Handy Sanitary District
Regular Meeting of the Board
January 10, 2013
Minutes
Board Attendees: Chairperson Karen Nash, Secretary Arlin Sechrist, Norman Hunt,
Darcus Bisher, and Tim Loflin
Staff Attendees: Attorneys Charlie Harp and Leann Martin, General Manager Gray
Walls, Clerk to the Board Renae Stafford, Office/Finance Manager Lisa Hedrick
Guest Attendees: see attached list
Karen Nash called the meeting to order, and a moment of silence was observed.
December 3, 2012 Minutes: Following the Board’s review, Arlin Sechrist made a motion to approve the Open Session Minutes as written, seconded by Darcus Bisher, passed by the Board 5-0.
Public Comment: Kathy Kiser explained she had recently purchased property at Badin
Lake and inquired whether it is mandatory to connect to the sewer system if she is a District water customer. Karen Nash explained that the CWMTF grant currently requires mandatory connection.
Adoption of Agenda: Karen Nash requested that Personnel be added to Closed Session, and Tim Loflin requested that Contract Negotiations with the Town of Denton be added to
Closed Session. Norman Hunt made a motion to approve the agenda with the discussed additions, seconded by Tim Loflin, passed by the Board 5-0.
Badin Lake Sewer Project - Draft Letter for Phase 2 Residents: The Board reviewed the draft letter and Gray Walls recommended adding language which will remind property owners once the electrical work is complete, to leave the electricity turned on if the breaker is located inside the residence. Arlin Sechrist made a motion to approve the letter with the discussed addition. Darcus Bisher seconded, passed by the Board 5-0.
Proposed Copper Service Water Lines: Gray Walls explained that the District has a lot of service line leaks, and that rather than polyethylene lines, most other water systems have copper service lines which are less likely to leak. He recommended that the District start slowly changing over to copper by purchasing 6,000 feet per year of copper line, which is the amount of service line that the District generally replaces. Gray Walls explained that he would watch for the copper market to trend downward and come back to the Board before purchasing.
Proposed Newsletter: The Board reviewed and Norman Hunt discussed that the article about the Board authorizing an exemption from the mandatory connection ordinance indicates that he and former Board member Keith Loflin were against the exemption recipient receiving a septic system. Norman Hunt explained that he had understood at the November 8, 2012 meeting that whether or not the septic tank would be installed was not what was being voted on, and that
1

the motion was regarding the language that would be included in the exemption. The Board reviewed Minutes of Board meetings at which the exemption request was considered and Renae
Stafford explained that the article in the Newsletter was based on the Minutes. Following discussion, Norman Hunt requested that the November Minutes be revised. Renae Stafford explained that the Board approved the November Minutes as written at the December meeting, and therefore a revision cannot be made. She suggested that a clarifying statement be made at this meeting, which will then be reflected in the Minutes. Arlin Sechrist discussed that the attorney’s advice to revise the document back to the originally proposed exemption made it necessary for a new motion to be considered at the November meeting. He further discussed that the septic system could not have been installed if the Board had not voted to approve the exemption. Norman Hunt clarified for the record that he did not intend for his vote to indicate that he was not in favor of the spina bifida patient receiving a septic system and that he understood from conversing with Keith Loflin that he felt the same. Charlie Harp recommended that Keith Loflin contact the office to clarify his understanding of the motion made at the
November 8, 2012 meeting and the intentions regarding his vote. Arlin Sechrist made a motion to approve the Newsletter, including the discussed addition which reflects the clarifications be made to the article prior to the newsletter being mailed out. Darcus Bisher seconded the motion, passed by the Board 5-0.
Revised Personnel Policy/Job Descriptions: Renae Stafford requested that the Board review the revised Personnel Policy draft, as well as the accompanying memo which outlines the proposed changes and contact the office with any questions or additional changes. The Board agreed to table the discussion until the February meeting.
Reports/Updates:
Badin Lake Sewer Project: Gray Walls explained that repairs are complete in Shoreline,
Lake Forest, and Lake Shore. He further explained that pumps are being tested in Shoreline and
Lake Forest and the notification letter for property owners in Lake Shore will be sent out the following week. He discussed that the next developments where repairs will be made are projected to be Rolling View and Pinehaven and confirmed that replacement parts arrived for another 150 assemblies and have been built. Gray Walls provided additional details of the upcoming repairs and connections.
Astran Drive Sewer Project: Gray Walls discussed that he had recently met with representatives from Davidson County and the NC Division of Community Assistance,
Community Development Block Grant. He explained that even with only 4 of the 12 residents on
Astran Drive having expressed interest in connecting to the sewer system, CDBG has confirmed they will proceed with the project if the county desires. Gray Walls further explained that with the proposed sewer line planned to be 1,000 feet from the Town of Denton’s sewer line, it makes sense for Denton to own and operate the line. He discussed if Handy were to own and maintain the line, the sewer rate to the residents would have to be marked up from the rate Denton provided for treatment. He confirmed that the Denton Mayor has previously expressed interest in the proposed line, and that the county manager is going to try to obtain an agreement with
Denton before the county makes the decision of whether or not to move forward with the project.
Gray Walls also discussed that it has not yet been determined whether the District would be able
2

to get back the $12,000.00 contributed to the county for the local match, and Tim Loflin explained that the project was initiated because a field manager previously employed with the
District had reported sewage in a water meter box and that at that time, Denton had not expressed interest in providing sewer to the residents. Following more discussion of the project background details, Gray Walls explained that the county manager plans to follow-up with the District after meeting with Denton and that the District will follow-up with CDBG regarding the possibility of getting back the local match.
Town of Denton Update: Gray Walls provided the Board with an invitation from
Denton for a meeting was scheduled for January 14, 2013 between Gray Walls and Brad Bucy
(Denton’s HUA representative) at the water plant. Gray Walls explained that the purpose of the meeting is to discuss the technical details involved in the proposed upgrade, after which he would provide the Board with the facts necessary to determine what, if any, costs they should participate in. Discussion followed regarding whether any of the Board members would attend the meeting.
Financial: The Board reviewed the monthly report and Lisa Hedrick explained that the
District should be at 50% at this point in the fiscal year. She discussed that revenues are at 53%, while water purchased is at 47%. She explained that water purchased was paid at the old rate since the District has requested information regarding Denton’s proposed new rate, and that had the new rate been paid, water purchased would be at 52%. Lisa Hedrick also discussed that overall the water department expenses are at 37% while the sewer department expenses are at
42% and that the administration department expenses are at 46%.
Water Loss: Gray Walls explained that a data entry mistake had been made when the original water loss spreadsheet for November was completed and the Board reviewed a corrected
November water loss report, which confirmed that the monthly loss was actually 38% instead of the 48% reported at the December meeting. Gray Walls also discussed that the loss for December was 35%.
Arlin Sechrist made a motion to move to Closed Session to discuss contract litigation for the Badin Lake Sewer Project. Motion was seconded by Tim Loflin, passed by the Board 5-0. No action taken. Arlin Sechrist made a motion to move back to open session, seconded by Tim
Loflin, passed by the Board 5-0.
Arlin Sechrist made a motion to approve the Closed Session Minutes from the December
3, 2012 meeting, seconded by Darcus Bisher, passed by the Board 5-0.
Arlin Sechrist made a motion to adjourn, seconded by Tim Loflin, passed by the Board 5-
0. Adjourned.
3