HIAWASSEE COUNCIL WORK SESSION AGENDA/MINUTES February 23rd, 2026 6 pm

BROADCAST VIA FACEBOOK LIVE       SITE: CITY OF HIAWASSEE
OPEN TO PUBLIC – February 23rd, 2026 6pm

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

1. Call to Order

1.1. Invocation – Nancy Noblet
1.2. Pledge of Allegiance
1.3. Approval agenda as distributed

2. Consent Agenda

2.1. Minutes of February 3, 2026 Council Meeting
2.2. February 23, 2026 Work Session
2.3. December 2025 financials

3. Mayor’s Report

4. Capital Improvement Plan – Fletcher Holiday of Engineering Management

5. Alcohol licenses for Mama’s Concierge and Hiawassee Package under new ownership – (Should this go on the consent agenda?)

6. Budget policy/financial policy – any changes needed?

7. IWORQ Building Permitting and Code Enforcement software ($3,800 annual subscription, implementation and set up $2,500 – total for first year $6,300)

8. Fire Alarm system at City Hall ($12,480.99)

9. 2026 Watershed Protection Plan contract with EMI ($27,752.00)

10. Department Head Report – Carl Grizzle/Ryan Osborn

11. Public Comment

12. Executive session

13. Adjournment

COUNCIL WORK SESSION MINUTES 

February 23rd, 2026 6pm

Action Items

• @EMI – Investigate Gage Drive pressure issues onsite – Scheduled for tomorrow at 12:00 PM.

• @EMI (Fletcher Holiday) – Restart the previously approved engineering study from March 13, 2024 to assess lift station capacity and system flows – [No due date mentioned].

• @Mayor – Follow up with the campground contact the next morning to update on study status and next steps – [No due date mentioned].

• @City Leadership – Evaluate current agreement with Towns County Water and Sewer Authority to ensure capacity for future growth – [No due date mentioned].

• @Mayor and @City Attorney – Complete evaluation of identified connections and generate list for corrections – [No due date mentioned].

• @Public Works (Carl Grizzle and Ryan Osborn) – Source additional prices on used trailers and email them to the group for consideration – [No due date mentioned].

• @Council – Vote at next meeting on whether to table budget and financial policies for one month – Due date: next meeting.

• @Council – Decide whether to include City Hall fire alarm replacement in next year’s budget and pursue additional bids – Due date: Tuesday night meeting.

• @Council – Put alcohol ordinance amendments on first read next Tuesday; discuss in next work session; target adoption next month – [No specific dates provided].

Key Decisions

• Acceptance of existing work at the Jehovah’s Witness site and plan to connect directly into the force main with a grinder installation – Rationale: Final meeting concluded “what was done is done” and characterized as positive.

• Consent agenda items listed for approval (meeting minutes, financials, and PBC loan payment) proceeded following motion and vote – Rationale: Routine approvals with acknowledgement during agenda proceedings.

Detailed Minutes

The Hiawassee City Council met in the Upstairs Training Room at City Hall on February 23, 2026, at 6:00PM. 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 Nancy Noblet, Jeff Scott, Scott Benton and Jonathan Wilson. Council member Andrea Bell was present via phone. Staff present were Economic Development Director Lily Ponitz, Police Chief Paul Smith, Police Officer Jose Carvajal, City Attorney Thomas Mitchell, Water Department staff Carl Grizzle, Ryan Osborn, Water Treatment Plant Manager Andrew Sims, Sewer department manager Clint Royce and Court Clerk Sheryl Branson.

 

Meeting opens with invocation, Pledge, and request to approve agenda items.

• Opening prayer asks for guidance in city decision-making and a positive mindset.

• Pledge of Allegiance is recited.

• Chair requests approval of the day’s agenda items. It was first approved by Nancy Noblet and seconded by Scott Benton with all in favor.

Agenda approvals proceed; USA hockey team congratulated; consent agenda outlined.

• Motion and second for approval; vote called (“All in favor?”).

• Congratulations noted for USA hockey team winning gold.

• Consent agenda items listed: Feb 3, 2026 council minutes; Feb 23, 2026 work session minutes; Dec 2025 financials; payment to PBC loan for loss of $26,132.18.

• Transition to Mayor’s Report; introduces special guest Fletcher Holiday (EMI).

Water system update: recent leaks and Gage Drive pressure issues; EMI scheduled to investigate.

• Multiple small leaks; most significant on Shake Rag; additional leaks on Gage Drive.

• Pressure issues on Gage Drive: first house on right has problems; first house on left does not; homeowner alleges PRVs are being damaged.

