Newbern city board names new water plant operator, gives all city employees raise, hikes rural water rate

Hill

Severn Trent Services is the current contract operator of the city's water plant and wastewater treatment plant; they were notified on Feb. 27 the city would not be renewing their contract, which expires on June 30. The city of Newbern then solicited proposals for a new contract. Submitting proposals were Severn Trent, Veteran Management Services and Alliance Water Resources.

Severn Trent Services' bid was $583,885, Veteran Management Services bid was $543,945 and Alliance Water Resources $538,424.

Elmo Lunn (left) and Lance W. Smith (right) of Veteran Management Services (VMS) are the new contract operators of the city of Newbern's wastewater treatment plant and water plant. Lunn is a former commissioner of the Tennessee Department of Environment and Conservation and worked for a company hired by the city to run the plants in the 1990s. Smith is president of the VMS and was recommended by Newbern Mayor K.W. Dennison due to his involvement in the implementation of an EPA program in another city. [Click to enlarge]

After March 11, Mayor K.W. Dennison formed a selection committee to evaluate the proposals. Serving on the committee were Dennison, city of Newbern Utilities Office Manager Rosalind Green, Newbern Water and Sewer Supervisor Casey King, Eric Barnes, City Attorney John Lannom and Newbern City Recorder Jason Roberts. They developed a set of criteria to evaluate the proposals, based on corporate profile, financial qualifications, experience and technical qualifications, technical approach, pricing and miscellaneous considerations.

The selection committee met on a conference call and agreed that all three contractors were capable of performing the job. Dennison indicated to the committee that his preference would be that Veteran Management Services be retained for the contract.

In a statement to the board of mayor and aldermen, Roberts reported that Dennison was impressed with Veteran Management Services' two primary principals: Elmo Lunn and Lance Smith. Also, Dennison had explained to the selection committee that he initially met Lunn in the early 1990s when the Tennessee Department of Environment and Conservation (TDEC) recommended the city of Newbern contact Lunn in regard to operating the city's wastewater treatment plant at that time. McCullough Environmental Services employed Lunn and they were ultimately retained to operate the treatment plant.

Roberts further noted the city was under a moratorium from the state and Lunn was instrumental in getting the moratorium lifted. Lunn is also a former commissioner with TDEC.

Roberts also added that Dennison was impressed with Smith's implementation of a United States Environmental Protection Agency program in another municipality called Capacity, Management, Operations, and Maintenance (CMOM). Since Newbern is under a pending Order of Correction, Dennison felt Smith would be able to assist the city in its CMOM-related issues.

Alderman Bill Parks told Lunn and Smith the board was expecting them to do a good job.

Next on the agenda, was the bad debt write-off.

"The bad debt write-off is a procedure that we do each year," said Green. "We accumulate accounts that are unpaid throughout the year and it's a procedure the auditors require us to do in the end of the year."

Green said they transfer those accounts into an inactive account. However, they still make every effort to collect on them.

"Even though it is called a write-off, they aren't written off as far as uncollectible, unless it is a bankruptcy or something of that sort," said Green.

The motion to approve the transfer of the unpaid accounts into an inactive account passed unanimously.

Next, the board approved the appointments to the library board. Miller Howard replaced Jerry Dennison on the board and Serle Mimms and Tom Parnell were reappointed to their positions.

The discussion of the city's 2009-2010 budget was next on the agenda.

The board was presented a proposal by Green to raise the rural water rates, to fund a raise for Roberts and the position of public works director.

"We're looking at an increase of 45 cents, just to fund the budget," said Green. "If you give the pay increase to the reporter and what I had looked at as far as a public works director then you would have to increase the rate 60 cents per thousand (gallons)."

Green said 2005 was the last rate increase in rural water. She noted there is a new state law stating you cannot have a deficit for over two years straight.

"We're showing a deficit to occur this year based on the rates we have," said Green.

Parks suggested the budget be discussed last and the supervisors first give their reports.

Severn Trent Services Supervisor Randy Gregory gave the board a good report for the past month with no violations and no excursions.

Dennison told Gregory he wanted to thank him and Severn Trent for their service to the city.

"We do appreciate you and ST (Severn Trent) too and we wish you the best," said Dennison.

Next on the agenda, Newbern Fire Chief Phillip Cottrell asked the board for permission to fill out grants for a new building. One was from the department of homeland security and the other was from the fire service.

Cottrell said the city is required to first own the land to put the building on. He said the homeland security grant is to build the economy in the area. The fire service grant must be completed by July 10.

Dennison asked if it would interfere with grants to do sewage work. Cottrell said it has nothing to do with anything except the fire service.

Roberts addressed the mayor and said they did need to investigate further to make certain it did not eliminate the city from future grants. Cottrell said it is the same grant he uses to apply for truck grants and the application is 80 pages long.

Dennison suggested a lot where the Happy House is, on Highway 77. He believed the price on the property would be $8,000. He also said Neal Walls would be willing to sell some land on Monroe Street to the city.

"We'd have to be doing away with the Happy House," said Dennison. "We've got Oak View itself and those portable buildings that have moved in out there."

Newbern Parks and Recreation Director Dan Post said the summer feeding program and the AA groups were meeting there and would have to work something out.

