Commission Minutes – February 18, 2016

For your consideration, please review the minutes for the Commission Meeting from February 18, 2016:

BGJWSC__Commission_Minutes_February_18,_2016

To read the minutes, please open or download the pdf from the link above or you may see more below:

PRESENT:                            

Thomas Boland, Chairman

Clifford Adams, Vice-Chairman

Allen Booker, County Commissioner

Donald M. Elliott, Commissioner

John A. Cason, III, City Commissioner

Ronald Perry, Commissioner

Robert Bowen, Commissioner

ALSO PRESENT:                  

Charles Dorminy, Legal Counsel

John D. Donaghy, Director of Administration

Pam Crosby, Purchasing Director

Todd Kline, Senior Engineer

Chairman Boland called the meeting to order at 2:00 PM. Commissioner Booker provided the invocation, and Commissioner Elliot let the pledge.

PUBLIC COMMENT PERIOD

There being no citizens that wished to address the Commission, Chairman Boland closed the Public Comment Period.

Commissioner Adams made a motion seconded by Commissioner Cason to move Approval item #11 Academy Creek CIP Project to Discussion Item # 5. Motion approved 7-0-0.

PRESENTATION

Employee Recognition – Commissioner Cason / Amy McKim, TSI

Commissioner Cason stated the Georgia state Board of Examiners for Certification of Water and Wastewater Treatment Plant Operators and Laboratory Analyst recognizes Cecil Derrick Simmons for obtaining his Water Operator Class 3 License. Mr. Simmons is not entitled to all of the privileges allowed under the registration act of Georgia.  Congratulations, Derrick!         

COMMITTEE UPDATES

Communications & Customer Service Committee Commissioner Adams

There was nothing new to report at this time

Economic Development Committee – Commissioner Boland

There was nothing new to report at this time

Facilities Committee – Commissioner Perry

There was nothing new to report at this time

Finance Committee – Commissioner Elliott

There are items on the agenda under discussion that the Director of Finance will present.

Human Resources Committee – Commissioner Cason

Commissioner Cason stated the committee met on February 4th and there are a couple of items for approval on the agenda today.

Legislative Committee – Commissioner Boland

Commissioner Boland stated there are Legislative items for discussion.

APPROVAL

Minutes from the February 4, 2016 Regular Meeting

Commissioner Boland stated there was a corrections to be made regarding the compensation payment of $1,000 a week for Commissioner Elliott and Commissioner Boland and after the meeting it was discovered a rule in the city and county ordinance is not allow and the finance department has been notified.

Commissioner Boland made a motion seconded by Commissioner Cason make the correction to the minutes from February 4th, 2016.  Motion carried 7-0-0.

Minutes from the February 4, 2016 Executive Session Meeting

Commissioner Perry made a motion seconded by Commissioner Cason to approve the minutes from the February 4, 2016 Executive Session Meeting. Motion carried 7-0-0.

Commissioner Elliott made a motion seconded by Commissioner Cason to defer item #3 Property & Casualty Insurance until an appropriate time later in the meeting. Motion Carried 7-0-0.

Property & Casual Insurance – Fred McGinty, McGinty & Gordon

Fred McGinty presented to the Commission a preliminary proposal. Mr. McGinty stated he previously presented several options to the Facilities and the Finance Committees and it was suggested changing the property coverage from Lloyds of London to Ace with significant savings.  There was a reduction in premiums due to the property appraisals performed last year and competitive rates.  The crime liability coverage was sent out to several other insurance companies and it was found that Trident offered the best coverage and price which is not part of the price quoted.   It was discussed that Trident Insurance was unable to offer Wire Transfer Fraud as an options.  Mr. McGinty stated they went to Travelers and Hartford to receive competitive bids.  They found that Travelers had the most competitive bid of the two.  Their policy now includes Wire Transfer Fraud and Computer Fraud.  The other options not available at the Facilities Committee was to increase the Excess Liability, General Liability and Public Liability.  Trident includes all of these coverages.  The recommendations were discussed of the mixture of Trident, Ace, and Travelers.

