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Commission Minutes
GREENWOOD METROPOLITAN DISTRICT
MINUTES OF THE
April 11, 2007
Regular Hearing
The regular meeting of the
Greenwood Metropolitan District Commission was held
Wednesday, April 11, 2007 at 3:00 p.m., in the Training Room
of Greenwood Metropolitan District Technical Service
Facility, 110 Metro Drive.
In attendance:
Commissioner Tim Burke
Travis Brownlee Paige Holley
Commissioner Bob Haynie
Daniel Clark Marsha Meyer
Commissioner Gene Hancock Wayne
Daniel Bill Moore
Commissioner Michael G. Monaghan Kevin
Fleming Steve Pohlman
Commissioner Henry Watts
Richard Gentry
Jay Reynolds
Richard Coleman
Gayle Grogan Sammy Robinson
George Martin
Roy Hemphill Brian
Waldrep
Marion Boone
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Chairman Haynie called the meeting to order and George
Martin gave the invocation.
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Chairman Haynie gave the statement of compliance with
the notification provision of the Freedom of Information
Act.
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Recognition of the Operations Challenge State Champion
Team
Mr. Martin introduced the
operation challenge team members: Jay Reynolds, Kevin
Fleming, Travis Brownlee, and Sammy Robinson. The members
briefly described each event. Mr. Reynolds described the
collection event which the team finished in first place. In
the collection event the team has to repair an eight inch
broken sewer pipe that has water flowing through it. They
also had to install a four inch service tap and set up a
wastewater sampler. The team performed this event in 3
minutes and 43 seconds. Mr. Fleming described the safety
event in which the team finished in first place. In the
safety event the team performed a confined space rescue.
The team simulated testing the atmosphere of a confined
space in which a co-worker had been injured. The team also
had to assemble a tripod which has fall restraints and
retrieval equipment, remove their co-worker and act as a
first responder for chemical exposure. The team performed
this event in 4 minutes and 52 seconds and was penalty
free. Mr. Brownlee described the maintenance event. In
this event the team responds to a pump station pump
failure. The team must check the fluid levels, change
filters and perform a vacuum test on the pump of the by-pass
pump. They must lock out and tag out the electrical
controls of the failed pump and connect the by-pass pump to
the pump station. The team performed the event in 11
minutes and 3 seconds and finished in first place. Mr.
Robinson described the laboratory and process control
events. The laboratory event features four individual
events and one team event. The individual events includes
calibrating a pH meter, calibrating a dissolved oxygen
meter, counting fecal colifom colonies on a Petri dish and
preparing a standard preparation solution. The team event
was microorganism identification found in wastewater. They
were not given the final time, but the team won first
place. The team found out that their time was 10 minutes
better than the second place team. The process control
event features a seventy five question exam that covers
various wastewater treatment processes and three scenarios
of problems that could arise at the treatment plant. The
team placed second in this event. The team won the Best Fan
Support Award and the Spirit Award.
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Commissioner Hancock made a motion to send the operation
challenge team to WEFTEC in October and Commissioner
Burke seconded. The motion was unanimously approved.
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Commissioner Hancock made a motion that the minutes from
the March 28, 2007 Regular Meeting be approved as
amended and Commissioner Watts seconded. The motion was
unanimously approved.
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Service Reports
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Collections Systems
Commissioner Monaghan
inquired if the grinder pumps could be rebuilt or repaired
instead of installing a new grinder pump. Mr. Martin
responded that we are looking into the possibility of
repairing the pumps. Mr. Daniel stated that over half of
the pumps replaced are no longer being manufactured.
Commissioner Watts inquired about what part wears out. Mr.
Daniel responded that the windings are what normally wear
out first. Metro is replacing the grinder pumps with a
better pump. Commissioner Monaghan asked about the decrease
in grinder pump customers. Mr. Daniel responded that the
information is provided to him by CPW. Mrs. Grogan
responded that CPW said the number could differentiate from
one month to another. Manager Coleman said that if the
water is cut off there is no grinder pump charge.
Commissioner Watts asked for a description of the problem on
Pelzer Street (picture in commission packet). Mr. Daniel
responded that a six inch sewer line runs under the addition
of the house. The sewer pipe was damaged just outside of
the addition. The line was repaired. Commissioner Watts
inquired if this is a sewer line that runs under the house.
Mr. Daniel responded yes it runs under the addition.
