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2014-08-25-Meeting Agenda
Finance Committee Meeting Commission Chamber- 8/25/2014- 12:55 PM FINANCE 1. Approve the acquisition of one new animal transport truck to upgrade the Animal Services Department’s transport fleet. Attachments 2. Approve the replacement of one new emergency response vehicle to update the Augusta Fire Department’s emergency response fleet. Attachments 3. Approve 2 Public Safety Vehicles for the Sheriff’s Office – Civil Transportation Division for the purpose of transporting prisoners to and from prisons within Georgia and other States. Attachments 4. Approve the replacement of 2 pickup trucks for inspectors of Augusta Utilities Department-Admin/Engineering Division. Attachments 5. Motion to approve Water and Sewer Revenue Bonds Series 2014 bond resolution and authorize the Mayor and Clerk to sign all necessary documents. (Requested by Commissioner Wayne Guilfoyle) Attachments 6. Approve request to compel the Finance Director to provide the Governing Body information relative to the disposition of interest monies earned on SPLOST proceeds. An Augusta Georgia SPLOST Fund Balances Report as of 12-31-2013 reflects the following: SPLOST I interest earnings $7,364,408; SPLOST II interest earnings $12,954.082; SPLOST III interest earnings $20,514,527; SPLOST IV interest earnings $18,696,003; SPLOST V interest earnings $11,948,048; SPLOST VI interest earnings $381,303. In addition, the Finance Director will provide documentation that will reflect the authorized usage of such funds. Any other relevant information is solicited. (Requested by Commissioner Lockett) Attachments 7. Motion to approve the minutes of the Finance Committee held on July 28, 2014. Attachments www.augustaga.gov 8. Present Revised 2015 Budget Calendar for approval. Attachments 9. Discuss the following ARC contractual requirement relative to organizations who receive SPLOST funding "Organization shall comply with the purchasing policies of Augusta- Richmond County regarding the advertising for bids, the securing of bids, and payment, performance bonds and contracting. Payments to any sub-contractor employed by the Organization shall be made directly by the Organization, subject to Augusta’s audit and approval. If the total project costs exceed the amount funded by Augusta and the Matching Funds, the Organization shall provide proof of other funding sources. Payments by the Organization to sub- contractors shall be made only upon presentation of verified invoices."(Requested by Commissioner Marion Williams and referred from the August 19th Commission meeting) Attachments Finance Committee Meeting 8/25/2014 12:55 PM 2014 - Animal Services Department:Finance Department - Fleet Management Division Caption:Approve the acquisition of one new animal transport truck to upgrade the Animal Services Department’s transport fleet. Background:The Richmond County Animal Services Department would like to purchase one additional animal transport truck to assist in the tremendous task of transporting stray animals to the service center from all corners of the county. There are currently 5 animal transport trucks assigned. The optimum number of trucks needed is 6. This is based on current utilization, number of employees and current need. The population of stray animals has increased over the last several years but the department has not been able to add an additional vehicle to their fleet due to a shortage of available funds. Analysis:Fleet Management has requested to utilize the Georgia State bid contract in order to purchase the requested truck. The Georgia state bid contract number is SWC99999-SPD-ES40199373-002 and assures the best pricing throughout the state for this particular vehicle. Financial Impact:The animal transport truck will be purchased for $38,621.00. Funding for the purchase of this equipment will be provided by the current SPLOST VI sales tax program. Alternatives:1. Approve the Request 2) Disapprove the request Recommendation:Approve the request for the purchase of one animal transport truck using the current SPLOST VI sales tax program Funds are Available in the Following Accounts: Phase VI of the Sales Tax Referendum - Public Safety 328-03- 1310/54.22210 211-03-6001/5422210 Cover Memo Item # 1 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 1 Attachment number 1 \nPage 1 of 7 Item # 1 Attachment number 1 \nPage 2 of 7 Item # 1 Attachment number 1 \nPage 3 of 7 Item # 1 Attachment number 1 \nPage 4 of 7 Item # 1 Attachment number 1 \nPage 5 of 7 Item # 1 Attachment number 1 \nPage 6 of 7 Item # 1 Attachment number 1 \nPage 7 of 7 Item # 1 Finance Committee Meeting 8/25/2014 12:55 PM 2014 - Fire Department Department:Finance Department - Fleet Management Caption:Approve the replacement of one new emergency response vehicle to update the Augusta Fire Department’s emergency response fleet. Background:The Augusta Fire Department would like to replace an older emergency response vehicle used by Battalion Chiefs, asset number 204040, a 2004 model with 127,466 miles with a new, more updated vehicle. An evaluation sheet is attached for review. These units are a crucial part of the Fire Department’s emergency response command group. Analysis:: Fleet Management has requested to utilize the Georgia State bid contract in order to purchase the requested vehicle. The Georgia state bid contract number is SWC99999-SPD-ES40199373-004 and assures the best pricing throughout the state for this particular type of vehicle. Financial Impact:The emergency response vehicle will be purchased for $35,111.71. Funding for the purchase of this vehicle will be provided by the Fire Department’s capital fund outlay. Alternatives:1.Approve the request, 2) disapprove the request Recommendation:Approve the request for the replacement of one emergency response vehicle for the Augusta Fire Department and approve the replaced vehicle as surplus and available for auction. Funds are Available in the Following Accounts: Fire Department Capital Outlay 274034110-5422210 REVIEWED AND APPROVED BY:Cover Memo Item # 2 Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 2 Attachment number 1 \nPage 1 of 1 Item # 2 Attachment number 2 \nPage 1 of 7 Item # 2 Attachment number 2 \nPage 2 of 7 Item # 2 Attachment number 2 \nPage 3 of 7 Item # 2 Attachment number 2 \nPage 4 of 7 Item # 2 Attachment number 2 \nPage 5 of 7 Item # 2 Attachment number 2 \nPage 6 of 7 Item # 2 Attachment number 2 \nPage 7 of 7 Item # 2 Finance Committee Meeting 8/25/2014 12:55 PM 2014 - Sheriff Transport Tahoes Department:Finance Department - Fleet Management Division Caption:Approve 2 Public Safety Vehicles for the Sheriff’s Office – Civil Transportation Division for the purpose of transporting prisoners to and from prisons within Georgia and other States. Background:The Sheriff’s Office is requesting to purchase two Tahoes for the purpose of transporting prisoners to other facilities located in Georgia and other state facilities. Currently there are only two vehicles being used for this purpose. These vehicles are not outwardly marked as police vehicles for security reasons. The emergency lights will be mounted inside the vehicle and partisions will be installed. Analysis:Fleet Management has requested use of the Georgia state bid contract for the purchase of these vehicles. The state contract number is 99999-SPD-ES40199409-0002 and assures the best pricing state wide,. The state contract for these type vehicles is currently held by Hardy Chevrolet, Inc. of Dallas, Georgia. Please see attachment for pricing detail. Financial Impact:The price for the vehicles is $32,920.00 each for a total of $65,840.00. The vehicles will be purchased through use of the SPLOST VI sales tax program. Alternatives:1. approve the purchase 2. disapprove the purchase Recommendation:Fleet Management recommends the acquisition of the two tahoes for transportation of prisoners as indicated. Funds are Available in the Following Accounts: Sales Tax Phase VI - Public Safety Vehicles REVIEWED AND APPROVED BY: Cover Memo Item # 3 Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Attachment number 1 \nPage 1 of 7 Item # 3 Attachment number 1 \nPage 2 of 7 Item # 3 Attachment number 1 \nPage 3 of 7 Item # 3 Attachment number 1 \nPage 4 of 7 Item # 3 Attachment number 1 \nPage 5 of 7 Item # 3 Attachment number 1 \nPage 6 of 7 Item # 3 Attachment number 1 \nPage 7 of 7 Item # 3 Finance Committee Meeting 8/25/2014 12:55 PM 2014 - Utilities Engineers Truck Department:Finance Department - Fleet Management Division Caption:Approve the replacement of 2 pickup trucks for inspectors of Augusta Utilities Department-Admin/Engineering Division. Background:Fleet Management would like to request replacement of 2 older pickup trucks used by inspectors. The vehicles designated for replacement are inappropriate for the tasks and environment they have to work in. The replaced trucks are as follows: F00141 is a 2001 model Dodge 1500 pickup truck with 137,026 miles; and F00147, a 2001 Ford Ranger with 128,839 miles. Vehicle evaluations and bid tabsheet results are attached for your review. Analysis:The Procurement Department published a competitive bid using the Demand Star application for the 6,000 GVW pickup trucks: Bid 14-115 results were as follows for this model truck: Allan Vigil-Fayetteville = $25,763.00 each; Allan Vigil-Morrow = $25,111.00 each; Bobby Jones Ford = $24,501.00 each; Fairway Ford = $25,156.00 each; Langsdale Chevrolet = $29,675.00 each; Master Buick-GMC = $35,865.00 each; and Thomson Motor Centre = $24,710.00 each. Financial Impact:Two (2) Ford F150 pickup trucks @ $24,501.00 each for a total cost of $49,002.00. The department will purchase the vehicles through the Georgia Municipal Association Lease Program for 3 annual payments of $16,334.00 each. Alternatives:1. Approve the recommendation, 2) disapprove the recommendation, 3) approve the recommendation in part Recommendation:Approve the purchase of 2 F150 pickup trucks and declare the replaced vehicles as surplus and available for auction Funds are Available in the Following Accounts: 506-04-3110-6111631 Cover Memo Item # 4 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 4 Attachment number 1 \nPage 1 of 2 Item # 4 Attachment number 1 \nPage 2 of 2 Item # 4 Attachment number 2 \nPage 1 of 1 Item # 4 Invitation to Bid Sealed bids will be received at this office on Wednesday, January 15, 2014 @ 11:00 a.m. for furnishing: Bid Item 14-115 6,000 GVW Series Pickup Truck for Fleet Management Bid Item 14-116 8,500 GVW Series Pickup Truck for Fleet Management Bids will be received by Augusta, GA Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams Procurement Department 530 Greene Street - Room 605 Augusta, Georgia 30901 706-821-2422 Bid documents may be viewed on the Augusta, Georgia web site under the Procurement Department ARCbid. Bid documents may be obtained at the office of the Augusta, GA Procurement Department, 530 Greene Street – Room 605, Augusta, GA 30901. Documents may be examined during regular business hours at the offices of Augusta, GA Procurement Department. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Friday, January 3, 2014 @ 5:00 P.M. No bid will be accepted by fax, all must be received by mail or hand delivered. No Bid may be withdrawn for a period of 90 days after time has been called on the date of opening. Invitation for bids and specifications. An invitation for bids shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the invitation to bid including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark BID number on the outside of the envelope. Bidders are cautioned that acquisition of BID documents through any source other than the office of the Procurement Department is not advisable. Acquisition of BID documents from unauthorized sources places the bidder at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. GERI A. SAMS, Procurement Director Augusta Chronicle December 12, 19, 26, 2013 January 2, 2014 Metro Courier December 18, 2013 Revised: 3/7/2013 Attachment number 3 \nPage 1 of 1 Item # 4 Allan Vigil Ford Lincoln Mercury 6790 Mount Zion Boulevard Morrow, GA 30260 Allan Vigil Ford Fayetteville 275 Glen St North Fayetteville GA 30214 Langdale Chevrolet 1006 W Franklin St Sylvester GA 31791 Fairway Ford 4158 Washington Road Evans, GA 30809 Master Buick GMC 3710 Washington Road Augusta, GA 30907 Bobby Jones Ford 3480 Wrightsboro Road Augusta, GA 30909 Thomson Chrysler Dodge Jeep Ram 2158 Washington Road Thomson GA 30824 YES YES YES YES Yes YES YES 94460 224348 523776 689847 665555 117480 369935 SAVE Form YES YES YES YES Yes YES YES 5.01 Full-Size Truck-Reg Cab2W $16,690.00 $17,074.00 $20,900.00 $17,476.00 $26,053.00 $17,072.00 $20,515.00 5.02 Full-Size Truck-Reg Cab4W $19,663.00 $20,197.00 $23,999.00 $20,336.00 $29,717.00 $19,932.00 $21,623.00 5.03 Full-Size Truck-Ext CabSW $18,800.00 $19,021.00 $23,545.00 $19,370.00 $29,559.00 $21,000.00 $20,578.00 5.04 Full-Size Truck-Ext CabSW $21,088.00 $22,009.00 $26,610.00 $22,411.00 $33,221.00 $22,023.00 $23,433.00 5.05 Full-Size Truck-Ext CabSW $19,586.00 $19,781.00 $24,480.00 $20,183.00 $30,490.00 $19,852.00 $20,026.00 5.06 Full-Size Truck-Ext Cab 4D $22,594.00 $22,769.00 $27,540.00 $23,171.00 $34,152.00 $22,784.00 $22,468.00 5.07 Full-Size Truck-Crew Cab 4 $22,993.00 $23,520.00 $27,099.00 $23,922.00 $34,538.00 $23,288.00 $22,321.00 5.08 Full-Size Truck-Crew Cab 4 $25,866.00 $26,303.00 $29,349.00 $26,705.00 $37,436.00 $26,146.00 $24,465.00 5.09 Speed Control/Tilt Steering $192.00 $225.00 STANDARD $225.00 NA $192.00 STANDARD 5.10 Skid Plate Pack (4X4 only)$137.00 $160.00 $129.00 $160.00 $150.00 $137.00 $150.00 5.11 Minimum 8 Foot Bed $375.00 Reg $278.00 Super $1,206.00 $391.00 $325.00 $375.00 $278.00 $340.00 5.12 Black platform running brds $256.00 $250.00 $601.00 $315.00 $690.00 $256.00 $560.50-$693.50 5.13 Electric windows & do locks $981.00 $950.00 $519.00 $1,150.00 NA $811.00 EXCEPTION 5.14 Trailer Tow Package $320.00 $375.00 $326.00 $350.00 $375.00 $320.00 EXCEPTION 6.01 Fire Extinguisher $85.00 $95.00 $73.00 $48.00 $48.00 $81.12 6.02 Outlet Receptacle $45.00 $225.00 $97.00 $55.00 $55.00 $38.95 6.03 Bedliner $325.00 $450.00 $400.00 $300.00 $475.00 $300.00 $370.00 6.04 Toolbox $300.00 $700.00 $331.00 $240.00 $250.00 $403.00 6.05 Trailer Hitch $365.00 $278.00 $38.00 $220.00 $475.00 $30.00 EXCEPTION 6.06 Trailer Wiring $80.00 INCLUDED INCLUDED $25.00 INCLUDED STANDARD 6.07 Trailer Ball $25.00 $24.00 $37.00 $10.00 $40.00 $10.00 $24.55 6.08 Window Tint, Reg Cab $125.00 $200.00 $144.00 $140.00 $100.00 $90.00 $140.00 Bid Item #14-115 6000 GVW Series Pickup Truck for Augusta, Georgia - Fleet Department Bid Opening Date: Wednesday, November 15, 2014 @ 11:00 a.m. Vendors 5.00 Vehicle/Options Required5.00 Vehicle/Options Required 6.00 Outfitter's Specialty Items E-Verify Number Attachment B E-Verify Number Page 1 of 2 At t a c h m e n t n u m b e r 4 \ n P a g e 1 o f 2 It e m # 4 Allan Vigil Ford Lincoln Mercury 6790 Mount Zion Boulevard Morrow, GA 30260 Allan Vigil Ford Fayetteville 275 Glen St North Fayetteville GA 30214 Langdale Chevrolet 1006 W Franklin St Sylvester GA 31791 Fairway Ford 4158 Washington Road Evans, GA 30809 Master Buick GMC 3710 Washington Road Augusta, GA 30907 Bobby Jones Ford 3480 Wrightsboro Road Augusta, GA 30909 Thomson Chrysler Dodge Jeep Ram 2158 Washington Road Thomson GA 30824 Bid Item #14-115 6000 GVW Series Pickup Truck for Augusta, Georgia - Fleet Department Bid Opening Date: Wednesday, November 15, 2014 @ 11:00 a.m. Vendors 6.09 Window Tint, Ext Cab $150.00 $225.00 $181.00 $145.00 $100.00 $105.00 $140.00 6.10 Window Tint, Crew Cab $175.00 $300.00 $206.00 $155.00 $100.00 $130.00 $140.00 6.11 Safety Cone Holder $80.00 $125.00 $94.00 $45.00 $45.00 $75.00 6.12 Safety Cones $80.00 $55.00 $90.00 $120.00 $60.00 $45.00 7.01 Backup Alarm $75.00 $86.00 $63.00 $35.00 $138.00 $65.00 $75.00 7.02 Magnetic LED Light $695.00 $458.00 $462.00 $355.00 $355.00 $645.00 7.03 LED Top Mount Light $680.00 $625.00 $594.00 $462.00 $462.00 $620.00 2014 2014 2014 2014 2014 2014 2014 FORD FORD CHEVROLET FORD GMC FORD RAM F-150 F-150 CC15703 CK15703 CC15753 CK15753 CC15753 CK15753 CC15743 CK15743 F-150 SIERRA F-1C F-1E X1C X1E W1C & W1E 1500 60 TO 90 DAYS 12 TO 14 WEEKS ARO 60 TO 70 DAYS ARO 60 TO 90 DAYS ARO 60 TO 75 DAYS ARO 6 TO 8 WEEKS 7.00 Alert Warning Systems The following vendor submitted a statement of "No Bid": Carl Black Chevrolet, 110 Roberts Blvd., Kennesaw, GA 30144 Appox Delivery Time Year Make Model Page 2 of 2 At t a c h m e n t n u m b e r 4 \ n P a g e 2 o f 2 It e m # 4 Attachment number 5 \nPage 1 of 5 Item # 4 Attachment number 5 \nPage 2 of 5 Item # 4 Attachment number 5 \nPage 3 of 5 Item # 4 Attachment number 5 \nPage 4 of 5 Item # 4 Attachment number 5 \nPage 5 of 5 Item # 4 Attachment number 6 \nPage 1 of 2 Item # 4 Attachment number 6 \nPage 2 of 2 Item # 4 Finance Committee Meeting 8/25/2014 12:55 PM Approve Water and Sewer Revenue Bonds Series 2014 bond resolution and authorize the Mayor and Clerk to sign all necessary documents Department:Finance / Utilities Caption:Motion to approve Water and Sewer Revenue Bonds Series 2014 bond resolution and authorize the Mayor and Clerk to sign all necessary documents. (Requested by Commissioner Wayne Guilfoyle) Background:On June 6, 2014 the Commission approved the refunding of the Water and Sewer Revenue Bonds Series 2004. This is the next step in the process of issuing the 2014 Bond Series. Analysis:This is the next step in the process in issuing the 2014 bond series. Financial Impact:n/a Alternatives:None Recommendation:Approve bond resolution Funds are Available in the Following Accounts: n/a REVIEWED AND APPROVED BY: Cover Memo Item # 5 ATLANTA 5572182.2 ________________________________________________________ SERIES 2014 BOND RESOLUTION _______________________________________________________ ADOPTED AUGUST 5, 2014 BY THE AUGUSTA-RICHMOND COUNTY COMMISSION RELATING TO AUGUSTA, GEORGIA WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS (SECOND RESOLUTION) SERIES 2014 Attachment number 1 \nPage 1 of 33 Item # 5 (i) ATLANTA 5572182.2 TABLE OF CONTENTS This Table of Contents is for convenience of reference only and is not part of this Series 2014 Bond Resolution. Page ARTICLE I - DEFINITIONS ...................................................................................................6 Section 1.1. Definitions....................................................................................................6 ARTICLE II - THE SERIES 2014 BONDS..............................................................................9 Section 2.1. Authorization; Designation of Series 2014 Bonds.......................................9 Section 2.2. Parity Certification .......................................................................................9 Section 2.3. Series 2014 Bond Details ...........................................................................10 Section 2.4. Form of Series 2014 Bonds........................................................................11 Section 2.5. Global Form; Securities Depository; Ownership of Series 2014 Bonds .........................................................................................................21 ARTICLE III - REDEMPTION OF SERIES 2014 BONDS ..................................................23 Section 3.1. Optional and Mandatory Redemption of Series 2014 Bonds ....................23 ARTICLE IV - CONSTRUCTION FUND; CUSTODY AND APPLICATION OF PROCEEDS; REFUNDING PROGRAM.....................................................24 Section 4.1. Series 2014 Project Account ......................................................................24 Section 4.2. Application of Proceeds of Series 2014 Bonds ..........................................24 Section 4.3. Redemption of Refunded Bonds ................................................................24 Section 4.4. Direction to Paying Agent for the Refunded Bonds ..................................25 Section 4.5. Creation of 2004 Defeasance Account ......................................................25 Section 4.6. Termination of Rights ................................................................................25 ARTICLE V - GENERAL PROVISIONS .............................................................................26 Section 5.1. Continuing Disclosure for Series 2014 Bonds ...........................................26 ARTICLE VI - MISCELLANEOUS PROVISIONS ..............................................................27 Section 6.1. Continuance and Effect of Bond Resolution .............................................27 Section 6.2. Designation of Bond Registrar and Paying Agent for the Series 2014 Bonds ................................................................................................27 Section 6.3. Validation of Series 2014 Bonds ...............................................................27 Section 6.4. Preliminary Official Statement; Official Statement; and Deemed Final Certificate .........................................................................................27 Attachment number 1 \nPage 2 of 33 Item # 5 (ii) ATLANTA 5572182.2 Section 6.5. Authorization of Series 2014 Registrar and Paying Agent Agreement ......................................................................................28 Section 6.6. Effective Date ............................................................................................28 Section 6.7. Repeal of Conflicting Resolutions .............................................................28 Section 6.8. General Authorization ................................................................................28 Section 6.9. Waiver of Bond Audit ................................................................................29 Section 6.10. Bond Resolution Constitutes a Contract ....................................................29 SIGNATURES AND SEAL ....................................................................................................... 30 EXHIBIT A - NOTICE OF CALL FOR REDEMPTION Attachment number 1 \nPage 3 of 33 Item # 5 -3- ATLANTA 5572182.2 SERIES 2014 BOND RESOLUTION A SERIES 2014 BOND RESOLUTION TO RATIFY, REAFFIRM, SUPPLEMENT, AND AMEND THAT CERTAIN MASTER BOND RESOLUTION ADOPTED ON OCTOBER 16, 2012, AS SUPPLEMENTED AND AMENDED BY THAT CERTAIN PARITY BOND RESOLUTION ADOPTED ON JUNE 18, 2013 AND THAT CERTAIN SUPPLEMENTAL BOND RESOLUTION ADOPTED ON JULY 16, 2013; TO PROVIDE FOR THE ISSUANCE BY AUGUSTA, GEORGIA OF ITS WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS (SECOND RESOLUTION), SERIES 2014 FOR THE PURPOSE OF REFUNDING ALL OF ITS OUTSTANDING WATER AND SEWERAGE REVENUE BONDS, SERIES 2004 AND FOR THE PURPOSE OF FINANCING THE COSTS OF MAKING ADDITIONS, EXTENSIONS, AND IMPROVEMENTS TO ITS WATER AND SEWER SYSTEM; TO PROVIDE TERMS, PROVISIONS, AND CONDITIONS FOR THE ISSUANCE OF ITS WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS (SECOND RESOLUTION), SERIES 2014; AND FOR OTHER RELATED PURPOSES. WHEREAS, Augusta, Georgia (the “Consolidated Government”), by a Master Bond Resolution duly and validly adopted on October 16, 2012 (the “Master Resolution”), as supplemented and amended by a Parity Bond Resolution duly and validly adopted on June 18, 2013 and a Supplemental Resolution duly and validly adopted on July 16, 2013 (collectively, the “Series 2013 Resolution”), authorized, issued, and delivered (1) $138,830,000 in original aggregate principal amount of its Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2012 (the “Series 2012 Bonds”), all of which are currently outstanding; and (2) $22,070,000 in original aggregate principal amount of its Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013 (the “Series 2013 Bonds”), all of which are currently outstanding; and WHEREAS, terms used in this Series 2014 Bond Resolution and not otherwise defined herein shall have the meaning assigned to such terms in the Master Resolution; and WHEREAS, under the terms of the Master Resolution, the Series 2012 Bonds and the Series 2013 Bonds (collectively the “Prior Bonds”) are special limited obligations of the Consolidated Government payable solely from and secured by a second priority pledge of and lien on the Pledged Revenues; and WHEREAS, the Prior Bonds were issued, and the Master Resolution, as supplemented and amended by the Series 2013 Resolution (collectively the “Prior Resolution”), authorizing the Attachment number 1 \nPage 4 of 33 Item # 5 -4- ATLANTA 5572182.2 Prior Bonds was adopted, subject to and in conformity with the provisions of the Prior Lien Resolution; and WHEREAS, the Consolidated Government, by the Prior Lien Resolution, authorized, issued, and delivered (1) $160,000,000 in original aggregate principal amount of its Water and Sewerage Revenue Bonds, Series 2004 (the “Series 2004 Bonds”), all of which are currently outstanding; and (2) $177,010,000 in original aggregate principal amount of its Water and Sewerage Revenue Refunding Bonds, Series 2007 (the “Series 2007 Bonds”), which are currently outstanding in the aggregate principal amount of $159,600,000; and WHEREAS, under the terms of the Prior Lien Resolution, the Series 2004 Bonds and the Series 2007 Bonds (collectively the “Prior Lien Bonds”) are special limited obligations of the Consolidated Government payable solely from and secured by a first priority pledge of and lien on the Pledged Revenues; and WHEREAS, pursuant to the Prior Resolution, notwithstanding anything in the Prior Lien Resolution to the contrary, the Consolidated Government has agreed that it will not issue any additional bonds or obligations of any kind payable from a lien on net revenues of the System ranking as to such lien on net revenues of the System created by the Prior Lien Resolution on a parity with the Prior Lien Bonds; and WHEREAS, the Master Resolution provides for the issuance under certain conditions of Additional Bonds payable from and secured by Pledged Revenues and ranking on a parity as to the pledge of and lien on the Pledged Revenues with the Prior Bonds; and WHEREAS, the Consolidated Government has determined that by refunding all of the outstanding Series 2004 Bonds, it can achieve debt service savings; and WHEREAS, the Consolidated Government has determined that there is a need for the improvement, betterment, and extension of the System, all in accordance or substantially in accordance with the “Engineering Report,” dated July 2014, prepared by the Consolidated Government’s consulting engineers, ZEL Engineers, Augusta, Georgia, which has been presented at this meeting at which this Series 2014 Bond Resolution is being adopted and which is on file in the Minute Book of the Commission and which is incorporated herein by reference and in accordance or substantially in accordance with plans and specifications on file from time to time with the Consolidated Government (the “Series 2014 Project”), and the Consolidated Government presently anticipates that the cost of the Series 2014 Project to be financed by the Series 2014 Bonds hereinafter authorized will be approximately $30,000,000; and WHEREAS, the Consolidated Government has determined that it is in the best interests of the citizens of the area served by the System for the Consolidated Government to refund all of the outstanding Series 2004 Bonds, to make the additions, extensions, and improvements to the System described above, and to finance the costs of the foregoing by issuing its Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2014 (the “Series 2014 Bonds”) in an aggregate principal amount not to exceed $198,000,000; and WHEREAS, the Prior Lien Bonds and the Prior Bonds are the only presently outstanding revenue bonds or obligations of the Consolidated Government secured by a pledge of and lien on Attachment number 1 \nPage 5 of 33 Item # 5 -5- ATLANTA 5572182.2 the Pledged Revenues, and the Consolidated Government is now complying in all respects with the terms, provisions, and covenants of the Prior Lien Resolution and the Prior Resolution and is maintaining the respective special funds therein created in the full amount as required; and WHEREAS, the Series 2014 Bonds to be issued by the Consolidated Government shall be Additional Bonds payable from and secured by Pledged Revenues and shall rank on a parity as to the pledge of and lien on the Pledged Revenues with the Prior Bonds, as permitted under Article VI of the Master Resolution; and WHEREAS, Section 6.6 of the Master Resolution provides that (1) the Consolidated Government will adopt a Series Resolution authorizing the issuance of any additional Bonds and reciting that the requirements of Article VI of the Master Resolution have been satisfied, and will set forth in such proceedings, among other things, the date or dates such additional Bonds will bear and the rate or rates of interest, interest payment date or dates, maturity date or dates, and redemption provisions with respect to such additional Bonds and any other matters applicable to such additional Bonds as the Consolidated Government may deem advisable; and (2) any such Series Resolution will restate and reaffirm, by reference, all of the applicable terms, conditions, and provisions of the Bond Resolution not modified