COMMISSIONERS OF PUBLIC WORKS
Minutes of December 13, 2007

A regular meeting of the Board of Commissioners of Public Works was held on Thursday, December 13, 2007, at 10:00 a.m., in the Boardroom at 121 West Court Avenue.

In attendance:

 

           

 

A motion to ratify the action of the Manager was made by Commissioner Hancock, seconded by Commissioner Monaghan, and unanimously approved.

 

A motion to accept the low bid to refurbish the transformers as recommended was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved.

 

A motion was made by Commissioner Monaghan to approve the three-year agreement as recommended; the motion was seconded by Commissioner Hancock, and unanimously approved.

 

A motion was made by Commissioner Hancock to approve all bids as recommended for Items D. through S.; Commissioner Monaghan seconded, and the motion was unanimously approved. Manager Reeves clarified that the low bid was not recommended for Item Q. which was for electric meters. The Commissioners indicated their understanding of the recommendation.  

     

1.   Manager Reeves reported that there was nothing new with annexation. He added that the City had recently annexed a few pieces of property that were of no major consequence to CPW. Mr. Gentry shared a letter from Mayor George Rush of Ware Shoals thanking CPW for participating in their Christmas parade. Chairman Watts thanked staff for their work on the Christmas parade float and recognized the following individuals: Stan and Nora Stockman, Barry Mayfield, Brad Holland, Paul Kelley, Brad Bell, Bobo Rushton, Suzanne Rushton, Skylar, Graham, and Tanner Rushton, David Sweatt, Thomas Suttles, Greg Barnes, Mike Ginn, Doris Jones, Tisha Williams, Darrius Andrews, Mark Falls, Patricia Falls, Emily and Caroline Falls, Carolyn Wright, J. J. Jordan, Dennis Miller, Giana Bush, Cheryl Auman, and Kathy Davis. Commissioner Monaghan stated appreciation to Cheryl Auman for many hours spent sewing the costumes. Commissioner Hancock noted that staff also made the hats while other parade participants had worn manufactured hats. He noted that staff really seemed to enjoy working on the floats. Chairman Watts stated amazement over the amount of talent within CPW and their willingness to work so hard on the float.       

                                   
2.         Chairman Watts made a statement regarding the Grace Street property. He began by pointing out that the majority of the Commissioners had voted not to give away property valued at $5 million due to legal advice, and the desire for fiscal responsibility, along with a need to get a return for the value of the property. He continued that they came up with several compromises, one of which was for Greenwood County Council to approve $4 million in water lines to be placed throughout rural areas of the county, and that so far, nothing had been heard from County Council. He continued that the next compromise suggested was for mixed use of the property that required the rezoning of 13.4 acres for commercial use to sell and get some compensation, and the remaining 40 acres could then be set aside for park use. Chairman Watts expressed that the belief was that was a reasonable compromise; however, the Planning Commission and the Parks Commission did not see fit to agree. He continued that it is now left up to City Council to rezone the property to commercial. If they fail to do so at their meeting, CPW would have no other choice but to sell the entire 54 acres “as is”. Chairman Watts concluded by expressing willingness to listen if someone could offer a better compromise, adding that the other Commissioners would also be willing to listen.  Commissioner Hancock stated that the property could be developed now as R-4, or the County could get it for as long as they want if they would go along          with the water lines. It could also be rezoned as a PDD multiple use or the City could approve the commercial and we could get some return back for some portion of the $5 million. CPW could cover the legal problem in that way and possibly still have a part. Commissioner Hancock continued by stating that sometimes government is a compromise to start with. The Commissioners are elected officials who represent the ratepayers. He stated that they had just cut $3.5 million out of the budget for next year, and had just floated $10 million worth of bonds. Chairman Hancock stated that in the wintertime when people cannot pay their bills, they call us. CPW has to keep rates down even though we already have the lowest electric rates, and predominantly the lowest water and gas rates in the state. The ratepayers look to them to keep the rates down; you do not keep them down if you give everything away. He noted that CPW helps with other projects in Greenwood as well, while the County gets a big return on the utilities and does not invest anything. He referred to CPW putting gas and water in at Summer Point while the County had not put anything into it and would still get big tax revenues. He stated that the County put $1 million worth of bonds for a sewer line out to what used to be Blazer’s because it would be big tax bucks for them. He stated it would be a win/win situation for the County if they would compromise. Chairman Watts added that CPW has to be fiscally responsible. He noted that the Commissioners worked a full day on the 2008 budget and that it was still in the red. He added that they just cannot give away that property, and pointed out that no other government agency or anybody else would give away $5 million worth of property. Commissioner Monaghan expressed discouragement because the County Council had failed to participate in working toward a compromise solution. He added that he would continue to oppose the sale of the property until a compromise could be worked out. He stated belief that a park would be there in the future; it is just a matter of all parties coming together in a reasonable way. He continued that everyone involved, the County, the City, the Parks Commission, and CPW have to negotiate in a positive way in order for that to be accomplished. Commissioner Hancock noted that they were told that the Parks Commission would compromise on the commercial with a park but it did not seem that way at the meeting.

3.   Manager Reeves asked the Commissioners for guidance with whether to hold the meeting scheduled for December 27. He noted there was no particular reason to hold the second meeting at this point unless the Commissioners saw a need. Commissioner Hancock pointed out the number of hours already put in that week and added that they should not meet again unless there was a need.

