Handy Sanitary District

Regular Meeting of the Board

July 10, 2008

Minutes

            Attendees: Norman Hunt-Chairman, Keith Loflin-Secretary, Debbi Yarbrough, Ronnie Harrison, Tim Loflin, 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 June Minutes and Debbi Yarbrough made a motion to approve the Minutes as written. Tim Loflin seconded, passed by the Board 5-0.

            Financial Report: The Board reviewed the financial report and Ron Niland discussed that the District was doing ok financially.

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

            Water Loss Report: Ron Niland discussed that the average for the past three months has been around 30% and that the District would be doing more night leak detection once field employee Robbie Haltom was activated from light duty.

            Customer Service Policy Addition: Ron Niland presented the excerpt from the customer service policy and explained that other than textual revisions, the only change recommended was to increase the installation fee for hydrant meters, from $0 to $25.00 for members and from $25.00 to $50.00 for non-members. He explained this increase should help offset the cost of sending the field employees out to a hydrant to install the meter, as well as removing the meter once the customer was finished using the hydrant. Debbi Yarbrough made a motion to approve the customer service policy revisions as presented. Ronnie Harrison seconded, passed by the Board 5-0.

            Bad Debt List: Ron Niland presented the annual bad debt list and recommended the Board approve the list, in order for the District’s accountant to write the bad debt off the books. The Board reviewed and questioned why one customer’s account was over $4,000.00. Ron Niland advised that the Board approve the list as presented and suggested that he would have a report at the next Board meeting on that particular customer’s account. He discussed that a report that explained the particular circumstances of the situation may help determine whether or not a change needs to be made in policy or procedure. Tim Loflin made a motion to approve the bad debt list in the amount of $14,531.11. Debbi Yarbrough seconded, passed by the Board 5-0.

            BLSP/Rural Center Supplemental Grant Application: Ron Niland discussed that the District may qualify for a Rural Center supplemental grant of $1 million that may provide additional funding for Badin Lake Sewer Project and explained that it required a $1 million match that the District would already be putting in. He explained that HUA was putting the application package together and recommended that the Board authorize Norman Hunt and/or Jamie Justice to sign the application and all pertaining documents. Tim Loflin made a motion to authorize Norman Hunt, and/or Jamie Justice to sign the application and all pertaining documents, Debbi Yarbrough seconded, passed by the Board 5-0.   

            Water Interconnections/Water Leak Reduction Project/Rural Center Planning Grant: Ron Niland explained that the District may qualify for a $40,000.00 Rural Center planning grant that may provide funding for an interconnection with a surrounding water system, including Montgomery County or the City of Albemarle. Frank Wells discussed that this grant included a District match of $20,000.00. Ron Niland recommended that the Board authorize Norman Hunt, and/or Ron Niland, and/or Jamie Justice to sign the application and all pertaining documents. The Board and Ron Niland discussed the possible alternate water sources, as well as the District’s water quality and pressure. Tim Loflin made a motion to commit to the $20,000.00 match and to authorize Norman Hunt and/or Jamie Justice to sign the application and all pertaining documents. Debbi Yarbrough seconded, passed by the Board 5-0.

Manager Updates

Uwharrie Point Annexation: Ron Niland and Frank Wells discussed the annexation process including that it may be possible to acquire a map or recorded plats from Kim Orick. Debbi Yarbrough discussed that Heron Bay Homeowners Association had requested someone from Handy explain the annexation process at their annual meeting, coming up on Saturday July 12, 2008. She further explained that the HOA had confirmed that they have acquired petitions totaling 58% in favor of Heron Bay being annexed into the District, and that property owner Will Rabe had been appointed to the task of acquiring petitions from any new property owners. Ron Niland confirmed that the District could hold one public hearing to include both Uwharrie Point and Heron Bay in the annexation. Debbi Yarbrough discussed that the Heron Bay HOA had inquired whether, once annexed, the District could force property owners to connect to the water system, and Frank Wells confirmed that although the District Board does not currently have a mandatory connection policy, the Board does have the authority to set such policy which would affect all residents in the District.

North Main Street Tank Line Extension Project: Ron Niland explained that the project’s design was underway and that Jamie Justice had a meeting scheduled next week, with the property owner where the connection to the Denton system would be.

BLSP: Ron Niland informed the Board that Jamie Justice had spoke with Linda Beaulieu with the Montgomery Herald and that there would be an update on the Badin Lake Sewer Project in an upcoming edition of the Montgomery Herald, including the mention that the District will notify the public 90 days prior to construction beginning.

Beaver Dam Creek Bridge Replacement: Ron Niland announced that NCDOT will be replacing the bridge, including the water piping under it, during which some District customers would temporarily be without water service. The Board questioned how many customers would be affected, and for how long and Ron Niland agreed to have more information about this at the next meeting.

Debbi Yarbrough made a motion to go into closed session to discuss possible economic development, Loflin Fabrication Project, and to consult with attorney Frank Wells about negotiations with Badin Shores Resort. Tim Loflin seconded, passed by the Board 5-0.

Tim Loflin made a motion to go back into open session, Debbi Yarbrough seconded, passed by the Board 5-0. No action taken.

Debbi Yarbrough made a motion to adjourn the meeting, seconded by Tim Loflin, passed by the Board 5-0.

Adjourned.