by the Series Resolution; and WHEREAS, the Master Resolution requires a Series Resolution to establish the date or dates of the pertinent series of Bonds, the schedule of maturities of such Bonds, whether any such Bonds will be Compound Interest Bonds, the name of the purchaser(s) of such series of Bonds, the purchase price thereof, the rate or rates of interest to be borne thereby, whether fixed or variable, the interest payment dates for such Bonds, the terms and conditions, if any, under which such Bonds may be made subject to redemption (mandatory or optional) prior to maturity, the form of such Bonds, and such other details as the Consolidated Government may determine; and WHEREAS, so long as the Prior Lien Bonds remain outstanding, the Prior Bonds, the Series 2014 Bonds, and any Additional Bonds will be payable solely from, and secured by, a second priority pledge of and lien on Pledged Revenues; and NOW, THEREFORE, BE IT RESOLVED by the Augusta-Richmond County Commission, as follows: Attachment number 1 \nPage 6 of 33 Item # 5 -6- ATLANTA 5572182.2 ARTICLE I DEFINITIONS Section 1.1. Definitions. (a) The definitions contained in the Master Resolution, particularly Article I thereof, are hereby amended, modified, and supplemented as follows, and the following terms shall have the meanings specified below, unless the context clearly requires otherwise. “Authorized Denominations” means, with respect to the Series 2014 Bonds, $5,000 and any integral multiple thereof. “Bond Registrar” means, with respect to the Series 2014 Bonds, U.S. Bank National Association. “Governing Body” means the Augusta-Richmond County Commission and any predecessor or successor in office to such present body, and any Person to whom or which may hereafter be delegated by law the duties, powers, authority, obligations, or liabilities of the present body, either in whole or in relation to the System. “Interest Payment Date” means, with respect to the Series 2014 Bonds, each April 1 and October 1, commencing April 1, 2015. “Master Resolution” means the Master Bond Resolution duly and validly adopted by the Consolidated Government on October 16, 2012, authorizing the issuance and delivery of the Series 2012 Bonds. “Paying Agent” means, with respect to the Series 2014 Bonds, U.S. Bank National Association. “Prior Bonds” means, collectively, the Series 2012 Bonds and the Series 2013 Bonds. “Prior Resolution” means the Master Resolution, as supplemented and amended by the Series 2013 Resolution. “Record Date” means, with respect to the Series 2014 Bonds, the 15th day (whether or not a business day) of the calendar month next preceding an Interest Payment Date. “Refunded Bonds” means, with respect to this Series 2014 Resolution, the Series 2004 Bonds maturing October 1, 2034 and October 1, 2039. “Series 2004 Bonds” means the Consolidated Government’s Water and Sewerage Revenue Bonds, Series 2004, issued in the original aggregate principal amount of $160,000,000 pursuant to the terms of the Prior Lien Resolution. Attachment number 1 \nPage 7 of 33 Item # 5 -7- ATLANTA 5572182.2 “Series 2013 Bonds” means the Consolidated Government’s Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013, issued in the original aggregate principal amount of $22,070,000 pursuant to the terms of the Prior Resolution. “Series 2013 Resolution” means the Parity Bond Resolution adopted on June 18, 2013, as supplemented and amended by a Supplemental Bond Resolution adopted on July 16, 2013, authorizing the issuance and delivery of the Series 2013 Bonds. “Series 2014 Bonds” means the Consolidated Government’s Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2014, in the original aggregate principal amount not to exceed $198,000,000, authorized under Section 2.1. “Series 2014 Capital Improvement Account” means the Series 2014 Capital Improvement Account within the Construction Fund established in Article IV. “Series 2014 Disclosure Certificate” means the continuing disclosure certificate executed in connection with the issuance of the Series 2014 Bonds. “Series 2014 Project” means the Project as (1) generally described in the report dated July 2014, as amended, prepared by the Consolidated Government’s consulting engineers, ZEL Engineers, Augusta, Georgia, and (2) particularly described in plans and specifications on file from time to time with the Consolidated Government. “Series 2014 Paying Agent and Bond Registrar Agreement” means the Paying Agent and Bond Registrar Agreement, to be dated the date of its execution and delivery, between the Consolidated Government and U.S. Bank National Association, relating to the Series 2014 Bonds, as amended, modified, or replaced. “Series 2014 Resolution” means this Series 2014 Bond Resolution. “2004 Defeasance Account” means the 2004 Defeasance Account established in Section 4.5. “2004 Paying Agent” means U.S. Bank National Association, as successor paying agent for the Series 2004 Bonds pursuant to the Prior Lien Resolution. (b) The definition of “Pledged Revenues” as set forth in Section 1.1 of the Master Resolution is hereby deleted in its entirety and the following is substituted in lieu thereof: “Pledged Revenues” means Operating Revenues, after provision for payment of all Expenses of Operations and Maintenance, Investment Earnings, and all moneys paid or required to be paid into, and all moneys and securities on deposit from time to time in, the funds and accounts specified in Section 4.2; provided that on and after the date the Prior Lien Bonds are no longer outstanding under the Prior Lien Resolution, Pledged Revenues shall also include Hedge Receipts and exclude any amounts required in the Bond Resolution to be set aside pending, or used for, rebate to the United States government pursuant to Section 148(f) of the Code, including, but not limited to, amounts in the Rebate Fund. Attachment number 1 \nPage 8 of 33 Item # 5 -8- ATLANTA 5572182.2 [End of Article I] Attachment number 1 \nPage 9 of 33 Item # 5 -9- ATLANTA 5572182.2 ARTICLE II THE SERIES 2014 BONDS Section 2.1. Authorization; Designation of Series 2014 Bonds. The Consolidated Government hereby authorizes the execution, issuance, and delivery of a series of Bonds, in the original aggregate principal amount not to exceed $198,000,000, to be designated “Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2014,” which shall be executed, issued, and delivered under, and secured by, the Prior Resolution, as supplemented and amended by this Series 2014 Resolution. Section 2.2. Parity Certification. The Series 2014 Bonds shall be Additional Bonds payable from and secured by Pledged Revenues and shall rank on a parity as to the pledge of and lien on the Pledged Revenues with the Prior Bonds, pursuant to authorization granted by Article VI of the Master Resolution. The Consolidated Government hereby finds, determines, declares, and certifies that it has fulfilled, or will fulfill, prior to the issuance and delivery of the Series 2014 Bonds, all of the applicable requirements of Article VI of the Master Resolution that are conditions precedent to the issuance of the Series 2014 Bonds as Additional Bonds, namely: (a) There will be procured and filed with the Consolidated Government either: (i) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for a period of 12 consecutive months of the most recent 24 consecutive months prior to the issuance of the proposed Additional Bonds were equal to at least 125% of the maximum annual Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, in the then current or any succeeding Fiscal Year, or (ii) (1) a report by an Independent Certified Public Accountant to the effect that the historical Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for a period of 12 consecutive months of the most recent 24 consecutive months prior to the issuance of the proposed Additional Bonds were equal to at least 125% of the historical Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that were Outstanding during such 12 month period, and (2) a report by an Independent Consulting Engineer to the effect that (A) the forecasted Net Operating Revenues and Investment Earnings (excluding Investment Earnings, if any, on the Construction Fund) for the period beginning on the expected date of issuance of the proposed Additional Bonds and ending on the date of commencement of the Forecast Period are expected to equal at least 100% of the Debt Service Requirement during such period on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, after taking into account amounts deposited into the Capitalized Interest Account, and (B) the forecasted Net Operating Revenues and Investment Earnings (excluding Investment Attachment number 1 \nPage 10 of 33 Item # 5 -10- ATLANTA 5572182.2 Earnings, if any, on the Construction Fund) for each Fiscal Year in the Forecast Period are expected to equal at least 125% of the maximum annual Debt Service Requirement on all Prior Lien Bonds and Senior Bonds that will be Outstanding immediately after the issuance of the proposed Additional Bonds, in the then current or any succeeding Fiscal Year. (b) The Consolidated Government will receive a report from an Independent Certified Public Accountant to the effect that the payments required to be made into each account of the Sinking Fund have been made and the balance in each account of the Sinking Fund is not less than the balance required by the Bond Resolution as of the date of issuance of the Series 2014 Bonds. (c) This Series 2014 Resolution requires the proceeds of the Series 2014 Bonds to be used to make capital improvements to the System, to fund interest on the Series 2014 Bonds, to acquire existing or proposed water or sewer utilities, to refund other obligations issued for such purposes (whether or not such refunding Bonds satisfy the requirements of Section 6.2 of the Master Resolution), to fund debt service reserve funds for Bonds, and to pay expenses incidental thereto and to the issuance of the Series 2014 Bonds. (d) The Administrator of the Consolidated Government and the Director of the Utilities Department of the Consolidated Government will certify, by written certificate dated as of the date of issuance of the Series 2014 Bonds, that the Consolidated Government is in compliance with all requirements of the Bond Resolution. (e) The Consolidated Government will receive an opinion of Bond Counsel, dated as of the date of issuance of the Series 2014 Bonds, to the effect that this Series 2014 Resolution and any related Supplemental Resolution have been duly adopted by the Consolidated Government. The Consolidated Government hereby certifies and recites that the requirements of Article VI of the Master Resolution for the issuance of the Series 2014 Bonds as Additional Bonds have been, or will, prior to the issuance and delivery of the Series 2014 Bonds, be, satisfied, and the Series 2014 Bonds shall be treated as Additional Bonds secured under and pursuant to the Bond Resolution equally and ratably with the Prior Bonds. Section 2.3. Series 2014 Bond Details. The Series 2014 Bonds shall be dated the date of issuance and delivery thereof. The Series 2014 Bonds shall be numbered in a convenient manner, established by the Bond Registrar and shown by the Bond Register. The Series 2014 Bonds shall bear interest at the rates per annum to be specified in a Supplemental Resolution to be adopted by the Governing Body (but which shall not in any event exceed a maximum per annum rate of interest of 6.00%), computed on the basis of a 360-day year consisting of twelve 30-day months, payable on April 1, 2015, and semiannually thereafter on each October 1 and April 1 of each year and shall mature on October 1, in the years (with a final maturity not later than October 1, 2039) and in the principal amounts to be specified in a Supplemental Resolution to be adopted by the Governing Body (provided the principal of and interest on the Series 2014 Bonds payable in any Fiscal Year shall not in any event exceed a maximum amount of $30,000,000), unless earlier called for redemption. Attachment number 1 \nPage 11 of 33 Item # 5 -11- ATLANTA 5572182.2 The Series 2014 Bonds that mature on October 1 of the years to be specified in a Supplemental Resolution to be adopted by the Governing Body may be Term Bonds. Section 2.4. Form of Series 2014 Bonds. The Series 2014 Bonds, the Validation Certificate, and the Bond Registrar’s Certificate of Authentication shall be in substantially the form set out below, with such variations, omissions, substitutions, and insertions as are required or permitted by the Bond Resolution. Attachment number 1 \nPage 12 of 33 Item # 5 -12- ATLANTA 5572182.2 [FORM OF SERIES 2014 BOND] Unless this Bond is presented by an authorized representative of The Depository Trust Company (“DTC”), a New York corporation, to the Consolidated Government or its agent for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF GEORGIA AUGUSTA, GEORGIA WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BOND (SECOND RESOLUTION), SERIES 2014 Number R- ___ $_______________ Maturity Date Interest Rate Dated CUSIP October 1, 20__ ________, 2014 Registered Owner: Cede & Co. Principal Amount: KNOW ALL MEN BY THESE PRESENTS that AUGUSTA, GEORGIA (the “Consolidated Government”), a political subdivision of the State of Georgia, existing as such under and by virtue of the Constitution, statutes and laws of the State of Georgia, for value received, hereby promises to pay (but only out of the sources provided) to the registered owner identified above, or registered assigns, on the Maturity Date stated above, unless this Bond shall have been called for redemption prior to maturity and payment of the redemption price shall have been duly made or provided for, the principal amount identified above and to pay (but only out of the sources provided) interest on the balance of such principal sum from time to time remaining unpaid from and including the date hereof or from and including the most recent Interest Payment Date (as hereinafter defined) with respect to which interest has been paid or duly provided for, until payment of such principal sum has been made, at the interest rate per annum shown above (computed on the basis of a 360-day year consisting of twelve 30-day months) on April 1 and October 1 of each year (each an “Interest Payment Date”) commencing April 1, 2015, until the payment of the principal amount of this Bond in full, and promises to pay Attachment number 1 \nPage 13 of 33 Item # 5 -13- ATLANTA 5572182.2 interest on overdue principal and, to the extent permitted by law, on overdue premium, if any, and interest, at such rate. Principal of and redemption premium, if any, on this Bond are payable when due in lawful money of the United States of America upon presentation and surrender of this Bond at the designated corporate trust office of U.S. Bank National Association, Atlanta, Georgia, as registrar and paying agent (the “Bond Registrar” or the “Paying Agent”). Payment of interest on this Bond shall be made to the registered owner and shall be paid in lawful money of the United States of America by check or draft mailed on the applicable Interest Payment Date to such registered owner as of the close of business on the 15th day of the calendar month (the “Record Date”) immediately preceding such Interest Payment Date at its address as it appears on the registration books (the “Bond Register”) of the Consolidated Government maintained by the Bond Registrar, or at such other address as is furnished in writing by such registered owner to the Bond Registrar. Notwithstanding the foregoing, however, interest on this Bond shall be payable to any registered owner of more than $1,000,000 in aggregate principal amount of the Bonds of the same series as this Bond (including this Bond) by deposit of immediately available funds to the account of such registered owner maintained with the Paying Agent or transmitted by wire transfer to such registered owner at an account maintained at a commercial bank located within the United States of America, if the Paying Agent receives from such registered owner written deposit or wire transfer instructions prior to the Record Date preceding the Interest Payment Date for which the deposit or wire transfer is requested. This Bond is one of a series of $__________ in original aggregate principal amount of revenue bonds designated “Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2014” (the “Series 2014 Bonds”), issued by the Consolidated Government pursuant to and in full compliance with the provisions of the Constitution and statutes of the State of Georgia, including specifically, but without limitation, Article 3 of Chapter 82 of Title 36 of the Official Code of Georgia Annotated, known as the “Revenue Bond Law,” as amended. The Series 2014 Bonds have been authorized by a Series 2014 Bond Resolution duly adopted by the Consolidated Government on August 5, 2014, as supplemented and amended by a Supplemental Series 2014 Bond Resolution duly adopted by the Consolidated Government on __________, 2014 (collectively the “Series 2014 Resolution”), for the purpose of (i) refunding $160,000,000 in aggregate principal amount of the Consolidated Government’s Water and Sewerage Revenue Bonds, Series 2004, maturing on October 1, 2034 and October 1, 2039 (the “Refunded Bonds”), (ii) financing the costs of making additions, extensions, and improvements to the Consolidated Government’s existing water and sewer system (the “System”), (iii) funding a debt service reserve account for the Series 2014 Bonds, and (iv) paying the expenses necessary to accomplishing the foregoing. The Series 2014 Bonds are issued under, and the Series 2014 Resolution was adopted subject to and in conformity with, the provisions of a Master Bond Resolution (the “Master Resolution”) duly adopted by the Consolidated Government on October 16, 2012, as supplemented and amended by a Parity Bond Resolution adopted on June 18, 2013 and a Supplemental Bond Resolution adopted on July 16, 2013 (collectively the “Series 2013 Resolution”), authorizing the issuance of $138,830,000 in original aggregate principal amount of Attachment number 1 \nPage 14 of 33 Item # 5 -14- ATLANTA 5572182.2 the Consolidated Government’s Water and Sewerage Revenue Refunding and Improvement Bonds (Second Resolution), Series 2012 (the “Series 2012 Bonds”), all of which are currently outstanding, and authorizing the issuance of $22,070,000 in original aggregate principal amount of the Consolidated Government’s Water and Sewerage Taxable Revenue Bonds (Second Resolution), Series 2013 (the “Series 2013 Bonds”), all of which are currently outstanding. Under the terms of the Master Resolution, the Series 2012 Bonds and the Series 2013 Bonds (collectively the “Prior Bonds”) are payable solely from and secured by a second priority pledge of and lien on the Pledged Revenues (as hereinafter defined). The Master Resolution provides for the issuance under certain conditions of Additional Bonds (as defined in the Master Resolution) payable from and secured by Pledged Revenues and ranking on a parity as to the pledge of and lien on the Pledged Revenues with the Prior Bonds. The Series 2014 Bonds have been issued under the provisions of the Master Resolution authorizing the issuance of Additional Bonds and, as Additional Bonds, will be payable from and secured by Pledged Revenues and will rank on a parity as to the pledge of and lien on the Pledged Revenues with the Prior Bonds. The Series 2014 Bonds are all issued under and, together with the Prior Bonds, are equally and ratably secured by and entitled to the benefit of the Master Resolution, as supplemented and amended by the Series 2013 Resolution and the Series 2014 Resolution (collectively the “Bond Resolution”). The Series 2014 Bonds are issued, and the Bond Resolution authorizing the issuance of the Series 2014 Bonds and the Prior Bonds was adopted, subject to and in conformity with the provisions of that certain resolution adopted by the Consolidated Government on October 21, 1996, as supplemented and amended (as more specifically defined in the Bond Resolution, the “Prior Lien Resolution”). The Consolidated Government has heretofore issued and delivered pursuant to the Prior Lien Resolution its Water and Sewerage Revenue Bonds, Series 2004 and its Water and Sewerage Revenue Refunding Bonds, Series 2007, now outstanding in the aggregate principal amount of $319,600,000 (hereinafter sometimes referred to collectively as the “Prior Lien Bonds”), and the Prior Lien Bonds are payable solely from, and secured by, a first priority pledge of and lien on Pledged Revenues. Notwithstanding anything in the Prior Lien Resolution to the contrary, the Consolidated Government has agreed that it will not issue any additional bonds or obligations of any kind payable from a lien on net revenues of the System ranking as to such lien on net revenues of the System created by the Prior Lien Resolution on a parity with the Prior Lien Bonds. So long as any Prior Lien Bonds are outstanding pursuant to the Prior Lien Resolution, the pledge of and lien on Pledged Revenues to the payment of principal of, premium, if any, and interest on the Prior Bonds, the Series 2014 Bonds, and such revenue bonds of the Consolidated Government as may in the future be issued on a parity therewith will be subject and subordinate to the pledge of and lien on “Pledged Revenues” (as defined in the Prior Lien Resolution) to the payment of principal of, premium, if any, and interest on the Prior Lien Bonds. The Series 2014 Bonds maturing on or before October 1, 20__, may not be called for optional redemption prior to maturity. The Series 2014 Bonds maturing on or after October 1, 20__, are subject to redemption prior to maturity at the option of the Consolidated Government on or after October 1, 20__, in whole or in part at any time, at the redemption price equal to the principal amount of the Series 20__ Bonds to be redeemed plus accrued interest on such redemption date. Attachment number 1 \nPage 15 of 33 Item # 5 -15- ATLANTA 5572182.2 The Series 2014 Bonds maturing on October 1, 20__, are subject to mandatory sinking fund redemption on October 1, 20__ and on each October 1 thereafter, in accordance with the Bond Resolution, at a redemption price equal to the principal amount of each Series 2014 Bond (or portion thereof) to be redeemed plus accrued interest to the date fixed for redemption, in the following principal amounts and on the dates set forth below (the October 1, 20__ amount to be paid rather than redeemed): October 1 of the Year Principal Amount Notice of redemption, unless waived, is to be given by first class mail at least 30 days and not more than 60 days prior to the date fixed for redemption to the registered owner of each Series 2014 Bond to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All such Series 2014 Bonds called for redemption and for the retirement of which funds are duly provided shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption of such Series 2014 Bonds on such date, and interest on the Series 2014 Bonds or portions of Series 2014 Bonds so called for redemption shall cease to accrue, such Series 2014 Bonds or portions of Series 2014 Bonds shall cease to be entitled to any lien, benefit, or security under the Bond Resolution, and the owners of such Series 2014 Bonds or portions of Series 2014 Bonds shall have no rights in respect thereof except to receive payment of the redemption price. Any defect in any notice of redemption shall not affect the validity of proceedings for the redemption of any Series 2014 Bonds. The Consolidated Government has established a book-entry system of registration for the Series 2014 Bonds. Except as specifically provided otherwise in the Bond Resolution, an agent will hold this Bond on behalf of the beneficial owner hereof. By acceptance of a confirmation of purchase, delivery, or transfer, the beneficial owner of this Bond shall be deemed to have agreed to such arrangement. While the Series 2014 Bonds are in the book-entry system of registration, the Bond Resolution provides special provisions relating to the Series 2014 Bonds, which override certain other provisions of the Bond Resolution. This Bond is transferable by the registered owner at the principal corporate trust office of the Bond Registrar but only in the manner, subject to the limitations, and upon payment of the charges provided in the Bond Resolution and upon surrender of this Bond. Upon such transfer, a new registered Bond or Bonds of the same series, maturity, interest rate, aggregate principal amount, and tenor, of any authorized denomination or denominations, and bearing numbers not then outstanding, will be issued to the transferee in exchange for this Bond. The Series 2014 Bonds are issuable as fully registered Bonds in the denomination of $5,000 or any integral multiple thereof. The Bond Registrar is not required to transfer or exchange any Series 2014 Bond after notice calling such Series 2014 Bond for redemption has been given or during the period of 15 days (whether or not a business day for the Bond Registrar, but excluding the redemption date and including such 15th day) immediately preceding the giving of such notice of redemption. Attachment number 1 \nPage 16 of 33 Item # 5 -16- ATLANTA 5572182.2 The Prior Bonds, Series 2014 Bonds, and such revenue bonds of the Consolidated Government as may in the future be issued on a parity therewith, are equally and ratably secured by pledge of the “Pledged Revenues” of the System, which are defined in the Bond Resolution to include gross operating revenues of the System after provision for payment of all reasonable expenses of operation and maintenance, moneys and securities from time to time on deposit in the funds and accounts established in the Bond Resolution, and earnings on investments made with the foregoing moneys and securities; and on and after the date that the Prior Lien Bonds are no longer outstanding under the Prior Lien Resolution, “Pledged Revenues” will include Hedge Receipts (as defined in the Bond Resolution) and exclude any amounts required in the Bond Resolution to be set aside pending, or used for, rebate to the United States government pursuant to Section 148(f) of the Internal Revenue Code of 1986, as amended, including, but not limited to, amounts in the Rebate Fund (as defined in the Bond Resolution). THIS BOND SHALL NEVER CONSTITUTE AN INDEBTEDNESS OR GENERAL OBLIGATION OF THE STATE OF GEORGIA, THE CONSOLIDATED GOVERNMENT, OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF GEORGIA, WITHIN THE MEANING OF ANY CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION WHATSOEVER, NOR A PLEDGE OF THE FAITH AND CREDIT OR TAXING POWER OF ANY OF THE FOREGOING, NOR SHALL ANY OF THE FOREGOING BE SUBJECT TO ANY PECUNIARY LIABILITY HEREON. THIS BOND SHALL NOT BE PAYABLE FROM NOR A CHARGE UPON ANY FUNDS OTHER THAN THE REVENUES PLEDGED TO THE PAYMENT HEREOF AND SHALL BE A LIMITED OR SPECIAL OBLIGATION OF THE CONSOLIDATED GOVERNMENT PAYABLE SOLELY FROM THE FUNDS PROVIDED THEREFOR IN THE BOND RESOLUTION. NO OWNER OF THIS BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE TAXING POWER OF THE STATE OF GEORGIA, THE CONSOLIDATED GOVERNMENT, OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE OF GEORGIA TO PAY THE PRINCIPAL OF THIS BOND OR THE INTEREST OR ANY PREMIUM HEREON, OR TO ENFORCE PAYMENT HEREOF AGAINST ANY PROPERTY OF THE FOREGOING, NOR SHALL THIS BOND CONSTITUTE A CHARGE, LIEN, OR ENCUMBRANCE, LEGAL OR EQUITABLE, UPON ANY PROPERTY OF THE FOREGOING. NEITHER THE MEMBERS OF THE GOVERNING BODY OF THE CONSOLIDATED GOVERNMENT NOR ANY PERSON EXECUTING THIS BOND SHALL BE LIABLE PERSONALLY ON THIS BOND BY REASON OF THE ISSUANCE HEREOF. The Consolidated Government has covenanted and hereby covenants and agrees while any Series 2014 Bonds are outstanding and unpaid to prescribe, fix, maintain, and collect rates, fees, and other charges for the services, facilities, and commodities furnished by the System fully sufficient at all times to: (i) provide for 100% of the expenses of operation and maintenance of the System and for the accumulation in the Revenue Fund (as defined in the Bond Resolution) of a reasonable reserve therefor, and (ii) produce net operating revenues in each Fiscal Year (as defined in the Bond Resolution) that, together with certain investment earnings, will: (a) equal at least 110% of the debt service requirement on all Prior Lien Bonds and Senior Bonds (as defined in the Bond Resolution) then outstanding and 100% of the debt service requirement on all Subordinate Bonds (as defined in the Bond Resolution) then outstanding, (b) enable the Consolidated Government to make all required payments into the debt service reserve account under the Prior Lien Resolution, the Debt Service Reserve Account and the Rebate Fund and to Attachment number 1 \nPage 17 of 33 Item # 5 -17- ATLANTA 5572182.2 any Financial Facility Issuer, any Reserve Account Credit Facility Provider, and any Qualified Hedge Provider (as each is defined in the Bond Resolution), (c) enable the Consolidated Government to accumulate an amount to be held in the Utility General Fund (as defined in the Bond Resolution), which in the judgment of the