The regular monthly meeting of the Board of the Metropolitan Sewerage District was held in the Boardroom of MSD's Administration Building at 2:00 p.m., Wednesday, September 15, 1999. Chairman Selby presided with the following members present: Aceto, Blackburn, Bryson, Field, Graham, Pace, Sobol, Spell and Venable. Mr. Kelly was absent.

Others present were: W. H. Mull, General Manager, William Clarke, General Counsel, Gary McGill of McGill Associates, Tom Hartye, Jim Fatland, Stan Boyd, Ann LeMieux and Sondra Honeycutt, MSD.

Mr. Pace moved that the minutes of the August 18, 1999 meeting be approved as presented. Mr. Venable seconded the motion. Voice vote was unanimous in favor of the motion.

Mr. Aceto asked if topics for the Planning Retreat would be discussed at today's meeting. Mr. Selby stated that this issue would be discussed under Committee Reports.

1. Consideration of Compensation Chart - Fairfax Avenue, AMP.

Mr. Mull reported that the Right of Way Committee recommends approval of the Compensation Chart for Fairfax Avenue, AMP, which is based on 1999 tax values.

2. Consideration of Compensation Chart for Trotter Place to Middlemont, AMP.

Mr. Mull reported that the Right of Way Committee recommends approval of the Compensation Chart for Trotter Place to Middlemont AMP, which is based on 1999 tax values.

3. Acceptance of Developer Constructed Sewer System - Oakbrook Phase 1 at Biltmore Park:

Mr. Mull reported that the Oakbrook Phase 1 project is located off Long Shoals Road adjacent to Interstate 26 and included installation of 1,543 linear feet of 8" sanitary sewer at an approximate cost of $72,165.00. He further reported that staff recommends acceptance of the developer constructed sewer system and that all MSD requirements have been met.

4. Acceptance of Developer Constructed Sewer System - Jefferson Associates:

Mr. Mull reported that this project is located off of Brevard Road and included installation of 77 linear feet of 8" sanitary sewer pipe at an approximate cost of $15,000.00 and that all MSD requirements have been met.

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5. Acceptance of Developer Constructed Sewer System - Upper Grassy Meadows:

Mr. Mull reported that the Upper Grassy Meadows project is located off Riceville Road on Upper Grassy Branch Road and included installation of 835 linear feet of 8" sanitary sewer pipe at an approximate cost of $28,000.00 and that all MSD requirements have been met.

6. Consideration of Monthly Investment Report for Period Ended July 31, 1999:

Presented as information only.

7. Consideration of Approval of Surplus Property List:

Mr. Mull reported that staff recommends approval of the Surplus Property List for Disposal and that the General Manager be authorized to enter into an agreement with the City of Asheville to participate in their annual auction. He further reported that the first item on the list (wall mount water cooler) will be deleted from the list and utilized in another location. He stated that these items will go through the City of Asheville auction process with all funds to be deposited into the District's "Replacement Fund" account.

With no discussion, Mr. Spell moved that the Board approve the Consolidated Motion Agenda items a. through g. as presented. Mr. Pace seconded the motion. Roll call vote was as follows: 10 Ayes; 0 Nays.

8. Consideration of Budget Amendment - Billing & Collections:

Mr. Mull reported that the Board, at the June 9, 1999 meeting, adopted a Budget Resolution, which included a Revenue and Expenditure line item for Billing and Collections in the amount of $400,000.00. He stated that in order to ensure that the Expenditure Billing and Collection line item is equal to the Revenue Billing and Collection line item, the Board is asked to approve an increase or decrease in the annual budget in an amount necessary to reflect the actual billing and collections by the member agencies. Also, that the Amendment be entered in the minutes of the District. Following a brief discussion, Mr. Aceto moved that the Board approve the Budget Amendment as presented. Ms. Graham seconded the motion. Voice vote was unanimous in favor of the motion.

9. Consideration of Bids for Streets and Right of Way Restoration:

Mr. Mull reported that the following bids were received on August 24, 1999 for Streets and Right-of-Way Restoration following maintenance performed by the District: Paving Enterprises with a total base bid of $311,190.06 and APAC with a total base bid of $249,417.38. He further reported that staff recommends award of the bid to APAC subject to legal review. Regarding Bid Sheet #2, Mr. Aceto asked why the unit prices for items b, d, f and h are higher then those of Paving Enterprises, but where a lump sum amount is shown, APAC's bids are lower. Ms. LeMieux stated that the quantities shown are anticipated for the entire year. A brief discussion followed regarding the difference in square foot and lump sum costs; whether the bids were higher this year, and the number of bidders last year. With no further discussion, Ms. Graham moved that the Board approve the bid of APAC in the amount of $249,417.38. Mr. Venable seconded the motion. Roll call vote was as follows: 10 Ayes; 0 Nays.

