Commission Minutes – June 16, 2016

For your consideration, please review the minutes for the Commission Meeting from June 16, 2016:

BGJWSC_Commission_Meeting_Minutes_June_16,_2016

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

PRESENT:                             

Thomas Boland, Chairman

Donald M. Elliott, Commissioner

Allen Booker, County Commissioner

John A. Cason, III, City Commissioner

Ronald Perry, Commissioner

Robert Bowen, Commissioner

 ABSENT:                               

Clifford Adams, Vice-Chairman

 ALSO PRESENT:                  

Charlie Dorminy, Legal Counsel

John D. Donaghy, Director of Administration

Pam Crosby, Director of Purchasing

Commissioner Boland called the meeting to order at 2:00 PM. Commissioner Booker provided the invocation and Commissioner Boland led the pledge.

Commissioner Elliott made a motion seconded by Commissioner Cason to add item #10 Canal Crossing Improvements Change Order for Existing FM & WM Bore to the agenda for approval. Motion carried 6-0-1 (Commissioner Adams was absent for the vote).

PUBLIC COMMENT PERIOD

Ruth Haywood, the President of the 2016 Golden Isles Association of the Board of Realtors. Ms. Haywood stated she is the president of the Golden Isles Board of Realtors and appreciated Comm. Elliott meeting with them yesterday. She stated there are a lot of young people coming into the community and the rate and fees increase could cause a financial hardship.  She continued by saying on behalf of Glynn County, McIntosh and St Simons realtors they are asking that the commission consider a 5 year phase in for the rate resolution.  The $7,200 will cause a hardship on many buyers.

Woody Woodside, Chamber of Commerce, present and via email. Mr. Woodside’s email stated he attended the town hall meetings regarding the tap fees.  The email continued to explain his concerns for the cost of needed renovations and improvements for water and sewer.  He was disappointed the county’s current SPLOST proposal for November is for only 15M when the original request started with 35M.  There is great concern with immediate drastic increases that would be detrimental to the economy.  Mr. Woodside referenced an email from one of the Chamber of Commerce members, Jason Tate, who represents many clients across the community, especially in the construction area.  The Chamber shares the concerns for all existing business sectors if impacting the people all at once as it would throw a serious shadow on prospective residential, commercial, and industrial investors in Glynn County.  Mr. Woodside noted it would be appreciated if the Commission would not implement the fee all at once but spread it over the next five years.

There being no additional citizens to address the Commission, the Chairman closed the public comment period.

COMMITTEE UPDATES

Communications& Customer Service Committee Commissioner Adams

There was nothing new to report.

Economic Development Committee – Commissioner Elliott

There was nothing new to report.

Facilities Committee – Commissioner Perry

There was nothing new to report.

Finance Committee – Commissioner Elliott

The items from the Finance Committee are on the agenda to be discussed today.

Human Resources Committee – Commissioner Cason

There was nothing new to report.

Legislative Committee – Commissioner Boland

There was nothing new to report.

PRESENTATION

Employee Recognition – Comm. Cason, Amy McKim, & Kirk Young

  • Commissioner Cason, Amy McKim and Kirk Young presented the certificate for the following employee. Wastewater Collection System Operator Terry Alan Lee
  • Chairman Boland expressed appreciation to Amy McKim, TSI for her hard work dedication to JWSC. She will be leaving TSI at the end of next week.
  • Chairman Boland shared a thank you from a customer recognizing the quick response from Derrick Simmons, Alvin Hall, Jason Daniels, and Paul Herrin from a water line break on Macon Ave.

APPROVAL

Minutes from the June 2, 2016 Regular Meeting

Commissioner Cason made a motion seconded by Commissioner Bowen to approve the minutes from June 2, 2016 Regular Meeting. Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Chairman Boland noted that Commissioner Adams was not present and excused him from the meeting.

