COMMISSIONERS OF PUBLIC WORKS
Minutes of May 27, 2010
The regular meeting of the Board of Commissioners of Public Works was held on Thursday, May 27, 2010 at 10:00 a.m., in the Boardroom at 121 West Court Avenue.
Meeting attendees are listed in the Print Friendly PDF version above.
- Chairman Watts called the meeting to order. The invocation was given by Ken Barnett.
- Chairman Watts gave the statement of compliance with the notification provision of the Freedom of Information Act.
A motion was made by Commissioner Monaghan and seconded by Commissioner Hancock to approve the minutes of the regular meeting of April 8, 2010 and the regular meeting of April 22, 2010 as submitted; the motion was unanimously approved.
Commissioner Monaghan expressed that the financial statement and the rate study summary letter were confusing, and requested a work session to go over them in detail at a later date with Ms. Ogletree. He added that the other Commissioners might like to join in that session. He commented that the financial statement shows us as being way ahead of budget; now we are looking at a rate study. Manager Reeves clarified that the reason for being ahead of budget is because expenses have been held down because of the tight budget, with the fact that we have not implemented a rate increase, projects have not been done and things have been postponed. Ms. Ogletree added that revenues were also high because of cold weather; expenses are staying somewhat constant except for the cost of energy. Commissioner Monaghan stressed the importance of the Commissioners thoroughly understanding the study, and the other Commissioners indicated that they would like to attend the work session. Chairman Watts noted miscellaneous income on the combined statement of $397,897; Ms. Ogletree responded that it was the amount received so far for the CDBG grant. He asked about the schedule for the payment to the City. Ms. Ogletree responded that it is accrued monthly, but is not actually paid until the exchange of checks and shows up as a type of payable. The Commissioners agreed to hold a session as soon as possible for the purpose of reviewing the financial statement and rate study summary letter.
A. Mr. Warner reported that the Economic Alliance Board meeting had been postponed until sometime in June because of Memorial Day. He noted a lot going on and that information would be forthcoming on a Fuji event to be held later in June.
- Manager Reeves reported on a recent meeting with John Phillips, the administrator for the health insurance program. He stated that we are probably in the best shape in many years with the reserve approaching a half million dollars. According to the program guidelines, we are to maintain around $450,000, so we are right on target. Manager Reeves then presented two suggestions from Mr. Phillips, the first a change to the drug card appropriation that is currently a $10 generic/$20 name-brand plan to a four-tiered $10/$30/$60/$75 plan. He recalled that same suggestion was presented before and rejected by the Commissioners. Manager Reeves continued with the second recommendation which is to increase employee participation on dental insurance because the premiums for the dental plan portion are not covering the cost of the program. He pointed out that the overall health program is still in great shape. He then commented that COBRA rules and regulations had changed and everyone in the SCLGAG pool had already shifted over to allow Medcost to administer their COBRA programs. Manager Reeves presented a recommendation from Harvey Mathis at the Municipal Association whereby all participants can take advantage at a cost of $2,100 annually. That amount is inclusive of CPW and Metro, with a total cost to CPW of around $1,600. Manager Reeves joined in that recommendation. Commissioner Monaghan asked how it is currently done; Manager Reeves responded that it is done internally. He added that our liability increases with the regulation changes if it is not done properly.
A motion was made by Commissioner Monaghan and seconded by Commissioner Hancock to have Medcost administer COBRA; the motion was unanimously approved.
Commissioner Monaghan expressed the opinion that the drug card plan should remain the same and Commissioner Hancock agreed. Chairman Watts asked about other options. Manager Reeves noted that the savings would only be around $60,000 by changing to a four-tier plan. Commissioner Monaghan commented that if employees get their prescriptions filled, then they stay healthier which saves on other medical costs. The Commissioners agreed to leave the prescription card plan as it is for now. Commissioner Monaghan expressed interest in changing the dental plan maximum annual amount from $1,000 to $1,500 and asked about the current premium. Manager Reeves responded that it is $15 per month for family coverage. Commissioner Monaghan noted that the maximum amount of dental insurance that he had thirty years ago was $1,000. He added that after talking with a couple of dentists, the common amount now is $1,500 or $2,000. Manager Reeves responded that he had discussed this with Mr. Phillips, who agreed that $1,000 was too low and that most now have $1,500. He is to provide us with a cost breakdown that will be brought before the Board for consideration.
- Manager Reeves noted that staff is working on a list of possible bond projects. He recalled that when they went through the budget process, there were a number of projects put into print just to make the Commissioners aware of the need to get those projects done. Those were not included in the budget totals, but were recommended for a bond project this year. After noting rates are at an all-time low right now and that they would like to take advantage of those low rates, Manager Reeves recommended that Ms. Ogletree be authorized to contact the bond attorneys and underwriters to at least get the process started. Commissioner Monaghan asked about the effect on GASB. Ms. Ogletree responded that right now it is really up in the air; all municipalities are the same with GASB. They are not requiring us at this point to fund the program, but we have taken the steps to recognize and follow the rules that are present right now. She added that she would attend a conference in Atlanta and hoped to ask some questions at that time. Commissioner Monaghan stated that this is the first year that municipalities and counties are legally affected by GASB; Ms. Ogletree responded that it was tiered depending on your revenue stream. This is the last year that smaller municipalities were supposed to comply with the regulation. Commissioner Monaghan continued by stating that there could be some political upheaval when cities like Greenwood, Ware Shoals, and Ninety Six all of a sudden have to fund their post-employment benefits. Manager Reeves added that he had heard that none of them are able to fund it. Commissioner Monaghan expressed that we should not put our treasure into irrevocable trust if they are going to change their minds later and say it does not have to be done. Commissioner Hancock noted that Metro’s bond rating had gone up. Ms. Ogletree stated that CPW’s had as well; they restructured the way they look at municipalities and CPW was upgraded one grade. Chairman Watts asked if an amount was needed to begin the bond process. Manager Reeves informed the Commissioners that it was not right now; they are looking in the $10 - $12 million range. Commissioner Monaghan requested a list of projects to be funded. Commissioner Hancock asked about refunding; Manager Reeves responded that they are looking at it to determine whether there is any benefit. The Commissioners agreed to proceed with the bond process.
