Council Endorses Water Merger Talks; Financial Chief Resigns

The Canton City Council is meeting at . Among the items on the agenda:

• The second reading of an ordinance that spells out the annual pay of the mayor and council. If passed, each council member will receive $2,100 and the mayor will receive $3,000.
• An agreement with the Cherokee Youth Football Association. Last month, . The league will be able to use the "grassed area lying within the walking track" Mondays, Tuesdays and Thursdays from 6 to 8:30 p.m. until the last week in November. Although city parks director David Cangemi opposed the use of rubber and metal cleats, the contract allows rubber ones.
• The second reading of an .
• The second reading of a ordinance that sets the ad valorem tax rate at 6.80 mills.

Additionally, the council will hear reports on the , , the remaining expenses for the Hickory Log Creek Reservoir and the .

Canton-Sixes Patch editor Rodney Thrash is at the meeting. Follow his live updates on Twitter (@CantonSxesPatch), and we'll compile those messages here a few minutes later for further contemplation and comment.

6:07 p.m.: Speaker 1: I got a $500 water bill this month. A glitch has affected 700 city of Canton utility customers and resulted in erroneous bills.

6:12 p.m.: Speaker 2 from Mountain Conservation Trust talks about an Etowah Park boat launch. "Finally, you guys have settled on a good site. We have $25K we are going to contribute."

6:13 p.m.: Council member Bill Bryan reads motion expressing council's support for boat launch on Etowah Park. There will be no cost to the city. Beresford seconds.

6:16 p.m.: Bryan says several organizations, the Upper Etowah River Alliance included, are partnering to make the boat launch happen.

6:17 p.m.: The actual construction shouldn't take more than a week, Bryan said. "Most of the money will be left over after the construction is finished," he said. "We'll get to build a second one at Boling Park."

6:21 p.m.: All members, except an absent Amelia Rose, voted for the motion.

6:23 p.m.: Council moves on to consent agenda, which includes an ordinance on council compensation and an agreement with the Cherokee Youth Football Association.

6:24 p.m.: The consent agenda is approved.

6:25 p.m.: Next up: the city's revamped alcohol ordinance. Sales to minors prompted the city to evaluate and amend the ordinance. It stipulates a 50-50 food-to-alcohol ratio. Bryan wants to amend that to 60-40.

6:28 p.m.: Ordinance is approved with Bryan's amendment. Beresford, Goodwin and Bryan voted in favor. Tanner and Rush did not.

6:29 p.m.: Council member Bob Rush said he's "disappointed with the proposed budget. I don't feel we're providing the citizens of Canton with the services they deserve." The general fund is $10,101,911.

6:30 p.m.: He cites the need for additional fire stations. The city's ISO rating, which determines insurance rates, is at risk if one isn't built.

6:31 p.m.: He also cites the elimination of repairs to the fire station.

6:33 p.m.: Beresford has the floor. "End of the year, we could have monies that we can put into that fund," he said. He was referring to the reserve fund.

6:34 p.m.: "We have $17K earmarked for Christmas bonus," he said. "I think we need to take that $17K out."

6:36 p.m.: "We need to be as conservative with this budget as can be," Mayor Gene Hobgood. "I think we're doing well by not increasing the millage rate at this time."

6:38 p.m.: Council member Jack Goodwin wants voters to decide if the city should get rid of the Hickory Log Creek Reservoir, which is not finished. City officials don't know how much it will cost to pay for leftover work.

6:40 p.m.: Bryan said he's not going to support Beresford's motion to take away Christmas bonuses from city employees. They're already not receiving cost of living increases.

6:43 p.m.: "I do appreciate the hard work our people do," Beresford said. "It's a small token of what we're trying to do and use the citizen's money as best we can."

6:44 p.m.: Amendment failed. All members voted no except for Beresford.

6:45 p.m.: The general fund is not in bad shape, city manager Scott Wood said. "We need to pay attention to this water and sewer fund."

6:46 p.m.: Water and sewer funds expected to fall $1.7 million short after the recent water rate hike over two years. That's both in 2011 and 2012. Options include additional rate hikes, transfers from other funds, merging with Cherokee W&S.

6:47 p.m.: Budget passes with support from everyone except Rush.