Minutes from the June 2, 2016 Executive Session

Commissioner Cason made a motion seconded by Commissioner Bowen to approve the minutes from June 2, 2016 Executive Session Meeting. Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Minutes from the June 6, 2016 Special Called Regular Meeting

Commissioner Cason made a motion seconded by Commissioner Bowen to approve the minutes from June 6, 2016 Special Called Regular Meeting. Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Minutes from the June 6, 2016 Special Called Executive Session

Commissioner Cason made a motion seconded by Commissioner Bowen to approve the minutes from June 6, 2016 Special Called Executive Session Meeting. Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Approve FY 2017 Budget – Comm. Elliott/J. Donaghy

Commissioner Elliott gave a slide presentation and a bound copy of the decision briefing. This brief shared the plan to pass the budget, rate resolution and capital improvement fees and provided history and future plans.  It was noted the outside consulting firm is Hawksley Consulting (Burton & Associates) who developed the rate & fees study.  It was noted that the 2016 budget did not include a rate increase. The 2016 rates did not change to reflect the increased employee compensation based on the Condrey & Associates study or the UGA Carl Vison Study on organizational changes. The budget development timeline was discussed which included Preparation, Rate Study, Master Plan, Development of Capital Improvement Fees, and Town Hall meetings.  The budget by account and cost center was shared.  The discussion continued with proposed water and sewer rates.  The new FY 2016-2017 budget will show a 2M increase compared to FY 2015-2016.  These increased costs are for many areas but are primarily attributed to manhole repairs (8,000 manholes to maintain) and personnel costs due to organizational changes.  The other slides shared were: proposed Septic Tank Hauling Discharge; Fire Protection Charges, Fees & Fines, Capital Improvement Fee, and REU’s.  The outstanding debt of the City and Glynn County was identified for either water or sewer projects.  The Master Plan projects for water & sewer were explained which included their capital costs.  There was discussion on the fees for discharge and it was noted that the market and surrounding areas were reviewed and found that we are within the standard range.

Commissioner Elliott made a motion seconded by Commissioner Cason to approve the Fiscal Year 2017 JWSC Budget in the amount of $28,077,000.00. Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Approve Rate Resolution – J. Donaghy

John Donaghy presented the Proposed Rate Resolution and stated Burton and Associates, Inc.(Hawksley Consulting) has prepared a schedule of rates to support the budget. The memorandum stated the rate plan establishes annual adjustments which provides for: Meeting the operating expenses of the JWSC, Payment of the annual debt service on the 2010C Revenue Bonds, Operating Reserves targeted at 6 months O&M, Repair and Replacement Reserves targeted at one year average CIP (approx. $3.5M), Capital Reserves targeted at 5% of the prior year gross revenue, Debt coverage ratios that will establish a strong creditworthiness for the JWSC.

Commissioner Elliott made a motion seconded by Commissioner Bowen that JWSC adopt the

Rate Resolution for the fiscal year ending June 30, 2017, excluding the dollar amounts of Capital

Improvement Fees in Section IV paragraph (a). Motion carried 6-0-1 (Commissioner Adams was not present for the vote).

Approve Capital Improvement Fees – J. Donaghy

John Donaghy presented the Capital Improvement Fees and stated having completed a Master Plan update and Rate Study, it has been determined that the Capital Improvement Fees charged for new construction or change of use should be increased to $2,400 per REU for water and to $7,200 for sewer. During the Town Hall meetings it was requested that JWSC consider a phase-in approach to increase the capital improvement fees to the required levels.  There were four (4) alternatives presented for consideration by the JWSC Commission: Raise the fees to the required level in the 2017 fiscal year as proposed, Phase-in the increase over three years, Phase-in the increase over four years, and Phase-in the increase over five years.  The Chairman stated that JWSC can’t depend on the SPLOST being passed in November.

Commissioner Perry made a motion seconded by Commissioner Cason to adopt the alternative B three (3) year phase-in period as full implementation in fiscal year 2017, and including those dollar amounts in Section IV – Capital Improvement Fees, paragraph (a) of the Rate Resolution.

Commissioner Booker stated with this being such an important piece to development and his district is at 40% poverty and he cannot support anything less or that will adversely affect development. He recommends the 5 year phase in.

Commissioner Perry rescinded his motion

Commissioner Booker made a motion seconded by Commissioner Perry to adopt alternative D five (5) year phase-in period as full implementation in fiscal year 2017, and including those dollar amounts in Section IV – Capital Improvement Fees, paragraph (a) of the Rate Resolution.

