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Combined Facilities and Finance Committee Meeting Minutes – Wednesday, June 19, 2024

Written by Janice Meridith on . Posted in Facilities Committee Minutes, Finance Committee Minutes.

For your consideration, please read the minutes from the Combined Facilities and Finance Committee Meeting held on Wednesday, June 19, 2024 at 10:00 a.m. in the Commission Meeting Room.

Combined Facilities-Finance Minutes 6-19-24 with Attachments

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

Brunswick-Glynn Joint Water & Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Commission Meeting Room

Wednesday, June 19, 2024, at 10:00 AM 

COMBINED FACILITIES & FINANCE

COMMITTEE MEETING MINUTES

PRESENT:                             

Ben Turnipseed, Commission Chairman

Clayton Watson, Finance Committee Chairman (Via Zoom)

Charles Cook, Commissioner (Via Zoom)

Dave Ford, Commissioner

Lance Sabbe, Commissioner

Andrew Burroughs, Executive Director                                   

ALSO PRESENT:                  

Wayne Neal, Commissioner

LaDonnah Roberts, Deputy Executive Director

Todd Kline, Director of Engineering                                     

Pam Crosby, Director of Procurement

David Owens, Director of Finance

Frances Wilson, Accounting Manager

Janice Meridith, Executive Commission Admin. 

MEDIA PRESENT:               

Taylor Cooper, The Brunswick News 

Chairman Turnipseed called the meeting to order at 10:00 AM.

Chairman Turnipseed provided an invocation.

PUBLIC COMMENT PERIOD

Chairman Turnipseed opened the Public Comment Period.

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

APPROVAL

  1. Health Insurance Annual Renewal – A. Burroughs / Catina Tindall, First Coast Benefits Solutions

Mr. Burroughs highlighted some background details on JWSC’s Employee Insurance. As of August 1, 2020, JWSC migrated to a self-funded insurance program with United Healthcare due to rising insurance costs. Fiscal Year 2019 and 2020 employer costs for health insurance were $1,915,468 and $1,837,048, respectively. During the 2023 renewal, the individual stop loss was increased to $100,000. Staff bi-weekly deductions have remained the same as they were for the most recent fully funded insurance renewal. Catina Tindall with First Coast Benefits Solutions then presented the detailed data, historic numbers, plan options and benefits considered, etc. There were no increases in employee premium costs.  One main change for JWSC was based on claims history and after discussions with First Coast Benefit Solutions, staff recommended increasing the individual stop loss coverage once again to $150,000. Based upon expected claims projections by United Healthcare, increasing the individual stop loss coverage to $150,000 decreases expected costs by $23,508.72 annually. If claims were to come in under projections by UHC, this would result in additional savings to the JWSC. Total annual maximum liability would increase $7,940.  In the Fiscal Year 2025 budget, Group Insurance is budgeted at $1,599,100 from JWSC funding with expected staff contributions to be around $350,000 based upon currently enrolled employee count. As vacant positions are filled, the employee contributions could increase to approximately $400,000 annually, depending on coverage levels elected.  This provides a total funding for the year at $1,949,100-$1,999,100 for health insurance. Should costs exceed this total, JWSC has established a Group Insurance Reserve with a current balance of $952,862.

Commissioner Ford made a motion seconded by Commissioner Sabbe that the Combined Facilities & Finance Committees recommend renewing the employee insurance coverage to be effective August 1, 2024, as presented.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Virtual Card Program and Limits – D. Owens

Staff from Synovus Banking were not able to be present to explain the Virtual Card Program.

