COMMISSIONERS OF PUBLIC WORKS

Minutes of June 22, 2006

 

The regular meeting of the Board of Commissioners of Public Works was held on Thursday, June 22, 2006, at 10:00 a.m., in the boardroom at 121 West Court Avenue.

 

In attendance:                                                                                

Gene P. Hancock   Steve D. Reeves, Jr.         Scott Banks

Vickie Gorham       Michael G. Monaghan   Ken Barnett

Jeff Auman             Ron Lemon                      Henry O. Watts

Jay Thompson        Stacia May                      Vicki Knott

Denise Giannetti     Richard Gentry               Bill Patrick

Curtis Burnett         Ken Whittle                     Laurie Smith

Jeff Meredith           Melinda Bishop

                                                                                                           

I.              Chairman Hancock called the meeting to order and noted that Commissioner Monaghan would be arriving later. The invocation was given by Ken Barnett.

 

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

           

III.               A motion was made by Commissioner Monaghan and seconded by Commissioner Watts to approve the minutes of the May 25, 2006 regular meeting; and the June 8, 2006 regular meeting. The motion was unanimously approved.

           

IV.              Financial Statement:

 

            Commissioner Monaghan noted concern with being $3 million over budget on revenue and whether the rates could be too high. He stated that there is $3.5 million and after depreciation is added back, there is almost $7.5 million over in expenses and it is only June. He asked if rates might be too high. Ms. Giannetti responded that some of it is the timing because of the way we spread the budget. We may spread it over an equal twelve months and we have heavier sales in gas in the winter months. Also, the natural gas has not cost as much as was forecasted. Mr. Reeves added that the biggest part is on the expense side. In looking at the revenue side, we are right on track with revenues. On the expense side, we are way under spending at this point in time. When budgets are done year-to-date, it is mostly based on a straight line budget. Ms. Giannetti noted that we have not gotten to the big electric season yet. Commissioner Monaghan asked if that could not be anticipated in the budget preparation; construct the budget as such rather than just taking the total and dividing by twelve. Ms. Giannetti stated they have talked about doing that for next year. Mr. Reeves added that this was kind of a first step in getting to that point. Commissioner Monaghan stated that this skews things and it is good that we are positive, but we have rate payers who we do not want to pay more than they should. Mr. Auman stated that we do not have a good mechanism or software package to be able to base it on last years spending; in fact, they just met yesterday with a company that sells software that does exactly that and helps with forecasting. Commissioner Monaghan asked why that could not be done with a simple Excel spreadsheet. Mr. Auman responded that you can to some extent, but it is a lot of work. Commissioner Monaghan asked how much work this would involve and could they not take these reports and put them in an Excel spreadsheet. Mr. Reeves responded that you can come close by taking the last five years and taking each month as a percentage of your total budget and at least get it a lot closer than this. Commissioner Monaghan requested that Ms. Giannetti try that.  

 

V.        New Business:

 

A.     Chairman Hancock noted the approval at the last meeting for 510 gas meters, and that the ERT modules for those gas meters were not approved at that time. A motion was made by Commissioner Monaghan to approve the purchase of 510 ERT modules at a cost of $23,160.38. The motion was seconded by Commissioner Watts, and unanimously approved.        

 

B.     Chairman Hancock stated that the low bid on the Oregon Avenue water line extension project was from Carolina Tap and Bore in the amount of $67,350. He noted that there was a $425 difference between the low bidder and the second low bidder, Chandler Utilities. Commissioner Watts made a motion to approve the low bid from Carolina Tap and Bore in the amount of $67,350; Commissioner Monaghan seconded, and the motion was unanimously approved.  Mr. Reeves added that the City of Greenwood will actually pay for this as their in-kind contribution to the project. We will be providing up to $100,000 of in-kind manpower for the installation of the electrical upgrades.

 

C.     Chairman Hancock noted that the time that the Board package was prepared, bids for caustic had not been reviewed by David Tuck and Scott Banks because they were out of town. The suggestion was to accept the low bid of $398 from Colonial Chemical Solutions, pending approval by Mr. Tuck upon his return to Greenwood. Mr. Banks added that a memorandum was received recommending Colonial. A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to accept the low bid from Colonial Chemical for caustic.

