Handy Sanitary District
Regular Meeting of the Board
June 14, 2012
Minutes
Board Attendees: Chairman Dan Caudle, Secretary Keith Loflin, Karen Nash, Norman Hunt, and Arlin Sechrist
Staff Attendees: Attorney Charlie Harp, General Manager Gray Walls, Clerk to the Board Renae Stafford, Office/Finance Manager Lisa Hedrick
Guest Attendees: see attached list
Dan Caudle called the meeting to order, and requested a moment of silence.
May 10, 2012 Minutes: The Board reviewed the revised Minutes and Karen Nashmade a motion to approve the Minutes as written, seconded by Arlin Sechrist, passed by the Board 5-0.Keith Loflin expressed that the Denton Farmpark was disappointed that theBoard elected not to purchase an advertisement in the Lion’s Club program for the Southeast Old Thresher’s Reunion. He explained that the Farmpark brings in thousands of people and that the water bills paid by the Farmpark would more than cover the cost of the advertisement.
Public Comment: No one was registered to address the Board.
Adoption of Agenda: The Board reviewed the agenda and Gray Walls recommended the addition of an update letter for the Badin Lake Sewer Project. Arlin Sechrist made a motion to approve the amended agenda,seconded byKaren Nash, passed by the Board 5-0.
2012-2013 Proposed Budget:Lisa Hedrick discussed that no changes have been made since the Board reviewed the proposed budget in the May packet, and that the budget does not include a rate increaseat the current time. She explained that the total budget amount is $2,101,970.00 and Arlin Sechrist discussed this is less than a 1% increase from the previous year. Dan Caudle inquired whether the BCBS health insurance renewal is a decrease of 5.5% as listed in the memo and Lisa Hedrick confirmed. Dan Caudle opened the public hearing for the 2012-2013 Proposed Budget and there was no public comment. The public hearing was closed and Arlin Sechrist made a motion to adopt the 2012-2013 Budget Ordinance as presented. Karen Nash seconded, passed by the Board 5-0.
Backflow/Cross Connection Ordinance: Gray Walls discussed that the state requires the adoption of this ordinance which is intended to prevent potential or actual cross connections within the District’s distribution system. He explained that the proposed ordinance was modeled after Orange County Water & Sewer Authority’s Backflow/Cross Connection Ordinance and that the District has the required Operator in Responsible Charge (ORC). Following review, Karen Nash made a motion to approve the Backflow/Cross Connection Ordinance as presented. Dan Caudle seconded, passed by the Board 5-0.
Surplus Property/Authorizing Disposal Resolution: Gray Walls discussed that the District had previously approved a resolution for the surplus and disposal of three items and that the recently replaced 1982 dump truck has been added to a revised resolution. Arlin Sechrist made a motion to approve the Surplus Property/Authorizing Disposal Resolution as presented, seconded by Norman Hunt, passed by the Board 5-0.
Loflin Fabrication/Astran Drive Project: Lisa Hedrick explained that pre-audit discussions involved the status of capital projects including the Loflin Fabrication/Astran Drive Project. She explained that since the Loflin Fabrication portion is not moving forward and Astran Drive portion is moving forward through a partnership with Davidson County, the Board should adopt the presented budget ordinance which will bring the expense/revenue numbers to actual and then vote to officially close-out the Loflin Fabrication/Astran Drive Project. Lisa Hedrick discussed that $541.35 has been spent on Incidentals, Permits, & Construction, $18,730.00 has been spent on engineering fees for Loflin Fabrication, and $12,835.00 has been spent on engineering fees for Astran Drive, while on the revenues side, a grant provided $9,648.00 and the District contributed the remaining $22,458.35. Arlin Sechrist made a motion to approve the Loflin Fabrication/Astran Drive Project Budget Amendment Ordinance as presented, as well as to officially close out this capital project. Karen Nash seconded, passed by the Board 5-0.
