(CORRECTED MINUTES: Pages 18 and 19 should have read that the Mount Pleasant Waterworks Impact Fee amount is $4,990 not $49.90) TOWN OF MOUNT PLEASANT, SOUTH CAROLINA WATER SUPPLY COMMITTEE Monday, October 2, 2017 Municipal Complex, Committee Meeting Room, 3rd Floor 100 Ann Edwards Lane Mount Pleasant, SC 29464

Revised Minutes

Members Present: Mark Smith, Chair, Joe Bustos and Gary Santos Staff: Eric DeMoura, Town Administrator Also Present: Dionna Ebeling, Community Engagement & Communications Director; Terry Hughes, Meter Solutions Supervisor; Susan Mellichamp, Vice Chair, MPW Commission

1. Approval of Minutes from the July 31, 2017 meeting Mr. Santos moved for approval; seconded by Mr. Bustos. All present voted in favor. 2. Public Comments [None] 3. Mount Pleasant Waterworks a. Update on the Advanced Metering Infrastructure Project Dionna Ebeling, MPW’s Community Engagement & Communications Director, stated that they came before Council previously regarding the AMI (Advanced Metering Infrastructure) project. She said that MPW currently has an AMR system, which requires that metering vehicles ride through the Town and collect readings. She stated on the AMR, there have been misreads and repeat visits. Water Supply Committee October 2, 2017 Page 2 of 21

She stated that with new infrastructure, MPW recently launched the AMI project, which officially kicked off in July.

She stated that she would also like to introduce Mr. Terry Hughes, who is new to MPW and is the Meter Solutions Supervisor and has vast experience with AMI and with Senses and is a great asset to the team. Water Supply Committee October 2, 2017 Page 3 of 21

She stated that the next illustration is how the new meters look and the biggest change is now you will see a small antenna out of the top of the cover, which is what MPW relies on to feed information back.

She stated that the following illustration are some of the benefits to their customers.

She stated that the new system will allow them to track how much water they consume hourly. She stated that currently it takes up to 45 days for readings and billing, but this system will allow them to reduce that timeframe. Water Supply Committee October 2, 2017 Page 4 of 21

She added that there are also benefits to MPW and the relationship with their customers.

She stated that one of the things that MPW discussed previously is what concerns they expect to hear.

She stated that this project kicked off in July. She stated there are approximately 4,000 meters that they are requiring to be manually read. She said a portion of the metering device was not delivering the reading back to the truck as they drove by, so they were physically having to send personnel out and get those readings. She said they Water Supply Committee October 2, 2017 Page 5 of 21 wanted to get those meters out of the system first, so they began installing all the new meters there first and this week, they will complete those 4,000 installs.

She stated with the installation of the 4,000 new meters, there have been four landscaping issues. She stated that additionally, there have been four accounts that had issues with their consumption, which were large amounts of usage, and because of the details that the new meters are able to provide, they were able to help those customers discover where those problem areas were. She stated that of the 4,000 new meters, there have been three customer complaints, all solved within 30 minutes by Mr. Hughes.

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Ms. Ebeling stated that some of the photographs are examples of landscaping issues MPW has been faced with; however, in order to resolve some of the landscaping issues, they have partnered with Pleasant Places Landscaping.

She stated that MPW understands that landscaping is important to residents and wanted to be professional when handling these issues. She stated that when meter issues are discovered, MPW has Pleasant Water Supply Committee October 2, 2017 Page 7 of 21

Places Landscaping work with their customers to figure out solutions that will benefit both the customers and MPW. Mr. Santos asked if there is a size difference from the old meter to the new one. Mr. Hughes stated that the meter boxes will remain the same size. He said that MPW will not change the size of the footprint. Mr. Santos asked if there were issues with the antennas being damaged by lawnmowers. Mr. Hughes stated that they have experienced one issue only. Ms. Ebeling stated that the benefit of the new meters is that each morning Mr. Hughes receives a report; therefore, if there is a disconnect in the communication from an antenna, Mr. Hughes will see it first thing in the morning and address it quickly. She stated that MPW’s goal, when faced with issues such as landscaping, is to attempt to work with the customer directly; however, there are times when this may not be possible. She stated that in those cases, there are Town ordinances in place that will assist when dealing with these situations.