Consolidated Government is adequate to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System, necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction over the System, and (d) remedy all deficiencies in required payments into any of the funds and accounts mentioned in the Bond Resolution from prior Fiscal Years. The Bond Resolution contains a more particular statement of the covenants and provisions securing the Series 2014 Bonds, the conditions under which the owner of this Bond may enforce covenants (other than the covenant to pay principal of and interest on this Bond when due from the sources provided, the right to enforce which is unconditional), the conditions upon which additional revenue bonds may be issued on a parity or achieve parity status with this Bond under the Bond Resolution, and the conditions upon which the Bond Resolution may be amended with the consent of the owners of a majority in aggregate principal amount of the Bonds (as defined in the Bond Resolution) of each class (senior and subordinate) outstanding or the issuer of any Credit Facility (as defined in the Bond Resolution), if any, of such Bonds. Upon the occurrence of an Event of Default under the Bond Resolution, the owner of this Bond shall be entitled to the remedies provided by the Bond Resolution and the Revenue Bond Law. It is hereby certified, recited, and declared that all acts, conditions, and things required to exist, happen, and be performed precedent to and in the issuance of this Bond do exist, have happened, and have been performed in due time, form, and manner as required by law. This Bond shall not be entitled to any security or benefit under the Bond Resolution or become valid or obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. Attachment number 1 \nPage 18 of 33 Item # 5 -18- ATLANTA 5572182.2 IN WITNESS WHEREOF, the Consolidated Government has caused this Bond to be executed by the manual signature of its Mayor and has caused the official seal of the Consolidated Government to be impressed on this Bond and attested by the manual signature of its Clerk. (SEAL) AUGUSTA, GEORGIA By: Mayor Attest: Clerk Attachment number 1 \nPage 19 of 33 Item # 5 -19- ATLANTA 5572182.2 [FORM OF CERTIFICATE OF AUTHENTICATION] BOND REGISTRAR’S CERTIFICATE OF AUTHENTICATION This Bond is one of the bonds of the series described in the within mentioned Resolution. U.S. BANK NATIONAL ASSOCIATION, as Bond Registrar By: Authorized Signatory Date of Registration and Authentication: _____________________, ______ [FORM OF VALIDATION CERTIFICATE] VALIDATION CERTIFICATE STATE OF GEORGIA ) ) COUNTY OF RICHMOND ) The undersigned Clerk of the Superior Court of Richmond County, State of Georgia, DOES HEREBY CERTIFY that this Bond and the security therefor was validated and confirmed by judgment of the Superior Court of Richmond County, on the ____ day of __________ 2014, that no intervention or objection was filed opposing the validation of this Bond and the security therefor, and that no appeal of such judgment of validation has been taken. IN WITNESS WHEREOF, I have hereunto set my hand and have impressed hereon the official seal of the Superior Court of Richmond County, Georgia. (SEAL) Clerk, Superior Court of Richmond County, Georgia Attachment number 1 \nPage 20 of 33 Item # 5 -20- ATLANTA 5572182.2 The following abbreviations, when used in the inscription on this Bond or in the assignment below, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common and not as community property UNIF TRANS MIN ACT - ______________________ Custodian ______________________ (Custodian) (Minor) under Uniform Transfers to Minors Act _____________________ (State) Additional abbreviations may be used although not in the above list. [FORM OF ASSIGNMENT] ASSIGNMENT AND TRANSFER FOR VALUE RECEIVED, the undersigned sells, assigns, and transfers unto (Name and Address of Assignee) (Insert Social Security or Taxpayer Identification Number of Assignee) the within revenue bond of Augusta, Georgia and does hereby irrevocably constitute and appoint ______________________________ attorney to transfer the Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: (Signature Guaranteed) Notice: Signature(s) must be guaranteed by an eligible guarantor institution (such as banks, stockbrokers, savings and loan associations, and credit unions) with membership in an approved Signature Guarantee Medallion Program pursuant to S.E.C. Rule 17Ad-15. Registered Owner Notice: The signature(s) on this assignment must correspond with the name as it appears on the face of the within bond in every particular without alteration or enlargement or any change whatsoever. [END OF BOND FORM] Attachment number 1 \nPage 21 of 33 Item # 5 -21- ATLANTA 5572182.2 Section 2.5. Global Form; Securities Depository; Ownership of Series 2014 Bonds. (a) Upon the initial issuance, the ownership of each Series 2014 Bond shall be registered in the name of the Securities Depository or the Securities Depository Nominee, and ownership thereof shall be maintained in Book-Entry Form by the Securities Depository for the account of the Participants thereof. Initially, each maturity of the Series 2014 Bonds shall be registered in the name of Cede & Co., as the nominee of DTC. Beneficial Owners will not receive Series 2014 Bonds from the Paying Agent evidencing their ownership interests. Except as provided in subsection (c) of this Section 2.5, the Series 2014 Bonds may be transferred, in whole but not in part, only to the Securities Depository or the Securities Depository Nominee, or to a successor Securities Depository selected or approved by the Consolidated Government or to a nominee of such successor Securities Depository. (b) With respect to Series 2014 Bonds registered in the name of the Securities Depository or the Securities Depository Nominee, the Consolidated Government, the Paying Agent and the Bond Registrar shall have no responsibility or obligation to any Participant or Beneficial Owner. Without limiting the foregoing, the Consolidated Government, the Paying Agent, the Bond Registrar and their respective affiliates shall not have any responsibility or obligation with respect to: (i) the accuracy of the records of the Securities Depository, the Securities Depository Nominee or any Participant with respect to any beneficial ownership interest in the Series 2014 Bonds; (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than the Securities Depository or the Securities Depository Nominee, of any notice with respect to the Series 2014 Bonds; or (iii) the payment to any Participant, any Beneficial Owner or any other person, other than the Securities Depository or the Securities Depository Nominee, of any amount with respect to the principal, premium, if any, or interest on the Series 2014 Bonds. So long as any Series 2014 Bonds are registered in Book-Entry Form, the Consolidated Government and the Paying Agent may treat the Securities Depository as, and deem the Securities Depository to be, the absolute owner of such Series 2014 Bonds for all purposes whatsoever, including without limitation: (i) the payment of principal, premium, if any, and interest on such series of Series 2014 Bonds; (ii) giving notices of redemption and other matters with respect to such Series 2014 Bonds; (iii) registering transfers with respect to such Series 2014 Bonds; (iv) the selection of Series 2014 Bonds for redemption; and Attachment number 1 \nPage 22 of 33 Item # 5 -22- ATLANTA 5572182.2 (v) voting and obtaining consents under the Bond Resolution. So long as any Series 2014 Bonds are registered in Book-Entry Form, the Paying Agent shall pay all principal, premium, if any, and interest on the Series 2014 Bonds only to the Securities Depository or the Securities Depository Nominee as shown in the Bond Register, and all such payments shall be valid and effective to fully discharge the Consolidated Government’s obligations with respect to payment of principal of, premium, if any, and interest on the Series 2014 Bonds to the extent so paid. (c) If at any time (i) the Consolidated Government determines that the Securities Depository is incapable of discharging its responsibilities described herein, (ii) the Securities Depository notifies the Consolidated Government that it is unwilling or unable to continue as Securities Depository with respect to the Series 2014 Bonds, or (iii) the Securities Depository shall no longer be registered or in good standing under the Securities Exchange Act of 1934 or other applicable statute or regulation and a successor Securities Depository is not appointed by the Consolidated Government within 90 days after the Consolidated Government receives notice or becomes aware of such condition, as the case may be, then this Section 2.5 shall no longer be applicable and the Consolidated Government shall execute and the Bond Registrar shall authenticate and deliver bonds representing the Series 2014 Bonds to the owners of the Series 2014 Bonds. Series 2014 Bonds issued pursuant to this paragraph (c) shall be registered in such names and Authorized Denominations as the Securities Depository, pursuant to instructions from the Participant or otherwise, shall instruct the Bond Registrar. Upon exchange, the Bond Registrar shall deliver such certificates representing the Series 2014 Bonds to the persons in whose names such Series 2014 Bonds are so registered on the business day immediately preceding the date of such exchange. [End of Article II] Attachment number 1 \nPage 23 of 33 Item # 5 -23- ATLANTA 5572182.2 ARTICLE III REDEMPTION OF SERIES 2014 BONDS Section 3.1. Optional and Mandatory Redemption of Series 2014 Bonds. The Series 2014 Bonds will be subject to optional and mandatory redemption prior to maturity as specified in a Supplemental Resolution to be adopted by the Governing Body. [End of Article III] Attachment number 1 \nPage 24 of 33 Item # 5 -24- ATLANTA 5572182.2 ARTICLE IV CONSTRUCTION FUND; CUSTODY AND APPLICATION OF PROCEEDS; REFUNDING PROGRAM Section 4.1. Series 2014 Project Account. The Consolidated Government hereby establishes a separate special account for the Construction Fund designated as the “Series 2014 Capital Improvement Account.” Proceeds from the sale of the Series 2014 Bonds shall be deposited in the Series 2014 Capital Improvement Account pursuant to Section 4.2 of this Series 2014 Resolution. The amount deposited in the Series 2014 Capital Improvement Account, together with earnings thereon, shall be held and paid out in accordance with Article IV of the Master Resolution, invested in accordance with the provisions of the Bond Resolution, and applied only to payment of Costs of the Series 2014 Project. Section 4.2. Application of Proceeds of Series 2014 Bonds. Upon the written request of the Consolidated Government, the Bond Registrar shall authenticate and deliver the Series 2014 Bonds to the purchaser or purchasers and shall receive a receipt for the Series 2014 Bonds. The Consolidated Government shall apply the proceeds from the sale of the Series 2014 Bonds as follows: (i) A sufficient sum, together with sinking fund accruals allocable to the Refunded Bonds and other lawfully available funds, such amounts to be specified in a Supplemental Resolution to be adopted by the Governing Body, shall be deposited into the 2004 Defeasance Account, to pay, upon redemption prior to maturity, all outstanding Refunded Bonds as provided in Section 4.5; (ii) An amount to be specified in a Supplemental Resolution to be adopted by the Governing Body needed to fund the Debt Service Reserve Requirement under the Bond Resolution relating to the Series 2014 Bonds shall be deposited in the Debt Service Reserve Account held within the Sinking Fund; and (iii) The balance of the proceeds from the sale of the Series 2014 Bonds shall be deposited into the Series 2014 Capital Improvement Account of the Construction Fund. Notwithstanding the foregoing, if the Mayor shall determine that a different application of funds is required to carry out the intent of this Series 2014 Resolution, the Mayor may provide for such different application of funds in the authentication order to be delivered at the time of issuance of the Series 2014 Bonds. Section 4.3. Redemption of Refunded Bonds. The Refunded Bonds be and the same are hereby called for redemption on October 2, 2014, but only if funds for their redemption are on deposit at the place of redemption on October 2, 2014, at a redemption price of 100.0% of the principal amount outstanding thereof plus accrued interest to the date of redemption. The owners of the Refunded Bonds should present the same for payment on October 2, 2014; provided, however, the Refunded Bonds shall be deemed not to have been called for redemption Attachment number 1 \nPage 25 of 33 Item # 5 -25- ATLANTA 5572182.2 on October 2, 2014 if funds for the redemption of all of the Refunded Bonds called for redemption are not on deposit at the place of payment on October 2, 2014. Section 4.4. Direction to Paying Agent for the Refunded Bonds. The Consolidated Government hereby authorizes and directs the 2004 Paying Agent to mail the notice of redemption of the Refunded Bonds not later than September 1, 2014 to the registered owners of the Refunded Bonds to be redeemed at the addresses that appear on the bond registration book kept by the bond registrar for the Refunded Bonds, which notice shall be in substantially the form attached hereto as Exhibit A. Section 4.5. Creation of 2004 Defeasance Account. Simultaneously with the issuance and delivery of the Series 2014 Bonds herein authorized to be issued, a sufficient sum derived from the sale of the Series 2014 Bonds, together with sinking fund accruals allocable to the Refunded Bonds and other lawfully available funds, shall be deposited in trust with the 2004 Paying Agent in a special segregated account hereby created and designated the “2004 Defeasance Account,” to pay the principal of and interest on the Refunded Bonds on October 2, 2014. The moneys so deposited with the 2004 Paying Agent and all income derived from such moneys shall be subject to a lien and charge in favor of the owners of, and are hereby pledged to the payment of, the Refunded Bonds, shall not be commingled with other moneys on deposit with the 2004 Paying Agent, and shall be held in trust for the security of the owners of the Refunded Bonds until used and applied as hereinafter provided. The moneys to be so deposited in trust in the 2004 Defeasance Account have been calculated as being sufficient and shall be used to redeem all of the Refunded Bonds by making the following payment on October 2, 2014: Date Principal Interest Total 10/2/2014 $160,000,000 $23,333.33 $160,023,333.33 Any moneys remaining in the 2004 Defeasance Account following the redemption of the Refunded Bonds on October 2, 2014, shall be deposited to the Debt Service Account. Section 4.6. Termination of Rights. The Consolidated Government acknowledges and intends that, by virtue of the deposits into the 2004 Defeasance Account, the Refunded Bonds shall be deemed to have been paid and that, consequently, the rights granted to the owners of the Refunded Bonds under the Prior Lien Resolution (except for purposes of payment, registration, exchange, and transfer), shall cease, determine, and become void. [End of Article IV] Attachment number 1 \nPage 26 of 33 Item # 5 -26- ATLANTA 5572182.2 ARTICLE V GENERAL PROVISIONS Section 5.1. Continuing Disclosure for Series 2014 Bonds. The Consolidated Government hereby covenants and agrees that it shall comply with and carry out all of the provisions of the Continuing Disclosure Certificate executed by the Consolidated Government and to be dated as of the date of the issuance and delivery of the Series 2014 Bonds, as originally executed and as it may be amended from time to time in accordance with its terms (the “Series 2014 Disclosure Certificate”). Notwithstanding any other provision of the Bond Resolution, failure of the Consolidated Government to comply with the Series 2014 Disclosure Certificate shall not be considered a default or an Event of Default under the Bond Resolution. It is expressly provided, however, that any beneficial owner of the Series 2014 Bonds may take such action, to the extent and in such manner as may be allowed by applicable law, as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Consolidated Government to comply with its obligations under this Section 5.1. [End of Article V] Attachment number 1 \nPage 27 of 33 Item # 5 -27- ATLANTA 5572182.2 ARTICLE VI MISCELLANEOUS PROVISIONS Section 6.1. Continuance and Effect of Bond Resolution. The Consolidated Government hereby confirms the existence and applicability of the Bond Resolution and ratifies, restates, and reaffirms its representations, warranties, covenants, and agreements and all of the applicable terms, conditions, and provisions as set forth in the Bond Resolution and as supplemented and amended by this Series 2014 Resolution. Except where otherwise expressly indicated in this Series 2014 Resolution, the provisions of the Bond Resolution are to be read as part of this Series 2014 Resolution as though copied verbatim herein, and provisions of this Series 2014 Resolution shall be read as additions to, and not as substitutes for or modifications of (except as otherwise specifically provided herein), the provisions of the Bond Resolution. Except as expressly amended, modified, or supplemented by this Series 2014 Resolution, all of the terms, conditions, and provisions of the Bond Resolution shall remain in full force and effect. In executing and delivering this Series 2014 Resolution, the Consolidated Government shall be entitled to all powers, privileges, and immunities afforded to the Consolidated Government and shall be subject to all the duties, responsibilities, and obligations of the Consolidated Government under the Bond Resolution. Except as expressly amended, modified, or supplemented by this Series 2014 Resolution, all of the terms, conditions, and provisions of the Bond Resolution are hereby declared applicable to and broadened and extended so as to cover the Series 2014 Bonds and shall for all purposes apply to the Series 2014 Bonds as if the Series 2014 Bonds had been originally issued under the Consolidated Government of the Bond Resolution simultaneously with the Prior Bonds. Section 6.2. Designation of Bond Registrar and Paying Agent for the Series 2014 Bonds. The Consolidated Government hereby designates U.S. Bank National Association, Atlanta, Georgia, as Bond Registrar and Paying Agent for the Series 2014 Bonds. Section 6.3. Validation of Series 2014 Bonds. The Consolidated Government shall deliver a certified copy of this Series 2014 Resolution with an appropriate notice signed by the Attesting Officer to the District Attorney for the Augusta Judicial Circuit accompanied by the request that the District Attorney proceed with the validation of the Series 2014 Bonds. Section 6.4. Preliminary Official Statement; Official Statement; and Deemed Final Certificate. The Series 2014 Bonds are hereby authorized to be sold pursuant to competitive sale and there is hereby authorized a Notice of Sale and a Preliminary Official Statement to be prepared and distributed to all securities dealers deemed to have an interest in purchasing all, but not a part, of the Series 2014 Bonds. Once the bids are received for the sale of the Series 2014 Bonds pursuant to the Notice of Sale, the Mayor is authorized to accept the bid with the lowest total interest cost and the Governing Body will adopt a Supplemental Resolution ratifying the acceptance of the winning bid for the Series 2014 Bonds and setting forth, among other things, the final interest rates on, maturities, redemption provisions, principal amount of the Series 2014 Bonds, which interest rates and principal amounts shall be within the parameters set forth in this Series 2014 Bond Resolution. Attachment number 1 \nPage 28 of 33 Item # 5 -28- ATLANTA 5572182.2 The Consolidated Government hereby authorizes the Mayor or the Mayor Pro Tem to deem the Preliminary Official Statement final, except for “Permitted Omissions,” as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange of 1934, as amended (the “Rule”). As used herein, “Permitted Omissions” shall mean the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings, the identity of the underwriter or bond insurer and other terms of the Series 2014 Bonds and any underlying obligations depending on such matters, all with respect to the Series 2014 Bonds and any underlying obligations. The execution and delivery of the “deemed final certificate” required by the Rule are hereby authorized and approved. The execution of the “deemed final certificate” by the Mayor or Mayor Pro Tem as hereby authorized shall be conclusive evidence of the approval of any changes to the Preliminary Official Statement. In addition, the Supplemental Resolution will provide for the preparation and distribution of a final Official Statement. Section 6.5. Authorization of Series 2014 Registrar and Paying Agent Agreement. The form, terms, and conditions and the execution, delivery, and performance of the Series 2014 Registrar and Paying Agent Agreement, which has been filed with the Consolidated Government, are hereby approved and authorized. The Series 2014 Registrar and Paying Agent Agreement shall be in substantially the form submitted to the Governing Body with such changes, corrections, deletions, insertions, variations, additions, or omissions as may be approved by the Mayor, whose approval thereof shall be conclusively evidenced by the execution of such contract. The Mayor is hereby authorized and directed to execute on behalf of the Consolidated Government the Series 2014 Registrar and Paying Agent Agreement, and the Clerk of Commission is hereby authorized and directed to affix thereto and attest the seal of the Consolidated Government, upon proper execution and delivery of the other party thereto, provided, that in no event shall any such attestation or affixation of the seal of the Consolidated Government be required as a prerequisite to the effectiveness thereof, and the Mayor and Clerk of Commission are authorized and directed to deliver such contract on behalf of the Consolidated Government. Section 6.6. Effective Date. This Series 2014 Resolution shall take effect immediately upon its adoption. Section 6.7. Repeal of Conflicting Resolutions. Any and all resolutions, or parts of resolutions, if any, in conflict with this Series 2014 Resolution are hereby repealed. Section 6.8. General Authorization. From and after the date of adoption of this Series 2014 Resolution, the officials, employees, and agents of the Consolidated Government are hereby authorized to do all such acts and things and to execute and deliver any and all other documents, agreements, certificates (including, without limitation, the Series 2014 Disclosure Certificate), and instruments as may be necessary or desirable in connection with the execution, delivery, and sale of the Series 2014 Bonds, the investment of the proceeds of the Series 2014 Bonds, and the transactions contemplated on the part of the Consolidated Government by the Series 2014 Resolution. The Mayor and Clerk of Commission are hereby authorized and directed to prepare and furnish to the purchasers of the Series 2014 Bonds, when the Series 2014 Bonds are issued, certified copies of all proceedings and records of the Consolidated Government relating to the Series 2014 Bonds or to this Series 2014 Resolution, and such other Attachment number 1 \nPage 29 of 33 Item # 5 -29- ATLANTA 5572182.2 affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Series 2014 Bonds as such facts appear from the books and records in the officers’ custody and control or as otherwise known to them. All such certified copies, certificates, and affidavits, including any heretofore furnished, shall constitute representations of the Consolidated Government as to the truth of all statements contained therein. Section 6.9. Waiver of Bond Audit. The Consolidated Government hereby approves the publication of the requisite legal notice waiving the performance audit and performance review requirements of Section 36-82-100 of the Official Code of Georgia Annotated. Section 6.10. Bond Resolution Constitutes a Contract. This Series 2014 Resolution supplements and amends a contract with the Bondholders binding the Consolidated Government, and therefore it is proper and appropriate for the Mayor to execute the same on behalf of the Consolidated Government and for the Clerk of Commission to attest the same. [Signatures on following page] Attachment number 1 \nPage 30 of 33 Item # 5 -30- ATLANTA 5572182.2 PASSED, ADOPTED, SIGNED, APPROVED, AND EFFECTIVE this 5th day of October 2014. AUGUSTA, GEORGIA (SEAL) By: Mayor Attest: Clerk of Commission Attachment number 1 \nPage 31 of 33 Item # 5 ATLANTA 5572182.2 EXHIBIT A NOTICE OF CALL FOR REDEMPTION AUGUSTA, GEORGIA WATER AND SEWERAGE REVENUE BONDS, SERIES 2004 NOTICE IS HEREBY GIVEN that, pursuant to the provisions of that certain Supplemental Bond Resolution adopted by the Augusta-Richmond County Commission on November 23, 2004, authorizing the issuance by Augusta, Georgia of $160,000,000 in aggregate principal amount of its revenue bonds known as “Augusta, Georgia Water and Sewerage Revenue Bonds, Series 2004” (the “Bonds”), dated December 9, 2004, bearing interest at the rate per annum set forth below opposite the principal maturity, all interest payable on April 1 and October 1 in each year, and the principal maturing on October 1 in the years and the amounts set forth below: Year Amount Rate CUSIP 2034 $ 40,025,000 5.25% 051249 ER7 2039 119,975,000 5.25 051249 ES5 have been called for redemption on October 2, 2014, but only if funds for their redemption are on deposit at the place of redemption on October 2, 2014, at a redemption price of 100.0% of the principal amount outstanding thereof plus accrued interest to the date of redemption. Funds for the redemption and payment of the Bonds and the interest then due thereon to October 2, 2014 will be available at U.S. Bank National Association, on October 2, 2014, but only if funds for the redemption of all Bonds are on deposit at the place of redemption on October 2, 2014, and all Bonds should be presented to said bank for redemption and payment on said date. All Bonds shall cease to bear interest on and after October 2, 2014, provided funds for the redemption of all Bonds called for redemption are on deposit at the place of payment on October 2, 2014. All Bonds delivered for redemption shall be accompanied by proper instruments in blank. If funds for the redemption of all Bonds called for redemption are not on deposit at the place of payment on October 2, 2014, the Bonds shall be deemed not to have been called for redemption on October 2, 2014 and shall remain outstanding and shall continue to bear interest. U.S. BANK NATIONAL ASSOCIATION, as Paying Agent and Bond Registrar By: Authorized Officer Attachment number 1 \nPage 32 of 33 Item # 5 ATLANTA 5572182.2 STATE OF GEORGIA RICHMOND COUNTY CLERK’S CERTIFICATE I, LENA J. BONNER, Clerk of Commission of Augusta, Georgia, DO HEREBY CERTIFY that the foregoing pages constitute a true and correct copy of the Series 2014 Bond Resolution adopted by the Augusta-Richmond County Commission (the “Commission”) at an open public meeting duly called and lawfully assembled at 2:00 p.m., on the 5th day of August 2014, in connection with the issuance and sale of not to exceed $198,000,000 in original aggregate principal amount of revenue bonds designated “Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds, Series 2014,” the original of such Series 2014 Bond Resolution being duly recorded in the Minute Book of the Commission, which Minute Book is in my custody and control. I do hereby further certify that the Mayor, Deke S. Copenhaver, and the following members of the Commission were present at such meeting: William Fennoy Corey Johnson Mary Davis Alvin Mason Bill Lockett Joe Jackson Donnie Smith Wayne Guilfoyle Marion Williams Grady Smith and that the following members were absent: and that such resolution was duly adopted by a vote of: Aye ___ Nay ___ WITNESS my hand and the official seal of Augusta, Georgia, this the 5th day of August 2014. (SEAL) Clerk of Commission Attachment number 1 \nPage 33 of 33 Item # 5 R E P O R T Engineer’s Report Water and Sewerage Revenue Refunding and Improvement Bonds Second Resolution, Series 2014 PREPARED FOR Augusta Utilities Department PREPARED BY AUGUST 2014 Attachment number 2 \nPage 1 of 71 Item # 5 ii Contents Acronyms ............................................................................................................................................. v Introduction ......................................................................................................................... 1-1 1.1 Purpose .................................................................................................................... 1-1 1.2 References ................................................................................................................ 1-2 1.3 Assumptions ........................................................................................................... 