Commission Meeting Minutes Thursday, June 21, 2018

For your consideration, please read the minutes from the Commission Meeting held on Thursday, June 21, 2018.

Commission Meeting Minutes 6-21-18 with Attachments (2)

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Brunswick-Glynn County Joint Water and Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Thursday, June 21, 2018 at 2:00 PM 

COMMISSION MINUTES

 PRESENT:                             

Donald M. Elliott, Chairman

Mike Browning, Vice-Chairman

Cornell L. Harvey, Commissioner

Steve Copeland, Commissioner

Tripp Stephens, Commissioner

Ben Turnipseed, Commissioner

ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Charlie Dorminy, Legal Counsel HBS

Andrew Burroughs, Deputy Executive Director

Todd Kline, Director of Engineering

 John D. Donaghy, Director of Finance

Jay Sellers, Director of Administration

Janice Meridith, Exec. Commission Administrator

Mark Ryals, Superintendent

Kirk Young, Superintendent

Cindy Barnhart, T.S.I. 

MEDIA PRESENT:               

Taylor Cooper, The Brunswick News

Pamela Permar Shierling, The Islander 

ABSENT:                               

Clifford Adams, Commissioner

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

Commissioner Turnipseed provided the invocation and Chairman Elliott 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.

EMPLOYEE RECOGNITION

Certificate Presentations – M. Browning / C. Barnhart

            Thomas William Grimes – Wastewater Collection System Operator

            Jeffrey Eugene Tailer – Wastewater Collection System Operator

Commissioner Browning and Cindy Barnhart from Teamwork Services, Inc. presented Thomas William Grimes and Jeffrey Eugene Tailer with their Wastewater Collection System Operator Certifications and congratulated them.

Chairman Elliott requested a motion to excuse Commissioner Adams from the June 21, 2018 Regular Commission Meeting.

Commissioner Copeland made a motion seconded by Commissioner Browning to excuse Commissioner Adams from the June 21, 2018 Regular Commission Meeting.  Motion carried 5-0-2.  (Commissioner Adams and Commissioner Harvey were absent for the vote.) 

APPROVAL

  1. Minutes from the May 17, 2018 Regular Commission Meeting

Commissioner Browning made a motion seconded by Commissioner Stephens to approve the minutes from the May 17, 2018 Regular Commission Meeting.  Motion carried 5-0-2.  (Commissioner Adams and Commissioner Harvey were absent for the vote.)

  1. Minutes from the June 7, 2018 Regular Commission Meeting

Commissioner Browning made a motion seconded by Commissioner Copeland to approve the minutes from the June 7, 2018 Regular Commission Meeting.  Motion carried 5-0-2.  (Commissioner Adams and Commissioner Harvey were absent for the vote.)

Fiscal Year Ending June 30, 2019 Budget Resolution – J. Donaghy

John Donaghy presented the recommendation for adoption of the Fiscal Year 2019 Budget in the amount of $32,113,450.00.  He advised that this is the same budget that was transmitted to the City and County for their comments in late April, and that it has remained the same up to this point.  Mr. Donaghy provided that staff recommended approval of the 2019 Budget. 

Commissioner Browning made a motion seconded by Commissioner Copeland to move that the Brunswick Glynn County Joint Water & Sewer Commission approve the Fiscal Year 2019 JWSC Budget in the amount of $32,113,450.00.  Motion carried 5-0-2.  (Commissioner Adams and Commissioner Harvey were absent for the vote.)

  1. Fiscal Year 2018-2019 Rate Resolution – J. Donaghy

John Donaghy presented the memorandum for the approval of the Rate Resolution for Fiscal Year 2019.  He advised that the Rate Resolution was put together using the drafted FY2019 Budget and statistical data as provided by Raftelis Financial Consultants.  He added that the proposed Rate Resolution was placed in the public information sections of the newspaper, and also noted the proposed changes from previous.  Commissioner Turnipseed requested advice of the changes in the meter charges.  Mr. Donaghy reviewed those changes from Appendix “A,” and advised of the following:  The 1” residential meter was $1,360.00 is now up to $2,410.00; a 1.5” residential meter has been added at $3,920.00; and a 2” residential meter was $3,010.00 now is $3,970.00.  Chairman Elliott confirmed that these costs are the actual costs and include the meter, materials and installation, and that there are no upcharges added onto JWSC’s costs.  The 1” irrigation meter went from $2,060.00 to $2,735.00, and the 2” irrigation meter went from $3,930.00 to $4,230.00.  Sewer operational and installation fees remained the same.  Two charges were added:  “Department of Public Health Complaint” at $50.00 and “Unauthorized Discharge from Lint or Hair Traps per Inspection” at $100.00.  Commissioner Copeland questioned the components of the increases of the meter and installation costs.  Mr. Donaghy advised he had that information in his office, and Chairman Elliott asked him to retrieve the additional information and bring it back to the meeting for clarification.  The vote was held until this information was provided.

