STATE OF NORTH CAROLINA)            STOKES COUNTY

                                                            )           WATER/SEWER AUTHORITY

                                                            )           DANBURY, NORTH CAROLINA

COUNTY OF STOKES                   )           JUNE 8, 2011

The Stokes County Water and Sewer Authority met in the third floor Conference Room of the Ronald Reagan Building on Wednesday, June 8, 2011 at 3:00 p.m. with the following members present:

John Hawkins, Chairman

Arzell Montgomery, Member

W. Scott Snow, Member

 

Also present were:

Mark Delehant, Public Works Director, Ex- Officio Member

Julia Edwards, Finance Director

Darlene Dill, Secretary

 

Members absent:

Worth Hampton, Vice Chairman

Wayne Smart, Member

 

 

           

APPROVAL OF MINUTES

 

            Chairman John Hawkins called the meeting to order.  Chairman Hawkins asked if there were any corrections to the minutes of the March 10, 2011 meeting.  No corrections or additions were noted. Mr. Montgomery made the motion to approve the minutes, Mr. Hawkins seconded and the motion was unanimously approved.

 

 

 

DISCUSSION OF OLD BUSINESS

 

            Mr. Hawkins began the meeting with the discussion of old business.  The first item of concern were the past due accounts that had been filed with the Debt Set-Off Service.  Ms. Edwards informed the board that she had still heard nothing from them and that no payments had been received.  Ms. Edwards explained the Debt Set-Off procedure and informed the board that this process only works when the money is available to the State.  She also spoke to the fact that the Tax Office had received money thru these means before.  Ms. Edwards confirmed that she receives information often confirming that theses accounts are still active and waiting for available funds.  Mr. Delehant suggested hiring an attorney to attempt to obtain the monies thru a civil suit in small claims court.  The civil suit action and the process were discussed. Mrs. Dill explained her knowledge of the civil suit process to the board. Mr. Delehant also suggested adding the delinquent accounts that have not yet been sent to the Debt Set-Off Service.  Mr. Montgomery made a motion to inquire about taking civil action in small claims court, Mr. Snow seconded and the motion was unanimously approved.

 

BUDGET ORDINANCE AMENDMENT #1 (ATTACHMENT 1)

 

            Julia Edwards, Finance Director presented members with a copy of the Budget Amendment #1 (see attachment 1).  This amendment is necessary to balance the accounts thru June 30, 2011 to maintain a balanced budget.  Mr. Hawkins made a motion to approve the ordinance, Mr. Montgomery seconded and the motion was unanimously approved.

 

PROPOSED BUDGET 2011-2012 (ATTACHED)

           

            Ms. Edwards informed the board that the budget proposal that she was presenting was completed before her knowledge of a rate increase from the City of Winston.  Due to this the approval of the budget was moved until after the discussion of the increased water rates.      

           

RATE INCREASE FROM THE CITY OF WINSTON (SEE ATTACHED)

 

            Mr. Delehant explained the Cost of Water spreadsheet (see attached).  He explained that we are billed by consumption of the number of cubic feet of water used. Mr. Delehant explained how at times if the consumption is low we are actually paying a higher rate for water and at times the customer is paying a rate lower than what we are actually charged .  The City of Winston has increased the water rate by 8% effective, October 1, 2011.  Mr. Delehant proposed the SCWSA increase the rate to its customers by 10% in order to cover those times when consumption is low and the water cost is higher.  The 10% proposal would be an increase to the customer of $5.70 per 1000 gallons.  Mr. Delehant proposed that the availability fee of $18.00 remain the same.  Passing of the rate increase was delayed until after the discussion of the availability fee for the Town of Walnut Cove.

TOWN OF WALNUT COVE AVAILABILTY FEE

 

            Mr. Delehant discussed the availability fee for the Town of Walnut Cove and that no agreements were made or have not been signed by both parties.  Mr. Delehant explained how he intended to use the NC Rural Water Association to assist with a template so that the Town of Walnut Cove could be approached by himself and Mr. Hawkins to explain our proposal.  The proposal would state that the Town of Walnut Cove would be responsible for purchasing a minimum of 500,000 gallons per month. If more was used, the cost would be factored to a lower rate much as our agreement with the City of Winston.  The amount of anything less than 500,000 gallons would be billed as 500,000 gallons regardless.  The Town of Walnut Cove would pay for the first 500,000 gallons at the same rate as all other customers.

 

ITEMS OF GENERAL CONCERN

 

            The board continued with prior discussions.  The first item of general concern was to pass the rate increase due to the rate increase from the City of Winston Salem.  Mr. Delehant informed that he would do a special mailing to the customers to inform them that the rate increased was forced by the City of Winston and not by the SCWSA.  Mr. Hawkins made a motion that the rate increase by 10% effective September, 15, 2001, Mr. Scott seconded and the motion was unanimously approved.

            Second item to be addressed was to address a vote on the proposed budget.  Ms. Edwards explained the proposed change of $66,500 to both the revenue and expenditure side.  Mr. Hawkins made a motion to approve the proposed budget, Mr. Scott seconded and the motion was unanimously approved.

 

            Ms. Edwards explained the increase in the budget due to health insurance coverage group and dental.

 

NEXT SCHEDULED MEETING

 

            Next scheduled meeting will be September 8, 2011 at 3:00, in the 3rd floor conference room.  With no further business to discuss Chairman Hawkins made the motion to adjourn, Mr. Montgomery seconded and the motion was unanimously approved.

 

 

___________________________                              ____________________________

Darlene Dill, Secretary                                                John Hawkins, Chairman