Finance Committee Minutes 7-15-20 with Attachments<\/a><\/p>\nTo read the minutes, please open or download the pdf from the link above, or you may see more below.<\/p>\n
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Brunswick-Glynn County Joint Water & Sewer Commission<\/strong><\/p>\n1703 Gloucester Street, Brunswick, GA 31520<\/strong><\/p>\nCommission Meeting Room<\/strong><\/p>\nWednesday, July 15, 2020 at 3:00 PM<\/strong>\u00a0<\/strong><\/p>\nFINANCE COMMITTEE MINUTES<\/strong><\/h2>\nMEMBERS PRESENT: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nBob Duncan, Committee Chairman<\/strong><\/p>\nDonald Elliott, Commissioner<\/strong><\/p>\nTripp Stephens, Commissioner (via Microsoft Teams)<\/strong><\/p>\nAndrew Burroughs, Executive Director (via Microsoft Teams)<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nALSO PRESENT: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\nBen Turnipseed, Commission Chairman<\/strong><\/p>\nCharles Cook, Commissioner (via Microsoft Teams)<\/strong><\/p>\nLaDonnah Roberts, Deputy Executive Director<\/strong><\/p>\nPamela Crosby, Director of Procurement<\/strong><\/p>\nFrances Wilson, Senior Accountant<\/strong><\/p>\nJanice Meridith, Executive Commission Administrator<\/strong>\u00a0<\/strong><\/p>\nMEDIA PRESENT:\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\nNone<\/strong><\/p>\nCommittee Chairman Duncan called the meeting to order at 3:00 PM.\u00a0\u00a0<\/strong><\/p>\nPUBLIC COMMENT PERIOD<\/strong><\/p>\nThere being no citizens that wished to address the committee, Chairman Duncan closed the Public Comment Period.\u00a0<\/strong><\/p>\nAPPROVAL<\/strong><\/p>\n\n- Minutes from the June 17, 2020 Finance Committee Meeting<\/strong><\/li>\n<\/ol>\n
Commissioner Elliott made a motion seconded by Commissioner Stephens to approve the minutes from the June 17, 2020 Finance Committee Meeting.\u00a0 Motion carried 3-0-0.<\/u>\u00a0<\/strong><\/p>\n\n- Surplus Equipment and Inventory<\/strong> \u2013 L. Roberts<\/li>\n<\/ol>\n
Mrs. Roberts provided a listing of 10 items consisting of trucks and trailers that the JWSC staff has deemed no longer necessary for our mission.\u00a0 We are recognizing those items as ones to be surplused and are requesting authorization for their disposal.\u00a0<\/u><\/p>\n
Commissioner Elliott made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission review and approve the above referenced items be declared as surplus and disposed of in a manner most beneficial to the JWSC.<\/u><\/p>\n
Commissioner Elliott asked if these items are automatically placed on GovDeals for sale.\u00a0 Mrs. Crosby responded yes. \u00a0Commissioner Elliott then asked how that is working for us.\u00a0 Mrs. Crosby replied that it is working very well; and that at the last meeting some camera equipment was approved as surplus of which we have already sold 2 pieces.\u00a0 She added for government surplus this is their clearing house; there is one other site that could be used but GovDeals is the best one so far that we have found to use.<\/p>\n
Motion carried 3-0-0.<\/u><\/p>\n\n- JWSC Pension Addendum \u2013 IRS Approval<\/strong> \u2013 L. Roberts<\/li>\n<\/ol>\n
Mrs. Roberts advised that JWSC has been notified by the Georgia Municipal Employees Benefit System that we must make application to the IRS for a favorable determination letter.\u00a0 This is a periodic application that we must make.\u00a0 The reason for obtaining that letter is important is because it allows the JWSC to deduct contributions that are made to our Defined Benefit Plan, but it allows the participants to defer income taxes on their contributions and to allow their contributions to grow tax deferred until they are distributed from the Plan.\u00a0 Mrs. Roberts stated that in order to request that determination from the IRS there are certain forms that need to be filled out and submitted, and we are requesting that the Commission Chairman be authorized to execute those necessary forms so that we may submit those for this filing.<\/p>\n
Commissioner Elliott made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend to the full Commission that the Brunswick-Glynn County Joint Water and Sewer Commission Chairman be authorized to sign the forms required to facilitate the Internal Revenue Service review necessary to issue a favorable determination letter from the IRS related to the JWSC Defined Benefit Retirement Plan.\u00a0 Motion carried 3-0-0.<\/u>\u00a0<\/strong><\/p>\nDISCUSSION<\/strong><\/p>\n\n- Harrington Warehouse Update<\/strong> \u2013 L. Roberts<\/li>\n<\/ol>\n