Commissioner Sabbe made a motion seconded by Commissioner Ford to defer agenda item #2 until the July Finance Committee Meeting. Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Minutes from Facilities Committee Meeting May 15, 2024

Commissioner Ford made a motion seconded by Chairman Turnipseed to approve the minutes from the Facilities Committee Meeting held on May 15, 2024.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Minutes from Finance Committee Meeting May 15, 2024

Commissioner Sabbe made a motion seconded by Commissioner Watson to approve the minutes from the Finance Committee Meeting held on May 15, 2024.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Fiscal Year 2025 Rate Resolution – A. Burroughs

Mr. Burroughs recalled that each year the Brunswick-Glynn Joint Water and Sewer Commission reviews the resolution previously passed by the Board to document rates and fees associated with JWSC’s products and services to our customers (the “Rate Resolution”). This document is a public record, and it is made available to interested parties on the JWSC website as well as upon request for printed copies.  Mr. Burroughs provided a redlined Rate Resolution draft for Fiscal Year ending June 30, 2025, and explained the 5 proposed revisions including:

  1. Administrative Base Charge fees for water and sewer have been adjusted per the Board’s approval of this item at the May 16, 2024, meeting for an increase of $0.50. (page 2 of 8)
  2. Resident Equivalent Unit (REU) fees for water and sewer have been adjusted per the Board’s approval of this item at the May 16, 2024, meeting for an increase of $0.25. (page 2 of 8)
  3. User rates for water and sewer usage over 1,000 gallons per month have been adjusted per the Board’s approval of this item at the May 16, 2024, meeting for an increase of 3%. (page 2 of 8)
  4. Industrial fees for Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) have been adjusted using the rolling average of the past three years costs. (page 2 of 8)
  5. Water installation services where work is required to cross a divided roadway will be “At Cost”. (page 5 of 8)

Commissioner Sabbe made a motion seconded by Commissioner Ford that the Combined Facilities & Finance Committees recommend the Brunswick-Glynn Joint Water and Sewer Commission approve the attached Rate Resolution for the fiscal year ending June 30, 2025.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.) 

  1. Pension Plan IRS Addendum – D. Owens

Mr. Owens stated that the Internal Revenue Service requires that the BGJWSC periodically requests IRS’s review of our defined benefit retirement plan to be granted a favorable determination letter. A favorable determination letter expresses the IRS’ opinion that the plan’s terms (as stated in the plan document) meet the Internal Revenue Code’s tax-qualification requirements. This is mandatory for:

  • BGJWSC to deduct contributions made to the plan up to the applicable limits;
  • The plan participants to be able to defer income taxes on the amounts contributed to the plan; and
  • The plan participants’ contributions to grow tax-deferred until distributed from the plan.

Mr. Owens added that JWSC has received notification from the Georgia Municipal Employees Benefit System (“GMEBS”) that we must make this request to the IRS so we will be able to receive and file a new determination letter by March 31, 2025. GMEBS will assist us in this process, but they require that certain forms be signed and returned to them.

Commissioner Ford made a motion seconded by Commissioner Sabbe that the Combined Facilities & Finance Committees recommend the full Commission the Brunswick-Glynn Joint Water and Sewer Commission Chairman be authorized to sign the forms required to facilitate the Internal Revenue Service review necessary to issue a favorable determination letter related to the JWSC defined benefit retirement plan.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Newcastle & Sea Palms W. Drive Paving Contract – A. Burroughs

Mr. Burroughs provided that the JWSC has two large paving repairs that are over two years old. One is 920 feet of Sea Palms West Drive that needs repaving following issues created by defects in the existing sewer lines. These sections were repaired via CIPP by Insituform. The other is 236 feet of Newcastle Street that needs repaving following issues created by defects in the existing sewer line. This section was repaired via open cut method by JWSC staff.  The JWSC has struggled to get paving contractors to price prospective work for the past few years. Staff has been able to make some progress on smaller patch jobs based upon monthly paving lists generated from road cuts by SP&M and Water Distribution. Evans Asphalt Repair, LLC has provided quotes to repair these two larger repairs: Sea Palms West Drive in the amount of $113,344.00, and Newcastle Street in the amount of $83,489.80. Staff have been unable to receive quotes from other contractors to complete these paving repairs. This item will be funded by the SP&M Operations budget.

