Finance Committee Minutes – August 18, 2015

For your consideration, please review the minutes for the Finance Committee Meeting from August 18, 2015:

BGJWSC_Finance_Committee_Minutes_August_18,_2015

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

PRESENT:                  Donald Elliott, Chairman

Ronald E. Perry, Commissioner

John Cason, Commissioner

John Donaghy, Chief Financial Officer

Steve Swan, Executive Director

ALSO PRESENT:       Thomas Boland, Commissioner

Chairman Elliott called the meeting to order at 2:00 PM.

PUBLIC COMMENT PERIOD

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

John Michael Doyle, St Simons Island.

Mr. Doyle addressed the Commission during the meeting discussion.

APPROVAL

Commissioner Cason made a motion seconded by Commissioner Perry to adopt the minutes of the June 16, 2015 Finance Committee meeting. Motion carried 3-0-0.

Commissioner Cason introduced the new City Manager, James Drumm, to the committee. All those present acknowledge and welcomed him to the meeting.

DISCUSSION

2014 to 2015 Financials – J. Donaghy

The financials are drafted up. There is a need to recognize the unfunded pension liability in our financial statements. The cash position is relatively the same as 2013-2014. All of our reserves are fully funded. The payables are fairly close to last year as well. It was stated the annual budget is 23M. The water usage has declined compared to last year due to economy and other variables. The expenses are slightly over budget and we are reviewing line by line. We provide water for both county and city fire departments and do not currently have compensation for it. The ordinances will need to be reviewed for billable water usage. Currently we pay under a letter of agreement for maintenance with the City of Brunswick. The Rate Resolution should have a figure for fire protection and needs to be addressed.

John stated the financials will be available for the September 3rd Commission meeting.

Rate Resolution Estimates for Services – S. Swan

Steve Swan discussed the draft estimated costs for services the staff recommended. After hours costs were explained as well as the process when a customer questions their charges / meters readings. It was requested that records be kept for disagreements and readings going forward. Mr. Swan stated these charges are geared towards the habitual violators. Burton and Associates have recommended JWSC charge for certain items. The committee continued to discuss each item listed. Many listed violations include unauthorized turn-on of water, Jumper or straight hosing, use of water without knowledge of utility-often at contractor site, and unauthorized discharge of FOG. These will be presented to our attorney for review.

Septic to Public Sewer Transition – Steve Swan

The draft of proposed BGJWSC policy on septic to public sewer was discussed. Mr. Swan stated there are several subdivisions that are all on septic systems and that JWSC wants to help any and all that we can by possibly looking at financing that homeowners can apply for. Epworth Acres is currently looking at the homeowners setting up their sewer systems with low gravity or low pressure from the home to hook onto to the JWSC collection systems. The document requests a single voice that represents the streets/subdivision, e.g. HOA, in order for JWSC to address concerns.

It was recognized that there are several homeowners here in the audience. Mr. Swan stated the drain system can be addressed at the same time as the sewer systems and we are working with the city, county and school on trying to combine projects. There was discussion on how the process will be handled when there is not a homeowners association – an example is Buckswamp Road. Mr. Swan stated the draft document will be addressing the cost, compensation. Mr. Doyle, St. Simons Island Epworth resident, addressed the commission with concerns. It was stated that JWSC wants to help the homeowners in identifying grant sources or other means of financing without the cost being placed on the regular rate customers. The JWSC will only be responsible for the design, installation, and ongoing maintenance of the collection system. Tap in from the home owners dwelling of the property line will be the responsibility of the home owner.

Collusion Statement on Contracts and Policy – C. Dorminy

Mr. Swan discussed the collusion statements required in contracts. JWSC does not want any type of gratuities or favors offered by a vendor or a contractor to any of our employees and need to hold them to the contracts. The policy would also require the contractor to inform if employees asks for gratuity in turn. Currently our contracts do not have this clause addressing these issues.

Update on City Works Implementation – E. Burns

Elizabeth ‘Lisa” Burns updated the commission on the City Works program. She stated the process is moving right along. The JWSC GIS team is working closely with the county. The employee information and other data is being updated to the system and training will begin.   The first department to be up and running is Systems Pump and Maintenance. Part of the City Works will be capturing the usage of inventory or ‘warehouse”. Work orders will be required for accountability.   City Works will capture historical data like purchase items, daily logs and inspection reports and will tie into Glynn County GIS system. There was additional discussion on how Innoprise and City Works will work together.

Director’s Update

There being no additional business to bring before the Finance Committee, Chairman Elliott adjourned the meeting at 3:52 PM.