Handy Sanitary District
Public Hearing / Regular Meeting of the Board
May 10, 2007
Minutes Attendees: Norman Hunt-Chairman, Ronnie Harrison, Tim Loflin, Ron Niland-General Manager, Renae Snider-Clerk to the Board, Frank Wells-Attorney
Guests: see attached list
Norman Hunt called the meeting to order and the guests were registered for both the Public Hearing and the monthly Board Meeting. He announced the opening of the Public Hearing on the resolution authorizing the District to enter into an installment contract for the Pinehaven Water Line Replacement Project.
Karen Nash was the first speaker and expressed concerns that the lines were being replaced in Pinehaven rather than Dixie Shores. The Board encouraged her to call the office to report leaks and explained that the reasons Pinehaven was selected for line replacement project included bad piping and lines with dead ends. Mrs. Nash also inquired about the process of having water tested because of its color.
Patricia Marshall was the last speaker. She questioned when the lines in Dixie Shores would be replaced and Tim Loflin explained that before now, no one had voiced concerns that the lines in Dixie Shores were badly in need of replacement. Mrs. Marshall inquired as to what the project was about and Norman Hunt explained that the lines in Pinehaven were going to be replaced to help loop dead ends, improve water quality, and repair any leaks due to bad pipes. She also inquired about the project cost and Ron Niland stated that the total project cost was around $700,000.00, and he also explained that the $750,000.00 mentioned in the newspaper article was the refinancing of a loan took out in the 80's, unrelating to the Pinehaven Project. Mrs. Marshall complained about the size of the public notice in the newspapers, and requested that the Board consider Dixie Shores and other developments for line replacement. Norman Hunt explained that these areas are being looked at as well, and Tim Loflin stated that Pinehaven was chosen because District records had indicated that the lines were the worst in that development.
No more questions were asked and Norman Hunt closed the public hearing.
Norman Hunt opened the public hearing on the resolution for the refinancing of an existing loan in the amount of $750,000.00. Ron Niland explained that $750,000.00 remained on a loan that was taken out by the District in 1983 and was supposed to be paid off in 2023. He explained that because of a miscalculation through the LGC and the financing agency, and the sale of the loan to another financing agency, the District would have to pay $50,000.00 over the next couple of years to catch the payment up. He further discussed that he had figured out that by refinancing, and paying a couple thousand more per year, because of interest rates and amount of money that was left on the loan, the District could avoid the balloon payment at the end of the loan and save around $40,000.00 to $60,000.00. Ron Niland explained that the public hearing was required by the Local Government Commission as part of the application process, for approval of the refinancing of the loan. Patricia Marshall inquired whether $750,000.00 was the magic number. Norman Hunt confirmed that the numbers are whatever they may be for each project.
No more questions were asked and Norman Hunt closed the public hearing.
Norman Hunt opened the public comment for the regular meeting of the Board and the first speaker was James Akers. He explained that he was a property owner in Pinehaven Village and expressed concerns with the Badin Lake Sewer Project including mandatory connection, monthly costs, and consequences for not signing up. Norman Hunt explained that this meeting was not a question and answer session and Ron Niland offered to sit down as long as necessary and answer all of his questions and to discuss the details of the project with him immediately following the Board meeting.
Patricia Marshall discussed that different people were told different things and that some people would be exempt from the Badin Lake Sewer Project. She also stated that she had requested to see the signatures from when the Montgomery County portion of the District was annexed, and that Frank Wells had given her some signed papers but that she did not believe they were legitimate. She questioned how many of the required permits for the Badin Lake Sewer Project were in hand. Norman Hunt explained that this was not a question and answer session and Mrs. Marshall said she would mail a letter with her questions. She also read an article about a bill that was passed, affecting public officials.
Karen Nash discussed that she would include in Mrs. Marshall's letter whether the Board had approved a mandatory connection policy and whether there would be a vote taken on pump station locations.
Approval of Minutes: The Board reviewed the April Minutes and Tim Loflin made a motion to approve the Minutes as written. Ronnie Harrison seconded, passed by the Board 3-0.
