Finance Committee Meeting Minutes – Wednesday, March 15, 2023
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, March 15, 2023 at 3:00 p.m. in the Commission Meeting Room.
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Brunswick-Glynn Joint Water & Sewer Commission
1703 Gloucester Street, Brunswick, GA 31520
Commission Meeting Room
Wednesday, March 15, 2023, at 3:00 PM
FINANCE COMMITTEE MINUTES
Tripp Stephens, Committee Chairman
Charles Cook, Commissioner
Clayton Watson, Commissioner
Andrew Burroughs, Executive Director
Ben Turnipseed, Commission Chairman
LaDonnah Roberts, Executive Deputy Director
David Owens, Director of Finance
Frances Wilson, Accounting Manager
Janice Meridith, Executive Commission Administrator
Committee Chairman Stephens called the meeting to order at 3:00 PM.
PUBLIC COMMENT PERIOD
Chairman Stephens opened the Public Comment Period. There being no citizens that wished to address the Committee, Chairman Stephens closed the Public Comment Period.
Commissioner Cook made a motion seconded by Commissioner Watson to switch the agenda discussion items to be presented in the order of D3, D2, then D1. Motion carried 3-0-0.
- Minutes from the February 15, 2023, Finance Committee Meeting
Commissioner Cook made a motion seconded by Commissioner Watson to approve the minutes from the February 15, 2023, Finance Committee Meeting. Motion carried 3-0-0.
- Cityworks Renewal Agreement – A. Burroughs
Mr. Burroughs provided that JWSC utilizes a software program called Cityworks, owned by Azteca Systems, Inc. as an asset management and work order management system. Work orders completed by staff are tagged to the individual assets that are being worked on to generate information on expenses by asset location and overall asset type. Cityworks is also utilized for inventory management through the Storeroom add-on. Each year, the JWSC has entered into an Enterprise License Agreement (ELA) with Azteca Systems for the ongoing subscription and maintenance of the Cityworks program, the Storeroom add-on, the CCTV add-on, and the mobile application add-on. Mr. Burroughs stated that Cityworks is a crucial part of the ongoing workflows for both inspections and maintenance activities for the JWSC field crews. Furthermore, the information collected and analyzed from Cityworks assists management with future maintenance and replacement needs to ensure that JWSC capital funds are being allocated to the most impactful area. Cityworks is also where recordkeeping occurs in a storm event to expedite the completion of FEMA-related paperwork. This year’s ELA renewal does include an increase from the previous two years. The Fiscal Year 2021 and 2022 renewals were $42,000. The increase for this year is $2,646, which is a 6% increase over the previous fiscal year. Staff recommends renewing the attached Enterprise License Agreement with Azteca Systems, Inc. for the ongoing software subscription for Cityworks. This is paid for out of multiple operating budgets based on percentage of total users by division. There will be no changes to the program.
Commissioner Cook made a motion seconded by Commissioner Watson to move that the Finance Committee recommend the full Commission approve the renewal of the Fiscal Year 2024 Cityworks Enterprise License Agreement with Azteca Systems, Inc.
Committee Chairman Stephens commented that staff should ask Azteca Systems about a multi-year renewal for the future.
Motion carried 3-0-0.
- Academy Creek Clarifier Drive Replacement – A. Burroughs
Mr. Burroughs noted that the Academy Creek Water Pollution Control Facility has six clarifiers that help separate solids from wastewater following biological treatment in the aeration basins. Each clarifier has a mechanical drive that rotates a set of rakes on the bottom of the clarifier to force solids into the sludge collector. It also has a skimmer arm on top to push floating scum to the scum trough for removal. Upon inspection of the clarifier drive assembly on Clarifier No. 6, staff determined that a replacement of all components above the worm gear needed replacing. Evoqua is the provider of replacement materials for these drive assemblies. Staff requested pricing for both a complete drive assembly replacement and for all the parts above the worm gear as shown below.
(1.) Buy Parts and Rebuild Internally = $30,641.17 with lead time of 12-14 weeks.
(2.) Complete Assembly Replacement = $40,405.88 with lead time of 8-10 weeks.
Staff recommends purchasing the complete assembly rather than purchasing parts for the rebuild. While more expensive, this option will arrive sooner and require less staff time for installation. Installation of the drive assembly will require renting a crane and operator for a day to perform the tasks. This will be funded out of the Academy Creek Equipment Parts and Supplies budget.
Commissioner Watson made a motion seconded by Commissioner Cook that the Finance Committee recommend the full Commission approve the purchase of a clarifier drive assembly for Academy Creek from Evoqua Water Technologies in the amount of $40,405.88. Motion carried 3-0-0.
