Commission and Public Hearing Minutes – June 26, 2014
For your consideration, please review the minutes for the Commission and Public Hearing Meeting from June 26, 2014:
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PRESENT: Dale Provenzano, Chairman
Thomas A. Boland, Commissioner
John A. Cason, III, City Commissioner
Sandra J. Dean, Commissioner
Donald M. Elliott, Commissioner
David H. Ford, Commissioner
Ronald E. Perry, Commissioner
ALSO PRESENT: Stephen A. Swan, Executive Director
Desiree E. Watson, JWSC Attorney
Barbara Rogers, JWSC Acting Clerk
Chairman Provenzano called the meeting to order, Commissioner Perry provided the invocation, and Commissioner Elliott led the pledge.
PUBLIC COMMENT PERIOD
There being no citizen that wished to address the Commission, Chairman Provenzano closed the Public Comment Period.
Communications & Customer Service – Commissioner Dean
No report at this time.
Economic Development – Chairman Provenzano
Chairman Provenzano stated the Canal Crossing project is moving ahead quickly. All the anchor stores have signed, however, no formal announcement will be made until after the due diligence period.
Two projects are moving forward on Saint Simons Island, the IDAC building and a new hotel at the airport.
Facilities – Commissioner Perry
No report at this time.
Finance – Commissioner Elliott
No report at this time.
Human Resources – Commissioner Cason
No report at this time.
Legislative – Chairman Provenzano
No report at this time.
1. Minutes of the June 5, 2014 regular meeting, subject to any necessary changes.
Commissioner Elliott made a motion seconded by Commissioner Dean to approve the minutes of the June 5, 2014 regular meeting. Motion carried 7-0-0.
2. Award of Wage & Benefit Compensation Study to Condrey & Associates, Inc. – S. Swan
Executive Director Swan stated the JWSC acquired three (3) proposals for conducting a comprehensive Wage & Benefit Study to compare our current pay scale as well as our current benefit program to other organizations within our type of business. The study will also review and compare our current job descriptions with other like utilities.
Condrey & Associates was found to have the services and qualifications to best meet our needs and intent.
Commissioner Elliott made a motion seconded by Commissioner Cason to approve the agreement with Condrey & Associates, Inc. to complete the four (4) month wage & benefit study at a fix fee of $33,000 and $1,000 for any follow-up JWSC site visits during the extended term of the agreement and authorize the chairman to sign the necessary documents. Motion carried 7-0-0.
3. Amendment to the Human Resources Standards of Practice – S. Swan
Advance Notice of Leave Request
Approval of Outside Employment
Mr. Swan stated the amendments proposed to the Human Resources Standards of Practice were to provide for advance notice of leave and to provide for Director’s approval of outside employment. The proposed changes have received the Human Resources Committee recommendation to approve.
Commissioner Cason made a motion seconded by Commissioner Boland to approve the amendments to the Human Resources Standards of Practice to provide for advance notice of leave and to provide for Director’s approval of outside employment. Motion carried 7-0-0.
4. Proposed Changes to the City and County Ordinances to provide for landlord accounts for residential rental properties; to provide for letter of credit in lieu of cash deposit; and for other purposes. – D. Provenzano
Mrs. Watson stated the proposed changes had come from the work of the Legislative Committee. The amendments would provide for landlord accounts for residential rental properties; and to provide for a letter of credit in lieu of a cash deposit. Mrs. Watson stated that while an Ordinance gives the Utility the authority to go forward, the JWSC would need to develop policies prior to implementing the changes.
Commissioner Elliott made a motion seconded by Commissioner Cason to approve the proposed amendments to the Water & Sewer Ordinances and forward to City and County for their consideration. Motion carried 7-0-0.
5. Applied Technology & Management, Inc. Professional Engineering Services Contract for Updating the JWSC Water & Sewer Master Plan – S. Swan
Mr. Swan stated that Applied Technology & Management, Inc. was hired by the JWSC in 2008 to research and develop a 20 year Master Plan for the water and sewer utilities owned by JWSC. The original plan was completed in 2009. Due to the change in economy, infrastructure needs, and projects already completed, a five (5) year update was requested by the current Commission with the recommendation to update every 5 years under the current master plan provisions. ATM is regularly updated on all JWSC projects and holds our water and sewer modeling program. Mr. Swan recommended awarding the contract based on his sole source determination.
