WORK SESSION

COMMISSIONERS OF PUBLIC WORKS

March 8, 2005

 A work session of the Board of Commissioners of Public Works was held on Tuesday,

March 8, 2005, at 2:15 p.m., in the Boardroom of the Greenwood Commissioners of Public Works at 121 Court Avenue.

In attendance:

Gene P. Hancock, Steve D. Reeves, Jr., Denise Giannetti-Walsh             Michael G. Monaghan, Kenneth M. Barnett, Scott Banks,                     Henry O. Watts                                                                                                                                 

I.          Chairman Monaghan called the meeting to order and Commissioner Hancock gave the invocation.

II.         Chairman Monaghan gave the statement of compliance with the notification provision of the Freedom of Information Act.

III.               Discussion Items:

A.      Mr. Reeves explained a requisition from Mr. Meredith for NTU’s, which are network terminal units that tie into the electrical SCADA system. The total cost of the requisition is $15,980 and these are needed to upgrade the locations where the regulator controllers in the substations won’t communicate with the SCADA network and allow communication back to the SCADA system. This is a sole source bid item from the provider, Advance Control Systems. Chairman Monaghan inquired how we know this is a fair price. Mr. Banks gave a pricing comparison for a similar item in the water department. Mr. Reeves responded that we could negotiate on the price. Chairman Monaghan suggested that in the future, prices should be compared with like things to be sure they are in line and negotiate a better price if it isn’t. A motion to approve the requisition was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved.

B.     Mr. Reeves informed the Commissioners of a requisition totaling $59,483.50 and added that it will be a bid item. The requisition is for 62 security lights and bases for Greenwood School District 50. Commissioner Monaghan asked how this worked and Mr. Reeves explained the rental light agreement procedure. The School District will pay the price difference in the rental fee since these are decorative fixtures that cost a little more than those normally put up.  

C.     Mr. Reeves informed the Commissioners of a Chamber of Commerce Legislative Breakfast on Friday, March 18 from 7:30 – 9:00 a.m., in the Lander Student Center.

D.     Mr. Reeves reminded the Commissioners of the State Chamber of Commerce Congressional Legislative event in Columbia on March 22 at 4:00 p.m. He stated they were registered and would plan to leave Greenwood around 2:00 p.m.

E.      Mr. Reeves informed the Commissioners of the SCAMPS Legislative event in Columbia at Seawell’s Restaurant to meet with our local delegation on April 13 at 5:00 p.m. He added they would plan to leave around 3:00 p.m. Mr. Reeves explained that this event is strictly municipal utilities meeting with the legislators.

F.      Mr. Reeves informed the commissioners of the SCAMPS annual meeting at Hilton Head on June 26 – 29. He asked that they let him know if they had a desire to attend. He added that spouses are invited and there is a fee of around $75 to cover meals and events.

G.     Mr. Reeves stated that for at least the 13 – 14 years since he came to CPW, we have charged Metro a fee of $0.20 per bill per month to bill their charges on our utility bills. Although there has been discussion in the past, there has not been an increase. A study was done a few years ago, and the consulting firm determined our actual cost was closer to $1.50; we determined at that time that it was closer to $1.05. Mr. Reeves stated that at that time, there was a feeling that we should not go up that much; he then asked the Board if they would agree to go up at least $0.10, or possibly even $0.20 per bill. Chairman Monaghan asked what was involved in doing their billing. Mr. Reeves responded that there is the administrative cost of setting the customer up, any changes, calls, monthly reports from the AS400, and programming costs. Ms. Giannetti-Walsh added it is basically the cost of maintaining all of those accounts as though they were our own, and being able to reconcile those accounts to the general ledger and to their records to their satisfaction, and the mailing costs. Chairman Monaghan stated we are mailing the bill anyway. Mr. Reeves pointed out that they are avoiding the cost by not having to pay for anything and should pay some fair share. If we were not doing this, they would have to do all of it themselves. The entire billing department is allocated to sending bills, the entire cashier department, and also some portion of meter readers. Mr. Reeves stated that there are two mindsets. Either we say that we would be doing it anyway, in which case, they shouldn’t pay a dime; or we can say what would their cost be if we weren’t doing it for them. Chairman Monaghan stated one of the biggest problems is that people are on sewer and we are not billing them, and he added that Metro thought it would help if when we put in a new water tap, we let them know. Mr. Reeves stated that we are doing that now and are also going back and checking all of the prior records for any water billing we have that has no sewer charges. We have found that 90% are sprinkler meters, but are finding a few cases. Commissioner Watts asked if we are billing anyone strictly for sewer and no water. Mr. Reeves responded that that are a few, such as Augusta Fields and Blyth Heights. Those people are billed a flat charge and we just maintain the accounts there. Chairman Monaghan stated he would not be opposed to going up a little bit this year and a little next year. Mr. Reeves stated that we could start “stair-stepping” and eventually get there, but if we don’t make a move we’ll never get there and will still be subsidizing the cost. Mr. Reeves stated he would check the terms of the agreement to see when the change can be made.