Commissioner Elliott made a motion seconded by Commissioner Cason to go with the recommended Property, Liability, and Casualty Insurance for the cost of 299,470.90 and also the Travelers Crime policy for $510.00. Motion approved 7-0-0.

Troy University Agreement – Lynn Chapman, Troy University

Lynn Chapman and Summer Davis presented the Troy University Agreement. A booklet and MOU was provided explaining the Partnership.  Mrs. Chapman explained the benefits of partnering with Troy University which allows the application fees waved, a 10% tuition discount, and corporation scholarships for full time BGJWSC employees who wish to further their education.  Ms. Summers explained further that full-time employees could qualify for a scholarship which pays for one class during their second term of enrolment as undergraduate and graduate students. Mrs. Chapman stated the agreement will allow Troy to meet with the employees and partner events.  Teamworks Services, Incorporated would be the contact person for email updates and additional information and promotions.  Legal counsel stated the contract has been reviewed and it was noted that it is not an exclusive contract.

Commissioner Cason made a motion seconded by Commissioner Elliott for BGJWSC to enter into a partnership with Troy University to facilitate the continued educational development and education of employees. Motion approved 7-0-0.

Canal Road Water& Sewer Force Main Improvements Award – P. Crosby

Pam Crosby presented the Canal Road Bid Results and Award Recommendations to the Commission. Mrs. Crosby explained the invitation to bid was advertised on Monday, January 4, 2016.  The timeline was discussed and it was noted that the Water Main Improvements needs to be completed no later than 8/1/2016 and the Sanitary Sewer Force Main Improvements needs to be completed by 10/1/2016.  The staff recommends this project be awarded to Woodard Construction Company residing in Waycross, GA.  The references and projects have been reviewed.

Commissioner Cason made a motion seconded by Commissioner Elliott to award the contract for this project to Woodard Construction Company in the amount of $1,045,382.00. Motion approved 7-0-0.

Academy Creek Former DAF Facilities Remediation Proposal Review – P. Crosby

Pam Crosby presented to the Commission regarding the remediation for Academy Creek. Three remediation providers were contacted to diagnose the situation.  Savannah Analytical & Consulting Services (SACS) was used as a third party consulting service and provided a protocol plan.  Mrs. Crosby stated the staff invited both companies, Servpro of Brunswick and Paul Davis Emergency Services to provide presentations and details of project work.  The DAF facility was noted to be the previous dewatering area where the sludge thickening tanks used were and is now empty and kept locked.  Pam stated there are plans to use this facility for storage, warehouse space, storm support or classrooms.  It was stated that the Paul Davis Company was most comprehensive and experienced. This proposal was previously reviewed by the Facilities and Finance Committees.

Commissioner Elliott made a motion seconded by Commissioner Cason to (1) enter into a contract with Paul Davis Emergency Services in the amount of $48,154.93 for the Remediation of the Academy Creek former DAF Facility Remediation and (2) enter into a contract with Savannah Analytical & Consulting Services for Remediation Protocol, Oversight and Surface Swab Testing of the Academy Creek former DAF Facility in the amount of $4,667.00. The purpose for the second contract is to have a third party attest and certify that the remediation has been accomplished and to confirm there is no remaining residuals. Motion approved 7-0-0.

Legal Service Contract Renewal – P. Crosby

Pam Crosby presented to the Commission the Legal Services Contract for renewal. The memorandum provided explained the contract agreement from April 6, 2015 as one (1) initial year term with four (4) one year options available for renewal.   It was noted that Hall, Booth, & Smith, P.C. has provided various legal services as outlined in the Contract Section 3 Scope of Work throughout the term of the initial agreement.  It was noted there were others reviewed and HBS was fair and in support of the organization.  There was discussion on the amount spent and it was noted that we are in line and close to the threshold.  Mrs. Crosby stated the current annual fee has been evaluated by BGJWSC staff and HBS.  Determination has been made that the current fee schedule is appropriate and does not require modification.

Commissioner Elliott made a motion seconded by Commissioner Booker to enter into a renewal on the current agreement with Hall, Booth, & Smith, P.C. for an additional 12-month period beginning April 6, 2016. Motion approved 7-0-0.

