December 2009

Minutes

Webb Creek Utility District

(WCUD)

Friday, December 4, 2009

Commissioners Present

Robert Vick, President

G.H. Conner, Vice President

Delmar Ball, Secretary

In Attendance

Linda & Johnny Morris, Utility Customers

Sue White, Attorney for the Morris’s

Gary McGill, McGill and Associates

James Sunstein, District Manager (Staff)

Mr. Vick called the December Board of Commissioners meeting of WCUD to order at 10:00

a.m. at the district office 3625 Lindsey Mill Road, Gatlinburg.

Motion to approve agenda made by Mr. Ball seconded by Mr. Conner and passed.

Motion to approve November 2009 Board of Commissioners meeting minutes and October 2009

financial report made by Mr. Ball, seconded by Mr. Conner and passed.

Mrs. White attorney for the Morris’s is requesting for Mrs. B. Walters of 4175 Old Webb Creek

Road. Mrs. Walters wants to connect to the sewer. The reason Mrs. White was present is

because Mrs. Walters has chosen to try legally to get the Morris’s to sign an easement so she can

cross their land and connect to the sewer. The Morris’s have no problem with granting the

easement to Mrs. Walters. The manhole the district located for Mrs. Walters to connect to is on

Bent Creek Golf Course property. Mr. Morris requested the district tap directly into the sewer

line not the manhole. The district does not have a written easement from the golf course but we

do have an easement by prescription because the line has been installed over a year. The

easement by prescription is 10 feet according to Mr. Jim Gass, attorney for the district.

According to Mrs. White a prescriptive easement has limitations you have a right to be there and

a right to maintain what you have for all these years but not to make changes to the line. Mrs.

Walters septic is on the Morris’s property. The Morris’s are willing to grant an easement to

allow Mrs. Walters to connect to the district sewer. Mr. McGill had a brief discussion with Mrs.

White regarding the direction the sewer line should be ran to reach the manhole. Mr. McGill

suggested the district meet with Mark Wallace, of Bent Creek Golf Course to try to obtain an

easement. The district needs a map that shows where the proposed line would be installed. Mr.

Vick stated the district would prefer new customer service line go manhole to manhole and that

would require Bent Creek Golf Course easement. Mr. Vick suggested Mr. Sunstein and Mr.

McGill meet with Mr. Wallace to request an easement to install the sewer line.  Mr. Vick stated according to policy any connection into the district’s manhole will be done according to district’s specifications.  It is the customer’s responsibility to get the line to the district’s manhole.

Outdoor Resorts of America (ORA) was not present.

Mr. McGill reported the Outdoor Resorts metering manhole is to be delivered today or Monday the district has been receiving pieces and parts for some time that will be assembled onsite.  The manhole which houses the metering equipment has not yet been delivered.  The manhole will not be delivered until January 2, 2010 due to paperwork issues.  This doesn’t affect anything regarding metering ORA is only paying a minimum charge for the 12 months after the meter is installed while the district is obtaining the flow data.

Mr. McGill has been meeting with Bent Creek regarding the timeshare units explaining the changes that will affect them in the Rate Study.  Bent Creek wanted to know what percentage of the water the district purchased from Newport Utilities was sold to them and what percentage of the revenue we received was from them.  Mr. McGill calculated and found that the average residential customer used approximately 3200 gallons per month on average in water, Deer Ridge Resorts was slightly over 3000 and Bent Creek was around 2900.  So all these were put into a residential customer class because the usage was so close.  Bent Creek requested the district look at them as a separate customer class because they were lower than the others in this customer class.  Mr. McGill went back to fy 2006-2008 Bent Creek did have higher usage in 2007 than in 2008 or 2006.  Mr. McGill stated that there may be justification to take their minimum to 2900 gallon per month.  This would reduce their minimum by $1.00 month per unit.  But that puts more of their usage into the sewer usage the difference is only about $1200.00 per year.  Mr. McGill told Bent Creek Golf Village if they wanted to be a separate customer class they should come to the Board of Commissioners meeting.   As far as Mr. McGill knows Bent Creek is fine, but we may hear back from them stating they want to be in their own customer class as timeshare units.  Mr. McGill told them if they have a great year and their average is above the 2900 gallons the district would have to reevaluate the rates.  The district is trying to avoid having to reevaluate their rates.  To Bent Creek credit they have spent a lot of time trying to understand the districts rate study.  Mr. McGill will contact them today to see if they have anything else to bring before the Board of Commissioners.  Mr. McGill feels the Bent Creek issues are resolved.

Mr. Sunstein questioned about the flow meter being installed so close to the creek, to pour the pad to place the fiberglass manhole on, the problem is keeping the water off the pad while it is drying.  These details will be worked out with Mr. McGill’s staff.  Mr. McGill stated the district has no choice this is where it has to be installed.

