Commission Meeting Minutes – Thursday, July 15, 2021

For your consideration, please read the minutes from the Commission Meeting held on Thursday, July 15, 2021 at 2:00 p.m. in the Commission Meeting Room.

Commission Mins 7-15-21 Docs

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Brunswick-Glynn Joint Water and Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Thursday, July 15, 2021 at 2:00 PM 

COMMISSION MINUTES 

PRESENT:                             

G. Ben Turnipseed, Chairman

Bob Duncan, Vice-Chairman

Chad Strickland, Commissioner

Cornell L. Harvey, Commissioner

Wayne Neal, Commissioner

Tripp Stephens, Commissioner 

ALSO PRESENT:                  

Andrew Burroughs, Executive Director

Charlie Dorminy, HBS Legal Counsel

LaDonnah Roberts, Deputy Executive Director

Todd Kline, Director of Engineering

Jay Sellers, Director of Administration

Derrick Simmons, Water Distribution Superintendent

Janice Meridith, Executive Commission Admin. 

ABSENT:                               

Charles Cook, Commissioner

 MEDIA:                                 

Pamela Permar-Shierling, The Islander                                                                                       

 Chairman Turnipseed called the meeting to order at 2:00 PM.

Chairman Turnipseed provided the invocation and Commissioner Strickland led the Pledge of Allegiance. 

PUBLIC COMMENT PERIOD

Chairman Turnipseed opened the public comment period.

There being no additional citizens for public comment, Chairman Turnipseed closed the public comment period.

Chairman Turnipseed requested a motion to excuse Commissioner Cook from this meeting.

Commissioner Stephens made a motion seconded by Commissioner Harvey to excuse Commission Cook from this Commission Meeting.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

COMMITTEE UPDATES

Facilities Committee – Chairman Turnipseed

Chairman Turnipseed reported that the Facilities Committee had met the previous day at 1:00 p.m. The Chairman stated that the Committee reviewed and forwarded three items to the full Commission for their approval. These items include a contract award for Priority Basin Clean & CCTV, a contract award for the Canal Road Water Main Installation, and Change Order No. 1 for the SPLOST 2016 North Mainland Phase III Force Main Project.  The Dunbar Creek WPCF Engineering contract was deferred until the next Facilities Committee Meeting.  The Committee discussed a list of several projects that possibly will be funded by the Revenue Bonds JWSC is considering.  The WPCF Plant Flows Report indicated that all water treatment plants are operating very well and within compliance.  The Project Report included project photos and information on the projects JWSC currently has underway. 

Finance Committee – Commissioner Duncan

Committee Chairman Duncan reported that the Finance Committee meeting was held on the previous day at 3:00 p.m. The Committee recommended that Change Order No. 1 for SPLOST 2016 North Mainland Phase III Force Main Project be forwarded to the full Commission for their approval.  The contract award for the Dunbar Creek WPCF Rehab Engineering was deferred by the Committee until the next meeting.  The project list for the potential Revenue Bond Issuance was reviewed and discussed.  Mrs. Wilson presented the Financial Statements for month ending June 30, 2021 and reviewed particular details with the Committee. 

APPROVAL

  1. Minutes from the June 17, 2021 Regular Commission Meeting

Commissioner Neal made a motion seconded by Commissioner Stephens to approve the minutes from the June 17, 2021 Regular Commission Meeting.  Motion carried 6-0-1. (Commissioner Cook was absent from the meeting). 

  1. Minutes from the June 17, 2021 Executive Session

Commissioner Harvey made a motion seconded by Commissioner Neal to approve the minutes from the June 17, 2021 Executive Session. Motion carried 6-0-1 (Commissioner Cook was absent from the meeting).

