Handy Sanitary District

Regular Meeting of the Board

February 14, 2008

Minutes

Attendees: Norman Hunt-Chairman, Ronnie Harrison, Tim Loflin, Ron Niland, Jamie Justice, Frank Wells-Attorney, Renae Snider-Clerk to the Board, Fred Hobbs, Ben Chewning, Wes Carter-HUA Representatives, Debbi Yarbrough (11:15 AM)

Guests: see attached list

Norman Hunt called the meeting to order and the guests were registered. Upon review of the register, he announced that one guest had requested to speak. Dennis Garner discussed that the residents on Mt. Ebal Church Rd. had completed applications for a USDA grant to fund a water line extension. He explained that he had met with a USDA representative who had told him, more or less, that none of the applicants would qualify for a grant. He inquired if there were any other options available to get water service out to Mt. Ebal Church Rd. Ron Niland discussed with the Board that five of the eight residents on the road had requested service with Handy and that Allen Hart with USDA had indicated that only one or two of those may qualify for a loan or grant, but that we had not received final word on that yet. He discussed that the total cost estimate for the line extension off of Sexton Rd. was between $5,600.00 and $8,500.00 and explained that one of the elderly residents, whose well had went dry, was on kidney dialysis. Ron Niland suggested that the District require at least four of the residents sign up and pay for tap fees and then go ahead and run the extension. He discussed that the payback on the line would probably be under seven years. The Board discussed and questioned Frank Wells on legalities. Ronnie Harrison made a motion to approve the extension upon the four tap sign ups. Tim Loflin seconded, passed by the Board 4-0.

Approval of the Minutes: The Board reviewed the January Minutes and Tim Loflin made a motion to approve the Minutes as written. Ronnie Harrison seconded, passed by the Board 4-0.

HUA Update on Projects: Fred Hobbs first discussed the water pressure testing that HUA had completed at the Badin Shores Resort meter. Discussion followed about the meeting scheduled with BSR Board for 2:00, and Ron Niland recommended that Fred Hobbs advise their Board that the pressure the District is providing does meet all state standards, but that the District is interested in working with the Resort to improve their pressure. Fred Hobbs agreed and discussed that the Resort may want to consider putting a pump inside the gates and that the District may want to consider when the Uwharrie Point tank starts to refill.

The Board held a closed session to discuss contract negotiations with Badin Shores Resort. The motion was made by Tim Loflin and seconded by Debbi Yarbrough. Passed by the Board 4-0.

Randolph County: Fred Hobbs suggested that if the Board was interested in pursuing being a part of a project with providing parts of Randolph County with water, they should authorize Ron Niland to discuss possibilities with Randolph County’s manager.

Financial Report: Ron Niland presented the monthly financial report and stated that the District is in sound financial shape in regards to revenues versus expenditures.

Water Loss Report: Ron Niland discussed that loss was up for the month and that the field had repaired two major leaks.

Budget Retreat: Ron Niland recommended that the Board plan to set aside about 4 hours or so for the annual budget retreat, sometime in late March or early April. He advised Renae Snider to check into getting several available dates and stated that he would have them at the next Board meeting.

Leak Adjustment Report: Ron Niland presented the adjustments made for the month and the Board reviewed.

HUA Invoices: The Board reviewed several invoices that were not part of any contracts with HUA, and agreed to authorize the District staff to pay them.

Fred Hobbs explained that Wes Carter was the new HUA contact for all of the District’s projects.

The Board inquired about the Water Loss Reduction Study and Fred Hobbs agreed to have a status report on it sent to Jamie Justice.

Customer Service Policy Addition: Ron Niland presented the possible addition to the Uwharrie Point Sewer Policy and explained that after replacing several existing pumps in U.P., the field and office staff had agreed on several additional requirements that ideally would be met prior to the installation of an aftermarket pump. The Board reviewed and after discussion, Tim Loflin made a motion to approve the additional requirements. The motion was seconded by Ronnie Harrison, passed by the Board 4-0.

Crown Castle Lease Agreement: Ron Niland explained that he had been discussing terms with Ken Chase and that starting in 2009, when the new lease would go into effect, the District would be getting $1,000.00 per month for five years, at which time the CPI would increase the amount.

Mini Brooks Exemption: Ron Niland discussed the new law that affected the District and Tim Loflin made a motion to exempt the Astran Lane Sewer Project and Loflin Fabrication Sewer Project from the provisions of G.S. 143-64.31. Ronnie Harrison seconded the motion, passed by the Board 4-0.

Tim Loflin made a motion to move to closed session to discuss legal matters with Harborgate.

Tim Loflin made a motion to move to open session, seconded by Debbi Yarbrough, passed by the Board 4-0.

Discussion followed between HUA, Ron Niland, and the Board about pressure problems resulting from the North Main Tank and Pump. Fred Hobbs recommended that he research the problems further.

Fred Hobbs discussed that HUA was working with HSD field employees on remapping with the GIS locations of meters.

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

Adjourned.