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Commission Minutes
GREENWOOD
METROPOLITAN DISTRICT
MINUTES OF THE October 10, 2007
Regular meeting
The regular meeting of the
Greenwood Metropolitan District Commission was held
Wednesday, October 10, 2007 at 3:00 p.m., in the Training
Room of Greenwood Metropolitan District Technical Service
Facility, 110 Metro Drive.
In attendance:
Commissioner Bob Haynie,
Chairman
Richard Coleman Paige Holley
Commissioner Byron Smith,
Vice Chairman George Martin Marsha Meyer
Commissioner Gene Hancock,
Secretary Marion Boone Jamie Peeler
Commissioner Michael G.
Monaghan
Daniel Clark Steve Pohlman
Commissioner Henry
Watts Wayne Daniel
Brian Waldrep
Commissioner Tim
Burke Roy Hemphill
I.
Chairman Haynie called the meeting to order and Mr.
Martin gave the invocation.
II.
Chairman Haynie gave the statement of compliance with
the notification provision of the Freedom of Information
Act.
III.
Commissioner Monaghan made a motion that the minutes
from the September 12, 2007 Regular Meeting be approved as
mailed and Commissioner Hancock seconded. The motion was
unanimously approved.
IV.
Financial Report
Manager Coleman said the
rates and bond will be discussed under the financial plan
part of the meeting. Commissioner Watts inquired if the
sewerage income increased. Manager Coleman responded there
is no new information since the last meeting. Commissioner
Monaghan pointed out that according to the last financial
statement the sewer revenue is about the same as last year.
He said there is around $60,000 difference. Manager Coleman
noted Metro had a rate change since last August.
Commissioner Monaghan said Metro had $1,628,038 this August,
and last August Metro had $1,687,417. Manager Coleman said
Metro should be 8% ahead of last year to be equal with last
year’s amount. Commissioner Monaghan noted that spending is
down this year so Metro should be alright. Commissioner
Monaghan said as he sees it the revenue is about the same as
last year and the spending is down compared to last year.
Manager Coleman said Metro is trying to increase the rates
so they can take on the new debt from the new bond. He said
being the same is not good; Metro should be ahead. Chairman
Haynie said Metro is supposed to be 8% ahead from last
year. Commissioner Monaghan said he knows, but if Metro’s
spending is down why would they need to be 8% ahead.
Manager Coleman said the net between the two is not as big
as it should have been. Commissioner Monaghan said it is
not an overwhelming crisis. Chairman Haynie and Manager
Coleman both stated it is something that Metro needs to
watch. Commissioner Watts inquired where were monies
recorded for a pretreatment violation. Manager Coleman
responded they are recorded in other income.
V.
Service Reports
a.
Collection System
Commissioner Monaghan
referenced page 15, a service call for Country Homes, which
had a service line Sanitary Sewer Overflow (SSO). Mr.
Daniel said the customer’s service line was stopped up
before the connection to Metro’s line. Metro makes a
notation of all overflows no matter who is responsible.
Chairman Haynie noted the low pressure system maintenance
cost seems to be getting better. Mr. Daniel responded from
what he understood from the last meeting Metro is to record
the start-up cost separately. Metro has spent $41,000 from
June 2006 to December 2006 identifying and location of
system components. Commissioner Monaghan commented the
operations and maintenance cost look very good. Mr. Daniel
said he will continue to keep track of all expenses.
Commissioner Watts asked why the collections amount is an
odd number when the billing amount is always an even
number. Manager Coleman explained how the payments are
distributed. Commissioner Monaghan inquired if the grinder
pump fee rate was increased by 8% under the proposed rates.
Manager Coleman replied the grinder pump fee rate was not
included as a part of the rate study.
b.
Engineering
Chairman Haynie noted there
were a lot of violations. Mr. Waldrep said none of the
violations were considered major violations. The new
permits are in effect and the monthly averages are lower
than they have been. Metro does not expect any of the
industries to be a repeat violator.
c.
