Finance Minutes 03-19-2025 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
Brunswick-Glynn Joint Water & Sewer Commission<\/strong>
\n1703 Gloucester Street, Brunswick, GA 31520<\/strong>
\nCommission Meeting Room<\/strong>
\nWednesday, March 19, 2025, at 3:00 PM<\/strong><\/p>\nFINANCE COMMITTEE MINUTES<\/strong><\/p>\nMEMBERS PRESENT: Commissioner Clayton Watson, Committee Chairman<\/strong>
\nCommissioner Chuck Cook<\/strong>
\nExecutive Director Andrew Burroughs<\/strong><\/p>\nABSENT: Commissioner Bill Edgy<\/strong><\/p>\nALSO PRESENT: Ben Turnipseed, Commission Chairman<\/strong>
\nLaDonnah Roberts, Deputy Executive Director<\/strong>
\nDavid Owens, Director of Finance<\/strong>
\nPam Crosby, Director of Procurement<\/strong>
\nChrista Free, Procurement Coordinator<\/strong>
\nFred McGinty, Oakbridge Insurance<\/strong><\/p>\nMEDIA PRESENT:<\/strong> None
\nCommittee Chairman Watson called the meeting to order at 3:00 p.m.<\/p>\nPUBLIC COMMENT PERIOD<\/strong>
\nCommissioner Watson opened the Public Comment Period. There being no citizens that wished to address the Committee, Commissioner Watson closed the Public Comment Period.<\/p>\nAPPROVAL<\/strong><\/p>\n1. Minutes from February 19, 2025, Finance Committee Meeting<\/strong>
\nCommissioner Cook made a motion seconded by Commissioner Watson to approve the minutes from the February 19, 2025, Finance Committee Meeting. Motion carried 2-0-0.<\/p>\n2. FY26 Property and Liability Insurance Renewal<\/strong> \u2013 A. Burroughs\/F. McGinty
\nMr. Burroughs explained that BGJWSC\u2019s insurance coverage is under a suite of coverage packages with multiple carriers that is updated around this time every year. The two main pieces are the property insurance and the liability package, which includes auto liability. JWSC saw a fairly significant jump in the liability package, almost a 20% increase, which was mostly offset by a reduction in the property package, a 4% reduction. Total cost increase this year is $9,154, for a total premium for the six lines of coverage of $724,386. A summary sheet was provided that included the different coverages and limits that JWSC has, as well as a detailed proposal provided by Mr. Fred McGinty with Oakbridge Insurance. The information provided included the automobile schedules, property schedules, etc. Mr. Burroughs introduced Mr. McGinty and opened the floor for questions.<\/p>\nCommissioner Watson posed some questions related to automobile coverages and deductibles. He and Mr. McGinty discussed various options, and Mr. McGinty offered to bring additional information to the Commission meeting on March 20.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Watson that the Finance Committee recommend that the full Commission approve insurance renewal rates for each coverage category and insurer as listed in the attached 2025 Property and Liability Insurance Premium Summary. Motion carried 2-0-0.<\/p>\n
3. Contract Award \u2013 SPLOST Exit 29 WPF & EST \u2013 Div 2<\/strong> \u2013 A. Burroughs
\nMr. Burroughs reminded the Board that in January 2025 JWSC awarded bids for Division 1 and Division 3 of this project. The work was bid as three separate Divisions. Division 1 was a conversion of a fire well into a water production facility through the addition of treatment chemicals and a ground storage tank. Division 3 was for some distribution system improvements to loop some neighborhoods more effectively and stop them from being single-fed. Division 2 is for the construction of a 500,000 gallon elevated storage tank. When JWSC bid all three together, no bids were received for Division 2. Initially, JWSC allowed for three different styles of water tanks to be included. When the work was rebid, JWSC narrowed it down to just the composite style tank, and two bids were received. Bids were received on March 6, 2025. The low bid was from Landmark Structures at $7,767,000 for the construction of Division 2. Thomas & Hutton, the Engineer of Record, had a $9.6 million Opinion of Probable Cost on Division 2. This will, if awarded, consume the bulk of the remaining Tier One SPLOST funds awarded at SPLOST 2022. There will be $361,942 uncommitted for SPLOST 2022 funding for Tier One. A letter of recommendation to award this contract to Landmark Structures from Thomas & Hutton is attached to the memo, as well as a bid tab. A mathematical error was discovered in the Caldwell Tanks bid. That was adjusted, but it did not impact who the low bid was on the contract.