  1. North Mainland Phase 1 – Change Order #2 – T. Kline

Todd Kline presented the recommendation to approve Change Order #2 for the North Mainland Phase 1 Project.  JWSC entered into a design-build contract with Constantine Constructors, Inc., for design and capacity improvements for 5 lift stations in the North Mainland sewer collection basins in June of 2017. Mr. Kline gave the additional background information as to the design-build project for North Mainland capacity, including the JWSC pre-purchase of equipment which was made due to time sensitivity and net savings over the entire project.  This is expected to be the final change order and price adjustment for the Project.  Mr. Kline reviewed the summary table on page 6 of the contractor’s memorandum for further explanation of the amount of the change order request.  Commissioner Turnipseed questioned the contractor’s contingency of 5%, and while he did agree that some of the extra costs of bypass pumps should be paid by JWSC, he also questioned if the additional costs should be paid.  Andrew Burroughs advised that the additional electrical work was requested by JWSC after the design was completed and referenced those details from Appendix “C.”  There was some additional discussion pertaining to timelines, bypass pumping, original design, material pricing, pre-purchased equipment, and additional JWSC requested design.  As requested, staff will gather more detailed information and supporting documentation regarding the requested change order and bring back at a later date to the Commission for clarification and understanding.

  1. Online Payment Transaction Fee Absorption – J. Sellers

Jay Sellers presented the recommendation for the approval of online payment transaction fee absorption. He advised that presently JWSC customers are paying a $2.75 convenience fee to process a payment online with a $200.00 transaction increment limit.  Mr. Sellers added that survey results have shown that the convenience fee may be an obstacle to customers using the online payment option, and that currently only 10% of JWSC customers are paying their bills online.  He also noted that 80% of customers are paying by check through the mail or pay using cash or check in the lobby.  The goal in absorbing the online transaction fee is to reduce lobby traffic and increase cash flow, while also reducing the costs associated with returned checks, etc.  (Commissioner Harvey arrived at 2:54 p.m.)

Commissioner Copeland made a motion seconded by Commissioner Stephens to move that the Brunswick Glynn County Joint Water & Sewer Commission absorb the online payment transaction costs at the rates already agreed upon with BB&T Bank once the lobby and online transition to BB&T is complete.  Motion carried 6-0-1.  (Commissioner Adams was absent for the vote.)