I/I Abatement
Commissioner Monaghan asked
for more detail on the report. He would like to know who is
paying for each project, a description of each project, and
who are the sub-contractors for each project. Commissioner
Monaghan asked if the grant money that was left over from
another project could be used for the electrical problems on
the LMI Grant Project. Mr. Martin said Metro did have money
left over on the Oregon Street Grant Project, but the money
was given to the Oregon Street Streetscape Project. Metro
was not allowed to transfer the money towards the LMI Grant
Project. Mr. Martin said all of the electrical issues will
be included in the grant monies. Mr. Boone said some of the
electrical boxes will need to be upgraded in order for the
pumps to be connected. The grant has a maximum of $500,000
and any overages will be at Metro’s expense. The electrical
box upgrade is handled through the grant and it is not at
Metro’s directive. Commissioner Monaghan asked for more
information of the smoke test performed at Lander
University. Mr. Boone replied Metro had to abandon old
lines at Lander University that connected to the Cambridge
Avenue Project. Metro performed a smoke test at Lander to
ensure all roof leaders (gutters) were abandon. Metro
determined the roof leaders were not connected. If the roof
leader had been connected, Metro would have asked Lander to
remove them. Commissioner Monaghan inquired if the roof
leaders were connected to the sewer system before they were
abandoned. Mr. Boone replied in this instance they were not
connected.
d.
Maintenance
Mr. Clark informed the Board
that all Omni sites had been installed at each pump station.
e.
West Alexander
Chairman Haynie asked for
clarification on the letter from DHEC regarding the
macroinvertebrate stream assessment sites being impaired.
Mr. Peeler responded that was an internal letter from DHEC.
The letter was saying the stream is considered impaired by
DHEC. Commissioner Monaghan asked for Mr. Peeler to define
“impaired”. Mr. Peeler said the invertebrate life is
comprised in the stream. Basically there are not a lot of
“creatures” in the stream above or below the West Alexander
discharge point. Mr. Peeler said DHEC will not say this was
not caused by Metro and that Metro does not need to do this
test. Mr. Peeler stated that the macroinvertebrate
assessment tells DHEC nothing. Commissioner Monaghan asked
for a definition of invertebrate. Mr. Peeler said any
organism that does not have a spine (i.e. crawfish,
dragonfly, bugs, nymphs, lava, etc.). DHEC has to do the
assessment in eight man hours. Normally DHEC will bring
multiple people and space them throughout the stream. The
people will look for the invertebrates and collect samples.
After the collection, DHEC classifies the invertebrates
according to how high the existing form of life is in the
stream. Different forms of life determine the health of the
stream.
f.
Wilson Creek
No questions were asked
concerning this department.
g.
General Service Report Information
The Commission congratulated
the Operations Challenge Team for finishing fourth in the
New Jersey Operations Challenge Event. Commissioner Watts
inquired on the status of the expansion to the Technical
Services Facility (TSF) Building. Mr. Martin said Metro is
to receive the drawing November 1st.
Commissioner Hancock said he has talked with Davis and Floyd
and they are to expedite the plans.
VI.
Action Items
a.
Consideration of Contract for City Pond Project
Commissioner Monaghan said it
seemed like emphasis for the pipe size was based on the
potential of the City Pond area, but the long range plan
extends that line to other areas. He asked if the
preliminary engineering report included future expansion.
Mr. Martin said it is accounted for in the report.
Commissioner Monaghan asked if Metro was pleased with the
recommendations. Mr. Martin responded yes Metro is
pleased. Commissioner Monaghan said we had a proposal for
1,000 homes in that area. Mr. Martin said an 8” line could
serve 1,000 homes. Commissioner Monaghan commented normally
the Board does not receive a Preliminary Engineering Report
(PER). Mr. Martin said that was correct, but for this
particular case Metro required a PER. Commissioner Monaghan
asked if Metro was pleased with the PER. Mr. Martin
responded they are very pleased. Mr. Martin said Metro will
need to have Mr. Hemphill’s comments on the contract and to
have the Board’s approval of the contract based on Mr.
Hemphill’s recommendations. Commissioner Monaghan commented
the proposed contract is in the engineer’s favor. Mr.
