GREENWOOD METROPOLITAN DISTRICT

MINUTES OF THE September 26, 2007

Regular Meeting

 

The regular meeting of the Greenwood Metropolitan District Commission was held Wednesday, September 26, 2007, at 3:00 p.m., in the Board Room of CPW/Greenwood Metropolitan District Administrative Building, 121 West Court Avenue.

 

In attendance:

Commissioner Byron Smith, Vice Chairman      Richard Coleman          Paige Holley

Commissioner Gene Hancock, Secretary          Gayle Grogan               Marsha Meyer

Commissioner Michael G. Monaghan                Roy Hemphill

Commissioner Henry Watts

Commissioner Tim Burke

 

1. Vice Chairman Smith called the meeting to order and Manager Coleman gave the invocation.

 

2. Vice Chairman Smith gave the statement of compliance with the notification provision of the Freedom of Information Act.

 

3. Wilson Creek Update

Manager Coleman said that Mr. Ware emailed him saying he would not be able to attend the meeting.  Commissioner Monaghan asked if Mr. Moore would be attending the meeting.  Manager Coleman said Davis and Floyd is still scheduled to have the plans for phase 1B ready around October 14^th.  The plans for the Technical Service Facility (TSF) expansion should be ready for bid around November 1^st.  Manager Coleman said he knew of some small change orders pending.  Commissioner Monaghan asked if Metro was present when CDM and Davis and Floyd met to resolve the differences in the design.  Manager Coleman said he is not sure if all of the differences have been resolved.  Commissioner Monaghan said he thought the differences had been resolved.  Manager Coleman said Davis and Floyd and CDM have met and gone over the design, but he does not have the resolutions.  Commissioner Monaghan asked Manager Coleman what he said about phase 1B.  Manager Coleman said phase 1B should be ready to advertise for bids on October 14^th.  Commissioner Monaghan said he was under the impression that the Commissioners would be attending the meetings with CDM and Davis and Floyd so they could watch what was being done.  Manager Coleman responded the meeting was around the first of September.  CDM gave their presentation to Davis and Floyd verbally and in writing on the first phase.  A week later CDM came back in writing directly to Davis and Floyd.  Manager Coleman has not received the information from Davis and Floyd.  Commissioner Monaghan asked for Manager Coleman to contact Mr. Ware regarding when the meeting is scheduled.  For the most part the comments were technical in nature.  Commissioner Watts said it may help with the number of change orders.  Manager Coleman said there were some technical items, but there was not a lot of major changes.  One of the major changes was on how to split the flow.  The issue was on how to split the flow when the third BNR goes in.  Manager Coleman will forward the comments from CDM to the Commissioners. 

 

4. Commissioner Monaghan made a motion that the minutes from the August 22, 2007 Regular Meeting be approved as mailed and Commissioner Hancock seconded.  The motion was unanimously approved.

 