  1. SPLOST Project LS4003 Basin Award for Engineering Services – A. Burroughs

Andrew Burroughs presented the recommendation for award of the contract for the SPLOST Project Lift Station 4003 Basin Engineering Services.  He advised that on May 15th a pre-proposal meeting was held with 13 engineering firms in attendance, and that 7 of those 13 submitted proposals.  After reviewing those proposals, 4 of the firms were interviewed.  Mr. Burroughs noted that the evaluation team was comprised of 5 members (2 from SP&M staff, 2 from P&C staff, and Mr. Burroughs).  He advised that after evaluations were completed Constantine Engineering’s proposal had received the highest evaluation score of 429 out of 500 possible points.  Mr. Burroughs added that pricing was not included as a part of the evaluation criteria and was not revealed until after evaluations were completed.  Constantine’s proposal in the amount of $282,500.00 was deemed reasonable and similar to prices proposed by the other competing engineering firms.  Commissioner Harvey questioned as to how many contracts Constantine has with JWSC, and Mr. Burroughs advised that the SPLOST North Mainland Project contract was the only other contract currently held with Constantine and that they have previously performed a couple of study projects.  When asked if they were a local firm, Mr. Burroughs noted that Constantine has offices in Jacksonville, Augusta, Atlanta and Fort Walton Beach.  Commissioner Harvey asked if any of the other proposing firms were local, and Mr. Burroughs provided that the only firm with an office in Brunswick that did make a proposal was Thomas & Hutton, and that their firm had been brought in for an interview.  Commissioner Harvey noted concern that too many proposals were being awarded to Constantine Engineering.  Commissioner Turnipseed added that he had reviewed all of the proposals that were made on this project.  He noted that his concern, if this contract was awarded to Constantine, is that clarification is made as to exactly what is going to be provided during the construction services part of the Project, such as inspection, etc.  He added that firm dates need to be in the contract since this project does need to move quickly and the design needs to be ready to bid in 120 days.  Mr. Burroughs advised that the intent was for the design to be completed and ready to bid in 120 days in order that the construction can be bid by the end of the year and construction can begin in January.  Commissioner Turnipseed also noted the concern of using the existing pump station, replacing existing lines, and that there may be some traffic issues along ‘K” Street.  And if the wetwell is going to be enlarged, something other than a fiberglass wetwell needs to be looked at, and he recommended that the engineer be required to look also at pre-cast concrete as well as poured in place connected to the existing structure.  He also noted that at this time, the station only has room for 2 pumps set up and consideration should be given to look at making it a tri-plex pump station.  Commissioner Turnipseed added that everything required needs to be clear so that no change orders are necessary later in the Project.  He also noted that perhaps an hourly rate for the inspection should be required since it is an unknown as to how much time will be required for certain things.  Mr. Burroughs provided that the services during construction is to be an “hourly not to exceed” and not a lump sum.  Commissioner Browning commented that the only proposal price noted on the memo was that from Constantine.  Mr. Burroughs had the various proposed prices with him and read them out:  Constantine’s proposal was $282, 500.00; Hussey Gay Bell’s proposal was $252,015.00; Thomas & Hutton’s proposal was $198,000.00; Four Waters’ proposal was $320,000.00; Goodwyn Mills Caywood’s proposal was $229,400.00; Richardson Garretson Associates’ proposal was $126,660.00; and, Hazen and Sawyer’s proposal was $330,350.00.  The local presence of the engineering firm selected was another noted concern for Commissioner Turnipseed.  Commissioner Browning mentioned the variances between the proposed prices received, and that the price should weigh heavily on the overall evaluation, and must be important. He did not note any alarming differences on the evaluation scores as received, other than ‘Timeline and Approach.”  Commissioner Turnipseed added that the evaluators did not look at the proposed prices at all prior to the evaluations being completed.  Mr. Burroughs provided that JWSC has entered into contracts with 5 of the 7 firms in the past.  It was questioned if the travel time was included in the proposals, and Mr. Burroughs confirmed that the prices only included “time on site.”  There was some additional discussion as to the firms’ proposals and the line items and associated costs each total was comprised of.  Commissioner Turnipseed provided some of the details on line items that he had noted upon reviewing the proposals’ prices earlier prior to the meeting.  He added that we needed someone who we know we can communicate with since this is a critical Project that needs to move rapidly.  It was suggested that staff take back all of the information and proposals and review everything again.  Commissioner Stephens Mr. Burroughs added that staff had no real concerns with any of the firms doing the work.  He again provided that price was not considered in the scoring matrix, and that was traditionally how engineering projects are done, where price is looked at after a selection has been made to ensure that the price is reasonable for the Project. Mr. Burroughs further noted that price negotiations are possible after the selection has been made as well.  Chairman Elliott then asked Mr. Burroughs if the 3 top proposing firms are all able to accomplish at the same quality level as each other, and Mr. Burroughs advised that all 3 could provide a successful Project.  Staff was asked by the Commission to go back and look at the proposals one more time and come back with their recommendation.  After additional discussion, Chairman Elliott commented that from the discussion, his understanding is that since the top few proposals are somewhat equal the prices should be looked at which was not considered during the evaluation process, and also he is understanding there is a concern to have somebody local be involved in the Project which was also not a criteria in the initial RFP and evaluation.  Chairman Elliott noted the issue that price was not a consideration in the evaluation process.  There was some agreement within the Commissioners that while price was not a consideration for the evaluation team, it was a consideration for them.  Commissioner Harvey commented that if any of the top 3 firms can do the job, then the Commission makes the decision; staff gives their recommendation, and the Commissioners make the decision, prices is a consideration for us.  Commissioner Browning commented that he believed that everything that needed to be done has been done, it is where it needs to be and is now in our lap, and we can consider price and we should consider price.  There was some additional discussion pertaining to the prices from the proposals, possible design alternatives as provided on proposals, quality of performance of proposing firms, etc.  Mr. Burroughs offered his suggestion that if the evaluation is qualification based and this is the high scoring team and there’s a problem with price, the Commission could determine what the fair price is for the engineering and then allow staff to negotiate with the selected firm until that price can be reached; if the first choice cannot do the engineering for that price, then the selection can be moved to the second choice to see if they can do it for that price.  He also added that the original evaluations and scoring were all done independently by the evaluators and not in a group setting.  Staff was asked to go back and review the proposals and evaluations for Thomas & Hutton, Hussey Gay Bell, and Constantine Engineering.  Commissioner Turnipseed suggested that staff provide information as to previous projects these firms have worked on for JWSC, the City of Brunswick and Glynn County, take into account local presence, how close they are, who is going to be able to manage the Project, where the work is going to be done, and estimate which firm might provide the best service throughout the entire Project (not just design but construction).  Chairman Elliott confirmed with Mr. Burroughs that staff did evaluate what each proposing firm laid out as their concept of operation as to what they thought JWSC would do in terms of rebuilding the lift station.  When asked if he thought all concepts were equal disregarding the Constantine alternative of building a new lift station, Mr. Burroughs indicated that all the proposed options were basically the same based on the work at the actual site without building a new lift station, and yes they would all be viable and equal.  Chairman Elliott advised Mr. Burroughs that the review of the proposals and evaluations needs to be framed in that term when staff looks at it and comes back with a recommendation; you need to be able to say why you chose this contractor based on their concept of operation meeting the criteria and including everything that the Commission has discussed with you today.

