Commission Minutes October 20, 2016

For your consideration, please review the minutes for the Commission Meeting from October 20, 2016:

bgjwsc_commission_meeting_minutes_october_20_2016_w

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

PRESENT:                             

Thomas A. Boland, Sr., Chairman

Clifford Adams, Vice-Chairman

Donald M. Elliott, Commissioner

Allen Booker, County Commissioner

John A. Cason, III, City Commissioner

Ronald Perry, Commissioner

Robert Bowen, Commissioner

ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Dan Lovein, Legal Counsel HBS

John D. Donaghy, Director of Administration & Finance

Todd Kline, Senior Engineer

Pam Crosby, Director of Purchasing

Kirk Young, Superintendent Systems Pumping and Maintenance

Billy Simmons, Water Production

                                               

Commissioner Boland called the meeting to order at 2:00 PM. Commissioner Booker provided the invocation and Commissioner Boland led the pledge.

PUBLIC COMMENT PERIOD

Ray Barnett, St. Simons Island. Mr. Barnett stated he purchased his property on July 6th and on July 7th JWSC imposed the halt on taps and can’t be issued a building permit.   Since this change he feels his property has declined 30 % to 40%.  He is requesting the board reconsider and review the decision on the lottery.  He recommends the first come first serve process.

Jeffrey Counts, N. Mainland. Mr. Counts has questions and would like the commission to address and provide an update on the north Mainland capacity and progress. He asks that if it’s not going to be today than in the near future provide a timeline.  Mr. Junkin addressed his questions with Todd Kline that there is a project moving forward and should get some relief in the next 3 to 6 months.  Mr. Counts asks for updates to be provided.

Jason Counts, N. Mainland. Mr. Counts requested clarification of 3 to 6 months on N. Mainland projects. Mr. Junkin explained that there will be capacity and JWSC still working on the engineering portion and is similar to other projects.

There being no additional citizens who wished to address the Commission, the Chairman closed the public comment period.

COMMITTEE UPDATES

Communications & Customer Service Committee Commissioner Adams

There was nothing new to report.

Economic Development Committee – Commissioner Elliott

There was nothing new to report.

Facilities Committee – Commissioner Perry

There was nothing new to report.

Finance Committee – Commissioner Elliott

Items will be covered later in the agenda.

Human Resources Committee – Commissioner Cason

There was nothing new to report.

Legislative Committee – Commissioner Boland

There was nothing new to report.

PRESENTATION

Megan Desrosiers, Chief Executive Officer of 100 Miles. This is a Coastal Conservation Organization whose mission is to preserve, protect and enhance the Georgia’s 100 miles cost.  Thanks to Commissioner Case of inviting me here today.  Megan presented the subject of storing coal waste, also known as Coal Combustion Residual.  The storing of coal ash waste has been a problem in the last few years especially.  The EPA reclassified Coal Ash so that it could be stored more readily in facilities across the country.  The best way to store is in a lined facility.  There are 48 municipal solid waste landfills in Georgia.  There are four of these 48 are not lines and not eligible for coal ash to be stores.  My organization became concerned because Glynn County is downstream.  Our drinking water and where we live is downstream.  Two of the landfills that concerns Glynn County are Chester Island Landfill and Broadhurst Landfill.  Chester Island is a lined landfill and it recently had a release of a chemical that is a bi-product of coal product into the Okefenokee Swamp.  Liners have a lifespan and are known to crack.  Our landfills are important pieces of our infrastructure that our communities need to be able to thrive and grow.  Ms. Desrosiers stated that in Coastal Georgia where we have sandy soils and landfills are on top of drinking water and our landfills are in the middle of wetlands, it is a bad idea to store coal ash.  Ms. Desrosier stated the movement started in Wayne County and brought Megan and 100 Miles to get involved.  The Land Protection Division of EPD contact is Jeff Cown and has stated that that a trigger is needed to evaluate the landfill and what is dumped.  It was suggested that Megan get with Mr. Junkin and figure a way to address further.

APPROVAL

Minutes from the September 22, 2016 Regular Meeting

Commissioner Adams made a motion seconded by Commissioner Cason to approve the minutes from September 22, 2016 Regular Meeting. Motion carried 7-0-0.

Minutes from the September 22, 2016 Executive Session Meeting

Commissioner Adams made a motion seconded by Commissioner Cason to approve the minutes from the September 22, 2016 Executive Session Meeting. Motion carried 7-0-0.

Todd Kline introduced JWSC new employee Tiffany Tiner to the Commission. She was recently hired on as a Service Review Specialist in the Planning & Construction Division.   She originally came in as a temporary employee.  The position was created to be a direct liaison between the Customers, Finance, and Planning & Construction to make the process a little more efficient.   Tiffany explained that she will be working with new water and sewer taps.

Commissioner Perry made a motion seconded by Commissioner Adams to add Innoprise Capital Project Planning to the agenda under Approval item # 6. Motion approved 7-0-0.