5. Financial Report

Manager Coleman said staff has tried to explain any overages or shortages.  In comparing the sewer system income to budget and after talking to CPW what is billed in one month is collected the next month.  If Metro was to stagger June, July and August billings with July, August and September collections it matches up very well.  In the past, Metro has not staggered it.  Commissioner Watts stated the total water consumption has been down.  Manager Coleman stated Metro will keep an eye on this.  Commissioner Watts asked if the bad debt figure for August is a cumulative figure.  Mrs. Grogan responded it is the portion that is written off.  Manager Coleman said bad debt is not written off each month.  Mrs. Grogan said CPW tries to write off bad debt every quarter, but it does not fall every quarter.  Commissioner Hancock inquired if the bad debt is still going to the State to be collected against taxes.  Mrs. Grogan responded yes.  Commissioner Watts asked where did Metro record the $600,000 that CPW paid for Metro’s portion of the administrative building.  Mrs. Grogan said the money was deposited in the Investment Account (1081).  That account is managed by Greenwood Capital.  Commissioner Monaghan said Metro did not record the money as other income.  Mrs. Grogan said the money was deposited into the Investment Account (1081).  Commissioner Monaghan asked what does that have to do with where the money is put on the Income Statement.  He said Metro can take any revenue and put it into the Investment Account.  Mrs. Grogan said the money was deposited into the Investment Account.  Commissioner Monaghan said Metro has in actual year to date $1.5 million in revenue.  He said Metro could take $25,000 of that and put it into the Investment Account, but Metro would still show it as revenue.  Commissioner Monaghan asked if putting the money in the Investment Account negates the reason for not including it on the Income Statement.  Commissioner Burke said the Income Statement is operational.  He asked if that money classified as operational.  Commissioner Monaghan said the Income Statement as “other income”.  He said “other income” is a whole variety of things not necessarily operational.  Mrs. Grogan asked if Metro wants to use $600,000 for operational income.  Commissioner Monaghan said it is not a matter of how you use it; it is a matter of where Metro reports it when the money comes in.  He said Metro can take any of this income and use it anyway the Commission wants to.  The Commission could put it in an investment account, buy capital, build buildings, etc.  Anything that comes in the door Commissioner Monaghan would think it should be on the Income Statement so the Commission can see it.  Manager Coleman said Metro will put it under “Other Income”.  Commissioner Monaghan asked what other income does Metro have that has not been reported on this statement.  Mrs. Grogan said she does not know of any.  Manager Coleman said the $600,000 was a special income that was not budgeted.  Mrs. Grogan said she wanted to put it into an account to draw interest.  Commissioner Monaghan said he does not have a problem with that.  He is just making a point that any income that comes in should be included on the Income Statement no matter where it comes from.  Then Metro can do whatever they want.  Commissioner Monaghan stated this is the only place the Commissioners can see where the money comes from.  Commissioner Watts asked which Investment Account was the money deposited in.  Mrs. Grogan responded the 1081 Account.  Commissioner Monaghan said he thinks the Income Statements are very good and the explanations are very helpful.  Commissioner Monaghan asked why the July’s utilities were over budget when the utilities for August were under budget.  Manager Coleman responded some June utility invoices were paid in July.  The auditors will back out the June invoices.  Commissioner Monaghan said those invoices are really not a July expense.  Commissioner Monaghan asked when will Metro start receiving money from the property tax.  Manager Coleman responded the Commission will probably not see any money until the January reporting period (December receipts).  Currently what is being paid in the taxes to Metro is in arrears because last year nothing was assessed.  Commissioner Monaghan said he thought the County had a certain amount in the account and the County would not let Metro use that money and therefore Metro issued a bond in that amount.  Metro is going to pay the bond off in one year.  Manager Coleman said Metro paid it off on June 1^st.  Commissioner Monaghan asked why does Metro have $500,000 still in the County account.  Manager Coleman said Metro will have to make the October 1^st payment.  Commissioner Monaghan said he did not understand.  Manager Coleman said in this calendar year Metro still has a payment that has not shown up yet.  Metro pays it in September and it is due by October 1^st.  Commissioner Monaghan asked what is it paying for.  Manager Coleman said the bonds.  Commissioner Monaghan asked which bonds.  Manager Coleman said the General Obligation Bond.  Commissioner Monaghan inquired as to which General Obligation Bond.  Mrs. Grogan said Metro has two interest payments for the 1999 and 2004 interest payments on the GO Bonds.  Commissioner Monaghan said he does not think there is anything wrong with the accounting.  