December 2013

Minutes

Webb Creek Utility District

Friday, December 6, 2013

 

 Commissioners Present

Steven McCarter, President

Robert Vick, Vice President

Delmar Ball, Secretary

 

In Attendance

Wayne Ball, District Manager (Staff)

Gary McGill, Engineer

Donald Wallace, Utility Customer

Richard Hill, Mitchell and Hill

 

Meeting Minutes

 

Item 1 – Determination of a Quorum and Call to Order

With a quorum present, Steven McCarter called the December 6. 2013, WCUD Board of Commissioners meeting, held at the district office located at 3625 Lindsey Mill Rd, Gatlinburg, TN 37738, to order at 10:00 a.m.

 

Item 2 – Approval of Agenda

Delmar Ball made a motion to approve the agenda. The motion was seconded by Robert Vick, with all voting in favor of the motion.

 

Item 3 – Approval of November 1, 2013 Meeting Minutes

Delmar Ball made a motion to approve the minutes from last month’s meeting held on November 1, 2013. The motion was seconded by Robert Vick with all voting in favor of the motion.

 

Item 4 – District Manager’s Report

Wayne Ball reported a small leak was found on Thanksgiving weekend and repaired. Flushing of the lines for the second of the year was completed. The water loss for the month was 13 percent. AWWA forms will have to be used starting this year.

Item 5 – Office Manager’s Report

Karen Huffaker not present due to utility administrator training in Nashville.

 

Item 6 – Jim Gass

Not Present

 

Item 7 – Gary McGill

Mr. McGill reported on the progress of analyzing Bent Creek’s water usage. Bart Kreps, the utility rate consultant, is calculating a rate based on reducing the number of Bent Creek units. There was discussion whether the total amount Bent Creek will pay for their water and the rate structure may change. They may no longer be equivalent to a residential customer with the use of approximately three thousand gallons per unit per month but may need a rate structure for units using approximately six to seven thousand gallons per unit per month. Mr. McGill suggested that Mr. Krepps attend the next UMRB meeting in Nashville to be available for questions from the UMRB members.

 

Item 8 – John Steven McCarter, President Report

Mr. McCarter stated his questions were concerning the health insurance and audit information to be presented by Mr. Vick.

 

Item 9 – Robert Vick, Vice-President Report

Mr. Vick updated the Board with the Bent Creek and UMRB situation and, pending Mr. Kreps updated rate study, we need to look at redefining the definition of “equivalent unit” in our schedule of rates policy. Also, that one of Bent Creek’s complaints was that the appeals court (during the ORA litigation) threw out the rate study, saying our rate study was not valid. An updated study by Mr. Kreps will be beneficial in moving forward so resolve the Bent Creek rate complaint.

 

Mr. Vick reported on his meeting with Mr. Hill from the independent auditing company of Mitchell and Hill for considering a replacement for Pugh and Co. as the district’s independent auditors. The proposal from Mitchell and Hill was discussed. Mr. McCarter and Mr. Ball stated their concerns with Pugh’s rates. Mr. Hill introduced himself and informed the Board of their company qualifications. He stated they have been in business since 1980 doing independent auditing for 50 to 60 organizations that go through the state comptroller’s office, with every audit reported being accepted without problems. He stated how their firm is focused on their clients and performing their services in a timely manner. Delmar Ball made the motion to hire Mitchell and Hill as our independent auditors for 2013. The motion was seconded by Robert Vick, with all voting in favor of the motion. Mr. Hill suggested we write a letter to Pugh requesting they finish our 2012 audit so that we can begin our 2013 audit. This letter also will need to inform Pugh that we are changing independent auditors.

 

Mr. Vick reported on health insurance companies and quotes for 2014. After some discussion, the commissioners authorized Mr. Vick to check into two different Blue Cross and Blue Shield plans both with HRA up to $4,000 per family which saves the district on higher premiums based on an historical 70% utilization rate. Premiums for both plans are much lower than 2013 premiums and less than budgeted amounts for 2014. Mr. Vick will consult with Zack Zettergren to see which he recommends is the best option for the district. Current health insurance plans expire December 31, 2013.

 

 

Mr. Vick made commissioners aware that the 2014 budget must be approved and sent to Joyce Wellborn at the comptroller’s office at no later than this meeting. Mr. Vick made motion to approve the 2014 budget. The motion was seconded by Delmar Ball, with all voting in favor of the motion. Wayne will have Karen do this when she returns on Monday.

 

Mr. Vick also stated the need to provide three names for commissioner reappointment at this meeting because Mr. McCarter’s term will expire at end of year. First on list would be Steve McCarter, followed by Donald Wallace and Mark Clark. Motion to send a letter to the county mayor with these three names in this order was made by Mr. Vick, seconded by Delmar Ball, with all voting in favor of the motion.

 

Item 10 – Delmar Ball, Secretary

No report

 

Item 11 – Unfinished Business

There was no unfinished business

 

Item 12– New Business

There was no new business

 

Item 13 – Adjourn

Delmar Ball made motion to adjourn. Mr. Vick seconded the motion, with all voting in favor of the motion