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She stated that the most important portion of the new meters being a successful project is communications. She stated that MPW has expanded their communications efforts to their customers.

She stated that information is updated constantly on the MPW website, direct mailings are being sent, as well as postcards. She added that MPW has a “notify me” module similar to the Town’s to sign customers up in phases to push information out to them relative to the metering project via text, email and telephone calls. She also mentioned that social media has also been very successful, and educational videos will also be posted on their website.

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Ms. Ebeling stated that US Bronco Services is the contractor who is helping with the new meter project. She stated that US Bronco Services has moved a project manager to Mount Pleasant to oversee the project. She stated that the contractor is held to strict guidelines, which MPW has been very pleased with. She stated that the following map indicates where MPW will be going next. She added that MPW is completing the 4,000 meters this week, and moving into the cycle 4 portion of their billing cycle, which includes Dunes West and the northern portion of the Town. She stated that they will begin this phase on Wednesday.

Ms. Ebeling stated that this will be a lengthy project and will look to the Town for guidance on how often they would like to see updates. Mr. Santos asked if MPW could provide periodic updates in order to keep apprised in the event residents have questions. Water Supply Committee October 2, 2017 Page 10 of 21

Mr. Smith asked Mr. Hughes if there are ways that the elected officials or staff are able to assist. Mr. Hughes stated that he is also the Chairman for the United States and Canada for AMI and this is his second project. He said the biggest effort is good public communications, which he believes Ms. Ebeling has done tremendously. He stated that the contractors, US Bronco Services, are required to put up a door hanger, prior to his arrival, advising the resident that he will be at the residence. He said that they are also required to again hang a door hanger advising the homeowner that they have replaced the meter or were unable to do so, and list why. He said the biggest issues relate to landscaping and he has personally attempted to visit those that have called and meet with them. He said residents have been very receptive. Kevin Cunnane, 3032 River Vista Way, stated that people have asked about the increase in their water bill. He stated that he recalls during a previous employment that old meters slow down, and when the new meter is replaced, it is more accurate. He asked if this is why people get a higher bill. Ms. Ebeling stated that some of the residents who have asked about higher bills are not on the new metering system. She stated that with the new metering system, Mr. Cunnane is correct, as with older meters, as they age, they under read, and when the new meters are installed, there is a possibility that the residents may see that accuracy improve. She stated that currently it is approximately a 1% difference nationally. She stated that they do educate their customers about this when installing their new meter. She stated that relative to recent concerns of higher than normal water bills, there have been discussions on social media, which MPW follows closely. She stated that one thing MPW does well is document all communications. She said that they also research the customers who reach out to new media or post on social media to see what has happened with their accounts. She said that unfortunately, social media has become the platform for people to say what they want and not necessarily put the Water Supply Committee October 2, 2017 Page 11 of 21

full details. She said that they do have customers that call regarding higher-than-normal bills, which are primarily due to irrigating their lawns. She stated that many of the new neighborhoods have sod installed by a professional and they turn on the irrigation system to run to ensure the grass matures. She said that residents typically do not realize how often the irrigation system turns on and off. She said that they do attempt to educate those customers and said there are also issues with leaks. She said that MPW has so many different ways to assist customers in determining if there is an issue and if so, MPW does allow for adjustments in bills. b. Priority one septic tank abatement, impact fee assistance Ms. Ebeling stated that Mr. Duffie is at a water conference, so she will do her best to fill in. She stated that Mr. Duffie was here a few months ago regarding the number of septic tanks there are in the Town of Mount Pleasant and different ways eliminate those septic tanks. She stated that in the service area and the MPW service area, 1,092 septic tanks still exist, and of those, approximately 273 are in the Town of Mount Pleasant.

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She stated that MPW did a study and research on the septic tanks and the Commissioners put them in priorities, with some being in the County and some in the Town. She stated that the Commissioners recently decided that they wanted to focus on attempting to fund and eliminate septic tanks for Mount Pleasant residents. She stated that this totals approximately 185 septic tanks, and Mr. Duffie discussed with this Committee what the financial impact would be to MPW and their customers. She stated that there was discussion regarding joint funding with the Town to enable both entities to work together to ease the financial burden for the residents affected. She stated that the chart below breaks out what it will take from MPW, what they are requesting from residents and where they are able to obtain assistance. She stated that the impact to eliminate the 185 septic tanks totals approximately $10 million dollars.