He thought Metro had a certain amount in the account.  Metro issued a bond to equal the amount in the account.  Metro then paid all of the bond off.  Manager Coleman said it equaled that except what was due this calendar year.  Metro makes General Obligation Bond payments in April and October.  Metro still has some payments to make that have not shown up.  Commissioner Monaghan asked if it was against other General Obligation Bonds.  Manager Coleman said it is the same bonds that have already been issued.  Metro has two semi-annual payments.  Commissioner Monaghan asked if it is the special bond or a bond that Metro already has.  Manager Coleman responded they are bonds Metro already has.  Commissioner Monaghan inquired about what is going to be left from that.  Mrs. Grogan said about $286,000.  Commissioner Monaghan asked if everything will be paid off on the General Obligation Bonds.  Manager Coleman said no; everything is paid to date.  Commissioner Burke said there will be another payment in April, 2008.  Commissioner Monaghan said Metro is over $286,000 according to the County.  Manager Coleman said that is how much reserve is left.  Commissioner Monaghan inquired if that money could be used for capital construction.  Manager Coleman said not according to the County.  Commissioner Hancock commented that he does not see how the County can tie the money down.  He said with all of the personal property taxes there is no way the County can tie the money down to a flat dollar amount.  Mr. Hemphill said the County is not taking the money for their benefit; the money stays in the account as a reserve.  Commissioner Hancock said if Metro does not receive the money, it just sits there.  He said Metro should receive some benefit from the money.  Commissioner Monaghan agreed with Commissioner Hancock.  Mr. Hemphill said he had a note that as a part of the next bond issue process he was going to revisit this issue with the bond attorney.  Commissioner Monaghan inquired if Metro takes a periodic physical inventory that matches what is listed as assets.  He asked how often does Metro take an inventory.  Mrs. Grogan responded the Department Managers are supposed to take an inventory every year.  Commissioner Monaghan asked what does the Department Managers actually do.  Mrs. Grogan said to her understanding that is what they do.  Commissioner Monaghan responded Mrs. Grogan should know because she is the accountant.  Mrs. Grogan said to her understanding the Department Managers take an inventory each year.  Vice Chairman Smith asked if there is a bar code.  Mrs. Grogan said she receives a print-out.  Vice Chairman Smith asked if the Department Manager sent a print-out saying they had done the inventory.  Mrs. Grogan responded yes.  Commissioner Monaghan inquired on who oversees the physical inventory.  Mrs. Grogan responded Woody Smith, the Receiving Agent.  Commissioner Monaghan commented from his experience the accountant oversees the counting of the physical inventory.  Mrs. Grogan said she has never gone out to do the inventory.  Commissioner Hancock said the auditors do a sample of the inventory.  Mrs. Grogan responded the auditors have in the past, but they did not this year.  The auditors are doing a different process this year on the audit.  Commissioner Monaghan stated he thinks Metro should get an inventory procedure in place.  Commissioner Monaghan said the financial people should be the ones to oversee inventory.  Mrs. Grogan said that she and Mrs. Meyer are working on a fixed asset policy, but it is not complete.  Commissioner Monaghan said normally at the end of the fiscal year there is a thorough inventory of all assets and what is not in inventory is written off.  He said all employees are involved; the employees have to put a tag on each item.  The financial department will then check the tags and if something is not right they will have the employee to check the tag again.  Mrs. Grogan said that amount of detail has never been done.  Commissioner Burke inquired as to what the inventory is mainly comprised of.  Manager Coleman responded in dollars a majority of it is chemicals in bulk tanks.  The physical inventory in stock is all housed at TSF in the caged area.  Miscellaneous inventory (office supplies) are kept at each location.  Mrs. Grogan said quarterly the Department Managers provide her with an inventory count and she adjusts from that.  Commissioner Monaghan inquired if all of the assets are tagged with a number.  Mrs. Grogan responded no.  Commissioner Monaghan stated Metro has $1.81 million in miscellaneous equipment.  He asked if that is checked inventory.  Mrs. Grogan said no.  Commissioner Monaghan asked what is “CMOM Equipment”.  Mrs. Grogan responded that is the Collection Department.  Commissioner Monaghan asked what is it; is it shovels or big truck, etc.  Mrs. Grogan said it could be an easement machine, etc.  Commissioner Monaghan thinks that Metro needs to get a handle on the inventory.  He believes the inventory should be tagged, equipped with an asset number and Metro should physically count the inventory.  Mrs. Grogan said a policy has been exchanged and is roughly 80% complete.  Commissioner Monaghan said he is willing to help if needed.  Mrs. Meyer said there are many items (chairs, desk, cabinets, tables) that have been tagged at TSF, but pipes, manhole covers and items like that have not been tagged.  