• Action Item: @EMI – Investigate Gage Drive pressure issues onsite – Scheduled for tomorrow at 12:00 PM.

• Ongoing work with EMC to obtain permanent power to master meters; progress slowed by governmental processes.

Infrastructure projects: Kimsey Ridge pump house, phasing out compound meters, and sewer/water meetings near Benton Street.

• Kimsey Ridge pump house work continues; evaluating pre-engineered vs. stick-built buildings.

• Compound meters nearly eliminated; two remain (nursing home and courthouse); goal is single-read meters everywhere.

• Several meetings over past 3–4 weeks on sewer/water needs near the Jehovah’s Witness location by Benton Street.

Resolution on Jehovah’s Witness sewer connection; proposed 80-site campground on Mining Gap Trail.

• Final meeting outcome: acceptance of existing work (“what was done is done”).

• Plan: connect Jehovah’s Witness site directly into force main and install a grinder; characterized as positive.

• Proposed 80-site campground planned on Mining Gap Trail near/just past the rec station on the right.

Genesis Engineering flags lift station problems; EMI study to restart for Mining Gap capacity.

• Genesis Engineering contacts about another Mining Gap project.

• Major issue: lift stations “are a mess”; currently cannot pump for an 80-site campground.

• March 13, 2024 document indicates EMI was to conduct a study; it was put on hold.

• Action Item: @EMI (Fletcher Holiday) – Restart the previously approved engineering study from March 13, 2024 to assess lift station capacity and system flows.

• Study aims to determine feasible flows, whether to replace or expand the Ridges lift station, and funding responsibilities.

Campground pricing contingent on study; onsite wastewater may be considered.

• Developer seeks connection price; city cannot quote until study completion.

• Possible outcomes: developer may pursue septic or sewer tie-in based on study results.

• Action Item: @Mayor – Follow up with the campground contact the next morning to update on study status and next steps.

Training updates: Mayor and Bonnie complete finance-related courses; community remembrance for Jimmy Wright.

• Mayor attended GMA spring training in municipal finance and a “be kind” class.

• Bonnie completed another financial training course last month (name not recalled).

• Christmas tree planted on Arbor Day to honor Jimmy Wright (former fire and police chief); strong community turnout; Forestry assisted.

Equipment need: proper trailer for larger track hoe; safety and compliance concerns.

• Current trailer being damaged by larger track hoe; Brian to present need.

• Overload and narrow width issues; multiple tire replacements.

• Action Item: @Public Works (Carl Grizzle/Ryan Osborn) – Source additional prices on used trailers and email them to the group for consideration – [No due date mentioned].

GDOT TAP grant background and kickoff; concept phase for sidewalk project.

• Pre-term application for 80% federal TAP grant; 20% local match initially unaffordable.

• Sue Ann Decker (Georgia Transportation Infrastructure Bank) secured state funds to cover the 20% match.

• Kickoff meeting covered scope, schedule, budget.

• Next steps: complete concept and estimate ROW acquisition, utility relocations, construction; share with planning for future funds.

• Estimated funding cited as $800,000 for sidewalks to apartments and Braxton; differing opinions voiced.

Mayor clarifies grant constraints and origin; preference to allocate funds elsewhere.

• Project purpose set by original application; Mayor learned during first week in office; direction largely out of current hands.

• Prior administration likely applied; 20% match (~$800,000) unfunded until state covered it.

• Mayor would prefer using $800,000 elsewhere but acknowledges constraints.

Sidewalk project scope detailed; transition to EMI for water and CIP.

• Scope: sidewalks on Big Sky Drive to apartments (one side of road) and remaining sidewalk from Fire Street to Brasstown Mountain.

• Mayor turns meeting over to Fletcher Holiday (EMI) to discuss water infrastructure and CIP.

EMI introduces CIP intent and linkage to a rate study.

• CIP copies distributed; two council members receive copies.

• Plan to review CIP purpose, operation, benefits, and discuss the rate study following the overview.

CIP overview: asset inventory, life expectancy, regulatory constraints, and major cost estimates.

• CIP inventories water storage tanks, plant, booster stations, distribution lines; wastewater assets include lift stations and collection lines.

• Hiawassee systems serve city and county; wastewater returns to lake, requiring environmental protection.

• Assets detailed with functions, life expectancies, replacement costs; EPD constraints noted; components costly and specialized.

• Estimated improvements: water plant up to $12M; distribution $3M; sanitary sewer a little over $6M; many assets near end-of-life.

