Finance Committee Meeting Minutes – Wednesday, November 18, 2020

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, November 18, 2020 at 3:00 p.m. in the Commission Meeting Room.

Finance Committee Minutes 11-18-20 with Attachments

To read the minutes, please open or download the pdf in 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, November 18, 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

Christa Free, Procurement Coordinator

 MEDIA PRESENT:               

None

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

 PUBLIC COMMENT PERIOD

Chairman Duncan opened the Public Comment Period.

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

EXECUTIVE SESSION – Personnel

Commissioner Elliott made a motion seconded by Commissioner Duncan to enter into Executive Session to discuss Personnel.  Motion carried 2-0-1.  (Commissioner Stephens was not present for the vote.)

Commissioner Stephens arrived at 3:05 p.m.

Return to Regular Session.

Commissioner Elliott made a motion seconded by Commissioner Stephens to return to Regular Session.  Motion carried 3-0-0.

APPROVAL

  1. Minutes from the October 14, 2020 Finance Committee Meeting

Commissioner Elliott made a motion seconded by Commissioner Stephens to approve the minutes from the October 14, 2020 Finance Committee Meeting.  Motion carried 3-0-0. 

  1. Christmas Gift Card Approval – L. Roberts

Mrs. Roberts recalled for the Committee that every year the JWSC does provide a $25 gift card for WalMart to every employee.  This year there would be a total of 150 cards purchased for a total amount of $3,750.  Commissioner Elliott mentioned having previous discussion on raising the amount of gift cards.  At that time, it was discussed but there was not a formal approval to increase the amount.  The Fiscal Year 2020-2021 budgeted amount for the gift cards was established at $25 per employee.  It was noted to consider increasing the amount in the future as it has remained the same for the past eight years or more.  Commissioner Stephens offered the suggestion to forgo the virtual luncheon and add that amount to the gift cards for this year.

Commissioner Stephens made a motion seconded by Commissioner Elliott to move that the Finance Committee recommend that the full Commission review and approve providing employees with a gift card in the amount of $25 to Walmart.  The total number of cards would be 150 for a total cost of $3,750.  Motion carried 3-0-0. 

  1. Proposed Year-End Transfer – L. Roberts

Mrs. Roberts commented that as per the financial policies that were passed by this Board, the Board has the opportunity under the section of “Reserve Management” at the end of the year to transfer funds that exceed the operating funds needed to maintain the normal cash flows at JWSC.  She noted that staff has done some review of the situation as far as cash flow is concerned and the year end audit has been completed.  At this particular point staff proposes that a transfer of $1.25M be authorized from the Utility Reserve account to the Repair and Replacement Investment account.  Mr. Burroughs pointed out that these funds are coming from operational savings that have been achieved, and JWSC does not budget much in the way of late fees coming in throughout the year, so that money is coming from operational savings.

Commissioner Elliott made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission review and approve a transfer of $1.25M from the Utility Revenue account to the Repair and Replacement Reserve Investment account.  Motion carried 3-0-0.

  1. Leak Adjustment – A. Burroughs

Mr. Burroughs noted that this was a rather large leak adjustment which had to be brought before the Commission.  A JWSC customer, Kenneth Gibson had a significant water leak under his mobile home.  He was notified by his landlord and maintenance staff that the leak was non-repairable and he has been forced to move to a new location because he could not maintain water service.  However, his account has been transferred to the new location so JWSC would like to give him the requested leak adjustment.  Mr. Burroughs provided a chart indicating that Mr. Gibson’s usages for May 2020, June 2020 and July 2020 were 6.3, 5.4, and 61.3 times his normal monthly usage.  Typically in order to qualify for a leak adjustment the customer does have to provide proof of repair to the leak, but this leak was cut-off at the curb stop on the service line, and will have to be repaired before anyone else can utilize the service, but given that the failure to repair is on the part of the landlord, JWSC does recommend giving Mr. Gibson a credit towards his account.  Commissioner Stephens commented that he thought the graph and chart were helpful in seeing the monthly usage numbers for determination of excess usage amounts and should be included in the future.

Commissioner Stephens made a motion seconded by Commissioner Elliott to move that the Finance Committee recommend the full Commission approve the leak adjustment in the amount of $2,804.13 to the account of Kenneth Gibson as presented.  Motion carried 3-0-0.

  1. Supplemental Executive Retirement Plan – C. Dorminy

Mr. Dorminy noted that this item would need to be deferred.

Commissioner Stephens made a motion seconded by Commissioner Elliott to defer item 5 until the next meeting.   Motion carried 3-0-0.

DISCUSSION

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

Mrs. Roberts commented that there were no large or significant changes of the Financial Statements for this month.  Starting with the Balance Sheet, she noted that between Cash and Cash Equivalents and the Bond Sinking Fund there was an increase of about $1M between last month and this month.  The transfer of funds as approved earlier will affect the Cash and Cash Equivalents.  In response to a question from last month’s meeting concerning the composition of those Accounts Receivable and their ages, Mrs. Roberts provided that the Accounts Receivable are $1.85M of which $1.74M were in the category of either current or 30 days or less.  The remainder of that is largely from 2 huge leak adjustments that were approved by the Commission recently, one has a balance remaining of about $68K in the 60 day plus range, and the other has a balance of about $20K remaining in that 60 plus range.  Mr. Burroughs provided commentary from contractors who have been very appreciative of JWSC’s Accounts Payable for paying the bills in a much more-timely manner than their other customers.  Commissioner Stephens asked about the status of commercial deposits being refunded.  Mrs. Roberts stated that last month the first batch was processed, and this month another batch of 311 accounts are currently being reviewed to see if they meet all of the criteria for that deposit to be applied back to the account, and staff is continuing the process for these commercial deposits.  Commissioner Cook suggested considering only providing an Executive Summary monthly for the financials, and printing the full detailed report once per quarter to save extra printing and paper.

Mr. Burroughs stated that notification has been received from GEFA following the public notice for the meter loan which has been approved.  There are a couple of items that need to be done on the post-approval check list before we get on the final approval, and this process is moving along.

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

There being no further business, Chairman Duncan adjourned the meeting at 4:05 p.m.