Mrs. Meyers said items in the warehouse are not tagged because those are items that will be issued out.  Commissioner Monaghan said the warehouse should be counted.  Mrs. Meyer said the warehouse is counted and Mrs. Grogan receives a count from Mr. Smith each month.  Commissioner Monaghan inquired as to how often items are written off.  Mrs. Grogan responded items are not written off.  Commissioner Monaghan asked what happens if Metro is short.  Mrs. Grogan said she does not adjust.  She said the reason why is because CASSWORKS (Purchase Orders) and Peachtree (Accounting) will not talk to each other.  Commissioner Monaghan said Metro needs to fix that.  Mrs. Grogan said what she puts into Peachtree gets paid out of Peachtree.  Commissioner Monaghan said this will need to be revisited when there is more time.  Manager Coleman said one of the issues is Metro receives a physical count on something that has been received on a certain date for example June 30^th; the invoice may not have been paid until July 10^th.  Metro needs a way to make the accounting system accountable.  Commissioner Monaghan commented he thought Metro already had a system that accounts for that.  He asked if before Metro pays an invoice do they receive a receiving report.  Manager Coleman said Metro does, but the receiving report is in CASSWORKS and the accounting part is in Peachtree.  Commissioner Monaghan said somebody has to check it.  Manager Coleman said Metro accounts for it when they pay the invoice; but it does not match with the physical inventory.  The physical inventory is what is in the supply room on the day the physical count is made.  Vice Chairman Smith asked if this has been brought up before.  Mrs. Grogan responded yes this has been brought to the Commission’s attention before.  Commissioner Burke asked when a contractor has to provide Metro with a reserve stock of items (for example: grinder pumps) where is that recorded.  Mrs. Grogan responded the grinder pumps would probably be placed in miscellaneous equipment.  Commissioner Monaghan asked how would Metro know they have it.  Mrs. Grogan said if the item meets the capital threshold ($3000) then it will have a capital asset number in the fixed asset software.  Commissioner Monaghan asked who will notify Mrs. Grogan when the item is received.  Mrs. Grogan said she would need the serial numbers and cost.  Commissioner Monaghan said Mrs. Grogan would have to have that information; he wanted to know if she presently got that information.  Mrs. Grogan responded she does not know if she has received anything to that effect.  Commissioner Monaghan said the developer is transferring the asset to Metro.  Mrs. Grogan said as part of the policy (that is being worked on) Metro will have an asset sheet that will show transferred items or acquired items.  Commissioner Monaghan said somebody should give Metro a piece of paper saying Metro received the item.  Then Metro would put an asset tag on it and the item would then be inventoried.  Commissioner Monaghan commented the bigger Metro gets the worst this will be.  Commissioner Hancock stated if a pump station goes off-line the pumps and other items are reused.  Manager Coleman said Metro reuses the parts that can be reused.  Commissioner Monaghan stated Miscellaneous Equipment is $1,871,079.04.  He asked if Metro ever removes anything from that list.  Mrs. Grogan responded if Metro sells it; it is removed.  Commissioner Monaghan said if Metro sells it, it is documented, but what happens if the item is scraped.  Mrs. Grogan said if she is not aware of it then she would not know to take it off.  Commissioner Monaghan said usually if the item has an asset tag and Metro was to scrap it somebody would have to send a letter to Metro and in the letter it would include the asset tag.  He inquired if Metro has a procedure similar to what he is talking about.  Manager Coleman said no, that is part of what Metro is working on.  Commissioner Monaghan asked what is “TSF Office and Equipment”.  Mrs. Grogan responded the Technical Service Facility.  Commissioner Monaghan said that is not the value of the building.  Mrs. Grogan said that is the value of the office equipment.   Commissioner Monaghan said so it is TSF Equipment.  Mrs. Grogan said that is the office furnishings and office equipment.  Commissioner Monaghan said he was not sure if it was the value of the offices.  Mrs. Grogan said when TSF was occupied the furniture and equipment that was purchased at that time was lumped and that was the value.  Commissioner Monaghan stated he thinks Mrs. Grogan does a good job; he is trying to help.  Commissioner Watts asked if depreciation is ever shown on equipment.  Mrs. Grogan responded in the past she has not.  Commissioner Monaghan said it is a part of the depreciation amount.  Commissioner Burke said the depreciation is not listed item by item.  Commissioner Monaghan referenced page 28 of the packet; he asked why it cost Metro $4,089 to replace the fuel transfer pump on vehicle #610.  Mrs. Meyer said that is one of the Vactor Trucks.  Commissioner Monaghan asked what is the fuel transfer pump.  Mrs. Meyer said she does not know what it is, but there is not much work that is done on the Vactor Truck that is not expensive.  Commissioner Monaghan asked for an email to be sent to him detailing what the expense was for. 

