Contact: Mr. John L. Leach, III, Chairman, Lee County Commission, P.O. Box 924, Leesburg, GA 31763, 912/759-6056, 912/759-3319 (fax)

Mr. Chris Boswell, General Manager, Lee County Utilities Authority, P.O. Box 924, Leesburg, GA 31763, 912/759-6056, 912/759-3319 (fax)

Description of Effort
The Lee County Utilities Authority (Authority), established by an act of the General Assembly in 1992, is a public utility providing treated drinking water and sewer services to the unincorporated areas of Lee County. The purpose of the Authority is twofold: to provide for growth and new development, both commercial and residential and to enhance the water and sewer services provided to established development.

Lee County, located in southwest Georgia, has an estimated population of 20,000. The City of Leesburg, the county seat with a population of 1,452 in 1990, and Smithville are the only incorporated communities in the county. Lee County, especially the area south of Leesburg, has experienced tremendous growth over the last eight years with a 39 percent gain in population since 1980. In fact, Lee is the fastest growing county in Georgia outside of the metropolitan Atlanta area.

The Lee County Board of Commissioners realized in the early 1990s that the county could not grow and provide needed community services without the construction of a countywide water utility. Issues associated with the development of the county's first large shopping complex triggered the establishment of the Authority. After setting a fairly high connection fee, the private company providing service to the area where the complex was to be located was unable to provide the water and sewer services it had offered during the shopping complex planning phase. As a result, the county had to step in to assure the provision of needed services.

Since its creation, the Authority has developed a water utility system that consists of newly built water and sewer lines combined with the acquisition of 11 privately owned systems. Three of the private systems operate as they were purchased and nine others were eliminated through water main connections to the Authority's system.

One of the nine acquired, comprised of one wastewater and four water systems, was the private system that serviced the unincorporated area where the shopping complex was located. It was purchased only after a legal condemnation case was completed, the first of its kind in the State of Georgia.

Managerial Considerations
In 1994, the Authority with the backing of the County Board of Commissioners decided to condemn the privately owned system through its power of eminent domain. The county had become uncomfortable with the degree to which a private company could dictate growth in the county's prime future development area. Its reasoning was further supported when after the floods of 1994, the private system's main groundwater well was found to be under the influence of surface water and failed to meet standards. Over four years of negotiations ultimately led to the condemnation and purchase of the privately owned sewer and water system. These actions have allowed Lee County to attract several new commercial businesses and to develop a utility that provides a full range of services including adequate fire protection.

A seven-member board governs the Authority and appoints a general manager responsible for daily operation and administration of the utility. The chairman of the Authority Board is also the Chairman of the Lee County Board of Commissioners. The vice-chairman of the Board of Commissioners is a member-at-large on the Authority. The terms of these offices run concurrently, while the remaining five members are appointed by the county commissioners and serve four-year terms.

The Authority and the Lee County Commission spearheaded the private system acquisition activities and remain accountable for its actions and results. The Authority and county commission worked together again in 1997 to draft local legislation that became an amendment to the state authorizing legislation, which strengthened the Authority's powers to condemn and to control right-of-ways and easements. The Lee County Chamber of Commerce has been active in supporting the effort from the beginning and continues to share resources. Community stakeholders have remained involved through scheduled meetings of the county commission and the Authority board and through special meetings of the Authority.

Technical Considerations
Prior to the formation of the Authority, there were approximately 32 small private-owned water supply and wastewater systems that served unincorporated Lee County. Leesburg operates a small water supply system and Smithville operates a wastewater treatment system. Five groundwater wells serve as the Authority's drinking water source, three are primary supplies and two are used during drought. The Authority has one wastewater treatment plant and treated discharges are released into a creek.

Additional training and certification of personnel and employment of personnel with specific technical skills was needed to manage the new system as it expanded. Specific technical information that supported the acquisition activities was gathered from the Internet and the American Water Works Association and through the employment of an appraiser. Technical assistance was received from a consulting engineering firm, the Environmental Protection Division, Georgia Water and Pollution Control Association, and the Georgia Rural Water Association, while specific tools included the use of Geographic Information Systems and surveying activities.

The Authority's rules and regulations, which exceed state and federal requirements for water system services, were adopted by the county and included in its local standards and codes as a Land Development Ordinance. The ordinance includes provisions for water, sewer, and solid waste services and zoning and subdivision regulations. It also stipulates that the Authority must approve construction of new private water and sewer systems or expansions to existing systems.

The administrative staff and the respective boards of the Authority and the county planning department work together to link the provision of water and sewer services to the comprehensive planning process. In 1993, the consulting engineer completed a comprehensive water and sewer system plan, which was updated in 1998. The Authority adopted the plan that includes a scheduled build-out of water and sewer lines, elevated storage tanks and other facilities to service the county. The plan supports the capital improvement budget by strategically developing the system. The capital improvement budget then identifies and prioritizes system needs and organizes the search for funds.

Financial Considerations
The condemnation process was resolved after four years of negotiating a purchase price for the private system. The Authority's consultant appraised the value of the system at around $4.5 million, while the owners valued the system at between $10 - $11 million. However, both sides agreed to accept the monetary value ruling of a Special Master rather than taking the case to Superior Court. The mediator established the system's value at $6,900,000 and the Authority took possession of the private system June 19, 1998.

In 1994 the Authority issued bonds to purchase some of the private systems and to build the remaining water and sewer system in unincorporated Lee County. The Authority issued $12 million in bonds in 1998 to pay the purchase price for the condemned private system and to build a second wastewater treatment plant. Other sources of funding include a Georgia Environmental Facility Authority loan that paid for a new groundwater well and the Authority has applied for an Employment Incentive Program grant from the Department of Community Affairs that is expected to attract new business employment opportunities when the system is further expanded.

A cost of service analysis was used to design the rate structure, which along with some county funds is adequate to support the Authority's current and future operations. However, a contractual arrangement between the Authority and the Lee County Commission ensures that the county will supply funds to offset the debt if the Authority is unable to make payment. The Authority's 1998 annual budget for debt service and operations was $1,600,000; it is expected to exceed $2 million this year.

Outcomes
Establishment of the Authority and acquisition of the private systems has made available to Lee County a water and sewer system that encourages growth, enhances services, and assures the health, safety, and welfare of its citizens. Employment of the Authority's general manager, a county administrator, and supporting staff increased the managerial and technical capacity that was needed to carry out the effort.

If the condemnation and acquisition effort were to be repeated, Lee County might have been in a stronger position if it had constructed water and sewer lines in and around the privately owned water systems in the primary growth areas. This action could have limited the growth potential of the private system and allowed the Authority to purchase the private system interest within a realistic and non-controversial margin.

Those involved learned that hard work and taking action through existing networks provide solutions. The local, state, and private sector players organized progressive ideas to increase services in a cost-effective manner. The Authority advises other local officials to get serious about their community's water service potential. The availability of water services affects the ability to attract commercial and industrial business. Without local governmental involvement in community water usage, a water service crisis - be it water quality or development potentials controlled by others - will seriously handicap an area's ability to grow. The Authority's effort produced the comprehensive water management plan and development strategy that helps Lee County look to the future.