WORK SESSION

COMMISSIONERS OF PUBLIC WORKS

May 10, 2005

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

May 10, 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,

Michael G. Monaghan, Kenneth M. Barnett, Scott Banks,

Henry O. Watts, Jeff Meredith, Ken Whittle     

I.          Vice Chairman Hancock called the meeting to order.

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

III.               Discussion Items:

A.     Mr. Reeves discussed June meeting dates with the Commissioners. The regular meeting was changed to Monday, June 20, at 4:00 p.m. He reminded the Commissioners of a pre-bid meeting at the water treatment plant on May 31, at 10:00 a.m; a bid opening on June 7 at 2:00 p.m. with Commissioner Hancock opening bids; and a work session on June 14 at 3:00 p.m. Commissioner Hancock noted that he would be having knee surgery and would let Mr. Reeves know about June 7.

B.     Mr. Reeves informed the Commissioners that he was waiting on prices to change the outside locks at the main office and the COC. He noted that we have been in this building for over five years.   

C.     Mr. Reeves informed the Commissioners of a letter from Mr. Steve Brown stating that the City declined acceptance of the transfer of a deed to the old electric operating center because it did not provide enough benefit to them.

D.     Mr. Reeves reminded the Commissioners of a decision at the last meeting to postpone consideration of bids on a boring machine to allow time for a second on-site machine demonstration. At that time, only one demonstration had taken place and a second demonstration was recommended. That demonstration has since taken place and Mr. Meredith is recommending the low bid of $129,701.53 from Ditch Witch of the Carolinas. A motion was made by Commissioner Watts, seconded by Commissioner Hancock, and unanimously approved to accept the low bid from Ditch Witch of the Carolinas. 

E.      Mr. Reeves reminded the Commissioners of discussion at the last meeting regarding a request from the engineer to postpone action on two of the bond projects at the water treatment plant before making a recommendation. The first recommendation is for instrumentation integrators at a total bid of $359,150 from Feed Forward, Inc. This amount includes the original base bid of $328,500 along with several addendums recommended by the vendor. Staff joins in recommending that these items be included in the integrators package to improve the installation of that piece of equipment. Mr. Reeves stated that staff also recommends awarding the bid to Feed Forward, Inc.  A motion was made by Commissioner Watts to accept the bid of $359,150 from Feed Forward, seconded by Commissioner Hancock, and unanimously approved.

F.      Mr. Reeves informed the Commissioners of the remaining bond project with the water treatment plant upgrade for on-site hypochlorite generation equipment. He added that a letter was included in their packet from Mr. Ken Parnell recommending the low bidder, Chlortec for $494,000. A motion was made by Commissioner Watts, seconded by Commissioner Hancock, and unanimously approved to accept the low bid from Chlortec.  

G.     Mr. Reeves informed the Commissioners of a change to outside water rates discovered since the public hearing. He stated that an incorrect amount was shown for the outside city residents. It does not change the 80% surcharge or the 19.6% rate increase, all of this is the same. He further explained that back in 1998 there were two different rate structures for inside the city and outside city customers. One rate table included a sewer charge; one inside city rate had water and sewer, the other inside city rate had water only. All of the other rate codes were the same way. Outside city had outside water only and outside water and sewer if they were sewer consumers. In 2000 when the entire system was turned over to Metro, the sewer charge came off. We essentially took all of our rate codes and narrowed them down to only one rate code for residential inside and one for residential outside, water only. What staff had done was combine the previous two rate codes rather than go back and redo rate codes for all customers. That was done for all commercial inside and outside as well as industrial. We charged the outside residential based on that thought process. When the consultant sent our rate code, they actually sent two outside city rate codes, one still with water and sewer and one with water only. We never charged the one that had the sewer charge; we only billed the water only, which is what we were supposed to do. When the consultant received the rate codes to update them and perform the rate study, they used the outside city residential code that included sewer, and those are the numbers that were shown at the public hearing. Mr. Reeves added that the percentages do not change; the revenue projection does change because they used higher numbers. Now we are faced with lower revenue projections by $272,000 annually. Unless we pick up more consumers, we are not gaining much. Commissioner Hancock stated concern with the revenue and how we are never going to get to the place where water is making any money. He added that this cannot be completely rate based now and Mr. Reeves responded that it was rate based on the projections. The projections were based on the rates that Sheree Brown was developing and she developed those off the rate codes she had. One of those was incorrect and all that changes is the projection. Mr. Reeves stated that it will result in a shortfall but there would have been a shortfall this year anyway because it was an annual projection and we are only putting the rates into effect for six months. Mr. Reeves stated that we are either going to have to live with it and be diligent in cutting costs a little bit more than anticipated or add consumers and consumption. Mr. Banks will be asked to try and cut his costs in the water department and to look at some of the projects and purchases that are planned to see if something can be postponed to offset the differential. Mr. Reeves stated this is the only recourse at this time unless we go back and change the rate and nobody wants to do that. He added this is based on budget projection and historically each department spends 90% – 95% of their budget projections. If they spend 95% that is a reduction of $400,000 and that offsets the $272,000. If it works out that way, this will be more than covered. Mr. Barnett added that if sales pick up or stay where we projected and we spend 95% of budget projections, we will still make it up. Mr. Reeves noted that we will not cover the six months that have already passed. The Commissioners then discussed the anticipation of another industry coming into National Textiles and the amount of water usage lost there. Mr. Reeves stated that the rate codes have been corrected now.

H.     Mr. Reeves stated that Mr. Barnett has refigured the revenue portion of the budgets since the rates were approved and those will be ready for formal adoption at the May 23 regular meeting.

I.        Mr. Reeves stated that the City has asked for another water meter at the intersection of South Main and Columbia to feed an irrigation system that they are putting in for landscaping. A motion was made by Commissioner Watts, seconded by Commissioner Hancock, and unanimously approved to install the meter for the City.

IV.              Executive Session:

            A motion was made by Commissioner Watts, seconded by Commissioner Hancock, and unanimously approved to go into Executive Session to discuss a personnel matter.

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