Finance Committee Meeting Minutes – Wednesday, August 19, 2020

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, August 19, 2020 at 3:00 p.m. in the Commission Meeting Room.

Finance Committee Minutes 8-19-20 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, August 19, 2020 at 3:00 PM 

FINANCE COMMITTEE MINUTES

MEMBERS PRESENT:         

Bob Duncan, Committee Chairman

Donald Elliott, Commissioner

Tripp Stephens, Commissioner

Andrew Burroughs, Executive Director                                               

ALSO PRESENT:                  

Ben Turnipseed, Commission Chairman

Charles Cook, Commissioner

Charlie Dorminy, HBS Legal Counsel

LaDonnah Roberts, Deputy Executive Director

Frances Wilson, Senior Accountant

Janice Meridith, Executive Commission Administrator 

MEDIA PRESENT:               

None

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

PUBLIC COMMENT PERIOD

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

EXECUTIVE SESSION

Committee Chairman Duncan requested a motion to add an Executive Session to the agenda, and to enter into Executive Session to discuss Personnel.

Commissioner Stephens made a motion seconded by Commissioner Elliott to add an Executive Session to the agenda and to enter into Executive Session to discuss Personnel.  Motion carried 3-0-0.

Return to Regular Session.

Commissioner Duncan made a motion seconded by Commissioner Stephens to come out of Executive Session and return to Regular Session.  Motion carried 3-0-0. 

APPROVAL

  1. Minutes from the July 15, 2020 Finance Committee Meeting

Commissioner Elliott made a motion seconded by Commissioner Stephens to approve the minutes from the July 15, 2020 Finance Committee Meeting.  Motion carried 3-0-0. 

  1. GEMA Fixed Generator RSA – A. Burroughs

Mr. Burroughs noted that this item had been discussed earlier in the Facilities Committee Meeting.  JWSC has been awarded a Hazard Mitigation Grant from GEFA and GEMA which is the State level of FEMA.  This RSA is for funding for 8 fixed generators of which 5 will be at water well sites and 3 will be located at the Academy Creek Wastewater facility.   Mr. Burroughs explained that JWSC has to “front” the money for the total purchase cost and cost of the installation.  The total purchase cost is $1.36M of which 75% will be refunded by the federal government, 10% from the State, and JWSC pays the balance of 15%.  He also provided a projected cost breakdown indicating the cost for each generator and the amount/percentage of responsibility from FEMA, GEMA and JWSC.  Upon completion of the project JWSC’s total expenditure for its portion will be $203,660.

Commissioner Elliott made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission enter into a Recipient-Subrecipient Agreement with GEMA for HMGP 4338-0035 for the purchase and installation of 8 fixed generators.

Commissioner Stephens asked if the 8 locations are hard-set, and Mr. Burroughs responded that they are.  He explained that on the application the specific locations for the new generators and the specific generator sizes required must be provided, and added that an electrical consultant out of Savannah sized the generators for JWSC.  Also noted was, at the Facilities Committee Meeting it was discussed that if there were an asset that needed to be relocated, this could be done after the project is complete.

Motion carried 3-0-0.

  1. Surplus Equipment and Inventory – A. Burroughs

Mr. Burroughs advised that staff is continuing to go through existing inventory and are finding items that are dated or no longer in need.  JWSC previously used an old SCADA system called Clear SCADA, which was then converted to a Data Flow Systems (DFS) platform, and JWSC is now on VT SCADA.  These surplus items are parts from Clear SCADA, which was two SCADA systems ago.  These parts to be declared as surplus consist of 28 Multitrode Level Sensing Probes, 82 Clear SCADA Antennas, and 79 Clear SCADA Packs.  The total estimated value of this inventory is $2,000, and does need to be removed off of the fixed asset register. 

Commissioner Stephens made a motion seconded by Commissioner Elliott to move that the Finance Committee recommend that the full Commission approve the above listed items as surplus to be disposed of in a manner most beneficial to the JWSC.

Commissioner Cook asked how long surplus items stay on the GovDeals website.  Mr. Burroughs replied that typically items are left on the site for 30 days, and if no one has a need for these items they will be disposed of.  He added that several of the trucks that were put on GovDeals during the previous month had sold.

 Motion carried 3-0-0. 

  1. Banking Resolution – F. Wilson

Mrs. Wilson recalled for the Committee that John Donaghy had retired on June 30th and he was an authorized signer on all of the BB&T, now Truist Bank accounts.  A new Banking Resolution is necessary in order to remove Mr. Donaghy from the bank accounts.  At the same time, Mrs. Roberts needs to be renamed an authorized signer as the Deputy Executive Director.  Mrs. Wilson noted that a new Banking Resolution will be needed after the position of Director of Finance is filled.  She added that during this process, the Capital Tap Fee Reserve – St. Simons will be renamed the Capital Improvements Fee Reserve as the four district reserves have been consolidated into one, and she noted cash accounts only.

