Handy Sanitary District

Regular Meeting of the Board

June 12, 2008

Minutes

            Attendees: Norman Hunt-Chairman, Tim Loflin, Ronnie Harrison, Debbi Yarbrough (7:07), Jamie Justice, Ron Niland-All American Associates, Renae Snider-Clerk to the Board

            Norman Hunt called the meeting to order and after review of the register, he announced that there was one guest registered. (Kim Orick-Uwharrie Point Manager)

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

            Rate Increase Announcement Options: Jamie Justice discussed that at the May meeting the Board had considered different notification options for the water and sewer rate increases. He explained that the District had received a letter from Uwharrie Point Community Association since that time, requesting that the UP customers receive notification from the District. Jamie Justice presented two cost comparison options for the notification to the District customers, the first being a statement billing (instead of the normal postcard) for one month, which would include a brief paragraph announcing the increases. The second option he presented included the normal postcard billing which would include a note announcing the water rate increase, as well as a letter to the sewer customers. He recommended the Board approve the second option, which he reminded the Board would include an update on the BLSP and also explain the structure change for sewer rates. The Board discussed and Tim Loflin made a motion to approve Option B plus a newspaper notification. Ronnie Harrison seconded, passed by the Board 4-0.

            Uwharrie Point Annexation: Jamie Justice explained that Uwharrie Point has requested to become part of the District and is currently working on acquiring petitions from new property owners. He reminded the Board that UP had previously gathered signatures for petitions and acquired well over 51%. He discussed that Frank Wells advised that after collection of petitions, assuming there were 51% in support, the annexation process involves a DENR/Montgomery County/HSD joint public hearing. Jamie Justice explained that since DENR does not deal with these type annexations very often, he was in the process of trying to track down the right person and projected August 2008 or later for the public hearings. Tim Loflin made a motion to proceed with the process for Uwharrie Point annexation. Debbi Yarbrough seconded, passed by the Board 4-0.

            Public Hearing for Budget Ordinance FY 2008-2009: Norman Hunt opened the public hearing and Jamie Justice explained that the budget is the same as previously presented, aside from the dump truck purchase. He discussed that after further research into the situation, he recommended repair of the transmission and clutch instead of replacement of the truck. He further discussed that after July 1^st he would begin looking into replacement of the three pick up trucks, including the possibility of hybrid model(s). Jamie Justice noted that the increase in Board compensation was included in the Ordinance, and would be effective December 2008. The Board reviewed the Budget Ordinance and discussed. Norman Hunt closed the public hearing. Tim Loflin made a motion to approve the Budget Ordinace FY 2008-2009.  Debbi Yarbrough seconded, passed by the Board 4-0.  

            Employee Health Insurance Renewal: Jamie Justice reminded the Board of the 33% increase discussed at the May meeting and explained that it was incorrect, due to a mistake between BCBS and Montgomery Insurance, and that after a meeting with Montgomery Insurance the District’s actual renewal increase was 21%. He discussed that an alternative included tweaking the current benefits, but advised that the $3,000.00 per year savings were not very comparable to the decrease in benefits. He also discussed that Montgomery Insurance had suggested the Healthy Savings Account and explained how it works, and advised that this type of insurance option was unusual for governmental units. The Board discussed the options, and Ronnie Harrison made a motion to approve the renewal of the current insurance plan. Debbi Yarbrough seconded, passed by the Board 4-0.

            Budget Amendments FY 2007-2008: Jamie Justice presented the amendment and explained that the District has $60,000.00 excess revenue in the water purchases budget and by allocating this expense between the water, sewer, and administrative departments the current budget would balance. Tim Loflin made a motion to approve the budget amendments FY 2007-2008. Debbi Yarbrough seconded, passed by the Board 4-0. Ron Niland discussed that the District was in good financial shape and explained that the budget should continue improving each year.

            Audit Contract: Jamie Justice presented the audit contract and explained that the audit cost was $9,520.00, and the preparation of the financial statements was $1,000.00, which totaled $10, 520.00, the same cost as last year. Tim Loflin made a motion to approve the audit contract in the amount of $10,520.00. Debbi Yarbrough, passed by the Board 4-0.

            Financial Report: Jamie Justice discussed that revenues were at 92.76% and expenditures were at 94.78%. He further explained that the budget amendments previously approved would bring the numbers back in line. The Board reviewed.

            Leak Adjustment Report: The Board reviewed the Leak Adjustment Report and inquired about whether in the last week the District had received any pressure problems around Summerville Church Rd. The Board discussed and Jamie Justice confirmed that there had been a leak in that area.  

            Water Loss Report: Jamie Justice explained that the District’s true unaccounted for water loss was at 28% for the month. He discussed that the field was just about to complete the repair of leaks from the 2005 leak study. The Board and management discussed that the current field personnel had improved productivity and water loss.