PS2030 / Popco Change Order – T. Kline

Todd Kline discussed the Change orders for PS2030 Force Main & Water Main Improvements; Change Order for Water Main Installation memorandum was read and explained.  The staff has reviewed the options and found it is advantages and beneficial to the JWSC water to complete the work at this time.  The pricing and plan provided by the Contractor is reasonable and consistent with other work and the time constraints placed on this portion of the project.  This additional amount has been adjusted to include the directional bore of the water main instead of open cut.

Commissioner Elliott made a motion seconded by Commissioner Bowen to accept the proposal presented by Popco, Inc. to install the water main on Sea Island Road in the manner described to be processed as a Contract Change Order for the additional amount of $197,536.00. Motion approved 7-0-0.

Change Order for Pump Station Control Panel Modification memorandum was read and explained by Mr. Kline. It was stated that Hydrogen Sulfide (H2S) is a colorless gas with the characteristic foul odor of rotten eggs.  This is a natural byproduct that is released when wastewater become turbulent.  It is heavier than air, very poisonous, corrosive and flammable.  Mr. Kline continued stating the pumpstation control panels are typically sealed from atmospheric hydrogen sulfide.  Typically the method for sealing this connection has been with “duct seal” putty sealants and problems occur where direct connections from wet well to control panel exist.  A major portion of this project is the total replacement of the control panel for Pumpstation 2030.  At the time of the project design, BGJWSC Construction Standards did not include cable junction boxes.  These junction boxes would add another distinct layer of protection from wet well to control panel transfer.  The plan is to revise our standards and include these in all pumpstations going forward.  Staff has reviewed and found it advantageous and beneficial to the longevity and reliability of the new Pumpstation 2030 control panel to complete the work at this time.  It was stated that a master electrician can install this item.

Commissioner Elliott made a motion seconded by Commissioner Booker to accept the proposal presented by Popco, Inc. to install cable junction boxes in the manner described to be processed as a Contract Change Order for the additional amount of $28,188.00. Motion approved 7-0-0.

Change Order for Force Main Receiving Manhole Top Replacement memorandum was read and explained. The new Pumpstation 2030 force main will discharge to an existing receiving manhole at the southern entrance to Dunbar Creek WWTP.  The existing ring and cover have failed to the extent that SP&M staff have temporarily shored the cover in place.  Mr. Kline stated this manhole is located approximately ten feet from the shoulder of Sea Island Rd and presents a distinct hazard to the traveling public and the personnel entering the WWTP.  Repair of this manhole will require replacement of the entire precast top.  The staff as reviewed and found it is advantageous and beneficial to have the Contractor replace the manhole top at this time while they are mobilized.

Commissioner Elliott made a motion seconded by Commissioner Adams to accept the proposal presented by Popco, Inc. to install a new pre-cast top in the manner described as a Contract Change for the additional amount of $9,620.00. Motion approved 7-0-0.
Mansfield St. Sewer Replacement Change Order – T. Kline

Todd Kline explained the project as a cooperative effort between the City of Brunswick and the Brunswick-Glynn Joint Water and Sewer Commission. The contract is between the City of Brunswick and J.H. Stone Construction.  The current scope of work for the sewer portion of the Mansfield Project extends to existing Pumpstation 4002 on Reynolds St.  The memorandum states that upon demolition of the manhole adjacent to PS4002 it was discovered that the existing 15” gravity sewer upstream to Monck St. is in severe need of replacement. Investigation from the SP&M crews showed the sewer main to be constructed of cast iron rather than the typical materials more suited to convey wastewater (clay, coated ductile iron, PVC, etc.).  Tuberculation over time and the corrosive effects of the wastewater has resulted in the reduction of the inside diameter of the pipe causing compromising structural instability of the main.  The Contractor provided a proposal to replace this 330 ft. of gravity main showing on the map.  The change order was signed/approved by Mr. Swan (Exec. Director at that time) and processed by the City per the contract document.  Once the Contractor remobilized to perform the work it was discovered that the 16” force main from PS4002 did not follow the route as shown in BGJWSC records.  The force main’s actual location is within 5’ or less of the gravity main along the entire route.  In order to replace the gravity main, this section of force main will also require relocation.  The staff has reviewed the options and found it to be advantageous and beneficial to have the Contractor replace the failing 15” gravity main at this time while they are mobilized.  The map showing the sewer main and sewer force main was discussed.  BGJWSC will be bearing the full cost of the repairs on Reynolds Sewer Replacements due to this is all sewer repairs.  The other work being performed will be shared with the City for storm drainage repairs. The contractor is ready to be mobilized when the Commissioner approves. At this time the contractor has not provided a completion date but it has been requested.

