Water Rates Go Up, Raw Water Transmission Bid is Awarded by Council

December 12, 2011: City Council Business Meeting Summary

X. Council Business

     A. Old Business

Item 1. Contract 1A Raw Water Transmission Facilities – In the absence of Water Department Director, Mike Bowie, this item was presented to the council by Water Department Consultant, David Leonard of Precision Planning.  Leonard said that bids were taken for the construction of 5,900 linear feet of four and six inch water lines; and for approximately 1,400 feet of 12 inch ductile iron water line. This bid also included the addition of two well sites. Bringing these two well sites online, Leonard said, will increase the Mahlon Burson facility water treatment capacity.

Leonard said that four bids were submitted. Of those bids the lowest was in the amount of $852,919.50; this bid was given by Griffin Brothers (Construction).   

After Councilwoman Marie Beiser made the motion to accept the bid, second by Councilwoman Katie Hart Smith, Councilman Tony Powell said that this bid was for “a lot of money”. He said this project will include “the picking up of a well on Johnson Road that is already tapped and measured”.  Construction of the pipeline to carry water from the north side of Highway 29 has begun; this project will complete that pipeline construction to bring water into the Burson treatment facility. The second well site, on county property, will be added along the way.

With the addition of these two wells, Leonard said the city’s need for county supplied water will decrease.  Cost of well pumps and instrumentation to enable communication between the well sites and the Burson facility, along with the pipes needed for this project are all included in this bid, said Leonard.

The motion to award and accept the bid from Griffin Brothers in the amount of $852,919.50 was approved 4-0.

Item 2. Second Read of Ordinance to Amend Water Rates for the City of Lawrenceville – Water Department Consultant, David Leonard of Precision Planning, in the absence of Water Department Director, Mike Bowie, presented this item to the council. Leonard said that in the beginning of 2012 Gwinnett County will increase its water rate paid by the city by 3.4 percent.

Leonard recommended that the city pass that increase in the exact amount, 3.4 percent, directly onto water customers by way of their water bills. This recommendation was made, said Leonard, to ensure no loss in city’s water revenue and for maintenance of the city’s water system.

Mayor Judy Jordan Johnson said, “We hoped that when we get all of our well sites on, we will not have this increase that we have to pass on.”

Councilman Peter Martin made a motion to approve the Second Read of the county imposed water rate increase; this motion was second by Councilwoman Smith.

Before the vote was cast, Councilman Powell said that in council’s Work Session that a discussion had taken place to change the way in which this ordinance was done. He would like this ordinance process changed to allow “a straight pass through”. This change, in looking at attachments, he said, was not accomplished. He said that it looked as if this water rate ordinance was being passed as “a rate, a specific number”.

Powell said, “I don’t mind voting for it, but I want us to put that on the list of things to do. Because we are just really passing through cost from Gwinnett County and there is no need for us to do this (notify the public of this rate change via an ordinance) every year. The point where you can do something about that (rate increase or change) is at the County Commissioners level; that is where those rates are being added on. We cannot stop them from happening.”

He said the increase was flagged to let the public know that it was coming, but that this was not an actual action that the council was taking. It was like all of the other utilities the cost of the goods being sold goes up and is passed directly to the customer. Powell asked that this change be implemented in 2012.

Mayor Johnson said she remembered the discussion, and the change could take place next year, but the city needed to get this passed in order for the new rates to take effect on January 2012 bills.  

The motion carried in a 4-0 vote.

(Reached for comment after the meeting, City Manager Bob Baroni voiced concern over Councilman Powell’s request for changing the process in which the public is notified of water rate changes.

Baroni said that public council meetings are, currently, the only means in which customers are notified of the amounts of rates adjustments that the county enacts and are then passed onto the city. He said to implement a new process could entail incurring additional costs to the city in notifying customers of these water rate changes. He cited additional charges for creating, printing and postage for mailing these types of notices.)

With no Public Comment registered, council moved into Executive Session to address Personnel, Litigation and Real Estate items.