Commissioner Monaghan asked how Metro determined the line
was broken. Mr. Daniel responded that after a call from a
plumber, the camera was used to find the broken line.
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Engineering
Chairman Haynie inquired
about a picture that was taken on the Cokesbury Project
(tunnel under Sullivan Street). Mr. Waldrep responded that
the pipe is grouted around the bottom. Each end of the
tunnel is bricked up and air tight. Chairman Haynie asked
if there will be a penalty charged to Capsugel for the
Notice of Violation. Mr. Waldrep responded that normally
there is no penalty for a one-time violation. Normally a
penalty is charged to a repeat violator or to someone that
is not correcting the problem.
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I/I Abatement
Mr. Boone stated that he
feels his report speaks for itself, but the Maxwell Avenue
job is going very well. There have been limited
complaints. Chandler Construction has been working in some
instances twenty four hours a day.
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General Service Report Information
Commissioner Monaghan
inquired as to the total amount of payments to BP Barber
regarding the Geographic Information System (GIS). Mrs.
Grogan will send an email to Commissioner Monaghan regarding
the GIS payments to BP Barber. Mr. Martin stated that Metro
is very close to finishing the project. Commissioner
Hancock asked Mr. Moore about the request from Lander
regarding connecting the fountains to the sewer line. He
wanted to know how much flow would be added. Mr. Moore
responded that Lander was planning on filling the fountain a
couple times per year. The fountain holds an estimated
4,000 gallons. Commissioner Hancock inquired as to why they
do not connect to the sprinkler system. Mr. Moore responded
that they would need a pump to connect. Lander would rather
connect to the sewer system. Mr. Martin responded that he
believes Metro can handle the water with the recommendations
that there is a locked valve box and Metro is the only one
with a key. Mr. Moore stated that Lander is willing to pay
for this. Lander does not have a problem with Metro having
the only key. Manager Coleman stated that Metro wants the
charge to be included on a meter that already pays a sewer
charge.
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Financial Report
Commissioner Monaghan noted
that the interest income for last fiscal year was $964,000.
The interest expense on Metro’s long term debt from bonds
was $1,005,734.45. The cost of bonds only exceeds our
income by $40,000: $500,000 of the interest cost is paid
through taxes and not from our revenue. It is something for
us to think about. Commissioner Monaghan stated that only
$158,000 of the interest income came from the County’s
account. He also stated that not only is Metro paying for
their long term debt out of the interest revenue, they are
exceeding the cost of the long time debt revenue bonds out
of interest income. Commissioner Monaghan asked why is
Metro depleting their investment rather than going out for
more bonds, that’s something to think about. If it is only
costing us $40,000 to float all of those revenue bonds plus
it is even better than that because we are probably $400,000
more than it is costing us to float the revenue bonds in
income. Chairman Haynie stated that we should push as much
too… Commissioner Monaghan stated to long term debt rather
than coming out of our investments. He said that he and
Richard are not inline with that. Manager Coleman said
there is nothing wrong with that; we had a time getting to
the numbers. Manger Coleman responded that in general when
the bonds are rated they look at all of Metro’s financials,
long range plans, economic outlook, the unemployment rate,
etc. If you have no money in reserves, that would be
considered a negative. If you have too much money in
reserves, that would be considered a negative. Metro needs
to operate somewhere in the middle. As a governmental
entity you cannot over charge the users just to build up
your reserves and never do any improvements. You also
cannot build up your reserves and borrow money against it.
Manager Coleman stated that right now he thinks it is just
sort of a coincident that the numbers are pretty close,
because we have built up our reserves and we have made an
conscience effort the last couple of times we have gone out
for revenue bonds we knew the cost of the money was
relatively low compared to the historical differences. It
made more sense to borrow money instead of depleting our
reserves. Metro looked at this issue about a year and a
half ago when we were working on the long range financial
plans. The effort was to keep the reserves about where they
currently are for about three to four years, then deplete
toward the end of the eight or nine year period. Metro
still has the option of modifying this approach. Currently
Metro is borrowing more money than using the reserves.
