HIAWASSEE COUNCIL WORK SESSION AGENDA/MINUTES January 27th, 2026 6pm

BROADCAST VIA FACEBOOK LIVE       SITE: CITY OF HIAWASSEE
OPEN TO PUBLIC – January 27th, 2026 6pm

 Hiawassee City Hall 50 River Street Upstairs Training Room
COUNCIL WORK SESSION AGENDA

1. Call to Order 

1.1.   Invocation – Scott Benton
1.2.   Pledge of Allegiance
1.3.   Approval agenda as distributed

1. Consent Agenda

2.1.   Minutes of December 31, 2025 Special Called Meeting
2.2.   Minutes of January 6, 2026 Council Meeting
2.3.   January 27, 2026 Work Session
2.4.   November 2025 financials
2.5.   Payment of PBC Loan from SPLOST ($26,229.29)

1. Mayor’s Report

1. Capital Improvement Plan – Fletcher Holiday of Engineering Management

1. Budget amendments for Shook House proceeds

1. FY24-25 Audit – no findings

1. Resolution for Lead Service Line Inventory loan (with 100% principal forgiveness)

1. Budget/Financial policies – Thomas Mitchell, Esq.

1. Council representative to the Downtown Development Authority

1. Paving of Omega Way, Overlook Dr. and Lake Ridge Dr.

1. Awarding of Lawn Care Contract

1. Department Head Report – Clint Royce

1. Public Comment

1. Executive session

1. Adjournment

HIAWASSEE CITY COUNCIL

WORK SESSION MINUTES

HIAWASSEE COUNCIL WORK SESSION MINUTES January 27th, 2026

Date: January 27, 2026
Time: 6:00 PM
Location: Hiawassee City Hall upstairs training Room
The meeting was open to the public and broadcast over FaceBook Live.  The meeting was called to order by Mayor Jay Chastain. Present, in addition to the Mayor, were Council members Andrea Bell, Nancy Noblet, Jeff Scott , Scott Benton and Jonathan Wilson. City Attorney Thomas Mitchell, Staff present were Economic Development Director Lily Ponitz, Police Officer Jose Carvajal, City Clerk Bonnie Kendrick and Court Clerk Sheryl Branson.  
The January 27, 2026 work session of the Hiawassee City Council was called to order at 6:00 PM by the Mayor.
The invocation was delivered by Scott Benton.
The Pledge of Allegiance was led by the Mayor.
A motion to approve the agenda as distributed was made first by Nancy Noblet and seconded by Jonathan Wilson with all in favor.
The Mayor reviewed the Consent Agenda that was previously distributed to Council, including:

• Minutes of the December 31, 2025 Special Called Meeting
• Minutes of the January 6, 2026 Regular Council Meeting
• January 27,2026 Work Session
• November 2025 Financials
• Payment of the PBC Loan in the amount of $26,229.29

Mayor’s Report
The Mayor provided a report addressing:

• Impacts of recent winter weather and regional power outages
• City preparedness and protection of water infrastructure
• Ongoing freeze-related concerns, including pump house issues
• Continuous operation of the water plant due to increased demand
• Public reminders regarding leak reporting, spigot protection, and neighbor assistance

Federal Grant Announcement
The Mayor announced that the City of Hiawassee has been awarded a $2,000,000 federal appropriation, pending final approval and execution. The grant is expected to be administered through the EPA and will support water system infrastructure. The Mayor thanked Denise McKay for her work on the grant application.
Konahetah Water System Operations & Infrastructure Update
Council was updated on:

• Ongoing daily leak repairs
• Suspected leak in the Konahetah area and planned valve replacement
• Recent leak near McConnell Church successfully repaired
• Lack of valves in certain system segments and plans for installation
• Fire hydrant replacements (approximately $15,000 requested; two already replaced)
• Supply chain delays affecting hydrant availability
• Capital Improvement Planning (CIP) efforts
• Identification of the clear well as a single point of failure
• Future considerations including zone meters and tiered billing

 Shook House Proceeds – Budget Discussion
Council discussed allocation of remaining Shook House proceeds, noting:

• $84,000 already expended on tank maintenance
• Approximately $225,000 remaining

Potential uses discussed included:

• City infrastructure projects
• Downtown Development Authority (DDA)
• Berrong House

Council agreed additional information was needed, including:

• Budget requests from the Berrong House and DDA
• Cost estimates for city infrastructure projects

Council also expressed a desire that any use of Shook House funds include recognition of the Shook family donation.
A motion was made to table the allocation decision until additional information is received.
 Audit Report – Fiscal Year 2024–2025
Council reviewed the completed audit report, noting:

• No findings
• No need for auditor presentation due to clean audit

Council agreed with accepting the report as presented.
 Resolution – Lead Service Line & Inventory Loan
Council discussed the need to pass a resolution related to a lead service line and inventory loan, which carries 100% forgiveness. Resolution to be considered at next week’s meeting.
Financial, Budget, and Policy Discussion
City Attorney Thomas Mitchell provided an overview of:

• City Charter provisions related to budgeting and expenditures
• Council’s role in adopting budgets and policies
• Mayor’s role in day-to-day administration and purchasing authority
• Department-level budgetary control which is the legal level of control.
• Clarification of the $10,000 procurement limit, noting it primarily applies to non-budgeted purchases
• Distinction between maintenance & operations expenses and capital expenditures
• Emergency repairs and capitalization practices
• Audit reconciliation and fund balance requirements

Council engaged in discussion regarding:

• Line-item overruns
• Budget monitoring timelines
• Capital vs. operational spending
• LMIG Future policy clarification needs

The Mayor advised that departmental “needs, wants, and wishes” lists are being collected and will be provided to Council prior to budget development.
 Council and Committee Role Changes
Proposal for Nancy Noblet to serve as the Downtown Development Authority (DDA) Council Representative.
Scott Benton would assume Nancy Noblet’s former position on the Building and Planning Committee. This will be voted on at the next meeting.
Paving Projects Using LMIG Funds 

• LMIG funds, saved over multiple cycles, will be used for paving projects.
• Total available funds are approximately $70,000 after the next grant.
• Planned projects: Omega Way, Overlook Drive, and Lake Ridge Drive.

o   Omega Way: 1375 ft x 12ft, bid at $35,000
o   Lake Ridge Drive: 561 ft x 10 ft, bid at $9,000.
o   Overlook Drive: 512 ft, bid at $11,500.

• Additional bids are expected; all bids will be provided to the council in writing.

If funds remain, a decision is needed between paving Hiawassee Estates or repairing a 100-foot collapsing section of Bell Street.
Lawn Care Contract

• Two bids received:

o   Underwoods Outdoor Worx (local): $25,000.
o   CHEK Lawns LLC: $28,930.
This will be voted on at the meeting next week.
Sewer Plant Control Panel and Filter System Upgrade.

• The sewer plant’s control panel is obsolete; parts are no longer manufactured.
• The “brain” of the panel is the last known unit, posing a significant risk of plant failure if it fails.
• New panel from Aqua Aerobics costs $69,800; this was not budgeted.
• Proposed to use unspent funds from previous years to cover the cost.
• The filtration system is also a weak point, with leaks and rust; a quote for new filters will be obtained.
• Possible opportunity to purchase discounted filter units manufactured for an abandoned bid.
• The new panel is expandable for future needs.
• This upgrade is considered crucial, taking priority over projects like a new building.

The council agreed the water treatment facility’s infrastructure is a top priority.
 There were no public comments
There was no need to go into executive session. Motion made to adjourn first by Nancy Noblet and seconded by Jonathan Wilson, with all in favor.
Meeting adjourned at 7:56 pm