H.     Chairman Monaghan stated that Tom Burns had called him asking what our increase incentive would be to bring another 80 units into the city. Mr. Reeves stated that Mark Amick is working with putting the costs together to know what we can offer. Mr. Reeves stated he would contact Mr. Burns, and Mr. Barnett stated that he would talk with Mr. Amick.

I.        Chairman Monaghan asked if we should think about an extra incentive to developers for putting in gas units outside of the city. Mr. Reeves stated he would check with Piedmont and some others to see what type incentives they offer and try to have something for discussion at least at the next work session.

J.       Chairman Monaghan stated that he talked with a guy who is upset about annexing five acres at CVS into the city. Mr. Barnett stated that Mr. Amick has talked with the guy and he is upset because they want to annex but want sewer. Basically, unless the Board says to do it, that is not necessarily going to be done. Chairman Monaghan stated that this is not the same guy, this guy does not live in the city and his backyard faces the area to be annexed. This guy said that CPW promised this guy sewer. Chairman Monaghan stated that he told the guy that we probably said no one can tap into that line unless they come into the city. Mr. Reeves stated that if they are in the city, we have somewhat of an obligation to run the sewer lines.

K.    Chairman Monaghan asked if Metro had signed the paper accepting the sewer with our provision that no one can tap into it. Mr. Reeves stated that they haven’t signed and we haven’t deeded it to them yet. Chairman Monaghan stated that we need to get the deed signed. Mr. Reeves noted that Metro does not have to accept the deed after it’s signed over. Chairman Monaghan stated he wants this as a precedent. He added that we should present the documents and if they will not sign, let the Board know and they will bring it up at the Metro meeting.

L.      Chairman Monaghan asked for a date certain from Ken to start getting gas reports (the two daily reports he used to get). Mr. Barnett stated he was working on the spreadsheet this morning and should start e-mailing it on the 28th. He asked for a date certain from Denise on when he will get the price adjustment report. She stated that she would have it by the next Board meeting (April). Chairman Monaghan stated that was too long and added that he didn’t know where we were, whether we were under-recovering or over-recovering. Mr. Barnett clarified by stating this was the report he thought they were talking about earlier and he was trying to have the spreadsheets together for Denise by the March 28 Board meeting. He added that he would give them the first version and Denise would keep it going thereafter. Chairman Monaghan stated that last year the true-up was in mid year and here we are in March and we don’t know where we are since that time last year. Mr. Barnett stated he would also try to have the other two reports ready by the 28th. Commissioner Hancock stated that they have no idea what the price of gas is; Chairman Monaghan stated that he didn’t need all of the analysis because he is already sending reports that are an analysis. Mr. Barnett stated he would look at the old reports Denise sent over.

M.   Chairman Monaghan asked about tap fees for water outside the city and whether they are larger. Mr. Reeves stated that he would have to look it up to say exactly, but they are higher and they went up a couple of years ago. Mr. Reeves added that we are looking at water rates now and it is possible we will recommend implementing an impact fee.

N.    Chairman Monaghan stated the need for someone to formalize the talks with Dr. Stevenson before we spend any more money. He stated concern with whether the Parks Commission would ratify what Dr. Stevenson is saying. Before we go too far and spend $30,000 to do all of the studies, we should at least have some kind of letter saying they agree and accept. Mr. Reeves stated he would put something together for a response from Dr. Stevenson.

O.    Chairman Monaghan asked for clarification with whether Mr. Patrick was going ahead with contracting on the Solutia money after the February Board meeting. Mr. Reeves responded that the agreement was already signed. They did not agree to the extra $65,000; that portion will be negotiated later if necessary.

P.      Chairman Monaghan asked about the status of the Marketing Coordinator position. Mr. Reeves stated that we were waiting for formal budget approval. He added that he and Denise had discussed proceeding with interviews but she has not had a chance due to working on the audit. Chairman Monaghan stated that this position was important given that we are starting to see more interest in annexation.

Q.      Commissioner Hancock stated the need for the Commissioners to talk with legislators about broadband.

IV.              With no further business, the meeting was adjourned.