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 GREENWOOD METROPOLITAN DISTRICT

MINUTES OF THE October 29, 2008

Regular meeting

The regular meeting of the Greenwood Metropolitan District Commission was held Wednesday, October 29, 2008 at 3:00 p.m., in the Training Room of Greenwood Metropolitan District Technical Service Facility, 110 Metro Drive, Greenwood, SC  29646.

In attendance:

Commissioner Bob Haynie, Chairman            Richard Coleman        Chuck Joy

Commissioner Byron Smith, Vice Chairman   George Martin            Marsha Meyer

Commissioner Gene Hancock, Secretary        Marion Boone             Bill Moore

Commissioner Michael G. Monaghan             Wayne Daniel              Michael Nix

Commissioner Henry Watts                             Steve Durham              Ken Page

Commissioner Tim Burke                               Gayle Grogan              Danny Ware

                                                                        Roy Hemphill              Ben Wofford

                                                                        Paige Holley

I.          Chairman Haynie called the meeting to order and gave the statement of compliance with the notification provision of the Freedom of Information Act.

II.          Mr. Martin gave the invocation.

III.          TSF Furniture Bids

Staff will review bids to ensure they are in compliance.  A recommendation will be made at the next Commission Meeting.

IV.          Request for Proposals – Engineering Services

Proposals were received from the following firms:

Davis and Floyd

Design South

Frazier Engineering

Genesis Consulting Group

Parsons Brinckerhoff

Staff and the Commissioners will review the proposals.  Staff will make a recommendation to the Commission on which firm they would like for the Commission to vote on. 

V.          Wilson Creek Upgrade

Mr. Danny Ware of Davis and Floyd, Inc. (D&F) distributed minutes from the monthly progress meeting.  He said over 10,000 yards of concrete has been poured to date.  The BNR wall pour is complete.  The elevated slab section of BNR # 1 needs to have the concrete poured.  The wall sections on clarifier #4 are almost complete.  The three week look ahead schedule from the contractor was handed out.  The contractor is showing that they are two months ahead of schedule.  The start-up of the UV system and the main electrical building is planned for the month of November.  The plant will run on the generators while the power is being switched.  Commission Monaghan inquired if the new generators have been tested.  Mr. Ware said that process will start next Tuesday.  The commercial power will have to be turned off to start the testing of the new generators.  Mr. Ware presented change order #10 for the Commission to approve.  Mr. Ware described pictures of the construction.

Commissioner Monaghan made a motion to approve change order #10 for the upgrade to the control panel for the monorail hoist system; Commissioner Smith seconded, and the motion was unanimously approved.

VI.          TSF Expansion

Mr. Bill Moore provided the Commission with an update of the expansion of the TSF Building.  Most of the sheet rock, installation and duct work are installed.  Shop drawing on the kitchen has been returned.  It appears the concrete slabs are being repaired.  The EIFS System is installed.  The contractor hopes to put the color coat on it next week.  It will blend with the current color.  All masonry work is complete.  Measurements for the windows are being taken.  Some of the exterior doors have been hung.  Pay request #5 was received and staff was holding the payment until an updated construction schedule was received from the contractor.  Pay request #6 should be received in the next few days.  The look ahead for the next few weeks includes installing the remainder of the dry wall, site cleanup, washing the masonry and finishing the duct work.  Mr. Moore presented three change orders for the Commission to take action on.

Change order #3

Add floor receptacles in room 171.  Power to second projector in room 133.  Add 18 recessed fixtures in Commissioner Room.  Add 7 additional days to contract.  Cost is $6,286.19

Change order #4

Eliminate walls in room 109 & 111.  Deduction of $984.

Change order #5

Add wall height to exterior walls in rooms 144 & 156.  Cost is $1,045.98.

Commissioner Hancock made a motion to approve change orders #3, #4, and #5; Commissioner Watts seconded, and the motion was unanimously approved. 

VII.          Chairman Haynie recognized the Metro operation challenge team on their 13^th place finish in the national competition.  Chairman Haynie recognized Mr. Martin on the award he received at WEFTEC. 

VIII.          Commissioner Monaghan made a motion to approve the September 24, 2008 regular meeting as revised and the September 24, 2008 public hearing as mailed, Commissioner Hancock seconded, and the motion was unanimously approved. 