1-2 System History and Organization, and County Growth ............................................ 2-1 2.1 Organizational Structure ....................................................................................... 2-2 2.1.1 Augusta ....................................................................................................... 2-2 2.1.2 System Management ................................................................................. 2-2 2.2 Augusta Population Trends .................................................................................. 2-5 Water System ....................................................................................................................... 3-1 3.1 Overview of Potable Water System ..................................................................... 3-1 3.2 Water Service Area ................................................................................................. 3-1 3.3 Water Supply .......................................................................................................... 3-2 3.3.1 Raw Water Pumping ................................................................................. 3-4 3.3.2 Raw Water Transmission and Storage ................................................... 3-5 3.4 Water Treatment Facilities .................................................................................... 3-6 3.4.1 Highland Avenue and NM Hicks WTP System Processes .................. 3-6 3.5 Finished Water Storage, Chemical Feed Systems, and High Service Pumping3-7 3.5.1 Finished Water Storage ............................................................................. 3-7 3.5.2 Chemical Feed Systems ............................................................................ 3-8 3.5.3 High Service Pumping .............................................................................. 3-8 3.6 Water Distribution System .................................................................................... 3-9 3.7 Water Quality ........................................................................................................ 3-14 3.8 Projected Water Demand .................................................................................... 3-14 3.9 Regulatory Impacts .............................................................................................. 3-17 3.9.1 Existing Regulations ............................................................................... 3-18 3.9.2 Future Regulations .................................................................................. 3-20 Wastewater System ............................................................................................................ 4-1 4.1 Overview of Wastewater System ......................................................................... 4-1 4.2 Wastewater Collection and Conveyance ............................................................ 4-2 4.3 Wastewater Treatment Facilities .......................................................................... 4-3 4.4 Projected Wastewater Flows ................................................................................. 4-5 4.5 Regulatory Impacts ................................................................................................ 4-7 4.5.1 Watershed Management .......................................................................... 4-7 4.5.2 Total Maximum Daily Load Development ............................................ 4-7 4.5.3 NPDES Permitting and Nutrient Management .................................... 4-8 4.5.4 Onsite Septage Systems ............................................................................ 4-8 4.5.5 Residuals Management and 503 Regulations ........................................ 4-9 4.5.6 Stormwater Pollution Prevention Plan (SWP3) .................................... 4-9 4.5.7 Spill Prevention, Control, and Countermeasures Plan (SPCCP) ........ 4-9 4.5.8 Municipal Storm Water Discharge Permit ........................................... 4-10 Attachment number 2 \nPage 2 of 71 Item # 5 CONTENTS (CONTINUED) iii Proposed System Capital Improvement Plan ............................................................... 5-1 5.1 Planning Criteria and Assumptions .................................................................... 5-1 5.2 Cost Opinions for Recommended Projects ......................................................... 5-3 5.3 Summary of Capital Improvements .................................................................... 5-4 5.3.1 Water Treatment ........................................ Error! Bookmark not defined. 5.3.2 Water Distribution System ....................................................................... 5-4 5.3.3 Wastewater Conveyance .......................... Error! Bookmark not defined. 5.3.4 System-wide Improvements .................... Error! Bookmark not defined. 5.4 Anticipated Future Work ...................................... Error! Bookmark not defined. Financial Performance ........................................................ Error! Bookmark not defined. 6.1 Historical Performance .......................................... Error! Bookmark not defined. 6.2 Water and Sewer Rates .......................................... Error! Bookmark not defined. 6.3 Financial Policies .................................................... Error! Bookmark not defined. 6.4 Projected Operating Results .................................. Error! Bookmark not defined. 6.4.1 Revenues ..................................................... Error! Bookmark not defined. 6.4.2 Expenses ..................................................... Error! Bookmark not defined. 6.4.3 Debt Service ................................................ Error! Bookmark not defined. 6.4.4 Debt Service Coverage .............................. Error! Bookmark not defined. 6.4.5 Operating Fund Balances ......................... Error! Bookmark not defined. 6.5 Capital Financing.................................................... Error! Bookmark not defined. 6.6 Conclusions ............................................................. Error! Bookmark not defined. Tables Table 2-1 Historic Population and Projections Table 3-1 Water Withdrawal Permits Table 3-2 Existing Equipment at the Raw Water Pump Station Table 3-3 Water Treatment Plants and Chlorination System Table 3-4 table 3-5 Pressure Gradient Summary Table 3-6 Surface Water Storage Facilities Table 3-7 Surface Water Pumping Facilities Table 3-8 Groundwater System Storage Facilities Table 3-9 Groundwater System Pumping Facilities Table 3-9 (Continued) Groundwater System Pumping Facilities Table 3-10 Water Demand 2011 Table 3-11 Attachment number 2 \nPage 3 of 71 Item # 5 CONTENTS (CONTINUED) iv The 10 Largest Water Customers (for the 12-month period ending December 31, 2011) Table 3-12 Historic and Projected Water Consumption Table 3-13 Historic and Projected Water Usage by Customer Class Table 3-14 Summary of Stage 1 D/DBP Rule Limits TABLE 4-1 Wastewater Treatment Plants Owned by Augusta Table 4-2 J. B. Messerly WPCP Effluent Limitations Table 4-3 Spirit Creek Effluent Limitations Table 4-4 Wastewater Flows (mgd)1 Table 4-5 10 Largest Wastewater Customers, (for the 12-month period ending December 31, 2011) Table 5-1 2012 Series Bond Projects—Summary of Estimated Costs Table 5-2 2012 Series Bond Projects—Summary of Estimated Water Treatment Costs Table 5-5 2012 Series Bonds Projects—Summary of Estimated Wastewater Conveyance System Costs TABLE 5-5.2 TABLE 5-5.3 2012Series Bonds Projects—Estimated Wastewater Conveyance System Costs: 5.3.4.3 Renewal and Replacement Table 5-6 2012 Series Bonds Projects—Summary of Estimated System-wide Costs Table 6-3 Water and Sewer System Forecast Operating Results Table 6-4 Operating Fund, Forecasted Sources and Uses of Cash Flows Attachment number 2 \nPage 4 of 71 Item # 5 v Acronyms AL Action Limit AMWA Association of Metropolitan Water Agencies ASCE American Society of Civil Engineers AUD Augusta Utilities Department AWWA American Water Works Association BMP Best Management Practice BPS booster pump station CFR Code of Federal Regulations cfs cubic feet per second CGFM Certified Government Financial Manager CIP Capital Improvement Plan CMOM Capacity, Maintenance, Operation, and Management CPA Certified Public Accountant CPE Chartered Pension Executive CT Contact Time CWA Clean Water Act D/DBP Disinfectants/Disinfection Byproducts Rule DI ductile iron DNR Department of Natural Resources DO Dissolved Oxygen EPA United States Environmental Protection Agency EPD State of Georgia, Department of Natural Resources, Environmental Protection Division FAC Federal Advisory Committee FM force main fps feet per second ft2 square feet FTE Full-time Equivalent FY Fiscal Year GEFA Georgia Environmental Finance Authority gpcpd gallons per capita per day gpd gallons per day gpm/ft2 gallons per minute per square foot GWTP groundwater treatment plant HAA Haloacetic Acid HPC Heterophic Plant Count I/I infiltration and inflow Attachment number 2 \nPage 5 of 71 Item # 5 ACRONYMS (CONTINUED) vi IDSE Initial Distribution System Evaluation IESWTR Interim Enhanced Surface Water Treatment Rule IT Information Technology kgal 1,000 gallons LRAA Locational Running Annual Average LT1ESWTR Long-Term 1 Enhanced Surface Water Treatment Rule LT2ESWTR Long-Term 2 Enhanced Surface Water Treatment Rule MCL(G) maximum contaminant level (goal) MG million gallons mg/L Milligrams per Liter mgd million gallons per day MS4 Municipal Separate Storm Sewer System MSA Metropolitan Statistic Area msl mean sea level NPDES National Pollutant Discharge Elimination System NTU Nephelometric Turbidity Unit O&M Operations and Maintenance PAC Powdered Activated Carbon PE Professional Engineer PRV Pressure-Reducing Valves PS pump station PSI pounds per square inch PVC polyvinyl chloride RMP risk management plan SDWA Safe Drinking Water Act SPCCP Spill Prevention, Control, and Countermeasures Plan SWAP Source Water Assessment Plan SWP3 Stormwater Pollution Prevention Plan SWTR Surface Water Treatment Rule TDH Total Dynamic Head TM Technical Memorandum TMDL Total Maximum Daily Load TSS Total Suspended Solids TTHM total trihalomethanes UV Ultraviolet WEF Water Environment Federation WPCP Water Pollution Control Plant WTP water treatment plant WWTP wastewater treatment plant Attachment number 2 \nPage 6 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1-1 Introduction 1.1 Purpose ZEL Engineers was retained to prepare this Engineer’s Report (“the Report”) of the feasibility of issuing Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds, Second Resolution Series 2014 (the “Series 2014 Bonds”). This Report identifies capital improvements to be financed through the Series 2014 Bonds. In addition, proceeds of the Series 2014 Bonds will be used to refund Series 2004 Revenue Bonds, which is estimated to provide Present Value Savings of $____M. The proceeds of the Series 2014 Bonds (other than proceeds applied to the refunding) will be applied in the following approximate amounts: $31,000,000 will finance improvements to the Augusta water and wastewater system; $___________will be used to fund costs of issuance (including underwriter’s discount, legal fees, rating fees, and other miscellaneous costs associated with issuance of the Series 2014 Bonds); The “System” is defined as the water and wastewater facilities that are owned and operated by Augusta, Georgia (Augusta) together with all water and wastewater facilities acquired or used by Augusta in furnishing water and wastewater services. Major components of the System are referred to herein as the “Water System” and the “Wastewater System.” This Report contains the following sections: Section 1 – Introduction – outlines authorization and purpose of the Report, study references, and assumptions. Section 2 – System History and Organization, and County Growth – provides an overview of the System’s history, organization, management, and county population trends. Section 3 – Water System – describes the current Water System service area, facilities, operations, and assets. Section 4 – Wastewater System – describes the current Wastewater System’s service area, facilities, operations, and assets. Section 5 – Proposed System CIP – provides the planning criteria and assumptions used for identifying needed capital improvements and it describes the purpose and function of categories of planned improvements. Section 6 – Financial Performance – describes historical and projected financial performance, Augusta’s financial policies, and a funding analysis for the Series 2012 Bonds. Attachment number 2 \nPage 7 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1-2 1.2 References ZEL Engineers reviewed and relied upon information provided by the Augusta Utilities Department (AUD or the Department). As part of previous and current project assignments ZEL Engineers has independently verified a significant portion of this information. Although ZEL Engineers offers no assurances regarding information not independently verified, it has no reason to believe that the information is invalid for the purposes of this Report. Information used to complete this Report included: Interviews with Department staff Preliminary Official Statement, Augusta, Georgia Water and Sewerage Revenue Refunding and Improvement Bonds, Series 2014, dated September 2014 Augusta Utilities Department, 2014 Budget Workbook Augusta-Richmond County, Georgia, Annual Financial Statements, 2009-2014 Augusta-Richmond County Utilities, Financial Statements and Accompanying Information for the year ended 2009-2014 Augusta-Richmond County Utilities, Miscellaneous Statistical Data for the years ended 2007-2011 (prepared by Augusta Utilities Department) Augusta-Richmond County Comprehensive Plan 2004 and 2008, (prepared by Augusta- Richmond County Planning Commission) Technical Memorandum: Population Trends and Water/Wastewater Flow Projections, July 12, 2004 (prepared by Diane Reilly, Consulting Economist) Master Plan 2012 for Water and Wastewater Systems, Augusta Utilities Department, Summary of Recommendations for Expansions and Improvements, August, 2014 (prepared by Constantine Engineering) Master Plan 2000 for Water and Wastewater Systems, Augusta Utilities Department, Technical Memorandum 5.2: Augusta-Richmond County Wastewater Conveyance System Evaluation, April 4, 2002 (prepared by CH2M HILL) 1.3 Assumptions ZEL Engineers also made certain assumptions about future conditions with regard to the System. While these assumptions are reasonable for the purposes of this Report, actual conditions may differ somewhat from those assumed. To the extent that future conditions differ from those assumed, results may vary from those forecast. ZEL Engineers’ principal assumptions regarding future conditions are: The future conditions continue to be as described in the Series 2012, and 2014 Engineering Reports. Attachment number 2 \nPage 8 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1-3 Augusta, GA population will increase from the 2000 level of 199,775 to 224,715 by 2025, according to the Augusta-Richmond County Comprehensive Plan 2008. In addition, many areas of Augusta are under development as a result of a shift in growth patterns. This has required that the Department improve water and wastewater infrastructure to serve existing and new customers. Augusta has a policy that mandates conversion to central wastewater collection when service is available. The Augusta Utilities Department has plans to ensure enforcement but conservatively estimates that actual connections will occur over a period of 3 years following completion of new collection lines. System water consumption and wastewater flows will increase in proportion to the forecast increases in the number of water and wastewater accounts and decreased per capita flows. System per capita residential water consumption will decrease by an estimated 1.2 percent over the next 12 years (0.1% per year) due to the implementation of local and statewide water conservation measures and response to improved water use metering and projected rate increases. Availability of water from the Savannah River for hydro-mechanical motive force for pumping and as the raw water source for the Highland Avenue Water Treatment Plant will continue unaffected through the planning period. The Augusta, GA Commission will adopt the rate increases necessary to implement the financial plan outlined in Section 6. Additional assumptions used in preparing the CIP are described in Section 5. Attachment number 2 \nPage 9 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 2-1 System History and Organization, and County Growth Augusta, Georgia is a political subdivision of the State of Georgia, created on January 1, 1996, pursuant to Acts of the General Assembly of the State of Georgia, which authorized the consolidation of the municipal corporation known as “The City Council of Augusta” and the political subdivision known as “Richmond County, Georgia” (the “Consolidation Charter”). See Figure 2-1 for the County’s location in Georgia. Augusta owns the water supply, treatment, and distribution system, as well as the wastewater collection and treatment system. The Department is responsible for the operation and maintenance of the water treatment and distribution facilities (the “Water System”), as well as the wastewater conveyance and treatment facilities (the “Wastewater System”) that serve Augusta’s service area. In addition, the Department provides customer service functions including meter reading and customer billing, revenue collections, and inspection of new construction. Attachment number 2 \nPage 10 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 2-2 2.1 Organizational Structure 2.1.1 Augusta 2.1.2 System Management On January 1, 1996, Augusta, GA was created as a consolidated city-county government, whose territorial jurisdiction extends to all of what was formerly Richmond County. Blythe, and Hephzibah, small municipalities with estimated current (2010) populations of 810 and 4,373, respectively, still hold their own municipal charters within the consolidated territory. The relationship between Augusta, GA and Blythe and Hephzibah is similar to that of counties and municipalities within the territorial limits of such counties. As a result of consolidation, Augusta is able to provide public services throughout its territorial limits through a single organization and management structure. Augusta has a municipal form of government. Under the Consolidation Charter, the governing authority of Augusta is a board of commissioners designated as the Augusta, GA Commission (the “Commission”). The Commission consists of a Mayor, who is the chief executive officer of the Commission, and 10 commissioners. The System is managed by Augusta through the Utilities Department. The Administrator of Augusta, who is appointed by the Commission upon recommendation of the Mayor, oversees the management of the operations and capital program of the various Departments. The chief managerial officer of the Utilities Department is the Director, who is appointed by the Commission. Donna Williams, C.G.F.M, has served as the Director of Finance of Augusta since November 2007. She has been employed by Richmond County and Augusta, GA for approximately 30 years and served as the Assistant Director of Finance from 1984 until she assumed the position of Interim Director of Finance on March 1, 2006 and the position of Director of Finance on November 8, 2007. Ms. Williams earned a Certified Governmental Financial Manager certificate in 1997 and received a B.B.A. degree in Accounting from Augusta State University in 1979. Tom Wiedmeier, P. E., has served as the Utilities Department Director since December 2009. He had previously served in various positions with the former City of Augusta and Augusta, GA from 1988 through 2000 including four years as Assistant Director of the Utilities Department. From 2000 until his return to Augusta Utilities as Director, he was employed as Senior Project Manager for Tetra Tech. Mr. Wiedmeier serves on the State Water Planning Council for the Savannah/Upper Ogeechee River basin, and is active in the Georgia Association of Water Professionals. He received a Bachelor of Civil Engineering Degree from the Georgia Institute of Technology in 1984, and is a registered Professional Engineer in the State of Georgia Steven J. Little, C.P.A. has been the Assistant Director of Finance and Administration of the Utilities Department since December of 2001. From 2000 to 2001, he was the Assistant to the Chief Financial Officer at the national headquarters for Electrolux Home Products, makers of Frigidaire appliances, located in Augusta, Georgia. Prior to that, he was the Chief Financial Officer for a start-up medical referral company and its sister corporation in Aiken, South Carolina. His previous experience includes over 10 years of public accounting, with an emphasis in auditing local governments, and internal auditing for a private utility company. Mr. Little is a licensed certified public accountant and currently serves as a Attachment number 2 \nPage 11 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 2-3 member of the Finance and Administration Subcommittee for the Utility Management Committee of the Water Environment Federation. He received a B.B.A. degree in Accounting from Iowa State University in 1982. D. Allen Saxon, Jr. is the Assistant Director for Facility Operations with responsibility for all wastewater treatment and water production facilities. Previously, he was the Assistant Director of Wastewater for the Utilities Department from March 5, 2001 until March 31, 2012. Mr. Saxon served as the Supervisor of Water Pollution Control for the former City of Augusta for 17 years until September of 1994, when he resigned to further his education. He is an active member of the Georgia Association of Water Professionals, the Water Environment Federation and the American Water Works Association. Mr. Saxon was Georgia’s 1990 recipient of the William D. Hatfield Award from the Water Environment Federation. Mr. Saxon earned a B.B.A. degree in 1983 from Augusta State University and an M.S. degree in 1996 from Georgia State University. Mr. Saxon is certified as a Class I Wastewater Treatment System Operator by the State of Georgia. Horace Luke has been the Assistant Director of Fort Gordon Operations for the Utilities Department since January 2008. Mr. Luke served as the Manager of Fort Gordon’s Water System and Water Pollution System for 28 years. He is an active member of the Georgia Association of Water Professionals, and American Water Works Association. Mr. Luke is certified by the State of Georgia as a Class I Water Treatment System Operator, Wastewater Water Treatment System Operator, Laboratory Analyst and Backflow Technician. Jerry Delaughter, P.E., has been the Assistant Director for the Engineering Division of the Utilities Department since September of 2008. He has been employed by the Augusta, GA in the Utilities Department for 7 years. Prior to his current employment, Mr. Delaughter worked for the Federal Government for 32 years in various engineering capacities. He received a B.S. degree in Civil Engineering in 1971 from Clemson University. In 1976, he obtained his Professional Engineer’s license. Mr. Delaughter is a member of the American Water Works Association, the Georgia Association of Water Professionals, and the American Society of Civil Engineers. The Department. The Department has 300 full-time equivalent (FTE) positions authorized in its fiscal year (FY) 2014. Figure 2-2 illustrates the current organization of the Department. No employees of the System are represented by labor organizations or are subject to provisions of collective bargaining agreements, and the Commission is not aware of any union organizing efforts. The System’s plant operators and maintenance and repair personnel are required to meet the certification levels prescribed by the State of Georgia Board of Certification of Water and Wastewater Operators. Augusta pays for continuing education programs to ensure that System personnel are qualified, and achieve and maintain certification of their qualifica- tions. The System’s operators meet or exceed the minimum credentials required by the State of Georgia. Additionally, all field employees must attend safety meetings and participate in safety training programs; these cover shoring and trenching, confined space entry, lock-out/tag- out, and other safety topics. Attachment number 2 \nPage 12 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 FIGURE 2-2 UTILITIES DEPARTMENT ORGANIZATIONAL Attachment number 2 \nPage 13 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 2-5 2.2 Augusta Population Trends After growing by 5.3 percent from 1990 to 2000, the total population of Augusta increased slightly between 2000 and 2010, from 199,775 to 200,549 according to the U.S. Bureau of the Census. Statewide, the population in Georgia, which grew by 26.4 percent during the 1990s, has increased by 18.3 percent from 2000 to 2010. Augusta ranks seventh in the State in terms of population behind five metropolitan Atlanta counties (Fulton, DeKalb, Gwinnett, Cobb, and Clayton) and Savannah’s Chatham County. While the growth rate of Augusta has been relatively modest compared to the accelerated growth experienced elsewhere in the State, Augusta’s previously undeveloped areas have experienced significant population growth. This redistribution of population has hastened some of the requirements for planned capital improvements. The growth by census tracts (Appendix A) from 2000 to 2010 is shown in Figure 2-3 by regions. Note that Regions 1, 2 and 5 represent the older, more developed City of Augusta prior to consolidation. The general population shift within Augusta to more rural areas, which previously had limited services or were not served, has required the Department to expand System capacity in these areas. Economic development is largely affected by factors beyond Augusta’s direct control including growth in adjacent counties and the health of the Augusta Metropolitan Statistical Area’s (MSA) economy. However, economic development and growth manage- ment policies of the local government will significantly impact the pattern of population distribution within the County. The projections used by ZEL Engineers in forecasting water and wastewater flows (see Sections 3.8 and 4.4) used the forecast presented in the Augusta-Richmond County Comprehensive Plan 2008, with adjustments made for the U.S. Army’s Fort Gordon on-Post population at the Fort. Augusta now provides all water and sewer utility services to the Fort’s on-base population. Table 2-1 presents the projected population, including that for Fort Gordon, for Augusta through 2025. Census based projections are not available at this time. As shown in the table, future growth is expected to be about 4% per decade. Ft Gordon population increases are expected to be very modest. TABLE 2-1 Historic Population and Projections Year 2000(H)2005(H)2010(H)2015(P)2020(P)2025(P)2030(P) Richmond Co.199,775 200,075 200,549 205,715 209,521 214,445 219,913 % Change 0.2%0.2%2.6%1.9%2.4%2.5% Augusta 195,182 194,953 195,366 200,449 204,157 208,955 214,283 % Change -0.1%0.2%2.6%1.8%2.4%2.5% Hephzibah 3,880 4,322 4,373 4,443 4,526 4,632 4,750 % Change 11.4%1.2%1.6%1.9%2.3%2.5% Blythe 713 800 810 823 838 858 880 % Change 12.2%1.3%1.6%1.8%2.4%2.6% Ft Gordon1 - - 20,903 21,000 21,100 21,200 21,300 WS Total 195,182 194,953 216,269 221,449 225,257 230,155 235,583 1 Extrapolated estimates from August 2007 Post Population Profile. On Post populations Source: 2005-2030 Projections, Augusta-Richmond County Planning Commission, October 2007 Attachment number 2 \nPage 14 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 2-6 150,000 170,000 190,000 210,000 230,000 250,000 270,000 290,000 1990 2000 2010 2020 2030 2040 2050 2060 2070 Po p u l a t i o n Year Augusta Population Projections DCA 1.0 multiplier "DCA 1.0 + FG" Figure 2-3a State DCA Population Projections Ft Gordon on Base population is included. These are approximate values Attachment number 2 \nPage 15 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 3-1 Water System 3.1 Overview of Potable Water System Augusta owns and operates a potable water system serving 63,266 residential and 7,896 commercial and industrial customers as of December 2011. The City draws surface water from the Savannah River and groundwater from the Tuscaloosa Formation Aquifer that lies beneath the City. Currently water is drawn from the Savannah River through the Augusta Canal that was constructed in the 1845 and enlarged in 1875. High quality raw water is pumped from the Augusta Canal to raw water basins located at the Highland Avenue Water Treatment Plant (HAWTP). The water from the Tuscaloosa Formation Aquifer is pumped by wells to groundwater water treatment plants (GWTP) Nos. 1, 2, and 3. Savannah River water is pumped to the N Max Hicks Water Treatment Plant (NMHWTP) to a raw water basin there. The water system consists of a raw surface water supply with a monthly average permitted capacity of 65 million gallons per day (mgd) and ground water supply with a monthly average allotment of 18.4 mgd. The system has raw surface water storage capacity of approximately 167 million gallons (MG), seven raw surface water pump stations with aggregate raw water pumping capacity of 111 mgd, and 21 active wells with aggregate groundwater pumping capacity of 20.3 mgd. The system includes five water treatment plants and a rural chlorination system with an aggregate rated capacity for treatment of raw water of 95 mgd and an aggregate rated treated water pumping capacity of 80.7 mgd. In addition, the system has treated water storage capacity of 50.7 MG and a water distribution network of approximately 1,350 miles of pipelines. Currently Augusta can be supplied with 95 mgd of treated water from five operating water treatment plants: Highland Avenue WTP with 60 mgd production capacity, the N. Max Hicks Tobacco Road WTP (NMHWTP) with a capacity of 15 mgd, GWTP No. 1 with 5 mgd capacity, GWTP No. 2 with 10 mgd capacity, and GWTP No. 3 with 5 mgd capacity. 