Handy Sanitary District
Regular Meeting of the Board
August 23, 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 attached register

             Norman Hunt called the meeting to order and reviewed the guest register. There were no guests present, so the public comment period was closed.

             Approval of Minutes: The Board reviewed the July Minutes and Debbi Yarbrough made a motion to approve the Minutes as written. Keith Loflin seconded, passed by the Board unanimously.

             Financial Report: Ron Niland presented the monthly report and commented that if every month for the rest of the year went as good as this first month, the District would be in outstanding shape at the end of the fiscal year. He encouraged the Board to let him or Lisa Hedrick know if they had any questions or wanted more details on any of the report.

             Leak Adjustments: Ron Niland discussed the recent addition to the customer service policy pertaining to adjustments on customer leaks and explained the data on the presented report. The Board discussed a particular customer whose name was not on the list, but had suffered a water leak. Ron Niland and Renae Snider confirmed that the office staff would check all of that customer’s accounts to determine if he qualified for an adjustment.

             Discussion followed regarding the District’s water loss, and Ron Niland stated that he was trying to get a more accurate comparison of water purchased versus water billed. The Board and Ron Niland discussed and Ron Niland stated that the comparison needed to include a weighted average and that he would be working on developing a plan to address water loss.

             Account fee vs. Deposits: Ron Niland presented the idea of changing from requiring deposits on the opening of new accounts to requiring an account fee, which would be non-refundable. He explained the advantages, which included not having to keep up with escheats, and also the additional automatic revenue to the District. The Board discussed, but agreed to table the idea.

             Ron Niland reported that he was pleased with the progress on all of the current District projects. Debbi Yarbrough inquired about the article in the Denton Orator pertaining to a few customers who live in the city limits, but are on the District’s water lines. Frank Wells presented the letter the District had received from the Town asking to purchase the lines, or the customers’ accounts from the District. Discussion followed between Frank Wells, Ron Niland, and the Board and included that lines and the revenue from them are part of security pledged for the financing of projects, which means that lenders would have to approve such a sale. Other factors discussed included that the appropriate price for the line could not be determined without legal, engineering, accounting, and administrative expenses, and that there would be cost in relocating the meters. Another alternative discussed was for the Town to offer the District credit on its water bill for the gallons sold along that line. The Board advised Frank Wells to prepare a reply that explained these factors and stated that if the Town of Denton will commit to covering those expenses, the District would start the process of determining a price for the line.

             Mandatory connection: A proposed ordinance was presented by Frank Wells, and the Board reviewed. Discussion followed regarding the requirements the Board had considered in the February work session. Frank Wells explained variations of the proposed ordinance and the Board discussed and agreed to review further before considering adoption.  

             Harborgate: Guest Ricky Johnson, with Harborgate, had arrived during the Board meeting. He discussed a letter that Harborgate had received from the state, which required certification of water lines and other items, before approval. After discussion, it was agreed that Frank Wells would prepare a letter to Tony Chen, with DENR’s Public Water Supply Section, stating the District’s encouragement of a meeting with District engineer Fred Hobbs, the developer’s engineer, and Mr. Chen, in attempt to help speed the process of approval.

             Tin Loflin made a motion to move to closed session to discuss a legal matter invloving Badin Shores Resort. Debbi Yarbrough seconded, passed by the Board unanimously.

             Keith Loflin made a motion to move back to open session, seconded by Tim Loflin, and passed by the Board unanimously. No action taken. Tim Loflin made a motion to adjourn, seconded by Debbi Yarbrough.

             Adjourned.