Commissioners held a discussion on the tasks addressed in the agreement and the possibility some of these tasks could be performed in-house by JWSC staff; such as identifying the current condition of our infrastructure. Several Commissioners stated this would be a starting place so that the Commission can determine where we need to go. Commissioner Perry stated this would give the JWSC a forecast for future planning. Chairman Provenzano requested staff research the issue of updating and maintaining the modeling in-house and draft an amendment to the contract or provide a separate agreement for the July 17, 2014 meeting.
Commissioner Cason made a motion seconded by Commissioner Ford to defer action until the July 17, 2014 meeting. Motion carried 5-2-0. (Commissioners Provenzano and Commissioner Elliott cast the opposing vote).
6. Conditions for Utilizing Debt – OREC Loan Application – J. Donaghy
Mr. Swan stated the JWSC is submitting a loan application to the Okefenoke Rural Energy Cooperative (OREC) in the amount of $750,000 to finance the expansion of water distribution facilities in the area of State Route 99 in Glynn County. The JWSC will place an amount equal to the outstanding principal of the loan in an escrow account, restricted for the purpose of providing the required security interest for the OREMC. These funds will be transferred from the North Mainland Capital Tap Fee Reserve. The Financial Policy of the JWSC states that debt financing of capital improvements and equipment will be done only when certain conditions exist, as presented. Bond counsel has been consulted to assure that the security and repayment of the loan are not in conflict with the bond indenture.
Commissioner Elliott made a motion seconded by Commissioner Perry that the JWSC affirm that the Conditions of Using Debt as contained in the JWSC Financial Policy exist in regard to the State Route 99 Waterline loan application. Motion carried 7-0-0.
7. Belle Point Homeowner’s Association Lease – S. Swan
Mr. Swan stated the JWSC entered into a lease of property to the Belle Point Homeowner’s Association on May 20, 2010 for $100 per year. Staff recommends the JWSC renew the lease for the third of three optional one year renewals for the year ending May 20, 2015.
Commissioner Elliott made a motion seconded by Commissioner Cason that the JWSC renew the lease with the Belle Point Homeowner’s Association, Inc. for the third of three optional one year renewals for the year ending May 20, 2015 with the annual rent of $100.00 and to authorize the Chairman, Executive Director and Chief Financial Officer to execute the documents necessary subject to approval of legal counsel. Motion carried 7-0-0.
Executive Director, Steve Swan, stated the Canal Crossing project is moving along well with weekly engineering meetings being held.
Kirk Young has accepted the position of Sewer Distribution Superintendent with a start date of July 7, 2014. In-house candidate, Derrick Simmons, has been promoted to the Water Distribution Superintendent position. Interviews are currently underway for the Purchasing Director position and a decision is expected soon.
Chairman Provenzano made a motion seconded by Commissioner Perry to close the public meeting and adjourn to executive session to discuss personnel issues. Motion carried 7-0-0.
Back in Session, no action taken.
PUBLIC HEARING – 5:00 P.M.
FY 14-15 BUDGET
Chairman Provenzano welcomed those in attendance and introduced the members of the Commission. Executive Director Swan introduced staff.
Andy Burnham of Burton & Associates presented a short power point report on the rate analysis of the JWSC.
Robert Potokar, Saint Simons Island, and Jim and Jeanette Pewitt, Brunswick, spoke with Commissioners and asked questions on sewer expansion into unserved areas, and water quality.
Commissioner Dean made a motion seconded by Commissioner Elliott to return to general session. Motion carried 6-0-0. (Commissioner Cason not available for the vote).
1. Adopt the FY 14-15 Budget – J. Donaghy
Commissioner Perry made a motion seconded by Commissioner Ford to accept and approve the July 1, 2014 to June 30, 2015 budget in the amount of $24,638,500. Motion carried 6-0-0. (Commissioner Cason not present for the vote).
2. Adopt the FY-14-15 Rate Resolution – J. Donaghy
Commissioner Elliott made a motion seconded by Commissioner Perry to adopt the Rate Resolution for the fiscal year ending June 30, 2015, and to extend the 50% reduction in capital tap fees until a study is completed but not later than December 31, 2014. Motion carried 6-0-0. (Commissioner Cason not present for the vote).
Commissioner Ford stated the Commission needed to schedule a time to discuss the 50% capital tap fee reduction. Chairman Provenzano responded that a work session would be scheduled for August to discuss this issue.
There being no further business to bring before the Commission, Chairman Provenzano adjourned the meeting.