjustment. She advised that President Turner would give his presentation then

take questions from the Board and if those who are present and would like to

make a statement could do so at that time.

President Turner advised that a Capital Improvement Program had been presented

at the July Board meeting with the Board?s approval subject to the development

of the Financial Plan. The Financial Plan was presented at the October Board

meeting with the assistance of Mr. George Raftelis. At the October meeting

the Board authorized Management to hold a Public Hearing for the rate

adjustment and Capital Improvement Program, which was presented at City Council

on October 15th. President Turner showed slides that were a summary of the

slides presented at the Public Hearing. He indicated that there were six

basic issues why this rate increase needs to be implemented. They are as

follows:

A. Lowest Rates in Southeast

B. No Rate Increase in 6 Years

C. Annual Revenue Loss = $3.2 Million

D. Last 4 Years ? Used $10 Million from Reserves

E. Increasing Costly Regulations

F. Capital Improvement Needs

Following the presentation Mr. Raftelis answered questions from the Board.

Next, Chairperson Spencer recognized Jim Rhodes, Carl Hopp, Myles Caggins, Owen

Ditchfield, Mike Gaymon and Mr. Jenkins all present to speak on concerning the

proposed rate increase and/or the manner in which the Columbus Water Works is

operated. The majority of the comments were positive and are on record at the

Columbus Water Works? office.

Next, the following Resolution to adopt the proposed rate increase was

presented to the Board for their approval.

RESOLUTION



WHEREAS, the customers of the Columbus Water Works currently experience

among the lowest water and sewer rates of cities of comparable size and

operating conditions in the Southeastern United States, and



WHEREAS,Columbus Water Works has recently lost large water using

customers with revenue exceeding three (3) million dollars annually, and



WHEREAS, Columbus Water Works, since its last rate increase in 1996,

has experienced increasing operating expenses, and anticipates incurring

continuing increases in operating expenses in the upcoming years; and



WHEREAS, Columbus Water Works faces numerous, increasingly costly State

and Federal environmental regulations, and



WHEREAS, Columbus Water Works developed and the Board has approved a

Capital Improvement Program requiring annual expenditures of between seven (7)

and sixteen (16) million dollars in each year for the next ten years to

refurbish aging water and sewer system infrastructure, to meet the communities

future needs, and to comply with the above noted regulations, and



WHEREAS, Raftelis Financial Consultants have been employed to assist in

development of an effective financial plan and has recommended that it would be

good financial practice to spread the necessary rate increase over a five year

period as opposed to a much larger one-time increase, and



WHEREAS, the Board has provided for a public hearing at Columbus City

Council on October 15, 2002 where information describing the financial

situation and proposed five year rate and fee adjustments were presented.



NOW, THEREFORE, BE IT RESOLVED that the Columbus Board of Water

Commissioners does hereby adopt the recommended five year rate program, as

presented, to become effective for all water use initially included in bills

rendered on or after January 2, 2003, and

BE IT FURTHER RESOLVED that the Board of Water Commissioners will, in

conjunction with receipt of the annual financial audit, review annually the

planned rate program and make any adjustment which may be required by changing

regulatory and projected financial conditions.



SO RESOLVED THIS 11TH DAY OF NOVEMBER, 2002.



__________________________

Chair

__________________________

Treasurer

__________________________

Member

__________________________

Member

__________________________

Member

ATTEST:

____________________

Secretary



Mr. Yancey made a motion to adopt the above Resolution seconded by

Treasurer Siegel. Motion carried with Mayor Peters voting no.

Management presented the reports from the Division of Operations, Division of

Engineering and Division of Environmental and Information Services. Following

each presentation, the Board acknowledged the Division Reports for the month of

October.

Management advised the Board that bids were received on October 22, 2002, for

the upgrade of SCADA and electrical systems for 16 sewage lift stations. This

project will replace antiquated equipment, for which parts are no longer

available and will also provide additional information for better operation of

the lift stations. The project budget is $375,000.00 and is to be funded via

the CWW 2002-03 operating budget as a capital reserve item. Bids for the Lift

Station Monitor and Control Upgrade 2002 are as follows:

Contractor Total Bid

Applied Automation $349,320.00

Smith-Gray Electric Co. $489,632.25



Following discussion, motion was made and seconded authorizing

Management to accept the low bid from Applied Automation in the amount of

$349,320.00. Motion carried.

The Financial Report for the month of October, along with the Meter

Reading, Employee and Customer Services? Reports, were presented to the

Board. Following discussion, motion was made and seconded to accept these

reports. Motion carried.

Management provided copies of letters thanking members of the staff for

their participation and services provided from various organizations and

individuals. The Board acknowledged Management?s report.

There being no further business, the meeting adjourned.





_______________________________

Emory E. Blount, Secretary