Handy Sanitary District
Regular Meeting of the Board
March 8, 2007
Minutes Attendees: Norman Hunt-Chairman, Keith Loflin-Secretary, Ronnie Harrison, Debbi Yarbrough, Tim Loflin, Ron Niland-General Manager, Renae Snider-Clerk to the Board, Frank Wells-Attorney
Guests: see attachment.
Norman Hunt called the meeting to order and the guests were registered, none of which had requested to speak.
Approval of the Minutes: The Board reviewed the February Minutes and Tim Loflin asked for a correction in the first paragraph. He discussed that the Minutes read that the Board was not interested in a building at the Hwy 49/Hwy 8 intersection, but that it should read that the Board had only clarified that they had not contacted anyone about the building at that point. Tim Loflin made a motion to approve the February Minutes, with the correction. Ronnie Harrison seconded, passed by the Board unanimously.
Financial Report: The Board reviewed the monthly financial report and Ron Niland discussed the District's financial status was in generally healthy shape. He discussed that water purchases had exceeded expenditures, but that the District had received the expected credit from the Town.
Adjustment request: Ron Niland discussed that the customer whose request for an adjustment had been denied by the Board at the February meeting had asked that his request be reconsidered. Ron Niland explained that he had not received the information that Mr. Rabley said he would be sending in to be presented at the meeting.
401K Trustee Change: Ron Niland and Renae Snider presented the paperwork from Fry Financial and explained the signatures required in order to change the trustee on the 401K Plan from the former Chairman to the newly elected Chairman. Ronnie Harrison made a motion to approve the appropriate signatures for the change of the trustee on the employees' 401K plan. Debbi Yarbrough seconded, passed by the Board unanimously.
Customer Service Policy Addition: Ron Niland presented a possible addition to the current customer service policy regarding sewer leaks. He explained that this addition would offer customers with water leaks eligibility for an adjustment on the sewer portion of their bill, upon presentation of a plumber's signed certification that the leak occurred between the meter and the dwelling. Ron Niland discussed that he was also working on a possible water leak adjustment policy to present at the next Board meeting. Ronnie Harrison made a motion to table the discussion until next month when the Board could review both policies together. Tim Loflin seconded, passed by the Board unanimously.
Golden Leaf: Ron Niland discussed that he had been notified by phone that the District would be awarded $250,000.00 from the Golden Leaf Foundation for the Loflin Fabrication project. He also discussed that he was going to review the project budget, and meet with Gray Walls to try to figure out ways to bring the project costs down. Ron Niland also stated that he had preliminary indications that the Rural Center may pledge some funding for this project.
Debt Service: Ron Niland discussed that sometime in 2001 the District had requested and received a reduction in the principal payment on loan from the 1980's, which would ultimately result in a large balloon payment being due at the end of the loan in 2022. He explained that the original finance company was taken over by another company recently and upon reviewing their loans, requested that the District pay in accordance with the original agreement, which would require an additional $45,000.00 be paid in the current fiscal year. He reasoned that since this amount was not budgeted, he recommended presenting options to the Board after consulting with the LGC about getting the authorization to refinance the loan. He discussed that a new 15 year loan would still be paid off by 2022 and would only increase the District's annual payment approximately $1500.00 due to lower interest rates. Ron Niland continued discussion and the Board agreed for Ron to proceed.
BLSP/Public Hearing: Ron Niland explained that the Public Hearing on the Badin Lake Sewer Project was scheduled for 7:00 PM, Thursday, March 29, 2007 at the Garner Center in Troy.
HUA Contract for Hwy 49 and Hwy 8: Ron Niland presented the Hobbs, Upchurch, and Assoc. contract for services in the Hwy 49/Hwy 8 project. Frank Wells explained that the first contract, presented at the February Board meeting, had provisions that allowed HUA to act as the superintendent of the project, including over the construction and administrative services. Frank Wells further explained that following the discussion at the February Board meeting, he had contacted Fred Hobbs regarding modifications to the contract which would allow the District that supervision. He discussed that the revised contract still allowed the $50,000.00 for the project design, but that it did not allow HUA full supervision of the construction and administrative services, which were down to $17,500.00. He advised that if the revised contract fulfilled the Board's idea of the project engineer's level of involvement to accept it, but if it did not, he recommended the Board approve a contract in principle, and he would go back to HUA and get that. The Board reviewed the contract, and discussed revisions. Ronnie Harrison made a motion to approve the contract with HUA in the amount of $76,750.00, upon Frank Wells' satisfaction of revisions being made that would specify that the District would have the option to decide whether or not HUA would be called upon for particular services listed for the additional costs. Tim Loflin seconded, passed by the Board unanimously.
Pinehaven Water Main Replacement: Ron Niland announced the bid opening of the Pinehaven Water Main Replacement Project was scheduled to be held Tuesday, March 13, 2007 at 2:00 PM at the District office. He explained that the total project cost was $650,000.00, with $400,000.00 being a Rural Center grant, and $259,000.00 a loan from the Revolving Fund. He explained that acceptance of a bid would make it part of the District's debt service and he estimated that to be $10,000.00 to $12,000.00 per year.
Insurance Report: Ron Niland discussed that he had been working with our insurance company and others, to compare current coverage and cost. He advised that some upgrades may be necessary, and that it was a good idea to compare companies every few years. He recommended that he and the staff put together a package that outlined the District's needs, send it out to local insurance providers, and come back to the Board with comparisons. The Board suggested some local companies and agreed that he should proceed.
Tim Loflin discussed Davidson County Soil and Water Conservation District's letter and request for comments. Ron Niland recommended if the Board had any suggestions concerning High Rock Lake, to let him know and he would pass it along to the DCSWCD, and also advised that he would find out if and what they were expecting from Handy Sanitary District.
Tim Loflin made a motion that the Board go into executive session to discuss three legal matters concerning Harborgate, Badin Shores Resort, and Lake Badin Assoc. Debbi Yarbrough seconded, passed by the Board unanimously.
Ronnie Harrison made a motion to move back to open session and to approve the provision of water service to the already installed lines in Harborgate along the roadways of Harborgate Drive, Potter's Landing, Rima Landing, Outrigger Landing, Roehm Landing, Castleman Landing, George's Landing, and Cecelia Landing, upon Fred Hobbs' approval of the Harborgate plans, and upon payment from Harborgate of $6,000.00 owed the District for water. Debbi Yarbrough seconded, passed by the Board unanimously.
Also in executive session, in addition to deliberating the filing of the Harborgate application for water service, the Board discussed contract negotiations with Badin Shores Resort, and a potential liability claim.
Debbi Yarbrough made a motion to adjourn the meeting, seconded by Tim Loflin.
Adjourned. |