The Oconee County Board of Commissioners met in a special called meeting at noon on Oct. 22 to approve refinancing of a $12.3 million revenue bond the county issued in 1998 to provide funding for water and sewer construction projects.
The refinancing at a lower interest rate will result in savings of more than $900,000, according to figures prepared by County Finance Director Jeff Benko in support of the decision to refinance the debt.
Prior to the refinancing, the county owed $9.5 million on the bonds in principal and interest.
After the refinancing, the county will owe $8.6 million. Both before and after refinancing, the debt is to be retired in 2019.
The county was able to obtain an interest rate of 3.1 percent for the new bond. The interest on the original bond was 4.75 percent.
The savings of $917,535 is the net gain to the county, Benko said in an email message to me yesterday. The costs of refinancing have been included in the calculations, he said. According to the minutes of the BOC meeting, that cost is $195,000.
The refinancing will provide some relief to the county Utility Department, which issued the bonds and which has had budget shortfalls in recent years because it has not been able to sell the amount of water originally projected due to the drought.
In the current fiscal year with the new schedule, the department will pay $187,117 in interest on the loan, compared with the $938,655 due this year on the principal and interest on the original schedule.
Next fiscal year the county will pay $827,575 with the new bonds, compared with $933,580 in the original schedule. In subsequent years, the gap between the old schedule and the new becomes smaller, with $868,400 due on the new schedule in the final year, 2019, compared with $875,080 in the prior schedule.
The minutes of the Oct. 22 BOC meeting indicate that Jamie Wilson of Merchant Capital reported a savings of $391,989, but Benko said that figure does not include a payback of more than half a million dollars the county will receive once the refinancing is complete.
The 14-member Oconee County Citizen Advisory Committee on Land Use and Transportation Planning is scheduled to take up the issue of mitigation for wetland and streambed destruction at its regular meeting that starts at 7 p.m. on Nov. 10 at the Community Center in Veterans Park.
Katie Sheehan, a staff attorney at the River Basin Center in the Eugene P. Odum School of Ecology at the University of Georgia, will present to the committee a resolution she drafted for possible adoption by the Oconee County Board of Commissioners.
The resolution, if passed, would put the county on record with the U.S. Army Corps of Engineers as preferring mitigation in Oconee County or upstream from the county for damage done to streams and wetlands in the county.
Developers that want to drain wetlands and pipe or divert streams on their sites must get a permit from the Corps of Engineers before being allowed to do so. The Corps, in granting permits, requires some form of mitigation.
Builders of roads and other projects that affect flowing waters in the state also must obtain permits from the Corps and mitigate damage with restoration elsewhere.
Oconee County currently has two commercial mitigation banks in differing stages of development, one on Rose Creek in the very southern part of the county and the other on tributaries to the Apalachee River in the northwest of the county.
At its May 5 meeting, the Board of Commissioners referred the resolution to the Citizen Advisory Committee on Land Use and Transportation Planning for review. The committee is scheduled to at least initiate that review on Nov. 10.
Sheehan drafted the resolution after talking with me and reading several blogs I had written on mitigation for construction of the planned Epps Bridge Centre on Epps Bridge Parkway near Lowe’s.
Frank Bishop, developer of that site, purchased land in Greene County and developed a mitigation bank there after, he said, he discovered that land in Oconee County was too expensive.
The Corps subsequently granted Bishop permission to mitigate the damage to the tributaries to McNutt Creek on his shopping center site at his Greene County bank.
The Greene County site lies in the Oconee River watershed, meeting current Corps requirements, but it is south of Oconee County, meaning benefit of the stream and wetland restoration there is minimal for Oconee County.
The state purchased mitigation credits in Jackson and Hall counties, upstream from Oconee, to offset damage it is doing to the McNutt Creek tributaries in construction of the Oconee Connector Extension.
Construction of the Connector, which will serve as the entranceway to shopping center Bishop is developing, is currently in its initial stages.
Both Oconee and Walton counties currently are in the process of working through the mitigation for construction of the Hard Labor Creek reservoir in Walton County, on which they are partners. The reservoir will flood wetlands and adversely affect buffers of the Apalachee River, from which water will be drawn to fill the reservoir.
Oconee County moved one step closer to restricting solicitation on its roadways when the Board of Commissioners tonight gave first reading to an ordinance that would require groups to have a permit and limit the locations of and times for fundraising.
Final action is scheduled for the Nov. 3 meeting.
No one spoke against the ordinance tonight or or when a preliminary draft of the ordinance was discussed on Sept. 29.