3.2 Water Service Area The Water System supplies water to residential, commercial, and industrial customers located within the County. The service area encompasses approximately 210 square miles (approximately 88 percent of the land area of the County exclusive of Fort Gordon). The Augusta population plus Fort Gordon On-Post population, containing an estimated population in excess of 222,120. The equivalent population of Fort Gordon is estimated to be 20,903. The water systems of the Cities of Blythe and Hephzibah currently provide water service within their respective jurisdictions in the County. A Technical Proposal was developed by the Water System Utilities Department for the Privatization of Fort Gordon Army Installation. The privatization is implemented. The flows to supply Fort Gordon have been considered when defining future demands to assure availability of system capacity. Figure 3-1 presents the areas currently served by the Water System with overlays of major water distribution lines. Generally, the service area can be characterized as having complete Attachment number 2 \nPage 16 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-2 water service coverage for potential customers who wish to connect to the Water System. Projects defined in Section 5 as part of the CIP will continue to enhance the Water System’s ability to serve this area. 3.3 Water Supply The Water System’s primary source of raw water is the Savannah River. Since 1898, Augusta has used water power to pump its water to the treatment facility 345 ft above the river. The raw water supply is pumped from the Water System’s raw water pump station (RWPS), located between the Augusta Canal and the Savannah River, to the Highland Avenue WTP through a system of parallel raw water lines. There are three raw water transmission lines following two different paths: a 30–inch-diameter cast iron pipe, 36-inch steel pipe, a 60-inch ductile iron pipe. A fourth pipe, 42” PCP, has been decommissioned. The RWPS has six raw water intakes on the canal, four primary and two secondary, plus three additional diesel-engine-driven standby raw water pumps that can pump from either the canal or the river. All this water is pumped to the HAWTP. Two other intakes on the Savannah River provide raw water supply to the Pistol Range Rd. RWPS that pumps raw water to the N Max Hicks WTP in South Augusta through electric pumps and via an 8 mile long 48” ductile iron pipeline. In addition, Augusta is permitted to withdraw supplemental raw water from the Tuscaloosa Formation aquifer through 32 wells: 21 actively producing, 10 deactivated, and 1 inactive. The Water System is currently permitted to withdraw Augusta Service Area includes Ft Gordon, but not Hephzibah or Blythe Attachment number 2 \nPage 17 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-3 groundwater under Georgia Department of Natural Resources Environmental Protection Division (EPD) Permit No. 121-0007 to pump 18.4 mgd maximum month average; and 17.4 mgd maximum annual average. See Figure 3-2 for the location of the wells and WTPs in the service area. The Georgia Water Quality Control Act authorizes the EPD to regulate the withdrawal of water from lakes, streams, and aquifers in Georgia. Augusta holds permits for raw water sources as noted in Table 3-1. TABLE 3-1 Water Withdrawal Permits Permitted Withdrawal (mgd) Raw Water Source Monthly Average 24 hour Max. Day Surface Water: Highland Avenue WTP source: Savannah River/Augusta Canal EPD Permit No. 121-0191-06 45.0 50.0 Hicks WTP source: Savannah River EPD Permit No. 121-0191-09 (modified) 15.0 21.0 Groundwater: Monthly Average Annual Average 21 Active Wells – located at GWTP Nos. 1, 2, and 3 plus two individual sites (Rural Chlorination Sys.) EPD Permit No. 121-0007 18.4 17.4 Note: mgd = million gallons per day Attachment number 2 \nPage 18 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-4 In 1991, Georgia EPD issued to former Richmond County a permit for withdrawal of raw water from the Savannah River of 30 mgd monthly average and 37 mgd maximum daily capacity. The intake would have been located north of Interstate 20 where a new WTP was initially planned (EPD Permit No. 121-0191-09), referred to as the North Location. Richmond County did not construct the plant. After the consolidation of the former City of Augusta and Richmond County, all permits were also consolidated. In June 2000, EPD approved the transfer of 15 mgd monthly average capacity to the current NMH WTP raw water intake location(EPD Permit No. 121-0191-09), increasing the monthly average/24-hour maximum day withdrawal capacity from the Savannah River to 60 mgd. 65 mgd maximum. A request to transfer the remaining 15-mgd capacity from the North Location to the HAWTP RWPS (EPD Permit No. 121-0191-09) is pending. 3.3.1 Raw Water Pumping Withdrawal of raw water for Augusta’s primary raw water supply is accomplished via a raw water pump station (RWPS) that has an aggregate pump capacity in excess of 111 mgd and is located at the Water System’s water intake on the Augusta Canal. Raw water pumping is accomplished primarily using two pumps, Units 1 and 4, with rated capacities of 20 mgd and 30 mgd, respectively. Units 1 and 4 are powered by water-driven double- opposed Francis ® turbines, originally constructed in 1952 and 1975, respectively, and Attachment number 2 \nPage 19 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-5 improved in 1993 and 1999. Unit 1 drives a two-stage centrifugal pump and is presently undergoing complete restoration to like new condition Unit 4 drives a single-stage centrifugal pump. Units 2 and 3 are much older Francis ® turbines and centrifugal pumps (c. 1939), These pumps were originally constructed in 1898 and replaced in 1939. Units 2 and 3 have been relegated to historical and educational use. Two diesel-engine driven raw water pumps were completed in 2008. Each pumps 22 mgd from the River, 24 mgd from the canal. An additional bay can accommodate another pump driven either by a diesel engine or by an electric motor. A fifth unit, Unit 5, is a standby diesel-engine-driven raw water pump, with a water intake which can also be used from the Augusta Canal or the Savannah River, and a pumping capacity of 20/17 mgd. This standby auxiliary pump was originally constructed in 1975 and is housed in the same building as Unit 4, which received major upgrading in 1999. See Table 3-2 for detailed information on the raw water pumps. Table 3-2 outlines information on the raw water pump station equipment as well as their general condition. The Department maintenance staff has rated the pumps based upon equipment age, performance, and reliability. Those rated “good” are considered reliable for continuous use with little maintenance, while those rated “fair” are older and considered reliable only for occasional use. For pumps rated “fair”, maintenance is more difficult due to age of equipment and wear. Upgrading of the pump station is part of the planned capital improvements described in Section 5. TABLE 3-2 Existing Equipment at the Raw Water Pump Station Pump No. Flow Capacity (mgd) Turbine Flow (cfs) Installed Capacity Comments No. 1 20 550 1,650 hp Good condition No. 2 9 (retired) 250 750 hp Fair condition No. 3 9 (retired) 250 750 hp Fair condition No. 4 30 814 2,500 hp Good condition No. 5 20/17* 0 (Diesel-driven) 2,000 hp Good condition No. 6 24/22** 0 (Diesel-driven) 2,000 hp New condition No. 7 24/22** 0 (Diesel-driven) 2,000 hp New condition *17(**22) if withdrawing water directly from the river Source: Augusta Utilities Department, Water Treatment Division Note: cfs = cubic feet per second 3.3.2 Raw Water Transmission and Storage Raw water is currently transmitted from the RWPS to raw water holding basins at the Highland Avenue WTP via three pipelines: a 30-inch cast iron pipe (c 1898), a 36-inch steel pipe (c 1952), and a 60-inch ductile iron (DI) pipe (c 2005). (A 42-inch pre-stressed concrete cylinder pipe (c 1974) has been taken out of service to be evaluated for possible use as a backup supply line.) The pipelines have a total capacity range of 102.15 to 163.40 mgd or a Attachment number 2 \nPage 20 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-6 firm carrying capacity with the 60-inch line out of service of 38.7 to 61.88 mgd, at typical velocity ranges of 5 to 8 feet per second (fps) for pumped flow. The Highland Avenue WTP has raw water storage capacity of approximately 379 acre-feet or 124 MG at two raw water basins that serve the Water System. They provide pre-settling of suspended matter in the raw water as well as storage during times of low river or canal flows. Water flows by gravity from these holding basins to the WTP. The NMHWTP likewise has one basin of 45 MG that also provides water to the plant by gravity. Both plants are capable of by-passing the basins. 3.4 Water Treatment Facilities Augusta owns two Surface WTPs and three GWTPs, as summarized in Table 3-3. TABLE 3-3 Water Treatment Plants and Chlorination System Plants EPD Operating Permit No. CS2450000 Rated Capacity for Treatment of Raw Water <2012 Production of Treated Water (maximum day) Date of Original Construction Dates of Improvements Highland Avenue WTP Permitted to 60 mgd 60.0 mgd _48 mgd 1932 1949, 1954, 1987, 1994, 2000, 2002,2008 N. Max Hicks WTP 15.0 mgd _9_ mgd 2005 New Peach Orchard Road(GWTP No. 1) Original capacity of 10 mgd reduced to 5 mgd in 2001; the new GWTP No. 3 replaced lost capacity placed on reserve. 5.0 mgd 1.00 mgd 1966 1969, 1996 Highway 56 Loop (GWTP No. 2) 10.0 mgd 7.92 mgd 1979 1985, 1992, 1996 Little Spirit Creek (GWTP No. 3) 5.0 mgd 4.98 mgd 2001 Rural Chlorination System 2.7 mgd Operational Reserve only 1972 Each year since 1981 Totals 97.7 mgd 70.90 mgd The rural chlorination system is served by three wells identified as Brown Road, Plantation Road, and Kimberly-Clarke Wells; at each well there is a chlorine solution feed system for disinfection, a caustic soda solution feed system for pH adjustment, and fluoridation via addition of hydrofluosilicic acid. The Kimberly-Clarke well has been taken out of service and the other two wells placed on reserve and will be used only to meet critical demands. 3.4.1 Highland Avenue and NM Hicks WTP System Processes The following processes used by the Department are standard for similar water treatment systems and comply fully with regulatory requirements. Using this treatment technology results in treated water that complies with permit criteria and satisfies user demands for a high quality, reliable water supply. Attachment number 2 \nPage 21 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-7 Pre-Flash Mixing and Flow Splitting: Pre-treatment chemicals are added just downstream of the raw water venturi meter and control valve. These chemicals include chlorine, lime, and alum. Flocculation: Each sedimentation basins has dedicated flocculation basins. Sedimentation Basins: Flow into all sedimentation basins is not dedicated to specific filters. Settled water from all basins enters settled water flumes, all interconnected; sedimentation is independent of filtration. Filtration: dual-media filters of various sizes provide filtration. At the current rated capacity the filtration rate is < 4.0 gallons per minute (gpm)/ft2 with all filters in service. Each filter includes Leopold © under drains and cleaning systems. Post Flash Mixing: Post flash mixing occurs in a two-compartment basin, with each compartment having a pitched blade turbine mixer or static mixer. Post-treatment chemicals (fluoride, lime, phosphate, and chlorine solution) are added as the filtered water enters the mixer 3.5 Finished Water Storage, Chemical Feed Systems, and High Service Pumping Once the water is treated, distribution throughout the system requires high service pumping and storage in order to maintain a reliable, continuous supply for residential, commercial, and industrial customer uses. The systems described below are maintained at a level to provide operating pressures throughout the system that exceed EPD requirements of 35 pounds per square inch (psi) minimum line pressure. The Department generally maintains line pressures of 60 psi to 120 psi measured at remote fire hydrants located in residential areas. This pressure level is within AWWA guidelines, promotes high levels of customer satisfaction, and provides adequate pressures to support fire protection. 3.5.1 Finished Water Storage The Highland Avenue WTP finished water storage tanks (clearwells) supply the lower pressure zones directly by gravity while the remaining capacity is pumped to the Water System’s storage facilities located in various pressure zones. The treated water is then fed by gravity or pumped throughout the water distribution network. There are four clearwells at the Highland Avenue WTP, with a total storage capacity of 14.2 MG: Clearwell No. 2 – 3.0 MG Clearwell No. 3 – 5.0 MG Clearwell No. 4 – 1.6 MG Clearwell No. 5 – 4.6 MG Clearwell No. 2 was modified in 2000 to provide baffling for disinfection concentration and increased contact time (CT). This facilitates continued compliance with Safe Drinking Water Act (SDWA) regulations. The current configuration directs all treated water through Clearwell No. 2. Two 30-inch influent pipes were added in the 2000 WTP upgrade between the post flash mix basin and Clearwell No. 2. Several large diameter pipes connect Clearwell No. 2 with the three other finished water clearwells. Attachment number 2 \nPage 22 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-8 The NM Hicks Plant storage clearwells are two of 2.5M each gallons. All potable water is pumped out of the clearwells to the System. 3.5.2 Chemical Feed Systems The chemical feed system at the Highland Avenue WTP and NMHWTP have eight components including: liquid lime system; chlorination system with hypochlorite generation and bulk backup; polymer feed system; powdered activated carbon (PAC) system for taste and odor control; phosphate feed system for corrosion control in the Water System; liquid alum system; liquid fluoride system; and potassium permanganate slurry system for oxidation of iron and manganese. 3.5.3 High Service Pumping There are three sets of high service pumps at the Highland Avenue WTP: the Main high service pump station, the filter gallery pumps, and the auxiliary pumps plus the Stovall Booster Pump Station (BPS). An additional set of inline booster pumps is located at the Wrightsboro Road BPS. Table 3-4 lists each system’s pumping capacities in gpm, elevation of the pressure zone served (nominal mean sea level [msl], feet) and the difference in elevation the pumps must pump against (head, feet). The pressure zone is designated in elevation (ft msl) of the water surface in storage tanks serving the area when the water is at the full tank level. Reworking of the high service pumps is included as part of the Highland Avenue WTP improvements listed in Section 5. TABLE 3-4 Summary of High Service Pumping From To Head (ft) Location Elevation (msl) Elevation (msl) Total Dynamic Head (TDH) Flow (mgd) Stovall BPS 433 420 66 4.3 Aux. High Service Pump 433 564 173 11.7 Aux. High Service Pump 433 564 173 5.8 Aux. High Service Pump – Diesel 433 564 173 11.7 High Service Pump – Diesel 433 564 160 2.9 High Service Pump 433 564 160 8.1 High Service Pump – Backup 433 564 160 2.9 High Service Pump 433 564 160 5.0 Attachment number 2 \nPage 23 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-9 TABLE 3-4 Summary of High Service Pumping From To Head (ft) Location Elevation (msl) Elevation (msl) Total Dynamic Head (TDH) Flow (mgd) Main Pump 433 630 or 597* 310 1.8 Main Pump 433 630 or 597* 300 3.6 Main Pump 433 630 or 597* 300 3.6 Main Pump 433 630 or 597* 300 1.8 Wrightsboro Road Pump 564 630 100 1 Wrightsboro Road Pump 564 630 100 1.3 Wrightsboro Road Pump 564 630 100 1.3 *This station can pump to either pressure zone. 3.6 Water Distribution System The water distribution system includes approximately 1,350 miles of pipelines ranging in size from 6 inches to 36 inches in diameter. Most of the pipelines are made of cast iron or ductile iron (DI). Approximately 20 percent of these pipelines have been in service for 50 years or more. Augusta became a member of the Hundred Year Club of the Cast Iron Institute in 1956. Finished water is distributed from the Highland Avenue WTP by gravity and by pumping. Finished water is pumped using the Main Pump Station (MPS) Filter Gallery PS (FGPS), the Auxiliary High Service (AxHSPS) , and the Fort Gordon (FGPS). Gravity flow is used to supply the 417-ft msl gradient (Intermediate-North) and the 310-ft msl gradient (Low). The FGPS and the AuHSPS are used to supply the northern part of the system, which has pressure zone elevations of 564-ft msl and 500-ft msl. The FGPS is used to supply the western part of the Water System and can supply either the 597-ft msl system or the 630-ft msl system. The Wrightsboro Road PS was refurbished in 2000 to supply the 630-ft msl pressure zone from the 564-ft msl pressure zone. The new MPS supplies water to the western part of Augusta in the High (564’), Super High (620’) and the Adjusted High (500’) systems. The new NMHWTP supplies water to the southern portion of the distribution system that is historically known as the ground water distribution system, GWDS. The new plant is designed to supplement the supply of water to the same areas that were previously supplied by GWTP 1, 2 and 3, hence allow for the reduction of reliance on ground water. Finished water is pumped from GWTP No. 1 into the Intermediate-South pressure gradient (417 ft msl) and from GWTP No. 2 into the Pine Hill pressure gradient (457-ft msl). GWTP No. 3 pumps finished water into the Pine Hill high-pressure gradient (521-ft msl). Distribution system pump stations situated at various locations are used to feed isolated higher pressure zones. See Figure 3-3 for the locations of the distribution system pumping stations and associated pressure zones. Attachment number 2 \nPage 24 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-10 Water levels in the finished water clearwells at the Highland Avenue WTP and the system pressure requirement at the 417-ft msl gradient limits gravity flow from the clearwells into the 417-ft msl (Intermediate-North) pressure zone. Areas in the 417-ft msl (Intermediate- South) pressure zone not served from the Highland Avenue WTP are supplied from the NMHWTP. In addition to the pressure zones listed above, the distribution system contains several smaller pressure zones created by the significant variations in elevation throughout Augusta. These isolated pressure zones are fed using individual wells, BPSs, or pressure- reducing valves (PRVs) to meet the Department’s operating pressure requirements. A summary of pressure zones is presented in Table 3-5. Attachment number 2 \nPage 25 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-11 TABLE 3-5 Pressure Gradient Summary System Overflow Elevation (ft) Water Source Surface Water Distribution System Pressure Zones Super High 630 Fort Gordon PS or BPS from the 564 pressure zone High 564 High Service and Auxiliary High Service PS Adjusted High 500 PRV from the564 pressure zone Intermediate-North 417 Gravity or BPS from the 433 pressure zone Low 310 PRVs from the 433 pressure zone Groundwater Distribution System Pressure Zones High 597 BPS from the 417 pressure zone or the Fort Gordon PS Pine Hill High 521 GWTP No 3 Pine Hill 457 GWTP No 2 and Pine Hill Wells 1 and 2 Intermediate-South 417 NMHWTP and GWTP No. 1 or BPS from the 433 pressure zone In addition, the distribution system is equipped with several storage tanks and BPSs. A summary of the distribution system storage facilities for the surface water plants is presented in Table 3-6. A summary of the surface water system pumping facilities is presented in Table 3-7. TABLE 3-6 Surface Water Storage Facilities Location Location Elevation Pressure Systems Served Gallons Capacity Highland Ave WTP Clearwell 2 433 3,000,000 Highland Ave WTP Clearwell 3 433 5,000,000 Highland Ave WTP Clearwell 4 433 1,600,000 Highland Ave WTP Clearwell 5 433 4,600,000 Total Clearwells 433 All 14,200,000 Berckmans Road 417 417 500,000 Highland Ave Tank 564 564 500,000 Highpointe Tank 564 564 1,000,000 Walton Way Extension 500 500 750,000 Belair Road 630 630 1,000,000 Total Elevated Storage 3,750,000 Attachment number 2 \nPage 26 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-12 TABLE 3-7 Surface Water Pumping Facilities Location From To Head (ft) Rate (gpm) Summary of Surface Water System Pumping Stovall BPS 433 417 98 1,500 Aux. High Service Pump 433 564 168 8,000 Aux. High Service Pump – Future 433 564 0 Aux. High Service Pump – Future 433 564 0 Aux. High Service Pump -- Diesel 433 564 168 8,000 High Service Pump – Diesel 433 564 160 2,000 High Service Pump 433 564 160 5,600 High Service Pump – Backup 433 564 160 2,000 High Service Pump 433 564 160 3,500 Fort Gordon Pump 433 630 or 597 310 1,250 Fort Gordon Pump 433 630 or 597 300 2,500 Fort Gordon Pump 433 630 or 597 300 2,500 Fort Gordon Pump 433 630 or 597 310 1,250 Wrightsboro Road BPS 564 630 85 1,100 Wrightsboro Road BPS 564 630 85 1,100 Wrightsboro Road BPS 564 630 145 500 Total Surface Water Pumping 40,800 Table 3-8 presents a summary of the groundwater distribution system storage facilities. TABLE 3-8 Groundwater System Storage Facilities Location Elevation System Gallons Groundwater System Ground Storage GWTP No. 1 Clearwell 162 417 500,000 GWTP No. 2 Clearwell 128 457 1,000,000 GWTP No. 3 Clearwell 240 521 2,000,000 NMHWTP Clearwells Faircrest Avenue 220 436 417 597 5,000,000 5,000,000 Faircrest Avenue 417 597 500,000 Windsor Spring Road 417 417 500,000 Richmond Hill Road 417 597 500,000 Golden Camp Road 417 597 250,000 Algernon 417 417 2,000,000 Morgan Road 470 597 5,000,000 Cedar Ridge 417 521 1,000,000 Rose Hill 412 457 2,000,000 Wallie Drive 457 457 300,000 Total Ground 25,550,000 Groundwater System Elevated Storage Brown Road 521 521 3,000,000 Attachment number 2 \nPage 27 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-13 TABLE 3-8 Groundwater System Storage Facilities Location Elevation System Gallons Highway 56 457 457 500,000 Tobacco Road 597 597 500,000 Fairington Drive 597 597 250,000 Georgetown 597 597 500,000 Lumpkin Road 597 597 250,000 Old Waynesboro Road 521 521 500,000 Greenland Road 597 597 500,000 Total Elevated 6,000,000 Table 3-9 presents a summary of groundwater system pumping facilities. TABLE 3-9 Groundwater System Pumping Facilities Location From To Head (ft) gpm Summary of Groundwater System Pumping GWTP No. 1 – Pump 1 162 417 270 1,800 GWTP No. 1 – Pump 2 162 417 270 1,800 GWTP No. 1 – Pump 3 162 417 270 1,800 GWTP No. 1 – Pump 4 162 417 270 1,800 GWTP No. 1 – Pump 5 162 417 270 1,800 GWTP No. 2 – Pump 1 128 457 332 1,900 GWTP No. 2 – Pump 2 128 457 332 1,900 GWTP No. 2 – Pump 3 128 457 332 1,900 GWTP No. 2 – Pump 4 128 457 332 1,900 GWTP No. 2 – Pump 5 128 457 332 1,900 GWTP No. 3 – Pump 1 240 521 337 1,850 GWTP No. 3 – Pump 2 240 521 337 1,850 GWTP No. 3 – Pump 3 240 521 337 1,850 GWTP No. 3 – Pump 4 240 521 337 1,850 NMHWTP Pump 1 220 417 197 2,000 NMHWTP Pump 2 220 417 197 2,000 NMHWTP Pump 3 220 417 197 2,000 Morgan Road BPS 417 597 174 2,317 Morgan Road BPS 417 597 174 2,317 Cedar Ridge 417 521 100 1,000 Cedar Ridge 417 521 100 1,000 Brown’s Road BPS 417 521 130 1,400 Brown’s Road BPS 417 521 130 1,400 Brown’s Road BPS 417 521 130 1,400 Faircrest BPS 417 597 266 1,050 Faircrest BPS 417 597 266 1,050 Faircrest BPS 417 597 266 1,050 Faircrest BPS 417 597 266 1,050 Attachment number 2 \nPage 28 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-14 Rose Hill BPS 521 457 183 400 Rose Hill BPS 521 457 183 400 Rose Hill BPS 521 457 183 400 TABLE 3-9 (CONTINUED) Groundwater System Pumping Facilities Location From To Head (ft) gpm Richmond Hill BPS 417 597 260 1,050 Richmond Hill BPS 417 597 260 1,050 Norton Road BPS 433 417 59 1,375 Norton Road BPS 433 417 59 1,375 Norton Road BPS 433 417 65 1,800 Golden Camp BPS – Vertical 417 597 265 1,050 Golden Camp BPS 417 597 265 1,050 Golden Camp BPS 417 597 265 1,050 Golden Camp BPS 417 597 265 900 Total Groundwater Pumping 53,284 The distribution system delivers water to customers through meters at each point of service connection, which are read once per month for billing purposes. The 2011 ratio of non-billed water to purchased water or unaccounted for water (representing water that was lost because of unmetered usage or leaks), was approximately 12 percent (monthly average). This lost and unaccounted for water rate is not unusual for water systems of Augusta’s vintage. The significant number of older, large meters contributes significantly to this amount of unaccounted for water. The Department continues the process of replacing all older meters, including the smaller residential units. 3.7 Water Quality As a retail water system, Augusta is required to conduct appropriate testing of distribution system water quality. The results of this testing indicate that the Water System is in compliance with regulatory criteria. The system’s raw water supply has been of such high quality that it is considered ideal for the surface water treatment processes used by Augusta. See Section 3.9 on regulatory impacts for further discussion of water quality requirements. 3.8 Projected Water Demand During 2011, Augusta billed customers for approximately 14,421 million gallons of water. Table 3-10 presents the average daily water consumption, including unaccounted for water, and the number of customers by class. The Water System’s 10 largest customers are presented in Table 3-11; these customers represented 15.53 percent of 2011 sales.1 Total water sales for year ending December 31, 2011 were $37.443M. 1 No independent investigation has been made of the stability or financial condition of any of the customers listed in Table 3-11. Consequently, no definitive representation can be made as to whether such customers will remain major customers of the Water System. Attachment number 2 \nPage 29 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-15 TABLE 3-10 Water Demand 2011 Actual 2011 water consumption (million gallons)1 __________ Water Demand Average Daily (mgd) 39.5 Maximum Daily (mgd) 57.8 Number of Water Connections (December 31) Residential 63.266 Commercial and Industrial 7,896 Total 71,162 1Includes unaccounted-for water. TABLE 3-11 The 10 Largest Water Customers (for the 12-month period ending December 31, 2011) Ten Largest Water Customers Gallons Total Percentage of Customer Metered1 Billing Total Water Revenues Fort Gordon Muni Services 486,398 $1,301,965 3.48% Nutra Sweet 671,043 1,107,221 2.96 Augusta Select Tissue 221,095 591,471 1.58 Huron Tech 190,068 565,416 1.51 Medical College of Georgia 186,073 517,686 1.38 Amoco (Solvay) 190,672 510,307 1.36 Kendall 130,958 350,889 0.94 FPL Food, LLC 112,722 322,812 0.86 Veterans Administration Hospital 104,212 278,582 0.74 EKA Nobel 127,342 268,533 0.72 Total 2,420,583 $5,814,882 15.53% 1In thousands. Source: Augusta Utilities Department. Augusta’s projection of future water production needs is based on the County’s anticipated total population, including Fort Gordon’s on-base population.2 These future demands for Fort Gordon are included with the industrial customers in the 2010 through 2025 projections. EPD released its Water Conservation Plan Guidelines on May 24, 2004. The plan establishes benchmarks for water use efficiency statewide and voluntary and mandatory educational, regulatory, and financial conservation incentives were set forth. The utility’s compliance with the plan has resulted in a decline in per capita use from 154.0 to 152.3 gpcpd in 2011. It 2 The geographical distribution of population is not a factor in plant-level planning, but is important for planning water transmission. Attachment number 2 \nPage 30 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-16 is projected that per capita residential and commercial demands will fall an additional by 1.3 percent by the year 2025, from 154 gallons per capita per day (gpcpd) to 151 gpcpd. Table 3-12 presents Augusta’s 2003 and projected per capita, commercial and residential water usage in gallons per day (gpd). This usage rate is determined by dividing the estimated total water produced in 2003 to meet residential and commercial demand by the total population. This rate then includes both customer-billed usage and unaccounted for water. Industrial needs are presented separately because they are not directly linked to population growth. The projected annual average production in mgd and maximum day production are planning-level estimates (e.g. +/- 10 percent) of the future needs of the Department’s service area. TABLE 3-12 Historic and Projected Water Consumption 2003 to 2025 2003(H) 2010(H) 2020(P) 2025(P) Total Population 190,3951 200,5492 212,0052 216,9612 Per capita Water Usage, gpd (commercial and residential) 154 153 152 151 Industrial Usage, mgd (beyond 2003 includes 5 mgd allowance for Fort Gordon) 10.1 16.4 16.8 17.0 Annual Avg. Water Usage, mgd 37.6 47.1 49.0 49.7 Max. Day Water Usage, mgd3 52.7 67.8 70.7 71.9 1Source: U.S. Bureau of the Census, after adjusting for the on-base population of 7,752 at Fort Gordon, as estimated by the U.S. Bureau of the Census, 2000 Census. 