  1. Resolution – Intent to Issue Revenue Bonds – A. Burroughs

Jon Pannell and Courtney Rogers gave a brief presentation to the Commission regarding the consideration of the issuance of Revenue Bonds to fund several needed JWSC projects.  Jon Pannell discussed the preliminary credit statement and legal issues with the Revenue Bond Agreement.  Courtney Rogers discussed the scheduling, financial aspects, and meeting with the Bond Rating Agencies.  Mr. Rogers explained “wrap around debt” and how the new debt can wrap around the existing debt and will not require the organization to raise rates or find additional funding sources for repayment.  This happens when some of the old debt drops off and the new debt will be back-loaded to avoid a spike in debt.  After Mr. Burroughs reviewed the list of anticipated projects that may be funded with the Revenue Bond.  Mr. Pannell and Mr. Rogers explained how the final projects do need to be funded with the bond and that they are identified with the particular bond.  Funding can be shifted only between the specifically listed projects, and all of the projects on the list must be accomplished.  JWSC will be required to add more funding if necessary due to price increases; the projects must be accomplished.  There is some flexibility in executing at a lesser level of materials for the projects (execute with different unit quantities.)

Commissioner Neal indicated he had a question he needed to briefly discuss (via phone) with the county attorney and Charlie Dorminy, legal counsel for JWSC.

Commissioner Harvey made a motion to enter into Executive Session. 

Mr. Dorminy advised that an Executive Session was not required and this would simply be a brief break for recess only.

Commissioner Harvey rescinded the motion to enter into Executive Session.

The Commission Meeting entered into recess at 2:23 p.m.  The meeting reconvened to continue the Regular Meeting at 2:28 p.m.

With the question of what if JWSC does not have funding to add to and complete one of the projects as listed, the discussion returned to the requirements that everything listed was accomplished.  This is affected by how the project list and the scopes describing the projects are stated on the Bond documents.  A concern was to ensure that all the projects could be completed including their scopes as documented in the agreement, and did those details need to be spelled out on the Resolution being approved at this meeting.  Mr. Pannell advised that today the approval is for the Intent Resolution only and does not lock JWSC into the bond yet.  He indicated that the list as presented at this meeting was pretty generic.  He also reassured the Commissioners that there is no commitment level yet until the bond is done; the Intent Resolution only starts the process and does not require project details.  Chairman Turnipseed commented that with the exception of the water tank, the other projects’ scopes can be flexible and the details worked on for the final Resolution.  Commissioner Stephens asked what the risk was if the Commission did not pass the intent Resolution today, and Mr. Rogers responded that interest rates are the risk as we do not know if they will go up or down before that.

Mr. Rogers will price bonds on the morning of August 19, 2021 and will bring that information with him to the Commission Meeting that afternoon.

Commissioner Neal made a motion seconded by Commissioner Duncan to move that the Brunswick-Glynn Joint Water & Sewer approve the Intent to enter into a Bond Resolution.  Motion carried 4-2-1. (Chairman Turnipseed voted yes.  Commissioner Duncan voted yes.  Commissioner Neal voted yes.  Commissioner Harvey voted yes.  Commissioner Stephens voted no.  Commissioner Strickland voted no.  Commissioner Cook was absent from the meeting). 

  1. Contract Award – Priority Basin Clean & CCTV – A. Burroughs

Mr. Burroughs advised the Commission that the 2021 Priority Basin Clean and CCTV Project calls for investigation of sanitary sewer conveyance line segments in both the Mainland and St. Simons Island service districts.  This will assist JWSC in addressing various I & I related issues throughout the system.  Segments selected for inspection were identified as the highest priority basins for I & I contributions in the 2020 Master Plan Update.  Mr. Burroughs further noted that the Invitation for Bids was released on Monday, May 24th. A pre-bid teleconference was held on Wednesday, June 9th, with seven prime contractors and five subcontractors or supplier support-related in attendance.   Three bids were received, of which Southeast Pipe Survey, Inc., was the apparent low bidder in the amount of $272,250.15.  A bid tabulation was provided for the Commission to review.  This project was funded from the R & R Reserve with a budget amount of $425,000.00.

