STOKES COUNTY WATER SEWER AUTHORITY MINUTES

JULY 22, 2004

The Stokes County Water Sewer Authority met in a regular meeting on July 22, 2004, in the Commissioners Chambers of the Administration Building in Danbury with the following members present:

Wayne Smart, Chairman

Ron Clifford, Member

Worth Hampton, Member

Arzell Montgomery, Member

Ron Morgan, Economic Development Director

Lisa Lankford, Finance Director

Brenda Carter, Secretary

Others present: Tory Wagoner, Cavanaugh and Associates

Brad Perkins, MLP Construction

Carolyn Parese, Danbury Town Council

Absent: John Hawkins, Vice Chairman

Jay Kinney, Public Works Director

Julia Edwards, Finance Director

Mr. Smart, the Chairman brought the meeting to order and asked for approval of the minutes for June 10, and June 29, 2004. Mr. Hampton noted that in the June 10, 2004, minutes he was absent and on page three it stated “Mr. Hampton asked…”. It was also noted that on page four, concerning the Germanton Winery, that this was an expansion, instead of building a new winery and also asked if this was the State asking this or was this the Winery Association.

Mr. Wagoner noted that Mr. Simpson, Germanton Winery, came before the Board on behalf of the Germanton businesses and requested public sewer for Germanton and discussed the expansion of his business. Mr. Montgomery noted that the North Carolina Wine Growers Association had put the Germanton Winery on their tourism list and was requesting this expansion and needed sewer for this expansion.

Mr. Wagoner stated that Cavanaugh and Associates are in the process of setting up a meeting with the Germanton property owners and Germanton businesses to discuss this issue.

Mr. Montgomery made a motion to approve the minutes, seconded by Mr. Clifford and the motion was approved.

For: Mr. Montgomery

Mr. Clifford

Mr. Hampton

Mr. Smart

Absent: Mr. Hawkins

DANBURY TOWN COUNCIL

Ms. Carolyn Parese, a member of the Danbury Town Council, came before the Board and gave an update on the Danbury Project. She noted that the Board had approved giving FIVE THOUSAND DOLLARS ($5,000.00), matching a grant, to Danbury for a Capital Improvement Plan by Cavanaugh and Associates. The Danbury Board had decided to do a Preliminary Engineering Report instead at a lower cost. She asked that the Board consider letting the Town of Danbury hold this $5,000.00 until the cost of this Preliminary Engineering Report was determined and return the difference to the Board.

After discussion of this matter, the Board requested that the $5,000.00 be returned to the SC Water/Sewer Authority and when the amount was determined that Ms. Parese return to the SCWSA Board and request funding from the Board at that time. Ms. Parese thanked the Board for hearing her request and stated that she would return at a later date.

Mrs. Lankford will inform Ms. Edwards of this decision and that a letter should be written to the Town of Danbury requesting the return of the FIVE THOUSAND DOLLARS ($5,000.00).

HWY #65 AND HWY #311 ACCESS

Mr. Smart asked Mr.Brad Perkins if he would explain to the Board Mr. Ryan Davis, Jr.’s request. Mr. Perkins explained to the Board that Mr. Davis wanted permission to buy water from the SCWS Authority in the Pine Hall and Germanton areas to fill up customers’ pools. Mr. Perkins spoke of possible back flow contamination and the cost of meters that would need to be put in place.

After discussion, Mr. Montgomery made a motion to deny this request, seconded by Mr. Clifford, and the motion was approved. Mr. Hampton wanted to add that the Board is not interested in this business.

WINSTON-SALEM RATE INCREASE

The Board discussed the water rate 9% increase by Forsyth County and how much to add to be able to break even. Ms. Edwards was to present the Board with a report, the Board was to discuss this report and determine what amount to charge. Ms. Lankford will inform Ms. Edwards of their request of a report for the next meeting so that letters would be sent out to the users.

FIDDLERS CREEK UPDATE

Mr. Tory Wagoner, Cavanaugh and Associates, noted that he had three bids other than the one that he had brought to the Board at the previous meeting from MLP Construction that he held in confidence and gave them the opportunity to resubmit a bid.

With the bid by Yates Construction being the lowest bid at $52,518, Mr. Wagoner noted that the bid was awarded to Yates Construction. He noted that including this bid there was $18,595 set aside for the building materials, that the total construction project price was $71,113, which comes under the budgeted amount of $75,280.00. There is a contingency fund of $3,764 to be added to this amount. He noted that there would be a 10% contingency leftover for unexpected costs if the contract is awarded to Yates Construction.

