STOKES COUNTY WATER SEWER AUTHORITY

 

MINUTES

 

OCTOBER 7, 2004

 

 

            The Stokes County Water Sewer Authority met in a regular meeting on October 7, 2004, in the Commissioners Chambers of the Administration Building, (the Ronald Wilson Reagan Memorial) in Danbury with the following members present:

 

            Wayne Smart, Chairman

            John Hawkins, Vice Chairman

            Ron Clifford, Member

            Arzell Montgomery, Member

 

            Jay Kinney, Public Works Director

            Julia Edwards, Finance Director

            Brenda Carter, Secretary

           

            Absent:  Worth Hampton, Member

 

            Also present:  Rick Morris, County Manager

                                   Tory Wagoner, Cavanaugh and Associates

                                    B.J. Clifford

 

APPROVAL OF MINUTES

 

            Mr. Smart brought the meeting to order and asked for approval of the September 9, 2004, minutes.  Mr. Montgomery made a motion to approve the minutes, seconded by Mr. Clifford and the motion was approved.

 

 WALNUT COVE FEASIBILITY STUDY

 

            Mr. Tory Wagoner with Cavanaugh and Associates gave an update on the Feasibility Study for Walnut Cove.  He noted that there were three phases; the first was to see what the operation maintenance cost of their existing system; the second, was the hydraulic model, if the valve is opened what will happen in the Walnut Cove system, will the pressure be a problem and will it work throughout the town and step three would be a Water Source Analysis which would be a mixture of the water from the Walnut Cove wells and Winston-Salem water and to see if this would work.  They have the cost for each phase and recommend to start with the first phase. At that point the SCWS Authority Board would make a decision to sale water at this rate to Walnut Cove.  If the Board decided to do this, then would move to the second phase.  He noted that the cost of $5,800.00 for operating and maintenance, $4,000.00 for the Hydraulic Model, based on Walnut Cove already having the biggest piece of the model and $4,000 for the mixing analysis.  This would be a total amount of THIRTEEN THOUSAND EIGHT HUNDRED DOLLARS ($13,800.00). 

 

            Mr. Wagoner noted that Walnut Cove could present a proposal as to what they think they are paying to produce water.  He noted that Cavanaugh could cut the costs by looking at the books in the Town Office and estimating the costs. 

 

            Mr. Smart was asked if the Town of Walnut Cove was interested in this joint venture, sharing the cost, and Mr. Smart replied that he thought they would be in agreement.  After further discussion Mr. Smart asked Mr. Wagoner if he would attend a meeting with the Town Board of Walnut Cove to discuss this issue.  Mr. Smart will notify Mr. Wagoner of the date  first Monday in November and time. Ms. Edwards informed the Board that the date would be November 2nd.

 

TOWN OF DANBURY

 

            Mr. Kinney spoke on behalf of Mrs. Jane Priddy Charleville, .  He gave an update on the $400,000.00 grant application for the Town of Danbury.  Mr. Rick Morris, County Manager, informed the Board that he had a copy of the full grant application for the SCWS Authority’s review. 

 

HIGHWAY #65 PROJECT

 

            Mr. Smart noted that the Highway #65 Project and Barry West’s interest in Brookhaven Development being added to the water line. 

 

            Mr. Wagoner noted that he had two separate cost estimates from a survey made in September, 2000, for running water down Brookhaven Road.  The first was with fire protection for a cost of $60,000, this would run 6” line and two fire hydrants and the second cost of $47,000 was for domestic water only, no fire protection, and running a 2” line.  This would be a cost of $6,000 for each connection (ten homes on this road) with fire protection or $4700 without fire protection.  He thought the cost difference today would be very little. 

 

            Mr. Smart asked about the benefits by running water to these residents.  Mr. Wagoner noted that with the $1,000 per connection, this would generate $10,000 physical revenue and if you run 2” lines that would leave a cost of $37,000 for the Board if the residents did not contribute more.   Mr. Wagoner had a copy to be taken to Mr. West of these cost estimates.

           

 

SAURATOWN PROJECT UPDATE

 

            Mr. Smart asked Mr. Wagoner for an update on the Sauratown Project.

 

Mr. Wagoner noted that he had received an e-mail from his contact at The Rural Center, Julie Haigler, she noted that she had not talked with Billy Ray Hall, the Executive Director of The Rural Center concerning this matter.  Mr. Wagoner noted that he was waiting to hear from Ms. Haigler. 

 

            Mr. Wagoner informed the Board that he was still having communications with the City of King and they were also waiting to hear from The Rural Center.

 

FIDDLERS CREEK

 

            Mr. Smart asked Mr. Wagoner for an update on Fiddlers Creek. 

 

            Mr. Wagoner informed the Board that the project had proceeded with sanitary sewer pipe and fire hydrants, provided by Ferguson’s, being installed.  It was discovered that 500 feet of this sanitary sewer pipe had been installed instead of pressurized water pipe.  He noted that the quote did say SDR 35 which is storm sewer pipe.  They quoted this, fire hydrants and water meters and with their knowledge should have realized that SDR35 was not the pipe that was needed. He also noted that the specifications that Cavanaugh had put together listed SDR 35 and that is what the contractor wants to be held to. He noted that the contractor installed 500 feet of the sewer pipe without recognizing this was the incorrect pipe that should have had a blue stripe signifying that this would be the correct pipe to use.  He noted that the employee from Fergusons’ that had quoted the pipe and had been the contact person was no longer an employee of Fergusons.

