Handy Sanitary District

Regular Meeting of the Board

October 9, 2008

Minutes

            Attendees: Norman Hunt-Chairman, Keith Loflin-Secretary, Tim Loflin, Debbi Yarbrough, Jamie Justice-All American Associates, Renae Snider-Clerk, Frank Wells-Attorney, Kenneth Clippinger-Field Supervisor, Robert Haltom-Field Technician

            Guests: None, see attached list.

            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 Minutes: The Board reviewed the September Minutes and Tim Loflin made a motion to approve the Minutes as written. Keith Loflin seconded, passed by the Board 4-0.

            Employee Recognition: Jamie Justice discussed that District employee Ken Clippinger has received his Grade 2 Biological Wastewater Treatment Operator Certification. He explained some of the benefits of employees holding certifications, including that it gives the District more flexibility regarding placement of employees. He presented Ken with a Certificate of Appreciation and gratitude was expressed by the Board. Jamie Justice further explained that employee Robbie Haltom has received his Grade 1 Collections System Operator License. He discussed that Robbie would also be trying to acquire the Backflow/Cross Connection certification in the future. He presented Robbie with a Certificate of Appreciation and gratitude was again expressed by the Board. The Board also commended the field personnel on their efforts in keeping water loss to a minimum. Ken Clippinger discussed that the District has made significant advancements in the past year, and expressed appreciation to the Board for their leadership.

            Audit/Water Rate: Jamie Justice announced that Steve Scarboro is waiting to hear back from the Town of Denton about the new water rate, and has postponed the audit presentation until next month.

            Water Accountability Report: Jamie Justice explained that this percentage (54) was obviously not a number we wanted to see. He discussed that the field personnel have been searching daily as well as completing some night detection with listening devices. He further explained that although they have found and repaired numerous small leaks, the Burlington meter is still reading very high, thus indicating a major leak somewhere in that area.

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

            Financial Report: Jamie Justice announced that the first quarter of the fiscal year is now complete, with revenues at 25.5% and expenditures at 27.6%. He discussed that the water purchases have been higher than usual recently, due to the water loss.

            Report on Tap Fee Request: Jamie Justice explained that he had researched the customer�s situation, as directed by the Board at last month�s meeting. He discussed that he had confirmed with staff that the most recent BLSP mail-out, in November 2006, had included all property tax listing addresses, specifically Ms. Cruse�s. He recommended that the request for a $1,500.00 tap fee, based on the customer�s claim that she had not received any mail-outs, not be granted. The Board agreed and advised Jamie Justice to write a letter to the customer to let her know.  

            Water Tank Maintenance Contract: Jamie Justice explained that of the District�s four water tanks, only the Uwharrie Point tank is currently under contract for maintenance services. He discussed that the two options for keeping the tanks maintained as, 1) execute contracts for the other tanks or 2) the District handle maintenance through establishment of a capital reserve fund. Jamie Justice recommended the Board consider option 2, which he discussed, could include setting aside possibly $15,000.00 initially, and future amounts be decided during fiscal year budget preparation. He suggested that the maintenance work that involves climbing and going inside the tanks, be contracted out and completed annually. The Board expressed concerns of whether Option 2 would work if there was a time lapse between general managers. After discussion, the Board advised Jamie Justice to research companies that contract tank maintenance and report back to the Board.

            DOT Utility Agreement: Jamie Justice presented the Utility Agreement for NCDOT�s Beaver Dam Creek Bridge Replacement Project, and explained that the agreement included the estimated cost to the District, $7,308.00, for the pipe upgrade. The Board questioned whether the cost could be fixed rather than estimated. Jamie Justice explained that DOT�s agreements generally included only estimates and recommended the Board approve and execute the agreement. Debbi Yarbrough made a motion to approve the agreement as presented, including the advisement that the field personnel monitor construction closely and notify District management if and when any unforeseen costs arise. Tim Loflin seconded, passed by the Board 4-0.

            Budget Ordinance Amendment: Jamie Justice explained that the ordinance approved last month was missing the $500.00 misc. expense line item, and requested the Board approve the revised ordinance, which included it. Tim Loflin made a motion to approve the revised Water Line Replacement Budget Ordinance, Debbi Yarbrough seconded, passed by the Board 4-0.

            Privacy Act: Jamie Justice presented the Identity Theft Prevention Program and explained that the new privacy act mandated that the District adopt such a program to ensure proper handling of customers' confidential information. Tim Loflin made a motion to adopt the Identity Theft Prevention Program, Debbi Yarbrough seconded, passed by the Board 4-0.

            Manager Updates:

            Annexations: Jamie Justice discussed that after conversations with NCDENR, the Uwharrie Point and Heron Bay will be annexed together. He explained that the application was complete, including legal descriptions and a map of the proposed area, and that NCDENR would schedule the public hearing.

            North Main Street Line Extension Project: Jamie Justice explained that the property acquisition for the vault location was complete, along with the plans and specs, and the application to NCDENR had been sent in. He further discussed that the project could be bid as early as December.

            Line Looping: Jamie Justice announced that Gray Walls is currently designing Phase 1 and that two of the locations on the originally proposed list had been eliminated. He explained that since there was development interest near the Shoreline (Circle) Drive looping, he recommended waiting to see if there could be some type of cost-share agreement worked out. Jamie Justice also explained that he had discussed the looping proposed for Badin Shores Circle with HUA, who had informed him that looping this line would not do much to help the pressure and had recommended considering this one again after the BSR improvements were complete. The Board discussed and agreed with the changes as presented. Jamie Justice also mentioned that some of the plans may be ready to submit to NCDENR within 30-60 days, and construction beginning sometime after the first of the year.

            Trucks: Jamie Justice discussed that he was researching several deals on trucks, including a 1 ton service truck with an enclosed bed and two others that may be F150�s, Rangers, or Colorados. He also explained that he and the field staff have been considering whether or not there was a need for a 4x4 and the Board discussed and advised not purchasing a 4x4. Jamie Justice suggested that he present options and financing information at the November meeting, unless a special deal came along, in which case a special meeting could be called. The Board advised Jamie Justice to proceed with purchasing the two trucks (F150�s, Rangers, or Colorados), utilizing the budgeted amount, if a deal came along, and only to bring the issue back to the Board if financing was involved.

            Badin Shores Resort: Jamie Justice explained that the agreement with BSR was still in the works, but that they have requested the District take over the collections system beginning in January 2009. Jamie Justice informed the Board that his preliminary thinking involved the District continuing the contract that BSR has for the ORC of the collections system. Jamie Justice advised them that following the meeting he had scheduled with BSR management and staff he would have a more definite recommendation. The Board discussed and agreed, and also recommended that District field personnel should be involved in the operations of the collections system.

            Misc: Jamie Justice informed the Board that new field employee, Jay Thomas, would begin work on November 3^rd. As an FYI, Jamie Justice handed out a spreadsheet of late fees from neighboring water systems. He also presented the new chair possibility for the Board room and asked the Board members to try it out. Renae Snider updated the Board on the process of arranging the annual Board/Employee dinner, and the Board advised her to get possible dates in February.

            Tim Loflin made a motion to go into closed session to discuss property acquisitions for the BLSP and to consult with the attorney regarding BSR. Debbi Yarbrough 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. Debbi Yarbrough made a motion to adjourn, seconded by Tim Loflin, passed by the Board 4-0. Adjourned.