HSUD general manager, Jones, reports to board

Wayne Jones, general manager of the Holly Springs Utility since May 2024, reported his priorities for the department and took questions during the Nov. 18 meeting of the mayor and board of aldermen.

He said he wants to focus on three priorities he has for the HSUD.

“There are a lot of things that need to be accomplished at the utility department,” he said. “The three most important things are the right-of-way, getting a new AMI (Automated Meter Reading) system in place and training personnel and hiring new personnel, and training the personnel we have.

“Getting help, as far as local rates are concerned, are things I want to concentrate on for now.” Jones reported on positive million in uncollected funds that were over 90 days past due since Oct. 14. Not quite all of it from Aug. 4, $2,896,000, in uncollected funds have been recovered by the 90-day past due bill collection efforts.

Jones said HSUD has paid TVA for wholesale power for the month of September. He anticipates the October wholesale power bill to TVA will be made in two installments.

He listed his priorities:

• to set aside $500,000 to cut more right-of-way.

• to renew the David Jolly meter reading contract for up to one year.

• to open a contract with Advanced Meter Systems.

• to hire Atwell & Gents as consultants to help bring in a new AMI system.

• to train customer service personnel by accepting free training from MLT Communications. “They do not need access to any of our system or infrastructure (data) to do that training,” Jones said.

• to take on the services of Mitchell Management Consultants to help with plans for local rates.

Ward 1 alderman Bernita Fountain asked if the $150,000 in Payment-in-Lieu-of-Taxes from HSUD will be made to the city since HSUD collected $2 million since October.

“We owe a lot. There are a lot of checks that we still haven’t paid and the idea is that before we can make PILOT taxes, we have to pay all of the expenses for the distribution of power that TVA provides,” Jones said. “That’s all the vendors that we owe money that we haven’t paid that allow us to distribute power. And that’s what the power contract says, so that’s why we haven’t paid the payment-in-lieu-of-taxes.”

Fountain asked if the vendors are recurring bills “or just one bill that is just laying there. Or is this something that we have to pay?”

Jones said some are recurring and some are bills that haven’t been paid.

“I would like to see...” said Ward 4 alderman Patricia Merriweather before being cautioned by board attorney John Keith Perry Jr. that it may need to be discussed in executive session.

“What I am saying though is, can be out here (in open meeting),” Merriweather said. “I want to know are we holding checks, printing them and holding them. Are we still doing that?

“I know we went to $1.5. I was surprised that it was told at a previous meeting that it’s $2.4 million. Are we still printing checks for vendors for our bills and not paying them? Are we still putting checks in a drawer?”

“No, Ma’am,” said Jones. “We have some checks that have been, that are still being held from previously being put in the drawer. But we are not cutting checks now. We do not cut checks unless we know there is money there.”

“Who printed the $150,000 check? That is somewhere. I know the mayor had signed it, but you have not signed it. So where is that (PILOT) check?” Merriweather asked.

“It’s in my office,” Jones said.

“Why are we not paying that check?” Merriweather asked.

“Because it’s the tax equivalency and that, you know...” Jones said.

“That’s executive session,” Perry said.

“It’s in your office,” said Mayor Gipson.

“Yes, Ma’am, it’s in my office,” Jones said.

“So, I hear that quite a bit,” Gipson said. “So, I think we’ve exhausted everything on the agenda that we’ve got. So I will be leaving at 7 p.m. Is there a motion to go into closed session to determine the need for executive session?”

Jones asked if the board would be coming back out of executive session because he was not finished with his report.

“I do want to address No. 2,” Merriweather said. “We need our right-of-way cut and our meters read. So I am not understanding. We need to address what he has legitimately come before us to ask for these things, because the Jolly Meter readers, you need to review that contract. What are your thoughts on that?

“Also, getting Advanced Meter Services for the purpose of meter reading. One of the things you promised us, Mr. Jones. Was that by December you goal was to have our bills delivered to our customers accurately and on time. You are asking us to renew the Jolly Meter company and advanced Meter Reading company?

“I would say my thoughts on No. 1 and 2A, in terms of requesting a motion that HSUD enter into a service agreement, the engineering service about utilizing a new AMI system. I think that is good, but I think that it’s not a priority as much as getting the companies in to help with this meter reading, so we do not hear stories about 32 days or 40 days on these bills.”

“I am going to say, alderman Merriweather, as you talk about or you all consider the Jolly Meter Reading contract, because they had issues,” said Gipson.

She said Jolly had issues and had to be trained – that there was no difference than in hiring someone locally to work part-time to read meters, “people who could be at our disposal (for other tasks).”

She said Jolly used some of HSUD’s equipment, which could be a liability issue.

“They rode with our people the whole time they were here,” Gipson said.

She said the city would have been better off hiring three or four positions for parttime work or as general laborers so they can help where they are needed.

“That’s what I would recommend,” she said.

Merriweather asked what Wayne Jones thinks about hiring people locally to read meters.

“My response is that it could have been done long before I got here,” Jones said. “And we could have had people out there trying to do that. That’s the fact.”

Gipson said she didn’t think hiring contractors to read the meters was a bad idea.

“But once they got here, they didn’t know any more than Johnny off the street, and they had to be trained. They were paid for riding with our people,” Gipson said.

Jones said he had spoken with some local people recommended by Fountain but they didn’t want to work during the week, only on weekends.

“Right now we are only three or four weeks behind, but every day that we don’t have these meter readers, we are subject to get further behind,” Jones said.