Pinehaven Homeowners Association Request:Arlin Sechrist explained that the annual Pinehaven Homeowner’s Assoc. meeting is coming up and that the President has requested a brief update on the Badin Lake Sewer Project. The Board reviewed the draft summary update and agreed it would be fine to provide to Pinehaven, as well as to leave copies of the summary on the counter in the lobby for anyone else who may be interested.
Reports/Updates:
Financials: Lisa Hedrick explained that the District should be at 92% at this point in the fiscal year and that revenues are currently almost at 91%. She discussed that water purchased are at 84%, and that overall the water department expenses, are at 81%,Lisa Hedrick also discussed that the sewer department expenses were at 78% and that the administration department expenses are at 81%. She confirmed that as budgeted, the District had contributed $13,000.00 tothe tank maintenance CD. The Board reviewed the report.
Water Loss: Dan Caudle discussed that the loss percentage is at 33% for the month.
Astran Drive Sewer Project: Gray Walls explained that after the project was let out for bids by Davidson County, a contractor had called to inquire why Withers and Ravenel had designed the residential grinder pump/tanks in the right-of-way. Gray Walls further explained that after talking with Mike Koser (Withers & Ravenel) the bidding was postponed and a meeting with Davidson Countywas held. He explained that it was agreed that this portion of the plans would be redesigned and that CG&L will not have to reapprove. He further discussed that the District and Davidson County plan to work together to acquire easements and that Scotty Morris (Denton mayor) has provided sewer treatment rate information. Gray Walls explained that the next step for the District is to notifyresidents of the proposed rates and confirm their interest in sewer service. He discussed that if the interest is still there, the District will work with Ray Maneri to determine whether participation requirements would be met for the grant, and reminded the Board that once the system is operational the District can explore the possibility of Denton taking over operations.
Badin Lake Sewer Project Misc: Gray Walls explained that there are still flow problems at P/S #1 & 2, due to air trapped in the lines and that Monroe Roadways is scheduled to service some of the air releases. He also discussed that meetings between the District’s legal counsel and the contractors have begun, and Dan Caudle explained that the District appears to be in good shape legally and that most issues are coming down to documentation. Dan Caudle also explained that a controversy during construction between Terry’s Plumbing and Wateree Construction resulted in the District having an unknown number of connections (between the tank/pump installation and the tap). Gray Walls also discussed that grading was not done prior to installing the residential grinder systems, (which is how tank depth should have been determined), and that 45,000 feet of SIDR pipe (not in the specifications) was installed and may have to be replaced because there are not fittings for it.
Draft Personnel Policy:Gray Walls explained that the purpose in replacing the old policy is to have a simple, easy-to-follow manual that streamlines employment procedures. He confirmed that the policy has been included for review this month and encouraged the Board to provide feedback. Gray Walls also discussed that job descriptions are currently being updated as well.
General Statutes:Keith Loflin explained that following a recent closed session he had requested that Renae Stafford research the NC laws regarding the proper procedures for closed sessions and the Board reviewed the provided information. Renae Stafford explained that brief notes on closed session have been kept since 2008, and prior to then, no record of closed session. She further explained that in order for the District to comply with General Statutes,all future closed sessions will be recorded and official Minutes typed and presented each month for the Board’s approval, along with the regular session Minutes.
Consumer Confidence Report:Gray Walls discussed that this annual water report would be mailed out to District customers by the end of the following week.
Badin Lake Sewer Project/Easements: The Board reviewed a spreadsheet which entails the number of recordable easements per development.
Karen Nash made a motion to move to Closed Session to discuss contract issues pertaining to the Badin Lake Sewer Project. Motion was seconded by Arlin Sechrist, passed by the Board 5-0. No action taken.
Arlin Sechrist made a motion to move back to open session, seconded by Karen Nash, passed by the Board 5-0. Dan Caudle made a motion to authorize the General Manager to utilize the legal services of Leann Martin in an expanded role with regard to any and all aspects of the Badin Lake Sewer Project, as deemed necessary by him. Karen Nash seconded, passed by the Board 5-0.
Karen Nash made a motion to adjourn, seconded by Arlin Sechrist, passed by the Board 5-0. Adjourned.
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