Mr. Hartye reported that the Finance Committee met to consider industrial rates and to hear a presentation by Mr. Daryl Parker of SVBK Consulting Group, who presented preliminary results of a rate study. Mr. Hartye stated that MSD's rate structure is quite different than other municipalities and that the study shows the magnitude of existing rate inequities between customer classes (domestic and industrial). As a result, SVBK recommends increasing the flow rates for the industrial class over the next five (5) years to obtain parity with the domestic class. Because staff felt a five-year plan was too aggressive, a twelve-year plan was developed and presented to the Finance Committee. The Finance Committee directed staff to present this information to industrial users and the Chamber of Commerce for input and report back to the Board. Mr. Hartye further stated a meeting was held March 28, 2001 with industrial representatives who expressed the need to have these changes spread over an even longer period of time. He presented a copy of 5-year, 12-year and 20-year plans, which include sewer rates, revenue, expenditures and cash flow analysis and gave a brief review of each. Ms. Field asked how the BOD and TSS Rate/lb are arrived at. Mr. Hartye stated that it was obtained through testing. Mr. Venable asked what the limit on BOD means. Mr. Hartye explained when the BOD is over 30mg/l there is a charge of $0.41.1/lb., which is added to the cost of flow. A discussion followed regarding whether this is revenue neutral and how assumptions were made.

Mr. Blackburn called on Mr. Larry Casper of Lustar Dyeing and Finishing and Mr. Dave Porter of the Asheville Area Chamber of Commerce for comments.

Mr. Casper presented a copy of Lustar's March bill, which hecompared to the other municipalities studied. He stated that of the ten municipalities studied, MSD is not the lowest rate system in the State, but the second lowest. Mr. Hartye explained the comparison was for the entire industrial class as a whole, not just Lustar. Mr. Casper stated that he feels there should be parity between domestic and industrial rates, but the time frame is the issue. He further stated that the twenty-year plan is the fairest and requested the Board and staff consider this plan in lieu of the five and twelve-year plans. Ms. Field asked why the Committee made a policy decision for parity between domestic and industrial rates. Mr. Casper stated in his opinion there is a difference in the cost of service, in that it's cheaper to serve a large volume user than a domestic user. He further stated that from a budgetary and planning standpoint, it's easier on industry to have a constant number each year over a twenty-year period. Mr. Clarke stated that in the past, MSD went back and determined the cost of treating each industry's waste the previous year. Based on that analysis, the industry received a rebate or was surcharged. A brief discussion followed.

Mr. Porter stated that he was present at today's meeting to represent not only the Asheville Area Chamber of Commerce, but also the Buncombe County Economic Development Commission. He reported that over the past eight years, the area has experienced over 50 plant closings or layoffs, impacting over 9,000 people. He stated that because Western North Carolina has satellite manufacturing operations, corporate staff would locate expansions in other locations if the area's overall cost of doing business were not competitive with it's sister plants. He addressed other factors that impact a company's decision on where to locate and urged the Board to listen to the needs of industry so they can remain competitive.

Mr. Blackburn voiced his concern for industry and expressed his appreciation to Mr. Casper and Mr. Porter for their comments. Mr. Venable stated the District must consider other factors besides costs, such as the environment, clean water, rivers, reduced overflows, etc. Mr. Blackburn asked whether the Asheville Chamber of Commerce or the Buncombe County Economic Development Commission made any recommendations regarding this issue. Mr. Porter stated that they have not been asked to take a position, but are interested in the concerns of industry, since the area must rely on existing industry for growth. A discussion followed with regard to weather the rate per/lb of BOD & TSS would increase in the future and if commercial users are charged domestic rates. Mr. Pace expressed his appreciation to Mr. Casper and Mr. Porter for their comments, and stated that although something must be done, the District wants the impact to be as low as possible. With no further discussion, Mr. Venable moved that staff meet with industry, prior to approval of the Budget, for input on the twenty-year plan. Mr. Pace seconded the motion. Voice vote was unanimous in favor of the motion.

Mr. Venable reported the Personnel Committee met March 28, 2001 to hear a presentation by Ms. Kiser on the Personnel Annual Report, which includes information on employee turnover, training, and the Wellness program. He pointed out that since last April, there were four (4) terminations for cause and ten (10) voluntary resignations, which is a turnover rate of less than 10%. He further reported the Committee met today to discuss pay increases, which would be presented to the Finance Committee on April 25, 2001 and to the Board in May.

Mr. Hartye reported the Planning Committee met April 5, 2001 to consider an MSD Learning Center and the following options were presented:

He further stated the Committee recommends Option C, and that an attempt be made to obtain grant money for future renovation of the existing facility.

In other business, he reported the Committee reviewed information regarding Line Cleaning Contracts and recommends award of a contract to Compliance EnviroSystems in the amount of $555,977.30.

Mr. Hartye reported that the CIP Committee met April 17, 2001 to hear a presentation by Camp Dresser & McKee on the Master Plan and to consider the CIP Budget Plan. He stated the Committee recommends adoption of the five-year CIP Budget Plan, with rate increases kept to 4% per year, and subject to the financial constraints of the District.

Mr. Hartye presented the following Consolidated Motion Agenda Items:

With no discussion, Mr. Venable moved that the Board approve the Consolidated Motion Agenda as presented. Mr. Pace seconded the motion. Roll call vote was as follows: 6 Ayes; 0 Nays.

Mr. Venable noted the substantial savings on line cleaning as a result of work being done by System Services.

Mr. Pace moved for adjournment at 3:48 p.m. Mr. Venable seconded the motion. Voice vote was unanimous in favor of the motion.

Jackie W. Bryson, Secretary/Treasurer