He said looking at the data, about 50 percent of the 8,500 meters read by Jolly meant 50 percent more revenue collected because of the readers.

“Without them, we couldn’t be making these payments to TVA,” he said. “The numbers don’t lie.” Gipson changed subjects to the right-of-way team. She said there have been fewer outages since C&M Bush Hogging has been working.

“I don’t want people to think we don’t have a right-of-way team,” she said. “I think anyone who actually lives in Holly Springs knows the improvements that that company has made.”

Jones said he has data to show that HSUD is actually catching up as far as billing is concerned.

Whereas HSUD was 12, 15, 17 days behind in billing, now they are 11 days and five days behind because Jolly Meter Readers started reading at the beginning of October, he said.

“Yes, they had to learn the routes first, but we’re making progress. We continue to make progress,” he said.

He thinks the billing will be caught up before the new year.

“But, if we don’t...” Jones said, before being interrupted by the mayor.

“While we are talking about that, I’ve definitely been thinking about what is called the extender bridge. That actually is the credit as to what helped us get a lot back online to be able to read a lot more meters,” Gipson said.

Jones said the extender bridge on the water tower had been struck by lightening and burned up contributing to the need to read more meters manually.

“So, when you bring that back up, yes, it shows statistically that you have less meters to read. But I can see all that,” Jones said.

Gipson said she had asked Mr. Boga for information so that some bridges could be repaired. She wants to continue to get equipment repaired so the equipment will read the meters, she said, and to make sure what equipment needs to be returned to GE (General Electric) and have in-house people repair what they can.

“I can tell you the status of that, Mayor,” Jones said.

“I’ll wait and hear from Mr. Boga. They are the ones that make sure that I’m receiving accurate, uh, information,” Gipson said.

Fountain asked about the status of the right-of-way money set aside to pay C&M.

“How is that going? I know the work was going good, but we’ve had some outages still,” Fountain said.

Gipson said the contract for right-of-way clearing was advertised – a three or four year contract handled by IMS Engineers.

“It was $3.1 million. We’ve spent about $750,000,” Jones said “How many miles of rightof-way has been cut?” Merriweather asked. “I would like to see some specific, detailed information.” “Let me say, the lights are still on,” Gipson said.

“But that’s not good enough,” said Merriweather. “We want to see detailed information and how this is being documented.”

“That’s interesting,” Gipson said. “C&M, who is actually working, who actually has done their job, who actually kept the lights on. There’s I need more (information). I need more... but Jolly metering, who I’m telling you there’s a problem, and that there’s going to be a problem with, then, and I hear you attorney Perry.” (Executive session).

Merriweather made a motion to give Wayne Jones authority to enter into an up to one year contract with David Jolly meter reading group.

“After being looked over by attorney Perry and approved,” added Fountain.

“Okay,” Merriweather said. “Second,” said Shipp. The motion passed by unanimous approval of the board.

Gipson called for a closed session to determine the need for executive session.

“Well, Mayor, we don’t have department heads. I want to know...have we gotten any recommendations for HR director or a Park and Rec. director?” Fountain asked.

Gipson said some applications have been received but she wants to speak with department heads before bringing those applicants before the board.

Gipson asked again for a motion to go into closed session.

Fountain asked about the $500,000 in ARPA (American Rescue Plan Act) money.

Gipson said she wants it to be spent to repair streets, and there are some limitations on how the funds can be spent.

Gipson said she has to leave the meeting. “I would also like to add to get the sign (Marquee) at the multi-purpose building,” Fountain said.

Gipson said the utilities had been marked but she was told Jones was holding the project up.

“We’ve had fewer outages and I know everybody’s working. Why can’t we get some of these things done?” Fountain asked. “What’s taking so long in delay? Even the potential lease agreement (with the IDA B. Wells Museum) has been a long thing. The sign has been lengthy as well.”

Gipson said Mr. Jones is holding it up.

“I can’t tangle with him every day. That’s easy and simple,” Gipson said.

Department leaders, Mr. Humphreys, Mr. Howell, and Earnest Campbell looked at the site for the Marquee, she said.

“So we talked about what was required. The lease has not been done. I actually talked with Rev. Harris about it for more than two hours. She asked me to wait on it. So we had other things that came up. So, I want to make sure I compare it (the lease) with the others (the leases with the garden clubs).”

“For the record, I didn’t block anything on that project,” Jones said, referring to the Marquee.

Teel said, “In Jones defense, the Marquee was approved two years ago and cannot be his problem.” Gipson turned back to the topic of late payments for TVA for wholesale power, which she said was never late before Jones was hired (in May 2024).

“We definitely had him come out,” she said, regarding the location of the underground utilities for the Marquee.

Teel tried to speak.

“I’m not finished. I’m not calling a scape goat. I’m telling the truth. That we met, that’s been months ago and the weather was nice,” Gipson said.

She said the supervisors were there and department heads to discuss the underground locations for the Marquee.

“So, I’m not making someone a scape goat through this,” Gipson said.

She called again for a closed session and left the board room saying, attorney Perry, if you will call me in the morning.”

“So, I make a motion to approve MLT Communications to partner with the Holly Springs Utility department in a free training based upon their schedule,” Teel said.

“Second,” said Merriweather.

The motion passed by a vote of 3-0 as Shipp was presiding and Ward 2 alderman Andre Jones was not present at the meeting.

The board went into executive session and took no action