2Population projections are from the Augusta-Richmond County Comprehensive Plan 2008, but exclude the estimated on-base population at Fort Gordon. 3Maximum day projections are based on a residential peaking factor of 2.04, a commercial peaking factor of 1.2, and an industrial peaking factor of 1.0. These factors assume a current long-term average peaking factor of 1.5 system-wide. The system-wide peaking factor will fluctuate over time as industrial and non- industrial sectors grow at different rates. While the Department is taking actions to encourage conservation, it should be noted that the development pattern and population distribution will also affect per capita water consumption. For example, more dense development generally results in lower per capita demands, as outdoor watering is limited due to smaller lot sizes. Conversely, low-density development, including estate-sized lots, tends to result in more outdoor watering and consequently higher per capita demands. Projected residential and commercial water use is directly related to population growth. Industrial needs, however, generally are independent of population growth. It is assumed that current industrial water use, exclusive of conservation, will increase by 5 percent over the planning period (2003 through 2025). In addition to the current industrial demands, Fort Gordon is purchasing all its water from the utility. These future Fort Gordon demands are projected to be 5.0 mgd. Table 3-13 summarizes projected water usage by customer class. The peaking factor for industrial usage is assumed to be 1.0; in other words, maximum day and average annual needs are assumed to be, for analytical purposes, equal. Commercial consumption is expected to have a maximum day peaking factor of 1.2 times average day Attachment number 2 \nPage 31 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-17 demand. Based on long-term trends, the system-wide peaking factor is assumed to be 1.5. All additional peak day needs are assumed to be associated with residential consumption. The peak demands associated with residential consumption were calculated to be 2.04 times average daily demands. These peaking factors are employed to determine the peak day requirements for capacity sizing in the Department’s facilities. System-wide, the peaking factor will change over time as the industrial demands grow at a different rate than non- industrial demands. The projected population and proportion of water accounts connected to the water system were considered to estimate future water needs. 2010 Census projections are within 1% of the projections used in the previous Capital Improvement Plan. Consequently, we used the previous information with the knowledge that the limited number of projects covered by this Plan that were previously planned for in the 2002 Master Plan 2010-2015 CIP needs list are still valid. The population of Richmond County is expected to increase from 198,149 persons in 2003 to 230,155 persons by 2025. This growth, combined with additional demands of 5.0 mgd from Fort Gordon, means average annual water demands are expected to increase from 39.5 mgd to 49.8 mgd (74.7 mgd, maximum month). The current withdrawal permits for raw water from the Savannah River will be sufficient to meet surface water supply needs for both facilities, as discussed in Section 5. TABLE 3-13 Historic and Projected Water Usage by Customer Class 2003 to 2025 Class 2003(H) 2010(H) 2020(P) 2025(P) Residential Avg. Annual Water Usage 16.6 17.3 18.2 18.5 Max. Day Water Usage (Peaking factor: 2.04) 1 33.7 35.3 37.1 37.7 Commercial Avg. Annual Water Usage 12.8 13.4 14.1 14.3 Max. Day Water Usage (Peaking factor: 1.2) 1 15.3 16.1 16.9 17.2 Industrial Avg. Annual Water Usage 8.2 16.42 16.82 17.02 Max. Day Water Usage (Peaking factor: 1.0) 1 8.2 16.42 16.82 17.02 System-wide Avg. Annual Water Usage 37.6 47.1 49.0 49.8 Max. Day Water Usage 1 52.7 70.7 73.4 74.7 1Peaking factors assume a current long-term average peaking factor of 1.5 system-wide. The system-wide peaking factor will fluctuate over time as industrial and non-industrial sectors grow at different rates. 2Includes Fort Gordon demands of 5.0 mgd. 3.9 Regulatory Impacts The Department has responded to the challenges of the 1996 Amendments to the SDWA and is in compliance with all applicable rules. However, drinking water regulations have recently been changed, imposing still more stringent regulations, with additional regulations planned for the near future. These recently promulgated and planned SDWA Attachment number 2 \nPage 32 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-18 regulations will have an impact on Augusta’s drinking water treatment plants and distribution system. The Department has taken a proactive approach for compliance with existing and proposed regulations by developing water quality goals that are more stringent than current regulations. These water quality goals have positioned the Department to meet future regulations. Drinking water regulations that impact the Department can be divided into two categories: Existing regulations Future regulations The following is a brief discussion of each category and the impact on the Department drinking water system. 3.9.1 Existing Regulations EPD has issued rules (Rules and Regulations of the Department of Natural Resources [DNR], Chapter 391-3-5- Safe Drinking Water) to establish policies, procedures, requirements, and standards for implementing drinking water regulations. 3.9.1.1 Surface Water Treatment Rule The Surface Water Treatment Rule (SWTR), promulgated in 1992, establishes treatment techniques instead of maximum contaminant levels (MCLs) for the control of Giardia, viruses, heterotrophic plate count (HPC) bacteria, and Legionella. The SWTR required all water systems to maintain a filtered water turbidity of 0.5 Nephelometric Turbidity Unit (NTU) and to provide a minimum level of inactivation of Giardia and viruses by maintaining adequate contact time with the primary disinfectant. In addition, the SWTR required all water systems to maintain a detectable chlorine residual in the distribution system. The Department is currently in compliance with all of the SWTR requirements. 3.9.1.2 Total Coliform Rule The Total Coliform Rule was promulgated on June 29, 1989. Total coliforms include both fecal coliforms and E. coli. Compliance with the Coliform Rule is based on the results of sampling in the distribution system. The frequency and number of collected samples are a function of the system size (number of people served). The Department has maintained compliance with the Total Coliform Rule by (1) maintaining adequate distribution system disinfectant residual and (2) frequently flushing low flow areas. 3.9.1.3 Primary Contaminants EPD currently regulates a list of 83 contaminants that includes inorganic and organic compounds. These contaminants do not occur at concentrations of concern in most surface waters that are not subject to contamination. Surface waters used by the Department, from the Savannah River, have concentrations of regulated contaminants well below Environmental Protection Agency (EPA) prescribed limits. 3.9.1.4 Lead and Copper Rule On June 7, 1991, the EPA published Action Limits (ALs) and national primary drinking water regulations for lead and copper. Under this regulation, lead and copper levels must not exceed ALs of 0.015 mg/L and 1.3 mg/L, respectively, in 90 percent of the samples Attachment number 2 \nPage 33 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-19 collected. Actions required for AL exceedances include collecting source water samples, conducting public education, conducting a corrosion control study, and establishing a corrosion control program. This rule also requires that lead and copper be monitored at consumers’ taps every 6 months. Samples at consumers’ taps must be taken at high-risk locations, which include homes with lead solder installed after 1982, lead service lines, and lead interior piping. Revisions to the Lead and Copper Rule were promulgated in April 2000. The revisions reduced the frequency of monitoring required for low lead and copper tap levels and updated the analytical methods used for analyzing lead and copper levels. The Department currently controls the corrosivity of its finished water by adding a phosphate-based corrosion inhibitor. The Water System has continuously been in compli- ance with the lead and copper ALs. 3.9.1.5 Risk Management Plans (RMPs) The EPA set a deadline of June 21, 1999, for all utilities that store hazardous chemicals (including chlorine gas) above a specified threshold limit, to prepare a risk management plan (RMP). The regulation outlines requirements for preventing or minimizing the conse- quences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals. The threshold level for chlorine is 2,500 pounds. The RMP must include evaluations of buildings and equipment to protect the safety of workers around chlorine facilities and to develop an emergency response plan if a leak occurs. Key information developed must be submitted to EPA and posted on the Internet for public access. The Department has prepared an RMP for the Highland Avenue WTP. In addition, the Department is improving the existing safety program that provides guidance to operators on correct chlorine operations and maintenance procedures and the emergency response plan to be used if there is a leak. The Department has installed on-site chlorine generation at the Highland Avenue WTP and the new Hicks WTP to eliminate safety and security concerns associated with chlorine gas. 3.9.1.6 Residuals Management The State of Georgia currently prohibits the direct discharge of water treatment residuals to a receiving stream. A National Pollutant Discharge Elimination System (NPDES) permit is required which specifies an acceptable pH and total suspended solids (TSS) concentration for the discharge of any waste or decant stream from WTPs. The Highland Avenue WTP is currently discharging all of the waste streams to Turknett Pond. An NPDES permit was obtained by the Department to allow discharge of decant from the Turknett Pond. Settled sludge in the pond is dredged when needed by the Department. The NMHWTP discharges its waste stream to the J B Messely WPCP 3.9.1.7 Interim Enhanced Surface Water Treatment Rule (IESWTR) The IESWTR was promulgated in December 1998 and established a 2-log Cryptosporidium removal requirement for filtered systems. Under this rule, conventional treatment is assumed to meet the Cryptosporidium removal requirement by maintaining 95 percent of the time a filtered turbidity of 0.3 NTU, and at no time exceeding 1.0 NTU. The IESWTR also requires individual filter monitoring and additional requirements related to distribution system tank covers. Attachment number 2 \nPage 34 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 3-20 The Highland Avenue WTP and NMHWTP are in compliance with the IESWTR requirements. 3.9.1.8 Disinfectants and Disinfection Byproducts (D/DBP) Rule – Stage 1 Stage 1 D/DBP Rule limits resulted in maximum contaminant level (MCL) requirements shown in Table 3-14. The Department took these requirements into consideration for both its upgrade of the Highland WTP and for the N. Max Hicks WTP. 3.9.1.9 Filter Backwash Rule The Filter Backwash Rule applies to all systems that use conventional or direct filtration and that recycle spent filter backwash water. The NMHWTP does not practice recycling. The NMH WTP discharges all produced waste streams, including backwash, to the James B. Messerly Water Pollution Control Plant (WPCP). Therefore, the Filter Backwash Rule is not expected to have any impact on the existing water plants. 3.9.1.10 Arsenic Rule The Arsenic Rule was promulgated on January 22, 2001. This rule established an MCL of 0.01 mg/L. The Arsenic Rule applies to both Community and Non-Transient, Non- Community Water Systems. Systems were required to meet this requirement by January 2006. Despite the new lower limit, it is not anticipated that the arsenic regulations will have an impact on AUD. Arsenic is not expected to occur at concentrations of concern in the surface water supply. 3.9.2 Future Regulations The EPA is currently in the process of developing additional regulations related to microbial and disinfection byproducts. The planned regulations are being developed as a follow up to the IESWTR and Stage DBPs. TABLE 3-14 Summary of Stage 1 D/DBP Rule Limits Final Stage 1 MCLs Final Stage 1 Maximum Residual Disinfectant Levels Total Trihalomethanes (TTHMs): 80 micrograms per liter (g/L) Free Chlorine: 4.0 mg/L as Cl2 Haloacetic Acids (HAA5): 60 g/L Chloramine: 4.0 mg/L as Cl2 Bromate: 10 g/L Chlorine Dioxide: 0.8 mg/L as ClO2 Chlorite: 1.0 mg/L Attachment number 2 \nPage 35 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 4-1 Wastewater System 4.1 Overview of Wastewater System The Wastewater System customer population, as of Dec 31, 2011, was comprised of 51,528 residential and 6,130 commercial and industrial customers. The Wastewater System consists of two WPCPs with an aggregate permitted treatment capacity of 48.34 mgd and a collection system comprised of 29 pumping stations and approximately 700 miles of collection sewers. The Wastewater System provides sewer services to an area of approximately 106 square miles with an estimated population in excess of 150,000. Figure 4-1 shows the areas currently served by the Wastewater System with overlays of wastewater collection lines and the location of the WPCPs. Augusta has the non-exclusive right to provide water and wastewater service within the County including Ft Gordon. The wastewater systems of the Cities of Blythe and Hephzibah provide wastewater service within those jurisdictions in the County. The Department’s service area includes all or parts of eight drainage basins shown in Figure 4-2. Ft Gordon is connected to the Spirit Ck Sewer Attachment number 2 \nPage 36 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-2 4.2 Wastewater Collection and Conveyance Augusta’s wastewater collection system dates from storm water drains constructed in downtown Augusta prior to 1900. Over time, wastewater was diverted into the storm water drains, and Augusta’s downtown storm water drains evolved into a combined storm water and wastewater collection system. Until 1968, this system emptied into the Phinizy Ditch/ Swamp without treatment. In the 1970s to late 1990s, Augusta eliminated all known combined sewers by constructing trunk wastewater mains to keep wastewater separate from storm water.3 Augusta’s wastewater collection and conveyance system consists of 8 drainage basins, 29 wastewater pumping stations, and approximately 700 miles of collection pipes which transport sanitary sewage. Approximately 80 percent of the wastewater collection system is drained by gravity; the remainder requires pumping at least once. The wastewater collection system includes pipes ranging in size from 8-inch to 84-inch diameter. Approximately 20 percent of the wastewater collection system has been in service for 50 years or more. The wastewater collection system includes standby pumps and a standby power system. 3 It is possible that undocumented interconnections of the two systems were not eliminated and remain. As a result, the Department has an ongoing program to verify complete separation of the storm water drain and wastewater collection systems. Attachment number 2 \nPage 37 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-3 The piping in the wastewater collection system was constructed using a wide variety of materials, including clay, brick, concrete, iron, and polyvinyl chloride (PVC), that create significant problems for maintenance of the system. The ongoing system evaluations of the Spirit, Butler, and Rocky Creek basins have identified significant infiltration and inflow (I/I) rates. An estimated 10 percent of current wastewater flows are contributed by I/I. Rehabilitation is underway for portions of these basins and further CIP projects identified in Section 5 but significant reduction of I/I will be addressed mainly by the Department’s ongoing I/I operation and maintenance program. 4.3 Wastewater Treatment Facilities Augusta owns two WPCPs as summarized in Table 4-1. TABLE 4-1 Wastewater Treatment Plants Owned by Augusta 2011 Treated Wastewater WPCP Permitted Treatment Capacity (Monthly Avg, mgd) Date of Original Construction Average Day (mgd) Maximum 7-Day (mgd) Dates of Improvements Receiving Stream James B. Messerly WPCP 46.1 1968 28.34 48.70 * 1976, 1984, 1995, 1997, 2001, 2010 Butler Creek Spirit Creek WPCP 2.24 1988 1.45 3.52 * 1995 Spirit Creek Totals 48.34 29.79 55.20 *Excessive flows resulted from major I/I into collection systems following significant rainfall. The J. B. Messerly WPCP constructed in 1968, was originally designed to provide only pri- mary treatment. Later, in 1975, a brush aerator fitted oxidation ditch was constructed to provide secondary treatment capacity of approximately 23 mgd. In 1984, the North Plant was constructed with a design capacity of 28.4 mgd. Flow equalization basins were added in 1995. In 1997, due to more stringent nitrogen removal limits, the facility had to use its future BOD aeration capacity to biologically remove the nitrogen and the first stage of a wetlands system was constructed to assist with the ammonia-nitrogen removal goal. In 1998 to 2001, the second stage of the wetlands system was completed along with the first phase of various retrofit projects to significantly improve plant performance. These retrofits included improvements to secondary clarifiers, primary clarifiers, sludge pumps, and various mech- anical and electrical systems throughout the plant. In 2002, the third stage of the wetlands system was completed and the second phase of retrofit projects initiated. These retrofit projects were successfully completed. In 2004, the final retrofit projects were completed. The success of the entire retrofit program that was started in 2001 is evidenced by the WPCP’s performance that, for the last twelve years, has maintained compliance with its operation permit. The J. B. Messerly WPCP receives domestic wastewater from the surrounding community as well as significant flows (1,602 million gallons in 2011) from 10 major industrial contribu- Attachment number 2 \nPage 38 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-4 tors. The J. B. Messerly WPCP was originally rated, based on “normal strength” wastewater, to have a treatment capacity of 46 mgd, and is currently permitted for a capacity of 46.1 mgd (monthly average). The influent strength of the wastewater has increased over the years as a result of additional industrial waste and reduction in collection system I/I. This increased organic loading, as well as the lower limits on ammonia nitrogen discharges, and expected phosphorus limitations, has shifted the usage of aeration capacity to nutrient removal and had reduced the Plant’s effective capacity. Recently completed upgrades to the treatment process and plant hydraulics have restored the full capacity of the J.B. Messerly WPCP and also addresses future permit compliance. The Department’s improvements to the wastewater treatment system maximized use of existing plant components and increased the level of reliability in meeting stringent effluent limits. The J. B. Messerly WPCP discharges under NPDES Permit GA0037621, which was issued in 1996, was modified in January 2002,. This permit expired in June of 2006 but has been administratively continued by the Georgia EPD pending resolution of issues regarding low dissolved oxygen levels in the Savannah Harbor. EPD has made the decision to not re- issue any permits in the Savannah River basin until these issues are resolved Table 4-2 presents the plant’s permit information. TABLE 4-2 J. B. Messerly WPCP Effluent Limitations Parameter Discharge Limitations Monthly Average Weekly Average Flow – m3/day (mgd) 174488 (46.1) 218016 (57.6) BOD 5-day – mg/l (kg/day) 10 (1,747) 15 (2,184) TSS – mg/l (kg/day) 30 (5243) 45 (6551) Ammonia as N – mg/l (kg/day) 1.5 (262) 2.25 (328) Fecal Coliform Bacteria 200/100 ml 400/100 ml Total Residual Chlorine – mg/l 0.013 0.013* * Daily maximum limitations m3/d cubic meters per day ml milliliters mg/l milligrams per liter kg/day kilograms per day mgd million gallons per day The Spirit Creek WPCP treatment process consists of preliminary treatment shredding and screening, secondary treatment in aerated lagoons, disinfection, and polishing lagoons. The Spirit Creek WPCP discharges under NPDES Permit GA0047147, issued in 1999, which expired in October 2004 and has been administratively continued by Georgia EPD pending resolution of issues regarding low dissolved oxygen levels in the Savannah Harbor. EPD has made the decision to not re-issue any permits in the Savannah River basin until these issues are resolved. The “James B. Messerly Wastewater Treatment Master Plan” completed in 2003, also delineates needs of the Spirit Creek WPCP. Table 4-3 presents the plant’s permit information. Attachment number 2 \nPage 39 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-5 TABLE 4-3 Spirit Creek Effluent Limitations Parameter Discharge Limitations Monthly Average Weekly Average Flow – m3/day (mgd) 8,478 (2.24) 10,598 (2.80) BOD 5-day mg/l (kg/day) 30 (255) 45 (318) TSS mg/L (kg/day) 30 (255) 45 (318) Ammonia as N mg/l (kg/day) 17.4 (148) 26.1 (185) Fecal Coliform Bacteria 200/100 ml 400/100 ml Total Residual Chlorine mg/l 0.24 0.24* * Daily maximum limitations m3/d cubic meters per day ml milliliters mg/l milligrams per liter kg/day kilograms per day 4.4 Projected Wastewater Flows The projected population and proportion of water accounts connected to the wastewater system were considered to estimate future wastewater flows. 2010 Census based projections are not yet available. However, Census results for 2010 were within less than 1% of the projections used in the previous Capital Improvement Plan for 2010. Consequently, we used the previous projections with the knowledge that the limited number of projects covered by this Plan were planned for in the 2002 Master Plan 2010-2015 CIP needs list are still valid due to the small deviation from actual to projected values. WPCP service area population projections were constructed by allocating population by tract estimated in the 2000 Census to WPCP service area. Population projections for the service areas were then developed by assuming that those Census tracts that have experi- enced population growth will continue to do so, and will represent the same share of the total population increase projected for growing tracts. This population increase will come from either population growth or from population shifts within the County. For tracts with declining population, the rate of decline is projected to remain stable through the planning period. The estimated proportion of households connected to the Wastewater System was estimated using the proportion data available from the 1990 Census4, with adjustments made to reflect growth in the systems since 1990. This proportion is expected to continue to change over time as new residences and businesses, as well as some portion of the residences not served currently, connect to the Wastewater System. Using an assumption that per capita and per employee wastewater flows will remain constant over the forecast period, residential and commercial wastewater flows are assumed to grow in proportion to the growth in the population connected to the Wastewater System. 4 The 2000 Census did not collect information on the source of wastewater disposal. The 2010 Census has not reported this information. Attachment number 2 \nPage 40 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-6 Table 4-4 presents the population and percentage change in population receiving sewer service, as well as projected annual average flows and maximum month flows. The maxi- mum month flows are based on the historical relationship between annual average flows and maximum month flow at the J.B. Messerly WPCP, as well as the expected relationship at Spirit Creek after the completion of the major I/I improvements in its collection system. The Spirit Creek WPCP has treated a maximum of 2.2 mgd after 2005 since the Spirit Creek Pump Station project was completed with the remainder of flows in this collection system going to the JBM WPCP. Section 5 further describes the project. TABLE 4-4 Wastewater Flows (mgd)1 2003 to 2025 H=Historic, P= Projection 2003(H) 2010(H) 2020(P) 2025(P) Total WPCP Flows Sewered Population 149,683 168,908 182,576 191,008 Percent Change 11.28% 8.1% 4.62% Average Annual Flow (mgd) 38.00 32.86 42.89 44.62 Max. Month Flow 2(mgd) 59.00 64.60 52.33 54.44 1 The figures presented in this table will be impacted by changes to the overall level of I/I in the WPCP service areas. 2 The maximum month flows are 122 percent of the annual average flows based on historical relationships. The combined volume of the 10 largest customers represented 19.14 percent of 2011 sales. The 10 largest wastewater customers of the Wastewater System are presented in Table 4-5. No independent investigation has been made of the stability or financial condition of any of the customers listed in Table 4-5. Consequently no representation can be made as to whether such customers will continue as major customers. TABLE 4-5 10 Largest Wastewater Customers, (for the 12-month period ending December 31, 2011) Customer kgal Metered Annual Billing (based upon water consumption plus additional sewer surcharges) % of Total Sewer Revenues NUTRA SWEET 378,405 $2,375,350 6.34% Augusta Select Tissue 195,952 715,169 2.47 Amoco (Solvay) 116,619 686,632 2.06 FPL Food, LLC 127,342 545,027 1.90 EKA Nobel 211,413 527,781 1.34 Kendall 130,958 413,845 1.31 Medical College of Georgia 190,068 393,478 1.28 Veterans Administration Hospital 100,424 346,274 0.94 ELANCO AUG TECHNOLOGY 71,009 275,556 0.83 Proctor and Gamble 80,284 245,049 0.67 Total 1,602,474 $6,524,161 19.14% Attachment number 2 \nPage 41 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-7 4.5 Regulatory Impacts The Augusta Utility Department (AUD) Wastewater System is subject to a broad array or regulatory requirements. The following regulatory issues affecting the Wastewater System are discussed below: Watershed Management Total Maximum Daily Load (TMDL) Development NPDES Permitting and Nutrient Management Onsite Septage Systems Residuals Management and 503 Regulations General Permit for Stormwater Discharge Associated with Industrial Activity Stormwater Pollution Prevention Plans (SWP3s) Spill Prevention, Control, and Countermeasures Plan Municipal Stormwater Discharge Permit Security and Vulnerability 4.5.1 Watershed Management The EPD has formulated a policy to require municipalities to conduct watershed assessments and develop watershed management programs to address non-point pollution sources. These studies are required to acquire or renew NPDES discharge permits and/or to modify or renew surface water withdrawal permits. In addition, EPD requires Source Water Assessment Plans (SWAP) for water supply watersheds to assess the potential for water supply contamination. The Department has acted proactively and completed a watershed assessment for the County area that drains into the Savannah River. Simultaneously, AUD completed a SWAP for the Savannah River watershed upstream of the current water intake. Recommendations for source water protection will be developed in the next phase of study, as required by the SDWA. Addressing these issues early better positions AUD to address watershed protection and maintain a “partnership” position with the Georgia EPD. 4.5.2 Total Maximum Daily Load Development The Clean Water Act (CWA) provides a trigger mechanism for requiring development of total maximum daily loads (TMDLs) when a water body does not meet water quality standards. When setting a TMDL, the regulatory agency must consider the designated uses of the water body, water quality standards, various pollutant sources, and the ability of the water body to assimilate pollutants. The State of Georgia has a court-mandated schedule for development of TMDLs that is the most aggressive in the country. The proposed TMDLs for the Savannah River basin have been difficult to develop. The TMDLs for the Savannah River impact two competing States taking longer to implement the requirement. The current 303d list of impaired water bodies lists fecal coliform, dissolved oxygen (DO), and metals as the water quality parameters not meeting standards in portions of the Savannah River basin. Augusta, and other parties that discharge to the Savannah River, and EPD are in discussions with EPA on a final TMDL and wasteload allocations that will allow the dischargers to meet the TMDL. Attachment number 2 \nPage 42 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-8 4.5.3 NPDES Permitting and Nutrient Management The NPDES is a federal program for regulating the discharge of pollutants to the waters of the United States. In Georgia, the EPD has been delegated the authority to administer the program. EPD has adopted a “zero tolerance” policy for permit violations and is imposing penalties or issuing Consent Orders specifying actions that the permittee must take when violations occur. Augusta facilities were not designed with a “zero tolerance” perspective, and therefore do not have the level of redundancy that would be included in a facility designed today. Although operational excursions and facility bypasses are expected to be infrequent, Augusta’s infrastructure is being continuously upgraded with projects to prevent overflows and bypasses, retain pollutants, and upgrade treatment capabilities to enhance the ability to achieve 100 percent compliance with permit conditions. Many of the CIP projects are defined in Section 5. As a result of interstate discussions on water resources, EPD decided to mandate maximum retention of a community’s water consumption to minimize the amount of water lost. This will require AUD to continue efforts to rehabilitate system facilities, including replacement of some major lines. EPD is working on the implementation strategy and policy now. Permit conditions may change to restrict the consumptive retention of water, which may in turn necessitate the elimination of onsite septage systems where feasible and a revision to the water pricing structure. EPA’s Capacity, Maintenance, Operation, and Management, also referred to as CMOM, program will require increased accountability for operation and maintenance of wastewater collection systems. This proposed program has been in development for several years, and has been undergoing federal administrative review since January 2000. It is anticipated that when the CMOM program is implemented, it will use NPDES permits as the enforcement vehicle. AUD has begun implementation of elements of the CMOM requirements. Currently, the State of Georgia requires nutrient removal generally in basins where water quality in lakes downstream of a discharge are found to be adversely impacted by the discharge. EPD has a schedule for development and implementation of nutrient water quality criteria for rivers and streams and for estuaries and coastal waters, and these criteria could impact discharges from Augusta’s system. 