Finance Committee Minutes – January 19, 2016

For your consideration, please review the minutes for the Finance Committee Meeting from January 19, 2016:

BGJWSC_Finance_Committee_Minutes_January_19,_2016

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

PRESENT:                 

Donald Elliott, Chairman

John Cason, Commissioner

Steve Swan, Executive Director

John Donaghy, Chief Financial Officer       

ALSO PRESENT:      

Stephen A. Swan, Executive Director

Pam Crosby, Director of Purchasing

ABSENT:                   

Ronald E. Perry, 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.

APPROVAL

Minutes of the December 15, 2015 Finance Committee Meeting.

Commissioner Cason made a motion seconded by Commissioner Elliott to adopt the minutes of the December 15, 2015 Finance Committee meeting. Motion carried 2-0-1 (Commissioner Perry was absent for the vote).

SR 99 OREMC Loan Documents – P. Crosby

Pam Crosby presented the OREMC Loan package and indicated this will be going to the full Commission and will include contract document and promissory note. The Memorandum stated the JWSC counsel has collaborated with OREMC counsel and staff to create the loan documentation to acquire funding for the SR99/US341 Sterling Industrial Park – Water Main Extension project in the amount of $750,000.  The terms of the agreement allow for a zero interest loan in a 10-year payback period.  A memorandum to issue debt per the Operating Agreement will need to be approved by the full Commission on January 21, 2016 meeting.  The loan states that JWSC does not have to start paying back the loan for up to 2 years if needed.   It was stated that the Capital Tap Fees can be used to repay the debt.  It was stated that there is no pre-payment fee imposed.  The Committee members were in agreement to forward to the full Commission.

DISCUSSION

 December End of Month Financial Comparative – J. Donaghy

John Donaghy discussed the End of Month finances. We are on target to surpass 2015 revenues and most departments and fuel costs are under budget.  The Commission Report was discussed.  John updated the committee on the Hauler fees and stated the Biosolids Disposal was over budget due to the burner being inoperable.

Department Level Budget Execution – J. Donaghy

John stated there are items significantly under or over and these are being discussed with the departments. Overtime was discussed as being over more than normal due to sink holes and rain per Mr. Swan.  Other items were discussed, i.e,: Invoice for county for SPLOST 5, Brown & Caldwell Hercules Permit, Repair and Replace project expenses, and Fire Hydrant reimbursement.

Project Funding Status – J. Donaghy

The project funding goes through funding source and identified with Executive Director and Senior Engineer. Various projects and the funding sources were discussed.  Mansfield Street project was discussed and requested for a start and end date be listed on the signage.  The land swap with the city was discussed and noted that the city attorney is reviewing at this time.

Update SPLOST Funding Status – S. Swan

Mr. Swan discussed the projects related to SPLOST. The proposal to reallocate SPLOST funds would leave 1.3M as the new balance for the North Mainland WWTF.  In the JWSC Master Plan Academy Creek falls within the requirements.  It was stated that JWSC is spending 700K a year in oxygen and meetings are planned to consider other options.  It would require to go to full Commission for approval.  Sewer Line Rehabilitation was discussed.  Mr. Swan shared maps showing areas near Atlantic Street.  Areas on SSI that are still on septic were discussed and included: Glynn Haven, Hampton Plantation, 70% of Sea Island, Epworth Acres, Sinclair, North & South Hampton, to name a few.  Water Line rehabilitation was also discussed and possible ways to pay for projects.

Review Financial Analyst Job Description – S. Swan

Mr. Swan discussed the Financial Analyst job position and stated the Finance Department needs assistance. There is currently no funding available at this time.  The next budget will need to reflect this position after the Human Resources Committee approves.  This position would work primarily with statistical reporting.

Financial Policies Status – J. Donaghy

John stated the Financial Policies would be best advised by Mauldin & Jenkins. The Carl Vinson Institute was suggested.  It was stated that Financial Policies will need to be in place by next audit and would include, basic procedure and solid understanding of internal controls.

Upcoming Contract Renewals – P. Crosby

Pam Crosby updated the Committee on the contracts coming up for renewal. She discussed Driggers Realty for the property listing agreement.  It was recommended to provide to the Facilities Committee for an RFP.  The Agreement ends March 9th and will be looking to get an update on the rental property. The rental property will be available on Thursday for a walk through. Legal Services were discussed and a business review will be performed for first year of service. The contract with Jones Edmunds were discussed.  They are the implementation to get our Cityworks systems.  There is a need to define expectations in the contract. UV Disinfection System / Chlorine options were discussed.  It was requested to place out for an RFP but noted the chemicals are not currently approved in GA and this involve additional testing.  The oxygen company will be here next month to discuss contract.  Property and Liability Insurance policies were discussed and noted that Matt Lemke is working with the vehicle spreadsheet. TeamWorks Services, Inc. contract will be reviewed in March.  Preliminary pricing will be reviewed with the Human Resources and Finance Committees.  The contractor reviewing the Elevated Storage Tanks will be providing a report to the full commission soon.  It was stated that hiring a 3rd party inspector have made a big difference.

Director’s Update

Mr. Swan provided updates for the committee members. There was additional discussion on JWSC process and procedures when a new business sets up an account.  It was stated there are required documents completed but may need to be updated.  It was stated that additional charges are being considered in the proposed Rate Resolution.  Solar Energy was discussed and it was stated there have been two presentations in the last year.  Academy Creek is working with solar panels on capped land fill.  The area of Arco was discussed and stated a gravity sewer system is of concern in the area.  There is a grant available.

Meeting adjourned at 4:07 pm.