 

6. Action Items
   1. Tags for Trailer Mounted Generator

Manager Coleman said Metro received some trailers over the years through a contract.  Metro became aware that trailers need a tag if the empty weight is over 2500 pounds.  Commissioner Watts inquired if this was a new law.  Mrs. Meyer responded it is the law.  Commissioner Monaghan inquired if the trailers are still in good condition.  Mrs. Meyer responded they are and Metro intends on keeping them.  Commissioner Monaghan suggested Metro to contact the Legislation Delegation regarding the situation.  Mrs. Meyer said Metro has gone to the DMV and that is included in the documentation.  Metro has gone to the Transport Police in Columbia.  Commissioner Monaghan suggested Metro to contact the Senators and Representatives.  He said DMV has this law and Metro is a public agency and now Metro has to prove that Metro really owns the trailers.  Manager Coleman responded the DMV will not issue a tag unless Metro has proof of ownership or a bill of sale.  Commissioner Monaghan said Metro is a public agency and it seems like somebody (the Senators or Representatives) could go to the DMV and say the DMV is going to cost Metro $17,000 to replace perfectly good trailers.  Commissioner Watts asked if Mr. Hemphill knows if Metro can be “grandfathered” in.  Commissioner Hancock suggested for Metro to write out a bill of sale saying the trailers were given to Metro on the job.  Commissioner Monaghan said it seems like if a Senator went to the DMV the Senator could change it.  Vice Chairman Smith said this may be something that cannot be changed.  Vice Chairman Smith asked how soon does this need to be done.  Mrs. Meyer said the chances of Metro getting stopped is slim to none.  Metro has located three used trailers; Metro may lose those used trailers if it takes to long.  Commissioner Watts inquired if the agency that gave the trailers to Metro did they have a tag; if not it may be due to a new law and Metro may be “grandfathered” in.  Mr. Hemphill said he believes the previous agency had the paperwork, but the paperwork never made the transfer with the trailer.  Commissioner Hancock asked if Metro has checked with Chandler.  Mrs. Meyer responded Metro has and Chandler has no paperwork beyond five years back.  The other agency was CPW and Metro has checked with Mr. Burnett and CPW has no paperwork or documentation.  Commissioner Burke said Chandler still could write a bill of sale.  Mrs. Meyer said if they are permitted to do so.  Commissioner Watts said Metro still needs the Vehicle Identification Number (VIN).  Mrs. Meyer responded Metro has VIN and serial numbers on all of the trailers.  Manager Coleman said the DMV will not give Metro a tag without the bill of origin.  Mr. Hemphill said Metro has already asked for some type of documentation from CPW.  Mrs. Meyer said Metro has asked for a bill of origin from CPW and Chandler.  Mr. Hemphill said he might could work on that in terms of the bill of origin.  Commissioner Watts said he will check with Mr. Burnett tomorrow.  Mrs. Meyer said she has already spoken to Mr. Burnett, and Metro asked for the bill of origin; the original paperwork from CPW and Chandler and that is not available.  Commissioner Monaghan asked if CPW and Chandler could sign an affidavit.  Mr. Hemphill said he would think so, but if it is not in the DMV check list, the DMV may not accept it.  Mrs. Meyer said Metro needs to use them; the trailers have generators that are mounted on them.  Mr. Hemphill said Metro needs to make sure the trailers are listed on the insurance policy.  Mrs. Meyers responded they are.  The Commission directed Metro to contact the Legislation Delegation to see if they could help before Metro purchased new trailers.  Mrs. Meyer said she will do that and report back to the Commission. 

