Finance Committee Minutes – December 15, 2015

For your consideration, please review the minutes for the Finance Committee Meeting from December 15, 2015:

BGJWSC_Finance_Committee_Minutes_December_15,_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

Steve Swan, Executive Director

John Donaghy, Chief Financial Officer

ALSO PRESENT:       Thomas Boland, Commissioner

Pam Crosby, Director of Procurement

Clifford Adams, Commissioner (arrived at 1:30)

Chairman Elliott called the meeting to order at 1:00 PM.

PUBLIC COMMENT PERIOD

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

PRESENTATION

Peter Guido from Paymentus presented information on the Paymentus Solution Components and explained the All-in-one billing and payment solution. Insurance coverage was discussed and how possible security breach is handled. Mr. Guido explained that this is largely a service for customers and the fees can be billed per use to the customer.  It was discussed that there are approx. 1/3 JWSC customers that use on line payment.  A live on-line example was used for all to view.  A partial payment can be made and the field is editable. The potential Roundup program was mentioned and asked if customers could add to their bill.  Mr. Guido explained they have created a charitable donation tab on the on-line payment screen and can do so for JWSC.  This program can handle multiple accounts and several bills can be paid at one time.  The processing fees of $2.75 per transaction were explained and discussed.  John Donaghy explained that several other companies have been compared.  There was further discussion on other utilities charging which are tied into their fees.  This presentation was for information only.

APPROVAL

Minutes of the December 1, 2015 Finance Committee Meeting.

Commissioner Perry made a motion seconded by Commissioner Cason to adopt the minutes of the December 1, 2015 Finance Committee meeting. Motion carried 3-0-0.

Workers’ Compensation Renewal – Jarrett Bridges, Turner & Associates

Jarrett Bridges presented to the Committee on the JWSC Workers Compensation Claims. He stated there have been a significant reduction in claims over this past year.  In 2012, 2013, and 2014 JWSC was averaging over $100,000.00 in losses which includes medical indemnity.  This current year was a total of $30,000.00.  This is from great effort with the staff and Safety Stand Down Day but also the Insurance involved.  Zenith has done their part to keep costs down.  Specifically, Zenith has a representative that performs site surveys and visits looking for recommendation to make for a safer work place.  In addition, programs like defensive drivers training have helped keep costs down.  The summary of the markets were discussed.  The renewal from Zenith is $240,949 with Third Coast Underwriters at $400k.  The other companies that were contacted declined to provide a quote due to class of business and the 4 years of performance (which includes 3 expensive years that make JWSC not as attractive).  The NCCI, National Council on Compensation Insurance, Risk Mod Factor provides a formula at which calculates annual premiums based on previous loss experience.  The percentage is a debt rate based on payroll by class of operation.  Watching the pro-active response to promoting safety like the Safety Stand Down Day and the Safety Incentive Program, shows JWSC is doing a part to get the shift turned around and controlling losses.  There was further discussion on JWSC being a drug free work place and provides a credit/discount.  Jeffrey Singletary, TSI, discussed working closely with Zenith and their support team which helps keep an eye on ways to lower premiums.  The Committee members all agreed to move to the full commission.

SR 99 Water Main Extension PH 1, 2, 3 Recommendation for Award – P. Crosby

Pam Crosby introduced the project to the committee and stated the invitation to bid was advertised and had 18 contractors attend. There were three bids received: Seaboard Construction, Popco, Inc, and TB Landmark Construction.  JWSC is in the process of securing a loan through OREMC and the remaining balance will come from North Mainland Capital Tap Fee Reserves.  The terms of the loans were discussed as well as benefitting North Mainland. The staff recommended entering into a contract with Seaboard Construction, Co.  The committee all agreed to adopt and move item to the full commission for review and a vote.

Commissioner Boland made a motion seconded by Commissioner Cason to add item Determination of Debt to the agenda. Motion approved 3-0-0.

Determination of Debt Approval – J. Donaghy John Donaghy presented to the committee the policy of Debt Acquisition Compliance. Mr. Donaghy reviewed the memorandum and discussed the Financial Policy adopted on September 19, 2007 in Section 3 which included: Policy Statement, Conditions for Using Debt, and Sound Financing of Debt.  The goal of JWSC debt policy is to maintain a sound fiscal position and to protect the credit rating of the JWSC.  When the JWSC utilizes debt financing, it will ensure the debt is financed soundly and conservatively.  The policy provides provision for acquiring debt by the JWSC in which the Commission needs to make a determination before proceeding with the OREMC application.  Mr. Donaghy continued stating the staff believes the loan from the OREMC for the State Route 99 project does meet these conditions and can be financed within the terms of the policy and recommended for the full commission.

Commissioner Perry made a motion seconded by Commissioner Adams to move to the full Commission. Motion approved 3-0-0.

Chairman Elliott stated there was not enough time to go through the discussion items and recommended addressing them in the full Commission meeting beginning shortly.

Commissioner Perry made a motion seconded by Commissioner Cason to table the discussion items and be discussed in the full commission. Motion approved 3-0-0.

DISCUSSION

Director’s Update

Meeting adjourned at 1:52 pm.