CIP analyses: water demand trends, water loss (recent audit shows improvement), and parallel sewer evaluation.

• Evaluations include recommendations and trend analyses (page 13): rising water plant demands; historically increasing water loss.

• Update: recent audit shows decreased water loss due to process changes.

• Sewer analysis: lists 17 lift stations (page 20), lines, and wastewater plant trends.

Sewer observations: flat wastewater flows; I&I during heavy rain cause SSOs and treatment burdens.

• Wastewater flows relatively flat versus growing water demand; sewer service limited to city.

• I&I from stormwater burdens plant and causes SSOs, environmental risks.

• Proposed RV resort area already experiences such issues; needs attention.

• CIP includes Sanitary Sewer Evaluation Survey (page 25) to locate/address I&I.

Initial rate evaluation: non-compliance with AWWA M1; recommend tiered rates by meter size and usage.

• Review includes city agreement with Towns County Water Authority, current rate structure, and AWWA M1 compliance.

• Findings: current rates inconsistent with M1; best practice is tiered rates by meter size and increasing volumetric tiers; higher usage costs more due to infrastructure and operating costs.

Rate equity concern: small residential users overpay; recommendation for thorough rate study.

• Smaller residential users bear disproportionate operating costs.

• Recommendation: complete detailed rate study to rebalance toward larger users paying more consistent with cost causation.

CIP appendices and funding utility; request for council feedback before retreat.

• Appendices include data, spreadsheets, budget projections through 2029, permits, intergovernmental agreements, maps, calculations.

• EMI asks for feedback and plans to revisit at next retreat; CIP can support funding applications (GFA, USDA, ARC, DCA).

Merged: EMI transitions to detailed rate study and emphasizes AWWA basis; funds healthy but expenses rising quickly.

• “There is two hundred and seventy-eight of them.” Transition to the 278-page rate study.

• Recommendations based on AWWA M1 principles; methodology addresses costs, demand, expenditures, and revenue.

• Current water and sewer funds are in good health with about $1M net revenue annually projected for the next four years.

Operating costs surge, particularly at the water treatment plant; aging assets drive capital needs.

• Largest increases at the water treatment plant; 10–15% increases system-wide.

• Many assets at end-of-life; pumps and motors are expensive and specialized.

• Page two shows utility increase percentages over six, five, and three years; combined three-year increases 16–19%.

• Modest projected revenue growth from new water customers (~$38,500/year).

Towns County Water Authority demand approaching allocation; potential peak-season limits in 1–5 years.

• Plant withdrawal allowance 2.04 MGD; 45% (~918,000 gpd) allocated to Towns County Authority; their demand is increasing.

• Capacity limits may be reached during summer peaks within 1–5 years if trends continue.

Permit increase possible, but regulators will likely require reduced water loss first.

• Plant has three 1 MGD filters (3 MGD treatment capacity); withdrawal limited by permit and water loss.

• EPD/TVA may allow increased withdrawal but expect reduction in water loss before approval.

• Water loss sources explained: distribution leaks (higher in mountainous high-pressure systems) and theft (illegal connections, hydrant use).

Recommendation to evaluate county agreement and implement annual rate increases.

• Towns County Authority values continue to increase; ensure sufficient capacity for future growth.

• Action Item: @City Leadership – Evaluate current agreement with Towns County Water and Sewer Authority to ensure capacity for future growth – [No due date].

• Recommendation: adjust user rates by 4–5% yearly to offset rising expenses; cumulative increases may approximate 45% over time due to industry-wide cost growth.

• Aging infrastructure drives significant expenditures.

CIP focus on aging infrastructure: most projects are replacement/rehabilitation.

• Many lift stations, pump stations, and treatment components exceed life expectancy; 13 of 17 CIP projects address replacement/rehabilitation/redundancy; 4 address growth and water loss.

Financial health parameters reviewed for loan/grant readiness.

• Evaluation per AWWA and funding agency standards (GFA, bonds, DCA).

• Metrics: cash flow ratios, operating ratios, debt service coverage, fixed charges coverage, operating/non-operating revenues/expenses.

Merged: Inequities in current rate structure and rising concerns about multi-unit single meters; participant raises a question.

• Inside-city 3/4-inch residential users pay more per equivalent demand than most similar systems.

• Inside-city users pay more than county users, though typically outside users should pay more due to added costs and risks.

• Majority of demand and infrastructure outside city limits; larger users are at far ends, stressing system.

• Uniform consumption rate, high base charges, and few high-volume users result in top users paying significantly less per equivalent volume than typical residential users.