Hemphill said it was not in the engineer’s favor anymore
than he would expect. Mr. Hemphill referenced page 5 or 8,
paragraph B, as a limitation of liability paragraph that
should be removed.
Commissioner Watts made a
motion to award the design contract for the City Pond
Project subject to the changes on the limitation of
liability; Commissioner Hancock seconded, and the motion was
unanimously approved.
VII.
Miscellaneous Administrative Matters
a.
Report from the Partnership
Commissioner Monaghan
reported that he and Chairman Haynie are on the finance
committee. Commissioner Monaghan no longer signs the
checks, but he still reviews the checks. Commissioner
Monaghan said he does not feel comfortable with the
Executive Director signing checks over a certain amount of
money. Chairman Haynie said there are a lot of positive
projects to come.
b.
Commissioner Monaghan inquired if Metro has spoken
with Mr. Timms. Mr. Martin replied no. Commissioner
Monaghan noted Mr. Timms is building more buildings.
c.
Commissioner Monaghan asked if the Board is going to
be present at any of the meetings with CDM and Davis and
Floyd. Manager Coleman said there has only been one meeting
and it was for the first part; the rest has been written
communication between the two. Manager Coleman forwarded
information to the Board last week from CDM and Davis and
Floyd. Commissioner Monaghan asked for Manager Coleman to
resend him the information. Mr. Martin made copies of the
email for the Board.
d.
Commissioner Monaghan inquired on the status of the
trailers. Manager Coleman said Metro was instructed to talk
to the Legislation Delegation. Commissioner Monaghan said
they had asked CPW to provide Metro with a bill of sale.
Commissioner Burke stated the bill of sale is not the
problem; it is the Certificate of Origin. Mr. Martin said
he spoke to Senator O’Dell and he said if it is the law,
Metro has to follow the law. Commissioner Hancock stated
one trailer originated at CPW and the others at Chandler.
Mr. Martin said there was never a bill of sale because it
was included in the construction projects. Commissioner
Hancock said they can make a bill of sale. He said the
origin would be Chandler and CPW. Manager Coleman said the
origin is the manufacturer. Commissioner Watts inquired if
the trailers had a VIN number. Mrs. Holley replied Metro
has the VIN numbers and serial numbers for the trailers, but
they do not have the Certificate Of Origin. Commissioner
Burke said the trailers cannot be registered without the
Certificate Of Origin. Commissioner Watts asked if the
Certificate Of Origin is the company that made the trailer.
Mr. Martin said the Highway Department is saying without the
Certificate Of Origin there is no way to prove the trailers
were not stolen. Commissioner Monaghan asked to have a copy
of a Certificate Of Origin emailed to the Board.
Commissioner Burke said it is the weight of the trailer.
Mr. Martin said if Metro was to purchase the used trailers,
Metro could still utilize parts from the old trailers.
Commissioner Burke said for boat trailers the Certificate Of
Origin has the VIN number and the manufacturer.
Commissioner Monaghan inquired why can’t Metro make up a
Certificate Of Origin. Mr. Hemphill said Metro needs to
make sure the VIN number is listed on the insurance policy.
Manager Coleman said Metro has them listed on the insurance
policy. Commissioner Monaghan asked for staff to see if
there is something else that can be done to help acquire a
tag for the trailers. Mr. Martin said staff has tried
everything they know to do. Metro has been working on this
for a long time. Commissioner Burke asked if Chandler was
not working with Metro on this. Manager Coleman said
Chandler does not keep records past 5 years. Commissioner
Monaghan said the purchasing agent for Chandler may remember
where they bought the trailers. Commissioner Burke asked if
Chandler could issue an Affidavit Of Ownership. Mr.
Hemphill said an Affidavit Of Purchase. Commissioner Burke
said an Affidavit Of Purchase from Chandler saying they
purchased the trailer from X manufacturer and gave the
trailer to Metro. Mr. Martin said staff will look into the
Affidavit Of Purchase.
e.
Commissioner Monaghan inquired about the monthly
distribution cost for biosolids. Mr. Martin said Mr. Peeler
handed out a scoring system on how Metro determines what
property will receive the biosolids. Mr. Martin said Mr.