\nConsidering the values of this item plus item three on our agenda (construction phase services contract for this work and the other two divisions), if both contracts are awarded at the values shown, JWSC will exceed the allotted SPLOST Tier One funds. JWSC does have the potential for, if collected, an additional $2 million in SPLOST Tier Two funding from Glynn County, if collected, which appears likely. The BGJWSC logo will be displayed on at least one side of the tank, and it will be visible from I-95.<\/p>\nCommissioner Cook made a motion seconded by Commissioner Watson that the Finance Committee recommend awarding a contract to Landmark Structures, LLC in the amount of $7,767,000.00 for Division 2 of the Exit 29 Water Production Facility & Elevated Storage Tank project. Motion carried 2-0-0.<\/p>\n
4. Contract Award \u2013 SPLOST Exit 29 WPF & EST Construction Phase Svcs.<\/strong> \u2013 A. Burroughs
\nOn April 20, 2023, JWSC awarded a contract for design, engineering and bid preparation to Thomas & Hutton for engineering services for the SPLOST Exit 29 Water Production Facility and Elevated Storage Tank project. Mr. Burroughs stated that, at that time, a percentage of construction cost was requested for the construction phase services, such as submittal reviews, and payout reviews as well as onsite observation of the construction. Thomas & Hutton’s percentage at the time of that RFP was 3%. However, at the time of that solicitation, the project was intended and written into the RFP as being awarded under one contract. Since this work is now separated into three separate contracts with three separate vendors, Thomas & Hutton has requested an adjustment to 3.8%, as allowed by their engineering contract, for the construction phase services. Based on the total cost of the project being $12,825,011, 3.8% of that is $487,350. JWSC did have to re-bid Division 2 as previously described, and there were some permitting fees that were not included in the original proposal. The total cost, including the rebid and the permitting fees, for this request is $493,608. Again, this would commit all of the Tier One funding and $131,666 of the Tier Two SPLOST funding.<\/p>\nCommissioner Cook made a motion seconded by Commissioner Watson that the Finance Committee recommend awarding a contract to Thomas & Hutton in the amount of $493,608 for construction phase services for the Exit 29 Water Production Facility & Elevated Storage Tank project. Motion carried 2-0-0.<\/p>\n
5. Contract Award \u2013 Academy Creek WCPF Sludge Dryer Repairs<\/strong> \u2013 A. Burroughs
\nJWSC operates a Fenton sludge dryer at Academy Creek. Mr. Burroughs explained that Fenton is no longer in business, so JWSC is unable to buy a Fenton dryer. Trying to find parts has been very challenging, and with the improvements JWSC is making at Academy Creek, significant stress has been put on the dryer that previously was not placed upon it. JWSC has run into some issues with some bearings and related items at the site. When the dryer runs it will run some solids up to about 95% solids before taking it to the landfills, versus 15 to 18% coming off the belt presses. The landfills have certain limitations related to permitting that limit the volume of wet sludge that they can accept from JWSC.
\nThere is one company, AIT Services, Inc. that is operated by one of the original designers of the Fenton sludge dryer. JWSC cannot locate parts from any other provider, so JWSC requested a quote from AIT Services to provide parts and labor to repair the dryer.<\/p>\nMr. Burroughs noted that a correction is needed in the second paragraph under Staff Report. The $139k number does not include expediting one of the parts to shorten the timeframe. That amount is for the parts for the sprocket. It would cost approximately $8,000 to expedite the part so that JWSC can get the dryer back online sooner. For AIT Services to provide the parts and labor then completely rehab the dryer with new bearings, new sprockets and swivels, the cost would be $147,200.68. Considering the difference in hauling costs when the dryer is running, this investment would have a two-month payback. JWSC is running over 100 tons a month through the landfill right now. Saving 75% of the cost of 100 tons a month adds up quickly. Staff is evaluating the potential of adding a second dryer, but that would be a longer-term decision.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Edgy that the Finance Committee recommend a contract award in the amount of $147,200.68 to AIT Services, Inc. for the rehab of the Academy Creek sludge dryer. Motion carried 2-0-0.<\/p>\n
6. USGS Joint Funding Agreement<\/strong> \u2013 A. Burroughs
\nFor several years BGJWSC has been entering into a joint funding agreement with the U.S. Geological Survey to monitor groundwater in the Upper Floridan Aquifer to determine the saltwater intrusion and the migration of chlorides throughout the Aquifer. Mr. Burroughs explained this is key for long-term planning for the existing JWSC wells. Also, as growth continues this helps JWSC to understand how the saltwater plume is being shifted relative to JWSC\u2019s existing wells. The Perry Park well had to be closed several years ago, but so far none of JWSC\u2019s other wells have been impacted. although the Brunswick Villas well is very near the plume location. With Pinova closing, some shifting of the plume has been observed. The plume appears to be concentrating a little bit closer to the Brunswick Cellulose property but this is not unexpected given the withdrawal rates they have. USGS\u2019s work includes real-time monitoring. JWSC can go online and pull up the data on the well sites \u201c24\/7\u201d. Also, there are additional samples that are taken throughout the year.<\/p>\nSo, this is a key contract for JWSC. This expenditure is funded out of the Office of the Director\u2019s operations budget, and sufficient budget exists to fund this year\u2019s agreement. The Board was presented with a ten-year snapshot of what JWSC has spent in the past. Due to increases in costs that USGS is incurring to provide the services, the proposed amount for the contract has increased for the upcoming year. USGS is increasing their allotment by $5,000 and JWSC is increasing its allotment by $5,000 as well. Mr. Burroughs also indicated that there were other parties that provided funding for this work. For JWSC, this is an $85,000 joint funding agreement with the U.S. Geological Survey.