Commissioner Harvey made a motion seconded by Commissioner Browning to postpone further discussion of this item until the next Commission Meeting.  Motion carried 6-0-1.  (Commissioner Adams was absent for the vote.)

  1. July 5, 2018 Commission Meeting Cancellation/Reschedule – J. Junkin

Mr. Junkin presented a request for the Commission to consider if the next Commission Meeting which is scheduled for Thursday, July 5th to either be moved to Tuesday, July 10th or cancelled.  The request for consideration is due to the meeting being the day after the 4th of July holiday and various staff members and/or Commissioners may be travelling.  Further discussion and a decision was held until after the remainder of discussion and voting on the Rate Resolution.

Return to Item # 4 FY2018-2019 Rate Resolution –

Mr. Donaghy returned with the information as requested by the Commissioners for the remainder of discussion and voting on the Rate Resolution.  He provided that the price for the 1” residential meter on the FY2018 Rate Resolution Appendix “A” was $1,360.00, however he reviewed the source document and found that the actual total cost for this meter and installation was $2,360.00.  There had been an error on the printed FY2018 Rate Resolution Appendix “A” for a discrepancy of $1,000.00 on the price of the 1” residential meter.  Comparing the actual FY2018 cost of the 1” residential meter of $2,360.00 with the FY2019 cost of $2,410.00 reflects that there is only a $50.00 increase in the cost of this meter.  Mr. Donaghy also provided that the cost of the 2” residential meter in FY2018 was $3,013.00 rounded down to $3,010.00.

Commissioner Turnipseed made a motion seconded by Commissioner Browning to move that the JWSC adopt the attached Rate Resolution for the fiscal year ending June 30, 2019.  Motion carried 6-0-1.  (Commissioner Adams was absent for the vote.)

Return to Item #5 North Mainland Phase 1 – Change Order #2 –

Legal counsel Charlie Dorminy advised that there needed to be a motion made to postpone Item #5.

Commissioner Stephens made a motion seconded by Commissioner Browning to postpone Item #5.  Motion carried 6-0-1.  (Commissioner Adams was absent for the vote.)

Return to Item #8 July 5, 2018 Commission Meeting Cancellation/Reschedule –

Discussion returned to the decision as to the cancellation or rescheduling of the July 5th Commission Meeting.

Commissioner Harvey made a motion seconded by Commissioner Turnipseed to have the next Commission Meeting as scheduled on July 5th and deny cancellation or rescheduling to another date.  Motion carried 6-0-1.  (Commissioner Adams was absent for the vote.)