Resolution to refinance existing loan: The Board reviewed the Resolution and Frank Wells recommended that he make a correction to the amount to be refinanced. Tim Loflin made a motion to adopt the Resolution to refinance the existing loan, with the correction. Ronnie Harrison seconded, passed by the Board 3-0.
Resolution for the installment purchase contract: The Board and Ron Niland discussed the application process with the Local Government Contract and bringing the bids to the Board for approval and Ronnie Harrison made a motion to adopt the Resolution for an installment contract. Tim Loflin seconded, passed by the Board 3-0.
Resolution to reimburse expenditures: Ron Niland explained this Resolution was an IRS regulation, in the event that the District would incur any expenses in the Pinehaven Project, before the approval from the LGC. Ronnie Harrison made a motion to adopt the Resolution to reimburse expenditures, Tim Loflin seconded, passed by the Board 3-0.
Resolution following Public Hearings on Pinehaven Project: Frank Wells explained that this Resolution authorizes the Board to move forward following the public hearing, and Tim Loflin made a motion to adopt the Resolution. Ronnie Harrison seconded, passed by the Board 3-0.
Resolution of support for the Clean Water Act of 2007: Ron Niland explained that this Resolution was in support of the bonds that the state legislature may pass this fall. Ronnie Harrison made a motion to adopt the Resolution in support of the Clean Water Act of 2007, Tim Loflin seconded, passed by the Board 3-0.
Financial Report: Ron Niland discussed the District was in overall good shape, and that he was in the process of putting together a budget for the upcoming fiscal year and announced the public hearing for the budget to be at the June Board meeting.
Customer Service Policy addition: Ron Niland discussed the adjustment addition possibility and the Board agreed it should be tabled since two Board members were not present.
Montgomery County: Ron Niland discussed that Montgomery County has expressed interest in tying in water and sewer connections with the District. The Board discussed and agreed that the water agreement should be separate from the sewer agreement and that if the option for upsizing the sewer line was agreeable to all involved parties, then Montgomery County should pay for the cost of it. The Board advised Ron Niland to get with Gray Walls and Fred Hobbs on technical issues, and then with Frank Wells on the legalities, then present drafts to the Board, then present to Troy (on the sewer agreement), before presenting to Montgomery County.
Loflin Fabrication Sewer Project: Ron Niland stated that the District had received notification of $80,000.00 in funds from the Rural Center, in addition to the $250,000.00 from the Golden Leaf. He explained that he was in the process of finding out why the District did not get $120,000.00 from the Rural Center and he also stated that consideration of funds from the county is supposed to be on their docket soon.
Mandatory Connection Policy: The Board agreed to table this item since two Board members were not present.
Personnel Policy: Ron Niland presented a proposed addition to the personnel policy and discussed that the new insurance company had requested that the Board adopt procedure pertaining to the checking of driving records of employees. The Board discussed and Tim Loflin made a motion to adopt the presented addition. Ronnie Harrison seconded, passed by the Board 3-0.
Employees Health Insurance Renewal: Ron Niland presented the Blue Cross Blue Sheild rates for the July 1 renewal and explained that the increase was 2.1%, which was low. He advised that the Board renew the policy with BCBS. After discussion, Ronnie Harrison made a motion to renew BCBS through Montgomery Insurance if the rates were the same or cheaper, and to change the agent of record over to a Montgomery Insurance local representative as well. Tim Loflin seconded, passed by the Board 3-0.
Badin Shores Resort: Ron Niland suggested that the closed session be tabled since two Board members were not present, and the Board agreed.
Harborgate: Ron Niland explained that the District had received a copy of a letter from the state to Marziano, which stated that three items were not correct and would need to be resubmitted within 30 days. He also announced that Harborgate had paid the amount owed to the District and Frank Wells expressed that recent discussions with Harborgate's attorney were positive.
Tim Loflin made a motion to adjourn the meeting, seconded by Ronnie Harrison, passed 3-0.
Adjourned.
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