The ordinance drafted and read by County Attorney Daniel Haygood would exempt official county groups such as the fire department from the requirements but would require other organizations to pay a $50 application fee and a $50 permit fee before being allowed to solicit funds on public roads in the county.
Only charitable organizations would be eligible for the permits, which would have to be requested at least 15 days prior to the event from the county Code Enforcement director.
Each permit would cover not more than two days. Solicitation would be restricted from 9:30 a.m. to 4 p.m. on weekdays, with the period from 11:30 a.m. to 1:30 p.m. excluded.
On weekends, solicitation would be restricted from 7 a.m. to 6 p.m., or from sunrise to sunset.
Solicitation only would be allowed at signalized intersections designated by the sheriff as appropriate. Solicitors would be required to wear safety vests.
At the suggestion of Commissioner Jim Luke, Haygood said he would add a restriction that limited to one the number of permits that an organization could receive in a year.
The ordinance only would apply to unincorporated parts of the county, Watkinsville already has an ordinance in place prohibiting such solicitation, according to Mayor Jim Luken.
In other action, the board instructed Haygood and county Administrative Officer Alan Theriault to bring back to it proposals for an ethics code that would cover only the commissioners. Earlier discussion had suggested that the code might be more far reaching.
The board also discussed, but did not take action on, a proposal that it join with Clarke County in a development program. That issue will be discussed again in the hour before the official 7 p.m. start of the Nov. 3 BOC meeting. The discussion and meeting will be at the courthouse in Watkinsville
Commissioner Chuck Horton and Chairman Melvin Davis said they continued to have reservations about the proposed joint development initiative, while Commissioners John Daniell and Jim Luke supported it.
Commissioner Margaret Hale was sick and did not attend the meeting.
At the beginning of the meeting, Chairman Davis asked those present to remember Don Norris, 72, a member of the commission for 20 years, who died on Sunday after a battle with cancer.
Oconee County is engaged in three strategies to manage the financial burden of its decision to enter into the agreement with Walton County to build the Hard Labor Creek Reservoir, citizens at the Town Hall meeting last Tuesday night were told.
The county is doing what it can to slow down the project, hoping to get revenue to pay the $49 million price tag the county agreed to as its share for the first phase of the reservoir, to be located in the southeastern part of Walton County.
It is looking for customers for the water from the reservoir–probably in metro-Atlanta--who will help pay the bills.
And it is turning to the state for assistance.
These answers were given by Commissioner Jim Luke, Chairman Melvin Davis and Commissioner Chuck Horton in response to the first question posed at the session on Tuesday night.
The story in the Athens Banner-Heraldon Thursday mentioned part of the first answer, and the story in The Oconee Enterprise that same day mentioned part of the second.
I didn’t include anything about Hard Labor Creek in the story I posted on Wednesday night. I focused on discrepancies between what members of the board said in response to questions about a number of issues and the public record.
The answers of the three commissioners, however, are worth examining in detail.
When the Board of Commissioners voted in March of 2007 to join with Walton County on the Hard Labor Creek Reservoir and water treatment plant, it did so based on the projection of 8 percent growth in water usage each year through 2016 and told citizens the project would be financed by that growth, rather than by an increase in water costs for existing users.
While the completed reservoir is projected to cost $350 million, it will be built in two phases, with the first phase costing $170 million, and Oconee County responsible for 29 percent. The county has been selling bonds to cover its share of the costs.
Russ Page, active in farmland protection and other issues in the county, asked the board at the Town Hall meeting if it still believed the project could be financed with new growth.
Luke said "I don't know that I know the answer" as to whether the project can be financed through new growth. "We’re in an economic condition that probably none of us expected," he said.
"We are starting to drag our feet a little so we make do for the time being with funds that we have because the growth is not there that we anticipated."
Luke, who is chairman of the Hard Labor Creek Management Board and one of three Oconee County representatives on the seven-member board, said that "we are going to do our very best to not use anything other than water fees" to pay for the project.
Luke acknowledged that the taxpayers–even those who do not get water–ultimately could be forced to pay for the project if water revenues are not able to do so.
Chairman Davis, who is not a member of the management board for the reservoir but has been involved in discussions in Atlanta about funding for it, said it is clear now that Oconee County isn’t going to need the water from Hard Labor Creek when it is scheduled to come online in 2014.
Davis said discussions around the state about water needs suggested "There may be purchases of that water" until "Oconee County and Walton County need that water." He said nothing was firm yet on this possibility.
Horton, who became an alternate on the Hard Labor Creek Management Board in April, said the management board was looking for other "revenue sources," including from the state, but he noted that the state struck $40 million in reservoir funding from the last budget because of a lack of tax revenue.