Mrs. Roberts said that she is pleased to have the opportunity to recognize Mrs. Crosby and her team for the hard work that they have done in implementing the Warehouse Inventory System.\u00a0 She noted that Mrs. Crosby had provided a timeline for the update.\u00a0 The physical count of all their rolling stock which is their trucks and their warehouse was completed by June 26th<\/sup>, and they have uploaded that data into the City Works Tracking System as of July 1st<\/sup>.\u00a0 They have completed construction of office space for the inventory team to reside and this was completed on July 2nd<\/sup>.\u00a0 They now have staff rotating between the Harrington warehouse and the Academy Creek warehouse, and they have already placed their initial replenishment order; that occurred on July 10th<\/sup>.\u00a0 In a short period of time they have had a lot of activity, but it has been activity leading up to them being able to do that. \u00a0The team has faced a lot of physical work, some technological challenges, but they have had great team coordination and communication.\u00a0 Mrs. Roberts said she wanted to recognize them for that and for their accomplishment.\u00a0 She added that they have loaded all of this information into the City Works System and into Innoprise, our financial system, and they have recognized an inventory variance of approximately 9.7% which amounts to $46,672.\u00a0 That is out of a warehouse value of $479,229.36, which will be recorded in our financial statements.<\/p>\nMrs. Crosby agreed that the team had a few technical challenges and they are still trying to work through those with our network.\u00a0 She added that for the most part, we have our feet on the grounds, we are there and the guys have gotten used to us being there.\u00a0 We have placed the first replenishment order, but we have not run out of anything, and that is good.\u00a0 We did surplus some items.\u00a0 All things are off to a good start so far.<\/p>\n
Commissioner Duncan asked about the inventory of the rolling stock in vehicles and if those are still accounted for as \u201cin stock\u201d items.\u00a0 Mrs. Crosby responded that City Works does allow them to manage multiple storerooms, and each truck will be its own storeroom, so when the parts cross the threshold of the physical warehouse itself they will transfer to a truck, and from the truck through the work order process those parts will be used from that inventory.\u00a0 This allows them to keep rolling stock on the truck which alleviates their having to come back, and for an emergency response they do have some of the basic items they will need on the truck.\u00a0 Commissioner Duncan then asked if on a truck by truck basis if a similar stocking level is maintained.\u00a0 Mrs. Crosby replied that for Water Distribution Division trucks they do have some stock that is similar, and she gave an example of one truck that responds to more fire hydrant needs and they have stock for that.\u00a0 She added that within a few thousand dollars, each truck has about the same value of inventory, and for similar items that each truck has a specific number of basic things they will need.\u00a0 Each truck carries between about $8,000 and $10,000 of inventory, and with 5 trucks they have about $50,000 of rolling stock that is outside of the walls of the warehouse.\u00a0 Commissioner Duncan then asked about how security is managed, or managing the inventory on a truck by truck basis.\u00a0 He commented that we transition from \u201cin the bin\u201d on the truck to where it is now in the ground, and asked what is being done there for checks and balances to maintain the inventory count proper. \u00a0\u00a0Mrs. Crosby said that the trucks will be rotated and come in for a cycle count and compare what the count says compared to what inventory the system says they should have.\u00a0 This is done through the work order process.\u00a0 She noted that the one thing that is done different at the Harrington location versus what is already in place at the Academy Creek location is that at Academy Creek the inventory is transferred straight to a work order and staff will create rolling stock at that location next.\u00a0 There are only 5 trucks at Harrington making it the best place to start the practice of rolling stock, and then do the same at Academy Creek where they have 3 times the number of trucks.\u00a0 Commissioner Duncan then asked about the period of the cycle counts.\u00a0 Mrs. Crosby stated that they are looking at once per month, but at this time they will do it every 2 weeks to check for any big issues.\u00a0 She added that they already informally do cycle counts on a routine basis, for example when it is a rainy day they may come in and count trucks.\u00a0 She said they have been put on a schedule, which is actually how they load their trucks each week and with 5 trucks a different truck comes in and stocks each day of the week instead of all 5 coming each and every day all at the same time.\u00a0 Commissioner Elliott then asked who does the count of the trucks, and Mrs. Crosby replied that the truck will come in and the technicians and the truck crew will do the count together.\u00a0 She added that a listing of the inventory will be printed out for use in checking the inventory of about 70 items on each truck.\u00a0 Commissioner Duncan commented that directionally he thought this was the way to go and would like to have an update in about 3 months on how the inventory system is working out.\u00a0<\/strong><\/p>\n\n- Financial Statements Month End June 30, 2020 <\/strong>\u2013 L. Roberts<\/li>\n<\/ol>\n