Commissioner Elliott stated he cannot support the five (5) years phase-in as there are many things that need to be done and needs a substantial financial increase. He stated he’s met with developers and discussed these prices.   We cannot count on SPLOST funds to pass and support JWSC.  Commissioner Cason stated he also agrees with Commissioner Elliott that the three (3) year phase-in is the best choice.  He stated we should be going with alternative A to support JWSC capital but alternative B is in the middle.  Commissioner Bowen stated he also agrees and the programs and projects need funding and it calls for three (3) year phase-in.

The Chairman called for those in favor of the motion of the five (5) year phase-in. Motion voted 2-4-1 with Commissioners’ Elliott, Bowen, Cason, and Boland voting no (Commissioner Adams was absent for the vote).

Commissioner Perry made a motion seconded by Commissioner Cason to adopt the alternative B three (3) year phase-in period as full implementation in fiscal year 2017, and including those dollar amounts in Section IV – Capital Improvement Fees, paragraph (a) of the Rate Resolution. Motion approved 5-1-1 with Commissioner Booker voting no (Commissioner Adams was absent for the vote).

Commissioner Cason commended Chairman Boland and Commissioner Elliott in supporting the JWSC as they have and addressed issues like SPLOST with the county. One of the SPLOST projects is in the City of Brunswick and there is a tremendous amount of old water and sewer lines that need replacing.  Commissioner Elliott stated that if this community and city plans to grow those lines need to be replaced.  Commissioner Booker also commended Chairman Boland and Commissioner Elliott for what they have been doing for JWSC.  He stated he agrees that we have paid for this study and that we do need the money but how we get the money is where we are now.   He stated he understands that JWSC plays a key role in the future growth in the city and county.  He recommends that JWSC, Glynn County, the City of Brunswick, Development Authority, and Chamber of Commerce get together to get on one accord for a development plan.

Approve Executive Director Position – Chairman Boland

The Commissioners will discuss item #8 the Executive Director position in Executive Session.

USGS / WRMAC Approval – Chairman Boland

Commissioner Boland updated the Commission on the WRMAC (Water Resources Management Advisory Council) program on the salt plume /salt intrusion which has a serious impact on the community and wells. In the past BGJWSC has been funded the cost and carrying it forward.  Last year the Commission voted to fund it one more year in hopes that major water uses would come forward and share the costs.  There has been a lot of progress and interest but, unfortunately, the program is not up and running yet. The cost for JWSC to fund it this year for $129,000.00 and the USGS cost is $110,000.00.  The memorandum explained the history that the BGJWSC staff has worked since September 2015 to revitalize the former WRMAC organization.  Since October 2015, five (5) meetings have been held at the JWSC offices with a variety of community participation.  Currently, the group is reviewing a proposal for formal organizational structure (possibly a 501(c)) and working with a consultant and private sector partners to formalize the necessary documents to re-organize the WRMAC as an entity. Once the WRMAC has been officially re-organized, participants can add the funding to their annual budgeting process for the 2017-2018 period and public meetings will be held.  It was recommended to approve one more year and encourage other participants.  It is not the intention for JWSC to run the program but for it to be a community participation.

Commissioner Cason made a motion seconded by Commissioner Bowen that the BGJWSC move forward to contract with USGS to contribute the amount for $129,050.00 to the funding of the South Atlantic Water Science Center Water Resources Investigations program for the time period covering July 1, 2016 to June 30, 2017.

Commissioner Elliott stated disagreement due to the lack of interest by the larger water users in the area and it takes up much of our staff time. Commissioner Elliott then modified his statement that if it is necessary for JWSC to be involved than he agrees to go ahead and consider it an operation cost for the production of water. Commissioner Cason stated that the USGS money is guaranteed and that if JWSC turns it away it will not be available again.  JWSC should be involved and know what is underground and how it may impact our future.   It is JWSC responsibility for providing safe drinking water.  Chairman Boland stated he wanted to be sure that JWSC does not run and fund the program but will be a partner.  Commissioner Booker suggested environmental groups like One Hundred Miles could take an interest.

Motion approved 6-0-1 (Commissioner Adams was absent for the vote).

