Meeting Minutes of May 11, 1992

The meeting was called to order at 7:00 pm by Acting Chairman Richard Parrish. Mr. Parrish stated that Mr. Mayers term had expired and he elected not to be reappointed to the Board. The roll was called. Present were Trustees Mr. Maurice Betts, Ms. Cathie Hutcheson, Mr. Richard Jumps, Mr. Richard Parrish, Mr. Arthur Vincent, and Mrs. Frances Youngblood. Mr. Stanley Hollister, which is a new board member, came in a few minutes after the roll was taken. Employees present were Mrs. Becky Roberts and Mr. Walter Butler.

People Attending: Lets Get Rid of Walter Members present were Mr. and Mrs. Danny Williams, Mr. Herbert Stearns, and Mr. Jerry Burton. Others present were Mrs. Martha Heern, Mr. Lew Hendrix, and Mrs. Billie Jacobini.

Minutes of the April 13, 1992 meeting were submitted for approved. Ms. Hutcheson made a motion to approve the minutes as submitted and Mr. Jumps seconded the motion. All in favor voice vote. The minutes were approved as submitted.

Mr. Parrish addressed all customers with requests stating that each customer is entitled to an executive session allowing the customer to discuss their request without any other people present other than the Board members and Board employees.

Customer Requests: Mrs. Billie Jacobini was present to discuss further details on her proposed line extension. Mr. Parrish addressed the EPA application which was submitted by Asaturian & Eaton. One minor correction is required by EPA for an air release valve to be added to the design. No other objections were made by EPA. Also, correspondence was received by BPWD Attorney, Ms. Hunter, concerning the deeds granting easements for this project. She stated that the form of the easement needs to be revised, and the measurements on the easements would need to be changed in order for the water district to have access to make repairs and necessary. Mrs. Roberts will send Mrs. Jacobini a copy of this letter, and Mr. Burton stated the Mrs. Jacobini could have a copy of his easement that Ms. Hunter made, so the same form could be obtained.

Cost recovery for Mrs. Jacobini: Mrs. Jacobini stated that she would like to have the same agreement drawn up on her line extension as Mr. Paul Simon had on his. Mr. Betts questioned the legal aspect of this and Ms. Hunter found no changes in the law. Mr. Betts stated that BPWD Ordinances call for cost recovery for line extensions. Mrs. Jacobini needs to submit a proposal for this. The questions on this project to date is the acceptance of EPA the revising of the easements, and a plan for cost recovery submitted by Mrs. Jacobini and the acceptance from the Board for the cost recovery.

Customer Requests: Mr. Gerald Gaffney’s water usage was discussed from last meeting. Each member received the usage for Mr. Gaffney’s meters for the last 2 years. Ms. Hutcheson made a motion to apply the Excess Water Usage formula for the months of October, November, December of 1991 and Mrs. Youngblood seconded the motion. Roll call vote was taken: Mr. Betts – yes, Ms. Hutcheson – yes, Mr. Jumps – yes. Mr. Hollister – yes, Mr. Parrish – yes, Mr. Vincent – yes, Mrs. Youngblood – yes. There being 7 yes and 0 no votes. The motion passes.

Secretary/Treasurer Report was read and accepted.

The Financial report was read and accepted.

Payment of the Bills: The bills were presented in the amount of $8,479.07. Mr. Betts asked if work orders were being filled out for contractual work now. Mrs. Roberts and Mr. Butler stated that work orders have always been submitted along with the contractual bills. Mr. Betts questioned a copy of the work order that he had when his meter was installed. His was on a whole sheet that was copied from a half sheet, which all work order are only half sheets. Mr. Betts was in agreement. Ms. Hutcheson made a motion to pay the bills as submitted and Mrs. Youngblood seconded the motion. A roll call vote was taken: Mr. Betts – no, Mr. Hollister – no, Mr. Jumps – no, Mr. Parrish – yes, Mr. Vincent – yes, Ms. Hutcheson – yes, Mrs. Youngblood – yes. There being 4 yes and 3 no votes, the motion passes.