Commissioner Ford made a motion seconded by Commissioner Sabbe that the Combined Facilities & Finance Committees recommend awarding a contract to Evans Asphalt Repair LLC for paving repairs to Newcastle Street and Sea Palms West Drive in the amount of $196,833.80.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Dunbar Creek WPCF Rehab Change Order No. 4 – A. Burroughs

Mr. Burroughs gave a brief background on the design-build contract and change orders with BRW Construction Group for the Dunbar Creek WPCF Rehab project. He then explained why Change Order No. 4 is being requested for approval. Aeration Basin No. 2 at Dunbar Creek has an 18” butterfly valve on the effluent line conveying flow to the clarifiers. This butterfly valve has caused issues recently when it has vibrated itself closed, causing backups into the aeration basin. Due to operator intervention, performance issues were not experienced; however, given that Dunbar Creek is not manned continuously, there is significant risk to leaving this valve as is. Due to process changes over time, there is little use for this valve to remain in place. Staff requested BRW to look at installing a line stop downstream of the valve and to remove the valve from the line. The cost to perform this work is $40,253. The new reuse water system that has been installed at Dunbar Creek is currently uncovered. The hope was that the structure over the old filter structured could be reused to cover the reuse system. However, the cost to modify the structure exceeds the cost to install a new structure over the reuse system. The cost to install a new structure over the reuse pump skid is $12,840.  The combined cost of these two items is $53,093. Staff recommends moving forward with these two improvements which would increase the total value of the contract for the Dunbar Creek WPCF Rehab project to a total amount of $8,441,508.47 to cover the costs associated with the additional scope of work. This portion of the project is funded by the R&R Reserve and is JWSC Capital Project No. 2106R.

Commissioner Ford made a motion seconded by Commissioner Sabbe that the Combined Facilities & Finance Committees recommend approving Change Order No. 4 in the amount of $53,093.00 to BRW Construction Group, LLC for scope changes associated with the Dunbar Creek WPCF Rehab project.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Contract Award – Exit 42 Elevated Storage Tank – A. Burroughs

Mr. Burroughs advised that elevated water storage is a vital component for reliability and operational efficiencies for a water system.  The GA EPD recommends public water systems provide for an elevated storage volume equal to their average 24-hour demand to accommodate peak flows and fire flows.  The JWSC North Mainland continues to experience increased residential and commercial growth which brings an associated demand for potable water and fire protection provision.  In concert with the JWSC Master Plan, recent planned improvements have included water production (well) facilities such as Ridgewood WPF and Canal WPF as well as the construction of multiple water main loops to improve flow, operational and quality conditions.  An elevated storage tank to support the current and projected demands of the Spur25/SR99/I-95 Exit 42 service area will improve the North Mainland system by providing resiliency with demand and operational control. JWSC staff designed and solicited for the construction of a 750,000-gallon composite elevated water tank to be constructed on property obtained from the Golden Isles Development Authority, adjacent to and south of I-95 Exit 42. Staff recommends awarding a contract to the apparent low bidder Phoenix Fabricators & Erectors, LLC in the amount of $4,734,713.00. This item will be funded by the Series 2021 Bond Issuance and is Capital Project No. 2213.  The original budget set for this project was $3,000,000, of which $2,977,188 remains uncommitted. The remaining $1,757,525 will come from the currently uncommitted balance of the bond issuance of $2,363,086.

Commissioner Sabbe made a motion seconded by Commissioner Ford that the Combined Facilities & Finance Committees recommend awarding a contract to Phoenix Fabricators & Erectors, LLC, for construction of Exit 42 Elevated Storage Tank in the amount of $4,734,713.00.  Motion carried 5-0-0.  (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

  1. Dedication of Easements and Infrastructure – T. Kline
  • Fifty Oaks Subdivision – Dedication of Infrastructure and Easement

Mr. Kline provided that the Developer of the Fifty Oaks Subdivision has submitted legal documents to define and execute the transfer of ownership. The infrastructure is understood to have complied with applicable standards at the time of construction.  JWSC inspection records indicate the infrastructure was constructed to JWSC Standards, is functioning, and is in acceptable condition. All requirements of the JWSC Standards for Water and Wastewater System Design and Construction and Development Procedures have been met, and all related documents submitted.

