Handy Sanitary District

Regular Meeting of the Board

August 15, 2008

Minutes

            Attendees: Norman Hunt-Chairman, Keith Loflin-Secretary, Tim Loflin, Debbi Yarbrough (7:05), Jamie Justice and Ron Niland-All American Associates, Renae Snider-Clerk, Frank Wells-Attorney

          Norman Hunt called the meeting to order and after review of the register, he announced that there were no guests registered to speak.

            Approval of the Minutes: The Board reviewed the July Minutes and Tim Loflin made a motion to approve the Minutes as written. Keith Loflin seconded, passed by the Board 3-0.

            Water Loss Report: Jamie Justice discussed the water loss was at 20% for the month.

            Leak Adjustment Report:  The Board reviewed the leak adjustment report.

            Financial Report: Jamie Justice explained that revenues were at 8% which was right on target for this first month of the fiscal year. He discussed that expenditures were at 11.7% due to one-time capital and insurance purchases, and that he expected them to level off as the fiscal year progressed. The Board questioned whether or not the capital purchases included the trench box and Jamie Justice confirmed that the box was either ordered or that price quotes had come in for it, as well as for the tripod and wench. He also discussed that trucks would likely be the next big purchase.

            Bad Debt List Follow-up: Jamie Justice discussed that this particular customer had a significant size leak and after a renter/landlord dispute over whose responsibility it was to repair, the customer had repaired the leak and requested a payment arrangement. He explained that the customer then discovered that there was more than one leak and that the customer did not live up to his payment arrangement. Jamie Justice discussed that once a payment arrangement is made, the current system does not track the same. He explained that the office will make a procedural change to  track these payment arrangements manually, on a monthly basis. He explained that the first time the customer does not live up to the payment arrangement then the service will be disconnected.  He presented the customer service policy modification which will relieve the customer of the responsibility to call and request another pay arrangement. Tim Loflin made a motion to approve the customer service policy change, as presented. Debbi Yarbrough seconded, passed by the Board 4-0.  

            BLSP/Mandatory connection: Jamie Justice presented the proposed mandatory connection ordinance as well as a rough draft map that outlined the areas that the ordinance would affect. Frank Wells explained that this draft ordinance captured the criteria that the Board had considered at the work session, including the requirements that, 1) the owner of the developed property be served by the District water service or which had such water service on or after November 30, 2005, 2) the developed property abuts the collection line’s utility right of way or abuts a state road’s utility right of way, and 3) the structure in which the sanitary facilities are located is within 1,000 feet of the right of way served by the collection line. He discussed that the ordinance was comparable to similar ordinances from other systems in the state and country and that it matched the statute language. He suggested the Board consider an availability charge instead of a tap fee. The Board discussed and considered this alternative but chose not to have an availability charge because it would not achieve the environmental goals or meet the criteria on loan and/or grant documents, specifically those of the Clean Water Management Trust Fund. The Board discussed and questioned whether customers on Blaine/Badin Lake Road would be able to connect or be affected by the mandatory connection ordinance. Jamie Justice explained that anyone on a transmission line who wanted to connect would have to be determined on a case by case basis, depending on the engineering. Debbi Yarbrough made a motion to adopt the ordinance as written. Tim Loflin seconded, passed in a unanimous vote by the Board 4-0.

Uwharrie Point/Heron Bay Annexation: Jamie Justice explained that the District has received the collection of petitions from Uwharrie Point, which show 77% of property owners in favor of the annexation. He explained that the District is currently waiting on completion of the survey, which is expected by the end of August. Jamie Justice also discussed that Heron Bay has also informed the District that they have over 51% in favor of annexation and are currently in the process of gathering petitions to present to the District. He explained that only one public hearing would have to be held if Heron Bay has presented their signed petitions and the District Board has approved their request for annexation, by the time the District was ready to proceed with Uwharrie Point. Tim Loflin made a motion to proceed with the annexation process of Heron Bay, upon presentation of valid signed petitions and their request to be annexed into the District. Debbi Yarbrough seconded, passed by the Board 4-0.

Illegal connection policy: Jamie Justice explained that Frank Wells is helping to draft up a policy, for the September meeting, that will address illegal connections to the water system.

Town of Denton/Handy customers: Jamie Justice discussed that an agreement has been reached with the Town of Denton, to address the 20+ customers who are provided water by the District but live in the Town limits, which would involve the Town paying the District the difference in the Town’s water rates and the District’s water rates, for these particular customers’ bills. He further explained that the process would involve the District billing these particular customers at the Town’s rates, then providing the amount of difference to the Town, which would then credit this amount to the District on the monthly bill. Tim Loflin made a motion to approve the agreement as discussed. Keith Loflin seconded, passed by the Board 4-0.