 

D.    Chairman Hancock stated that bids were submitted for re-roofing the water treatment plant. He referred to a letter from Facility Consulting Group stating that they evaluated the bids that were submitted, and although the bids are considerably higher than their original estimate, the recommendation is to accept the low bid from Summit BSR Roofing. Mr. Reeves is also asking for authorization for staff to begin negotiations in an effort to reduce this cost, not to exceed $146,955. Chairman Hancock noted that Mr. Reeves does not recommend using different materials in an attempt to simply lower cost unless those same materials provide the same high quality of roof replacement. Commissioner Monaghan asked for more detail and Mr. Banks responded that one of the items causing this to be more expensive was the lightning arrestors for protection on the building. He noted that most of the contractors preferred to replace them, and this, along with dust protection while working in those areas, were probably the biggest factors contributing to the higher costs. Mr. Banks noted the possibility of the low bidder using another fiber from the same manufacturer that would be less expensive. Mr. Reeves added that the low bidder made several suggestions on ways to reduce the cost. If we find that those materials are acceptable and provide the same quality roofing, then it would be a good idea. If the savings is minimal and the materials are questionable, then we would not want to do that. Commissioner Monaghan asked to be notified of the results after their review. A motion was made by Commissioner Monaghan to approve the low bid from Summit BSR and to authorize staff to negotiate in an effort to reduce the cost. The motion was seconded by Commissioner Watts, and unanimously approved.

 

VI.       Other Business:

                          

1.   Manager Reeves presented a request from Ms. Giannetti to transfer $811,231.54 from the 2003 Bond Construction Fund into the General Operating Fund. He reminded the Commissioners that this is done periodically after we pay for approved bond projects from our General Operating Fund. A motion was made by Commissioner Watts to authorize the transfer of $811,231.54 into the General Operating Fund; the motion was seconded by Commissioner Monaghan, and unanimously approved.  

2.   Manager Reeves presented a concern from the Hill and Dale Subdivision with water quality issues. Mr. Reeves reported that Mr. Banks discovered that there is a 2-inch galvanized line serving approximately 21 houses there, and noted that it is pretty clear that line is past its life expectancy. Mr. Reeves recommended installing a 6-inch line and to also include fire protection, at a cost of $11,550. Mr. Reeves asked that this be added to the bond construction project list. A motion to approve the request was made by Commissioner Monaghan, and seconded by Commissioner Watts. Chairman Hancock asked if we had talked with them about annexation. Mr. Reeves responded that we had not but could certainly question them. Mr. Reeves further stated that we owe it to them as a consumer to provide good quality water and Chairman Hancock stated his agreement. Mr. Whittle noted that they are having to replace the gas lines there as well and suggested making it a joint effort. Chairman Hancock noted that it is not in the city limits but he was pretty sure it is contiguous. Chairman Hancock requested a survey of Hill and Dale Subdivision residents, and the motion was unanimously approved.   

3.   Manager Reeves reminded the Commissioners that when the water treatment plant improvement project was initially bid, it came in well over the allocation funds from the bond. We went back and rebid it, and the second time it came in well under the total that was available from the bonds funds. At that time, we said we would take a look at some of those individual projects later. We are now at a point where there are sufficient bond funds remaining and staff has asked to go back and add in one of those projects. Mr. Reeves presented a change order request from South Atlantic Construction for $239,443 to add a chlorine dioxide project back to the list. He noted this as one of those projects originally bid that the engineers and staff got together and decided to postpone. Commissioner Monaghan asked for detail on the project. Mr. Banks explained that the existing system was a pilot type system and likewise the chemical for it comes from a sole-source supplier. The biggest expense is tankage because it will be a two chemical system. By going to the other system it will be more efficient for what we are doing and will also allow us to get competitive bids on our chemical and the system will be a little more reliable. Mr. Reeves added that we basically have a temporary system now; it was not installed as a long-range operating system. It was a pilot study that we have kept running. Commissioner Monaghan asked for something to review before making a decision, and stated that since it is nearly a quarter of a million dollar project, he would like to see more documentation. He asked if this could wait a couple of weeks. Mr. Banks responded that the only problem with waiting would be because of materials, he was not sure how long they would hold the price. Mr. Banks stated that this was part of the original bid package that went out and he could get a set of drawings and a breakdown of materials and labor. Commissioner Monaghan asked again about the urgency and Mr. Banks responded that they will only hold this price for a short time. As with anything related to metals and PVC or gas, the price can go up. Mr. Reeves suggested that if the Board does not wish to approve the project without that detail, Mr. Banks could call the contractor through the engineer after this meeting and see if he will hold the price for two weeks. If he will, we will revisit it at the meeting in two weeks. If he says that he cannot hold the price, we will find out why and what changes and either call a special meeting or call to poll the Commissioners. Mr. Patrick suggested that they also include a comparison of the benefits of changing over from the other system in a cost benefit analysis type of format. Mr. Reeves stated that should be part of the document that was used in the original bidding. Mr. Banks stated that he would find and provide this information.

4.   Manager Reeves asked the Commissioner for consideration in changing the date for the July meeting. The Commissioners moved the July meeting date to Tuesday, July 25, 2006 at 10:00 a.m.

