MINUTES
STATE OF
The
Cane Creek Water & Sewer District Board met for a regular meeting at
Present
were: Chairman Bill Moyer, Vice-Chairman
Also
present were: Deputy Clerk to the Board
CALL TO ORDER
Chairman
Moyer called the meeting to order.
Commissioner Messer made the motion for
the Board to convene as Cane Creek Water & Sewer District. All voted in favor and the motion carried.
FUNDING REQUEST: Fletcher Fire and
Rescue Department (FFRD) Sewer Extension
Chairman
Moyer informed the Board that there was information in the agenda book with
respect to various options for this funding.
There is also a letter from Fletcher indicating that the amount they are
looking for is $133,929. They’ll be
responsible for $14,317 and the balance is $119,612. They also indicated that
they’ve talked with the person whose company made the bid and the bid will last
as long as the price of the piping, etc. does not change. “As of the last I
heard the other day when I talked to them, it had not changed.”
Chairman
Moyer stated that one thing that had continually bothered him was the kind of
precedent the Board would set if they moved forward because there are a number
of other situations where there are water or sewer problems at the fire
departments that need to be addressed and should be addressed. He proposed to the Board that Henderson
County go ahead and fund this, $119,612, from the Cane Creek Water & Sewer
but that the District loan the money to Fletcher Fire & Rescue for up to
ten years so that they could manage the project, build the line, they’d get the
money in advance but then they would have to pay the District back. They would have two recourses to get the
money: 1) Option 5 (Chairman Moyer felt the Board should insist on this) which
is reimbursement to the applicant by capacity, and 2) They would have the
ability to cover any additional money in their funding request to the Board of
Commissioners at budget time. Chairman Moyer feels the money should come from
the Fire Department. This proposal would
be a way for the Fire Department to do this without affecting their quality of
service.
Options
Option #1. Grant to FFRD for
$119,929 from Cane Creek Water and Sewer District (CCWSD).
This
is not currently in the District’s budget.
The District’s Fund Balance to address planned and unanticipated Capital
Projects is approximately $620,000. This
option would expend 20% of the District’s balance. The project cost is from the Request Letter
from FFRD and the Low Bid, both included in the agenda package.
Option #2. Grant to FFRD for
$119,612 from the County’s General Fund.
This
is not currently in the County’s budget.
Option #3. Assess the Property
Owners Served by the Extension on the Basis of Acreage.
The
last attachment to the Agenda Item calculates the distribution of the project
cost to the properties served by the extension.
A map of the extension and property owners was provided as well as tax
information on each property. The authority to assess property is given to the
County and would not be done by the District.
The County’s budget would be used to fund the project and in turn the
assessment would be paid to the County.
The assessment is made whether or not the property applies for sewer
service.
Option #4. Assess the Property
Owners Served by the Extension on the Basis of Road Frontage.
The
specifics of this option are the same as Option #3 with the exception being
that road frontage is used instead of acreage.
The cost distribution is also included in the information included.
Option #5. Reimbursement to
the Applicant by Capacity.
With
this option the applicant (FFRD) funds the project and as properties served by
the extension tie into the system, the District requires a reimbursement from
the new applicant to the FFRD. This reimbursement is based on the computed cost
of capacity for the extension. The project capacity cost would be $3.23 per
gallon. This reimbursement requirement
is for 10 years then is removed by the District. For example, if an owner of a property served
by the extension applied for 360 gallons per day (typically residential usage),
they would pay a reimbursement to FFRD of $1,162.80. The reimbursement would be
in addition to the tap fee and capacity depletion fee.
Option #6. Deny the Request.
This
would leave FFRD with a couple of options.
One option being constructing the original Forcemain through private
easements with the two properties along the same side of US #25. This would cost
less than $30,000 but require private easements. The FFRD indicated that they have not
inquired about easements with the property owners and would not consider
inquiring. Another option is for FFRD is finance the project. CCWSD has financed larger interceptor
projects in the past.
Chairman
Moyer proposed that Cane Creek Water &
Sewer District loan the money to Fletcher Fire & Rescue Department
in the amount of $119,612, that they have a repayment schedule for up to ten
years to be negotiated with the fire department, they would have the ability to
get it back through the capacity when other people come on or through rates in
the future. FFRD would be the applicant. They would manage the project and the
county would not be directly involved.
Chairman
Moyer further stated that if another fire department made a similar request, we
would have a policy to go by.
Jerry
Creasman, Assistant Fire Chief at Fletcher Fire & Rescue Department,
explained to the Board that there were seven bids received but this was the
lowest. The bids ranged from $133,000 to $251,000. He also reiterated that FFRD is pumping and
hauling currently on a weekly basis and paying $150 weekly.
Following
discussion, Commissioner Messer made the
motion to approve Option #5 and loan the FFRD the money for up to ten
years. He added that FFRD use the money
that is currently being paid to pump and haul to pay on the debt and authorize
staff to execute the appropriate documents. A vote was taken and the motion
passed four to one with Commissioner Young voting nay.
Adjourn
Commissioner McGrady made the motion to
adjourn as the Cane Creek Water & Sewer District Board. All voted in favor
and the motion carried.
Attest:
Elizabeth
W. Corn, Clerk to the Board
William L. Moyer, Chairman