Water Supply Operator Report: Mr. Butler reported that SHWD had a break, causing our district low pressure, dirty water and air in the lines. Therefore, the hydrants had to be flushed a lot. The radio is not working at this time, and is being repaired. This caused 2 other boil orders due to this. The end of the quarter that is in the WST was damaged due to condensation in the tank. Condensation is a problem in hot weather causing the inside of the tank to actually drip. The pump are now being ran manually by Mr. Butler at this time. He also changed all the light bulbs on the way up to close the hatch on top of the water tower. While doing this, Mr. Butler noticed that the paint is peeling on the tank by the tunnel going up and seen 3 layers of paint on it, so apparently the water tower has not been sandblasted. Therefore, the paint underneath may not meet with EPA requirements when the tower needs painted again.

Hand held radios: Mr. Betts asked last meeting about the 2 mobile radios that were listed on the fix assets inventory, in the amount of $2,058.00, of where these were, and both Mr. Butler and Mrs. Roberts stated that they both had one. The ones that Mr. Butler and Mrs. Roberts have are hand held radios which are about $50.00 apiece. The radios that the fixed asset inventory is referring to are the ones that are installed in the water tower and pump station, that were purchased from Walker Communications.

The condensation in the water tower was discussed further. It was agreed that Mrs. Roberts contact the Rural Water Association for any suggestions on what might be done to improve this situation. Mr. Butler stated that  the hatch blowing open might be part of the problem. The hatch won’t close all the way. A gap of ½ to ¾ inch is open when it is closed. There is no latch on it now. It is closed right now with a piece of wire. Mr. Butler will try to put a chain, gasket and links on it to see if this would help.

Audit for 1991: The Trustees started to review the items that the auditor suggested. Mr. Betts recommended that BPWD ask that a representative from Kemper CPA Group come to the next meeting to discuss the audit in detail. This was agreed by all. Their letter dated January 31, 1992 was discussed.

1. The letter stated that not all Trustees had filed a statement of economic interest for 1991. This has been taken care of and Mrs. Roberts will send one to Mr. Hollister for him to file.
2. The letter stated that the checks in the bank reconciliations were not put in order. This will be done for now on so that it will be easier for the accountant.
3. The letter stated that the District was under collateralized to Home Federal by $14,093.84. This was in the amount in excess of $100,000. Since the Board has elected to move some of the money from matured Certificates to move some of the money from matured Certificates to 1^st National Bank in the savings accounts, this as been taken care of.
4. The letter stated that too much money according to Bond requirements, was being deposited into Debt Service, Depreciation and Reserve Accounts. Mr. Parrish stated that this was a minimum amount required when the Bond requirements were drawn up, and that at this time, more money is needed now than when the Bond ordinance was written.
5. The letter stated that on the payroll, the District is not withholding Social Security or Medicare taxes. Mr. Parrish talked with BPWD Attorney, and Ms. Hunter’s opinion on this was that Mrs. Roberts is an employee, so this should be taken out of her salary, and that Mr. Butler is a contractual employee, therefore do not take this out of his salary.
6. The letter stated that Mr. Butler is being paid by salary and contractual and that they recommend that he be paid only salary. The need for revision of the contracts were discussed. Mr. Williams asked if the Water District pays workers compensation on Mr. Butler. It was stated that he is only covered by this when is doing his routine duties being paid by salary. Mr. Butler has provided a copy of his Certificate of Insurance to the Water District that he is covered when he is doing contractual work.
7. The letter stated that not all checks written were supported by canceled invoices. The only ones missing were for the postmaster for stamps that were paid by check. Mrs. Roberts will ask for receipts for this from now on. They also noted that Mrs. Robets was signing the checks and cancelling invoices before the bills were approved for payment. Mr. Parrish noted that the checks are invalid with only one signature. This will not be done until after each meeting from now on.
8. The letter stated that the mileage forms were not approved by anyone, and that Mrs. Roberts was being paid for mileage, but her contract did not cover this. Mr. Parrish stated he had Mrs. Robets draw up an amendment to her contract to cover mileage at $0.28 per mile for current IRS mileage allowance. An amendment to Mr. Butler’s contract to cover mileage at $0.28 per mile was also drawn up. Mr. Betts stated that since Secretary/Treasurer and WSO Contracts were due in May to be revised, to do the new mileage rates at the same time. The only contracts in the file are the ones originally signed by Mr. Butler and Mrs. Roberts.

