COMMISSIONERS OF PUBLIC WORKS

Minutes of July 13, 2006

A regular meeting of the Board of Commissioners of Public Works was held on Thursday, July 13, 2006, at 10:15 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.    Vicki Knott          Curtis Burnett

Michael G. Monaghan      Kenneth Barnett          Mark Amick        Richard Gentry

Henry O. Watts              Jeff Meredith               Melinda Bishop    Cary Bishop

Jeff Auman                     Ron Lemon                 Charlie Barineau   Stacia May

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

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

III.               New Business:

A.     Manager Reeves asked that the agenda order be changed to allow Mr. Charlie Barrineau with the City of Greenwood to give a report on grant activity. Mr. Barrineau provided an update and distributed spreadsheets showing recent grant activity totaling over $3 million including: Uptown Phase I on South Main Street; Uptown Phase II for Crosswalks; Uptown Phase III on Oregon Avenue; Uptown Phase IV on Maxwell Avenue; HUD EDI – Museum; Cambridge Avenue area water improvements; Magic Johnson Brewer Project; and EPA STAG Program for Mathews Mill. He noted that a couple of these projects have not yet been officially announced. The Maxwell Avenue project will be a very complex two-year project, even more so than Oregon Avenue. Maxwell Avenue will include improvements for every façade in hopes of beginning to fill up some of the empty storefronts. He stated that $500,000 was approved for the Cambridge Avenue area water improvement project. He stated that should the environmental work and design begin soon, construction could begin in three to five months. Mr. Barrineau apologized for the release from the Department of Commerce stating that the City of Greenwood put in $300,000 when we all know that CPW put in that money. He added that they did not get to see the release before the announcement came out. Mr. Barrineau noted that the Mathews project has not been approved yet by the House and the President. He stated that Van Cato in Senator Graham’s office stressed the importance of continuing the Washington trips because it has made a big impact. He added that the reason we are getting these funds is because we are all joining together to make it happen. Metro, the City, the Partnership, and CPW are all working hand-in-hand on these projects and will accomplish a lot more together than we would ever accomplish if done separately. On behalf of the Mayor and City Council, Mr. Barrineau thanked the Commissioners and CPW staff for their support and work on the Festival of Discovery and other services provided for the City. Commissioner Monaghan stated that the new Chamber of Commerce lady mentioned another Washington fly-in and he told her on two different occasions that Mr. Gentry should be included. Mr. Barrineau stated that he did not know at this point if he would be able to go. Mr. Gentry responded that he would call the Chamber. Commissioner Monaghan stated appreciation to Mr. Barrineau for coordinating these efforts. 

IV.              Old Business:

A.     Manager Reeves reminded the Commissioners of an item on the agenda at the last Board meeting and provided additional information requested at that time. He noted that after polling the Commissioners, approval had been given to proceed with the chlorine dioxide system. He explained that the biggest justification is in the savings on the chemical costs. We are currently spending on average around $512 per day for the chlorine dioxide system; the new system is proposed to cost around $333 per day which generates savings of about $65,000 per year. Using that number, this project would pay for itself in 3.67 years and well justifies the upfront expense. Mr. Reeves stated that this needed official approval to be included as a bond project. A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to include the chlorine dioxide system in the bond projects.

            The meeting returned to the order of the agenda with Item B. under New Business.

B.     Manager Reeves presented a request from GLEAMS to install a fiber connection to the old Brewer School where they will have office space. The cost of materials is $3,175 which GLEAMS is willing to pay. They are asking us to install the fiber at no cost to them. Mr. Reeves noted that our cost is around $1,700 and that the last time we did this for GLEAMS, it was done in the same way. He added that since there is no payback and no contract with GLEAMS, there is not a way to recoup this money. A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to provide labor to install a fiber connection to GLEAMS.

