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Demorest outlines nearly $10 million in water upgrades and signals need for rate changes
Summary
City Manager Mark Musselwhite presented a water and sewer capital plan on Aug. 6 listing about $9.9 million in water-system projects and $2.075 million in sewer work; consultants told council continuing to rely on Toccoa for peak demand will likely require a system-wide rate increase or reduced general-fund transfers.
Demorest’s city manager told council on Aug. 6 that an inventory of water and sewer needs shows substantial capital requirements that will affect future operating revenue and potentially customer rates.
Mark Musselwhite presented a spreadsheet of needs that included replacement of asbestos water lines estimated at $4,000,000; Garrison Road well improvements at $2,500,000; SCADA improvements estimated at $200,000; assorted booster-station upgrades and pump stations; and a total water-system estimate of roughly $9.9 million. Sewer system and related items were listed at about $2.075 million. Additional items included replacement hydrants, backhoe purchase and City Hall exterior/parking work.
Musselwhite summarized a consultant (EMI) finding that if the city continues to rely on the City of Toccoa to meet peak water demand, Demorest will likely need a system-wide water rate increase and/or a decrease in general-fund transfers to cover costs. He also said the city must reduce water loss and bring the Garrison Road well online as a consistent supply. Musselwhite and staff are still obtaining bids for SCADA upgrades and exploring fiber options with HEMC.
On lead service-line inventory (LSLI) work tied to a GEFA grant, Musselwhite reported bids ranged widely (including one bid of about $117,000 that did not meet the RFP and other bids up to $2.7 million) while the GEFA grant available is $100,000. Staff recommended rejecting the initial bids, consulting GEFA about additional funds and rebidding so internal crews could complete some work and protect grant eligibility. The transcript notes the low bid did not fulfill the RFP requirements and that completion by staff could miss grant timing.
The work session included no formal vote on rates or capital projects. Staff described next steps as obtaining compliant bids, consulting GEFA on grant scope, reducing unaccounted-for water, and developing rate options for council consideration.