 

2. Restoring the Insurance Reserve Balance

Commissioner Monaghan made a motion to add $76,517.84 (Metro’s portion) to the insurance reserve fund; Commissioner Burke seconded, and the motion was unanimously approved. 

 

VII.      Miscellaneous Administrative Matters

1. Long Range Financial Plan

Manager Coleman said in working on the bond issue Metro was planning on issuing a $20 million bond and about $10 million later.  Metro is looking at the possibility of issuing a $30 million bond now and wrapping that around the current debt.  Manager Coleman is not sure which way would be more beneficial for Metro; the financial advisors are looking at it.  One problem might be Metro will have to spend the money in three years; this project may last more than three years.  Commissioner Burke said it appears as though the bond rates will be decreasing the longer Metro waits.  Manager Coleman said Metro is scheduled to receive bids on the bond toward the end of November.  Metro should have the money by the middle of December; and the project should start around the first of January.  Commissioner Monaghan said Metro should wait on the long range capital plan until Mr. Martin gets back.  Manager Coleman said it would be a good idea.

 

2. Commissioner Monaghan handed out information on 1” meters versus 5/8” meters (see attachment A).  Commissioner Monaghan had a 1” meter on his house.  The base charge for that size meter is 2.5 times more than a 5/8” meter.  He had his meter changed to the 5/8” meter.  Commissioner Monaghan could not tell the differences between the 5/8” and 1” meter.  He asked the meter readers at CPW how many are residential.  There are 1,334 1” meters and out of that number 1,075 are residential meters.  These users are paying 2.5 times the base meter charge.  There are 259 commercial 1” meters.  Commissioner Monaghan does not think a residential 1” meter is using that much more water.  He would like to see if Metro can change the rate structure to say residential 1” meters have the same meter charge as the 5/8” meter.  He mentioned that Metro may want to send a letter to every residential 1” meter saying they are going to pay 2.5 times the base meter charge unless they change to a 5/8” meter.  Commissioner Burke noted the irrigation systems cannot run off the 5/8” meters.  Commissioner Monaghan said he is talking about the house meters.  He noted there are 468 meters that are on an irrigation system.  Commissioner Burke commented that he thinks there are a lot of users that do not know they can have a separate meter for their irrigation system.  Manager Coleman said he was not thinking the 1” meters would be a problem, but he did not know of some large meter users with small usage.  The option is to change their meter; that has been an option all along.  Commissioner Monaghan said he can have CPW write a letter to the 1” residential meter users informing them of the option to change their meter size.  Commissioner Watts asked how somebody could tell just by looking.  Commissioner Monaghan said a meter reader at CPW told him.  Manager Coleman said the meters are physically different in size.  Commissioner Monaghan said the 1” residential meter user is also paying a bigger meter charge to CPW.  Commissioner Monaghan noted he did not see any difference in his water pressure, but he probably would on his irrigation system.  Commissioner Burke said you would notice a difference because of the amount of flow that is required.  Commissioner Watts inquired about how the change would affect the revenue.  Manager Coleman responded if everybody changed Metro would have to change the volumetric flow rate.  Commissioner Monaghan said he thought the Commission would be interested in the statistics.  Commissioner Hancock said some of the users will need a 1” meter, but the majority would need a 5/8” meter.  Commissioner Monaghan said when Metro is doing the rate study and going up on each meter he was thinking it would only affect the commercial users; he did not realize there were over 1,000 residential 1” meters.  Manager Coleman said Metro still has to have the same amount of money coming in on the revenue.  If everybody changed, Metro would have to make the adjustment on the volumetric side of the rate.  Commissioner Monaghan stated that would be fair. 

 

3. Manager Coleman said he received an email from Mr. Joe Upchurch on behalf of Puckett’s Ferry.  Puckett’s Ferry is withdrawing their request for Metro to maintain their grinder pumps.  Puckett’s Ferry will withdraw their request if any cash payment is required by Metro.  Manager Coleman said nothing is being done now regarding the low pressure system at Puckett’s Ferry.