Peeler had the information, but it was not asked about in
the service reports. Commissioner Monaghan asked for the
information to be presented at the next meeting. Manager
Coleman said he believes the cost was $38.28 per ton.
Chairman Haynie asked if this was only the transporting
cost. Manager Coleman said it was the total cost. Metro
has a processing cost for chemicals, power, hauling and
spreading. Commissioner Monaghan said distribution to him
is hauling and spreading only. Manager Coleman said Metro
was comparing that cost to the Landfill cost. The landfill
is a tipping fee and Metro has to prepare the biosolids;
Metro only eliminates the spreading cost when using the
landfill. Manager Coleman said the distribution cost will
be emailed to the Board. Mr. Martin said Mr. Daniel
provided them with the hauling cost. Manager Coleman said
Mr. Peeler did offer him a copy of the information, but he
asked Mr. Peeler to give him a copy when he (Mr. Peeler)
gave the Board the information. Commissioner Hancock asked
staff to find out what Ninety Six is going to do with the
land application of biosolids. Manager Coleman said Metro
looked into this when the West Alexander upgrade was
planned. At that time Metro needed 1100 acres to apply on;
that is not including the buffer and places where Metro
could not apply. Commissioner Burke said Ninety Six is
using that in hopes to receive supplemental discharge
capacity. The discharge stream cannot accept anymore so
that would be supplemental to the stream for gray water
discharge.
f.
Commissioner Monaghan inquired if Metro was going to
discuss the Long Range Capital Plan. Mr. Martin said that
item will need a separate meeting.
g.
Commissioner Burke inquired about the problem at
Folly Bend. Mr. Martin explained the situation. Metro
received a call Monday that the sewer line was overflowing.
Upon arriving Metro found the sewer line was full of red
mud. Metro relieved the stoppage which took about 1 ˝
days. After some investigation Metro found out there is a
manhole going down the hill that either had a stub-out not
capped or the manhole had a plug in it. The water from the
storm detention pond came down and made a hole right near
the manhole. All of the water was entering the hole
following the gravel in the sewer line. The water made its
way into the sewer line through the open stub-out.
Commissioner Burke asked whose line is it. Mr. Martin
replied the line belongs to Metro. Chairman Haynie asked
who was the developer. Mr. Martin responded Howard Corley.
Mr. Corley is going back and forth between Mr. Chandler and
Mr. Anderson. Mr. Anderson did the pond; Mr. Chandler
installed the sewer lines. Commissioner Monaghan asked who
paid to have the sewer line installed. Mr. Martin responded
Mr. Corley paid to have the lines installed. Mr. Corley
hired Mr. Chandler and Mr. Anderson, Metro did not hire
them. Commissioner Monaghan asked how did the red mud get
into the sewer lines. Mr. Martin said the mud is just
slurry in the water. Commissioner Burke asked if the lines
belong to Metro, and how can Metro ask Mr. Corley to pay for
cleaning the line. Mr. Martin said the stub-out was not
properly capped. Commissioner Monaghan asked who owns the
stub-out. Mr. Martin replied Metro owns them. Commissioner
Watts inquired if Metro had taken care of the open
stub-out. Mr. Martin responded yes the stub-out is now
properly capped. Chairman Haynie said Chandler installed
the lines and turned the lines over to Metro, but did not
properly cap the stub-out. Manager Coleman said Metro
accepted the lines and Metro inspected the lines.