Luke, Davis and then-commissioner Don Norris voted for the Hard Labor Creek Reservoir back in 2007, while Horton and Commissioner Margaret Hale voted against it.
The acknowledgment of the problems with Hard Labor Creek at the Town Hall meeting on Tuesday night were the most complete to date by the BOC.
In January of this year, when Melissa Peppers of Treadwell, Tamplin and Company reported on the completed FY 2008 audit for Oconee County, she made an oblique reference to the Utility Department and concern about the debt obligations for Hard Labor Creek.
On April 7 of this year, Utility Department Director Chris Thomas told the commissioners that the county was slowing its involvement in the project because of a lack of Utility Department Funds.
Only two weeks later Jimmy Parker of Precision Planning Inc., which is under contract with the management board, appeared before the Oconee BOC to counter Thomas by saying everything was "on schedule and under budget."
The difficulty with the financing of Hard Labor Creek results from a fundamental problem with financing of these projects in the state. They are paid for through water sales.
The just-ended drought meant that utility departments around the state had less water to sell.
The state also mandated that they tell customers they could not use the water for outdoor irrigation, which is a large source of revenue for utility departments during the summer months.
The collapse of the housing market around the state also greatly slowed growth of revenue from developers and from new customers.
Oconee County already has put into place two water rate increases since it decided to join the Hard Labor Creek project.
On April 1 of 2008, under the guise of instituting conservation pricing, the BOC approved a rate increase of 30 percent for the highest residential users. The base rate, however, stayed the same. Since water restrictions were in place, it didn’t produce much of a change in revenue.
On July 1 of this year, the county increased the base rate for residential users by 18 percent and increased the rate for each of the categories of use about the base by 32 percent.
The rate increase in 2008 did not affect commercial users. In July, the base rate for commercial users was left unchanged, and the rate for use beyond the base was increased by only 2 percent.
Thomas had sought a 32 percent increase in the base rate for residential users to take effect in July but was turned down by the BOC.
At the Oct. 6 meeting, the BOC agreed to spend unallocated Special Purpose Local Option Sales Tax (SPLOST) funds to upgrade a county well on Hillcrest road and sell 500,000 gallons of water per day to Walton County to help raise revenue for the Utility Department.
The audit conducted by Treadwell, Tamplin and Company shows the details of the problem. (I obtained a copy via an open records request.)
The county approved $19,535,000 in the sale of Series 2008 Bonds as part of its intergovernmental agreement with the Walton County Water and Sewage Authority for the Hard Labor Creek Reservoir project.
The county is scheduled to make only interest payments on these bonds until the fiscal year ending June 30, 2014, when it also will start paying against the principal. Each year until that point, it is supposed to make a payment of $936,263, but in fiscal year 2013-2014 it is supposed to pay $1.3 million, about $400,000 of which will be the first payments against principal. The bonds are to be paid off in 2038.
As Davis said, since Oconee County does not feel now it will have customers for that water in 2014, it had better find some other way to make those payments.
The Treadwell, Tamplin and Company audit is explicit about the options if water revenues do not cover the costs.
"In the event that the County System Revenues are insufficient to make the Contract Payments, the County has agreed to levy an ad valorem property tax, unlimited as to rate or amount, on all property in the County subject to taxation for such purposes in order to make the Contract Payments," page 22 of the audit states.
Luke put it more simply. The citizenry is "out on a limb."
About 40 people turned out Tuesday night at the Civic Center for an hour-and-a-half-long exchange with the Oconee County Board of Commissioners in what was billed as a town hall style meeting.
The citizens asked questions of the five commissioners about a covered bridge in Northwest Woods, the possible purchase of land for preservation, the flyover from Daniells Bridge road to behind Home Depot, the widening of Daniells Bridge road, and other topics.
The answers the citizens were given were informative, though not necessarily in the way intended by the commissioners.
"The county did not fully determine who did the damage" to the bridge, Board Chairman Melvin Davis said in response to the question as to why no action was taken against those who hit the bridge. He did not elaborate.
Commissioner Jim Luke said the county didn’t have the money to restore the bridge, though he acknowledged later the county had money it is sitting on for an upgrade of Daniells Bridge road leading to a commercial development site.
The county does not have enough money to buy and protect land threatened by development, such as at Elder Bridge, Commissioner Margaret Hale told Russ Page, an advocate of farmland protection and historic preservation.
Commissioner Chuck Horton said the county is lending the state money--approximately $10 million--to purchase right of way for Mars Hill Road widening, which is supposed to relieve traffic but also is designed to open up land for commercial development.