She stated that priority #1 area, in blue, is the area that the Commissioners would like to focus on, are those residents in the Town located from Carolina Park down, where those septic tanks currently are located.

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She stated that what MPW is officially here to ask is to work along with the Town of Mount Pleasant to seek offsetting 50% of the wastewater impact fee for those citizens currently on septic tanks. She stated that they propose to use $50,000 annually from the 1% revenue that MPW pays the Town of Mount Pleasant for over ten years. She said for each year $50,000 would come off of the 1% and set aside to assist directly with impact fees for wastewater connections for those customers in the Town, in order to get them off of septic tanks.

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Ms. Ebeling stated that from 2009 to 2016, MPW has paid the Town of Mount Pleasant approximately $2.23 million dollars with the 1% and savings on irrigation. She stated that MPW has contributed $615,000 to the Town in FY2016. She stated that if you look at 2016 and 2017, the delta between the two is approximately $50,300. She stated that this is where their proposal is to capture that delta, put it aside to assist with the impact fees and do this for ten years moving forward. She stated for the Town, the financial impact would be one year, because they will continue to see an increase, but MPW will have that $50,000 in that one year that will impact the Town in the budget. She stated that the benefits for partnering with MPW are as follows.

Ms. Ebeling stated that there are a number of residents on septic tanks who struggle with maintaining them and this creates a public health concern. Mr. Santos stated that some of the issues that the Town has been having on Shem Creek, people, pets and pelicans, are what is causing a great deal of the pollution. He said there was discussion previously about a water quality alert system where people are able to see if it is safe to be in the water. He stated that Mr. Duffie agreed to run the samples if the Town is able to provide the samples. He said that he Water Supply Committee October 2, 2017 Page 15 of 21 would like to discuss with MPW further to move forward with this system going, working with Charleston Waterkeeper and with the three working together, a system should be implemented to notify the public. He said when these septic systems begin to be replaced, there are many people who live further away from the connecting lines. He said that the financial impact is more substantial for those further away than people with the lines closely located. Ms. Ebeling stated that Shem Creek is one of the areas that everyone is concerned with; however, MPW’s vision is for the entire service area. She said that they did look at the areas that currently have infrastructure in front of their properties and have prioritized those that can be taken off septic tanks the quickest. She said there are approximately 63 residents in the Town of Mount Pleasant who have mainline infrastructure directly in front of their property and is it the connection from that line to their home. She added that these are the priority. She said there are residents of the Town in the Snowden area that need to be connected desperately. She said that when there are major rains, the septic tanks flood their yards. She stated that the infrastructure is there, it is just getting them connected. She stated that the map is widespread and MPW is focused on getting everyone off septic systems. She said that while Shem Creek is a major concern, MPW is focused on the entire Town. Mr. Santos stated that he does understand, but mentioned Shem Creek because of paddle boarders, kayakers and children that swim in the creek. He said that he just believes it is important to have a water quality notification for residents and visitors alike. Mr. Santos stated that although funding will still be coming in, the Town will not really be losing. Mr. DeMoura said that the Town will be losing $50,000 a year. Mr. Smith stated that collaborative effort to get the result to the users of Shem Creek is a priority of MPW Commissioners. He said that MPW hears Mr. Santos’ concern and share his concern and action is being taken. Water Supply Committee October 2, 2017 Page 16 of 21