Commissioner Strickland made a motion seconded by Commissioner Duncan to recommend the full Commission approve the award of a contract for 2021 Priority Basin Clean and CCTV to Southeast Pipe Survey, Inc., in the amount of $272,250.15.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

  1. Contract Award – Canal Road Water Main Installation – A. Burroughs

Mr. Burroughs provided a brief background of the contract awarded to TB Landmark for the SPLOST 2016 North Mainland Force Main Phase III Project. He discussed the facts regarding current situations with significant material shortages, increased manufacturing/delivery lead times, as well as substantial cost increases.  While this North Mainland Project is funded by SPLOST, the water main installation is not funded by the SPLOST proceeds. TB Landmark is the contractor for JWSC on this project, and was able to order some of the materials prior to incurring significant price increases.  The suppliers are declaring force majeure and have either withdrawn quotes for piping or have issued price increases to existing bids.  Unfortunately the disruptions in the PVC and HDPE pipe supply chain have caused TB Landmark to make the request for Change Order No. 1 to the original contract.   Their request is for approval of an increase in the amount of $168,801.82, and also an additional 110 day time extension.

Commissioner Duncan made a motion seconded by Commissioner Neal to move that the Brunswick-Glynn Joint Water and Sewer Commission approve the award of a contract for Canal Road to Glynco Parkway Water Main Extension to TB Landmark Construction, Inc., in the amount of $206,890.00.  Motion carried 6-0-1. (Commissioner Cook was absent from the meeting.)

  1. Contract Award – Dunbar Creek WPCF Rehab Engineering – A. Burroughs

Mr. Burroughs advised that this item was deferred by both the Facilities Committee and the Finance Committee until the next meetings, and requested a motion to defer. 

Commissioner Duncan made a motion seconded by Commissioner Harvey to move that the Brunswick-Glynn Joint Water and Sewer Commission defer this approval item until the August Commission Meeting.  Motion carried 6-0-1. (Commissioner Cook was absent from the meeting.)

  1. Contract Order No. 1 – SPLOST 2016 North Mainland Phase III Force Main – A. Burroughs

Mr. Burroughs provided a brief background of the contract awarded to TB Landmark for the SPLOST 2016 North Mainland Force Main Phase III Project. He discussed the facts regarding current situations with significant material shortages, increased manufacturing/delivery lead times, as well as substantial cost increases.  While this North Mainland Project is funded by SPLOST, the water main installation is not funded by the SPLOST proceeds. TB Landmark is the contractor for JWSC on this project, and was able to order some of the materials prior to incurring significant price increases.  The suppliers are declaring force majeure and have either withdrawn quotes for piping or have issued price increases to existing bids.  Unfortunately the disruptions in the PVC and HDPE pipe supply chain have caused TB Landmark to make the request for Change Order No. 1 to the original contract.   Their request is for approval of an increase in the amount of $168,801.82, and also an additional 110 day time extension.

Commissioner Stephens made a motion seconded by Commissioner Harvey to move that the Brunswick-Glynn Joint Water and Sewer Commission approve Change Order No. 1 to the SPLOST North Mainland Phase III Force Main Project to TB Landmark Construction, Inc. to increase the contract amount by $168,801.82 and contract time by 110 consecutive calendar days.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

DISCUSSION

There were no items for discussion.

EXECUTIVE DIRECTOR’S UPDATE

Mr. Burroughs provided that some staff had attended the GAWP conference the previous week and were able to gain knowledge on new technology and project updates from other utilities.  He then commended the JWSC staff who worked during Tropical Storm Elsa.

CHAIRMAN’S UPDATE

Chairman Turnipseed commended JWSC staff on their work and solving problems above and beyond normal expectations.  He commended cross training and how staff members help covering each other.  Chairman Turnipseed also commended Derrick Simmons’ group, Water Distribution for their continuous efforts and working with the meters.

EXECUTIVE SESSION – Property and Litigation

Commissioner Duncan made a motion seconded by Commissioner Harvey to enter into Executive Session to discuss Property and Litigation with no vote to be taken after.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

Return to Regular Session 

Commissioner Stephens made a motion seconded by Commissioner Duncan to return to Regular Session.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

Chairman Turnipseed requested a motion to adjourn the meeting. 

Commissioner Duncan made a motion seconded by Commissioner Stephens to adjourn the meeting.  Motion carried 6-0-1.  (Commissioner Cook was absent from the meeting.)

There being no additional business to bring before the Commission, Chairman Turnipseed adjourned the meeting at 3:20 p.m.