\nMr. Burroughs referenced the written agreement containing descriptive information about the project. He also stated that he could invite Mr. Greg Cherry from USGS to prepare a presentation if the Board wishes for the USGS to present some data and results.<\/p>\n
Commissioner Cook made a motion seconded by Commissioner Edgy that the Finance Committee recommend the full Commission enter into a Joint Funding Agreement with USGS in the amount of $85,000 for the continuation of groundwater monitoring in the Upper Floridan aquifer. Motion carried 2-0-0.<\/p>\n
DISCUSSION<\/strong><\/p>\n1. FY2026 Organizational Budget Request<\/strong> \u2013 A. Burroughs
\nMr. Burroughs reminded the Board that he presents a draft budget request to the Finance Committee each year in March to solicit their feedback and recommendations. Staff will then incorporate the applicable revisions, then return to the Finance Committee, and subsequently the full Commission, in April for approval. He presented the Committee with a PowerPoint document that is summarized below.<\/p>\nBudget Goals<\/strong>
\nMaintain Affordability Despite Rising Costs
\nIncrease Project Funding Due to Rising Construction Costs
\nImprove Operational Efficiency<\/p>\nBudget Overview<\/strong>
\nFY2026 Budget Request Total – $39.83M
\nFY2025 Budget Total – $39.893M
\nBudget Request Increase – 2.32%<\/p>\nFY2026 Budget Highlights<\/strong>
\nNo Rate Adjustment Requested
\nRepair and Replacement Reserve Funding Increase
\nCombined Group Expense Accounts<\/p>\nRevenue Highlights<\/strong>
\nCustomer Growth Remains Strong
\nUsage Revenue Increases Are Account Driver
\nRemoved Rental Income from Board of Elections Sale
\nCustomer Bill Affordability Compared to Other Utilities<\/p>\nExpense Highlights<\/strong>
\nTotal Staff Count Decreased (154=>152)
\nBudget Includes 2.3% COLA and Potential Merit Increases
\nCombined Two Divisions to Form Wastewater Division
\nCombined Two Divisions to Form Water Division<\/p>\nBudget Increases<\/strong>
\nRepair and Replacement Reserve Funding Increase
\nBanking and Investment Fees
\nCapital Purchases of Machinery and Equipment<\/p>\nBudget Decreases<\/strong>
\nInterest Expense
\nCapital Leases
\nChemical Costs Following UV Equipment Installation<\/p>\nAdditionally, Mr. Burroughs reminded the Board of the BGJWSC Core Values and FY2026 Operational Priorities. Budget requests are also intertwined with these.<\/p>\n
2. Financial Statement Month End February 28, 2025<\/strong> \u2013 D. Owens Mr. Owens presented the financial statement for the month ending February 28, 2025. He reviewed the Balance Sheet noting the Current Assets and Current Liabilities and briefed the Committee on the Combined Revenue Statement. The various Operating Revenues accounts were noted, and details on the Summary of Revenues and Summary of Expenses were highlighted. Mr. Owens briefly reviewed line items on the Cash Balances and the Project Report.<\/p>\nCommissioner Watson asked if there was any further business to discuss.
\nCommissioner Watson adjourned the meeting at 4:18 p.m.