Ms. Ebeling stated that MPW has started conversations internally about how a notification system can work. Mr. DeMoura stated that staff will have ready for Committee next month a report that Council initiated at the cost of $100,000 which studies the watershed area for Shem Creek, which the Town is partnering with Charleston Waterkeeper on. He stated that one of the core issues at stake here is an issue that the Town has been dealing with for a long time. He said that what the Town has is an agency, not a local agency, but a State agency that approves and permits septic tanks and that is it. He said that the same agency turns around and holds localities responsible for the water quality years after when they give up their responsibility to study whether those septic tanks are still performing or not. Mr. Smith stated that Mr. DeMoura makes and excellent point and much like their roads and bridges as well. He said that the State has a track record incumbent of not doing what they need to be doing. He said that going back to the issue at hand, specifically on the request regarding septic tank abatement and impact fees, as the Chairman of the Water Supply Committee for the past four years, it is time for some action. He said that Shem Creek is important; however, he wants to move beyond Shem Creek and focus on the total service area for the Town. He said there are currently 271 in town residents on septic tanks that qualify for connection to MPW’s sewer system and getting off the septic tank. He said that staff did an excellent job with the consultants and presented to the Commissioners the priority list. He said the work is done and the specific request from MPW to the Town is for the Town to step up and assist residences to connect to the MPW sewer system. He said that he supports this initiative and believes it is time with the caveat that the base of the franchise fee that the Town currently has budgeted and needs, recognizing that the Town Administrator is 100% correct that it will be an adverse effect to the Town’s budget to utilize the funding. He stated that if we allow this to happen on the growth at a $50,000 level, which is well covered and not touching the base, based on trend analysis of historical Water Supply Committee October 2, 2017 Page 17 of 21 revenue coming into the Town, the Town is spending resources to benefit residents of the Town. He suggested MPW decide that the grant process is fair, beneficial and open to all residents on a first come, first serve basis. He said once the funds have been depleted, residents will be able to wait for the next grant period the following year. He said that MPW has a CIP just as the Town does and there is not enough funding that MPW has in the bank to pay for all of the line improvements that need to be done today. He said that they have a plan to continue to move us all forward, just as the Town has with stormwater improvements. Mr. Bustos asked what the priority #3 “annex or mandatory connection” is. Mr. Smith stated that priority #3 is where they have not annexed in or the line needs to be extended in order for connection to take place. Mr. Bustos stated that previously there was an issue with Snowden, where water lines were extended and the residents of that community refused to connect and it became a large expenditure for MPW. Ms. Ebeling stated in the 58 septic tanks on priority #3, those customers are contiguous to the Town and have infrastructure in front of them, but are still in the County. She said the issue for MPW is that the County does not have a mandatory connection ordinance. She stated that this is where they are going to look to work with the County to develop language to require mandatory connection, because the infrastructure is already in place. She stated that in MPW’s service area, they are further out on the other priorities that are not being focused on at this time. Those are the customers that are in the County and do not currently have infrastructure. She said that MPW is not focusing on them because of the cost to run the main line. Mr. Bustos stated that he is agreeable with priority #1 and priority #2 who are all Town residents, but not priority #3. Water Supply Committee October 2, 2017 Page 18 of 21