According to ORA flow meter October was 1.5 million gallons and for November 900,000 was recorded.  The district was informed by an employee of ORA they had a huge water leak after it was repaired their water usage dropped by 80%.  November 8, 2009 was when they repaired their water leak, after that is when the usage dropped drastically.  The district is monitoring the flow meter and keeping it clean.  After a huge rainfall on November 11, 2009 and their leak was repaired there was over 110,000 gallons per day flow the meter recorded.

Mr. Sunstein reported he is working on the renewal permit for the wastewater treatment plant.  There is additional testing required for the permit renewal and Microbac Laboratories is performing he required testing.  The current permit expires July 31, 2010.

Mr. Sunstein stated the district had 12% water loss for the month of November 2009.

The district is diligently flushing the waterlines as required by the State of Tennessee.

4th Quarter THM and Acid testing has been completed and are good.

Sanitary Survey was completed by Mr. Greg Simcox he verbally stated that the district will receive a 100% grade on the survey.  Mr. McGill stated to receive a grade that high is very rare.  Mr. Vick stated congratulations; Mr. Sunstein stated this is all district staff working well together.  Mr. Simcox informed Mr. Sunstein the tank inspection to be done every 5 years.  Mr. McGill stated Mr. Sunstein should get three bids for the tank inspection.  Mr. Vick stated this item will be tabled at this time.

Mr. Vick questioned does our insurance cover damage to our waterline if the fire department overuses a hydrant and causes a vacuum? If somebody else that has access to our line for a valid reason damages our line for over using the hydrant does our insurance pay for repair of that line? The district wants the answer to this question in writing.  District staff will ask the district’s insurance company this questions specifically as entered into the minutes.  After this question is answered by the district’s insurance company the district will take the necessary precautions to protect the district.  Mr. Vick stated the district has a good relationship with the Pittman Center Volunteer Fire Department, and their fire chief.

Motion to approve the Schedule of Rates and Charges revision #13 Dated December 4, 2009.  New rates to become effective January 1, 2010, made by Mr. Ball, seconded by Mr. Conner and passed.  (Copy of policy attached).

Mr. Sunstein stated the 2010 budget includes the hiring of an employee, what is the desire of the Board of Commissioners regarding the additional employee?  Mr. Sunstein would recommend the district hire a Grade III or Grade IV wastewater operator and cross train them in water.  Mr. Ball stated the district should hire someone who isn’t trained and send them to school to educate them in wastewater.  Mr. Vick recommended Mr. Sunstein put a job description together with specifics of the job, he prefers the person be knowledgeable in wastewater.  Mr. McGill stated this would give the district a couple of months to monitor the revenue after the new rates are in effect.  Mr. McGill stated a Grade III or Grade IV operator would be expensive.  Mr. Sunstein to put together a job description and bring to the January 2010 Board of Commissioners meeting.

Mr. Johnny Ogle was bitten by a dog at 4414 East Scenic, Gatlinburg, TN 37738 while reading meters.  Mr. Sunstein stated this is an ongoing problem on route 1.  The meter on their property is located inside the fence which is on the road right of way.  Mr. Vick stated the district staff should knock on the door or call the homeowner to ask them to put their dog inside.  The homeowners contacted the district office the next day to check on the bite.

Mr. Sunstein stated the district needs to replace the 1992 Dodge truck with a new truck.  After a discussion regarding the specifications of a truck Mr. Vick stated the district needs to purchase a full size ¾ ton 4 wheel drive pickup truck.  Mr. Sunstein to get the state bid contract list and bring to the January 2010 Board of Commissioners meeting.

December 11, 2009 employee Christmas party will be at the Bear Creek Grill at 11:30 a.m.

Mr. Vick the Board of Commissioners approval of the Schedule of Rates and Charges is pursuant to the Utility Management Review Boards approval and consistent with the district financial recovery plan.

Mr. Conner had no official report.

Mr. Ball had no official report.

Under new business, Mr. Ball made a motion to submit names to Larry Waters, County Mayor.  Mr. Conner term to expire December 31,2009.  Names to be submitted (1) G. H. Conner, 575 Ball Mountain Way, Gatlinburg, TN 37738 (2) Donald Rohde, 938 Vixen Run, Gatlinburg, TN 37738 (3) Jeff Altigilbers, Deer Path Lane, Gatlinburg, TN 37738, seconded by Mr. Vick and passed.  The new term will be from January 1,2010 to December 31,2013.

Motion to adjourn meeting by Mr. Ball, seconded by Mr. Conner and passed at 12:15 a.m.

Respectfully Submitted,

Janice Carver

Office Manager