Commissioner Monaghan said he thinks Metro may have to
absorb the cleaning cost. Commissioner Monaghan asked what
other issues had the problem caused. Mr. Martin asked who
is responsible for the problem. He said there will be some
major money spent to fix the issue. Commissioner Burke
asked if there is a rain event in excess of a few inches,
will the line overflow again. Mr. Martin replied no, Metro
has properly plugged the stub-out. Manager Coleman said it
sounds like there is enough velocity to carry the water and
dirt until it reaches the flatter line, then the dirt
settles in the line. Mr. Martin said the line goes straight
down hill toward the golf course. Mr. Martin has spoken
with Mr. Corley regarding this; somebody will need to fix it
permanently when they fix the hole. Commissioner Hancock
said the sewer line will also need to be fixed. Mr. Martin
said yes. Commissioner Hancock asked if Metro has accepted
that line. Mr. Martin responded Metro has accepted all of
the lines. Mr. Martin reminded the Board of the past issues
with Folly Bend concerning rights-of-way. Metro informed
the Board at that time about the rights-of-way being
encroached upon with power lines and gas lines. The Board
responded that Metro should call Palmetto Utility Protection
Service before they dug. Metro cannot get to some of the
houses because fences have been installed; the sewer line
goes in between the houses. The homeowners built a wooden
fence to keep from seeing the retention pond. This is why
Metro brings the issue to the Board before a house is
built. Commissioner Hancock said the pond and rain is what
caused this problem. Mr. Martin said the original design
was the retention pond would send water through a wooded
area. At some time somebody came up and turned the water
across the sewer rights-of-way; had the water not been
turned to go across the right-of-way this problem would not
have happened. Mr. Martin said Metro has TVed the sewer
line and the line is intact. Commissioner Burke asked if
anything else needs to be done to the sewer line. Mr.
Martin said the stub-out still needs to be capped.
Commissioner Burke inquired who is responsible for capping
the stub-out. Mr. Martin replied he thinks Folly Bend
should cap the line. Metro has a plug in the line so
nothing can get in. Commissioner Burke said he thinks a
misunderstanding has occurred and more work may need to be
done on the sewer line. Commissioner Burke asked if anybody
else can do work on the sewer line after Metro has accepted
the line. Mr. Martin said people can do work as long as
they have Metro’s permission. Commissioner Hancock inquired
if the sewer line needed to be repaired. Mr. Martin said
Metro has TVed the line and the line is still on grade.
Metro does know if the gravel bedding has been washed out
from under the pipe. Commissioner Hancock stated Metro does
not know how long the sewer line will stay on grade.
Commissioner Smith wanted to know how long the sewer plug
will hold. Mr. Martin said Metro has secured the plug.
Chairman Haynie asked if somebody is going to have to dig
the line up to fix the bedding. Mr. Martin said nobody
knows until the ground is opened up. Commissioner
Burke asked if Metro has already accepted the line and the
one year warranty has expired, and how can Metro make the
contractor go back and fix the line once Metro accepted it.
Mr. Martin responded he believes the storm drain lines and
detention pond caused the problem. Manager Coleman said it
sounds as though the storm drains were not installed
according to the plans. Commissioner Burke stated the
detention pond damaged the sewer line. Mr. Martin agreed
with that statement. Commissioner Hancock noted that needs
to be corrected. He said the contractor had the storm drain
lines where they would flow out into the woods. Mr. Martin
said it was piped and there was a natural drainage ditch
right by a creek. He said it was put in right originally.
Mr. Martin said somebody changed it to go across the
right-of-way.
h.
Mr. Martin reported he received a call from Mr. Sam
Leman. Mr. Leman would like for Metro to provide an
Environmental Information Document (EID) in order for the
County to recoup some of the funds they invested into the
Lake Shores Phase 2 Project. This would cost Metro $3,000
to $5,000. Commissioner Monaghan asked if the County will
pay for this. Mr. Martin replied the County wants Metro to
pay for it. Chairman Haynie said if the County wants to
reimburse Metro for the cost to provide the document then he
sees no reason why Metro cannot provide the document.
Manager Coleman said the County agreed to pay Metro $900,000
over time ($72,000 a year); this is the money the County is
trying to get back. Chairman Haynie suggested for the
County to contract with Mr. Frazier to provide the
information.
i.
Mr. Martin handed out a letter Metro received from
Edgefield County Water and Sewer Commission. The letter
thanked Metro for helping them with a sewer problem.
j.