Mrs.\u00a0 Roberts provided that the preliminary year end statements for Fiscal Year 2020 will be reviewed on this financial report for month ending June 30, 2020.\u00a0 After the audit is done there will be some adjustments made so some numbers will change from what is reviewed on the current report.\u00a0 Mrs. Roberts provided some highlights of the Financial Statements for the month ending June 30, 2020 for the Finance Committee.\u00a0 In the Assets section of the Balance Sheet she noted the Bond Sinking Fund was back down to $625K for year-end since the bond payment was made during June.\u00a0 Accounts Receivable were down from $2.4M on June 30, 2019 to half that at $1.2M on June 30, 2020.\u00a0 Construction in Progress increased when the 2019 year ended with $8.8M is compared with the 2020 year ending at $13.5M.\u00a0 In the Liabilities section Mrs. Roberts commented that the Net Pension Liability value was indicated to be at $2,818,580.00 at year end for 2020, and appears to be the same as year ending 2019.\u00a0 She provided that this Net Pension Liability value for year ending 2020 would be adjusted by the auditors using the numbers reported from the Actuarial.\u00a0 At this time, the Net Position for year ending 2020 is at $150,922,092.00, which will change due to adjustments to be made during the 2020 audit process. The net position for year ending 2019 finalized at $139,218,404.00, which when compared with the current value for 2020 indicates that JWSC gained in its net position during the Fiscal Year 2020.\u00a0 Some of the values on the financial reports for Fiscal Year 2020 will be adjusted through journal entries by the external auditors.\u00a0 The Combined Revenue Statement was then briefly highlighted.\u00a0 Commissioner Duncan commented that the expenses appear to be low (compared to budget), and asked if this was positive or is it from delaying work.\u00a0 Mr. Burroughs provided that the sludge hauling costs have gone down about $300,000.00 during 2020, in addition to electrical savings at a few pump stations incurred by improvements in the system.\u00a0 The Project Report was also briefly reviewed and Mrs. Roberts noted some of the projects with activity, and advised that the completed projects will drop off from this FY2020 report to the next one which will be the first Project Report for Fiscal Year 2021.<\/p>\n
Committee Chairman Duncan gave kudos to the team for their hard work dealing with everything that has been going on, and for JWSC landing financially where it needed to be at the end of the fiscal year.\u00a0 He also thanked Mr. Burroughs and Mrs. Roberts for their leadership and efforts in everything, from the sludge hauling project which was a significant contribution to the operating expense reduction.\u00a0 Commissioner Duncan also acknowledged Mrs. Crosby starting on the materials management, and that he believes this will really pay dividends as JWSC goes through building that operational discipline at the crew level, not just the warehouse level.\u00a0 He added that through this project, Mrs. Crosby\u2019s team is paying financial dividends that will benefit every customer in our community. \u00a0Also as JWSC becomes more and more disciplined financially as we execute these major Capital Projects that are funded from SPLOST, that also in my view puts a lot of credit your way in confidence from the tax payers that are supporting the SPLOST funding.\u00a0 Commissioner Duncan thanked everyone for that.<\/p>\n
Committee Chairman Duncan asked if there were any other items to discuss.<\/p>\n
There being no further business, Chairman Duncan adjourned the meeting at 3:25 p.m.<\/p>\n","protected":false},"excerpt":{"rendered":"
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, July 15, 2020 at 3:00 p.m. in the Commission Meeting Room. Finance Committee Minutes 7-15-20 with Attachments To read the minutes, please open or download the pdf from the link above, or you may see more below.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[18],"tags":[],"class_list":["post-19450","post","type-post","status-publish","format-standard","hentry","category-finance-committee-minutes"],"_links":{"self":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts\/19450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19450"}],"version-history":[{"count":0,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts\/19450\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}