Commission Meeting Minutes – April 20, 2017

For your consideration, please review the minutes from the Commission Meeting on April 20, 2017:

Commission Meeting Minutes April 20, 2017 with Attachments

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Brunswick-Glynn County Joint Water and Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Thursday, April 20, 2017 at 2:00 PM 

COMMISSION MINUTES

 PRESENT:                             

Donald M. Elliott, Chairman

Clifford Adams, Vice-Chairman

Michael Browning, Commissioner

Cornell L. Harvey, Commissioner

Steve Copeland, Commissioner

Dave H. Ford, Commissioner

ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Charlie Dorminy, Legal Counsel HBS

Thomas A. Boland, Sr., Deputy Director

John D. Donaghy, Director of Administration & Finance

Todd Kline, Senior Engineer

Pam Crosby, Director of Purchasing

Jay Sellers, Public Information Officer

ABSENT:                              

Robert Bowen, Commissioner                                               

Chairman Elliott called the meeting to order at 2:00 PM.  Chairman Elliott provided the invocation and Commissioner Copeland led the pledge.

PUBLIC COMMENT PERIOD

Chairman Elliott opened the public comment period.  There being no citizens for public comment, Chairman Elliott closed the public comment period. 

COMMITTEE UPDATES

Finance Committee – Chairman Elliott

Chairman Elliott updated the Commission that the Finance Committee and Compliance & Legislative Committee had met together. Fees and how they are processed were discussed, along with compliance issues and concerns.  The Operating and Maintenance Reserve Policy was approved to be forwarded to the full Commission. The Committee also reviewed the Capital Improvements Plan that the Executive Director is working on, of which will be reviewed again by the Finance Committee, and then presented to the Commission. The next meeting will be held on May 17, 2017 at 2:00 pm.

Compliance & Legislative Committee – Commissioner Browning

Commissioner Browning updated the Commission that the Compliance & Legislative Committee had met and discussed issues such as fines, fees, delinquent accounts and permitting.   The next meeting will be held on May 17, 2017 at 1:00 pm.

Facilities Committee – Commissioner Adams

Commissioner Adams updated the Commission that the Facilities Committee had met and discussed the Progressive Design/Build Services for 2016 SPLOST North Mainland Sewer Improvements Project Phase 1 and Lift Station 4048 Project.  The next meeting will be held on May 11, 2017 at 3:00 pm. 

Human Resources & Safety Committee – Commissioner Harvey

No update at this time.  The next meeting will be held on Thursday, May 4, 2017 at 10:00 am.

Public Information & Customer Relations Committee – Commissioner Copeland

No update at this time. The next meeting will be held on Tuesday, May 2, 2017 at 2:00 pm. 

APPROVAL

  1. Minutes from the April 6, 2017 Regular Meeting

Commissioner Harvey made a motion seconded by Commissioner Browning to approve the minutes from April 6, 2017 Regular Meeting.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

  1. Minutes from the April 6, 2017 Executive Session

Commissioner Adams made a motion seconded by Commissioner Ford to approve the minutes from April 6, 2017 Executive Session.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

  1. Minutes from the April 13, 2017 Special Called Meeting

Commissioner Harvey made a motion seconded by Commissioner Browning to approve the minutes from April 13, 2017 Special Called Meeting.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

  1. Lift Station 4048 Pipe Fittings Pre-Purchase – P. Crosby

Pam Crosby presented the recommendation to pre-purchase the pipe fittings required for the upcoming Force Main Improvements Project on Lift Station 4048, which is the first Project planned to address the North Mainland Sewer Capacity issues. The Invitation For Bid on the construction was released on March 24, 2017.  The approval to pre-purchase the pipe was granted by the Commission on April 4, 2017.  Pam explained that at the IFB Pre-Bid meeting there were concerns about the pipe fittings, and it was confirmed that there was a need to also pre-purchase them.  Pam noted that there were bids requested from 4 suppliers, with 3 bids received. The possible 16 week lead time for the delivery of some of the fittings may cause up to a 30 day delay in the Project which had an initial start date of July 1, 2017.  Staff recommended that JWSC immediately make a direct purchase for this material.