            Customer Service Policy Addition: Jamie Justice presented the customer service policy addition and explained that he understood that the Board had previously made a decision on the procedure for handling part-time and seasonal customers who requested their service be disconnected and then reconnected during the same year and that the staff was currently following the decided procedure. He explained that since the office staff received questions about it periodically, he recommended that the procedure be put in writing and added to the policy. The Board reviewed and Debbi Yarbrough made a motion to approve the addition. Tim Loflin seconded, passed by the Board 4-0.

            Water Shortage Response Ordinance: Jamie Justice explained that the District was in the process of completing the annually required Local Water Supply Plan to DENR and part of it required that the District have a Water Shortage Response Ordinance. He further discussed that since the District followed suit to the Town of Denton’s restrictions, the Town of Denton’s Ordinance had been revised to apply to the District. The Board reviewed the presented Ordinance and Debbi Yarbrough made a motion to approve the Water Shortage Response Ordinance. Ronnie Harrison seconded, passed by the Board 4-0.

            North Main Street Line Extension Project/Engineering Contract: Jamie Justice updated the Board that the Town of Denton was not interested in partnering with the District to pay for a master meter and recommended that the District move forward with the line extension. He presented the engineering contract from HUA and explained that the $6,500.00 letter agreement included the surveying, design, and construction management and inspection. Jamie Justice further explained that this agreement would get the project permitted and ready to bid for construction, hopefully by September. He explained that the total cost of the project was estimated to be about $81,500.00. He discussed that there was still around $12,000.00 left in the original project budget and that the difference could come from the remaining loan proceeds from the Pinehaven Water Line Replacement project. Tim Loflin made a motion to approve the HUA engineering contract on the North Main Street Line Extension. Debbi Yarbrough seconded, passed by the Board 4-0.

            Pinehaven Loan Proceeds: Jamie Justice explained that the District has $155,000.00 left in loan proceeds from the Pinehaven Water Line Replacement Project and that he had contacted the Local Government Commission to confirm how the proceeds could be spent. He further explained that the LGC had advised the District to spend the remaining funds on water projects. He discussed the idea of using part of the funds towards the North Main Street Line Extension and part of it towards looping some water lines throughout the District system to help with pressure and quality. Jamie Justice presented Phase 1 of the looping possibilities and explained that Gray Walls would help with the design and permitting of these loops, while the District’s field personnel would likely complete the majority of the labor. The Board discussed and Tim Loflin made a motion to authorize Jamie Justice to move forward with the Water Line Looping Projects: Phase 1, with the addition of the dead end line on Badin Shores Circle. Debbi Yarbrough seconded, passed by the Board 4-0.

            Loflin Fabrication/Astran Drive Projects Budget Ordinance: Jamie Justice presented the budget ordinance for Loflin Fabrication and Astran Drive Projects and explained that the Board would have to approve the ordinance in order to begin paying invoices from the project funds. Debbi Yarbrough made a motion to approve the Loflin Fabrication/Astran Drive Project Budget Ordinance as presented. Tim Loflin seconded, passed by the Board 4-0.

            Badin Lake Sewer Project:  Jamie Justice discussed that the state had approved the amended plans that HUA had submitted, which involved the elimination of a pump station and the EOne pump curve changes. He also discussed that the projected final approval from NC Construction Grants and Loans was August or September 2008.

            Badin Shores Resort: Jamie Justice explained that he had met with BSR Board and that they had discussed that they were going to conduct a vote of the property owners on being part of the BLSP, after a couple of informational meetings with Fred Hobbs on July 12 and August 9. He also discussed that Fred Hobbs was going to take a look at the BSR water pressure problems and make a recommendation.

            Manager Updates:

            Albemarle Interconnection: Jamie Justice discussed that he had met with the city manager, who had requested the Albemarle Board and the District Board meet to discuss the possible interconnection. He also explained that the Rural Center Planning Grant may help with the feasibility study of all three possible interconnections, Albemarle, Randolph, or Montgomery. The Board agreed that the District should proceed with exploring these possibilities and Ron Niland recommended that the District proceed in applying for the grant.

            Competent Person: Jamie Justice explained that field personnel Ken Clippinger, Robbie Haltom, and Greg Carroll had completed the OSHA Excavation and Trenching Competent Person training and advised the Board that he planned to move forward with authorizing each of them a “Competent Person”.

            GIS Project: Jamie Justice discussed that the GIS project was complete and recommended the District proceed to the next level, which he explained would provide the District with the capability to model the water system. He further discussed that Gray Walls may be involved, as well as employees Robbie Haltom and Renae Snider.

            HUA Invoices: Jamie Justice presented two invoices totaling $51,000.00, one of which the Board had seen at the May meeting. He reminded the Board of their request to HUA to provide a revised detailed BLSP budget and explained that he had been working with HUA on that and may have it ready for approval at the next meeting. He discussed that some of the contributing factors to a revised project budget included minor tweaks to the pump station locations, and expected minor tweaks resulting from DENR review.

            Ronnie Harrison made a motion to go into closed session to discuss Jamie Justice’s correspondence with attorney Frank Wells regarding Harborgate and also to discuss possible economic development, Loflin Fabrication Project. Tim Loflin seconded, passed 4-0.

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

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

            Adjourned.