• Hiawassee residents pay slightly more than average Georgia users; may reflect local cost drivers.

• Multiple-unit accounts on single meters undermine base-rate revenue:

  • 30 commercial accounts serve 137 users (mostly inside city).

  • 3 residential accounts serve 8 homes.

  • 2 RV parks total 47 units.

  • 8 multi-unit residential accounts cover 235 units.

• This setup negates intended base-rate revenue; exceptions may apply for large meters in apartments/senior living/RV parks; smaller meters should not serve multiple units.

• “I have a question.” Inquiry signals concern about multi-unit single-meter rate impacts.

Clarification on single-metered multi-unit accounts: higher rate at meter, but costs shared among units.

• Eight multi-unit residential accounts (235 units) are high-volume users and would pay more under usage-based structures.

• Concern: apartment residents on single meters may pay higher rates than individually or sub-metered users; splitting meters would be costly.

• Clarification: While the single meter pays a higher rate, costs are shared; individually metered totals could be greater.

• Note: “Higher rate now because you’re on single meter through no doing.”

Recommendations to separate accounts and evaluate meter sizing; estimated revenue impacts.

• Recommendation: Break 30 commercial and 3 residential multi-user accounts into separate accounts; avoid breaking retirement/senior living homes; evaluate meter sizes for these and RV systems.

• Estimated revenue impacts: +$47,000 (low-end use) to +$142,000 (high-end use).

• Ongoing discussions with mayor and city attorney; connections being evaluated and listed.

• Action Item: @Mayor and @City Attorney – Complete evaluation of identified connections and generate list for corrections – [No due date].

Rate study recommendations: three alternatives plus no-action option to better allocate costs by customer class.

• Objective: better allocation of system costs by usage volume, considering class demand, revenue distribution, affordability, and bill comparisons.

• “No Action”: keep current structure; increase rates by 4–5% annually.

Rationale and financing examples for 4–5% annual increases to support capital improvements.

• 4–5% increases help fund about $1M in needed CIP improvements.

• Funding via rate revenue, grants, GFO loan, bonds.

• Example (Water 2027): 4–5% yields ~$1.5M water revenue; finance up to $3.4M in improvements with 1.2 cash flow ratio (meets GFOA).

• Wastewater similar: ~$700k; combined up to ~$4.6M while maintaining cash flow.

• Examples are illustrative, not prescriptive.

Alternative 1: AWWA cost-of-service allocation with tiers, meter-based charges, base volume change, and category simplification.

• Tiered rates increase per-thousand-gallon charges with higher usage.

• Larger meters pay more up front; base volume changes from 1,200 to 2,000 gallons.

• Eliminate “towns county” and “North Carolina” categories; retain inside/outside; keep below/above booster pump differentiation.

• Revenue impacts: Water +$30,000 above $1.5M baseline; Sewer +$47,000.

Alternative 2 (add tiers, keep base charges) and Alternative 3 (fund ~75% of CIP with ~23–24% increase).

• Alt 2: keep base charges; add tiers; base volume changes to 2,000 gallons (volume only).

• Revenue impacts: Water +$81,000 above original increase to $4.4M; Sewer +$136,000.

• Alt 3: funds ~75% of CIP (~$8M) with ~23–24% increase; not recommended, illustrative.

Details of Alternative 1 and 2 tiers; long-term capital option summary.

• Alt 1: meter-size cost assignment; below/above booster retained; categories simplified; tiered usage rates (e.g., 2,000–5,000 gal: $6.80; 5,000–10,000: $7.42; 10,000–50,000: $8.03; higher tiers continue; similar for sewer).

• Alt 2: keep base charges; add tiers for water and sewer.

• Long-term capital option: funds ~75% of CIP, ~22% water and 4% sewer increases.

Bill impact comparisons across user classes and peer cities; high-volume users increase, typical users decrease or stay near current.

• Page 14 comparisons across classifications and five similar cities.

• City resident (avg 2,367 gal): Current $69.98; Alt 1 $56.86; Alt 2 $57.99; Long-term capital $65.40.

• County resident: Current $86.01; Alt 1 $80.81; Alt 2 $77.00; Long-term capital $87.00.

• City commercial: Current $228.00; Alt 1 $203.00; Alt 2 $219.00; Long-term $242.00.

• County commercial: Current $474.00; Alt 1 $256.00; Alt 2 $245.00; Long-term $448.00.

• High users show increases (specific examples listed with higher totals); comparable city rates provided for context.

Rate study conclusion; detailed data availability; request additional breakdowns as needed.