4.5.4 Onsite Septage Systems The design of septage systems is regulated by the Georgia Department of Health (Georgia Code Chapter 290-5-26). Local jurisdictions establish minimum lot requirements for septage systems and requirements for connection to a central wastewater collection system. With the increasing emphasis on minimizing water consumption and water quality issues in watershed management, it will be necessary to evaluate policies related to septage systems and prepare for an expanded role for central wastewater collection systems in the future. Augusta has adopted a policy to mandate conversion to central wastewater collection when service is available and has implemented a program to extend service to new customers who recently were availed of sewer service infrastructure. This policy and program will limit the potential impacts of pending regulations related to onsite septage systems. Attachment number 2 \nPage 43 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-9 4.5.5 Residuals Management and 503 Regulations The EPA mandates that wastewater residuals be managed in compliance with its 503 regulations. Since 1993, these regulations have required that utilities obtain 503 permits and provide annual documentation of compliance with regulatory requirements. The 503 regu- lations identify different classes of sludge and mandate minimum practices for treatment, handling, and disposal of each class of sludge. General Permit for Stormwater Discharge Associated with Industrial Activity. In 1993, EPD issued NPDES Permit 000000 – Authorization to Discharge Under the National Discharge Elimination System Stormwater Discharges Associated with Industrial Activity. This permit requires properties with certain activities – those included in a specific list of SIC Codes—to file a Notice of Intent for coverage under the permit and to prepare and maintain an SWP3 and a Spill Prevention, Control, and Countermeasures Plan (SPCCP). In 1998, EPD issued a new general permit, GAR000000, and mandated that any entity with the intent to use that general permit would have to update its plans and conform to the new requirements of the permit. The Department has updated and modified all SWP3s to conform to the additional conditions in the 1998 storm water permit, and identify new locations which might be subject to an SWP3. EPD issued a new General Permit for Industrial Activity on April 16, 2012. 4.5.6 Stormwater Pollution Prevention Plan (SWP3) As part of the compliance requirements for the General Permit for Industrial Activity, EPD requires that covered properties prepare a SWP3. This plan describes the stormwater discharge points, the potential pollution sources on the site and the material handling and housekeeping practices used to prevent contamination of stormwater runoff. EPD has issued a general stormwater permit that can be used by any location wishing to conform to the permit conditions, as opposed to applying for a site-specific permit. During the original round of storm water permit issuance, AUD has complied with the general conditions for its storm water permitting. 4.5.7 Spill Prevention, Control, and Countermeasures Plan (SPCCP) The EPA, through 40 Code of Federal Regulations (CFR) Part 112, mandates that an SPCCP be prepared for any facility or location where one of several oil-based material storage thresholds are exceeded: any tank of 660-gallon capacity or greater; 1,320 gallons of total onsite storage; or a 20,000-gallon underground tank of petroleum-based product. This requirement is administered by EPD through the General Permit for Stormwater Discharges Associated with Industrial Activity. In addition to the SWP3, any facility meeting the material storage triggers listed above must prepare an SPCCP. An SPCCP provides documentation on oil-based products and specifies reporting and documentation requirements for best management practices (BMPs). AUD has implemented a formal inspection of all system facilities and documented the tanks and quantities of oil-based products stored onsite. This review either (1) identified those Attachment number 2 \nPage 44 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND WASTEWATER REVENUE BONDS, SERIES 2014 4-10 locations that need an SPCCP or, (2) if no SPCCP was required, satisfy the regulatory requirements. The Department also prepared a statement for each facility as to whether that facility needs an SPCCP and what basis was used to determine the applicability of the SPCCP requirement for each facility. 4.5.8 Municipal Storm Water Discharge Permit EPD currently requires municipalities with populations over 100,000 (Phase 1 communities) to obtain an NPDES permit to operate a Municipal Separate Storm Sewer System (MS4). In 2003, a general permit was prepared (Phase 2 Regulations), which covers communities in other “urbanized areas.” Each Phase 2 community, including Augusta-Richmond County, is required to submit a Notice of Intent to be covered by the general permit, and must implement a stormwater management program that addresses the six “minimum control measures” of the MS4 program: Public education and outreach Public participation/involvement Illicit discharge detection and elimination Construction site runoff Post-construction runoff control Pollution prevention/good housekeeping The stormwater management program was phased in over the initial 5-year permit period. AUD has complied at its facilities, but it is not the Augusta city department tasked with developing and enforcing the plan to comply with stormwater discharge permit regulations. Attachment number 2 \nPage 45 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-1 Proposed System Capital Improvement Plan The Water and Sewerage Revenue Bonds, Series 2004, 2007 and 2012, were used to fund subsequent phases of the Department’s 10-year CIP initiated in 2000. Proceeds assisted in eliminating System deficiencies, meeting then current and future regulatory requirements, and accommodating future demands related to system growth. Construction associated with the 2004 Program was completed in 2010. The 2014 Bonds will be issued to qualify for the 3-year spending period provided for in the Treasury Regulations. The strategy for meeting 2025 water needs defined in Table 3-12 requires surface water as the primary water source. This required expansion and modification of the Highland Avenue WTP to assure sustained operational capacity of 60-mgd in addition to the new Hicks WTP 15-mgd first phase to ultimately replace GWPT1 and reduce the amount of ground water used. Upon completion of the Hicks facility, the usage of some wells serving GWTP No. 1 was reduced. The system then had a total production capability of 75 mgd from surface water supply and a reserve capacity of 10 mgd available from GWTPs. This will meet additional demand while minimizing reliance upon groundwater supply. Future expansions of the Hicks WTP will reduce groundwater reliance further even as demand growth continues. 5.1 Planning Criteria and Assumptions AUD’s Master CIP planned for needs through 2025. It uses a number of planning criteria for identifying the facilities necessary for the System. Recommendations of the Master Plan 2000, dated February 2000, were updated in the Water & Sewerage Revenue Bonds, 2002, 2004 2007 and 2012 Engineering Reports. The Technical Memoranda (TMs) included in the Master Plan 2000 document a baseline approach to evaluating the System facilities with respect to water demands, wastewater conveyance needs, and treatment requirements. Because some of the projects addressed by this CIP were part of previous planning documents, we have not re-addressed the criteria. However, some projects address requirements of Consent Agreements with the Ga. EPD and others address improvements to better distribute potable water and improve water quality. We know that the: Population in Augusta is shifting from developed areas to undeveloped areas where water and sewer services were previously unavailable. Water and wastewater system demand will increase as the population grows in Augusta. Projected water demands for the design year of 2025 are for average day demand of 49.8 mgd and maximum day demand of 74.7 mgd. Wastewater flow projections are for an average daily flow of 44.62 mgd and a maximum month flow of 54.44 mgd. Water and wastewater treatment improvements and expansions must be planned for compliance with all current regulatory requirements, as well as changes to these requirements that are anticipated in the next 5 years. Attachment number 2 \nPage 46 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-2 A significant number of the CIP projects defined in the Water and Sewerage Revenue Bonds, Series 2002, Series 2004, Series 2007 and Series 2012 Engineer’s Report have been completed. Others require additional funding from the Series 2014 Bond Issue. Figures 5-1 and 5-2 indicate the projects totally or partially funded under previous bond programs. The CIP projects planned for the 2014 Bond Issue Capital Program are discussed in the following paragraphs. Figure 5-1 Attachment number 2 \nPage 47 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-3 Figure 5-2 5.2 Cost Opinions for Recommended Projects A cost opinion was prepared for each of the recommended projects to establish initial construction budgets for projects to be funded by the Series 2014 Bonds. The cost opinions also include, as indirect costs, engineering and other technical services. Other designated projects may include only construction costs. The cost opinions were prepared using recent construction costs from similar projects in the Augusta area and the State of Georgia. The cost opinions were based on recent design engineering estimates or inspection of facilities, projections of equipment and facility needs, experience with similar projects, and manufacturer prices for recommended equipment. By necessity, some project cost opinions were developed in advance of detailed engineering work including preparation of specifications and detailed design drawings. For these projects, all of the required information concerning the nature and full scope of the project has not yet been obtained so cost opinions are based upon similar facilities recently constructed in this area. Rehabilitation of an existing facility may encounter a variety of unforeseen factors that can affect project costs and schedules. Examples of these factors include: contaminated soils, inaccurate piping and duct bank location drawings, concealed conditions in existing construction, and incomplete demolition of former structures (or abandoned in place rather than removed as shown on the record drawings). For this reason, contingencies were included to cover unforeseen costs. Cost opinions also include cost values for construction allowances. These are unknown scope activities that cannot be quantified at this stage of Attachment number 2 \nPage 48 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-4 cost estimation and as such, are defined through the use of allowances from 10 to 15 percent. These allowances are included in the costs shown below. 5.3 Summary of Capital Improvements The CIP is summarized in Table 5-1 and 5-2. The projects are further described in the following sections. It will provide for upgrades and development of the water distribution system and the wastewater conveyance facilities. For the Water System, the CIP provides for construction of significant improvements to the water distribution system. For the Wastewater System, the CIP provides for design and construction of significant improvements to the wastewater conveyance system. WATER DISTRIBUTION SYSTEM. Table 5-1 Project Description TOTAL 1 Gordon Hwy Olive Rd to D Barnard 863,000$ 2 Plant-Maryland-Walden-White to 20" Olive Rd.2,285,000$ 3 Summerville Loop 794,000$ 4 Powell Rd Extension 600,000$ 5 Dennis RdTank, Pump & Pipe 4,124,000$ 6 Water Line Renewal/Replacement 1,500,000$ 7 Extension of Service 1,500,000$ TOTAL WATER PROJECTS $11,666,000 Table 5.1 is a summary of water distribution system improvements to be funded by the 2014 Series Bonds. The location of these construction projects are highlighted on Figure 5-1. Table 5-2 Project Description TOTAL 1 Spirit Ck HDPE LPS 12,000,000$ 2 Camp Hancock Sewer Rehab 4,000,000$ 3 Camille to Glass Factory LPS 1,500,000$ 4 15th St - Wrightsboro Rd Sewer Improvements 1,000,000$ TOTAL WASTEWATER PROJECTS 18,500,000$ Table 5.2 is a summary of wastewater conveyance system improvements to be funded by the 2014 Series Bonds. The location of these construction projects are highlighted on Figure 5-2. Attachment number 2 \nPage 49 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-5 Figure 5-3 Figure 5-4 Attachment number 2 \nPage 50 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-6 5.3.1.1 Renewal and Replacement Renewal and Replacement is a commitment of upgrades to the infrastructure of Ft Gordon under its contract with Augusta Utilities. It is a continuing program reimbursed by the Government on a monthly basis for the life of the Contract. The initial Bond funding will be used to begin the renewal of these old facilities and continue for the life of the contract. Reimbursements by the Government is included in the Ft Gordon O&M revenue in Table 6- 3. WATER DISTRIBUTION PROJECTS W1 Gordon Hwy, Olive Rd to D Barnard: This project connects a 16” pipeline in Olive Rd to the 24” pipeline flowing through the Merry Brick Property which serves the east Augusta industrial area. This 24” pipeline is supplied by the 12” pipeline in Molly Pond Rd and the 12” pipeline in New Savannah Rd, both of which are connected to the 20” pipeline in Steiner Ave. This connection closes a loop and provides redundancy to the feed to the Merry Brick Property 24” pipeline serving East Augusta. 6,300 lf $ 863,000 W 1 Attachment number 2 \nPage 51 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-7 W2 Water Plant to Maryland thru the VA Hospital down Kimberly Dr and thru Pendleton King Park to the 20" Olive Rd. pipeline: This project provides redundancy to the main route of water to downtown Augusta. The 24” pipeline in Wrightsboro Rd, constructed in 1898 at the same time as the original Water Plant, also feeds the 20” pipeline (which becomes 16” at the intersection with Milledgeville Rd.) in Olive Rd then follows Steiner Ave and 7th St. Downtown. The old 24” cast iron pipeline has been in service for 116 years and should have a redundant pipeline for backup. 12,600 lf $2,285,000. W 2 W3 Summerville Loop: The Summerville water system was absorbed by the Augusta water system in the 1900’s. The village had water mains of cast iron served by wells and a standpipe (removed in 1974 off Monte Sano Ave.) Many of those mains remain in service and have suffered from tuberculation to some extent. Because of their small sizes, pressure problems have existed throughout Summerville’s “High Service” system (now served by the Attachment number 2 \nPage 52 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-8 Highland Ave elevated tank. The loss of head due to reduced diameter is at fault. In 2005, Augusta began adding a supply loop around Summerville to eliminate the excessive head losses by laying a 16” pipeline from the Highland Avenue Plant along McDowell Street and North on Monte Sano Ave to Oakland St. This pipeline and the newly (2001) converted 18” ex-raw water, now potable, pipeline in Peachtree St have been cross connected to all of the intersecting pipelines. This project completes the loop devised to correct the low head conditions by completing the loop along Oakland, Katherine and Mc Dowell Streets with a 12” pipeline and interconnecting all intersecting pipelines with them. 10,700 lf $794,000. W 3 Attachment number 2 \nPage 53 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-9 W4 Powell Rd Extension: This is the last section of 12” water main needed to assert that the west Augusta areas west of the 620 ft pipeline loop in Bel Air Rd and Wrightsboro Rd are fully served. The development potential of these areas was envisioned as part of the future for the construction of the new 36” water main from Highland Avenue Plant to Ft Gordon. 9,800 lf $733,000. W 4 Attachment number 2 \nPage 54 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-10 W5 Dennis Rd Water Storage and Pump System: This project provides much needed storage volume to one of the prime areas of commerce for Augusta, the I-20- Washington Rd. corridor. The storage tank of 3.9 MG and pumping station are to be located at the far reaches of the 564’ System and are to operate based on system pressure in the west Augusta areas that it serves. The project is considered more beneficial than an elevated tank due to the much larger volume available with a ground storage tank and the lower capital costs. Augusta owns the real estate required for the project and the work has been designed. Minimal updating will be required of the existing design, thus the project can proceed at a faster pace than a totally new project. The site includes 2.4 Acres and 6,200 feet of 16’ pipeline and control scheme. 6,200 lf $ 912,000 3.0 MG $ 3,212,000 W 5 Attachment number 2 \nPage 55 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-11 WATERWATER CONVEYANCE PROJECTS: S1 Spirit Ck HDPE LPS. The Spirit Ck Sanitary Sewer was built in 1980’s. The soils supporting the pipe are generally sugar sand. These soils allowed for movement of the tongue and groove joints of the pipeline, which over time have become separated allowing large amounts of groundwater to enter the pipeline. The pipeline is of 36”, 30” and 24” diameter. The water entering the pipe far exceeds the capacity of the Spirit Creek Wastewater Treatment Plant (2 MGD). In the last 10 years, Augusta constructed a pumping station that allows it to send the excess flow to the James B. Messerly Plant for treatment. This is of some consequence because the level of treatment that must be met by the Messerly Facility is much more stringent than at Spirit Creek. As long as Messerly has sufficient surplus capacity to handle the load, Augusta has time to correct the situation of excessive flow at the Spirit Creek facility and the corresponding diluted influent to the treatment plants. This project will construct a new pipeline with plastic welded joints to prevent any groundwater from entering the pipeline. All flow from contributing lateral sewers will be connected to the replacement sewer pipeline. Access ports will be provided at proper intervals. The pipeline will be equipped with pig launch facilities (for pipeline cleaning) for each pipeline size. The alternate of installing liners in the existing pipeline costs the same in materials, but the installation costs are much higher for liner installation because of the soil conditions where the existing pipelines were laid AND because the existing transport must be maintained during the construction of the project. The Installation of a parallel pipeline does not require any costs to maintain the transport. 42,900 lf $12,000,000 S 1 Attachment number 2 \nPage 56 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-12 Attachment number 2 \nPage 57 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-13 S2 Camp Hancock Sewer Rehab. The Camp Hancock Sewer was installed by the U. S. Government to serve Camp Hancock Army Camp west of Augusta in the late 1910’s. The design delivered the flow from all the Army facilities to the Combined Sewer system that existed in Augusta at that time. The pipeline route follows a descending grade around the west Augusta sand hill from North Leg and Wrightsboro Rd. to town. This effluent was discharge through the Glass Factory Combined Sewer Structure until the 1960’s when it was diverted to the Main Sewer Interceptor in New Savannah Rd. The Main Interceptor was constructed as part of the Sewer Improvement Plan of 1952 (by Patchen and Zimmerman). The Camp Hancock sewer is constructed of clay pipe, tongue and groove joints. When Camp Hancock was dismantled and the buildings were all taken down, it is very likely that the sewer service connections were not plugged, but simply buried. Camp Hancock was built on a sand hill, consequently water can enter the former sewer service lines as rainwater flows through the sand layers, which in itself limited the amount of rain water that enters the sewer in that manner. The joints of the main pipe were made with a ropelike material dipped in an asphaltic amalgam. After one hundred years, most of this material has decayed to the point where water can enter the pipeline. Consequently, the pipeline, while pervious, is acceptable in structural condition. Rehabilitation of the pipeline is possible for this sewer. The Camp Hancock sewer traverses three natural drainage basins: The Rocky Creek Basin, The Oates Creek Basin, and the Glass Factory Basin. Interception and connection of the areas in each basin to their proper sanitary sewer collection basin collection sewers would delay the introduction of these flows into the Main Interceptor Conveyance and reduce the flow that is handled by the remaining section in the Glass Factory Basin. Thereby reducing any associated Infiltration/Inflow (I/I) being transferred across basins. 28,100 lf $4,000,000 S 2 Attachment number 2 \nPage 58 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-14 S3 Glass Factory relief LPS, Camille to Main Interceptor: This is a project needed to address the excessive I/I delivered by the Camp Hancock sewer to the Glass Factory Ave, 24” gravity delivery sewer. The connection of a 72” brick sewer that has been dedicated to sanitary use delivers the influent from Camp Hancock to a new 24” gravity pipeline that connects to the Main Interceptor. The capacity of the 24” gravity pipeline is insufficient to move all of the flow. Consequently, the 72” Brick Sewer backs up to nearly full, which in turn affects the hydraulic grade of the Camp Hancock sewer impacting it back for at least to where the invert of the Camp Hancock sewer is 6 feet higher. To insure there are no discharges from the system, we recommend providing the transportation means to prevent the 72” pipe from reaching full condition. This can be done by a 20” diameter Low Pressure System (LPS) to transport the water using atmospheric pressure to assist with the movement of the water. The 1000 lf of 72” brick pipeline still in use can function as the suction well for the system and one moving part, controlled by water level in the 72” brick sewer will control the release and prevent the LPS from losing its prime. This is similar to a number of system Augusta has installed around the collection system to handle the wastewater and minimize the energy consumption. There are as much as 17 ft of drop available to provide the head required to transport the water. The existing 24” gravity sewer will retain its use as an overflow relief sewer. 4,400 lf 1,500,000 S 3 Attachment number 2 \nPage 59 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 5-15 S4 15th Street – Wrightsboro Rd. Improvements This project will improve the sanitary sewer system within in the project area. The hydraulic conditions will be improved by implementing one of the three alternatives shown below. Each alternative provides a separate sanitary sewer to convey wastewater originating north of Wrightsboro Road through the basin to the sanitary sewer basin outfall just east of 15th Street and Wrightsboro Road. Each alternative proposes installing gravity sewer with the length differing according to each route. 1,600 ft $1,500,000 S 4 TOTAL WASTEWATER PROJECTS $18,500,000 TOTAL ALL PROJECTS $31,166,000 Attachment number 2 \nPage 60 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1. 6-1 Financial Performance This section presents an overview and evaluation of the historical performance of the System for a period of 2009 through 2013 and projected financial performance of the System for the study period 2014 through 2023. 6.1 Historical Performance Table 6-1 presents the financial performance of the Department for the past 5 years, 2009- 2013. System revenues increased from $75.7 to $87.6 million during this period, an increase of 15.7 percent. However, there were significant fluctuations from 2009 to 2013 due to Fort Gordon revenue fluctuations. As part of the agreement with Fort Gordon, certain construction projects were requested that AUD would administer and initially fund, referred to as Initial Capital Upgrades (ICU’s), and other fees that are to be reimbursed by Fort Gordon. These reimbursements are reflected as income by AUD, and as such the fluctuations in these reimbursements each year affect Operating Revenue. Ft. Gordon Revenue totaled $7.9 million, $10.3 million, $12.3 million, $17.7 million and $3.9 million in 2009, 2010 and 2011, 2012 and 2013 respectively. Operating expenses for the five year period increased 23.6 percent, from $55.4 million to $68.5 million. This increase is primarily attributable to increased depreciation from capital projects and increased personnel costs as the utility attempts to separate Water and Sewer maintenance activities and moves towards preventative maintenance operation. The Department’s minimum debt service coverage requirement for the issuance of additional debt is 1.25 times annual debt service for the forecast period. The Department has an annual rate covenant of 1.10 times debt service payments. Between 2009 and 2013, debt service coverage ranged from 1.49 to 1.73. Attachment number 2 \nPage 61 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1. 