DOBSON — The Surry County Board of Commissioners approved a water contract with Mount Airy at its meeting Monday night.

The contract calls for the addition of selected areas in the county to the city water service. The agreement does not mention a specific amount to be sold or purchased leaving those parameters to be set forth on a project-by-project basis. The cost for the amount, however, shall be at a rate of 90 percent or $2.84 per 1,000 gallons.

This agreement comes after several months of negotiation between city and county officials as to the exact terms. It is similar to those contracts the county has with the towns of Dobson and Elkin.

“This is the agreement our board discussed during our retreat and agreed to send as a proposal to the county,” said Mount Airy Mayor Jack Loftis Monday night. “Don Brookshire (city manager) and Jack Gardin (water and sewer projects manager) worked out the agreement, and after a couple of tweaks at the City-County Liaison meeting, the county was anxious to approve it.”

A concern brought up by board members concerns the annexation of new land by the city after this point. If the city annexes new land within these designated areas, it will also purchase the existing water lines based on a depreciated value. A question was brought up whether to base this on a 40-year straight line depreciation rate or whether to involve a third party to negotiate rates.

“I’d go straight line,” said Dennis Thompson, county manager.

“The water committee would recommend that also. If it were me, I think I’d leave a couple options open,” said Commissioner Jim Harrell on behalf of the water committee.

The contract shall extend for 40 years and has the option to be renewed at that time. During the contract period, the city retains the right to impose water restrictions on county residents who fall under its jurisdiction as well as to raise rates in proportion with those of city residents.

“This is monumental,” said Craig Hunter, chairman. “We want to keep moving with the sewer agreement.”

The contract is not on the agenda for the Thursday night City Board of Commissioners meeting, but it will likely be mentioned that the county has approved the agreement, Loftis said.

In other business, Bill Soper of Elkin addressed the board during the open forum portion of the meeting to ask for its support in helping him open offices for two companies in Surry County. One company is located in California and the other in Michigan. He has contracted with these companies to help in the development of a new technology. He hopes to go in front of the Economic Development Board soon to form a business plan.

With the companies, Soper would control everything from Virginia to South Carolina and Greensboro to Tennessee. He plans to hire exclusively from Surry County as much as possible, beginning with construction and moving through the expansion of the businesses.

“I would need a building with a loading dock and possibly railroad access,” he told the board, noting that he believed there was room for expansion with both companies.

Hunter welcomed Soper and pledged to do anything to help him expedite the process and set up the necessary meetings.

In other items on the agenda:

n Amending a motion from the previous meeting, the commissioners unanimously agreed to not sell, lease nor enter into negotiations concerning the Surry County landfill while the current board remains intact. This follows concerns by the board referencing a petition by Waste Industries seeking support from citizens in the county for a lease agreement.

n Wayne Sullivan of Municipal Engineering gave an update on the current landfill. Phase two, which consists of the recent land addition, should be completed in the next month and should have the appropriate operating permits by May. The permitting for phase two will cost about $15,000. Phase one, which consists of the current landfill, was scheduled to have its permit renewed in January, which would cost about $9,000, but was granted a six-month grace period so both phases could be granted permits at the same time. Sullivan noted that even with the recent weather issues, there has been no change in the contract price.

“I do want us to stay on the cutting edge, I don’t want us to settle,” said Hunter. “I think we need to stay 25 years ahead.”

n The board approved a resolution to send to the N.C. Department of Transportation in support of renaming the stretch of N.C. 103 from the Mount Airy city limits to the Virginia state line as Donna Fargo Highway.

n The board received an update on the expansion of Hugh Chatham Memorial Hospital for the sum of $50 million. The hospital has $40 million of that, needing only the last $10 million. The expansion is being used to modernize the hospital, which employs 900 people, most of whom come from the county. The expansion will include a new emergency department and additional 60 rooms and upgrades to the cardiology and intensive care units.

n The board agreed to table an expansion of the county’s contract with Construction Control Corporation until the fall. The current contract runs through December 2009 and an expansion would go until the end of the fiscal year. The decision to table the contract expansion is based solely on budget constraints and not displeasure with the corporation. The company has been assisting with money-saving efforts during county-wide builds such as school-related building projects.

n The board passed a motion to request that the planning department and the county enforcement officers investigate repeat nuisance and health hazards in residential areas around the county. If there are violators of county standards, they will be given notice to make the appropriate changes. If the changes are not met, officials have the authority to prosecute them according to the law and statutes set forth by the government. The board plans to compile a master list of those properties in question before putting the plan into action.

n Thompson and Don Mitchell will meet with Johnson Controls to discuss energy conservation and “green” energy work within the county.

n Bill Overby was approved as the Elkin representative to the Child Protection Team. Marian Spencer was reappointed to the Surry County Planning Board as the Elkin representative. Freddie Hiatt was nominated to replace Jamie Hall as the Mount Airy representative to the planning board. Freda Gibbons, Jim Miller and Jim Harrell Jr. were reappointed to the YVEDDI Board. Richard Wagner was reappointed to the Mount Airy/Surry County Airport Authority.

Contact Morgan Wall at mwall@mtairynews.com or 719-1929.