The Limestone County Water & Sewer Authority may owe the city of Huntsville thousands of dollars in unpaid sewage-treatment expenses, an official told the utility’s board Thursday.

Chief Executive Officer Daryl Williamson explained that following the sale of sewer line to the city of Huntsville, a gentleman’s agreement was made to give Huntsville time to complete services needed to take that part of the system over.

During that time, LCWSA continued to service the sewer system it had already sold. In October 2015, Williamson said Huntsville began accepting the portion of the sewer into its system. However, LCWSA continued collecting a flat fee from residents after the switch was made.

Williamson said Huntsville is now ready to have the conversation with LCWSA and true-up, or put the financials back on an even keel.

“We have not been remitting payment to (Huntsville),” Williamson said.

When asked if he could find a written contract between LCWSA and Huntsville, Williamson said he hasn’t been able to find one. LCWSA officials did, however, find an 18-month transition agreement dated Jan. 19, 2012.

“It’s just another issue we have to work through,” he said.

When asked how much money LCWSA would owe Huntsville, Williamson told the board it could be “six figures.”

Moving forward

Elsewhere Thursday, the LCWSA board discussed how to fill gaps in services left by a decision to part ways with longtime engineer Alton Hethcoat. The board voted last month to terminate its contract with engineering firm Hethcoat and Davis, effective May 30.

Williamson presented two proposals to the board at its regularly scheduled meeting. He explained to board members the LCWSA needs a firm to perform ancillary services, but he also believes the utility needs a strategic plan.

Williamson recommended hiring Decatur-based Pugh Wright McAnally Inc. to perform ancillary services work previously performed by Hethcoat and Davis. He recommended the board sign a 12-month contract with the firm.

Pugh Wright McAnally has performed work for other government utilities, Williamson said, including the city of Athens. He said there are other civil engineering firms in the area, but they don’t have the ancillary services experience.

Board Chairman Jim Moffatt asked how quick the board would need to hire someone, and Williamson replied the utility has no one in-house who can do the work. He asked if it would be possible to hire someone on a temporary basis, which did not sit well with members Johnny Hatchett and Ty Smith. Moffatt also recommended appointing two members of the board to gauge how well the firm worked with the utility. He said the members should report their findings before the board signs a long-term contract.

“I don’t want to get burned,” Moffatt said. “I want to make sure we’ve made the right decision. (The board) employs legal (attorneys), CEO, the engineer and auditor. We need to be comfortable and confident with these people.”

Hatchett said he didn’t see why the board should wait to hire an engineering firm. He said it could take up to two months before a decision could be made, and that he was comfortable with Williamson’s recommendation.

Board members Richard Robinson and John Farrar sided with Moffatt. Robinson told Hatchett that studying up on which firm would work best for the utility protects the board and Williamson.

“I think there’s a need to dig into this further to make sure this is the optimal choice based on some of our past dealings,” he said.

The board ultimately voted 3-2 to hire an engineering firm on a temporary basis. Williamson told the board he had not yet spoken with Pugh Wright McAnally, but he felt confident the firm could perform the required work.

Strategic plan

The board was more open to Williamson’s proposal to hire Franklin, Tennessee-based Inflo Design Group LLC to develop a strategic system plan at an estimated cost of $56,420. The plan will be completed in phases through Dec. 31, though there is an option for an extension.

Williamson told the board he worked with Inflo Design Group through his previous job at Columbia Power & Water Systems in Columbia, Tennessee.

Williamson said flexibility in the timeline is needed because no one is sure how the expiration of a franchise agreement with the city of Huntsville will impact the LCWSA.

The 30-year agreement, which expired May 18, allows Huntsville to exercise an option to purchase — at a depreciated price — a portion of water infrastructure installed by LCWSA in Huntsville-annexed Limestone County. The specific portion spans from south of the CSX line in southern Limestone to Interstate 565.

“I feel like that would be a major factor in the study,” he said.

The board unanimously voted to approve the contract with Inflo to complete the systemwide strategic plan.