• Alternatives presented for consideration; EMI can provide more info and answer questions.

• Detailed data included in final pages (e.g., Alt 2 revenue by customer).

• Each alternative supports operations and a portion of CIP depending on desired improvements.

Next steps: review at next CIP retreat; offer tailored bill figures for specific scenarios.

• Plan to reach consensus at next CIP retreat after review and Q&A.

• Invitation to request tailored scenarios (e.g., churches); ongoing “what if” coordination with Fletcher.

Operational updates: reduced water loss through leak detection and metering; appreciation for field staff.

• Leaks addressed; master meters installed; continuous leak detection.

• Water loss decreased relative to prior years; improvement notable given limited staff.

• Appreciation expressed for crews.

Transition to alcohol licenses; consent agenda handling.

• Next item: Alcohol licenses for “Mama’s Concierge” and “Hiawassee Package” (new ownership).

• Proposal to place on consent agenda; plan to vote Tuesday night.

Budget and financial policy annual adoption; request to table for one month.

• Annual adoption required; recent audit “non-remarkable.”

• Request to table until next meeting for further review; caution not to delay beyond a month (budget season).

• Action Item: @Council – Vote at next meeting on whether to table budget and 

IWORQ building permit/code enforcement software proposal.

• Costs: $3,800 annual subscription + $2,500 implementation/setup = $6,300 first year.

• Includes land disturbance and mountain protection permits; funded by general fund.

• Improves tracking/scheduling and inspector logging; question remains on automatic reporting to permit holder.

City Hall fire alarm replacement: preliminary bid and budget planning.

• City Hall lacks a functioning fire alarm; system hasn’t worked in ~20 years; antique.

• Preliminary bid from Ford Security: $12,480.99; additional bids to be sought.

• Tuesday night decision needed on budgeting for next year.

• Action Item: @Council – Decide whether to include City Hall fire alarm replacement in next year’s budget and pursue additional bids – Due date: Tuesday night meeting.

Merged: Mandatory Watershed Protection Plan contract and overview of program requirements.

• “That’s something we do not have a choice on doing.” Contract: 2026 Watershed Protection Plan with EMI for $27,752.00; required.

• Overview: EPA oversight; EPD implementation; municipalities with wastewater plants discharging to potential potable water streams must have a watershed protection plan.

• Plan evaluates entire watershed feeding the lake; assesses potential contaminant sources (development, agriculture, livestock, industrial/municipal waste).

• Field sampling and analyses include biological (macro/microinvertebrates, fish shocking, habitat, pebble counts) and chemical (BOD, TSS, phosphorus, fecal coliform, E. coli, pesticide/herbicide/industrial contaminants).

• Plan submission to EPD includes educational practices, prevention criteria, long-term monitoring, and annual reporting with dry/wet weather sampling.

• If conditions worsen, report outlines corrective measures and recommendations; annual comprehensive document submitted to EPD.

Transition to department head reports; address audio logistics.

• Next agenda item: department head report.

• Audio/hearing issues; request for speaker to move forward; suggestion to display a picture.

Public works request: new trailer due to overload and safety concerns.

• Current trailer payload 10,500 lbs vs. track hoe 12,535 lbs; rapid wear and safety risks; trailer too narrow.

• Replacement option: 20,000 lb GVWR, 15,745 lb payload, wider; quoted $14,145 with government discount.

• Procurement discussion: consider used trailer; difficulty in obtaining quotes; low trade-in value expected.

• Action Item: @Public Works (Carl Turner) – Source additional prices on used trailers and email them to the group for consideration – [No due date mentioned].

• Emphasis: Need is necessary for safety and compliance (DOT concerns).

Water system status after recent freeze; planned maintenance.

• System generally good; freeze manageable compared to last year’s outage.

• Some meters may have frozen/busted; plan to replace meter bottoms where applicable.

• New fire hydrants acquired for installation; paving scheduled with manhole raises.

Upcoming alcohol ordinance amendments: tastings and boutique wine sales.

• First reading next Tuesday; drafts not ready at this meeting.

• Plan: first read next Tuesday, discuss at next work session, aim for adoption next month.

• Amendments allow tasting events under state rules and boutique wine package sales where legal; current ordinance lacks provisions.

• Action Item: @Council – Put alcohol ordinance amendments on first read next Tuesday; discuss in next work session; target adoption next month – [No specific dates provided].

] Meeting adjournment.

• No executive session required.

• Motion to adjourn 1st by Nancy Noblet; 2nd by Jeff Scott; all in favor to adjourn.

• Meeting ended at 7:22 pm.