Commissioner Elliott made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission review and approve the renaming of the Capital Improvement Fee Reserve; and that the Chairman and Vice-Chairman of the JWSC be authorized to execute the necessary Banking Resolution and signature card with BB&T (Truist) Bank; and that the Chairman, Vice-Chairman, Executive Director, and Deputy Executive Director be authorized signatories on the BB&T (Truist) bank accounts of the JWSC. 

Commissioner Stephens questioned if it was previously decided to have staff from cross divisions as signatories when 2 signatures are necessary.  Mrs. Wilson clarified that in the Financial Policies the specifics were laid out as to which two authorized signers can sign at the same time, and the Banking Resolution denotes who all the authorized signers are. 

Motion carried 3-0-0. 

  1. Budget Transfer / Group Health Insurance – L. Roberts

Mrs. Roberts recalled for the Commissioners that in May of this year the full Commission approved the recommendation from staff to move from an employees’ health insurance plan that was fully-funded to one that was self-funded.  Because that change occurred after the Commission had already approved the fiscal year budget for 2021, staff had not at that time considered the allocation of those health insurance budgets, whether it be to the divisional level or to the organizational level.  Now that JWSC has moved to the self-funded insurance plan that started August 1st it is necessary to move those budgets up into one cost center.  Staff is recommending that cost center be the Finance budget.  Mrs. Roberts then provided clarification that this request was not to approve additional funding, but only the transfer of the existing funding and staff is bringing this to the Board due to the size of the dollars or the percentage of the budget that is being moved.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee recommend that the full Commission review and approve transferring and consolidating Fiscal Year 2021 budgeted funding for employees’ insurance into the Finance Division’s budget.  Motion carried 2-0-1.  (Commissioner Stephens abstained due to Health Insurance.)

DISCUSSION

  1. Financial Statements Month End July 31, 2020 – L. Roberts

Mrs. Roberts stated that even in light of the economic impact that the pandemic has had on our economy in general, the JWSC continues to be financially strong.  The revenues for this reporting period are approximately 8% over budget, and the expenditures are approximately 9% under budget for the same time period.  With July being a 3 paycheck month, it does appear to be over budget, however that averages out over a year and is not over budget.  Mrs. Roberts also noted that in the first month of the fiscal year it is not unusual to show under-runs on expenditures, and there is a bit of an under-run due mainly to timing of purchases and invoicing.  Staff will continue to monitor that as the fiscal year progresses.  Mrs. Roberts provided that the audit team of external auditors are expected to arrive on Monday, August 24th. She recognized and noted her appreciation for Mrs. Wilson in accounting who has been feverishly working to prepare for their arrival.  The Commissioners were reminded that there are year-end adjusting entries that will result from the audit, and some of those entries will either affect the last month of the last fiscal year or the first month of the new fiscal year.  Historical averages will not be calculated until after the audit has been completed.   Mrs. Roberts then reviewed the financial statement for the month ending July 31, 2020 with the Committee, and initially provided that the beginning time period on the Balance Sheet does show June 30, 2019 which is correct and the date will be rolled over after the audit is completed.

After speaking about revenues, Mrs. Roberts gave the floor to Mr. Burroughs to provide information regarding possible revenue from the available building space where CVS was.  He stated that he had a Commissioner contact him and he also read in the newspaper that the Veterans’ Affairs Association is looking for space to lease.  Mr. Burroughs indicated that an offer package had been submitted by JWSC as a part of the V.A.’s open solicitation for a potential Veterans’ Affairs Clinic next door in the old CVS space.  All of the requirements in the solicitation were met by JWSC, and it is hopeful that the offer may be attractive to the Department of Veterans’ Affairs for occupancy in September 2021. Mrs. Roberts then concluded her review and explanation of the financial statement and project report.

Commissioner Cook asked if with the switch over to the self-funded insurance will there be a line item in the report that will show how much money has been put into this account every month and how much is actually drawn out by United Healthcare.  Mrs. Roberts said yes there will be, and added that UHC has established a checking account which is actually JWSC’s checking account, but is in their name in order for UHC to draw funds.  She explained that each month JWSC will transfer funds from the Reserve into that checking account, and UHC will not have direct access to JWSC’s funds other than what is transferred into that checking account.  Each month Mrs. Wilson will do a reconciliation of the checking account.  The deposits are made on every Friday by JWSC into the checking account.

Commissioner Stephens asked about the SCADA parts for surplus, and inquired if there is something through the trade societies or the water and sewer entities that sends out an e-mail to advertise when these items are available, or do they go to our website to look?  Mr. Burroughs stated that JWSC places surplus items on GovDeals, which is where most water utilities and governments in general are going to place surplus equipment for sale, and others know to go and look at that site.  He added that there isn’t an update sent out by any of the state organizations, but he believed that if it was brought up to them, they may be willing to have some sort of link to that on their page; and noted that we do try to help each other out in this business as much as we can.

Committee Chairman Duncan asked if there were any other items to discuss.

There being no further business, Chairman Duncan adjourned the meeting at 3:39 p.m.