Roberts added the city owes another eight years on the current fire building. Green said the principal is $64,000. Cottrell told the board the building is not worth the money they owe on it.

The motion to allow Cottrell's request to fill out the grants, posing no conflicts passed by a unanimous decision.

Post then addressed the board and said the pool was up and running and everything was working well.

"Both of our playgrounds are completed except for the amenities, such as the benches and garbage cans and we'll be working on it," said Post.

Newbern Street Department Supervisor Steve Dodds said the department only had one major project this month, in which a culvert blew out on Nora Drive. He said they have it rebuilt it shouldn't happen again. Dodds also mentioned vandals stole all of the American flags from the graves during last year's Memorial Day. He announced this year, with the assistance of the police patrols, all but three of the flags were retrieved from the cemetery.

Dodds told the board he had three and one half pages of people that had put out curbside debris since they picked it up.

"We completed the month on schedule, the first full week of the month," said Dodds. "Since then we haven't had any storm damage other than a little wind today."

Dodds said some were repeat offenders and one customer had told Roberts that he would put his curbside (debris) out wherever he pleased, whenever he pleased at his convenience.

"This is part of your $15 where you get garbage picked up, you get access to the landfill, you get your leaves picked up, you get your curbside picked up," said Dodds. "If there's people that continually want to break it, we don't have to give them the privilege that we'll pick it up, I don't think."

Dodds reiterated to the board that residents need to understand the pickup schedule for curbside and it is the first full week of each month.

Sandy Hill, electric department supervisor, addressed the board about his department's progress. He said they have been working closely with McDonald's and the Flash Market in determining what their utility needs will be. They are also going to build a three-phase steel line to the interstate to supply future growth behind McDonald's and also for a new lift station to feed the complex.

Newbern Gas Department Supervisor James Wilkerson told the board his department did 15 line locations and had to cut 25 people's gas off. They also repaired a gas meter where someone backed over it and they lost quite a bit of gas. Wilkerson hoped a gas bill would be sent to the person.

Casey King, water and sewer supervisor said they drained the 500,000-gallon tank behind the industries so it could be cleaned and disinfected.

"Before we wasted all that water, we turned our high-service pumps and our wells off, so we could put as much of that existing water back into our system, so it wouldn't be as big of a loss for us," said King. "But, that is something that is mandated by the state and we have to do it."

King also said his department is always looking for good free dirt and he is getting ready for state inspection.

The next item of business was the hiring of Hill as the public works director.

"We can hire Sandy, keep him at his same salary, and give him a $15,000-a-year raise," said Dennison.

Alderman Robert Hart asked Hill did he think he could handle the job. Hill responded that he has been lucky to have good employees that work under him and he has good department heads to work with.

A couple of supervisors voiced their approval of Hill's work and thought he was an excellent choice.

Parks clarified that Hill would continue as the electric department supervisor as well as the public works director.

Parks made the motion that city auditor Steve Carmichael work out the details so Hill would receive $15,000 above his salary as electric department supervisor and be the public works director.

Dennison asked for a roll call vote, but vice mayor Cathy Clements wanted to know Hill's job description before the vote.

"I don't want my idea of what your job is to be a whole lot different from what you think it is," said Clements. "So, I think that it is something we just want to address soon."

Parks said his capacity would be the same as former public works directors.

A unanimous roll call vote approved Hill to be the new public works director for the city of Newbern.

"Thank you for putting your trust in me," said Hill. "I'm looking forward to working with other department heads for the betterment of our city."

Hill's additional $15,000 will be divided among the city's five departments.

Discussion was made about the police records clerk's salary.

"Our court has grown tremendously," said Roberts.

The members also discussed merit and across-the-board raises. Parks voiced his displeasure with across-the-board raises.

"I don't think that's the way to go," said Parks. "Because some people might not be paid enough."

The board voted unanimously to give the police records clerk a raise if the board didn't raise other city employee salaries.

Parks then made the motion to top Roberts out in his position.

"Jason has been here two years and he hasn't topped out," said Parks. "It's a custom when you've been here two years to top out."

The raise increases Roberts' salary approximately $1.28 more an hour.

Although all city employees top out in two years, policemen are excluded because they top out in a year. This is due to them only hiring certified officers.

The motion to top Roberts out, passed by a unanimous vote.

Parks then made the motion to give the city's warehouse helper the same salary as the city hall employees. Some discussion was made about the position's stand-by and overtime pay.

The motion failed due to lack of a second.

After more discussion on the issue of city employee raises, the motion was made to increase all city employees' salaries by 25 cents an hour and continue to pay their insurance. It passed by a roll call vote. Parks was the only member of the board to vote no on the motion. This negated the previous motion to give the police records clerk a raise if no other city employees received one and she would be included in the 25-cents-an-hour raise.

Parks wanted all city employees to know they were given a 47-cent raise due to the 6 percent increase in insurance rates.

Also, the board voted unanimously to approve an almost 50-cent increase in rural water. Residents will now be paying $5.53 per thousand gallons.

Finally, the board approved the first reading of the 2009-2010 budget by a unanimous vote. They will have a called meeting on Monday, June 29, at 6:30 p.m. to ultimately pass the budget ordinance.