A motion was made by Commissioner Monaghan to eliminate the second scheduled meeting on December 27; the motion was seconded by Commissioner Hancock, and unanimously approved. Commissioner Monaghan noted that the meeting would fall on the day after returning from the Christmas holidays. Manager Reeves added that there is no legal requirement for the budget to be approved prior to the end of the year. Commissioner Monaghan asked Manager Reeves to summarize the budget work session that took place earlier in the week. Manager Reeves reported that most of staff was involved in the budget work session. They started with a proposed budget that was $4.4 million in the red, and by the end of the day, the Board had cut $2.7 million. He continued that we are still approximately $1.7 million in the red and could potentially be facing rate increases to cover the deficit. He explained that the biggest reason is because sales are down with warm weather; winter gas is not at the level it has been in the past and that also affects the electrical side. Water sales are also down as a result of losing some major industrial sales.
                 
4.   Manager Reeves reminded the Commissioners of a request made at the last meeting to provide a list of annual contracts to be bid and when those would take place. He provided a list and asked the Commissioners to call with any questions. He noted some contracts with extensions upon the mutual agreement of both parties. He added that for our purposes, that is to make sure there are no cost increases. Commissioner Monaghan noted that engineering services should be added to the list. Manager Reeves responded that there was a recent RFP for water and they would be looking at other utilities as well.  
                   
5.   Manager Reeves provided a handout from the Water Utility Council of South Carolina Annual Report with information on bills currently before the Senate and the House of Representatives. He noted several of particular interest pertaining to the regulation of utilities outside of the city and prohibiting the use of utilities for purposes of annexation, and suggested addressing them with the local delegation.

6.   Manager Reeves presented a request from the City of Greenwood for Richard Gentry to donate the use of his time to help with a marketing campaign for the downtown construction area. The Commissioners were in agreement.

7.   Manager Reeves reminded the Commissioners of the Annual Awards Banquet scheduled at the previous meeting for January 24 and noted that was also the date of the Chamber of Commerce Annual Meeting.  The Commissioners indicated their desire to attend the Chamber Meeting and agreed to reschedule the Annual Awards Banquet for January 31. He reported on menu changes for the awards banquet that would include some healthier choices.

8.   Manager Reeves noted that the budget had been reviewed but not formally approved and requested permission to send it to Sheree Brown to begin a rate review. The Commissioners were in agreement.

9.   Manager Reeves noted that propane gas bids were reviewed during the meeting and staff was ready to make a recommendation.  Mr. Lemon recommended acceptance of the bid from Palmetto Propane in the amount of $1.36 per gallon for the entire 260,000 gallons of propane. He stated that was within $0.20 of the current NYNEX market. Commissioner Monaghan stated an understanding that they were       supposed to adjust the budget with that revenue. Mr. Lemon responded that originally when they had the presentation, the thought process agreed upon was to also set the money for the sale of the assets aside to go out and buy storage. Commissioner Monaghan indicated that he did recall that discussion and clarified his understanding as being that they were going to buy storage to give them the ability to buy gas in the summer for the winter and that it is usually in salt mines. Mr. Lemon added they would look into buying some relief storage after the winter season is over because the middle of winter is not the time to go looking. In general, storage should become available around April or May. He noted that Cary and Ken were going to a conference in Houston in January at which they would begin the process of understanding who is there. He added that Cary would also meet with Transco to determine if they have some incremental storage available at those facilities. Commissioner Monaghan stated for the record that the purpose was to buy gas at low prices and store it until needed during the winter. Mr. Lemon responded that Commissioner Monaghan was correct and added that it would be an alternative to a hedging program. He explained that for about $1, he could buy gas selling in August at $5 because there is no need for it, put it into storage, hold it for four months and have $6 in the gas. If the market is trading at $8.50 and we have $6 gas, we could also buy a “put” if necessary at a reasonable price and have the best of both worlds. Chairman Watts asked Mr. Lemon if the recommendation made earlier was to sell only the gas and not the tanks. Mr. Lemon responded that was correct and added that Mr. Whittle was putting together a package for the tanks. They would review that for liability to be sure we are covered. He continued that they are anticipating that the propane would be gone within 30 days. He stated that by the end of February, they should have sent out a pretty significant package, have an answer, and start dismantling. He noted quite a bit of interest in the tanks, and added that 45 days would be given for people to visit if necessary. Commissioner Monaghan stated for the newspaper that we are dismantling the propane tank plant. Commissioner Hancock pointed out that there are twelve  30,000 gallon tanks that are no longer any good to us for peaking because it is too small for what we are having to peak. That would buy a lot more storage to peak off the system. We would sell that off and the land too.

            A motion was made by Commissioner Monaghan to approve the bid from Palmetto Propane as recommended; the motion was seconded by Commissioner Hancock, and unanimously approved.    

 

10.       Manager Reeves noted that Mr. Auman was ready to make a recommendation for network storage. Mr. Auman recommended the low bidder, Data Network Solutions, at a cost of $74,193.80.

            A motion was made by Commissioner Hancock to approve the low bid as recommended; the motion was seconded by Commissioner Monaghan, and unanimously approved.

11.       Chairman Watts wished staff a merry Christmas and happy New Year and expressed appreciation to everyone.

V.        Executive Session
             
            A motion was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved to go into Executive Session to discuss legal, contractual, and personnel matters.  

            The meeting returned to open session.

A motion was made by Commissioner Hancock to close at 12:00 noon on Christmas Eve and on New Year’s Eve; the motion was seconded by Commissioner Monaghan, and unanimously approved.  The Commissioners requested an ad be placed in the newspaper showing the holiday closings.
           
VI.       With no further business, the meeting was adjourned.
           

     

                                               

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