Handy Sanitary District
Regular Meeting of the Board
December 13, 2007

 Minutes

            Attendees: Ron Niland-General Manager, Norman Hunt-Chairman, Keith Loflin-Secretary, Debbi Yarbrough, Tim Loflin, Renae Snider-Clerk to the Board, Frank Wells-Attorney, Steve Scarboro-Accountant, Debra McNeil, Ronnie Harrison (7:05)

             Norman Hunt called the meeting to order and there were no guests registered to speak.

             Approval of Minutes: The Board reviewed the November Minutes and Debbi Yarbrough made a motion to approve the Minutes as written. Tim Loflin seconded, passed by the Board 4-0.

             Annual Audit Report: CPA Steve Scarboro presented the annual audit report and the Board and Ron Niland reviewed. Steve Scarboro discussed the report in detail, beginning with the new format of the report, due to new state regulations. He discussed the revenues and expenditures for the year, and concluded that the budget overall was better than in previous years. Steve Scarboro recommended that, regarding the Badin Lake Sewer Project, the District put in for an extension on the grant with Clean Water Management Trust Fund. The Board advised that Ron Niland handle this. The Board inquired about allocating expenditures and Ron Niland confirmed that would be discussed in the budget retreat. Tim Loflin made a motion to approve the annual audit report, Debbi Yarbrough seconded, passed by the Board 5-0.

             Town of Denton Water Rate: Steve Scarboro discussed that the Town of Denton’s auditor had presented him with the new water rate, $1.2289 but recommended that Ron Niland get some answers from the Town on questions regarding unemployment and salaries included in the calculating of the rate, prior to the District Board’s approval.

             Monthly Financial Report: Ron Niland presented the monthly financial report and discussed that he felt the District was in solid shape, slightly ahead of the budget in terms of revenue, and in line with the budget in terms of expenditures. He discussed that improving water loss would help control expenditures.  

             Montgomery County/HSD Interconnection: Ron Niland presented the Rural Center grant application and pertaining documents for the Montgomery County/Handy Sanitary District Interconnection. The Board reviewed and Frank Wells discussed a correction to wording on some of the documents. Tim Loflin made a motion to approve and for Norman Hunt to sign, the Funding Resolution, Minority Business Participation Resolution, Authorizing Resolution, and Conflict of Interest Statement, with the recommended wording changes. Debbi Yarbrough seconded, passed by the Board 5-0.

             Water Loss: Ron Niland discussed that since June, aside from September when there were several major leaks, loss has generally been lower than before and that Gray Walls would be prioritizing improving water loss when he started working with us more after the first of the year.

             Leak Adjustment Report: Ron Niland presented the leak adjustment report and the Board reviewed.

             Badin Shores Resort: Ron Niland discussed the meeting with BSR that he had attended with Fred Hobbs, Tim Loflin, and Debbi Yarbrough. He explained that some of the BSR Board had voiced various complaints, including one about the water pressure in the Resort, and a claim that the District had not tested the pressure for a full week. Ron Niland presented the test results which verified registering the pressure for a full week and contacting the Resort to let them know the results were 50 PSI or above at all times. Discussion followed about HUA also running a pressure test at the master meter to provide consistent proof of the pressure. Also discussed was annexation of the Resort and whether or not they were going to tie into the Badin Lake Sewer Project. Tim Loflin and Debbi Yarbrough agreed that the BSR Board seemed receptive to Fred Hobbs’ presentation of the idea of the District possibly taking over the management and maintenance of their system, but not ownership. Ron Niland recommended that Frank Wells provide BSR Board with a letter with some information on annexation, and also that Fred Hobbs continue discussions with his BSR contact. Discussion followed about Fred Hobbs being involved if BSR installed a pump to improve their pressure.

             Pressure Problems: The Board discussed the pressure problems at Camp Walter Johnson and whether they were on the six or three inch line. Discussion followed about HUA assuring the District that the tank at North Main would solve those pressure problems. Ron Niland assured the Board that the Camp was on the six inch line, but suggested a variable speed pump could solve the problems at both the Camp and Harborgate.

             BLSP/Financial Aid: Ron Niland presented the lists of qualifying and nonqualifying customers who had applied for financial aid. Norman Hunt inquired how the qualification was determined and Ron Niland explained that it was based on the state community development guideline income limits. He also discussed that to qualify for financial assistance, the property must be the customer’s primary residence and they must be a District water customer. Ron Niland discussed that once construction begins he would contact the customers who qualified for assistance, to set up meetings with them to answer questions and explain the details.  

             Door Hangers: Ron Niland presented the new door hangers that had been ordered and the Board reviewed and questioned the wording and color, and made several recommendations. Ron Niland explained that the door hangers were very inexpensive and that more than one could be hung at a residence, if necessary.

             Cell Tower Lease: Ron Niland discussed that Crown Castle reps still wanted to purchase the lot the cell tower is on. Ron Niland recommended that he get in touch with someone he knew that has been involved in cell tower land leasing and then he and Frank Wells could discuss and bring something back to the January Board meeting.

             Equipment for Sale: Ron Niland discussed that employee Greg Carroll had some equipment for sale, some of which the field crew is already using. The Board reviewed the details of the items and discussed. The Board recommended that Ron Niland get comparisons on the grapple bucket from local merchants. Ronnie Harrison made a motion to approve the purchase of the 55 gallon tank and pump (purchased in ’04 from Tractor Supply), and the Lasermark Transit with tripod and stick (purchased in ’03 and recalibrated in ’06). Tim Loflin seconded, passed by the Board 5-0.

             Ron Niland discussed that he would be meeting tomorrow with Loflin Fabrication and Steve Googe with Economic Development of Davidson County regarding the county contributing to the project.  

            Ron Niland and the Board discussed a letter received from Jim Matheny, a customer who was satisfied with the District’s service he received when he had to have a new sewer tank and pump replaced. Discussion followed about some of the problems encountered and how they were handled, during sewer tank and pump replacements. The Board recommended that Kim Orick be contacted to put the Sewer Policy in their newsletter again, for informational purposes.  

                        Harborgate: Ron Niland explained that the District was still waiting on the approval letter from Tony Chen before the water could be turned on in Harborgate. He explained that he had talked to Lee Spencer with NCDENR about the hydrants and that they would slowly be put back in.

             Tim Loflin made a motion to move to closed session, seconded by Debbi Yarbrough, passed by the Board 5-0. Motion made to go back to open session by Keith Loflin, seconded by Debbi Yarbrough, passed by the Board 5-0. No action taken. Motion made to adjourn the meeting by Ronnie Harrison, seconded by Debbi Yarbrough, passed by the Board 5-0.

             Adjourned.