Commissioner Ford made a motion seconded by Commissioner Adams to approve the pre-purchase of the listed pipe fittings for the Lift Station 4048 Force Main Improvements, Project No. 701 from HD Supply Waterworks in the amount of $79,725.72.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

  1. Operating Reserve Policy – J. Donaghy

John Donaghy presented the proposed adjustment to the funding level of the Operating Reserve.  He advised that in June, a six month balance was placed in the Operating Reserve.  A portion of that money was used for the purchase of needed vehicles and equipment.  That money has not been replenished in the reserve as of yet. The proposed increase in the operating budget for fiscal year 2017-18 would require additional funding of the Operating Reserve to reach the six month balance.  To minimize the projected rate increase, the Commission can reduce the targeted balance of the Operating Reserve to a four month balance, which will eliminate the revenues necessary to fund an increase in the reserve balance.  These reserves are set aside in the case of a large expenditure or emergency. 

Commissioner Browning made a motion seconded by Commissioner Harvey to establish the target level of the Operating Reserve at four months of operating expenses effective as of April 20, 2017.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

DISCUSSION

  1. Financial Report – April End of Month Comparative – J. Donaghy

John Donaghy presented the April end of Month Comparative Financial report to the Commission.  He discussed the Balance Sheet, and noted the Bond Sinking Fund increase which is accumulated on a monthly basis for payment on the 2010 Revenue Bonds due in June.  Under the Restricted Cash Accounts, the JWSC Reserves dropped due to funding through fees and infrastructure improvements projects, but is offset by an increase under the Capital Assets.  John also mentioned the Accounts Payable drop, and indicated that this balance depends on the time of year and when payments are due. He then discussed the Supplemental Schedule of Cash Balances and the Commission Report, and indicated that in looking at total revenues over cash requirements, JWSC is close to breakeven and funds need to be closely monitored.  Review of the Project Report reflected a final deficit of $90K in R & R funding. Additional discussion regarded the 4 districts and how they are divided or separate. 

EXECUTIVE DIRECTOR’S UPDATE

Mr. Junkin commented that Staff has been working hard on the budget trying to reduce it and get the overall rate impact down.  Work with the Consultant is in progress.  There have been substantial changes made to the original budget and rates.  JWSC is considering a Round Up Program, that would be funded by customers who are willing to round their bills up to the nearest dollar to help funds for those ratepayers who financially cannot pay their bills.  JWSC’s legal counsel is researching possible legal issues with such a program.  Mr. Junkin also mentioned the need for understanding that the Lift Station 4048 parts purchase approval was another step in moving forward in the way of getting the SPLOST money going and getting the capacity back on the North Mainland.   

CHAIRMAN’S UPDATE

Chairman Elliott commented that regarding rate study, JWSC is looking at potential bond issue next year to repair Academy Creek and Dunbar facilities.  The estimate is $35M for those projects.  This will put JWSC into about $65M to $70M of debt.  He then noted what the city and county water and sewer bills would look like to fund this debt, before adding any operating costs, administrative costs, or anything into the reserves for restore and renewal. Staff has been working very hard to try to reduce the debt.  Going forward water bills in Glynn County will be higher in order to do the repair and rehab necessary for the sewer facilities and water distribution systems. 

EXECUTIVE SESSION

Commissioner Adams made a motion seconded by Commissioner Harvey to adjourn into Executive Session to discuss property and litigation issues.  Motion carried 6-0-1.  (Commissioner Bowen absent)

The Chairman stated that there will not be a vote after the Executive Session. 

Return to Regular Session.

Commissioner Adams made a motion seconded by Commissioner Copeland to return to the Regular Meeting.  Motion carried 6-0-1.  (Commissioner Bowen absent) 

Commissioner Adams made a motion seconded by Commissioner Browning to adjourn the Commission Meeting.  Motion carried 6-0-1.  (Commissioner Bowen absent)

There being no additional business to bring before the Commission, Chairman Elliott adjourned the open meeting at 3:49 pm.