Finance Minutes 10-20-21 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 Joint Water & Sewer Commission<\/strong><\/p>\n1703 Gloucester Street, Brunswick, GA 31520<\/strong><\/p>\nCommission Meeting Room<\/strong><\/p>\nWednesday, October 20, 2021 at 3:00 PM<\/strong>\u00a0<\/strong><\/p>\n\u00a0<\/strong>\u00a0<\/strong><\/p>\nFINANCE COMMITTEE MINUTES<\/strong><\/p>\n <\/p>\n
MEMBERS PRESENT: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bob Duncan, Committee Chairman<\/strong><\/p>\nCharles Cook, Commissioner<\/strong><\/p>\nAndrew Burroughs, Executive Director<\/strong>\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 Ben Turnipseed, Commission Chairman<\/strong><\/p>\n\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 LaDonnah Roberts, Deputy Executive Director<\/strong><\/p>\n\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 Frances Wilson, Accounting Manager<\/strong><\/p>\n\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 Janice Meridith, Executive Commission Admin.<\/strong><\/p>\n\u00a0<\/strong>ABSENT:\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 Tripp Stephens, Commissioner<\/strong><\/p>\n\u00a0<\/strong>MEDIA:\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 None Present<\/strong><\/p>\n <\/p>\n
Committee Chairman Duncan called the meeting to order at 3:00 PM.<\/p>\n
Committee Chairman Duncan appointed Commission Chairman Turnipseed to serve as a member on the Finance Committee this day in lieu of Commissioner Stephens\u2019 absence.<\/p>\n
\u00a0<\/strong>PUBLIC COMMENT PERIOD<\/strong><\/p>\nChairman Duncan opened the Public Comment Period.<\/p>\n
There being no citizens that wished to address the Committee, Committee Chairman Duncan closed the Public Comment Period.<\/p>\n
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APPROVAL<\/strong><\/p>\n\n- Minutes from the September 15, 2021 Finance Committee Meeting<\/strong><\/li>\n<\/ol>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to approve the minutes from the September 15, 2021 Finance Committee Meeting.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
\u00a0<\/strong><\/p>\n\n- FY2020-2021 Financial Audit Presentation\/Approval<\/strong> \u2013 Trey Scott, Mauldin & Jenkins<\/li>\n<\/ol>\n
Mr. Trey Scott with the auditing firm of Mauldin & Jenkins presented the auditors\u2019 opinion of JWSC\u2019s Financial & Compliance Audit for Fiscal Year 2020-2021to the Finance Committee.\u00a0 First he provided a brief introduction to the firm of Mauldin & Jenkins.\u00a0 Mr. Scott then highlighted the auditors\u2019 findings and opinion.\u00a0 He stated that a clean opinion was determined, JWSC staff did a great job and provided everything as required, there were no findings to report, and there were no management points necessary for discussion.\u00a0 No auditor adjustments were needed, there were no disagreements with staff, and no issues found.\u00a0 A strong balance sheet was reported and JWSC had a good current year of operations.\u00a0\u00a0 Great cash flows from Operations were noted.\u00a0 Reinvesting into the system is a definite positive for JWSC.\u00a0 The auditors also determined that staff maintains good practices in required communications.\u00a0 Mr. Scott completed his presentation by updating the committee on additional services Mauldin & Jenkins provide to their customers.<\/p>\n
Commissioner Turnipseed made a motion seconded by Commissioner Cook to move that the Finance Committee recommend the full Commission accept the Financial Audit for Fiscal Year 2020-2021.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
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\n- Fiscal Year 2021 Year End Transfer<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs informed the committee that the audited financial statements from Fiscal Year 2021 show a Net Operating Revenue for the fiscal year of $2,131,921.\u00a0 Operating revenues for the year were $33,222,951 against operating expenses of $20,590,331 and non-operating expenses of $10,189,120.\u00a0 He noted that non-operating expenses include debt service and interest payments, bad debt expenses, and planned reserve transfers to the Repair and Replacement Reserve and Capital Reserve.\u00a0 As a result of effective management of operational funds, JWSC has positioned itself to be able to transfer funds to their elective reserves.\u00a0 Changes in Group Health Insurance, difficulties filling open positions throughout the pandemic, and a significant reduction in training opportunities due to the pandemic created personnel savings exceeding $900,000.\u00a0 Mr. Burroughs also stated that other areas where significant savings were realized include Investment Fees, Pump Station Electricity, Odor Control, Improved Maintenance Practices, and Legal Fees.\u00a0 These line items\u2019 savings total nearly $700,000.\u00a0 Based on current cash balances and projected upcoming cash needs, JWSC staff is comfortable recommending a total transfer amount of $1,700,000.\u00a0 Staff recommended the following actions be taken with the year-end transfer amount of $1,700,000:<\/p>\n
\n- Transfer Savings from Group Insurance into the Group Insurance Reserve in the amount of $300,000;<\/li>\n
- Contribute Savings from Combined Personnel Cost Line Items to the BGJWSC Retirement Plan to reduce the unfunded liability in the amount of $300,000; and<\/li>\n
