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Finance Committee Meeting Minutes – Wednesday, April 17, 2024

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, April 17, 2024  at 3:00 p.m. in the Commission Meeting Room.

Finance Minutes 4-17-24 with Attachments

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

Brunswick-Glynn Joint Water & Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Commission Meeting Room

Wednesday, April 17, 2024, at 3:00 PM 

FINANCE COMMITTEE MINUTES

MEMBERS PRESENT:         

Clayton Watson, Finance Committee Chairman

Charles Cook, Commissioner

Lance Sabbe, Commissioner

Andrew Burroughs, Executive Director                                               

ALSO PRESENT:                  

Ben Turnipseed, Commission Chairman

Dave Ford, Commissioner

Wayne Neal, Commissioner                                       

LaDonnah Roberts, Deputy Executive Director

David Owens, Director of Finance

Pam Crosby, Director of Procurement

Janice Meridith, Executive Commission Admin.

Committee Chairman Watson called the meeting to order at 3:00 PM.  

PUBLIC COMMENT PERIOD

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

APPROVAL

  1. Minutes from the March 20, 2024, Finance Committee Meeting

Commissioner Cook made a motion seconded by Commissioner Sabbe to approve the minutes from the March 20, 2024, Finance Committee Meeting.  Motion carried 3-0-0. 

  1. FY25 Property and Terrorism Insurance Plan Renewal – F. McGinty, Oakbridge Insurance /

Mr. McGinty commented that traditionally, all liability and property coverage have been considered at the March Commission meeting. Property insurance pricing in general has been increasing over the past several years due to increased storm and fire losses for property insurers and increasing claim costs for liability insurers. Staff also had an updated property appraisal completed on the insured assets to ensure proper coverage amounts in today’s construction cost environment. Property values increased from $94,175,889 to $125,388,362 (33.1%). Staff anticipated a large increase in property insurance premiums as a result of these factors. Oakbridge worked to provide multiple options for property insurance coverage for the JWSC, including shopping to new providers and consideration of parametric insurance coverage for named wind events. Oakbridge was able to secure two property insurance proposals from Starr Tech and Lloyd’s of London. Starr Tech has been the property insurance provider for the JWSC for several years.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend the full Commission approve insurance renewal rates for each coverage category and insurer as listed above.  Motion carried 3-0-0.

  1. FY 2025 Organizational Budget – A. Burroughs

The Brunswick-Glynn Joint Water and Sewer Commission Operational Agreement requires the JWSC to adopt a budget by June 30 of each year. Additionally, JWSC must present a proposed budget to the City of Brunswick and to Glynn County by May 1 of each year for their review and comment.  Typically, a draft budget is presented to the Finance Committee at their March meeting where Commissioners provide feedback on the proposed budget.  This occurred at the March 20, 2024 Finance Committee meeting. In preparing this budget, the JWSC Budget Team prepares an expenditure budget with input from senior staff and divisional managers, then compiles statistical data relative to the customer base and usage. This information is utilized to determine finances necessary to meet budget, adequately fund reserves, maintain debt coverage ratios and achieve other financial management plans as determined by the JWSC.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend the full Commission take the following actions: (1) approve submission of the Proposed Fiscal Year 2025 JWSC Budget to the City of Brunswick and to Glynn County for their review and comment, and (2) approve the Fiscal Year 2025 JWSC Budget in the amount of $38,930,000 subject to revisions resulting from comments received from the City of Brunswick and/or Glynn County. Motion carried 3-0-0.

  1. Approval of Virtual Card Program and Limit – D. Owens

Mr. Owens provided that the Brunswick-Glynn Joint Water & Sewer Commission uses four primary methods of payment: check, credit card, ACH, and wire transfer. Most of our vendor payments are made by check, especially for our larger invoices. Our current Banking and Merchant Services provider, Synovus, offers a program for an additional payment method called Virtual Card. A Virtual Card is related to our existing credit card account and is created online for one specific transaction at a time. In order for a Virtual Card to be accepted as a form of payment, the vendor must opt into the Virtual Card program with the BGJWSC. The benefit to the vendor is a faster receipt of payment of their invoices. The benefit to Synovus is a fee on the transaction paid by the vendor. The benefit to the BGJWSC is a rebate program of 1% (paid annually) once we meet an annual spending threshold of $1,000,000.00. Spending on our regular credit card will also count toward meeting/exceeding that threshold.