- Chairman Watts noted that any decision on the rate study had been postponed until after the session with Ms. Ogletree. Manager Reeves offered to have Ms. Brown come down. Commissioner Monaghan suggested that they could bring Ms. Brown in later if more clarification is needed.
- Chairman Watts presented a recommendation to accept the low bid in the amount of $51,420 from Ballentine Ford for a super-duty crew cab truck for the water department.
A motion was made by Commissioner Hancock, seconded by Commissioner Monaghan, and unanimously approved.
- Chairman Watts presented a recommendation from staff to accept the bid in the amount of $14,806 from Ballentine Ford for a Ford Fusion for the IS department.
A motion was made by Commissioner Hancock to approve the bid as recommended. Commissioner Monaghan asked what was on the vehicle. Mr. Auman responded that it was the same as the state contract, including power windows and other standard options. Manager Reeves noted that the only change was from a 6-cylinder to a 4-cylinder. Mr. Auman added that would not make any difference for their purposes, other than getting better gas mileage. He added that the vehicle was ranked fourth in its size/class, with those ranked higher being foreign vehicles. Commissioner Monaghan seconded the motion, and the motion was unanimously approved.
- Chairman Watts presented a recommendation to accept the bid in the amount of $30,098 from Howard Engineering for gas SCADA upgrades.
A motion was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved.
- Chairman Watts presented a recommendation to accept the bid in the amount of $494.44 each from American Meter for 600-series gas meters.
A motion was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved.
Mr. Smith recommended the low bid from Equipment Controls at $808.24 each for 1000-series gas meters.
A motion was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved.
- Chairman Watts noted a recommendation from staff to reject both bids for a one-ton truck for Energy Supply since neither bid met the specifications, and to re-bid at a later date. Mr. Smith explained that one bidder had indicated they did not meet the specs; the other indicated that they did, but the bid was over the budgeted amount. He concluded that they would reassess the situation and bid again.
A motion was made by Commissioner Hancock to reject all bids; the motion was seconded by Commissioner Monaghan, and unanimously approved.
- Chairman Watts presented a recommendation to renew a contract for technical support and software updates of the SCADA system at the water plant for another three-year period, at a cost of $25,068.39. Commissioner Monaghan inquired about other alternatives. Mr. Chapman responded that it would then be paid on an annual basis at a higher cost. Mr. Auman added that it could also be done on a “per hour basis” at a cost of $250 per hour. He noted that it would also include hardware maintenance on the CompactLogix controllers replaced over the past two years. Commissioner Monaghan asked about using other companies; Mr. Chapman explained that this contract is for their equipment that we had installed. He added that when dealing with SCADA systems, those are proprietary and their software drives the system. If we went with a different system, we would have to retool the entire SCADA control system that goes back to the plant. Mr. Smith added that it is actually deeper than that because a different device would not communicate with the original one. You would have to put in software translation in order to make them communicate with each other, and you would not want to do that. Commissioner Monaghan commented that it would seem that when you initially decide which company to go with, you are then locked in forever. Mr. Chapman agreed that was pretty much the case until you upgrade the system. Mr. Smith added that in this case, the quality or equipment and competition in that area keeps prices reasonable and the equipment is sound; it’s worth it to have the stability.
A motion was made by Commissioner Hancock, seconded by Commissioner Monaghan, and unanimously approved.
1. Manager Reeves informed the Commissioners of a request received to assist with providing irrigation to each of the topiaries going in downtown. He stated that in the past, the City had watered them by taking a water truck around. The equipment was purchased by the Festival, and they are asking for assistance with installation. He noted that Mr. Chapman and Mr. Ward looked into the cost and it can be done for about $500. Manager Reeves stated that would be done; the Commissioners were in agreement.
2. Manager Reeves presented a contract for renewal with Cornerstone in order to continue the Employee Assistance Program. He noted a cost of $4,500, with no cost increase since last year.
A motion was made by Commissioner Monaghan, seconded by Commissioner Hancock, and unanimously approved.
3. Mr. Barnett noted that Richard Gentry was at Brewer School setting up a display for Community Action Day. Mr. Warner expressed appreciation to Carlos Cometto, Ken Barnett, and all others who had helped put information together for the Site Certification Program for City Pond property and the Research Park. Mr. Chapman stated that they are looking to the SRF for another round of stimulus money; another couple of projects were identified that may qualify. The questionnaire would first be submitted to DHEC, they would make application only after determining we qualify. He explained that the SRF is a low-interest loan pool, with principal forgiveness, and is basically a loan you do not have to pay back.
4. Chairman Watts inquired about water bottling surveys. Mr. Chapman responded that information is slow in coming in; everything received thus far indicates a lot of interest in purchasing bottled water with the individual’s labels. He stated that he is still waiting on information from manufacturers on prices for machinery. Commissioner Monaghan suggested pricing out glass bottles. Commissioner Hancock noted a bottle that deteriorates; Mr. Chapman responded that he already had that information.
A motion was made by Commissioner Monaghan and seconded by Commissioner Hancock to go into Executive Session for a contractual matter. The motion was unanimously approved.
- With no further business, the meeting was adjourned.
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