Commissioner Hancock reminded the Board of the
meeting regarding Eagles Harbor. He said the County
requested the meeting. Commissioner Monaghan said when the
County requests Metro’s presence at a meeting; the County
Manager should contact Metro’s Manager. Commissioner
Hancock said he took the request as for Metro’s
Commissioners not CPW’s Commissioners. Commissioner Watts
said they asked CPW to attend. Manager Coleman said he
thought the request came from a County Council member. He
reminded the Board of the meeting with DHEC in July and they
were to have a follow-up meeting in two or three weeks.
Manager Coleman believes this is the follow-up meeting.
Chairman Haynie asked for Manager Coleman to give a report
to the Commissioners that cannot attend the meeting.
Chairman Haynie reminded the Board that Eagles Harbor is not
in Metro’s District. Commissioner Burke asked if Metro has
any information on the Homeowner Association suing DHEC and
DHEC’s insurance company’s willingness to pay for some of
this. Commissioner Hancock said DHEC told Eagles Harbor
that all of the lots would perk, but not all of them will.
Commissioner Hancock wanted to know what DHEC said when
Manager Coleman met with them last July. Manager Coleman
said DHEC right now will not commit to anything other than
they know the legislation has appropriated $990,000 for the
problem. DHEC is looking to the Homeowners Association to
install the collection system. Metro is talking about
having to install a pump station in the Virgin Heights area
with an estimated cost of $850,000. Metro will not take any
action until Eagles Harbor annexes into the District and
shows Metro how they are going to connect to the pump
station at Highway 254 and Highway 246. Commissioner
Hancock asked if Eagles Harbor will install a collection
system and pump the wastewater back to the pump station.
Manager Coleman replied it will be a grinder pump system
with a force main to a pump station at their entrance. He
said he thought it may take two more pump stations to get to
the Metro pump station.
k.
Manager Coleman informed the Board that Metro had a
meeting yesterday with the attorney, bond attorney and the
financial advisor regarding the bond issue. The rating for
the bond is scheduled for November 13th or 14th.
Metro is looking at financing this project with bonds
approximately $30 million instead of $20 million and it
looks like the same rate structure will work. There may be
a problem with the first year, but the financial advisor was
going back to look at this. Metro had anticipated having
the cost of the project known and that has been pushed back
to December 5th. The topic of the discussion
yesterday was whether or not to price the bonds after Metro
knows the price of the project. Metro will probably price
the bonds around January 9th and receive the
money around January 23rd. Metro would not be
spending the money until February. Commissioner Monaghan
asked if this would be for all phases or just Phase 1B.
Manager Coleman responded it will be for Phase 1B only.
Commissioner Monaghan said he did not understand. Manager
Coleman said the Long Range Plan was set up to obtain bonds
every 2 years; $20 million this year, two years later $15
million and two years after that $10 million. Commissioner
Monaghan said Phase 1A was $8.2 million and now Metro is
saying they are going for $30 million; that is almost $40
million. He thought the whole project cost including all
phases was around $40 million. Manager Coleman said the
whole project was around $46 million. Commissioner Monaghan
inquired on why Metro needed $30 million for phase 1B.
Manager Coleman replied that is the anticipated cost amount
for phase 1B. Commissioner Monaghan stated the cost for
Phase 1A and Phase 1B is almost the entire projected cost of
the project. Commissioner Watts asked if Phase 1B is the
biggest phase. Manager Coleman said Phase 1B is the biggest
phase; the equalization basins cost on average $5 million
and the last BNR will cost around $5 million. Commissioner
Monaghan said Phase 1A cost $8.2 million, Phase 1B is $30
million so what is the cost for the other phases. Manager
Coleman said both Phase 2 and 3 are anticipated to cost $5
million each. Commissioner Monaghan asked how much was
anticipated for the cost after phase 1B. Commissioner Watts
responded $8 to $10 million. Commissioner Monaghan said
Metro is now talking a total cost of $48 million. Manager
Coleman replied yes, but $2.2 million was from Phase 1A.
The estimates have been revised but they may need to be
revised again after Metro receives the bids for Phase 1B.
Commissioner Hancock inquired about the capacity upgrade.
Manager Coleman said after the final phase Wilson Creek will
still be an 18 million gallon a day (MGD) plant. He noted
after Phase 1B Wilson Creek will still be a 12 MGD plant.