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10. Consideration of Change Order for Current Contract with APAC:

Mr. Mull reported that the original contract with APAC in the amount of $302,547.07, was approved by the Board on April 16, 1997 and the first change order in the amount of $30,000 occurred on August 20, 1999. He further reported that this change order in the amount of $30,000 is necessary in order for the System Services Division to complete their current work. He stated that this change order will increase the contract amount to $362,547.07 and that funds are available in the FY 99-00 Operations Budget. With no discussion, Mr. Blackburn moved that the Board approve the Change Order with APAC in the amount of $30,000. Ms. Bryson seconded the motion. Roll call vote was as follows: 10 Ayes; 0 Nays.

11. Consideration of Bids for Standby Generators - Pump Stations:

Mr. Mull reported that all but five of the District's pump stations have back-up power (generators) on site and that this project entails the procurement of two (2) portable 60 KW Generators to serve as a back-up power supply for these pump stations. He stated that the following bids were received on September 1, 1999: Carolina Power & Light Company with a total bid of $55,016.00; King Service Group with a total bid of $73,333.00 and Palmer Electrical Contracting, Inc. with a total bid of $82,500.00.

He further reported that staff recommends that the District award the contract to Carolina Power & Light Company in the amount of $55,016.00, contingent upon attorney review and approval. A discussion followed regarding the total number of pump stations; if the District currently has portable standby generators, and how long the pump stations will run without back-up power. Mr. Hartye stated that currently each pump station is equipped with dialers that call the plant when a system is down, but when the new SCADA/telemetry system is in place, the operators will be in constant communication with each system. With no further discussion, Mr. Blackburn moved that the Board award the bid to Carolina Power & Light Company in the amount of $55,016.00, contingent upon attorney review and approval. Mr. Pace seconded the motion. Roll call vote was as follows: 10 Ayes; 0 Nays.

12. Consideration of Cost Participation Project: Sweeten Creek Apartments:

Mr. Mull reported that the proposed Sweeten Creek Apartment project involves the relocation and upgrade of a 6" sewer line crossing the property and will be done at the expense of the developer. He further reported that since the existing 6" line, off-site and downstream, has been identified as a future MSD rehabilitation project, and the development will add an additional flow of 10,100 GPD, the project has been pushed forward with the developer participating in 50% of the estimated cost of $40,480.00. Mr. Spell asked whether the developer would do the engineering plans and bids for the offsite portion of the project. Mr. Hartye stated that the District will do the easements, engineering and bids on the project and the developer will reimburse the District 50% of the total costs. Ms. Graham asked whether the District's participation is based on a not to exceed amount of $20,240.00, or on a participation basis up to 50% of the total costs. Following a brief discussion regarding the wording, Ms. Graham moved that the Board approve up to 50% of the cost of the project. Mr. Pace seconded the motion. Mr. Spell asked how this project would be funded. Mr. Mull stated that since this is not a major sewer rehab project, funds would come out of the CIP contingency line item for FY 99-00. With no further discussion, voice vote was unanimous in favor of the motion.

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13. Consideration of Cost Participation Project - Wind Ridge Apartments - Mountain Housing Opportunities, Inc.:

Mr. Mull reported that the proposed Wind Ridge Apartment project at Eliada Home by Mountain Housing Opportunities, Inc would add 9,000 GPD to MSD's sewerline. He further reported that 2,325 linear feet of existing off-site (6") sewer needs to be rehabilitated/upgraded to an 8" line at an estimated cost of $141,310.00. He stated that staff recommends that the District participate in the cost of this project in a not to exceed amount of $70,655.00. Mr. Spell asked whether this project will go out for public bid. Mr. Clarke stated that since the District is spending less then $100,000.00, advertisement for bid is not required. However, the District can make the public bid laws a condition of participation with private developers and public entities. He further stated that he would do some research on this issue and report back to the Board. With no further discussion, Ms. Graham moved that the Board approve the recommendation of staff. Mr. Pace seconded the motion. Roll call vote was as follows: 10 Ayes; 0 Nays.

14. Consideration of Proposed Cell Tower:

Mr. Mull reported that currently the District has a 100 foot radio tower that is no longer being used and is considering the lease of property to Crown Atlantic near the existing tower to build a monopole tower, provided the issuance of a Conditional Use Permit by the Town of Woodfin. He further reported that in return for the lease, Crown Atlantic will pay the District approximately $1,200 per month and furnish space on the new tower for future use as needed. Mr. Sobol asked if Crown Atlantic can lease space on the new tower. Mr. Clarke stated that the Town of Woodfin may require that space be leased as a condition of the permit, but expressed a concern that the initial term of the lease is for 25 years, with three 25-year renewals. A discussion was held regarding the lease; how it compares with similar leases, and the number of connections that are allowed. Ms. Field stated that only three connections can be placed on the tower and that the District should negotiate for as much money as it can. She further stated that in her opinion the length of the lease is too long and suggested that if the District wants to look at marketing property for additional towers that it contact Metro Management (recommended by the League of Municipalities) to give a presentation on all aspects of the issue. Mr. Clarke stated the lease prohibits location of other towers on the property within a specified distance and from a standpoint of negotiations, it would be helpful to have some input from Mr. Spell on cost comparisons. Mr. Spell stated that other issues include the storage of equipment and provisions in the agreement for other services such as cell phones, pagers, etc. With no further discussion, Mr. Sobol moved that the Board approve proceeding with Crown Atlantic's application for a Conditional Use Permit with the Town of Woodfin and negotiation of the lease, with a recommendation to the Board on site development. Mr. Spell seconded the motion. Voice vote was unanimous in favor of the motion.