Canal Crossing Improvements Change Order for Existing FM & WM Bore – T. Kline

Todd Kline updated the Commission on the Canal Crossing Change Order. Glynn County provided pricing from East Coast Asphalt, LLC for the revision in the amount of $85,720.10.   It was stated that a portion of this change order was placed before the Commissioners on the June 2nd meeting for the amount of $58,390.00.  It was noted that the change order was not interpreted correctly and the additional amount of $27,330.10 is required to facilitate the necessary water and sewer improvements. The G-DOT permitting change requires JWSC to go under Spur 25 to connect the FM and WM.  This development has been presented as a fast track project.  The contractor provided pricing off of the original design plan prior to GDOT permitting being completed.  GDOT then came back with particular requirements and resulted in this additional revision total price of $85,720.10.  It was noted that this project is still approx. 100k less than the original estimate.

Commissioner Perry made the motion seconded by Commissioner Booker that the BGJWSC approve the additional pricing provided by Glynn County to be processed as Contract Change Order in the amount of $27,330.10. Motion approved 6-0-1 (Commissioner Adams was absent for the vote).

DISCUSSION

LS 2032 Update – P. Crosby/T. Kline

Pam Crosby updated the Commissioners on the LS2032 Engineering and Design proposals. It was stated at the last Commission meeting that the recommendation on the Engineering and Design phase would be presented today.  JWSC did receive 6 proposals and after the initial evaluation, staff cannot make a recommendation for the award.  The staff feels there is more clarifications needed from those proposals.  An additional two (2) weeks are needed and a recommendation will be presented at the next Commission meeting.  One of the items that gave the staff pause was in the construction phase of the initial proposal summary.  It is noted by the engineers that the construction phase will require a longer time line than staff estimated.  There was additional discussion on the future Master Plan projects.

May Financial Statements – J. Donaghy

John Donaghy presented the financial statements for the end of May 31, 2016.   The Balance Sheet, Schedule of Cash Balances and are stable and in line for the past several months.  The next discussion covered the Commission Statement of Expenditures and Revenue of Expenses which shows a total of 183,577 of expenditures in excess of revenues at the end of May.  Outstanding purchase orders were also discussed due to ordering supplies and materials ahead of time.   This could cause the shortfall to be a larger number at the end of the fiscal year if the purchase orders are not liquidated. This has been reviewed by the Finance Committee.

EXECUTIVE DIRECTOR’S UPDATE

  • Chairman Boland updated the commissioners that the Academy Creek remediation has been completed.  The use for the facility will be discussed soon.
  • Friday 6/17 there is a tour planned for the water towers.
  • The following Friday 6/25 a tour is planned for the lift stations.
  • On 6/23 a group tour is planned to view a grease processing facility in Savannah. It’s potential for JWSC byproduct to be recycled.
  • Safe Harbor ground breaking on 6/30 at 10 am.
  • Water Quality report was placed in the Brunswick News and a copy is available in the notebooks.
  • Round-Up program will be going forward since the legislation has been updated. This program will help those who need assistance.
  • Intern Programs are being considered which could help potential engineering students.

CHAIRMAN’S UPDATE

EXECUTIVE SESSION

Commissioner Cason made a motion seconded by Commissioner Elliott to adjourn into Executive Session to discuss personnel matters. Motion carried 6-0-1 (Commissioner Adams was absent for the vote).

Back in session.

Commissioner Cason made a motion seconded by Commissioner Elliott to return to the Regular Meeting. Motion approved 6-0-1 (Commissioner Adams was absent for the vote).

Commissioner Perry made a motion seconded by Commissioner Cason that JWSC extend the job position for Executive Director to Mr. Jimmy Junkin and appoint the Chairman and a board member of his choice to negotiate the contract. Motion approved 6-0-1 (Commissioner Adams was absent for the vote).

The Chairman stated that the job will be offered to Mr. Jimmy Junkin of Tuscaloosa, AL and he will be contacted.

Commissioner Perry made a motion seconded by Commissioner Cason to adjourn the meeting. Motion approved 6-0-1 (Commissioner Adams was absent for the vote).

There being no additional business to bring before the Commission, Chairman Boland adjourned the open meeting at 3:56 pm.