Finance Committee Meeting Minutes – June 14, 2017

For your consideration, please review the minutes from the Finance Committee Meeting held on Wednesday, June 14, 2017 at 2:00 pm in the Commission Meeting Room.

Finance Committee Minutes 6-14-2017 with Attachments

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

Brunswick-Glynn County Joint Water & Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Commission Meeting Room

Wednesday, June 14, 2017 at 2:00 PM 

FINANCE COMMITTEE MINUTES

PRESENT:                             

Donald M. Elliott, Chairman

Steve Copeland, Commissioner

Jimmy Junkin, Executive Director

John Donaghy, Chief Financial Officer                                               

ALSO PRESENT:                 

Pam Crosby, Director of Procurement

Jay Sellers, Public Information Officer 

ABSENT:                               

Mike Browning, Commissioner                                                                                   

Chairman Elliott called the meeting to order at 2:07 PM.

 PUBLIC COMMENT PERIOD

There being no citizens that wished to address the Committee, Chairman Elliott closed the Public Comment Period.

 

APPROVAL

  1. Minutes from May 17, 2017 Finance Committee and Compliance & Legislative Committee – Combined Meeting

Commissioner Copeland made a motion seconded by Chairman Elliott to approve the minutes from the May 17, 2017 Finance Committee Meeting.  Motion carried 2-0-1. (Commissioner Browning was absent for the vote.)

  1. Design/Build Award for 2016 SPLOST North Mainland Sewer Improvements – Phase 1, Project No. 702 – P. Crosby

Pam Crosby presented the recommendation for the Design/Build Award for the 2016 SPLOST North Mainland Sewer Improvements – Phase 1 Project No. 702 to the Committee to request approval to move the proposal forward to the full Commission.  She explained that this was an overview of the first Phase of the North Mainland SPLOST Design-Build project.  She provided a memo that noted there were 19 firms in attendance at the pre-bid meeting. These firms were from the engineering, construction and supplier community.  This was a large turnout for a pre-bid meeting. She further advised that there were only 2 proposals received, one from BRW Construction Group, LLC, and one from Constantine Constructors, Inc. on May 25.  The selection committee had 2 members from the engineering staff and 1 from the operations staff doing the evaluations of the 2 proposals.  Mrs. Crosby added that due to the lack of response, after much initial interest, she had reached out and noted as to why some firms who attended the pre-proposal meeting selected not to make proposals.  Some of the reasons were the timeline desired for accomplishment of the project, the specifications for sole-sourcing of the pumps, the coordination that will be involved with the PS4048 Force Main Upgrade, details of the project, etc.   Discussion continued as to the project and the fact that it included managing the engineering as well as the construction of the project.  The 30% Design Phase cost was discussed. Mrs. Crosby explained that the evaluation for the firms who made proposals was based on technical aspects, and the decision was not based on cost or best value.  The evaluation matrix was also provided to the Committee, giving further details as to the scoring process, and the similarities and differences in the firms, their approaches, the proposals, and some additional concerns of the evaluation team. Further noted was that this request is for award of 30% of the Design/Build Services, and then from there hammer out the details of what the cost proposal will look like, and that will take JWSC to the Guaranteed Maximum Price for the overall project and the 70% design build out. This final information and proposal will come back to the full Commission for review and final approval. After additional discussion regarding the proposals received and the scoring, it was requested that the normalization or averaging of the scores be provided when the recommendation is brought before the Commission for full approval. When the evaluation team reviewed the proposing firms, they did not have access to the costs provided with the proposals of the 30% Design Phase.  The selection of the firm to award the project to was based solely on technical aspects, not on best value/lowest cost.  The proposal was approved (with no formal vote) to be taken to the full Commission.

DISCUSSION

  1. May End of Month Financial Comparative – J. Donaghy

John Donaghy presented the end of month financial report for May 2017 to the Committee.  He noted May was the 11th month of the current Fiscal Year.  He began with a few specifics on the Balance Sheet, such as the Bond Sinking Fund and the month end balance of almost $2,910,000.00, which is being cumulated in order to make a June 1st payment to the Bond Trustee.  Mr. Donaghy noted the second page, Cash Balances, and that as of May 31st it has remained relatively stable for the past few months.  He then moved on to the Revenues and Expenses, and noted that the total operating revenues pro-rata budget is at about $25,800,000.00 for the year, and are currently at $27,225,000.00, in excess of $1,425,000.00 for the year.  Total operating expenditures year to date budget are $20,400,000.00, with actual being at $20,426,000.00, which is about $30,000.00 over pro-rata budget for the year. This gives operating revenues over expenses for the year of about $6,800,000.00.  After allowing for capital fees that have been generated and non-expenditure uses in cash, being debt principal, capital expenditures, and reserve deposits, it leaves Net Revenues over Cash Requirements to date of about $2,740,000.00.  Mr. Donaghy then noted that to date there are about $2,870,000.00 of outstanding encumbrances, of which if all of those were filled by the end of the Fiscal Year, JWSC will be about $130,000.00 short for the year.  He also noted that all invoices dated June 30, 2017 will be charged to the current Fiscal Year and any dated after June 30 will be charged to the next Fiscal Year.  The current numbers do not reflect what will be seen on the final audit for Fiscal Year 2017.  Mr. Donaghy closed with notations of details of the Project Report for 2016-2017, which reflected an estimated balance in R & R Funding to be $739,000.00.

EXECUTIVE DIRECTOR’S UPDATE

Mr. Junkin had not formal additional comments for update, other than the reminder that the first Town Hall meeting was later that evening at St. Williams Catholic Church at 6:00 pm, and the second Town Hall meeting was on Monday at Howard Coffin Park at 6:00 pm also. There was no additional update at this time.

Meeting was adjourned at 2:39 p.m.