6-2 TABLE 6-1 Historical Water and Sewer System Operating Results 2009 2010 2011 2012 2013 OPERATING REVENUES Charges and Fees 75,675,852$ 84,460,784$ 87,607,757$ 102,495,912$ 87,640,826$ OPERATING EXPENSES Personnel Services 13,733,178 13,180,215 13,116,761 13,458,826 14,405,875 Other Operating Expenses 20,745,424 19,304,668 20,398,421 21,318,112 22,412,283 Payment in Lieu of Taxes 881,550 977,880 1,027,380 1,103,800 1,079,010 Payment in Lieu of Franchise Fees 2,434,530 2,611,820 2,430,980 2,659,010 2,656,320 Depreciation 17,644,049 22,791,229 26,152,763 27,091,020 27,950,200 Total 55,438,731 58,865,812 63,126,305 65,630,768 68,503,688 Operating Income (Loss)20,237,121 25,594,972 24,481,452 36,865,144 19,137,138 Non-Operating Revenues (Expenses) Interest Income 374,523 165,056 189,675 216,669 134,153 Bond Interest & Fiscal Charges (17,488,962) (21,844,322) (23,681,773) (23,727,104) (22,945,071) Amortization of Bond Issuance Costs (653,123) (653,123) (945,732) (1,267,330) (1,178,002) Intergovernmental Revenue - - 50,000 - - Other Revenues (Expenses)114,370 32,104 76,508 50,853 39,511 Total (17,653,192) (22,300,285) (24,311,322) (24,726,912) (23,949,409) Transfers Out to Other Funds - - - (40,620) - Change in Net Position 2,583,929 3,294,687 170,130 12,097,612 (4,812,271) Plus:Bond Interest & Fiscal Charges 17,488,962 21,844,322 23,681,773 23,727,104 22,945,071 Depreciation & Amortization 18,297,172 23,444,352 27,098,495 28,358,350 29,128,202 Payment in Lieu of Taxes 881,550 977,880 1,027,380 1,103,800 1,079,010 Pmt in Lieu of Franchise Fees 2,434,530 2,611,820 2,430,980 2,659,010 2,656,320 Less:Construction Fund Int Inc (188,775) (1,084) (2,389) (30,803) (23,496) Net Revenues Available for DS 41,497,368$ 52,171,977$ 54,406,369$ 67,915,073$ 50,972,836$ Debt Service on Revenue Bonds 27,877,516$ 28,896,706$ 29,459,698$ 29,458,066$ 29,536,716$ Debt Service Coverage Ratio 1.49 1.81 1.85 2.31 1.73 6.2 Water and Sewer Rates The Department’s water rate structure consists of a monthly customer charge and a two- tiered volumetric rate. For residential customers with metered consumption exceeding 3,000 gallons per month, the monthly customer charge is $15.10. The volumetric rate is $2.08 per kgal for the first 3,000 gallons and $2.33 for each additional kgal. For customers using less than 3,000 gallons per month, a $21.77 customer charge applies with no volumetric charges. For non-residential customers, the monthly customer charge is $16.38 for 5/8-inch & ¾-inch meters. For meters larger than ¾”the monthly customer charge increases in relation to the equivalent meter ratio. The volumetric rate for non-residential customers is $2.65 per kgal for the first 3,000 gallons and $2.94 for each additional kgal. The Department’s sewer rate structure is based on monthly water consumption and consists of a monthly customer charge and a uniform volumetric rate. For residential customers with Attachment number 2 \nPage 62 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1. 6-3 a winter average metered water consumption exceeding 3,000 gallons per month during the previous December, January and February the monthly customer charge is $27.45. The volumetric rate is $2.53 per kgal. For customers using less than 3,000 gallons of water per month, a $19.58 customer charge is applied with no volumetric charge. For non-residential customers, the monthly customer charge is $28.91 for customers with either 5/8-inch or ¾-inch water meters. For non-residential customers with water meters larger than ¾ inch, the monthly customer charge increases in relation to the equivalent meter ratio. The volumetric rate for these non-residential customers is $3.20 per kgal. Water and sewer service customer charges by meter size and volumetric rates for both residential and non-residential customers are shown in Table 6-2. TABLE 6-2 Water and Sewer Rates (Effective 4/1/2012) Residential Rate Structure Meter Size Water Base Charge Rate per 1,000 gallons (kgal) Sewer Base Charge Rate per 1,000 gallons (kgal) All meters less than 3 kgal $21.77 N/A $19.58 N/A All meters greater than 3 kgal $15.10 $2.08 for the first 3kgals $2.33 for over 3kgals $27.45 $2.53 Commercial (Non-Residential) Rate Structure Meter Size Water Base Charge Rate per 1,000 Gallons (kgal) Sewer Base Charge Rate per 1,000 gallons (kgal) 5/8" & 3/4" $16.38 $2.65 for the first 3kgals 2.94 for over 3kgals $28.91 $3.20 1" $23.21 Same $41.31 Same 1-1/4" & 1-1/2" $38.44 Same $69.02 Same 2" $55.23 Same $99.73 Same 3" $92.38 Same $167.88 Same 4" $133.81 Same $243.19 Same 6" $225.68 Same $411.06 Same 8" $327.33 Same $596.75 Same 10" $437.19 Same $797.69 Same 12" $567.33 Same $1,010.23 Same Annual rate increases of 3 percent per annum were implemented in 2009 through 2013. Water and sewer rate increases were applied uniformly across utilities and customer classes. That is, rate increases were applied to all water and sewer customer charges, volumetric rates, and industrial surcharge rates for both the water and wastewater systems. A rate increase of 3% per year is forecasted to be required to maintain the financial condition after the significant investment Augusta has made in its water and sewer systems in the last ten years. Water and sewer tap fees are $350 per service for residential connections5. The water and sewer tap fees assessed to new customers connecting to the system are conservatively assumed to remain constant throughout the forecast period. 5 Tap fees vary depending on water meter and tap sizes. Cost does not include additional fees assessed for road crossing or sidewalk replacement. Attachment number 2 \nPage 63 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 1. 6-4 6.3 Financial Policies The Department uses a system of fund accounting to track water and sewer system revenues and expenditures. Funds include the Revenue Fund, the Utility General Fund, Sinking Fund, and the Construction Funds associated with specific bond series. All revenues are deposited into the Revenue Fund. Revenue Fund expenditures include all O&M expenses, operating capital expenditures, transfers to the Utility General Fund for capital projects, debt service, and other deposits to the Sinking Funds, all in accordance with the Bond Resolution. Construction Funds are restricted funds separate from the Revenue Fund. Bond proceeds are deposited into the Capitalized Interest and Construction Fund. In accordance with the Bond Resolution, until the 2004 and the 2012 Bonds are paid, the Department is required to maintain a minimum balance in the Utility General Fund of the lower of $2,500,000 or 5 percent of the Operating Revenues of the System for the preceding fiscal year. Thereafter, this minimum balance is required to be maintained in the Revenue Fund. Prior to 2000, the Department made transfers from the Operating Fund to Augusta’s General Fund. To ensure financial integrity and self-sufficiency, the Bond Resolution provides that the Department no longer makes transfers to Augusta’s General Fund other than payments in lieu of taxes and franchise fees. 6.4 Projected Operating Results Table 6-3 presents projected operating results for the System, including projected revenues, expenses, debt service, and debt service coverage through 2023. 6.4.1 Revenues As of December 31, 2013, the System provided service to 70,330 water accounts and 57,095 active sewer accounts. Annual growth of residential water customer accounts is expected to be 0.5%, in line with historical trends. New sewer accounts are projected to increase by 1% per year, also based on historical trends. Attachment number 2 \nPage 64 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-5 TABLE 6-3 Water and Sewer System Forecast Operating Results 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Scheduled Rate Increase 3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%2.0% Water Sales Revenue 37,572,647$ 38,887,689$ 40,248,758$ 41,657,465$ 43,115,476$ 44,624,518$ 46,186,376$ 47,802,899$ 49,476,001$ 50,712,901$ Sewer Sales & Industrial Surcharge Revenue 36,782,215 38,253,503 39,783,643 41,374,989 43,029,989 44,751,188 46,541,236 48,402,885 50,339,000 51,849,170 Ft Gordon O & M Revenue 8,011,873 8,178,550 8,350,227 8,527,055 6,253,207 6,440,803 6,634,027 6,833,048 7,038,039 7,249,180 Tap Fee Revenue 1,105,533 1,116,588 1,127,754 1,139,032 1,150,422 1,161,926 1,173,545 1,185,281 1,197,134 1,209,105 Other Revenue 3,040,528 3,070,934 3,101,643 3,132,659 3,163,986 3,195,626 3,227,582 3,259,858 3,292,456 3,325,381 GROSS REVENUE 86,512,795 89,507,264 92,612,026 95,831,199 96,713,079 100,174,061 103,762,766 107,483,971 111,342,630 114,345,737 Operations & Maintenance Expense 70,637,914 73,311,053 75,883,528 78,192,906 80,164,518 81,999,840 83,875,249 85,791,649 87,749,961 89,751,134 OPERATING INCOME 15,874,882 16,196,211 16,728,498 17,638,294 16,548,562 18,174,221 19,887,517 21,692,322 23,592,669 24,594,604 Non-Operating Revenues (Expenses)(24,874,535) (24,375,075) (23,636,752) (23,011,984) (22,319,962) (21,727,708) (21,131,710) (20,514,481) (19,862,940) (19,177,831) CHANGE IN NET POSITION (8,999,653) (8,178,863) (6,908,254) (5,373,690) (5,771,401) (3,553,487) (1,244,194) 1,177,841 3,729,730 5,416,773 Plus: Depreciation 29,273,356 31,119,204 32,847,842 34,296,506 35,390,190 36,330,026 37,292,039 38,276,774 39,284,789 40,316,658 Interest & Fiscal Charges 23,783,861 23,385,492 22,597,169 21,922,401 21,231,847 20,641,104 20,046,663 19,431,037 18,781,147 18,097,172 PILOT 1,100,590 1,122,602 1,145,054 1,167,955 1,191,314 1,215,141 1,239,443 1,264,232 1,289,517 1,315,307 PILOFF 2,736,010 2,818,090 2,902,633 2,989,712 3,079,403 3,171,785 3,266,939 3,364,947 3,465,895 3,535,213 NET REVENUE AVAILABLE FOR DEBT SERVICE 47,894,164$ 50,266,525$ 52,584,444$ 55,002,884$ 55,121,354$ 57,804,568$ 60,600,890$ 63,514,831$ 66,551,078$ 68,681,123$ Previous Scheduled Bond Debt Service 31,789,513$ 31,792,673$ 31,792,173$ 31,790,973$ 31,791,623$ 31,794,123$ 31,790,273$ 31,789,173$ 31,791,860$ 31,791,585$ Series 2014 Debt Service Increase (Decrease)258,260 254,050 252,650 253,650 254,500 252,000 253,300 258,287 256,125 251,370 TOTAL DEBT SERVICE 32,047,773$ 32,046,723$ 32,044,823$ 32,044,623$ 32,046,123$ 32,046,123$ 32,043,573$ 32,047,460$ 32,047,985$ 32,042,955$ Debt Service Coverage Ratio 1.49 1.57 1.64 1.72 1.72 1.80 1.89 1.98 2.08 2.14 MAX Annual Debt Service (MADS) Maximum Debt Service Occurring in 2031 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ 32,068,175$ MADS Coverage Ratio 1.49 1.57 1.64 1.72 1.72 1.80 1.89 1.98 2.08 2.14 Attachment number 2 \nPage 65 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-6 Annual water sales revenues are forecast to increase from $37.6 million to $50.7 million and sewer sales and industrial surcharge revenues from $36.8 million to $ 51.8 million. Water and sewer tap fees, and other miscellaneous revenues are assumed to increase by 1% per year to match the level of projected sewer customer percentage increase. These fees and revenue items are expected to increase from $4.1 million in 2014 to $4.5 million in 2023. Fort Gordon contracted annual system maintenance revenue of $5,050,812 is projected to increase by 10% in 2014 due to the addition of New Inventory and 3% every year thereafter. Ft. Gordon revenue of $2.5 million per year from allocation of the initial system purchase ends in 2018-2019 when the final annual payment for the purchase of the original inventory of assets occurs. In 2023, total revenues of $114.3 million are projected, and are to be comprised of water sales (44.4 percent), sewer sales (45.3 percent), Ft. Gordon revenue (6.3 percent) other revenues (2.9 percent), and water and sewer tap fees (1.1 percent). Total annual revenues are expected to grow 32.1 percent from $ 86.5 million in 2014 to $114.3 million in 2023, primarily as a consequence of projected rate increases. 6.4.2 Expenses Total system O&M expenses for 2013 were $68.5 million and are projected to be $70.6 million in 2014. System operating expenses include incremental costs related to the installation of new capital facilities. Expenses are stated in 10 categories: Administration (includes payments to the General Fund in lieu of Franchise Fees and Taxes), Customer Service, Construction and Maintenance, Raw Water, Surface Water Treatment, Groundwater, Messerly Pollution Control Plant, New Programs and Positions, New WTP, and Depreciation. O & M expenses in 2014 are based on budget-to-actual amounts, with an escalation rate for these categories computed at an annual rate of inflation (2 percent) after 2014. Additional O&M expenses attributed to the capital improvement program are included in the fiscal year 2014 budget for each category and included staffing expenses and recurring costs related to process changes, system expansions, system administrative reorganization, Fort Gordon ICU’s and Renewal & Replacement and other aspects of the Utilities Department’s business plan. Operational costs caused by new facilities will be leveled out by 2015. Following 2015, the O&M expenses are projected to continue increasing at long- term escalation rates. 6.4.3 Debt Service Projected debt service includes debt service for both existing and proposed revenue bond issues. Currently, the Department is repaying four revenue bond issues: Series 2004 Bonds, Series 2007 Bonds, Series 2012 Bonds and Series 2013 Bonds. The combined annual principal and interest payment for these revenue bonds is $31.8 million over the forecast period. The 2004 Bonds will be fully retired in 2039, the 2007 Bonds in 2030, the 2012 Bonds in 2042 and the 2013 Bonds in 2033. The Department also pays principal and interest on four loans issued by the Georgia Environmental Finance Authority (GEFA) in 1997, 1999, 2011, and 2012. The GEFA 1997 loan will be fully retired in 2016, the 1999 loan in 2019, the 2011 and Attachment number 2 \nPage 66 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-7 the 2012 loans in 2031. These GEFA loans are not included in the parity coverage requirements according to the Bond Resolution and are therefore not included in debt service coverage calculations. The proposed Series 2014 bond amount will fund the capital program described in Section 5 and refund the Series 2004 Revenue Bonds, including the required debt service reserve and issuance costs. 6.4.4 Debt Service Coverage Debt service coverage is evaluated in terms of the System as a whole (combined water and sewer). The debt service coverage ratio is calculated as the net revenues available for debt service divided by total annual debt service. Net revenues available for debt service are the sum of net income adding back bond interest expense and fiscal charges, depreciation (a non-cash expense) and amortization, PILOT and PILOFF. Although PILOT and PILOFF costs are payable from system revenues as operating expenses, the Bond Resolution provides that such PILOT and PILOFF costs are payable only from the revenues of the System remaining after the payment of other operating expenses and after the payment of debt service on the bonds, subordinate debt service and hedge payments. Accordingly, under the Bond Resolution, PILOT and PILOFF costs are added back to net income for the purposes of determining net income available for debt service. The system has an annual rate covenant of 1.10 times debt service payments. Total system debt service coverage is estimated to be 1.49 in 2014 and projected to range from 1.57 to 2.14 over the study period as shown in Table 6-3. As indicated in Table 6-3, during the period from 2019 through 2023 which follows the construction period, the System will generate net revenues available for debt service that will be in excess of the 1.25 times maximum annual debt service requirement found within Bond Resolution requirements necessary for future borrowing. System debt service coverage ratios for this period based upon the maximum annual debt service of $32.1 million occurring in 2031 are projected to range from 1.49 to 2.14. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fiscal Charges 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Previous Bonds 22,604,513 13,782,673 13,337,173 12,860,973 12,361,623 11,829,123 11,270,273 10,684,173 10,066,860 9,416,585 2014 Refunding Bonds - 8,470,100 8,464,550 8,458,850 8,453,000 8,447,000 8,440,850 8,434,400 8,425,600 8,416,400 GEFA 573,015 523,949 474,036 433,809 395,074 354,981 325,540 302,464 278,687 254,187 Capital Leases 164,637 273,015 97,139 61,817 3,505 - - - - - FG Purchase 431,696 325,755 214,271 96,952 8,645 - - - - - Total 23,783,861 23,385,492 22,597,169 21,922,401 21,231,847 20,641,104 20,046,663 19,431,037 18,781,147 18,097,172 6.4.5 Operating Fund Balances Operating Fund cash flows are presented in Table 6-4. In addition to operating expenses and debt service payments, uses of cash include current revenue financing of planned capital improvements, GEFA loan payments, Renewal and Extension project funding, funding of contractually required Renewal & Replacment projects at Fort Gordon, and the Attachment number 2 \nPage 67 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-8 Department’s budgeted requirements for non-project related operating capital. Operating capital expenditures, excluded from the debt service coverage calculation, are expected to total $6.1 million in 2014 and escalate to $9.2 million in 2015 then normalize to $6.7 million in 2016 and increasing by 3% each year thereafter. Capital lease payments of $1.1 million in 2014 will vary slightly through 2017, ending with $.35 million in 2018. Expenditures for Renewal and Extension projects are anticipated to be $2.0 million in 2015, $4 million in 2016, then starting to ramp up by an additional $1 million per year in 2017 then leveling off at $7 million in 2019. Subsequent years are anticipated to increase by 3% per year. These Renewal and Extension funds are used for minor or miscellaneous capital improvements and emergency projects. Scheduled rate increases provide for compliance with the Bond Resolution requirement to maintain Utility General Fund balances equal to the lesser of $2.5 million or 5 percent of the preceding fiscal year’s operating revenues. Utility General Fund balances range from $4.1 million to $28.4 million over the forecast period. Attachment number 2 \nPage 68 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-9 TABLE 6-4 Operating Fund, Forecasted Sources and Uses of Cash Flows 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Beginning Balance 31,234,939$ 16,017,258$ 8,174,146$ 6,214,889$ 5,435,919$ 4,036,953$ 4,350,837$ 7,156,729$ 12,189,375$ 19,555,666$ Water Sales Revenue 37,572,647 38,887,689 40,248,758 41,657,465 43,115,476 44,624,518 46,186,376 47,802,899 49,476,001 50,712,901 Sewer Sales & Industrial Surcharges 36,782,215 38,253,503 39,783,643 41,374,989 43,029,989 44,751,188 46,541,236 48,402,885 50,339,000 51,849,170 Ft Gordon O & M Revenue 8,011,873 8,178,550 8,350,227 8,527,055 6,253,207 6,440,803 6,634,027 6,833,048 7,038,039 7,249,180 Tap Fees 1,105,533 1,116,588 1,127,754 1,139,032 1,150,422 1,161,926 1,173,545 1,185,281 1,197,134 1,209,105 Other Revenue 2,992,711 2,922,025 3,002,734 3,083,751 3,113,610 3,143,739 3,174,138 3,204,811 3,235,758 3,267,549 Interest Revenue 47,817 148,909 98,909 48,909 50,376 51,887 53,444 55,047 56,698 57,832 TOTAL 86,512,795 89,507,264 92,612,026 95,831,199 96,713,079 100,174,061 103,762,766 107,483,971 111,342,630 114,345,737 Operations & Maintenance Expense 41,364,558 42,191,849 43,035,686 43,896,400 44,774,328 45,669,814 46,583,210 47,514,875 48,465,172 49,434,476 PILOT and PILOFF 3,836,600 3,940,692 4,047,687 4,157,667 4,270,717 4,386,926 4,506,382 4,629,179 4,755,412 4,850,520 Current Revenue Financing 13,928,000 3,133,587 - - - - - - - - GEFA Payments 1,940,444 2,096,940 1,907,604 1,718,268 1,718,268 1,598,876 1,240,700 1,240,700 1,240,700 1,240,700 Existing Debt Service 31,789,513 31,792,673 31,792,173 31,790,973 31,791,623 31,794,123 31,790,273 31,789,173 31,791,860 31,791,585 Proposed Debt Service Increase (Decrease)258,260 254,050 252,650 253,650 254,500 252,000 253,300 258,287 256,125 251,370 Renewal & Extension Projects - 2,000,000 4,000,000 5,000,000 6,000,000 7,000,000 7,210,000 7,426,300 7,649,089 7,878,562 Fort Gordon Renewal & Replacement 2,536,320 2,789,952 2,873,651 2,959,860 3,048,656 3,140,116 3,234,319 3,331,349 3,431,289 3,534,228 Operating Capital Expenditures & Leases 6,076,782 9,150,633 6,661,833 6,833,352 6,253,953 6,018,323 6,138,689 6,261,463 6,386,692 6,514,426 TOTAL 101,730,477 97,350,375 94,571,283 96,610,169 98,112,045 99,860,177 100,956,873 102,451,325 103,976,339 105,495,866 ENDING BALANCE 16,017,258$ 8,174,146$ 6,214,889$ 5,435,919$ 4,036,953$ 4,350,837$ 7,156,729$ 12,189,375$ 19,555,666$ 28,405,537$ Net Increase (Decrease)(15,217,681)$ (7,843,111)$ (1,959,257)$ (778,970)$ (1,398,966)$ 313,884$ 2,805,893$ 5,032,646$ 7,366,291$ 8,849,871$ Table 6-5 Interest & Fiscal Charges 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fiscal Charges 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Previous Bonds 22,604,513 13,782,673 13,337,173 12,860,973 12,361,623 11,829,123 11,270,273 10,684,173 10,066,860 9,416,585 2014 Refunding Bonds - 8,470,100 8,464,550 8,458,850 8,453,000 8,447,000 8,440,850 8,434,400 8,425,600 8,416,400 GEFA 573,015 523,949 474,036 433,809 395,074 354,981 325,540 302,464 278,687 254,187 Capital Leases 164,637 273,015 97,139 61,817 3,505 - - - - - FG Purchase 431,696 325,755 214,271 96,952 8,645 - - - - - Total 23,783,861 23,385,492 22,597,169 21,922,401 21,231,847 20,641,104 20,046,663 19,431,037 18,781,147 18,097,172 Attachment number 2 \nPage 69 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-10 6.5 Capital Financing The capital improvement program will require approximately $30 million in total funding over the 5-year period, as discussed in Section 5 and shown in Table 6-5. TABLE 6-6 Funding Decisions 2014 2015 2016 2017 2018 2019 Beginning Balance, Construction Fund 30,000,000$ 30,026,250$ 26,078,796$ 16,124,434$ 6,152,652$ 1,463,419$ Year Capital Expenditures -$ 4,000,000$ 10,000,000$ 10,000,000$ 4,700,000$ 1,465,980$ Bond Proceeds Available 30,000,000$ 30,026,250$ 26,078,796$ 16,124,434$ 6,152,652$ 1,463,419$ Interest Earned in Construction Funds*26,250$ 52,546$ 45,638$ 28,218$ 10,767$ 2,561$ Total Funds 30,026,250$ 30,078,796$ 26,124,434$ 16,152,652$ 6,163,419$ 1,465,980$ Ending Balance, Construction Fund 30,026,250$ 26,078,796$ 16,124,434$ 6,152,652$ 1,463,419$ (0)$ * Interest income through the 2nd half of each Fiscal Year Two sources of funds will be used to fund the capital program: bond proceeds (99.61 percent), and interest in the Construction Fund (0.39 percent). Approximately $30 million in bond proceeds will be placed into the 2014 Project Fund. Interest in the Construction Fund is projected to total $165,980 over the 5-year period. Planned water and sewer rate increases are projected to generate nearly $28.2 million in additional revenues over the forecast period. Use of these funds provides an appropriate matching of revenues to capital expenses (including debt service payments) to accommodate system growth, effect major system improvements, and extend sewer service to unsewered areas. In the event that actual growth in the Department’s water and sewer systems revenue is less than projected, project deferrals may be employed without degradation of services to ensure adequate matching of system revenues and projected capital expenditures. 6.6 Conclusions ZEL Engineer’s projection of the financial performance of the System for the 10-year period 2014 through 2023 is summarized as follows: Total revenues are projected to increase 26.8 percent over the 10-year period. Total Uses of Funds, including incremental operating expenditures attributed to planned capital expenditures and associated debt service, are projected to increase by 16.7 percent over the forecast period. Projects identified in the Department’s 5-year CIP reflect priority needs of the system and, after adjusting for inflation, are expected to total $40.156 million. These expenditures will be funded through the debt issue in 2014 ($31 million in project funds), and interest on the Construction Fund ($153,499). Financing of the planned 5-year capital program will be enabled by planned system- wide water and sewer rate increases of 3 percent per annum from 2015 through 2023. The typical residential bill for both water and sewer service is projected to increase 30.5 percent over the forecast period as a result of these rate increases. Attachment number 2 \nPage 70 of 71 Item # 5 ENGINEER’S REPORT AUGUSTA UTILITIES DEPARTMENT WATER AND SEWERAGE REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 6-6-11 Given scheduled water and sewer rate increases throughout the forecast period, net revenues of the System will be sufficient to meet projected debt service obligations on existing debt and the Series 2014 Bond. Attachment number 2 \nPage 71 of 71 Item # 5 Finance Committee Meeting 8/25/2014 12:55 PM Disposition of Interest Monies Earned on SPLOST Proceeds Department:Clerk of Commission Caption:Approve request to compel the Finance Director to provide the Governing Body information relative to the disposition of interest monies earned on SPLOST proceeds. An Augusta Georgia SPLOST Fund Balances Report as of 12-31-2013 reflects the following: SPLOST I interest earnings $7,364,408; SPLOST II interest earnings $12,954.082; SPLOST III interest earnings $20,514,527; SPLOST IV interest earnings $18,696,003; SPLOST V interest earnings $11,948,048; SPLOST VI interest earnings $381,303. In addition, the Finance Director will provide documentation that will reflect the authorized usage of such funds. Any other relevant information is solicited. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 6 Finance Committee Meeting 8/25/2014 12:55 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Finance Committee held on July 28, 2014. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 7 Attachment number 1 \nPage 1 of 3 Item # 7 Attachment number 1 \nPage 2 of 3 Item # 7 Attachment number 1 \nPage 3 of 3 Item # 7 Finance Committee Meeting 8/25/2014 12:55 PM Revised 2015 Budget Calendar Department:Finance Caption:Present Revised 2015 Budget Calendar for approval. Background:The Budget Calendar establishes tentative dates for the completion of the various stages of the 2015 budget preparation and adoption process. The calendar is presented for approval consistent with the legal requirements in accordance with OCGA 36-81-5. The budget calendar, as planned, will facilitate developing, reviewing, and deliberations by the legislative body, input from the citizens of Augusta-Richmond County and adoption of FY2015 budget on a timely basis. The budget will also be adopted prior to fiscal year 2015. Analysis:N/A Financial Impact:N/A Alternatives:Revise dates. Recommendation:Approve Revised Budget Calendar for FY2015 as indicated on the attached Budget Calendar. Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 8 AUGUSTA, GEORGIA REVISED 2015 BUDGET PLAIG CALEDAR ______________________________________________________________________________ JULY 2014 July 7, 2014 Finance Committee approves FY2015 Budget Calendar. July 15, 2014 Commission approves FY 2015 Budget Calendar. July 17, 2014 Distribution of Budget Calendar and Instructions during department head meeting. July 21, 2014 Departments with IFAS access may start entering in Budget Item Detail. AUGUST 2014 August 4, 2014 Departmental Budgets due to Finance (for departments without access to IFAS system). Budget analysts begin review of proposed budgets for budget hearings. August 11, 2014 Deadline for IFAS users entering budgets into Budget Item Detail module. August 15, 2014 Deadline for ALL submission of budget documents to Finance department. SEPTEMBER 2014 Sept. 3-12, 2014 Budget Hearings with Departments (call if desired). Budget hearings will be led by the Finance Department with a report of new programs and personnel submitted to the Administrator. Administrator will be aware of all budget hearings; however his attendance will not be mandatory. A representative of the administrator’s office will be in all hearings. September 30, 2014 Budget summary presented to Administrator by Finance Department. OCTOBER 2014 October 21, 2014 FY 2015 Proposed Budget presented to Augusta-Richmond County Commission by the Administrator. October 28, 2014 Publish Public Hearing Notice in newspaper. (One week before meeting) OVEMBER 2014 November 4, 2014 PUBLIC TOW MEETIG / COMMISSIO MEETIG Public Hearing of 2015 Budget. November 11, 2014 Publish Notice of Budget Adoption in newspaper. (One week before meeting) November 18, 2014 Adoption of the FY 2015 Budget by the Augusta-Richmond County Commission JAUARY 2015 January 1, 2015 Effective date for the Fiscal year 2015 Budget. Attachment number 1 \nPage 1 of 1 Item # 8 Finance Committee Meeting 8/25/2014 12:55 PM SPLOST Project Private Organizations Procurement Requirments Department: Caption:Discuss the following ARC contractual requirement relative to organizations who receive SPLOST funding "Organization shall comply with the purchasing policies of Augusta-Richmond County regarding the advertising for bids, the securing of bids, and payment, performance bonds and contracting. Payments to any sub-contractor employed by the Organization shall be made directly by the Organization, subject to Augusta’s audit and approval. If the total project costs exceed the amount funded by Augusta and the Matching Funds, the Organization shall provide proof of other funding sources. Payments by the Organization to sub-contractors shall be made only upon presentation of verified invoices."(Requested by Commissioner Marion Williams and referred from the August 19th Commission meeting) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 9 Attachment number 1 \nPage 1 of 1 Item # 9