IX.          Finances

a.      Greenwood Capital

Mr. Michael Nix with Greenwood Capital gave a quarterly report of Metro’s investment accounts.  The reserve account (1081) is the first account Mr. Nix reported on.  The first few pages list any bonds that have been called, sold, or matured.  The performance report is listed on page 4.  Page five starts the capacity account (1082).  The first pages contain any bonds that have been called, sold or matured during the fiscal year.  The current assets are listed on page 6.  The performance report can be found on page 8 for this account.  The revenue bond proceeds account is structured to meet the draw schedules for the Wilson Creek Plant Upgrade.  The schedule is revised as needed.  There was a draw in the first of October in this account.  The performance report shows the beginning account value any draws that have been made as of September 30, 2008 and the ending account value.  Mr. Nix said for the quarter the account performance is at 3%.  Mr. Nix gave a summary of the status of the current market and what is projected to happen during the next quarter.  Mr. Nix said yields on the account are around 4.2%.  Commissioner Monaghan would like to have a meeting with Mr. Nix to discuss Fannie Mae and Freddie Mac and agency bonds as soon as possible.  Commissioner Monaghan wanted to know how the draws for the capacity account are managed.  Mr. Nix said there is not a draw schedule for that particular account.  Commissioner Monaghan inquired on when the last time that account had any significant withdrawals.  He said he does not want that account to sit like the County account.  Commissioner Monaghan asked if there are certain criteria that determine when funds can be withdrawn from that account.  Manager Coleman said that account has some restriction on what the funds can be used for.  He said the funds cannot be used for operation and maintenance; it has to be used for expansion and extension of trunk lines or treatment plants.  The account cannot be used for rehab projects.  The reserve account does not have any restrictions.  Commissioner Monaghan said why does Metro not use the capacity account when it applies instead of the reserve account.  Mr. Nix said a lot comes from the bond proceeds account to avoid any penalty charges.  Commissioner Burke asked if the Eagles Harbor line does come up could the money from the capacity account be used to install that line.  Manager Coleman said it could be.  Metro has not determined which account that money would come out of.  Commissioner Monaghan said he would think when the restrictions are met Metro would use that account first.  Manager Coleman said it is all taken into account in the long range plan.  Commissioner Monaghan said he does not want to get to a point where the capacity account is the only available account and Metro does not meet the requirements.  Mr. Martin will coordinate a time for all Commissioners to meet with Mr. Nix. 

b.     Financial Report

Manager Coleman said the collections are behind from the stand point on what was budgeted versus what is collected.  Commissioner Monaghan noted the industrial surcharges are up compared to this time last fiscal year.  Manager Coleman said that is for high strength wastewater and it varies according to what is being discharged and Metro has no control over the discharge.  Commissioner Monaghan wanted to know if there was a reason for that much of a difference.  Manager Coleman said Metro has no way to project.  The budget amount is based on historical figures.  Manager Coleman will check into this.  Commissioner Monaghan wanted to know if the money in the County account was just for principle and interest only.  Chairman Haynie inquired if Commissioner Monaghan was talking about the GO account.  Manager Coleman said there are no funds from the bond in that account.  Commissioner Monaghan said if Metro issues a bond it goes into that account.  Manager Coleman said when Metro issues a bond the County creates a construction account for the bond money.  Manager Coleman said everything that goes in the millage account is from tax money.  Commissioner Monaghan said everything that comes out of the account is for interest and principle.  Chairman Haynie said that is strictly on the GO Bonds that are issued.  Commissioner Monaghan said he thought Metro had to send an invoice to the county for them to pay.  Chairman Haynie said Metro used to.  Mrs. Grogan asked if Commissioner Monaghan wanted to know if Metro sends any vouchers to the County for the principle and interest payments.  Commissioner Monaghan said no.  He thought when Metro receives a bill from a contractor and Metro would send the bill to the County to be paid from the millage account.  Chairman Haynie said the County stopped doing that a few years ago.  Manager Coleman said it is strictly principle and interest with the occasional issuance cost.  Commissioner Monaghan said he understands.  Commissioner Monaghan inquired if Metro will receive tax money in January.  Manager Coleman said the majority of the tax money is collected in December and January.  Commissioner Monaghan wanted to know if Metro would hold that money for a year, because according to the report Metro currently has enough money in that account to pay for the principle and interest for the entire fiscal year.  Chairman Haynie said that account is for the calendar year.  Manager Coleman said the money will be paid till October, 2009.  Commissioner Monaghan said the schedule he was provided showed the money was just about equal to what is currently in the account.  Commissioner Monaghan asked if this was correct.  Mrs. Grogan said it will not pay for all the principle and interest that is due in fiscal year 08/09.  Commissioner Monaghan wanted to know how much Metro will be short.  Mrs. Grogan said Metro has a payment in April for both principle and interest.  Commissioner Monaghan said the sheet that Mrs. Grogan emailed him had approximately $1,129,000 in principle and interest for fiscal year 08/09 and Metro has $1,087,000.  He said essentially Metro keeps the tax money for a year.  Manager Coleman said he does not know if that includes the October payments.  Commissioner Monaghan said he is counting the October payments.  Commissioner Monaghan wanted to know what is the interest rate the County is giving Metro.  Manager Coleman said it is not a lot.  Chairman Haynie said Metro cannot invest that money.  Chairman Haynie said Metro is awaiting the reassement number to determine the margin for Metro.  Manager Coleman said the tax money is collected in December/January and the payments are in March/September.  The County determines the Metro millage rates.  Manager Coleman said there is not a lot of tax money collected in February through November.  Commissioner Monaghan said right now according to the numbers from Mrs. Grogan, Metro has enough money in the account to pay everything through July, 2009.  Mrs. Grogan said not quite.  Commissioner Monaghan wanted more information.  Mrs. Grogan said Metro has $1.1 million and also will need to pay agency fees.  Mrs. Grogan said the agency fee is around $2,000.  Commissioner Monaghan said the new influx of money will be in December/January when the tax money comes in.  Commissioner Monaghan asked if the County is going to decrease the Metro tax millage because of the excess of money in the account.  Chairman Haynie said if the County is going to cut the millage they will have to do it very quickly.  Commissioner Burke said Metro will have to take into consideration that one third of the money is from the audit entry.  Commissioner Watts said on the balance sheet it has the City Pond Project $440,542.20 and on the big sheet it has the City Pond Project $224,591.52.  He wanted to know which figure is correct.  Mrs. Grogan said the project sheet includes capitalized interest from the audit that has been added.