DISCUSSION

  1. FEMA Gap Insurance – Fred McGinty, McGinty Gordon & Associates

Fred McGinty of McGinty Gordon & Associates presented a discussion regarding FEMA Gap Insurance to the Commission.  He provided that it is a relatively new concept in providing catastrophic insurance that is completely different from the historical methods of insurance coverage, and noted that this does not replace the current property and flood insurance, but serves as a supplement.  Mr. McGinty explained that this is unlike a traditional insurance policy where a certain amount of damage or loss is caused and the amount has to be proven for reimbursement in what can be a lengthy process.  He provided that this type of insurance policy is based on the wind achieving a specified speed at a wind meter that is based on Jekyll Island.  The meter is at a 35 foot height, is certified and maintained by a company that is independent of the insurance company, and is designed to sustain a category 4 hurricane.  If the wind hits the speed as specified in the policy, the insurance company pays for the limits of coverage as selected.  He added that there are no insurance adjusters involved and the process is relatively simple in collecting the claim.  When asked, he noted that the winds have to be sustained at the indicated speed for 60 seconds.  The deductible for this insurance policy is $500.00.  Mr. McGinty advised that there are several different ways to structure this type of policy, and further discussed with the Commission. 

  1. Executive Director’s Annual Performance Review – M. Browning

Commissioner Browning reminded the Commission that 2 of the members were not on the board for the previous year’s performance evaluation for the Executive Director.  An advance discussion was placed on the agenda in order that the Commission may be better prepared to do the evaluation, be more timely and organized in the processing of the evaluation, evaluate the Executive Director using the appropriate performance criteria, and develop proper objectives for him to work toward during the next year.  The Commissioners will bring forth suggestions for discussion and compilation of an appropriate format with applicable criteria.  

  1. Waste Water Treatment Plant Flows Update – M. Ryals

Mark Ryals presented the monthly report on the waste water treatment plant flows update for Academy Creek, Dunbar Creek, and South Port for May 2018. He provided that the report is being presented in a new format, and explained the details.  It was determined that a stacked line graph may also be useful in evaluating and comparing the plants’ flows for certain time periods.

  1. Academy Creek WPCP Pilot Filtration Project Update – A. Burroughs/M. Ryals

Andrew Burroughs and Mark Ryals presented an update on the Effluent Filter Pilot Study at Academy Creek WPCP.  Mr. Burroughs advised that the study had been in progress and data collected for about 3 weeks.  Mr. Ryals presented a flow chart of the processes and gave an overview of the plant operations including a discussion of where the filter unit would be installed at.  Mr. Burroughs then provided a diagram from Aqua Prime of the filter unit and explained the components and design of the unit.  He also discussed the operational aspects of the unit. The trial data analysis indicated that the TSS removal without the filter was at 92.32% and the removal with the filter unit was at an average of 99.02%.  Aqua Aerobics will be providing a report within 2 weeks concerning the results of online monitoring of the trial.

  1. Customer Service Update – J. Sellers

Jay Sellers will provide a detailed update on Customer Service at a later Commission Meeting.

  1. R & R Capital Projects Update – T. Kline

Todd Kline presented the R & R Capital Projects update to the Commission.  He noted that the report is in a new format and is in draft form for this meeting. He reviewed the various data columns on the new format and explained each.  Mr. Kline mentioned those Projects that will be coming off the report as they are completed. He also provided a map indicating the project sites and including photographs of some of those locations.  Chairman Elliott inquired as to the possibility of placing this report on the JWSC website and having it updated regularly so that the Commissioners may access it at any time and communicate with Mr. Kline on any questions they have.  He then presented a discussion and map regarding dedicated water distribution for critical facilities that need to have service maintained during emergency situations such as a hurricane event.

  1. May 2018 Month End Financial Statements – J. Donaghy

John Donaghy presented the May 2018 Month End Financial Statements to the Commission. He first discussed the balance sheet and noted that he had sent the requested explanation of changes for each line item in the balance sheet.  Mr. Donaghy then reviewed the combined revenue statement and subsequent sections of the financial statement with the Commission.

EXECUTIVE DIRECTOR’S UPDATE

Mr. Junkin advised that $40,000 would be received from FEMA from the hurricane and there are still a few outstanding reimbursement items.  Staff has been meeting during the past few weeks discussing hurricane preparedness.  Quarterly budget reviews with division heads will be in progress.  Mr. Junkin added that there will be a trial of another chemical (magnesium hydroxide additive) at Academy Creek for odor control. Data collection should begin on this process within a few weeks. 

CHAIRMAN’S UPDATE

Chairman Elliott had no further update at this time.

EXECUTIVE SESSION 

There was no executive session.

There being no further business, the meeting was adjourned at 5:28 p.m.