Commissioner Bowen made a motion seconded by Adams to accept both proposals presented by J.H. Stone, Inc. and to be processed as Contract Change Orders for the total additional amount of $160,924,42. Motion approved 7-0-0.

There was additional discussion on the timing and the change work to be done in 20 – 30 days.

Debt Acquisition / OREMC – J. Donaghy

John Donaghy presented to the Committee the Debt Acquisition Compliance. Mr. Donaghy explained the steps necessary that the Commission needs to approve when taking on debt and is in compliance with policy. This is for the State Route 99 project for 750K on a 10 year interest free loan.  The Finance Committee has reviewed this memo and recommends it for adoption.  The memorandum highlighted the BGJWSC Policy Statement, Conditions for Using Debt, and Sound Financing of Debt.  It was noted this will not create undue burden on the rate payers.

Commissioner Elliott made the motion seconded by Commissioner Cason to affirmatively determine that a loan from the Okefenokee REMC for the State Route 99 project is in accordance with the adopted BGJWSC Financial Policy and that the conditions for using debt and the sound financing of that debt have been satisfied. Motion approved 7-0-0.

Academy Creek CIP Project – H. Patel

It was determined and agreed upon by all Commission to move item #11 Academy Creek CIP Project to Discussion.

Paymentus Agreement – C. Dorminy/J. Donaghy

John Donaghy presented the Paymentus Agreement and explained the program as a merchant

services provider to incorporate with the implementation of the Harris software. This program is for the processing of credit and debit cards on line. Several companies have been reviewed for their features and costs.  Charlie Dorminy explained the agreement has been reviewed by legal counsel and stated a few things were changed, i.e., the governing laws was updated to the State of GA.  He continued stating this type of contract brings liability with it with regards to security and private information.  Legal Counsel has revised the contract and feel comfortable with the changes.  The security breech provision was another issue and was discussed.  It was noted that the only out-of-pocket cost for BGJWSC was the replacement of the machines.  INS has also reviewed and approved.  There was additional discussion on costs and the one currently being used.

Commissioner Elliott made a motion seconded by Commissioner Bowen to approve the selection of Paymentus to provide merchant services and to authorize the Chairman and Acting Executive Director to execute the Master Services Agreement upon approval of the JWSC legal counsel. Motion approved 7-0-0.

DISCUSSION

Financial Report – January End of Month Financial Comparative – J. Donaghy

John Donaghy discussed the Financial Report and the current liabilities and ongoing projects. Mr. Donaghy updated the Commission on the current liabilities referencing Balance Sheet as of January 31st, 2016 and explained the projects and the Administration Building balances. The current assets have increased by 1.1M.  Restricted cash reserves have decreased largely due to the completion of projects.  The assets have decreased by 4M due to reserves and repair and replacement and on-going projects.  Capital assets and fixed assets have increased by 1M primarily due to the completion of the Admin Building.  The remaining increase is the projects in process.  The JWSC Reserves were discussed and looked to be healthy.  There is a meeting planned to address the rate resolution.  Unrestricted fund balances were discussed.  Ms. Donaghy discussed the general checking account, restricted reserves, capital reserves, and tap fee reserves.  Mr. Donaghy stated the capital expenditures have been discussed with the superintendents and staff. The Summary Commission Report was discussed.