- Transfer Savings from Operational Line Items to the Repair and Replacement Reserve in the amount of $1,100,000.<\/li>\n<\/ul>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission authorize the transfer of $300,000 to the Group Insurance Reserve, $300,000 to the Brunswick-Glynn Water and Sewer Retirement Plan, and $1,100,000 to the Repair and Replacement Reserve from net operating revenue generated in Fiscal Year 2021.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
Commissioner Duncan reiterated for clarity that this amount is dollars that were budgeted for significant expenses, and due to the specific savings noted above, this excess in revenue is available.\u00a0 COVID limited our ability to spend budget amount.\u00a0 This is not a savings or gain from revenues.\u00a0 JWSC did not have the opportunity to spend these budgeted amounts, and this is not anticipated to be the same in the future.<\/p>\n
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\n- Dunbar Creek WPCF Design\/Build Contract Award<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs recalled for the committee that this approval item was discussed just earlier in the Facilities Committee Meeting.\u00a0 He noted that the JWSC has identified a list of improvements needed at the Dunbar Creek Water Pollution Control Facility.\u00a0 These improvements include the following areas:\u00a0 RAS flow control, aeration systems and controls, clarification capacity, UV disinfection capacity, tertiary filtration capacity, odor control, wastewater reuse systems and entrance roadway improvements.\u00a0 The project is to be designed and constructed in two phases using the progressive design\/build delivery method.\u00a0 The three proposals received on September 28, 2021 were reviewed and scored by a three member panel with representation from JWSC Operations, Engineering, and the Senior Leadership teams.\u00a0 BRW Construction Group, LLC received the highest average score of 93.\u00a0 Phase One services from BRW Construction Group, LLC will cost $53,300.00.\u00a0 The proposed overhead and fee percentages that will be added to all Phase Two services, if awarded, will be 11% and 10% respectively.\u00a0 Phase One is to be funded from the R&R Reserve Project Number 2106.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Phase One Services for the Progressive Design\/Build Services for Dunbar Creek WPCF Rehabilitation to BRW Construction, LLC in the amount of $53,300.00.\u00a0 Motion carried 3-0-0.\u00a0 <\/u><\/p>\n
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\n- Academy Creek Influent VFD Replacement<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs informed the committee that the influent pumping station at Academy Creek takes flow from the gravity collection system and pumps into the plant processes.\u00a0 There are 4 influent pumps and each of these are operated by Variable Frequency Drives (VFDs) to allow for speed control and in-rush control.\u00a0 Mr. Burroughs further noted that currently, 2 of these VFDs are inoperable.\u00a0 One pump is not in the wet well at this point as it had to be sent for repairs.\u00a0 A third pump is operating only in on\/off mode and must be turned on manually.\u00a0 These VFDs need replacing and the other 2 are nearing the end of their useful life. \u00a0Mr. Burroughs provided that staff solicited quotes from 3 electrical contractors for the replacement of the VFDs, and then requested a quote from the contractor currently performing the overall plant upgrade at Academy Creek.\u00a0 All four quotes were provided using the same VFD model.\u00a0 Pump and Process Equipment\u2019s quote was the lowest apparent bid as seen on the memo provided to the committee.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract to Pump and Process Equipment for the replacement of 4 VFDs at the Academy Creek influent pumping station in the amount of $91,988.00.\u201d <\/u><\/p>\n
<\/p>\n
\n- North Mainland Water Loops Engineering Contract Award<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs provided that in the North Mainland District, there are existing areas within the water system that are isolated and challenged to provide adequate pressure on a continuous basis for the daily water demand in an event of a water main break.\u00a0 Cross connecting within the water system by looping will increase coverage for critical fire protection and allow for residential and commercial owners to have reliable and ample access to a dependable water source managed by the JWSC.\u00a0 Design and construction management services are needed at this time to meet the next overall project milestone.\u00a0 Mr. Burroughs described the three project locations where the loops will be designed:<\/p>\n
\n- Approximately 1,100 LF of proposed water line loop on Hautala Drive connecting existing 12-inch on Cate Road to existing 16-inch on Old Jesup Road.<\/li>\n
- Approximately 1,100 LF and 3,000 LF of proposed water line loop on Bailey Road and Old Jesup Road connecting existing 12-inch Perry Lane Road to existing 8-inch stub out near the intersection of Old Jesup Road\/New Jesup Road and 16-inch stub out near the intersection of Lillie Way\/Old Jesup Road.<\/li>\n
- Approximately 500 LF of proposed water line loop connecting existing 8-inch stub out on Millenium Blvd. to stub out near the intersection of Perry Lane Road\/Venture Drive.<\/li>\n<\/ul>\n