C.     Manager Reeves reminded the Commissioners that staff was asked to look at the possibility of doing cross connection testing in-house. He stated that currently there are several contractors in the area that are certified by the state to do this testing; they charge a fee to property owners who are required to have annual testing. Mr. Reeves asked for guidance as to whether this is a service that CPW should provide. He explained several things that need to be considered before making that decision. He provided information about a DHEC ruling whereby irrigation systems are required to have double check valves to prevent backflow into the main water stream. Those double check valves have to be tested annually by a certified tester. He reported that we currently have 1,321 irrigation systems on our system, of which 280 have had double check valves installed that require annual testing. The remaining irrigation systems were “grandfathered” in and do not require testing. Apparently, DHEC is now offering an alternative to us. We can continue to require the double check valve and require all customers to have them tested annually at their cost. The other things DHEC has done in conjunction with that is the ones that have been “grandfathered” in the past will no longer be “grandfathered” and therefore, they will have to come into compliance with the installation of double check valves if they do not currently have one, and then start the annual testing process. If we have to do 1,321, that further justifies us providing that service at a fee for the consumer. Commissioner Monaghan asked for clarification and Mr. Reeves explained that nothing has changed other than they are taking away the “grandfather clause” for the other systems that were initially “grandfathered” in. This will happen regardless of whether we do in-house testing or testing with outside contractors. DHEC has also offered an option to install dual check valves. Mr. Reeves added that dual check valves are not quite as effective and cannot be tested. If CPW decides to use dual check valves, we no longer have to require the testing by consumers, nor would we have to do the testing. The dual check valves have a shorter life expectancy and DHEC would require that they be changed out on a ten-year basis. We currently install dual check valves anyway; they are put in our new taps. The only change would be if we choose to allow the dual-check valve as the backflow prevention device, then we need to adopt a change-out program on a ten-year basis. Mr. Reeves added that according to Mr. Banks, that program would cost us about $7,000 a year. He noted that would put the cost on us and takes the consumer totally out of the picture. The consumer will not have to worry about testing, and since there is no testing, we don’t have to test either. Commissioner Monaghan asked about cost of testing the double-check valves and if it would cost more than $7,000. Mr. Reeves responded that it would unless we pass the fee on to the consumer. Commissioner Monaghan asked about those that already have double-check valves. Mr. Banks responded that we will send letters telling them that they are no longer required to have that device tested annually. Mr. Reeves noted that they probably already have the dual-check valve in the meter yoke anyway so they are actually doubly protected. Mr. Reeves stated that staff’s recommendation is to continue with installation of dual check valves and take the consumer out totally. A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to continue installation of dual check valves, and to replace them on a ten-year basis.

D.     The following updates were provided:

1.      Manager Reeves stated that there was a request from the Commissioners for the CPW website to be linked to the County, City and Partnership websites. Mr. Auman reported that this has been done now. All of them have us there, just not on their front pages. He added that the City’s is fairly easy to find. Commissioner Monaghan asked why we are not at least on the Partnership’s home page. Mr. Auman stated that we have asked but they have not responded. Commissioner Monaghan asked Mr. Auman to ask Mr. Fowler again.

2.      Manager Reeves reported on negotiations with the low bid contractor on the Water Treatment Plant re-roofing project. We have negotiated a reduction of about $6,000 from the initial bid by changing the membrane and a few other things. Mr. Reeves noted that the twenty-year warranty on materials will remain the same. 

3.      Manager Reeves reported on annexation issues. He stated that letters are being prepared to go out to Hill and Dale customers within the next couple of weeks. Commissioner Monaghan asked what their incentive would be and Chairman Hancock responded they would get cheaper water rates, better homeowner’s insurance rates, and garbage pickup. Commissioner Monaghan asked if there is any way to quantify that and Mr. Reeves stated that we can get a fairly good estimate of how much the homeowner’s insurance would be reduced, we know what the water would be, and can get a price from an outside garbage collection company. Commissioner Monaghan suggested that information showing those savings be put together in a brochure. Chairman Hancock noted that if they are over the age of 65, they get Homestead Exemptions there too of $50,000 each for the City and County. Mr. Reeves noted that with Waffle House, we have not been able to get in touch with them, but Charlie Barrineau is trying to get in touch with them about annexation and has sent a letter addressing how low their business license fees and taxes really would be based on other restaurants of similar construction. He mentioned the benefits in his letter but did not quantify them. We can quantify a great portion of that to show the benefit of having the fire and police protection. If it is only about $2,600 and we can quantify savings of $2,000, maybe only $600 more for that kind of police protection could make the difference. Mr. Amick noted that the water alone would be $1,000 of the $2,600. Mr. Barnett added the savings should be shown with short bullet points rather than lengthy explanations. Mr. Reeves reported that we are working with Herbert Anderson and are still waiting for information for his cost with utility installation and road work. We will put a package together to sit down and talk with him when that is received. Mr. Reeves reported a small change with Sam Zimmerman. He is still in favor of annexation but it was found that the tax incentive program that had been put together between the City and the Partnership could not be done. They are asking for a different mechanism that would accomplish the same thing and are trying to put together an alternative proposal. Mr. Reeves added that would be discussed further during Executive Session. Mr. Reeves reported on a meeting with Howard Corley on Monday and he is in favor of annexation because of the program. Because we have to “tweak” the way the dollars are given back, that will need to be addressed in Executive Session. Mr. Reeves reported that there was an issue between Jim Timms and the City of Greenwood where he had some disagreements with the City over taxes and business licenses. Mr. Brown has corrected the misunderstanding and is working to straighten that out. Mr. Reeves reported that Jeff Fowler is working with Advance Auto and that as of Monday, he did not have a response. Mr. Reeves reported on a meeting with Dr. Roger Stevenson where annexation of the Genetic Center was discussed. He has agreed to set up another meeting for next week to discuss utility installations and annexation issues. Mr. Reeves stated that an issue with the additional land there would be shared during Executive Session.