Arco Grant Update – T. Kline

Todd Kline updated the Commission on the Glynn County Community Development Grant for Arco Sewer Improvements. Mr. Kline stated that Glynn County has approached BGJWSC to partner and apply for the Georgia Department of Community Affairs Community Development Plot Grant.  The County has identified the Arco residential area as a good candidate for public sewer system improvements and wishes to move forward as the grant applicant with the JWSC providing the required the cash match of 40K and engineering support.  Monica Hardin, Glynn County Grants Coordinator, has provided a brief synopsis of the product and how they wished for the JWSC to participate.  It was stated this is a very competitive grant through the Georgia Department of Community Affairs which provides grant amounts for single projects which can be up to 500K and for two of more up to 800K.  The grant is intended to help or assist low to moderate income areas.  The grant does require the minimum of 10K cash match.  However, in order for this project to be competitive it would require BGJWSC to provide a 40K cash match.  The grant deadline is April 1st and would require JWSC to move expeditiously since there are multiple requirements to fulfill.  The memorandum continued stating the grant opportunities are available every year but the momentum has become and the request from the County is to continue. The map of the area was presented and discussed.  It was stated that BGJWSC could provide 40K and provide the sewer lines and the county to agree to provide and pay for the road replacement.  Tap fees were also discussed and should be noted in the memorandum.  The rate resolution will need to address the forgiveness of tap fees when BGJWSC is helping older established neighborhoods convert from septic to sewer. There was additional discussion to work on phases in this area in which it would be possible to apply for the same grant the following year(s) in order to complete the area.  It was recommended to let the staff provide the pre-engineering and a letter to the county regarding the 40K and road replacement and return back in March to make a final vote.

Master Plan Update – Commissioner Elliott

Commissioner Elliott stated the Master Plan meeting will be held on March 3rd along with the Commission Meeting.  The Human Resources Committee will be moved to March 17th.  Todd Kline and Commissioner Boland will be working closely with Four Waters Engineering.  It was recommended that all Commissioners submit their questions soon so they can be addressed.

Contract Update – P. Crosby

Pam Crosby updated the Commission on the upcoming contracts. She stated that Yates Pest Control is up for 1 year renewal.  This contract was set at 6 months to evaluate the need and if a contract would be the best option.  It is set at $2,300 annually and will have a preliminary hearing with options of renewing.  It was noted that the initial Cityworks contract with Jones Edmunds & Associates is about to expire in April.  The implementation is not completed but we can extend it for additional 6 months or one year.  Mrs. Crosby stated the next contract is for mobile phones services with Verizon.  The initial contract was 18 months and expires in June.  There was additional discussion on the GPS trackers and possibly rolling over services with Verizon.  The tank maintenance agreement will expire in August.  The plan is to review the contract and send it out as an RFP.

Academy Creek CIP Project – H. Patel

Harry Patel explained that the Academy Creek WWT plant is responsible for treating the waste water from the mainland of Glynn County. Mr. Patel stated the portion of the sewer main is in need of immediate repair.  The main line has I & I issues and deterioration due to harmful gases.  The details of the structure damage was discussed and the cost estimated at approx. 250K to 300K.  The staff stated there is a need to obtain 3 full quotes by March 3rd to consider the project before a full approval can be considered.

Commissioner Elliott made a motion seconded by Commissioner Booker to approve the repair of the Academy Creek sewer main and diversion box after the staff obtains three quotes to complete the work and to stay within the estimated cost of $250,000 and $300,000 and authorize the Chairman to enter into a contract. Motion approved 7-0-0.

EXECUTIVE DIRECTOR’S UPDATE

CHAIRMAN’S UPDATE

Commissioner Boland updated the Commission on the work on PS2030 that the work is moving along. The employee evaluation and compensation now has a committee to assess this subject.  Applications have been received for the Executive Director, Financial Analyst and the Deputy Director.

EXECUTIVE SESSION

Commissioner Elliott made a motion seconded by Commissioner Cason to adjourn into Executive Session to discuss potential litigation and personnel issues. Motion carried 7-0-0.

There being no additional business to bring before the Commission, Chairman Boland stated there is no need to vote after the Executive Session.

Back in Session

Commissioner Adams made a motion seconded by Commissioner Booker to adjourn out of the Executive Session. Motion carried 5-0-2 (Commissioner Perry and Bowen were absent and excused from voting).

Commissioner Cason made a motion seconded by Commissioner Adams to adjourn the Regular Meeting. Motion carrier 5-0-2 (Commissioner Perry and Bowen were absent and excused from voting).

Meeting adjourned at 4:22 pm.