A three member panel with representation from JWSC Operations, Engineering, and the Senior Leadership teams reviewed and scored each of the 8 proposals received.\u00a0 Four Waters Engineering, Inc. was the highest scoring proposal at 90.7.\u00a0 Funding will come from the R&R Reserve Project Number 2103 as part of the 2021 Capital Projects Plan.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Engineering Services to Four Waters Engineering in the amount of $214,000.00 for North Mainland Water Loops Project.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
<\/p>\n
\n- PS4044 Engineering Contract Award<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs advised the committee that JWSC had previously received an Unsolicited Proposal from a developer who was part-way through the engineering phase of their project and decided not to complete their project.\u00a0 JWSC staff received an engineering and construction administration services proposal letter dated September 30, 2021, from Lovell Engineering Associates, PC which included the proposal request for funding and time in the Contract lump sum amount of $71,750.00 with the 145 days for design services and six months expected for construction duration.\u00a0 The Engineering Consultant is responsible for quality and complete of bid-ready (permit approved) design package as requested by JWSC for construction project advertisement.\u00a0 Mr. Burroughs noted the items included in the Scope of Services.\u00a0 The Engineering Consultant shall assist the JWSC in securing, evaluating, and awarding the successful bid for the construction of the Project based upon the Construction Documents.\u00a0 The Engineering Consultant shall also provide professional services during construction to assist in obtaining a complete project in accordance with the purpose and intent of the Construction Division.\u00a0 Mr. Burroughs stated that after reviewing the proposal, staff recommended moving forward with an award to Lovell Engineering Associates, PC in the amount of $71,750.00.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Engineering Services to Lovell Engineering Associates, PC in the amount of $71,750.00 for Pump Station 4044 Rehab Project.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
<\/p>\n
\n- Leak Adjustment<\/strong> \u2013 A. Burroughs<\/li>\n<\/ol>\n
Mr. Burroughs provided that the UGA Marine Extension Service requested a leak adjustment due to a water leak at their offices located at 715 Bay Street. They did have Rooter Express repair the leak and their usage has returned to normal levels.\u00a0 This location still has one of the older water meters, therefore JWSC was not able to forewarn them of the excess usage within 24 hours.\u00a0 JWSC is replacing all water meters within the system as part of the current Meter Replacement Program, which will allow forewarning customers of excessive usage levels.\u00a0 Staff has reviewed this leak adjustment request and has determined it should be granted to the customer in the calculated amount of $6,040.23.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission approve the leak adjustment in the amount of $6,040.23 to the account of Marine Extension Service as presented.\u00a0 Motion carried 3-0-0.<\/u><\/p>\n
\u00a0<\/strong>\u00a0<\/strong><\/p>\nDISCUSSION<\/strong><\/p>\n\n- Financial Statements Month End September 30, 2021 <\/strong>\u2013 F. Wilson<\/li>\n<\/ol>\n
Mrs. Wilson presented the financial statement for the month ending September 30, 2021.\u00a0 As a first note, she mentioned that the Balance Sheet will have the corrected date at the next reporting period since the financial audit has now been completed, and then proceeded to review the Balance Sheet accounts highlighting current assets and liabilities.\u00a0 It was noted that the Accrued Liabilities were at the current level of $182,350 due to the group insurance claims that have not been filed or paid.\u00a0 Mrs. Wilson also briefly reviewed line items such as operating revenues and operating expenses on the Combined Revenue Statement.\u00a0 Mention was made regarding the vehicles on order that have lead times of 40 weeks or more, and their costs will remain in the encumbrance value until received.\u00a0 Mrs. Wilson also reviewed the Supplemental Schedule of Cash Balances (which included a summary section as previously requested), the Project Report and Reserves.<\/p>\n
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Committee Chairman Duncan asked if there were any other items to discuss.<\/p>\n
<\/p>\n
There being no further business, Chairman Duncan adjourned the meeting at 3:40 p.m.<\/p>\n
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__________________________\u00a0\u00a0 <\/u>_<\/p>\n
Bob Duncan, Committee Chairman<\/p>\n
Attest:<\/p>\n
\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 <\/u>__<\/p>\n
Janice Meridith,<\/p>\n
Executive Commission Administrator<\/p>\n","protected":false},"excerpt":{"rendered":"
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, October 20, 2021 at 3:00 p.m. in the Commission Meeting Room. Finance Minutes 10-20-21 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":6,"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-30066","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\/30066","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\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30066"}],"version-history":[{"count":0,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=\/wp\/v2\/posts\/30066\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goldenisleslepc.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}