The county lost about half a million dollars last year in interest on a similar loan of $5 million it made to the state for right of way purchase for the Oconee Connector Extension.
In December of 2008, the BOC approved a rezone for a business park just east of the blind curve on Daniells Bridge road and promised complaining citizens it would widen the road to the site to help address safety concerns.
Public Works Director Emil Beshara told the Board the work would be completed by the end of this past summer.
Since no construction has been done, one member of the audience asked for an update. (I was not that person.)
Chairman Davis said work was on schedule to widen the road from Founder’s Grove to the Oconee Connector Extension–about half the distance promised at the rezone hearing–and was on schedule to be completed by late winter or next spring.
Commissioner Jim Luke said he also believed the work was proceeding as scheduled and noted that $400,000 was set aside for the project.
Another citizen asked for an update on the status of the proposed flyover of SR Loop 10 from Daniells Bridge road.
Davis told her the project is only in the concept stage and "in what is known as the long range plan 2025-2035."
The flyover is one of only three projects in Oconee County in the state and federal Transportation Improvement Program and is slotted for $50,000 in preliminary engineering in fiscal year 2015. Construction is programmed for fiscal year 2017.
Davis was one of two representatives of the county to the Madison Athens-Clarke Oconee Regional Transportation Study, which put the project on the TIP at its meeting on Sept. 9. According to Sherry Moore, a transportation planner with Athens-Clarke County and a designated contact person with MACORTS, Davis attended that meeting.
Another item on that TIP list is the widening of Simonton Bridge road from the Clarke County line to Watkinsville.
No one asked about that at the meeting.
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The full video from the meeting is on my Vimeo site.
Though Oconee County expects to begin soon to purchase the right of way for the widening of Mars Hill road from SR 316 to Hog Mountain road in Butler’s crossing and will include in that right of way enough space for bike lanes, clearly not all of the county’s citizens are interested in accommodating bicyclists.
One who is not is Derrek Crowe, who stepped down at the end of September as a member of the county’s Citizen Advisory Committee on Land Use and Transportation.
Crowe told that group back in January that he felt it is the committee’s responsibility to listen to the complaints of citizens, according to the minutes of that meeting.
And he had heard a complaint he wanted discussed.
Crowe, according to the minutes, said he had recently "overheard a woman at the doctor’s office who was upset and crying because she was late for an appointment."
The problem, Crowe said, was the woman got "stuck behind bicycles"–on Mars Hill road!
Crowe asked that committee chairman Abe Abouhamdan put discussion of regulation of bicyclists in Oconee County on the agenda for the committee’s February meeting.
Contrary to what some believe, Crowe told his fellow committee members in February, his legal research indicated that the county can regulate bikes on roads in the county. This is according to the official minutes of that meeting, approved by the board a month later.
"Derrek pointed out that he takes exception with recreational bicyclists being on the roadways, slowing traffic and causing dangerous situations," according to those minutes.
The minutes describe the discussion of Crowe’s proposal as "lengthy." At one point, committee member Bill Tollner recommended that cyclists should be prohibited from using roads without a "certain width of shoulder," the minutes indicate.
Committee member James Morris, however, said problem cyclists are a "minority," according to the minutes, and he felt the county didn’t really have jurisdiction, despite Crowe’s legal review.
Crowe made a motion, seconded by committee member Courtney Gale, that the committee continue its discussion of the issue at future meetings, and that motion passed 5-4.
At the March 10 meeting of the committee, Chairman Abouhamdan brought the matter up again.
Crowe was not at that meeting, according to the approved minutes, and discussion of the topic was brief. It has not appeared in any subsequent minutes of committee meeting.
According to the minutes of the February meeting, Abouhamdan reminded the committee that it did not set policy. That is done by the Board of Commissioners, and he said he would ask the board "if this is a subject they want to take up."
The matter has not appeared on the BOC agenda.
According to Dan Wilson, assistant county engineer, former Oconee Public Works Director Mike Leonas was a strong advocate for including bike lanes on the widened Mars Hill road. The four-lane wide road also will include sidewalks.
Eventually, Experiment Station road from Butler’s Crossing to Main street in Watkinsville also is to be widened to four lanes and include bike lanes and sidewalks.
The Oconee Connector Extension, which will create a half circle from the current intersection of the Oconee Connector and SR 316 back to Epps Bridge Parkway at Lowe’s, also will include bike lanes.
At present, Epps Bridge Parkway in both Oconee and Clarke counties has bike lanes, though they stop as the roadway intersects with Broad street, dumping bicycles into the heavy traffic of that roadway at that point.