PS 2032 Pipe Pre-Purchase Ratification – J. Meridith

Janice Meridith presented the Ratification – Pre-Purchase of 16” HDPE Pipe for PS2032 Force Main Project. It was explained that this is a formality only.  As explained in the background of the memorandum the approval was granted on August 18, 2016 and is related to the PS2032 Force Main project.  The lead time for this material is approximately (6) to (8) weeks.  It was noted that another company was added making it a total of (4) bids. The warranty for the pipe will remain with the product and this item’s pre-purchase will be incorporated into the bid package that is due to be release on 10/13/2016.  The pre-purchase is also included in the IFB (Invitation For Bid) package to the contractors.  A meeting concluded to reduce the amount of the material from 12,000 to 11,000.  After looking at the terms, availability and working with the (4) companies staff selected to go with Consolidated Pipe.  The cost will be $300,190.00.  The memorandum stated due to the events surrounding Hurricane Matthew, senior staff had to move forward with the purchase no later than 10/12/2016.  With the regular Commission meeting of 10/06/2016 being postponed, the decision was made to move forward with issuing a purchase order for the material and seeking ratification to bring before the Commission today.  This would allow JWSC to lock in the existing pricing and delivery schedule with our risk of price increase or delivery delay if items were bid again.  It was noted that the purchase of the pipe is in an effort for JWSC to do what is possible in our control to expedite the project of PS 2032 and running the 16” Force Main line from Palmetto down Frederica to the Harrington facility.

Commissioner Elliott made a motion seconded by Commissioner Adams to approve to ratify the purchase of 11,000 feet of 16” HDPE pipe from Consolidated Pipe in the amount of $300,190.00.

Commissioner Cason inquired about the delivery date and Janice stated January 28th was requested.  The hopeful date to start the project is on January 2nd with the selected contractor who is not known at the time.  It was stated that the contractor will be required to be present when the product is delivered in order for them to inspect.  The ownership will transfer from JWSC to the contractor as well as the warranty.  Consolidated Pipe will be present at the pre-bid meeting for the IFB.   The pipe will be coming from the Elizabethtown plant in KY.

Motion approved 7-0-0.

Line of Credit BB&T – J. Junkin/J. Donaghy

John Donaghy presented the Debt Acquisition Compliance with Policy Line of Credit. The JWSC has two debt instances of incurring debt.  The first one is for a capital lease for the acquisition of four VacCons trucks.  At a previous meeting the cost benefit of capital leasing or the out-right purchase of those vehicles.  It was determined that capital leasing was the appropriate options/direction.  The Executive Director was given the authority to go ahead with the purchase under capital lease and report back to the commission with the leasing terms.   John stated that BB&T, who works in conjunction with GMA, was determined for the lease proposal with a four year term and 1.49% interest rate.   The second issue is a line of credit with BB&T, who is the banking institution for the JWSC.  This will be used to provide the cash flow necessary to complete projects.  This is in anticipation of recouping those monies through collection of capital improvement fees.  This will allow JWSC cash flow those improvements.  This will allow incurring when needed.  The line of credit is $1,500,000.00 line of credit with a one month LIBER Rate plus 1.95% with a maximum repayment term of 24 months.  John continued by stating with any incurrence of debt by JWSC there is a provision within the financial policy that the issuance of debt is in the best interest of the JWSC.  In this policy it lists (4) conditions for the issuing debt and (6) conditions for the sound financing of that debt. This was reviewed by the Finance Committee earlier today and it is recommended that the JWSC determined that a line of credit from BB&T bank and the capital lease for the acquisition of VacCons meet the policy established and that the conditions for using debt and the sound financing of that debt has been satisfied.

Commissioner Elliott made a motion seconded by Cason that the JWSC affirmatively determine that a line of credit from BB&T Bank and a capital lease for the acquisition of VacCons are in accordance with adopted JWSC Financial Policy and that the conditions for using debt and the sound financing of that debt have been satisfied. And, that the Chairman and Executive Director be authorized to execute the documents necessary, subject to review by legal counsel.  Motion approved 7-0-0.

Stillwater Engineering Grant/Load for SSI Water Tank Project – J. Junkin/B. Simmons

Executive Director Jimmy Junkin presented the Stillwater Engineering Loan for the SSI Water Tank Project. The request is asking permission for the Executive Director to submit an application for a GEFA loan in the amount of $1,401,035.00 to provide funds for the raising of the Demere Road water tank and the Seaside Village water main project.  This tank is currently dysfunctional due to its low elevation relative to the other system assets.  This loan will allow the raising of the tank 20 feet, provide necessary fire protection to the area, and replace transit pipe in the Seaside Village area.  This project was identified earlier.  GEFA will provide debt forgiveness on the first $1,250,000.00, forty percent (40%) of the loan which is a huge discount.  The loan would be a 20 year loan with annual payment of $93,935 yearly until the un-forgiven principal amount is paid off.  The request today is for the Commission to allow the Executive Director to prepare the application to secure this loan on the contingency that it does qualify for the debt forgiveness.