Meter installation for leak and theft detection: Cost proposals from Mr. Butler: Mr. Butler stated that it would be a gestament of $500 – $600 for each meter installation. Mr. Butler stated that in opinion these were not needed to check for leaks and would just be more maintenance. The system can be check in other ways right now that are a lot cheaper. This way was taught by Mr. David Biggs, of Blankenship Engineers, and it is just as reliable in finding leaks or thefts as to install these meters. Mr. Butler stated that this was only his opinion and the Board would need to make the final decision. Mr. Betts made a motion not to install these meters based on Mr. Butler’s opinion and Mr. Jumps seconded the motion. A voice vote was taken. All in favor voice vote.

Let’s GROW request for copies of all financial records status: Mr. Burton’s new attorney, Mr. Scott Hendricks, asked for a continuance on the case for 2 or 3 weeks and Mr. Lockwood did to object to this. Specific dates for the viewing of the masked documents were given to Mr. Burton’s Attorney, and no response was received. Mr. Lockwood’s office had said that he viewing of these documents could be done at their office. Mr. Parrish recommended that it be done at the WST Building with a Board Member present. Mrs. Youngblood said that she would assist Mrs. Roberts with this. Mr. Burton stated that the details would be worked out when the time came. He then said that he would make known what particular records he wanted to see, and he would try to keep it to a minimum, so that these records could be taken to the meeting place, and if he wanted something that was exempt from inspection and copying, then the judge would have to make the decision whether he could or not.

New Board Appointment: Mr. Parrish took this time to read the new appointment for Mr. Stanley Hollister for a five year term that will expire the 1^st Monday in May 1997. Mrs. Roberts will copy Mr. Hollister a set of the Buncombe Water District Ordinances.

SHWD v BPWD: Ms. Hunter has received the documents from SHWD that is necessary to apply the formula agreed upon by the arbitrators in settling the dispute. Ms. Hunter asked that the committee be formed, or someone be hired who has knowledge of this dispute to work with her in sorting out these documents. SHWD’s lawyer, Mr. Broom, is pressing Ms. Hunter for this to be settled. Ms. Hunter suggested that Mr. Walter Brieschke be hired to go through these records. Mr. Betts suggested that Kemper CPA Group be asked for a proposal on how much they would charge to help go through these records. Mrs. Roberts will send Kemper CPA Group a copy of the arbitration formula. Ms. Hutcheson suggested that Mr. Brieschke be asked if he would be interested in working on this, and if so, how much he would charge. Both Kemper CPA Group and Mr. Walter Brieschke will be notified.

Annual election of Chairman and Vice Chairman: Mr. Parrish opened the floor  for nominations. Mrs. Youngblood nominated Mr. Parrish for Chairman and Ms. Hutcheson seconded the nomination. Mrs. Youngblood nominated Mr. Jumps for Vice Chairman and Mr. Betts seconded the nomination. Mr. Betts made a motion that the nominations be closed. Mr. Vincent made a motion to elect by acclamation and Ms. Hutcheson seconded the motion. A voice vote was taken to vote by acclamation, withal in favor. A voice vote as taken to elect Mr. Parrish as Chairman and Mr. Jumps as Vice Chairman by acclamation. All in favor with no opposition.

Employee contracts: Ms. Hutcheson made a motion to continue employment for Mrs. Roberts and Mr. Butler until new contracts and work agreements could be revised with a committee and voted on at next month’s meeting. Mrs. Youngblood seconded the motion. A voice vote was taken. All in favor with no opposition. A committee of Mr. Betts and Mr. Parrish will meet with the employees and discuss the current contracts and then Ms. Hunter will review the results.

The monthly meeting adjourned by motion of Ms. Hutcheson and seconded by Mr. Jumps. Voice vote – all yes. Meeting adjourned at 8:48 pm.