Handy Sanitary District - Denton - Davidson County - North Carolina

Handy Sanitary District

Regular Meeting of the Board

November 13, 2008

Minutes

Attendees: Chairman-Norman Hunt, Secretary-Keith Loflin, Ronnie Harrison, Tim Loflin, Debbi Yarbrough, All American Associates-Ron Niland, Jamie Justice, Justin Hembree, Attorney-Frank Wells, Steven Scarboro CPA-Steve Scarboro, Debra McNeill, Clerk-Renae Snider, Office/Finance Manager-Lisa Hedrick, Field Technician-Jay Thomas

Guests: see attached list

Norman Hunt called the meeting to order and announced that one guest had registered to address the Board regarding the District’s billing layout. Roger Hunt explained to the Board that he had recently been disconnected for non-payment and as a result, had noticed that the bill was not marked “past due”. He inquired whether the layout could be changed and discussed concern for other District customers facing the same confusion. Lisa Hedrick explained that the District’s software company pre-prints the portion of the bill that is marked “balance forward” rather than “past due”. The Board advised that the staff check with the software company to see how much it would cost to have the wording changed.

Approval of Minutes: The Board reviewed the Minutes from the October 9, 2008 meeting and Tim Loflin made a motion to approve as written. Debbi Yarbrough seconded, passed by the Board 5-0. The Board reviewed the Minutes from the October 21, 2008 meeting and Keith Loflin made a motion to approve as written. Ronnie Harrison seconded, passed by the Board 5-0.

Employee Introduction: Jamie Justice introduced the Board to the District’s recently hired field technician, James (Jay) Thomas, and explained that he lives in the Denton area and has years of construction experience. The Board welcomed the new employee.

Annual Audit Report/Water Rate: Steve Scarboro presented the annual audit report and explained the revenues and expenditures for the fiscal year. He reported that he had not discovered any problems with the District’s audit which included reviewing the financial workings as well as internal controls. Steve Scarboro also discussed that the proposed water rate from the Town of Denton is $1.51 per gallon and explained that it is based on the cost of water, which is calculated by the Town’s auditor. He discussed that the figures include involved Town employees’ salaries, insurance, etc. Jamie Justice recommended that he meet with Town Manager, FE Isenhour to confirm questions on the number of employees and on the significant increase to insurance, and report back to the Board. The Board reviewed the audit report and expressed appreciation to Steve Scarboro’s office and the District staff for their efforts.

Presentation: The Board presented Norman Hunt with a plaque and expressed appreciation for his service to the District as a Board member.

Water Tank Maintenance/Capitol Reserve Fund: Jamie Justice discussed that following the Board’s advisement he had done research on the easiest way for the District to maintain the water tanks. He recommended the Board set up a capital reserve fund and approve moving $27,000.00 from a BB&T CD into it for this year. He presented a spreadsheet plan that included deposits and expenditures for the fiscal years up to 2018/2019 and explained that it may need to be revised if tanks were added, and also at the time that the Uwharrie Point Tank contract with Utility Services expired. Jamie Justice also explained that the maintenance would be completed once a year and discussed that McLean Tank Company, Inc. had provided the District with prices for routine washout and disinfection processes and presented their letter/quotes. Tim Loflin made a motion to set up the capital reserve fund, and to move the $27,000.00 from the BB&T CD into it. Debbi Yarbrough seconded, passed by the Board 5-0.

Operations and Maintenance Plan/Emergency Management Plan/Sample Siting Plan: Jamie Justice explained that these were general plans required by NCDENR that may later need revisions to more specifically apply to the District. The Board reviewed and Tim Loflin made a motion to approve all three plans as presented. Ronnie Harrison seconded, passed by the Board 5-0.