5.  Manager Reeves informed the Commissioners of an award from the S. C. Municipal Insurance Trust for public utilities where we placed second in their safety contest and stated that we will receive a plaque. He congratulated employees for the effort put forth. Commissioner Monaghan asked about lost time accidents and asked if an effort is made to cut down on worker’s compensation time lost. Mr. Reeves stated that some legal issues come into play when you bring employees back too early. Commissioner Monaghan asked about the nature of any legal questions. Mr. Reeves responded that a former labor attorney had concerns with bringing employees back when they are not physically approved by a physician. Commissioner Monaghan stated that it should be alright as long as you put them on light duty and asked if that would be a problem. Vicki Knott responded that if we have light duty available, the employee does not have to accept that light duty. Commissioner Monaghan asked why since the employee is getting the benefit of full pay even for light duty and we don’t have the claim against the company and it helps keep our insurance cost down. Mr. Reeves stated that was the information given to us some time ago from a previous labor attorney and we could check again with the firm we are currently using to see if they agree. The Commissioners asked for a ruling and Mr. Patrick agreed that it would be good to get an update on this.

6.   Manager Reeves provided an ad to the Commissioners from the AWWA conference in San Antonio. Although the ad was for water, he suggested that something similar could be done for gas. Mr. Reeves stated that the point of the ad is to get consumers aware of the infrastructure that is in place to serve them that they sometimes take for granted. A lot of our water system has been in the ground for many years, and unless we start making plans soon for replacement of those systems, we could have some pretty major impact on our consumers. Commissioner Monaghan noted discussion of doing an assessment of our current system and constructing a ten-year plan. Mr. Reeves stated that would be part of our budget process this next year. He added that he also received an asset management CD from AWWA today in the mail and would be sending that to Mr. Barnett and Mr. Banks. He added it is something we could probably use across all utilities.

7. Commissioner Monaghan asked for a report on annexation efforts and the advertising scheme and expressed the desire to have a report at every meeting. Mr. Reeves responded that he did not think there was any progress with annexation since the last report. Mr. Barnett stated that Mr. Fowler is in Chicago and he had left a message for him to call back with an update. Commissioner Monaghan asked that they keep them abreast at each meeting and be prepared to tell them what they are doing and also as things develop in between meetings. He then asked Mr. Gentry what the plan is for advertising the new gas incentives. Mr. Gentry stated that they had designed the ad and are working on getting the internal processes together right now. Commissioner Monaghan stressed that we should just go ahead and do it and that it should not take another year to get it done. Ms. Giannetti stated they are working with ASI to do the programming to calculate all of the information that will be needed. Commissioner Monaghan asked if it could be done manually in the meantime until we get it going and Ms. Giannetti stated that we will. Mr. Gentry stated he would go ahead and put the ad in this Sunday’s paper. Commissioner Monaghan stated there should be an advertising campaign. Mr. Gentry said that he has all of the advertising rates from various newspapers now and can put together a schedule. They are working right now on putting together some sort of comparison to be sure with gas that what we are saying is accurate. Commissioner Monaghan asked if anyone had talked to the new Waffle House and Mr. Barnett responded that they have talked to them. Discussion continued on sewer service and Mr. Barnett noted that he did not know what actual commitment Metro has made to Waffle House at this point. Commissioner Monaghan stated that staff should let the Commissioners know if they cannot get an answer from Mr. Coleman. Mr. Reeves stated that he had talked with Steve Brown about having another meeting with the City around the middle to end of July for an annexation study. Mr. Reeves informed the Commissioners of a conversation with Jerry Spearman on the property at the lake. Apparently, the perk test came back that he could only put two houses on the entire ten-acre site. He is looking at an alternative method for providing sewer. Commissioner Monaghan asked how we are going to get reports on annexation so the Board knows what is going on. Chairman Hancock asked about the Corley property. Mr. Reeves responded that the last he heard from Howard Corley, he had indicated there was a positive thought process about annexation, but he was waiting for detail information from Jeff Fowler on the tax incentive. Mr. Reeves added that Mr. Brown has sent Mr. Fowler an e-mail asking him to hurry it up; we also want to get the Anderson property and the Genetic Center. Mr. Zimmerman has received his information and the last we heard, he is positive about moving forward with annexation. Commissioner Monaghan suggested that in the meantime, send Jeff Fowler a “burning” e-mail because he checks that while he is gone, or try to call John.

 

VII.      Executive Session

             

            A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to go into Executive Session to discuss a personnel matter pertaining to pay raises and a contractual matter pertaining to a contract with Greenwood Metropolitan District on the main office building.  

 

            The meeting returned to open session. Manager Reeves stated that during Executive Session the Commissioners reviewed pay rate changes as recommended by staff for all employees. A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to increase salaries by an average of 4.27% for all employees, to be distributed according to the performance appraisal results; and to increase the on-call pay by 2%, which is the general increase; and in addition, that from this date forward, Commissioners’ salaries would be increased by the amount of the general increase that is approved for all employees, with an effective date of July 3, 2006.

 

            A motion was made by Commissioner Monaghan, seconded by Commissioner Watts, and unanimously approved to increase the salary of the General Manager by 6%, effective July 3, 2006.

 

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