Commissioner Monaghan stated that he did not understand why
Metro is depleting the reserves. He also wanted to know
what Metro has in outstanding debt. Commissioner Monaghan
stated that Metro is financing $20 million dollars in debt
at a cost of $40,000 a year. He would put up $40,000 if
someone would lend him $20 million. Commissioner Monaghan
expressed he did not understand and there must be a reason,
but he does not understand why Metro would want to build the
reserves up any more than what they are, but if they are
paying for our bonds why did we depleting it instead of just
issuing more bonds. Manager Coleman responded that the
financial plan was to keep the reserves about where they are
currently, and issue more debt. He also stated that towards
the end of that cycle Metro plans on using the reserves
more. Commissioner Monaghan stated that he still does not
agree with depleting them and did not then. Commissioner
Hancock stated that in the long term Metro will have the
money; we are raising rates every year. He said that we are
increasing income and we are making money on interest in
paying our debt off so, but we have so many sewer lines and
every thing to put in there; we got a way to put them in
sometime. Commissioner Hancock stated we are trying to get
them all in by 2011 and we are not going even going to come
close to getting all of the trunklines in by that time.
Commissioner Monaghan asked what does that have to with
this. Commissioner Hancock responded that you have to have
money to do that with. Commissioner Monaghan stated that
Metro could issue more bonds. Commissioner Hancock stated
that the $20 million is not enough money to install
trunklines. Commissioner Monaghan stated that if it is only
costing Metro $40,000 for $20 million of bonds why does
Metro not issue more bonds. Manager Coleman responded that
if Metro was to do that it would not balance, because you do
not have another $20 million invested; do you see what I am
talking about? Commissioner Monaghan responded no. Manager
Coleman noted that if you issue $20 million in bonds without
building up the reserves it would not balance. It would
cost you more interest on the bonds than what you are
paying, if you do not have a corresponding reserve in the
bank drawing interest. Commissioner Monaghan noted that
Metro is making over $400,000 off interest than what it is
costing Metro to finance the $20 million in bonds; why would
Metro not issue more bonds. Commissioner Monaghan stated he
does not understand that. Commissioner Burke asked if when
the bonds were issued, would they be issued at a lower
interest rate than is currently earned. He stated that if
Metro reissued bonds the interest rate will be higher than
what we currently have. Commissioner Monaghan stated that
it is true. Commissioner Burke stated that the interest
rate that Metro is receiving on their income money is going
to balance more with the bond interest money. Commissioner
Monaghan stated Metro has $400,000 more a year to work with
and it is paying it out of our bonds. Manager Coleman
responded that it is paying for this amount of bonds and if
we issued more bonds it will not pay for them. Commissioner
Monaghan stated that it will. Commissioner Monaghan asked
what is Metro going to use the other $400,000 for. He
stated that it is only costing Metro $40,000 today; is it
going to cost Metro another $360,000. Manager Coleman
responded that it is unusual for the amounts to balance
because of the amount of reserves and the amount of debt
Metro has. If you just issue more debt, without having an
equivalent amount of reserves it will not balance.
Commissioner Monaghan stated that he does not understand it,
but we can talk about it. He does not understand where the
other $400,000 is going. Manager Coleman stated that he
does not understand the question. Commissioner Monaghan
stated that it is only costing Metro $40,000 now and $.5
million is coming from tax money, so it is over $480,000
above the cost of our revenue bonds that are not coming from
tax collections. Any money that was paid from tax
collections was deducted. The principle and interest cost
is coming from tax money on GO Bonds. Commissioner Monaghan
stated that he only looked at revenue bonds. The long term
debt was $1.5 million, but $500,000 was paid out of taxes.
Therefore it only cost Metro $500,000 for revenue bonds and
the interest income was $964,000. Commission Monahan stated
that we should think about not spending out of that…
Chairman Haynie stated that we had a chart of our long term
projection of our revenue and tax bonds; we need to revisit
that. Commissioner Hancock stated that we did decide to
hold on to our capital and borrow as much as we could start
with. Manager Coleman responded that is in the mode we are
in right now, but should the financial climate change we
could modify that. That is what we are doing now.
Commissioner Monaghan said that was a concession because the
first few years you are not going to, but then the plans
says we are going to deplete and that is what I am talking
about. Commissioner Hancock stated that it is graph out
when you are supposed to use the capital. Commissioner
Monaghan stated that he knows, but he just does not want to
do it. Manager Coleman stated what we can do with the
financial model is go back and look at if we just borrow
money and never touch what the rates would be and then if we
used up all of our reserves and borrow as little money as
possible. We picked the route in between is what we did.
Chairman Haynie stated we will revisited that and rediscuss
it. Commissioner Monaghan asked for the staff to look at
this situation over the next few weeks.