BLSP/HUA Bid Phase Contract: Jamie Justice explained that NCDENR Construction Grants and Loans were currently still reviewing the plans and specifications and that Wes Carter had informed him that comments could be coming any day between now and the first of the year. He presented the Bid Phase Contract for the project and discussed that if it was already approved, once the comments were addressed and final approval received from NCDENR, HUA could immediately move forward with the bid phase. Debbi Yarbrough made a motion to approve the HUA contract in the amount of $16,240.00, for the bid phase of the BLSP, contingent upon receiving final approval from NCDENR. Tim Loflin seconded the motion, passed by the Board 5-0.

Water Accountability Report: Jamie Justice discussed that since the major leak on Cranford Rd. had been repaired on the 10^th of October, the unaccounted for percent (35) was significantly lower than last month.

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

Financial Report: Jamie Justice explained that the District was four months into the fiscal year and expenses were currently at 34.87% while revenues were at 32.81%. He further explained that the difference could be contributed to water purchases.

Manager Updates:

Ebal Church Rd: Jamie Justice discussed that the deadline had been set for the residents to pay for their taps and sign up for service and that the fourth and final tap had been paid. He explained that designing and permitting would be the next step.

Phase 1 Line Loopings: Jamie Justice explained that Gray Walls is hoping to have the design work complete and submitted to NCDENR by January 1, 2009.

Uwharrie Point Pump Station: Jamie Justice announced that the budgeted line item of rebuilding the pump station at the Lodge has now been completed and is working well.

North Main Line Extension Project: Jamie Justice discussed that the design work is complete and the plans are at NCDENR. He explained that once the authorization to construct is issued, the bidding of the project could happen as early as December.

Camp Walter Johnson: Jamie Justice discussed that he has talked with the camp manager concerning the HUA report on the pressure problems and explained that the District is addressing its issues through completion of the North Main Extension and that the Camp plans to address its issues through upgrade of their service line. He also explained that the Camp plans to get with HUA to determine whether or not a larger meter is needed.

Trucks: Jamie Justice explained that a deal had been found on two Chevrolet Silverado trucks and that as advised by the Board, they were purchased without financing. He reminded the Board that the approved 2008-2009 budget had actually included the purchase of three new trucks and recommended that they consider that next year.

NCDENR Meeting: Jamie Justice informed the Board that at a recent meeting with NCDENR, they suggested in addition to the plans the Board approved, that the District do a hydraulic modeling of the water system. He explained that the District is currently working on acquiring the data to be able to do the hydraulic analysis. Jamie Justice also discussed that the idea made sense, but would cost some money, for which grants could be available.

Annexation Public Hearing: Jamie Justice reminded the Board of the public hearing for the Uwharrie Point/Heron Bay annexation, to be held at the Badin Lake Volunteer Fire Department on Tuesday, November 18, 2008 at 7:00 PM. He confirmed that NCDENR had advised him that the annexation package was complete and that following the hearing, they will submit it, along with their report, to the Commission of Health Services. He explained that approval was expected at their February 18, 2009 meeting.

The Board thanked Jamie Justice for his service to the District and wished him the best at his new position with Matthews. Jamie Justice thanked the Board for their support and leadership.

Tim Loflin made a motion to go into closed session to discuss property acquisitions for the BLSP, to consult with the attorney regarding the contract with BSR, and to discuss possible economic development involving Loflin Fabrication Project.Debbi Yarbrough seconded, passed by the Board 5-0.

Ronnie Harrison made a motion to move back to open session. Tim Loflin seconded, passed by the Board 5-0. No action taken.

Debbi Yarbrough made a motion to approve the resolution authorizing execution of eminent domain for pump station location #9 for the BLSP, including that the District is still committed to negotiation as the proceedings are moving forward for eminent domain. Keith Loflin seconded, passed by the Board 5-0.

Ronnie Harrison requested that the December agenda include review of the District’s bill, and comparison with other utilities’ late fees, and cut off policies. The Board discussed. Tim Loflin made a motion to adjourn the meeting. Debbi Yarbrough seconded, passed by the Board 5-0. Adjourned.