Ms. Ebeling stated that the requirement for Wastewater Service is that you must either annex into the Town of Mount Pleasant or sign an agreement that once they are contiguous, they will annex into the Town. She stated that the $50,000 from the Town will not be utilized towards any funding for anyone that is not in the Town. She stated that this joint venture addresses those citizens that both MPW and the Town serve. Mr. Bustos asked if this is 127 residents as shown in priority #1 and #2. Ms. Ebeling responded in the affirmative. Mr. Santos stated that the septic tanks need to be cleaned up and leave the environment cleaner than when we found it. Linda Page, 1458 Short Street, stated that she has some concerns and questions. She said the biggest concern is that the Town has $500 million dollars in unfunded projects and the Town wants to do what they can to partner with MPW. She said that keeping in mind that ten years of $50,000 may not sound like a large amount, but it will hurt. She stated that there are 63 residents who have access to main lines and asked what that resident may, on average, have to pay for that connection to the main line. Ms. Ebeling stated that currently the wastewater impact fee is $4,990 and they would be required to pay the impact fee and there are also internal administrative fees that are added to the customer’s new bill, in addition to a $30.00 new account fee. She said that once a customer comes onto the wastewater system, they then have a wastewater bill. Mayor Page stated that the average wastewater bill is typically how much. Ms. Ebeling stated that it is approximately $30 per month. Mayor Page stated that she needs to know if MPW is able to waive the $4,990 and not charge any impact fees. She asked if MPW would consider this. She said that we need to be practical in that some septic tanks are failing and not everyone wants to be forced to connect to Water Supply Committee October 2, 2017 Page 19 of 21 the sewer system, which will create an ongoing fee for $30.00 per month. She stated that the ten year term also causes her concern, because of the Snowden incident, which was well intended, but did not work out. She asked if MPW would consider doing a pilot, with MPW waiving the $4,990 or a reduction of it, at least to the match of what the Town would be asked to pay. She said until she hears this from the MPW Commissioners, she will be unable to support this, as important as the water quality is. She would like to be partners together for cleaner water. Mr. Smith stated that some of the Town residents who want to tie in have financial challenges and cannot afford to write that check up front. He suggested some financing terms, which was already a precedent that was set with MPW previously. He stated that some financing options have been discussed and would be welcomed, if the Town would be willing to move forward. Mayor Page stated that it is not all about financing. She stated that if it is $5,000 that is being financed for a certain period, are there interest fees attached to this and MPW is still receiving new revenue of $30 per month for the service. She stated for priority #1, the infrastructure is already there and lines do not need to be expanded. She added that this is simply getting people that are readily available. She said that this is eliminating the impact fees for those, and once she hears the response to this, will discuss further. Mr. Smith asked about those who are annexed into the Town who do not have that infrastructure available and are still waiting. He said that part of their rationale for annexing in was to tie into and receive the services from the Town, including tying into MPW. He said that this conversation also needs to happen equally. Ms. Ebeling stated that Committee members as well as Mayor Page are aware of MPW’s philosophy that growth pays for growth and what those impact fees cover. She said that MPW is looking at ways to help offset the impact fee such as financing. She stated that as far as elimination of impact fees for one resident versus another, in their Water Supply Committee October 2, 2017 Page 20 of 21 cost recover policy and often hear the MPW Commissioners say is being fair and equitable to all MPW customers. She said for that infrastructure to have already been in the ground, there are those that have already paid those impact fees, so if we now go back and eliminate impact fees for others, is MPW being fair and equitable. She said that this is a great discussion to continue to ensure all are 100% clear on where the Commissioners are coming from. Mr. Santos stated that he appreciates the conversations taking place and partnering up together, attempting to find a solution together. Arthur Pinckney, 873 Long Point Road, which is in Snowden. He said that he was born and raised right here in the Town. He said that he has been waiting for a very long time for sewer service. He stated that he has water. He said with all the rain that has been taking place, the septic tank has been coming up in his backyard and he had to have it pumped twice. He said that when looking at the priority list, he would like to know where Snowden is on this list. He said that he has been supporting the Town since he annexed in and has been paying for the service, and asked where his service is. He said the septic tank is hindering him from doing things with his property and house. He appreciates the conversation, but this conversation has been going on for too long. He kept hearing that it is going to happen, but nothing has happened. He said that there are a number of Snowden residents who are annexed into the Town and have been waiting for sewer service patiently. Ms. Ebeling stated that the Snowden residents who are currently in the Town of Mount Pleasant are included as priority #1. She stated that MPW is looking at funding and grant funding currently and are here talking to the Town for assistance. She said that MPW will be coming out to speak to the residents. Mr. Pinckney stated that he hopes the Town and MPW will work together to get sewer lines installed. MPW Commissioner Mellichamp said that the Commissioners are committed to eliminating septic tanks within the Town of Mount Water Supply Committee October 2, 2017 Page 21 of 21

Pleasant and what they are asking for today is for the Town to assist with the $50,000 grant for the citizens of the Town, and so MPW is able to help those citizens with fees. Mr. Bustos stated that he is agreeable with assisting the residents of the Town of Mount Pleasant, but does not wish to commit funding to those in the County until they do annex. He said that he understands that it is $50,000 but would like how those 127 residences that are in priority #1 and #2 are broken out. He would like to see the numbers to see where the $50,000 is going. Ms. Ebeling said that MPW will provide that information. Mr. Santos made a motion to approve the septic tank abatement, impact fee assistance as mentioned and partner up with Mount Pleasant Waterworks for the citizens of the Town of Mount Pleasant at this time only, up to the $50,000 level for in Town residents only; seconded by Mr. Bustos with the understanding that this Committee will receive specific numbers. All present voted in favor. Mr. Smith stated that this is a motion to allow up to a $50,000 per year off of the increased franchise fee amount for septic tank abatement impact fee assistance for in Town residents only, specifically from priority #1 and #2. All present voted in favor. 4. Adjourn There being no further business, meeting adjourned at 10:25 a.m.

Respectfully submitted, Barbara Ashe October 2, 2017