Commissioner Sabbe made a motion seconded by Commissioner Ford that the Joint Facilities & Finance Committee recommend the full Commission approve and accept this project with associated documentation.  Motion carried 5-0-0. (Commissioner Cook and Commissioner Watson voted YES via Zoom.)

DISCUSSION

  1. Financial Statements Month End May 31, 2024 – F. Wilson

Mrs. Wilson presented the financial statement for the month ending May 31, 2024. She reviewed the Balance Sheet noting the Current Assets and Current Liabilities and briefed the Committee on the Combined Revenue Statement.  The various Operating Revenues accounts were noted, and details on the Summary of Revenues and Summary of Expenses were highlighted.  Mrs. Wilson briefly reviewed line items on the Cash Balances and the Project Report. 

  1. Water Production Report – A. Burroughs

Mr. Burroughs presented the Water Production Report for the month of May 2024. This report provides the Committee with the monthly and daily water production in millions of gallons for each of the BGJWSC water production facilities (wells). The following are Brunswick District production facilities:  Howard Coffin, Goodyear Park, Brunswick Villa, FLETC, I-95, Golden Isles I, Golden Isles II, Canal, and Ridgewood.  The South Mainland District wells include Fancy Bluff, Exit 29, and Brookman. Mallery, Airport, Harrington, and Hampton South are the wells located in the St. Simons Island District.

  1. WPCF Plant Flows Report – A. Burroughs

Mr. Burroughs reviewed the May 2024 Monthly Wastewater Flow Report with the Commissioners. This report contains data regarding the influent and effluent flows, concentration of elements and chemicals, plant capacity, etc. May 2024 had a lower recorded rainfall at Academy Creek than the month of April.  The influent flow at Academy Creek for May was 7.4 MGD as compared to April at 8.4. The effluent flow for May increased from April’s 7.9 MGD to 6.6 MGD, with the plant operating at 49% of its capacity.  The influent flow at Dunbar Creek for the month of May was 3.5 MGD, and the effluent flow was at 3.4 MGD, with the plant operating at 85% capacity.  The influent flow at South Port was N/A and the effluent flow reported at 0.468, with the plant operating at 31% capacity.  JWSC’s wastewater treatment plants are operating very well. 

  1. Capital Project Report – T. Kline / A. Burroughs

Mr. Kline and Mr. Burroughs presented an update on the monthly Project Report for Capital Projects currently in process including those in the engineering phase and those in construction.  The Commissioners were provided with a packet containing: the Capital Project Photographs, Capital Project Report Spreadsheet, the Capital Project Gantt Chart of project timelines, and the Earned Value Analysis Report.  Mr. Kline and Mr. Burroughs presented the update by highlighting projects along with excellent photographs and descriptive details.

Executive Session

Commissioner Sabbe made a motion seconded by Commissioner Ford to move into Executive Session to discuss Personnel.  Motion carried 5-0-0. (Commissioner Cook and Commissioner Watson voted “YES” via Zoom.) 

Return to Regular Session 

Commissioner Ford made a motion seconded by Commissioner Sabbe to return to Regular Session.  Motion carried 5-0-0. (Commissioner Cook and Commissioner Watson voted “YES” via Zoom.)

Commissioner Ford made a motion seconded by Commissioner Sabbe to adjourn the meeting.  Motion carried 5-0-0. (Commissioner Cook and Commissioner Watson voted “YES” via Zoom.)

Chairman Turnipseed adjourned the meeting at 12:35 p.m.