- Academy Creek Influent Pump Rehab – A. Burroughs
Mr. Burroughs stated that the Academy Creek Water Pollution Control Facility has four 125-horsepower influent pumps which pump the wastewater received from the sewer collection system into the treatment facility. Under normal flow conditions, the plant uses one pump, but in major rain events all four pumps are occasionally required. Additionally, being down a pump reduces the flexibility to perform maintenance on the other three pumps as we approach the rainier months of the year. Staff sent the damaged pump to Southeast Pump Specialist for inspection to determine a scope of work to have the pump rebuilt into a like new condition. Southeast Pump Specialist provided the attached necessary scope of work, which essentially replaces or rehabs everything on the pump excluding the motor and volute. The cost to repair the pump is quoted at $45,736.00 with a 5-7 week lead time for the work to be completed. Given the high cost to repair, staff also requested a quote for a new pump to use as a replacement. The received quote for a replacement pump is $91,410.00. No lead times were provided on the quote, but based on recent pump orders on smaller pumps, it will likely exceed the 5-7 weeks quoted for repair and take more like 12-16 weeks. If approved, a 5-7 week leak time to repair would have the pump being delivered around the end of April or early May. Staff recommends repairing the existing Yeomans pump with Southeast Pump Specialist for a cost of $45,736.00. The cost is approximately half the cost to replace it, and there is more certainty with lead times on the repair. Repairing the pump will likely extend the useful like of the pump by 3-5 years. This will be funded out of the Academy Creek Purchased Equipment Repair budget.
Commissioner Cook made a motion seconded by Commissioner Watson that the Finance Committee recommend the full Commission approve the repair of the Academy Creek Influent Pump by Southeast Pump Specialist in the amount of $45,736.00. Motion carried 3-0-0.
- Arnold Road Resurfacing – Change Order No. 1 – A. Burroughs
Mr. Burroughs advised that Pump Station 2002 is located on Arnold Road near the intersection with Ocean Boulevard. JWSC staff installed approximately 1,000 feet of 12” PVC force main to replace a section of cast iron force main that had reached the end of its useful life. On October 20, 2022, the Commission awarded a resurfacing contract to Allen Owens Construction and Paving, Inc. for the resurfacing of Arnold Road. During the installation of the force main, several unforeseen issues arose which slowed the time frame of the project. Unknown utilities were discovered that caused some rerouting of the pipe outside of the originally proposed trench. The trench varies in size and location throughout the existing roadway. Furthermore, upon milling the asphalt in the trench, it was determined that there is between 6-8” of asphalt currently on Arnold Road, likely from multiple overlays. Upon completion of the pipe installation, Glynn County had concerns about the scope of proposed paving repairs originally awarded to Allen Owens, which included milling the existing asphalt 2” and laying 9.5 mm of 1.5” asphalt topping instead. Staff requested an updated quote from Allen Owens Construction to perform the new scope of the resurfacing project which was received at $124,500.00. This is an increase in the contract amount of $29,125.00.
Commissioner Watson made a motion seconded by Commissioner Cook that the Finance Committee recommend that the full Commission approve Change Order No. 1 in the amount of $29,125.00 to Allen Owens Construction and Paving, Inc. for scope changes associated with the resurfacing of Arnold Road. Motion carried 3-0-0.
- Surplus Inventory/Equipment – A. Burroughs
Mr. Burroughs provided the Committee with a description of fleet vehicle SPMD-401 which staff has identified to be no longer of use to the mission of JWSC. The engine hours of the vehicle (7,428 hrs.) were noted for consideration in declaring the 2002 Sterling Hot Shot Vac-Con as surplus. The vehicle has reached the end of its useful life and will require repairs in excess of vehicle value. It will be posted for sale on GovDeals or in a manner most beneficial to the JWSC.
Commissioner Cook made a motion seconded by Commissioner Watson that the Finance Committee recommend the full Commission approve the above listed item as surplus to be disposed of in a manner most beneficial to the JWSC. Motion carried 3-0-0.
- Investments Discussion – D. Owens
Mr. Owens gave a presentation on “Cash and Investments.” He began by explaining legal background information from Georgia Code Title 36, specifically O.C.G.A. §36-83-4. He then reviewed BGJWSC’s Financial Policies: Investment Policy and Reserve Management. Current economic conditions were highlighted. The Committee was then presented with data on JWSC’s Cash Deposit Accounts and Investment Accounts.
- Draft FY 2024 Budget Presentation – A. Burroughs
Mr. Burroughs presented the Committee with the draft version of the Proposed Annual Budget for Fiscal Year 2024. The Budget Team and Staff’s various responsibilities and tasks for the budget process were reviewed. Mr. Burroughs included the following details within his presentation: Fiscal Year 2024 Budget Goals; Fiscal Year 2024 Budget Highlights; Fiscal Year 2024 Revenues; FY 2024 Expenses by Expense Type; FY 2024 Expenses by Division; FY 2024 Expense Highlights of Increases and Decreases; Capital Expenditure Request; and Historical Expenses. The Budget is expected to be approved in April for forwarding to the City of Brunswick and Glynn County for their review and recommendations.
- Financial Statement Month End February 28, 2023 – F. Wilson
Mrs. Wilson presented the financial statement for the month ending February 28, 2023. She 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. Mrs. Wilson briefly reviewed line items on the Cash Balances and the Project Report, as well as providing an update on Investments.
Chairman Stephens asked if there was any further business to discuss.
Commissioner Cook made a motion seconded by Commissioner Watson to adjourn the Finance Committee Meeting. Motion carried 3-0-0.
There being no further business, Chairman Stephens adjourned the meeting at 5:05 p.m.