BLSP/Budget Amendment Ordinance: Jamie Justice presented the budget amendment ordinance for the Badin Lake Sewer Project and explained that it represented an updated projection of revenues and expenses. He discussed that the new line items on the expenses side include the closing costs, inspection, construction administration, and loan administration. He further discussed the changes to the line items on the revenues side, which included sewer pump sales, the new projected amount of the state revolving loan, new projected amount of tap fees, and no private loan for the District. Jamie Justice also mentioned that this did not include the Rural Center grant that the District had recently applied for, but that if the District was awarded this grant, the state revolving grant amount could then be changed to a lesser amount. Tim Loflin made a motion to adopt the Budget Amendment Ordinance for the Badin Lake Sewer Project, as presented. Keith Loflin seconded, passed by the Board 4-0. The Board questioned when we expected to hear the comments back from NC DENR Construction Grants and Loans and Jamie Justice explained that the 90 days for DENR comments would be up by the end of August, we would respond to the comments from DENR, and then hopefully receive authorization to construct shortly after that.

Denton Chamber of Commerce sponsorship request: The Board reviewed the request to sponsor the autumn festival, but did not take any action.

Waiver of late fee request: Jamie Justice presented a letter from a customer requesting waiver of a late fee he had received. He explained that the District receives similar requests periodically and explained that aside from sticking to the current policy the only option would be if the Board chose to consider the adoption of a policy that would allow a customer with good payment history to receive a once every 12 month waiver of the late fee. The Board discussed and agreed to stick to the original policy and that management should make judgment calls in similar situations in the future.

Manager Updates:    

Loflin Fabrication Project: Jamie Justice discussed that the District has submitted the Tobacco Trust Fund grant application for the Farmpark and the project is on hold until they know whether any funds are granted, which is expected to be by the end of October.

Beaver Dam Creek Bridge Replacement: Jamie Justice explained that the District has met with the construction company for the project and that they have agreed to provide a two week notice so that we can notify by mail the approximately 450 affected customers in Lakeshore, Dixie Shores, Whip-O-Will, and Shamrock. He further discussed that the projected service outage is 1-2 days, and the Board discussed details for the notice to the customers. Jamie Justice also explained that NCDOT should be sending the District a municipal agreement that outlines the upgrade of the pipe under the bridge from PVC to ductile iron. He discussed that the projected cost to the District is $7,500.00.

Uwharrie Point Sewer Blockage: Jamie Justice discussed that a procedural change would occur as a result of the sewer blockage in the forcemain that the District had recently experienced. He explained that this would involve our field staff going out to confirm that the problem was not part of our system, even for customers with Myers pumps, who are not part of the District’s system yet before telling a resident that it is their responsibility.

Albemarle Meeting: Jamie Justice announced that the City of Albemarle had requested a meeting between the two Boards to discuss the possibility of the interconnection between the two systems. He explained that it would be at the water plant on Hwy 49 on August 26^th, at 7:00 PM and that Renae Snider would notify the Board when the date was confirmed.

Astran Drive Project: Jamie Justice confirmed that Withers and Ravenel had begun the engineering of the project, which he explained is being funded by a Clean Water Trust Fund grant through Davidson County.

Mt Ebal Church Road: Jamie Justice discussed that it has been almost six months since the first tap fee was paid and because the check for it was about to expire, he recommended that he send out a letter to the residents that explains that the District has set a deadline to have all four of the tap fees paid or the project will be abandoned. The Board agreed.

Badin Shores Resort: Jamie Justice explained that the water pressure analysis was completed by HUA during the 4^th of July week. He explained that the pressure the District is providing to the Resort was above the minimum required. He explained that HUA recommended that the District wait to see how the improvements to the internal system that BSR is planning to make affects the pressure prior to the District taking any action. The Board also discussed that the meetings that HUA has been having with BSR about the Resort being part of the Badin Lake Sewer Project, have been favorable.

Jamie Justice discussed that the annual financial audit was currently being completed by Steve Scarboro’s office and that the auditor has stated that the audit at this time  is ahead of where it was last year. He also updated the Board that NCDENR is planning a compliance visit with the District in a couple of weeks. He also informed the Board that some field personnel were planning to take certification classes to help the District remain in compliance with NCDENR regulations. Jamie Justice confirmed that the Town of Denton is a few months away from providing the District with figures for water plant improvements, and the Board discussed. Jamie Justice presented a letter from Melanie Goodwin that discussed that the bill to allow Handy to join the state health insurance plan did not move forward in the House for consideration in the short session. He suggested that he reply to the letter and request that she introduce the bill again when the General Assembly reconvenes, and the Board agreed.  

Tim Loflin made a motion to go into closed session to discuss property acquisition for the North Main Line Extension Project and to consult with the attorney on the BSR contract and insurance claims. Debbi Yarbrough seconded, passed by the Board 4-0.

Keith Loflin made a motion to go back into open session, Debbi Yarbrough seconded, passed by the Board 4-0. No action taken.

Debbie Yarbrough made a motion to adjourn the meeting, seconded by Keith Loflin, passed by the Board 4-0.

Adjourned.