Handy Sanitary District

Regular Meeting of the Board

May 8, 2008

Minutes

Attendees: Norman Hunt-Chairman, Tim Loflin, Ronnie Harrison, Debbi Yarbrough, Jamie Justice-All American Associates, Ron Niland-General Manager, Renae Snider-Clerk to the Board, Greg Carroll-Field Personnel, 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 April 10, 2008 Minutes and Debbi Yarbrough made a motion to approve the Minutes as written. Ronnie Harrison seconded, passed by the Board 4-0. The Board also reviewed the April 23, 2008 Minutes and Tim Loflin made a motion approve the Minutes as written. Ronnie Harrison seconded, passed by the Board 4-0.

Employee Recognition: Jamie Justice asked Greg Carroll to come forward to receive recognition for acquiring a Grade C Distribution License. Ron Niland presented Greg Carroll with a certificate of appreciation and the Board expressed their thanks to Greg Carroll for both his efforts in obtaining the license and in his work for the District.

Financial Report: Jamie Justice discussed that the District should be around 83% for the fiscal year, and that revenues were at 84.7% while expenses were at 85.6%. He explained that the overage on the expense side was from a couple of spikes and one time costs and that the fiscal year would need to end conservatively. He also announced that the Board would see the year end amendments to the budget at the June meeting. Ron Niland added that there would likely be a small addition to the fund balance.

Leak Adjustment Report: Jamie Justice presented the monthly leak adjustment report and the Board reviewed.

Water Loss Report: Jamie Justice explained that the staff is trying a new approach to report the water that is unaccounted for. He explained that this should result in a truer, more accurate unaccounted-for water report because of  the two new inclusions, one being the gallons utilized in-house for O&M, and one being the gallons utilized by the District for flushing purposes to help with water quality.

Proposed Budget: Jamie Justice discussed the expenses going up due to vehicle replacement, rising fuel prices, debt service, and necessary equipment purchases. He explained that on the revenue side, the proposed budget included a $1.50 increase to the monthly minimum water bill. He also discussed the proposed new sewer rate structure, which he explained would change from 128% of the water bill to a $30.00 minimum and a $4.00 per 1,000 gallons charge. Ron Niland recommended himself or Jamie Justice meeting with Uwharrie Point to discuss the rate increase. Discussion followed about setting the public hearing for the budget ordinance and Tim Loflin made a motion for it to be scheduled for the June 12, 2008 Board meeting. Debbi Yarbrough seconded, passed by the Board 4-0.

            All American Associates Contracts: Ron Niland presented two All American Associates contracts and explained that one was for management services and the other for grant writing and project management. He further explained that the total contract amounts were included with the proposed budget and confirmed that the money spent with All American Associates by the District is used as local match for grants that the District may receive. The Board discussed and asked questions regarding the amount of hours/days per week that the District has a manager, and inquired about the need for a full-time manager after the bidding out of the Badin Lake Sewer Project. Ron Niland confirmed that he or Jamie Justice currently worked 3½ to 4 days per week for the District and that after the project bidding, the days would step up to 5 days per week or more as needed for the project. The Board reviewed the contracts and Tim Loflin made a motion to approve both contracts, with Frank’s recommended changes. Debbi Yarbrough seconded, passed by the Board 4-0.

Customer Service Policy Addition: Jamie Justice explained that following a work session discussion, the sewer policy had been revised to include that a customer requesting sewer service was required to be a water customer of the District. He also explained that the current sewer policy only addressed Uwharrie Point customers and that this revision would begin the restructuring of the sewer policy to which future additions, including the mandatory connection, could be added. The Board reviewed the addition and Tim Loflin made a motion to approve the addition as presented. Debbi Yarbrough seconded, passed by the Board 4-0.

            The Board discussed requirements for the mandatory connection policy and Ron Niland confirmed that he or Jamie Justice would work on this with Frank Wells and have a draft for the Board to look at for the August Board meeting.

State Health Insurance Program: Jamie Justice explained that the annual renewal for the employees’ health insurance showed a 33% increase and as a result he was considering other options, including other plans or other providers. He explained that some NC legislators are proposing a bill that would allow several entities to be eligible for the state health insurance program. Jamie Justice also explained that for the District to be included, the Board would need to authorize for the District to join the bill. Ronnie Harrison made a motion to authorize the District to join the bill, seconded by Debbi Yarbrough, passed by the Board 4-0.    

HUA Invoice: Jamie Justice discussed that he had spoke to Fred Hobbs about the $41,000.00 invoice and that his explanation of the charges was that 1) due to the EOne pump improvements, he had to modify the plans and 2) the state construction grants and loans section has changed their submittal specs and because of that it cost more to resubmit the plans. The Board discussed and agreed that Jamie should contact HUA and request that they provide the District with an updated BLSP budget.

  Crown Castle: Jamie Justice explained that the proposed agreement would allow for Crown Castle to pay Handy Sanitary District $1,000.00 per month for lease of the property behind the District office starting in January 2009, and would be increased every five years, based on the CPI. Tim Loflin made a motion to approve the Crown Castle lease agreement, Ronnie Harrison seconded, passed by the Board 4-0.

Carolina Commercial Land and Development Line Acceptance Request: Jamie Justice explained that the developer of the boat storage business on Badin Lake Rd. requested that the District take over the water line on the drive leading up to the business. Frank Wells discussed the easement needed. Tim Loflin made a motion to accept the line, contingent upon acquiring of the easement, Debbi Yarbrough seconded, passed by the Board 4-0.

Loflin Fabrication/Golden Leaf grant document: Jamie Justice discussed that Golden Leaf had approved the pre application back in March 2007 and that the District was currently completing the full application and all the pertaining documents, including the performance agreement with Loflin Fabrication. He requested that the Board authorize him to sign the full application and pertaining documents. Debbi Yarbrough made a motion to authorize Jamie Justice to sign the Golden Leaf grant application and all pertaining documents, Ronnie Harrison seconded, passed by the Board 4-0.

Manager Updates:

Inmates Work Crew: Jamie Justice discussed that the inmate work crew had been helping clear easements and that the District had paid for some snacks and lunch for them.

Southpoint Pump Station: Jamie Justice presented before and after pictures of the repaired pump station. The Board reviewed.

The Reserve: Jamie Justice reported that he and Norman Hunt had met with the developer, who is ready to proceed with the subdivision. Jamie Justice explained that the development is contingent upon water and sewer provision by the District and that he would draft up a service agreement. He further discussed that executing an agreement that specified that provision of service would help the developer proceed with the selling of lots and also provide the District with the developer’s plans of the water and sewer lines.

BLSP/Pump Stations: Jamie Justice updated the Board that he had already met with several property owners on acquiring lots for the pump station locations and that he had a couple more meetings scheduled. He also informed the Board that there was one property owner adamantly against the acquisition. Frank Wells recommended Attorney Paul Mitchell for easement work and that the Board obtains title insurance for these acquisitions.

Debbi Yarbrough made a motion to go into closed session to discuss BSR negotiations. Ronnie Harrison seconded, passed by the Board 4-0.

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

Jamie Justice discussed that he had attended the Rural Center workshop that was required for the District to be eligible for grant funds for certain projects, including leak reduction studies, or interconnections with Albemarle, Randolph, or Montgomery Counties. Jamie Justice recommended that he look into in the provisions of these grants to determine whether or not the District should apply for these grants.

Jamie Justice presented the Annual Drinking Water Report and the Board reviewed.

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

Adjourned.