4.      Manager Reeves reported on the Joint Pole Use Agreement with Sprint, who is now Embarq. Mr. Meredith has talked with them and has found someone who is willing to work out an agreement. Because they have to go up through the corporate ladder to get a long-term contract agreed upon, they have asked Jeff if we would agree to a temporary agreement that changes the $2.50 to something along the lines of $10 per pole. That would be for a period of basically the first year, and then we would go to a more long-term, permanent agreement. Mr. Reeves stated that he likes this idea because it gets us away from $2.50 and then we can work on the long-term agreement. Mr. Reeves added that Mr. Meredith’s contact felt this type of agreement could be approved pretty quickly because it can be done more or less in-house. Commissioner Monaghan asked about the number of poles and how much money. Mr. Meredith stated that they are on about 5,000 of our poles, and it would be about a $35,000 increase in revenues over last year. Commissioner Monaghan asked about the norm for the charge and Mr. Reeves stated he had seen ranges from $5 per pole up to $20 or $30 per pole, depending on the area or region and the going rate. Most around here range in the $10 range. Mr. Meredith stated that with the five-year contract, we wanted to go to $15 starting point. Commissioner Monaghan asked about tying to the CPI. Mr. Meredith stated that would be addressed in the contract. Mr. Reeves added that is what we have with cable TV.  We started at $7 to $7.50 and are now up to a little over $10. Mr. Meredith stated they are asking not to do a CPI because of something with their accounting; so he is essentially projecting a CPI out over the term of the contract and backing that down to a flat rate.

5.      Manager Reeves reported that we have received a number of phone calls about the first ad for gas incentives that ran in the newspapers, and he had received a couple of complaints. People are complaining that we are doing incentives when in their estimation we could take that money and reduce rates. Mr. Reeves stated that he has tried to explain that the reduction would be so insignificant they would never know they got it, and we are trying to build consumption for the future to help offset rates. Mr. Gentry then reported on the marketing plan for gas incentives. He stated that the ads had already run for two Sundays in the newspaper. He noted that the first was in Section D and should have been in Section A. Last week it was in the right section, so the plan is to continue for six weeks on Sundays in The Index Journal; every Wednesday in the Ninety Six Star Beacon and the Ware Shoals Observer, and after that to switch to once a month. He added that the billing inserts should go out in August. Mr. Gentry stated that over 100 letters have been mailed out to the Builder’s Association and others were e-mailed. He stated that he would follow up with phone calls and some visits. Mr. Gentry distributed copies of an ad to be run for gas. Commissioner Monaghan asked if a gas furnace is cheaper than a heat pump. Mr. Reeves responded that we have been saying “yes”, but he had seen some numbers this week that seem to indicate differently. Mr. Gentry stated that with the fluctuation of the market, it is difficult to do a fair comparison and be accurate month-to-month and day-to-day. The impression we are trying to give is that it is comfortable, fast heating, and over a years time they could see a significant savings. Chairman Hancock stated that it is according to the temperature outside. If it gets below 32º, a heat pump is shot, there is nothing there and once you have to use the heat strips, that is when the cost really goes up. Mr. Gentry noted that gas feels much warmer because it comes out at 125º versus a heat pump which comes out 85º. The Commissioners stated their approval of the ad. Mr. Gentry then distributed a brochure that was designed for the new well management system program. The plan is to mail these to builders and developers and to have them at Home Builders Association meetings. The Commissioners again stated their approval of the brochures. Mr. Gentry noted that Metro has asked him to look into a grant at Harris Landing and a packet is being put together right now to include water and that will go to rural development. Mr. Gentry reported on ads for public awareness on Channel 16. He noted these same type ads will also be sent to the newspaper. There are thirteen ads to be changed out periodically, including messages about calling before you dig; what to do if you smell gas; and carbon monoxide buildup.

6.      Manager Reeves reported that the credit card payment programming is nearly complete. ASI has assured us that programming is their number one priority. They anticipate running test programs for accounts by July 25 and then it is just a matter of getting the state contract worked out.

V.                 Other Business:

1.      Manager Reeves reported that Mr. Burnett had gotten rid of the last of the Metris meters. We will get $2,880 for the remainder of the 596 meters. A company in Texas has agreed to purchase them and to pay the shipping.. Mr. Lemon added that 750 were kept out after we scrapped them and for the last year we have worked at getting rid of them and this is what was left of the 750.

2.      Manager Reeves noted that copies of the audit were received and the Commissioners had been given their copies. The Commissioners agreed to have the audit presentation at the August 10 meeting.

3.      Commissioner Monaghan noted that the first Metro meeting each month will be held at the Technical Center and asked if CPW would prefer to hold the first meeting of the month at the COC. Staff was in agreement to continue meeting in the Boardroom at the main office for both monthly meetings.

VI.              Executive Session:

            A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to go into Executive Session to discuss contractual matters pertaining to annexation agreements.

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