Mr. Clifford made a motion to accept this bid, seconded by Mr. Hampton and was approved by the Board.

Mr. Smart asked Mr. Wagoner if the project could be completed at this bid and Mr. Wagoner noted that it was a small project and that it could be.

Mr. Wagoner noted that MLI bid at $71,890 and MLP bid at $62,605.

SAURATOWN FIRE DEPARTMENT

Mr. Wagoner noted that the Sauratown Fire Department waterline extension was funded through the Rural Center. He stated that there was an announcement at the Fire Station of this funding and that the funding was available.

He stated that they had met with the officials of the City of King to inform them of this project and to get them involved. He stated that there was a little discrepancy in what they were originally told concerning the project. There needs to be a booster pumping station installed at the base of their Mt. Olive elevated tank in order to get proper pressure to the fire station. He noted that the City of King had been in negotiation for years with the fire station, but ended negotiations because they felt that the fire station would have a better chance of receiving funding from the Rural Center if the City of King was not involved.

Mr. Wagoner stated that what had been communicated to them was that the City of King was being un-cooperative and that was why the Water Sewer Authority and Representative Rex Baker requested Cavanaugh and Associates to go through the Rural Center under the guise of the Water and Sewer Authority.

The City of King had not been against this project, they did not have the funds for this project. The City of King requests that the Water and Sewer Authority officially request the ability to tap onto the lines and to lay out the plans for the project. Mr. Wagoner read a letter that he had drafted that would come from the Water and Sewer Authority to Mr. Jack Warren, Mayor of the City of King. Attachment

Mr. Wagoner noted that they had been conservative in the estimates of this project, there was 15% contingency to be applied to the project, which is approximately $30,000.00 which would make three-fourths of the booster pumping station addition amount.

Mr. Wagoner stated that Cavanaugh and Associates recommended to move forward with the project which would get under a contract with the Rural Center for the funds and moving forward with a design to be able to feel comfortable with giving a nailed down construction estimate to determine if there is proper funding.

Mr. Wagoner noted that the total funds for this project is $273,000 and if there is a shortage of funds that there is the possibility that the City of King could be a part of this project.

Mr. Hampton asked if this included the pump and Mr. Wagoner noted that this did not include the pump that would cost $30,000.

Mr. Wagoner noted that the only action needed was to approve sending this letter. The Rural Center is not ready at this time to get under contract and obligate the funds. Their actual announcement cycle is not until the end of August, that this was a special announcement.

Mr. Montgomery asked about the $27,000 and where would the Board get this funding that the letter states that Stokes County would match. Mr. Wagoner stated that he would check on this that is was unaware of this amount. It was asked if hook up fees would take care of this amount.

Mr. Clifford stated that he wanted assurance in writing from the City of King that they would take over the system, maintain and operate the system before the Board commits to this amount. Mr. Wagoner stated that he would rewrite the letter to King stating that the City could possibly participate to help with this local match.

FIDDLERS LANE

Mr. Montgomery asked how the Board was to explain to the citizens of Fiddlers Creek that they must pay a $1,000 hook-up fee and the citizens of King do not have to pay the hook up fee. Mr. Wagoner stated that this is the same as the Germanton residents received, a grant for this amount and the Highway #65 project was not funded by a grant.

It was discussed that a uniform amount should be charged throughout the County.

Mr. Wagoner asked what was the procedure for informing the residents of Fiddlers Lane of the tap on fees. Mr. Smart asked if Mr. Wagoner still had the letters that were sent to the Highway #65 users. Mr. Wagoner stated that this needs to be sent out by the County or MLP Construction to be collected before they are hooked up.

Mr. Smart asked about a starting date for this project and Mr. Wagoner noted that the plans were some time in August.

ITEMS OF GENERAL CONCERN

Mr. Smart noted that he had invoice for $500.00 from Cavanaugh and Associates for approval by the Board for payment.

Mr. Hampton made a motion to approve the payment, seconded by Mr. Montgomery and the motion was approved: For: Mr. Hampton, Mr. Montgomery, Mr. Clifford, Mr. Smart. Absent: Mr. Hawkins.

Mr. Clifford requested information concerning the Water Rights and Mr. Wagoner stated that every thing was moving along.

As there was no further business, Mr. Montgomery made a motion to adjourn, seconded by Mr. Hampton and the Board approved.