VIII.
Recommendation for awarding the bid for the New Haven
Replacement Line
Commissioner Hancock made a
motion to award the bid to the low bidder Chandler
Construction Services for the amount of $44,483;
Commissioner Watts seconded, and the motion was unanimously
approved.
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Consideration of a Resolution to allow GMD to own and
operate alternative sewer systems district wide
Mr. Hemphill referenced the
last paragraph, where it refers to the monthly charge. He
initially had it where it would be reviewed annually by
Metro; that was taken out. It now says that it would be
reviewed be Metro. Mr. Hemphill stated that he would add
that it would be periodically reviewed. Commissioner Watts
referenced the fourth paragraph. He asked if the property
that Metro is considering meets those requirements. Mr.
Hemphill responded that the pumps will be in the lowest area
in a particular lot. DHEC is requiring that these owners to
have it and per DHEC’s regulations it is required that a
public entity own and operate them. Commissioner Burke
inquired if there was a public hearing for Stoney Point.
Mr. Martin responded that there was a public hearing. The
public hearing for this will be held on Wednesday, May 23,
2007 at 5:00 pm at the CPW – Metro Administration Building.
Commissioner Hancock made a
motion for Metro to adopt the resolution to allow Metro to
own and operate alternative sewer systems district wide,
Commissioner Burke seconded, and the motion was unanimously
approved.
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Recommendation for an engineering firm to design the
City Pond Project
Chairman Haynie inquired as
to what will be the timeline for this project. Mr. Martin
will send out a timeline to all Commissioners via email and
regular mail.
Commissioner Watts made a
motion to allow Genesis Consulting Group to design the City
Pond Sewer Line Project; Commissioner Burke seconded, and
the motion was unanimously approved.
XI.
Recommendation for an engineering firm to design the
72 Inch Wilson Creek Influent Pipe Project
Chairman Haynie asked for
staff to explain this project. Manager Coleman responded
that Krah is a new pipe manufacturer that is coming to
Greenwood. They will be manufacturing the large pipe and
may be willing to make some concession on the cost of the
pipe. Metro is not sure if they intend to completely give
us the pipe or to give it to us at a reduced rate. The
Influent Pipe Project was planned for next fiscal year. The
estimated cost in the long range plans is $3 million.
Manager Coleman stated that he was guessing that it would be
around $200 per foot. He estimates the cost to be around $1
million if the pipe is donated, but that we have worked out
the details. Metro has spoken to Design South Professionals
regarding designing the project. They are proposing to
design the pipe for a fixed fee. At some point the project
may be bid and then you will have future construction
management cost. Metro wants to be ready with the design
when Krah is ready to manufacture the pipe. Chairman Haynie
asked if this would be used as a demonstration type
project. Mr. Martin responded yes it would. Commissioner
Monaghan stated that Metro will have to do this even if they
do not receive the pipe for free. Commissioner Monaghan
inquired if these rates are comparable with other
engineering firms. Manager Coleman responded that they
were.
Commissioner Monaghan made a
motion to allow Design South Professionals to design the 72”
Wilson Creek Influent Pipe Project; Commissioner Watts
seconded, and the motion was unanimously approved.
XII.
Palmetto Utility Protection Service Membership
Information
Commissioner Monaghan made a
motion for Metro to join Palmetto Utility Protection
Service, Inc. for $193 per month; Commissioner Hancock
seconded, and the motion was unanimously approved.
XIII.
Contribution to adjust insurance reserve balance
Commissioner Monaghan made a
motion to add $22,636.31 (Metro’s portion) to the insurance
reserve fund; Commissioner Watts seconded, and the motion
was unanimously approved.
XIV.
Proposal to review design manual
Commissioner Monaghan noted
that Metro needs to make sure CDM is aware of why Metro
wants them to review the design manual. He stated he is
interested in the practical use of the manual. He would
also like to know if it is cost effective to have the
specifications at a certain level where they give Metro a
quality product, but not an overly expensive quality
product. Mr. Martin responded that he believes the first
sentence answers his question. CDM is going to review the
manual on the industry wide basis not Metro’s
specifications. Chairman Haynie stated that is what he
understood them to do. Commissioner Monaghan stated that it
is not clear enough. He wants them to see if it is a cost
effective technical manual that delivers a quality product.
Mr. Martin responded that he will get that in writing to CDM.
