240313 Joint Meeting with Seagrove-Ulah Metropolitan Water District
Special Meeting – Joint Meeting with Seagrove-Ulah Metropolitan Water District
March 13, 2024
The Randolph County Board of Commissioners met in special session at 5:30 p.m. at the
Cooperative Extension Office, 1003 N. Fayetteville St., Asheboro, NC. Chairman Darrell Frye,
Vice-Chairman David Allen, Commissioner Kenny Kidd, Commissioner Maxton McDowell, and
Commissioner Hope Haywood were present. Also present were Interim County Manager/Finance
Officer Will Massie, Assistant County Manager William Johnson, County Attorney Ben Morgan,
Deputy Clerk to the Board Jenny Parks, and Clerk to the Board Dana Crisco. Present with the
Seagrove-Ulah Metropolitan Water District were Chairman Randy Tedder, Mayor of Seagrove
David Fernandez, and Scott Cole. Donald Strider was absent. Also present were District board
staff Mike Walker and Cathy McAllister.
Chairman Frye opened the meeting for the County.
Assistant County Manager of Operations William Johnson gave an overview and costs of the
replacements and additions to the Seagrove-Ulah Metropolitan Water District (SUMWD) system.
Chairman Frye stated that the Commissioners are focused on having the SUMWD succeed.
There is funding available from ARPA.
Chairman of the SUMWD Randy Tedder asked what the timeline for completion of the current
plans would be. Mr. Johnson said that February to August was his understanding.
Commissioner Haywood had checked with the Economic Development Corporation about any
business inquiries in the area that could use their system. Mayor Fernandez said that there was
another possibility of a business to occupy the other portion of property at the future Love’s Truck
Stop.
Mr. Johnson explained that the County was not in the water and sewer business. The plan was
for the municipalities to maintain their portions of the regional water system. In order for the
SUMWD to continue operations in the future, the calculated operating ration should address
depreciation and be above 1.2. The current ratio is at .98.
Mr. Cole asked about the operating ratio calculation. Mr. Johnson stated that the basic
calculation was revenues/expenses with depreciation. Chairman Frye reminded them that funding
depreciation allows for replacement and repair. Infrastructure Coordinator Chris Hildreth said the
calculation should also include any debt service.
Chairman Frye reiterated that the Board and the County don’t want to manage SUMWD. They
want proper management and ongoing maintenance to continue to operate without funding from
the County.
Chairman Tedder said that their district has a lack of large businesses. Chairman Frye pointed
out that the County is helping with that now by building new infrastructure. Commissioner
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Haywood added that SUMWD needed to be “business friendly” and add new customers. The
County wants to see an increase in business.
Chairman Tedder commented on the large amount of money being spent on all of the
construction. Vice-Chairman Allen agreed and reminded everyone that the County is not only
using ARPA funds but also County funds. ARPA funding will probably never happen again. The
County wants the money spent wisely and know that the system will be maintained. Commissioner
McDowell used to audit their account. He said there is not enough revenue to maintain the
business. There is no savings for repairs and replacements.
The Commissioners all agreed that something needed to change for the SUMWD to continue
operating.
Members of the SUMWD spoke of the challenges and issues they face with maintaining the
system and adding new customers. Chairman Frye said the Commissioners have voiced their
concerns. A rate study must be done and new rates need to be developed.
Commissioner Haywood suggested that if more expertise in water and sewer was needed, the
Commissioners could appoint another member. Chairman Tedder responded that they would use
the resources given at this meeting. He also agreed to better communication between SUMWD
and the County.
Adjournment
At 6:29 p.m., on motion of Allen, seconded by Haywood, the Board voted 5-0 to adjourn.
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Darrell Frye, Chairman David Allen
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Kenny Kidd Maxton McDowell
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Hope Haywood Dana Crisco, Clerk to the Board
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