 

4. Manager Coleman said Metro talked about changing the base meter charge and volumetric charge by 8%, but did not talk about changing the capacity charge or the transmission fee.  What was talked about in the financial planning was to increase those charges by $50.  Commissioner Monaghan stated there was no talk about increasing the base meter charge by 8%.  He is not in favor of raising the base meter charge.  Manager Coleman said Metro cannot raise the 8% and get 8% of the money without raising the base meter charge.  Commissioner Monaghan suggested raising the volumetric charge by 9%.  Manager Coleman said Mr. Parker will need to go back and refigure the rate increase to get the same amount of money.  Commissioner Monaghan said the base meter charge is impacting low income people too much.  Commissioner Monaghan stated he is against raising the base meter charge.  If Metro needs more money they should raise the volumetric charge; the people that use the water get the water.  Commissioner Monaghan said Metro needs to be sensitive to the low income people.  He said the low income people are paying a disproportionate amount of their income to the base charge than somebody that is more affluent; it is a bigger percentage of their income.  Commissioner Monaghan said if they are going to use the water they should be charged for the water; if they are not using it and Metro raises the base meter charge it is disproportional to the little old lady in the mill village on social security only.  He said Metro is going to charge her a bigger base charge and it is a bigger disproportion to their income.  Manager Coleman inquired on how it is a disproportion when it is 8% on both charges.  Commissioner Monaghan said it is disproportion to their income because they may only be receiving $12,000 a year of Social Security instead of $100,000.  Commissioner Hancock said Mr. Parker did not explain it the way Commissioner Monaghan is.  Commissioner Burke agreed with Commissioner Hancock.  Commissioner Burke said Mr. Parker said just a rate charge.  Commissioner Monaghan said that is what surprised him about the base meter charge.  Manager Coleman said Metro needs 8% more money.  Commissioner Burke and Commissioner Hancock both said in rates.  Manager Coleman said he will talk to Mr. Parker about whether it was on both rates or just the volumetric rate.  Commissioner Monaghan stated he has been fighting ever since he became a Commissioner on the rates.  Commissioner Hancock said it was supposed to be an 8% increase in rates.  Commissioner Burke said it would be 47% over five years.  Manager Coleman asked about the capacity and transmission fees.  Commissioner Monaghan said that is different.  Manager Coleman said Metro has talked about making the increase in $50 increments.  Commissioner Burke said he thought the Commission had asked the gentleman from Washington to provide Metro with information from other sewer municipalities.  Manager Coleman stated Metro’s true cost is over $2500; Metro is only charging $1000.  Commissioner Hancock said from what he understood from Mr. Parker regarding the 8% increase is it might take more volume to recoup the money instead of recouping it at a lower end.  Manager Coleman said that was to establish the rate structure.  If Metro needs 8% more money, they are going to need to raise both rates (base meter and volumetric) or if you keep one rate the same, the other rate will have to be more.  Commissioner Monaghan said the base meter rate should be looked at separately from the volumetric rate.  Commissioner Monaghan said as soon as Metro changes the base rate; they impact low income people.  Manager Coleman said but when Metro changes the volumetric rate it will impact the low income people too.  Commissioner Monaghan said but not like a base meter rate change.  He said if people are on a fixed income their base meter rate is a greater disproportion part of their income than if you are an affluent person.  Manager Coleman said he understands what Commissioner Monaghan is saying.  He suggested holding off on the public hearing until this item is cleared up.  Mrs. Grogan said she received an email from Mr. Parker and he did do an across the board rate increase of 8%.  Manager Coleman said Metro can do it the way the Commission wants to do, but 8% will not be the number. Vice Chairman Smith asked from Manager Coleman to provide the Commission with the new numbers.  Manager Coleman said the public hearing notice will not run until this item is cleared up. 

 

5. Report from the Partnership & Economic Alliance

Commissioner Monaghan said the Alliance has hired a technical analyst.  The Partnership has created a finance committee and the committee is supposed to meet each month to review the expenses.  Commissioner Monaghan is signing all checks. 

 

VIII.   Commissioner Monaghan made a motion to go into Executive Session to receive legal advice and discuss a contractual matter; Commissioner Watts seconded, and the motion was unanimously approved. 

 

9. The meeting returned to open session.  No action was taken during executive session.

 

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