Commissioner Elliott made a motion seconded by Booker that the Executive Director to submit an application to the GEFA loan for $1,714,035.00 to provide funds for raising the water tank on Demere Road and to replace the transite pipe in the Seaside Village area.

It was inquired about the asbestos in the pipe and if it’s dangerous.   It was stated that it does not present a health hazard and it is inside of the mix of concrete.  Billy Simmons explained that the other tank is higher and called Oglethorpe.  It does not exchange water and believes this is a good fit.

Motion approved 7-0-0.

Innoprise Capital Project Planning & Contract Management – J. Donaghy

John Donaghy presented the quote from Harris for Innoprise Capital Project Planning & Contract Management. It was discovered that the two (2) modules used in the user training using for financials are in the process of development.  The project reporting features were very superficial.  Harris is in the development process to better track construction projects both the costs, planning and contract management of these.  This is a three (3) phased implementation now and expected completion date is spring of next year.  JWSC has the opportunity to become a member of the validation group for development and to test the system.  We would be participants in helping to develop the capabilities of this software.  This will not cost JWSC anything until the program is available for sale.  This would be very useful for JWSC as there is a large amount of projects in the Master Plan to get completed.  This program would tie together all the budgeting, contract management, and cost accumulations into one package.  It will provide reports quickly and easily and interfaces with Microsoft Project which we currently have installed.  Part of this implementation process JWSC would be able take projects and see how the functionality works and make necessary modifications.  A representative will be here in November to meet with staff and review our system and how it can benefit JWSC.  The product is expected to be completed in March or April 2017.

Commissioner Elliott made a motion seconded by Commissioner Adams to approve the use of the Innoprise Capital Project Planning and Contract Management modules for the Innoprise suite as part of the validation group at no cost to JWSC until the product is available for sale. Motion approved 7-0-0.

DISCUSSION

September End of Month Financials – J. Donaghy

John Donaghy provided an update on the Balance Sheet explaining the current assets, cash in hand, interest in bond sinking fund and accounts receivable.  The Supplemental Schedule of Cash Balances Report was discussed and included Cash and Cash Equivalents, JWSC Reserves, Capital Improvement Fee Reserves, Bond trustee Reserves and Customer Deposit Reserve.   The Project Encumbrances were compared to the Unencumbered Balances to Complete Projects leaving a balance of $36,401 to commit to projects at the time of report. This does not include user fees that are to be accumulated.  The next report noted as the Commission Report and Revenue Expense Report ending 9/30/16.  The 2017 budget for revenue is $28, 075,000 dollars and it was reported that JWSC was 14.5% percent ahead as of 9/30/16.  The line item details were briefly explained.  The Cash in and cash out was discussed.  The final report shows the Project Cost Report and lists the projects currently on the books.  It was requested for an estimated date of completion to be listed for each project.

Grand Jury Update – C. Dorminy

Dan Lovein of HBS discussed the Grand Jury Appointments to JWSC which begins January 1, 2017.   The last date for submission of applications was October 14th. Two (2) individuals submitted their applications for consideration of appointment those being current Commissioner Donald Elliott and previous Commissioner David Ford.   The Grand Jury will conduct interviews on November 2nd and will then hold a meeting to gather public comments on November 16th. Then on November 30th the Grand Jury will make the appointment in compliance with legislation statute.  That is the update with regard to the Grand Jury and those that applied.

EXECUTIVE DIRECTOR’S UPDATE

*Mr. Junkin discussed the 2032 Capacity Demand Survey in anticipation to issue taps as quickly as possible.  This form will be sent out the first of the week most likely electronically and due back by noon 10/31/16.  The intent is to determine how many individuals are ready to build, how many developers have parcels, and how many have parcels beyond the 90 day window.  A hold harmless is required before selling the taps.  *The Re-Organization Considerations for JWSC were discussed and looking at the way the organization is structured. *The IT Tech was discussed and the INS group works on the bigger picture.  *Engineering Staff was also discussed. *Hurricane Matthew Overview was reviewed and was estimated to be approx. $500k in loss of pumps, motors and expense in labor. *Capital Project Status Reporting was noted that staff will be working in Innoprise to get project reports to reflect milestone, financials, and completion of projects. *Sewer Capacity Needs Summary is expected to come out October 31st and will give people something to review on capacity overflow needs.

CHAIRMAN’S UPDATE

The Chairman provided a SPLOST update and stated that the meetings put on by the county have been low in attendance. It was recommended for people to support the SPLOST as if will help with costs on very important needed improvements and will benefit everyone.

EXECUTIVE SESSION

Commissioner Perry made a motion seconded by Commissioner Bowen to adjourn into Executive Session to discuss Potential Litigation. Motion approved 7-0-0.

Executive Session ended

Commissioner Elliott made a motion seconded by Commissioner Perry to adjourn the Executive Session and adjourned the Regular meeting. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Commissioner Bowen was excused from the meeting

Commissioner Cason made a motion seconded by Commissioner Adams to adjourn the Regular Commission Meeting. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Chairman Boland adjourned the open meeting at 4:09 pm.