A vendor analysis performed by Synovus, using data provided by the BGJWSC, found that we have 279 vendors who could be invited to participate in the Virtual Card Program with the BGJWSC. It was also noted that the BGJWSC spent $27 million with the top 20 of those vendors in a twelve-month period. Based on this analysis it is estimated that a worst-case scenario for the BGJWSC starting a virtual card program would yield an annual rebate of $20,000 for no additional costs. We believe that we can recruit enough of our top vendors for the program that we could achieve a rebate of $70,000 – $80,000. As the Virtual Card is only a method of payment, it will not change anything in our expense approval or purchasing process.

Commissioner Sabbe made a motion seconded by Commissioner Cook to defer this item until the next meeting.  Motion carried 3-0-0. 

  1. Contract Award – 4002 Basin CIPP Rehabilitation Project – A. Burroughs

Mr. Burroughs advised that Basin 4002 is the sewer basin serving the majority of the City of Brunswick south of Gloucester Street and portions north of Gloucester Street up to portions of I and J Streets. It is the largest gravity sewer basin in our system and as a result is a significant contributor of I&I to our system.  The basin is 147,445 linear feet with over 75% of the basin being either clay or iron pipe. The basin was inspected via CCTV inspection by BGJWSC staff as part of programmed system inspections that occur once every ten years. Each segment was scored from 1-5 based on NASSCO standards. The pipes scoring a minimum of 4 that were candidates for trenchless rehabilitation were included in this bid package. The scope of work is CIPP lining, not replacing of lines.  Of those lines for CIPP most are clay, and some are iron. The total CIPP rehab for this project is 26,883 linear feet in pipe diameters ranging from 6” – 24”.  This project does not include lining manholes.  Five (5) bids were submitted to BGJWSC on Tuesday, March 26, 2024, with the apparent low bid from Bio-Nomic Services, Inc., in the amount of $1,748,173.00. The low bid was reviewed by staff and deemed reasonable compared to recent projects of a similar nature. The Engineer’s Opinion of Probable Cost for this project completed at time of bid advertisement was $2,895,999.00.  Mr. Burroughs noted that bid items 16-25, 28, and 29 will be completed and invoiced as requested by the project manager based upon field conditions before rehab occurs. Therefore, the project costs will almost certainly exceed the $1,748,173 bid amount. However, this would be true of all bidders and does not impact the low bidder on the project. Available funding for this project through the GEFA loan is $4,529,977.00. Upon project completion the GEFA loan can be closed out for an amount less than the original $15,000,000 budget. 

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend awarding a contract for the 4002 Basin Cured-in-Place Piping Rehabilitation Project to Bio-Nomic Services, Inc., in the amount of $1,748,173.00. Motion carried 3-0-0.

  1. Contract Award – Brunswick Villa Area Sewer Expansion – A. Burroughs

Mr. Burroughs stated that the Brunswick Villa neighborhood is bounded by Altama Avenue to the east, Brunswick High School to the north, Wylly Avenue to the west, and Sixth Street to the south. This neighborhood is adjacent to existing BGJWSC assets and is a prime candidate for in-fill expansion as identified by the BGJWSC. Similar to the project in Arco, this project will install 8,155 linear feet of gravity sewer and replace 650 feet of water main in the neighborhood to enable residents to connect to the sewer system and remove their aged septic systems. There will be 219 parcels with new sewer availability in the neighborhood upon completion of this project. Engineering design services were provided by Kimley-Horn. Three (3) bids were submitted to JWSC on Tuesday, March 26, 2024, with the apparent low bid from Southeast Pipe Survey, Inc., in the amount of $4,658,360.50. There was a bid alternate included to perform complete removal and replacement of existing asphalt pavement in the neighborhood in lieu of partial milling as required for the project. This alternate can be accepted for a deduction of $113,300.00, bringing the total contract value $4,545,060.50.  Kimley-Horn has provided a bid tabulation and recommendation of award to Southeast Pipe Survey including the alternate bid item for a total of $4,545,060.50. This is within 1% of the Engineer’s Opinion of Probable Cost completed at time of bid advertisement. This amount exceeds available funding in the project budget by $2,346,240.50. This overage will be funded from uncommitted funds in the Capital Improvement Fees reserve.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend awarding a contract for the construction of the Brunswick Villa Area Sewer Extension Project to Southeast Pipe Survey, Inc., in the amount of $4,545,060.50.  Motion carried 3-0-0.