15. Consideration of Potential Grant to Replace Tile Roof on CP&L Building:

Mr. Mull reported that because the CP&L Building was approved for the "National Register of Historic Places", it is eligible for additional historic designations. He further reported that the District is applying for a Grant to replace the tile roof, which would be 75% of the difference in cost between the planned metal roof and cost to replace the existing tile roof with duplicate tile. He presented a letter from Architectural Resource Collaborative regarding

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the cost of the tile roof and stated that the 25% cost split to the District is estimated at $22,250.00, with a contingency of $10,000.00. A discussion followed regarding the life of the tile roof compared to the metal roof and the cost estimates provided by the Architects. Mr. Selby suggested that the Construction Committee review the costs involved, with a recommendation to the Board and that a budget report be prepared. With no further discussion, Ms. Field moved that the Board approve submittal of the Grant Application. Ms. Graham seconded the motion. Voice vote was unanimous in favor of the motion.

16. Consideration of Declaration of Intent to Adopt Amendment to the Sewer Use Ordinance - Delegation of Permitting for Sewer Systems:

Mr. Pace reported that the Committee met August 25, 1999 to discuss items previously presented in the Consolidated Motion Agenda. He further reported that in other business, the Committee reviewed the new Right of Way Policy Books, which were updated to add the Project Engineer's position and new procedures for notification to neighborhood associations. Also, the Committee discussed use of prescriptive rights.

Regarding the Quarterly Reports, Mr. Aceto asked why some condemnation amounts are considerably higher then the approved compensation amounts. Mr. Clarke stated that the approved compensation amounts are based on one-half the tax value while amounts deposited for condemnations are based on appraised values, which are generally higher.

Mr. Sobol asked if there is an update on the Kenilworth Project. Mr. Clarke stated that notices of condemnation were sent September 1, and that only one property owner has signed. A discussion followed regarding the time extension; the number of properties involved and re-routing of the project.

Mr. Aceto reported that although the Planning Committee did not meet this month, the Board voted at the August meeting that time would be set-aside at today's meeting to discuss agenda items and format for the Planning Retreat. He

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stated that for purposes of discussion, he recommends that the Board follow the consultants advice and devote a session to planning and consider issues such as how the Master Plan fits into the planning process. He suggested that the Consultants prepare a work session agenda for presentation at the October meeting, with the work session scheduled for late October.

Mr. Selby reported that he, Mr. Sobol, Mr. Mull and Mr. Clarke recently met with two members of the Avery Creek Sanitary District Board, along with their Attorney, Mr. Long and Engineer, Mr. Lyda. He stated that the purpose of the meeting was to discuss the Moratoriums that are in place and to reach some resolution as to the lack of contractual agreement between Avery Creek and the MSD. He further reported that the meeting concluded with the understanding that the District would receive comments regarding the Agreement and that the moratoriums would be lifted when some movement toward resolving the issue was made. He stated that since that meeting three developers have applied for allocations in Avery Creek, with a fourth planning to apply.

Mr. Mull reported that to date, nothing has been done; the agreement has not been looked at and grant applications have not be filed as suggested in their meeting. Mr. Clarke stated that in a conversation with Mr. Long, he promised that a response would be forthcoming. Mr. Mull stated that he expressed a concern to Mr. Padgett about lifting the moratorium prior to resolving the issue of the agreement. He further stated that he is not against growth, but the District does not want to continue with individual contracts. A lengthy discussion followed regarding available grant funds to assist Avery Creek in providing sewer to residential areas currently on septic service, and how the District should proceed in this matter. Mr. Clarke stated that he feels Avery Creek will sign the Agreement and the District should receive comments within the next couple of weeks. With no further discussion, Mr. Selby suggested that no action be taken until Mr. Clarke has received comments from Mr. Long.

In other business, Mr. Selby read a letter of appreciation from Mr. David Gray of Robinson-Humphrey regarding the Board and Staff involvement in the Series 1999 Revenue Bond Issue.

At 3:50 p.m., Mr. Venable moved that the Board go into closed session to consider a personnel matter. Mr. Pace seconded the motion. Voice vote was unanimous in favor of the motion.

At 4:21 p.m., the regular meeting was reconvened.

Mr. Spell moved that the Board accept the recommendation of the Grievance Committee upholding the termination of Donna Sharpe. Mr. Aceto seconded the motion. Voice vote was unanimous in favor of the motion.

None

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