The proposed widening of Simonton Bridge road from Watkinsville to the Clarke County line also includes bike lanes, meaning a bicyclist could travel from one Clark county line to another almost entirely within bike lanes. The exception would be along the streets of downtown Watkinsville.
Along most of the route, however, auto traffic would be moving at a pretty quick clip, if the present 45 miles per hour speed limits are maintained.
In many places in the world, it is normal for bikes and autos to travel on the same routes. The Netherlands is particularly sophisticated in integration of bicycles into the country’s transportation system.
Many roads there have bike lanes, which often have separate traffic signals. I shot the video above of auto and bike traffic on a busy residential street in Bussum in late September when I was in the suburb of Amsterdam on a business trip.
The Oconee County Board of Commissioners Tuesday night set up the first of its town hall meetings for Oct. 20, following up on a promise made to the public when it passed its reorganization plan on Aug. 4.
Commissioner Margaret Hale (right), who proposed the meetings with the public at that August session, said on Tuesday night she wanted a format "where a citizen has the right to ask the question of one of us or all of us and we respond back with an answer." She said she wanted to "keep it informal as much as possible."
The Oct. 20 meeting will be held from 7 to 9 p.m. at the Civic Center on Hog Mountain road. In the half hour before the formal session, commissioners will be available to meet with citizens and talk one-on-one.
The commissioners said they will be available after the two-hour session to talk individually with citizens as well.
Alan Theriault, county administrative officer, will moderate the meeting. He indicated he would give citizens the chance to ask their questions during the first part of the two-hour session and then allow commissioners to offer their proposals to the citizens if time permits.
Hale proposed the town hall meeting after the board passed an ordinance in August that changed the reporting line for Theriault and County Budget Director Jeff Benko. In the past, they reported only to Commission Chairman Melvin Davis. With passage of the ordinance, the pair reports to the full board.
Hale said the board needed to do more to communicate with the public and proposed the meeting as one strategy. Commissioner Jim Luke spoke out in support.
Commissioner Chuck Horton said Tuesday night it is his hope the board will do a second such town hall meeting after the first of the year.
In other action on Tuesday night the board approved a rezone and a series of variance requests to allow the New Life Apostolic Church on Hog Mountain road in Butler’s Crossing to upgrade its existing neighborhood church to a community scale church. The expansion will increase the capacity of the church from 344 to 500 seats.
The board also approved a request from local businessman Zachary McLeroy to rezone nearly 150 acres on Malcom Bridge road between Hodges Mill road and Rocky Branch road from master plan development back to agriculture.
The land had been rezoned from agriculture in July of 2003 for a high density master plan development to be called Kensington Park.
According to Ken Beall, who represented McLeroy at the Tuesday meeting, developer Bob Cain discovered that the amount of rock on the site made the project extremely expensive.
McLeroy bought the land with the plan to build his own "estate," Beall said, and the agricultural zoning would allow that.
The lot remains wooded with pasture and drains north to Barber Creek and east to a branch of Barber creek.
The board also approved a $300,000 proposal by Utility Department Director Chris Thomas that the county upgrade a well on Hillcrest drive and sell the water to Walton County, but only after Commissioner Horton removed the item from the consent agenda and raised questions about the project.
"I don’t know why we want to spend that kind of money and turn around and sell the water to Walton County," Horton said. The board voted 3-1 with Horton in the minority to go forward with the project.
After lengthy discussion, the board also voted to do its next round of advertising for citizen applications for committee appointments in The Oconee Leader, rather than in The Oconee Enterprise, as has been the policy in the past.
Commissioner Luke said he wanted to provide support to both of the weekly newspapers, since both are businesses operating in the county. He also said the Leader, which is distributed free, has a higher circulation than the Enterprise, which is a paid circulation publication.
Russ Page, a citizen active in many issues in the county, said he thought it was a problem for the board to be involved in making decisions about advertising spending and suggested Administrative Office Theriault was the appropriate person to do that.
The board majority was severely criticized by the Enterprise in the run-up to the passage of the reorganization plan, which Commissioners John Daniell, Hale, Horton and Luke favored and Davis opposed.
The May 7 edition of The Oconee Enterprise presents a confusing and misleading reference to Board of Commissioners' action at the May 5 meeting on a proposed resolution regarding mitigation of stream and wetland damage in Oconee County.
For an explanation of what really happened and background on the action taken by the BOC, go to blog posting here on May 8 and April 21.
Ph.D. University of Wisconsin--Madison, Mass Communications (1974); M.A., University of Kentucky, Communication (1971); B.A., University of Kentucky, Journalism (1969).
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