JCWSA Contemplates Partnership

Jasper County Water and Sewer Authority members pondered long and hard, during a called meeting last Thursday, about whether to endorse a letter of intent to partner with John Ledford regarding surface water withdrawals from South River.

Discussion about the project initially began a year ago when Thomas Brothers Hydro approached the authority about a partnership regarding surface water withdrawals from the South River, if permitted by the Georgia Dept. of Natural Resources.

Michael and Hoke Thomas currently own the Snapping Shoals property in question but because of recent personal issues have been shopping for a potential partner or buyer, according to authority member Ken McMichael. The Thomas Brothers have met the requirements for an Environmental Protection Division (EPD) permit for withdrawals from the South River with the exception of finding a municipal partner, he added.

Mr. Ledford, a grading contractor from Walton County, entered the scenario this year when he began contemplating purchasing the property from the Thomas Brothers in an effort to bring the project to fruition.

The potential buyer met with authority members during last Thursday’s meeting after a lengthy discussion among themselves to examine several points about the intended project.
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As a partner with Mr. Ledford the authority could obtain 3 million gallons daily or roughly 10 percent of the permitted withdrawal from South River, according to the original letter of intent; the cost to the authority for water could range from $1.50 to $2.50 per thousand gallons; the authority would have the right to sell or assign its share of the production as it pleases with no cost assigned to the authority until it purchases or sells water; the authority would have seats on the board of directors; and the authority would be held harmless from any suit by subsequent investors.

First and foremost, authority members were concerned with the costs, particularly up front, that would be associated with the project. They were also concerned whether potential involvement on this project would hinder their ability to proceed with other water projects.

Upon arrival, Mr. Ledford told authority members that he was an ordinary individual embarking on this project because of his concern for future water needs, not to make a lot of money. Until recently, he said that Loganville had expressed an interest in partnering on the project but suddenly decided against it.

Mr. Ledford estimated the total project at $100 million which includes the purchase of the land from the Thomas Brothers for $40 million with the remainder spent on constructing a 30 million gallon plant and pipe installation.

With regard to finances, Mr. Ledford said he was willing to work with the authority anyway possible if it was the first to come aboard the project. He estimated selling the authority water at $2.00 per thousand gallons.

In terms of a partnership and not just selling to the authority, Mr. Ledford said the ways of providing the up front costs could vary. The authority could provide him with a line of credit from a bank for a portion of their share of ownership of the project or perhaps provide an even smaller portion via check.

Though not completely enamored with all the details associated with a partnership, particularly the cost, authority members expressed a general consensus that there was nothing wrong with negotiating with Mr. Ledford until such time when a permit is either granted or denied by EPD.

Consulting engineer Frank Sherrill urged authority members to be aware of all the factors associated with the project being a viable option.
“Enter into a contract you’ll be comfortable with for the next 40 years,” he said. “Nothing is wrong with negotiating but be aware of what may befall the authority in order to move ahead.”

With regard to any possible legalities with a letter of intent or contract, authority members asked for commentary from attorney Jehan El-Jourbagy who specializes in environmental law. She said that letters of intent were not legally binding but that a time period for a contract, if decided upon, should be stipulated.

After more than two hours of discussion, authority members voted to proceed with rewording the letter of intent as potential buyers of water not partners with a review completed by authority attorney Dan Roberts. Approval or denial of the letter of intent would come before the authority during its regularly scheduled meeting on Tuesday, Jan. 2 at 6 p.m. in the Bank of Monticello Annex.

In other business, authority members welcomed recent appointee Bud Cowan and noted that Ms. El-Jourbagy was on a very short list as a possible appointee to the water authority. Appointments are made by the county commission.

Chairman Brack Pound provided a brief update on the special tax district that was proposed and approved by the county commission last week. Commissioners approved to implement an ordinance that will tax structures within 1,000 feet of a fire hydrant an additional $50 per year. Funds will support the work of water authority.
The chairman also reported that Hightower Engineers made a donation to Habitat for Humanity on behalf of the authority for Christmas.