Commission Minutes November 17, 2016

For your consideration, please review the minutes for the Commission Meeting from November 17, 2016:

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

PRESENT:                             

Thomas A. Boland, Sr., Chairman

Clifford Adams, Vice-Chairman

Donald M. Elliott, Commissioner

Allen Booker, County Commissioner

John A. Cason, III, City Commissioner

Ronald Perry, Commissioner

ABSENT:                               

Robert Bowen, Commissioner

ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Charlie Dorminy, Legal Counsel HBS

John D. Donaghy, Director of Administration & Finance

Todd Kline, Senior Engineer

Pam Crosby, Director of Purchasing                                       

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

PUBLIC COMMENT PERIOD

There being no citizens who wished 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 at this time.

Facilities Committee – Commissioner Perry

There was nothing new to report.

Finance Committee – Commissioner Elliott

There are items on the agenda from Finance; October end of month financials and audit report.

Human Resources Committee – Commissioner Cason

There is no report at this time.

Legislative Committee – Commissioner Boland

There was nothing new to report.

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

APPROVAL

Minutes from the November 3, 2016 Regular Meeting

Commissioner Perry made a motion seconded by Commissioner Elliott to approve the minutes from November 3, 2016 Regular Meeting. Motion carried 6-0-1 (Commissioner Bowen was absent for the vote).

Minutes from the November 3, 2016 Executive Session Meeting

Commissioner Perry made a motion seconded by Commissioner Elliott to approve the minutes from the November 3, 2016 Executive Session Meeting. Motion carried 6-0-1 (Commissioner Bowen was absent for the vote).

Minutes from the November 10, 2016 Special Called Regular Meeting

Commissioner Cason made a motion seconded by Commissioner Perry to approve the minutes from the November 10, 2016 Special Called Regular Meeting.  Motion carried 6-0-1 (Commissioner Bowen was absent for the vote).

Minutes from the November 10, 2016 Special Called Executive Session Meeting

Commissioner Cason made a motion seconded by Commissioner Perry to approve the minutes from the November 10, 2016 Special Called Executive Session Meeting. Motion carried 6-0-1 (Commissioner Bowen was absent for the vote).

Workers’ Compensation Renewal – J. Bridges, Turner and Associates

Greg Bell, President of TSI, introduced Jarrett Bridges from Turner and Associates Insurance. Greg stated the JWSC Workers’ Compensation policy will expire January 1st and TSI is recommending the renewal of Zenith Insurance Policy.  Jarrett discussed the list of 17 different insurance groups that were approached one of them being Georgia Municipal Association (GMA).  Jarrett stated there was a decrease in premiums this year due to the experience mod.  A snap shot of the claims history was shared showing the reduction from 1.39 for 2016 to a 0.99 for 2017.  This reduction is due to the continued efforts on the safety program and it is working.  It was noted that about 3 years ago the staff developed the Safety Committee that meets monthly and reviews accidents and incidents for the month which has helped reduce the claims by a large percent.

Commissioner Perry made a motion seconded by Commissioner Booker that the JWSC renew the Workers’ Compensation Policy for 2017 with Zenith in the amount of $239,378.00. Motion carried 6-0-1 (Commissioner Bowen was absent for the vote).
Surplus Inventory/Equipment and Disposal Approval – P. Crosby

Pam Crosby discussed the surplus inventory list of 6 items that staff has recently compiled. These items are a combination of equipment that the JWSC no longer needs or is no longer operational.  The staff recommends declaring these items as surplus.

Commissioner Perry made a motion seconded by Booker that the JWSC approve the declaration of items identified on the document provided listing as surplus and authorizing their disposal in a manner most beneficial to the JWSC. Motion approved 6-0-1 (Commissioner Bowen was not present for the vote).

Resolution of VacCon Financing BB&T – P. Crosby

Pam Crosby stated that previously the Commission approved the purchase and loan financing for four new VacCon trucks via a Capital Lease program. The background of the original proposal was discussed and this resolution of financing is required for the loan closing which is set for Monday, November 21, 2016.  The revised resolution was available for all Commissioners to review.

Commissioner Elliott made a motion seconded by Cason that approval be granted to the attached resolution in order to facilitate the financing of (4) VacCon trucks with BB&T Governmental Finance. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Mansfield Street Change Order – T. Kline

Todd Kline presented the Mansfield Street Change Order to the Commission. This addresses the unforeseen utilities that were in the way of construction and during construction.  This was previously mentioned in Commission meetings and most recently in the Facilities Committee meetings.  The memorandum stated that each time an unknown or unforeseen main is encountered, the contractor must verify that the infrastructure is no longer in service and then remove that section of main.  This causes project delays and costs for demolition and removal.  Also variations between actual field conditions and the design plans cause adjustments in planned materials quantities to be necessary.   The contractor has submitted a change order to the city of Brunswick for additional expenses caused by the above conditions.   The total of the change order is $12,509.39 as proposed by Stone Construction and with consultation with the City which is where the MOU is through.  The attached items included Change Order line items and the most recent update that was provided to the City Commission.  The proposal shows the total completion for this project to be February.  It was noted that the high tide will continue to come in at the same elevation that it always has, especially during super moon, but the water will return or get back out much more quickly.

Commissioner Cason made a motion seconded by Commissioner Elliott to approve the proposed increase in work scope presented for the Mansfield Water and Sewer System project change order in the amount of $12,509.36. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Commissioner Cason appreciated Todd Kline and staff for presenting and providing informational updates. They have been helpful.