 

            Mr. Wagoner noted there was a cost difference in the total project of TWO THOUSAND DOLLARS ($2,000.00).  Mr. Wagoner noted that out of the sixteen hundred feet of pipe to be installed, eleven hundred had been installed and when they have completed this installation they will go back and install the correct pipe.  By the end of the week they hope to have all the pipe in the ground and begin the services.  He also noted that there are others now signing up for hookups. 

 

            Mr. Montgomery asked if pressurized pipe was ordered and Mr. Wagoner noted that it was not, that specified SDR35 pipe was on the purchase request.  Mr. Wagoner noted that it was his understanding in conversations that Ferguson had said this is storm sewer pipe do you want water pipe and was told this is a water project and we want water pipe and when quotes came out it went to Danny Stovall, Purchasing Agent for a purchase order. Mr. Wagoner noted that the pipe was already in the ground when they saw this purchase order.

 

            Mr. Clifford asked if Mr. Wagoner asked if he thought the basic error was in the supplier and Mr. Wagoner stated that he thought it was.  Mr. Montgomery asked if Cavanaugh specified sewer pipe how could the blame be on someone else.  Mr. Wagoner noted that they specified SDR35 in the original quote and when Ferguson had called and asked and was told that it was a water project and still they quoted on SDR35 pipe. 

 

            Mr. Hawkins asked if there was written communication of this conversation and was told that there was not.  Mr. Smart asked if there would be an extra charge for removing this pipe and installing new pipe.  Mr. Wagoner stated that the contractors contract is just labor, the labor that it cost to dig it up and put new pipe back in.  Mr. Hawkins asked why the Authority needed to pay the contractor to dig this up and Mr. Wagoner noted that the contractor’s argument would be that he was to install the pipe that was provided by the Authority. 

 

            Mr. Hawkins asked who was to oversee the project to make sure it is done correctly, that five hundred feet of pipe and been installed with no one to oversee it.

Mr. Wagoner noted that the real mistake was breaking the pipe out from the labor, that normally this would be the contractor’s responsibility to order pipe to specifications.  The Authority was in a rush a year and a half ago to use this money (purchase pipe) before losing it. 

 

            Mr. Clifford asked if the pipe was ordered by the County and Ms. Edwards noted that it was ordered by the specifications submitted by Cavanaugh and Associates and Mr. Wagoner noted that Cavanaugh supplied the original quote from Fergusons to the County. 

 

            Mr. Smart asked the difference in cost of pipe and Mr. Wagoner noted that the difference would be $1.50 to $3.50 or about $8,000.00 and the 10% contingency for the total project would help with the cost.  Mr. Clifford noted that if the Authority had ordered the correct pipe then the Authority would have had to pay $8,000 for that.  The only difference in the cost is taking the pipe out.  Mr. Hawkins asked if Fergusons’ was taking the pipe back and Mr. Wagoner stated that they were. 

 

            After further discussion, the Board noted they had no problem with paying for the correct pipe as long as there was full credit for the SDR35 pipe.  The matter of the cost for removing the pipe and installing the correct pipe would need to be discussed between Cavanaugh and Associates and Fergusons’. 

 

TOWN OF WALNUT COVE

 

            Mr. Montgomery informed the Board that he thought the Town of Walnut Cove should be informed and realize that the Highway #65 Project was installed for the benefit of the Town of Walnut Cove.  He noted that Representative Rex Baker convinced the Rural Center of the need for water that the Town of Walnut Cove had.  He felt that the expense of running this line should be to the Town of Walnut Cove and Mr. Smart agreed.  Mr. Wagoner noted that the justification that was used of why Germanton did not have a tap fee and Highway #65 did have a tap fee was to run the water to the Town of Walnut Cove, even if no one had tied on along Highway #65.

 

            Mr. Smart also noted the fire rate was high in the Town of Walnut Cove and if the Town of Walnut Cove used this water from Forsyth County on a constant basis it would lower the fire tax. 

 

            Mr. Hawkins asked if money could not be saved by only doing a Water Source Analysis and Mr. Wagoner noted that you must look at the hydraulics, when a valve is opened you must know the pressure.  It could turn the pumps off at a certain pressure.

 

            After further discussion Mr. Smart asked the Board to meet with the Town of Walnut Cove at their November meeting.  Mr. Smart noted that there could be a joint meeting with the SCWS Authority and the Town of Walnut Cove Board. 

 

ITEMS OF GENERAL CONCERN

 

            Mr. Smart noted that at this time that land had been bought and there was rumor that thirty houses were to be built behind the funeral home on Highway #65.  This could be thirty new additions to the Highway #65 line.  Mr. Wagoner noted when Mr. Smart received confirmation of this that he needs to inform the Developer that he should build the lines to the SCWS Authority specifications.

 

            Ms. Edwards presented the Board with a copy of an invoice  ($1,099.60) from Cavanaugh and Associates and asked for their approval for payment.  Mr. Montgomery made a motion to approve payment of this invoice, seconded by Mr. Clifford and was approved with the following vote:

 

            For:      Mr. Montgomery

                         Mr. Clifford

                         Mr. Hawkins

                         Mr. Smart

            Absent: Worth Hampton

 

 

            The Board then discussed scheduling the next meeting date for November 4th and the joint meeting with the Town of Walnut Cove on November 2nd. 

 

            As there were no other items to discuss, Mr. Clifford made a motion to adjourn, seconded by Mr. Hawkins and the meeting was adjourned.