Commissioner Monaghan asked if the 6 foot pipe is included
in the cost. Mr. Martin said that cost is not included.
Commissioner Hancock inquired on what Metro needs to do to
the permit to become a 20 MGD plant. Manager Coleman said
Wilson Creek will become an 18 MGD plant after Phase 3 in
2017.
l.
Advertisement for Rate Increase
Manager Coleman said the
Board needs to decide on what rate structure they want to
advertise in the newspaper. Either rate structure has to be
8% more money. Manager Coleman asked if the Board wants to
hold the meter charge the same and go up on the volumetric
charge anywhere from 11% to 13%. Chairman Haynie said he
thought the Board was in consensus to increase both rates to
8%. Commissioner Monaghan said he thinks the meter charge
rate is regressive when it comes to residents. He said it
is a bigger percentage of a low income household than the
medium or higher income household. Commissioner Monaghan
said this whole thing started in 2000 with the flat CMOM
charge. Commissioner Hancock pointed out that is when Metro
started to maintain the sewer system. Commissioner Monaghan
said Metro went from the flat $8 CMOM charge to the basic
facility charge of $8.45 and then to the meter size charge
in 2007. Commissioner Monaghan wanted to know how much
money does Metro receive from the resident meter charge with
the 8% increase. Manager Coleman handed out information on
how much money Metro will receive from the straight 8%
increase for residential, commercial and industrial for both
meter and volumetric charges. Commissioner Monaghan said he
wants to know what the 8% increase represents on
residential. Manager Coleman responded $51,000 more
dollars. Commissioner Monaghan stated he thinks Metro
should freeze the residential base meter charge. He said
this rate is affecting people that live in the mill
villages. Commissioner Monaghan said residential users are
different from commercial and industrial users.
Commissioner Burke asked how much more money per residential
user is Metro talking about. Manager Coleman replied $.64.
Chairman Haynie said nothing is ever static. Commissioner
Monaghan stated Social Security and fixed income is static.
He said the little old lady in the mill village is static.
Chairman Haynie said all of those are given a cost of living
adjustment each year. He said Metro talked about an 8%
across the board increase. There are a lot of agencies to
help people and Metro is trying to run a utility business
based on the rates. Commissioner Monaghan said he did not
know Metro would be increasing the base meter rate.
Commissioner Hancock said there was a consensus on the 8%
increase. Commissioner Monaghan said he does not like to
see the residential base meter rate increase every year.
Chairman Haynie commented that he would not like to see any
of the rates increase. Commissioner Monaghan said he thinks
if you use it you should have to pay for it, but the base
meter rate is something different. Commissioner Monaghan
said Metro could change the way they are doing the Capacity
Fee; in his view the Capacity Fee should be assessed when
the house is built and sold. Commissioner Monaghan said if
Metro is paying for future expansion should that not come
from the Capacity Fee not the little old lady in the mill
village on a fixed income. He said the problem is Metro
charges the developer the Capacity Fee. At CPW they charge
the Impact Fee when the house is sold and that fee is
included in the mortgage. Commissioner Hancock said that is
completely different between the two utilities. He said CPW
is trying to stay out of debt all of the time and Metro is
trying to stay in as much debt as possible to stretch the
cost out. Commissioner Monaghan said he would rather
recover on the Capacity Fee on new expansion rather than on
the base meter charge but that would discourage
development. Chairman Haynie said Metro has to reserve the
capacity based on the plans. Commissioner Monaghan said in
California they charge the Impact Fee when the house is
sold. Manger Coleman said they are charged the Transmission
(Tapping) Fee when they buy the house. Commissioner
Monaghan said they are charged the Impact Fee too.
Commissioner Hancock said the Capacity Fee is needed ahead
of time to help finance the expansion of the plants and the
transmission system. He said the developers are reserving
space in the treatment plants with the Capacity Fee.