  1. Pump Station 4105 Pumps Purchase – A. Burroughs

Mr. Burroughs provided that JWSC operates PS 4105 on Winstead Drive off Cate Road that handles sanitary sewer flows from the Exit 38 area. The station is scheduled for a force main replacement and electrical upgrades through a funded capital project. However, the existing pumps in the station have reached the end of their useful life and need replacement. Staff requested a quote for in-kind replacement pumps for PS 4105 from Xylem Water Solutions for two 20 hp Flygt submersible pumps. The cost for these two replacement pumps is $36,856.40. Upon completion of the force main and station upgrades, these pumps can be relocated to PS 4109 on Glynco Parkway for replacement of the existing pumps at that station which are approaching 20 years of age. This purchase is funded from the Systems Pumping & Maintenance Operations budget.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend approval of the purchase of two new Flygt submersible pumps for Pump Station 4105 from Xylem Water Solutions USA, Inc. in the amount of $36,856.40. Motion carried 3-0-0.

  1. Academy Creek Influent Pump Bases Repair – A. Burroughs

Mr. Burroughs advised that the Academy Creek Influent Pump Station contains four pump bases that are fixed to the floor of the wet well. When pumps are installed, they are slid down guide rails and are seated onto these bases. In September 2023, BGJWSC ordered two new influent pumps that are scheduled for delivery in early May. Staff had condition inspections performed on the pump bases. Upon inspection, it was determined that the pump bases were no longer properly affixed to the wet well, causing the pumps not to seat correctly, increasing vibration on the pump, and reducing pump capacity and pump lifespan. Staff requested a quote from BRW Construction Group, LLC to perform rehab of the concrete and pump bases as necessary to properly install these bases in advance of the new pumps being delivered. In addition, staff wishes to perform the same tasks on the remaining two pump bases once the new pumps are installed. This work will improve pumping efficiency and reduce wear and tear on the influent pumps. BRW performed similar work at the Dunbar Creek WPCF during the ongoing construction project. BRW provided a quote of $49,192.00 to perform the work and has confirmed that the work can be completed in advance of the new pump deliveries in early May. This item will be funded from the Academy Creek operations budget.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend entering into a contract with BRW Construction Group, LLC to perform rehab on the influent pump bases at Academy Creek Water Pollution Control Facility in the amount of $49,192.00. Motion carried 3-0-0.

  1. SPMD-302 Engine and A/C Repair – A. Burroughs

SPMD-302 is a 2015 Ford F-750 Dump Truck used by Systems Pumping & Maintenance construction crews for day-to-day operational tasks. The vehicle experienced engine trouble and was sent to Tom Nehl in Waycross for inspection and repair. The company specializes in medium and heavy-duty truck repair. Upon inspection by the service technician, it was determined that complete engine replacement is necessary for the vehicle. This was confirmed by Cummins. The vehicle also needs repair of the air conditioning unit. Tom Nehl has provided a quote for a not-to-exceed amount of $31,804.80 for the necessary repairs to the vehicle. Replacement of this vehicle is estimated at $125,000-$150,000, and heavy-duty vehicle availability continues to be a challenge. This item will be funded out of the Systems Pumping & Maintenance operations budget. Given the cost to replace the vehicle and need to get this vehicle returned to our fleet, staff recommends awarding a contract to Tom Nehl Waycross for the repair of SPMD-302 in the not-to-exceed amount of $31,804.80.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend awarding a contract for the repair of SPMD-302 to Tom Nehl Waycross in the not-to-exceed amount of $31,804.80. Motion carried 3-0-0.

DISCUSSION

  1. Financial Statement Month End March 31, 2024 – D. Owens

Mr. Owens presented the financial statement for the month ending March 31, 2024. He reviewed the Balance Sheet noting the Current Assets and Current Liabilities and briefed the Committee on the Combined Revenue Statement.  The various Operating Revenues accounts were noted, and details on the Summary of Revenues and Summary of Expenses were highlighted.  Mr. Ownes briefly reviewed line items on the Cash Balances and the Project Report.

Committee Chairman Watson asked if there was any further business to discuss.

Commissioner Sabbe made a motion seconded by Commissioner Cook to adjourn the Finance Committee meeting.  Motion carried 3-0-0.

There being no further business, Committee Chairman Watson adjourned the meeting at 4:19 p.m.

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Brunswick - Glynn Joint Water & Sewer Commission - 1703 Gloucester Street Brunswick, GA 31520 - 912-261-7100