X.          Action Items

a.      Wilson Creek Trunk Line Sewer Replacement Project Bids

The recommendation for the engineer firm is to award the bid to Chandler Construction Services, Inc. for the bid amount of $1,615,899.  Commissioner Monaghan wanted to know if the Commission decided to go with both phases.  Chairman Haynie said the recommendation was for the combined bid.  He said this is a project that Metro has not decided where the funds would come from.  Manager Coleman said this project was not in the capital plan in May.  He said Metro will more than likely have to borrow an extra $1.5 million next year.  Commissioner Burke said he is concerned about the HDPE pipe figure being so much lower for Chandler than with Hobby Construction.  He said he spoke to Krah to ensure that all contractors were given the same price.  Commissioner Burke said the difference between the two on HDPE pipe is $163 per linear foot and on the DIP pipe the difference is around $20 per linear foot.  Commissioner Burke is concerned about the integrity of the bidding processing with other contractors about the variances.  Commissioner Burke wanted to know how Metro can ensure that everyone is getting the same price from Krah when Mr. Joe Chandler is a percentage owner in Krah.  Mr. Joy said Design South recognized the large spread in the HDPE unit price.  Design South and Metro tried to create a level playing field for all contractors by allowing DIP and HDPE pipe.  Mr. Joy said the action on the part of Krah is something that Metro nor Design South can control.  He said an important variable is one contractor has experience with the product and the other does not.  Mr. Joy said he thinks some of the variance can be explained by the learning curve and fear of use of the product.  He said Metro received a low bid from Chandler for phase II and phase III of which Design South has made a recommendation to award.  The second low bidder is Moorhead Construction and their price is for DIP pipe only.  Commissioner Monaghan said Metro cannot tell from this what is the actual pipe cost.  Mr. Joy said Design South nor Metro solicited the pipe price.  Commissioner Burke wanted to make sure all of the basis are covered.  Commissioner Hancock said another item to consider is one is manufactured in Greenwood County and they employee residents from Greenwood.  Mr. Joy said Design South will stand with Metro if anyone questions the bids.  Commissioner Monaghan inquired about the problem with joining the different pipe types.  Commissioner Burke said the joining of the two different pipe types will be done through a manhole that was designed to do that. 

Commissioner Hancock made a motion to award the bid to Chandler Construction Services, Inc.; Commissioner Smith seconded, and the motion was unanimously approved.

b.     Payroll Services Proposals

Staff recommends using Greene and Company for their payroll services for $5,525 per year plus an $850 initial set-up fee.  Chairman Haynie wanted to know what Metro was paying.  Mrs. Grogan said Metro was paying $400 per month. 

Commissioner Hancock made a motion to award the payroll contract service to Greene and Company; Commissioner Watts seconded, and the motion was unanimously approved.

c.      Change Order on the 72” Project

Staff recommends that a change order be issued to Chandler Construction Services, Inc. in the amount of $10,368 for installing concrete section around manholes on the first phase of the 72” Project.  Commissioner Monaghan inquired if that was to protect the manhole in case the manhole was involved in a crash.  Mr. Martin said the concrete is also a way to protect the manhole from fire damage.  Commissioner Burke asked if this issue was addressed in the bids for phase II and phase III.  Mr. Wofford said the manholes in phase II and phase III are HDPE. 

Commissioner Monaghan made a motion to approve the change order; Commissioner Hancock seconded, and the motion was unanimously approved.

XI.          Other/Old Business

a.      Commissioner Burke suggested for the Commission to have a work session to determine where the true needs are within the Metro District for the forthcoming year.

b.     Future Commission Meetings

November 12^th

December 3^rd

December 17^th

All meetings will be at TSF at 3:00pm.

c.      Audit

Manager Coleman handed out a draft audit.  The audit assuming Metro receives the request information from the County will be presented at the next meeting.

XII.          Commissioner Watts made a motion to go into Executive Session to discuss a legal matter; Commissioner Smith seconded, and the motion was unanimously approved.

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

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