 Acceptance of the June 30, 2016 Audit Report – J. Donaghy

John Donaghy presented the Audit report to the Commission.   The JWSC is required to be audited on an annual basis following the June 30 year end.  The report was discussed which included the opinion letter.  The opinion letter report is that our financial condition as of June 30, 2016 and is the best opinion offered by certified public accountants.  Pages 5 – 9 is the Management Discussion and Analysis pages, which is the Commissions opportunity to present comparative financial data from last year to this year.   This area allows the Commission to provide the conditions that cause changes in the JWSC financial position, discuss the rate structure, customer base, infrastructure, and provide other information that is deemed pertinent to someone that maybe reading these financial statements beyond the scope of the financial statements themselves. The balance sheet and statement of revenues and expenditures for the fiscal year was discussed.  It was noted that there was 5.8M in depreciation which is a none-cash expense.  The statement of cash flows was divided into (3) sections was also discussed.  The balance of the report up to page 34 are required by GASBY measurement focus accounting policies and a number of defined benefit plan and our liabilities dealing with it.  There was only (1) finding by the auditors this year and deals with the segregation of duties within the Financial staff.  There is not enough staff members to break up the separate functions.  This finding is common amongst businesses or any size organization.  It was noted that the Finance Committee reviewed the Audit Report earlier this week and approved to forward to the full Commission for approval.  The segregation of duties is necessary to provide an extra set of eyes and also breaks up a financial transaction so that typically at least 3 people are involved in a financial transaction or an entry to the general ledger.  It also reduces the likelihood or opportunity for a person to manipulate numbers.

Commissioner Elliott made a motion seconded by Commissioner Cason that the JWSC accept the audited financial report for the June 30, 2016 fiscal year and authorize its release to the public and reporting agencies. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

 Approval of Engineering Proposal – LS 4005 Force Main Replacement – P. Crosby

Pam Crosby updated the Commission and stated that Hussey Gay Bell has been conducting a basin assessment in the N. Mainland service district. JWSC has asked HGB to come in and analyze the sewer capacity in the basin.  There were some initial findings in the Master Plan that indicated there were significant capacity issues there.  JWSC wanted HGB to provide quick fixes in these deficiencies.  There was additional discussion on LS4005 and that basically the force main can’t handle the pumping capacity and the rate requirements.  It is recommended that JWSC needs to upgrade to a new 24” force main and will go to the gravity sewer on 5th Street / LS4005.  The proposal before the Commission is just for the engineering of the lift station and also included is the estimate for the construction cost but will come back at a later time.  With the proposal of the SPLOST referendum the N. Mainland R&R Basin project now has funding source.  The overall project is estimated to cost 11.7M.  Based on all of the information available to date, the LS4005 force main replacement is a crucial piece and is a logical step to gain short term capacity improvement as well as improve conditions for the long term improvements that will be a part of the comprehensive N. Mainland R&R Basin project.   This request is to move forward with the engineering portion which would last approx. 3–6 months.  There is a meeting planned with the County and JWSC and legal counsel on the SPLOST description of this project so that there is a clear understanding.  The assessment included the following lift stations: 4118, 4119, 4110, 4039, 4048, and 4005.  It was recommended that JWSC is represented at the Citizen Oversight Committee meetings.

Commissioner Perry made a motion seconded by Commissioner Cason that approval be granted to the proposal from Hussey Gay Bell in the amount of $75,280.00 to provide professional services for the LS4005 Force Main replacement. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

DISCUSSION

October End of Month Financial Report – John Donaghy

John Donaghy presented the Month Ending October 31, 2016 Financials. The Balance Sheet was discussed as in prior months and that the current assets have increased due to the rate increase effective July 1.  The Bond Sinking Fund continues to build until the payments are made to the bond holders.  The Restricted Funds are down from the beginning of the year offsetting the increase in capital assets.  The Current Liabilities and the Accounts Receivable were discussed. The revenues and expenditures were reviewed for the past several years.  It was noted that our revenues exceed expenditures including reserve deposits and payments to the trustee just short of $ 2.1M, shown on page 2.  The next document discussed revenue and expenditures by line item for the year.  The Schedule of Cash Balances were discussed showing cash on hand and the total amount needed to complete the projects.  There has been one meeting with Harris on the enhancement program.  It was noted that of the 16M in projects half is on the mainland and the other half is on SSI.
PS 2032 RFP Update –P. Crosby

Pam Crosby stated that the pre-qualification deadline was extended to yesterday. This was done to potentially increase the bidder pool for pre-qualified bidders.  Over the next day or two staff will be finalizing the list of bidders.  The next date for the RFP project is the bid due date of Wednesday, November 30.   The next Commission meeting on December 1 will be the recommendation for the construction award.

EXECUTIVE DIRECTOR’S UPDATE

Jimmy Junkin stated the PIO position will be closing tomorrow for accepting applications. The discussions have begun with FLETC and JWSC hopes to develop a working group.  JWSC is having to re-route a 10” water main on FLETC property and which interferes with a project they are working on.  We are providing a cost estimate which will include an improvement of a 12” line.  There was discussion on the most recent fuel costs and estimates.

CHAIRMAN’S UPDATE

Commissioner Boland updated the visit to FLETC and a group from JWSC participated in their emergency water loss exercise.

EXECUTIVE SESSION

Commissioner Elliott made a motion seconded by Commissioner Cason to adjourn into Executive Session to discuss Litigation. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

The Chairman stated there will be no vote after the Executive Session.

Executive Session ended

Commissioner Perry made a motion seconded by Commissioner Booker to adjourn the Executive Session and return to the Regular meeting. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Commissioner Adams made a motion seconded by Commissioner Booker to adjourn the Regular Commission Meeting. Motion approved 6-0-1 (Commissioner Bowen was absent for the vote).

Chairman Boland adjourned the open meeting at 3:25 pm.