6:48 p.m.: This is the budget ordinance council members just approved. http://twitpic.com/6855pq

6:54 p.m.: The council is now discussing the city collection site. In 2011, Canton lost $19K. From May to June, after the rate hike, the city lost $11K.

6:56 p.m.: "It's a good service," Hobgood said. "It may help the city avoid some littering, but we may have to ultimately shut it down."

6:57 p.m.: "While we shouldn't lose money," Bryan said, "there's more to it than the money thing."

6:58 p.m.: "I think we may be losing money on some of those large trucks coming in because we charge less," Goodwin said. "They'll drive from Cobb County and wherever to (bring trash) here."

7:01 p.m.: Beresford wants to modify motion to approve rates as is and limit use of the collection site to Canton residents only.

7:03 p.m.: Rates will go from $20-$30-$40 to $30-$40-$50, Wood said.

7:05 p.m.: The new rates will be $30 per vehicle, an additional $40 for trailers, and $50 for box trucks. New rates passed by a 3-2 vote with Rush and Tanner dissenting. Collection site will be limited to city of Canton residents.

7:07 p.m.: "I don't think we ought to use reservoir bond money for other projects," Hobgood said. He was referring to the fact that he didn't want to pay for projects that the money was not intended for. The council is discussing remaining projects related to the reservoir and the schedule for completion.

7:13 p.m.: Bryan wants to apply the bond money intended to pay off the reservoir to pay for projects that weren't allowed in the current agreement. Makes motion to modify the bond agreement.

7:15 p.m.: Reservoir office will be completed in Aug. 2012. Electrical repairs are also included in the upgrades.

7:17 p.m.: Beresford said by amending the bond agreement, the city is essentially voting for a back-door millage rate increase.

7:19 p.m.: All members voted for the motion except for Beresford.

7:22 p.m.: Hobgood makes reference to water billing errors, the result of a conversion to a new city billing system. He's providing an update.

7:26 p.m.: Beresford: "Are we giving a moratorium on these bills? What program are we doing to let the resident know that this bill is in question? Do we have any place for that?"

7:26 p.m.: Hobgood said the city has talked about "the possibility of taking last year's three months usage on the average and billing them one month on that rate."

7:36 p.m.: Motion on the floor is to allow Wood to make adjustments to the questionable bills. Motion passes.

7:37 p.m.: Wood discusses status of streetscape projects:

• Hickory Flat and Waleska: Council will be asked to approve Georgia DOT contract in September.
• Marietta Road: DOT is reviewing the final plans.

7:39 p.m.: Now he discusses status of the city hall roof. Recommendation to city expected in Sept., Wood said.

7:43 p.m.: Update on Etowah River Park, which is on hold: Pursue other land that would be much better and move forward with that, Hobgood said. He said there are other sites that the city ought to be able to look at a reasonable price. Cost: $1.5 million. Size: About 25 acres.

7:45 p.m.: City managers report: Authorize contract between city and DOT on Hickory Flat and Waleska streetscape project. Council approves.

7:50 p.m.: Wood said EPD will allow city to operate wastewater plant with increased flow limits. Allen Pond work is complete, he added.

7:50 p.m.: The Fairways at Canton golf course is having its formal grand opening on Aug. 27, Wood said. CFO Scott Price submitted resignation this morning.

7:52 p.m.: Mayor Hobgood talking about proposed plan to get out of the water business now.

7:53 p.m. The Cherokee Water and Sewerage Authority would take over water plant, sewer plant. Canton would buy wholesale from them. Cobb would relieve city of future debt. City would maintain the water and distribution system. Authority has asked for a memorandum of understanding. Cobb would get 100 percent decision making capacity.

7:58 p.m.: Bryan's asks council to affirm and support memo of understanding between Cherokee, Cobb and Canton. He says its a step to resolve water woes with reservoir. Nothing in the memo is binding. All it's saying is it's assuring our two potential partners the city will seriously consider merger.

8:06 p.m.: Hobgood said memo wouldn't exclude pursuit of other options. But the focal point will be the merger with Cherokee and Cobb-Marietta.

8:06 p.m.: Council approves memo of understanding to seriously pursue merger. Again, it's not binding. Meeting adjourned.