Manager Coleman stated that he wrote down the following key
words “cost effective design standards”. Chairman Haynie
appointed a sub-committee (Commissioner Tim Burke,
Commissioner Michael Monaghan and George Martin) to work
with CDM on reviewing the design manual. The committee will
meet on Thursday, April 19, 2007 at 1:00 pm following the
industrial awards lunch.
XV.
Value of the GMD Portion of the Administration
Building
Chairman Haynie stated that
he had requested a timeline to be presented at the meeting.
He reminded the Board that Metro said that they would take
action to set a sell price of Metro’s portions of the
administrative building at this meeting. Manager Coleman
stated that as far as a timeline he is estimating six months
for design both internally and externally. It may take a
year to build. Chairman Haynie stated that he would like
for a Metro commissioner to make the motion. Commissioner
Hancock stated that all commissioners are a Metro
commissioner. Mr. Hemphill stated that when selling real
estate, the agreement will need to be in writing. Chairman
Haynie directed Mr. Hemphill to prepare an agreement
regarding the sell.
Commissioner Hancock made a
motion to sell CPW Metro’s portion of the administrative
building for the sell price of $600,000 with the assumption
that Metro can use the space until their building is
completed; Commissioner Monaghan seconded, and the motion
was unanimously approved.
XVI.
Commissioner Monaghan inquired about the Bailey
Circle Project and whether Metro is ready to take over the
completion of the project. He also asked if Metro has
written the contractor notifying him of his obligations.
Mr. Martin responded that Metro has written the contractor.
There are only some grass issues remaining.
XVII.
Commissioner Monaghan directed staff to look into
obtaining front license plates with GMD on them and to make
sure all vehicles that are required to have GMD logos on the
doors have them.
XVIII.
Commissioner Monaghan made a motion to go into
Executive Session to discuss a contractual matter;
Commissioner Hancock seconded, and the motion was
unanimously approved.
XIX.
The meeting returned to open session. No action was
taken during executive session.
XX.
Commissioner Watts made a motion to approve the
proposal from September 27, 2005 from Davis and Floyd for
architectural services for the expansion of the Technical
Service Facility; Commissioner Monaghan seconded, and the
motion was unanimously approved.
XXI.
Manager Coleman handed out a draft budget for the
Board to review. The summary sheet does not contain capital
projects. Manager Coleman reminded the Board that in 2003
the Board adopted the current capital projects. The staff
has revised the projects with updated estimates and a new
column called grant projects. Commissioner Monaghan
inquired if the Board will receive a new book. The long
range financial plan if you take the first three rows that
matches the old numbers. If you use the new numbers, Metro
is about $12 million short over the next five years.
Manager Coleman said if Metro borrows the $12 million, the
rates will need to be about 9.5% higher than what is
projected. Commissioner Monaghan stated that he does not
understand. Manager Coleman stated that Metro will have to
pay $950,000 more each year for debt retirement that is not
in there. Commissioner Monaghan stated that he understood
that, but he understands that Metro is more than making it
up on investment income. Manager Coleman responded that
Metro will not have $950,000 more investment earnings.
Commissioner Monaghan stated that he does not think Metro
needs that. He does not understand why Metro will need a
rate increase. Manager Coleman stated that Metro will have
to match the money with the projects or match the projects
with the money. The Board may need a work session on
capital planning as it relates to rates. Commissioner
Monaghan inquired that with all of this financial
information does Metro needs a CPA or somebody like that on
staff to help us. Commissioner Monaghan stated that he
thinks Metro should hire a CPA. Chairman Haynie stated that
is a matter for budget discussion. Manager Coleman stated
that he does not believe that will take the place of
Greenwood Capital managing the investments. Commissioner
Watts asked if Metro is looking for an engineering firm to
replace Frazier. Mr. Martin responded that the Board has
approved two firms for current projects. Mr. Martin stated
that staff will come back to the Board to have a select
group of engineering firms make a presentation.
Commissioner Burke asked what was the method to determine
which project should be completed first. Mr. Martin
responded that it was determined by Metro’s regulatory
exposure. He stated that the Board has directed staff to
seek grant projects, trunkline extension, and a
rehabilitation program for the existing pipes.
XXII.
Commissioner Monaghan inquired about the status of
the Legislation Bill. Manager Coleman responded that it was
in the judicial committee yesterday.
XXIII.
With no further business, the meeting was adjourned.
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