Commissioner Hancock said Metro agreed that when they were
within a million gallons of capacity they would expand the
plants and it takes time to expand a wastewater treatment
plant. He said a wastewater treatment plant is different
from a water treatment plant. Chairman Haynie said Metro
has established that the Capacity Fee does not fully cover
the cost. Manager Coleman said the proposed rate would
raise the total of the Capacity and Transmission Fees from
$1000 to $1100. Commissioner Burke said he understands the
concern, but his biggest problem is that Metro has a deal
where they are going to raise the rates on average of 8% for
the next 5 to 6 years. Chairman Haynie noted that Metro is
already behind on sewer revenue. Manager Coleman said if
Metro was to hold the base meter rate the same, they would
need to increase the volumetric rate by 11% and 13%.
Commissioner Monaghan said he would like to know if it is
required by law that Metro charges the Capacity Fee
upfront. Mr. Hemphill said the only law he has seen
regarding the Capacity/Impact Fee is there has to be a
rational nexus as to the amount. He said Metro has run into
collection problems when the Capacity Fee is not collected
upfront. Mr. Hemphill said legally he is not sure, but from
a practical standpoint if Metro does not get the money
upfront they may never receive the money. Commissioner
Monaghan said then Metro may want to turn the sewer off if
they have not received the money. Commissioner Burke said
the way DHEC regulations are Metro has to send a letter to
accept, own, operate and maintain the system before DHEC
will issue a permit to operate. He said currently Metro
requires that payment before they write the letter to own,
operate and maintain. After the letter is written, Metro
has no leverage. Manager Coleman said once Metro commits to
that, they have to reserve the capacity whether it is used
or not. Commissioner Burke said Metro does have the
leverage not to turn the tap on for each homeowner.
Commissioner Monaghan said that is what he is talking
about. He said Metro is going to collect $650 for the
Capacity Fee, but tax the little old lady in the mill
village to get $51,000 a year. Manager Coleman said Metro
just went through a whole new rate study and adopted it
February, 2007 for what was deemed a fair rate structure.
Commissioner Monaghan said he did not realize the base meter
rate was going up and that is his fault. Commissioner Burke
said Commissioner Monaghan is talking about changing
something for one year, but the plan put in place was for 5
years not 1 year. Chairman Haynie said Metro needs to adopt
the rates for this year and there is a plan in place that he
thought the Board was in agreement on.
Commissioner Hancock made a
motion to advertise the rates with an 8% across the board
increase and $50 increase to the Capacity and Transmission
Fees; Commissioner Burke seconded, the motion was approved.
Commissioner Monaghan voted no.
Mr. Hemphill inquired if the
Board wants to hold the public hearing at the end of the
month. Chairman Haynie responded Metro will hold the public
hearing based on an appropriate advertising period. Mr.
Hemphill said the minimum is once ten days prior. Manager
Coleman said Metro will advertise three times.
VIII.
Commissioner Smith made a motion to go into Executive
Session to receive legal advice; Commissioner Hancock
seconded, and the motion was unanimously approved.
IX.
The meeting returned to open session. No action was
taken during executive session.
X.
Commissioner Monaghan inquired if anybody at Metro is
serious about tagging the assets. Manager Coleman responded
both Mrs. Grogan and Mrs. Meyer have been working on this,
but it is not finished. Commissioner Monaghan said he would
feel comfortable if an inventory count is done once a year
that is matched against the books. Commissioner Burke said
he is more concerned about removing items that are no longer
on inventory. Commissioner Monaghan stated the inventory
should be run by the accounting department with the auditors
helping. Mr. Martin said everything at TSF has been
tagged. The list has never been compared to what is on the
books. Commissioner Hancock said until Metro started to
maintain items they did not have an inventory. Commissioner
Monaghan said the inventory count is usually scheduled a
month or so before the audit starts. Commissioner Monaghan
said the equipment should be tagged. Mr. Martin replied the
equipment is tagged. Chairman Haynie said Metro may want to
look into getting a bar code system. Mr. Martin responded
that is what Metro uses. Commissioner Monaghan suggested a
target date be set for when everything is going to be ready
and a date for when the physical inventory count is going to
be done.
XI.
With no further business, the meeting was adjourned.
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