No Deal on Water Contract Between City and Forsyth, Yet

Cumming City Council rejected Forsyth County's latest proposal on water rates, with Mayor H. Ford Gravitt calling it "worst than the other" county proposal. Just days remain before the current contract for the city to supply the county with water expires.

Gravitt recommended to council that the county's May 18 proposal be rejected and in a 4-0 vote, it was.

Councilman Ralph Perry was absent due to a hospital stay following recent surgery.

, as the Mayor promises not to shut down the pipes supplying the county with water.

In response to the city's latest proposal sent to the county on May 7, the Forsyth County Board of Commissioners rejected that proposal late Tuesday in a 4-0 vote with Commissioner Pete Amos having recused himself.

"It just didn't reflect an offer that the board was simply interested in accepting," said Commissioner Patrick Bell. "In my mind it wasn't rejected with any anger or malice or anything like that. It simply wasn't an offer that I could accept."

The clock continues to tick with only a few days left before the current 25-year contract between the city and the county expires on Saturday, May 26.

 (see below).

He also said he would not have another special called city council meeting this week. But instead he would be available to negotiate with the county today and Thursday, but would not be available on Friday due to a Memorial Day ceremony. The council approved the mayor doing so in a 4-0 vote.

As it stands now, the board of commissioners has reworked their latest proposal dated May 22 for the mayor's review.

"I hope that the mayor will look at this offer (see below)," said Bell. "I'm not hopeful he will accept it. To be honest with you and as a precaution, I'm actually working through, loosely, what could be a counter proposal."

Information on the latest versions of the contract/proposals:

Current Contract (expires May 26)

• 10 cents per 1,000 gallons of raw water.

• $2.43 per 1,000 gallons of treated water.

County Proposal (May 22)

$11.4 Million Outstanding Invoice

• Forsyth County shall tender to the City of Cumming $11,436,450.13 within 30 days of both the City and County approving an Intergovernmental Agreement (“IGA”).

• (1) The full extent of any additional allocation proposed by the Metropolitan North Georgia Water Planning District, May 2009 edition, or (2) 65 percent of any increase, it being the intent of the City and County, that at the point when the maximum capacity of water is flowing through the intake structure, the County’s permitted allocation and/or associated storage capacity shall entitle the County to no less than 68 mgd (million gallons per day).

Treated Water

• Price shall be $2.25 per 1,000 gallons;

• 5-year term, with a 5-year option in the discretion of Forsyth County;

• Inconsistent, contradictory, or already fulfilled terms in the existing Finished Water Agreement shall be stricken.

Raw Water

• Price shall be nearly $.11 per 1,000 gallons;

• 15-year term, with a 15-year option in the discretion of Forsyth County;

• City shall make available to Forsyth County an additional 4.5 million 

• Gallons a day of raw water (based on a 30-day average), from the City’s allocation – to be purchased at the County’s discretion; and,

• Inconsistent, contradictory, or already fulfilled terms in the existing Raw Water Agreement shall be stricken.

City Proposal (May 7)

$11.4 Million Outstanding Invoice

• Payment of the sum of $11,436.450.13, in exchange for the right to up to and including 65 percent of the total daily withdrawal from Cumming's Raw Water Intake Facility on Lake Lanier for a ten year period.

Treated Water

• 5-year contract with two-tiered price structure.

• For the first 3.33 million gallons, based upon a monthly average, at a rate of $2.25 per 1,000 gallons.

• Over 3.33 million gallons, based upon a monthly average, at a rate of $3.50 per 1,000 gallons.

Raw Water

• 10-year contract with two-tiered price structure.

• For the first 3.25 billion gallons of water a year at $.50 per 1,000 gallons used per year.

• Over 3.25 billion gallons of water a year, the price would increase to $.75 per 1,000 gallons.