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Finance Committee Meeting Minutes Wednesday, November 20, 2019

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, November 20, 2019 at 1:45 p.m. in the Commission Meeting Room.

Finance Committee Minutes 11-20-19 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, November 20, 2019 at 1:45 PM 

FINANCE COMMITTEE MINUTES

MEMBERS PRESENT:        

Steve Copeland, Committee Chairman

Donald Elliott, Commissioner

Andrew Burroughs, Executive Director                                               

ALSO PRESENT:                 

Ben Turnipseed, Commission Chairman

Bob Duncan, Commissioner

John Donaghy, Chief Financial Officer

LaDonnah Roberts, Senior Financial Analyst

 Janice Meridith, Executive Commission Admin. 

MEDIA PRESENT:               

Taylor Cooper, The Brunswick News

Pamela Permar-Shierling, The Islander 

ABSENT:                               

Tripp Stephens, Commissioner

Chairman Copeland called the meeting to order at 1:45 PM.  

PUBLIC COMMENT PERIOD

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

APPROVAL

  1. Minutes from October 16, 2019 Finance Committee Meeting

Commissioner Elliott made a motion seconded by Commissioner Copeland to approve the minutes from the October 16, 2019 Finance Committee Meeting.  Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.) 

  1. East Beach/Demere Improvements Project Budget – A. Burroughs

Mr. Burroughs provided that Glynn County has a SPLOST project to install a roundabout at East Beach & Demere on SSI.  In order to do this they have to relocate both water and sewer assets.  Glynn County has normally paid for the relocation costs of assets, however for this project there are a few modifications that JWSC would like to have done.  Mr. Burroughs noted that there are currently four forcemains that come into a concrete structure that has required rehabbing twice in the past five years.  Staff is requesting that the four forcemains be combined into one prior to that intersection, to demolish the concrete vault the forcemains currently flow into, and replace it with a HDPE manhole at this intersection.  The estimated cost for these three modifications is $100,000.00 and can be performed in conjunction with the Glynn County SPLOST project.  Glynn County is paying for the relocation of the water and sewer relocation as it normally would, and JWSC would only be responsible for the $100,000.00 for the requested modifications.

Commissioner Elliott made a motion seconded by Commissioner Copeland to move that the Finance Committee approve project funding in the amount of $100,000.00 for the East Beach/Demere Sewer Improvement Project and that this project funding approval be forwarded to the full Commission for approval.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.) 

DISCUSSION

  1. Banking RFP Update/Recommendation Schedule – L. Roberts

Mrs. Roberts provided that the responses to the Banking RFP were received on November 5th, 2019.  She recalled for the Committee that there were a total of six proposers.  There were three areas of banking services that the proposers could make proposals on.  All six of the proposers were brought in and interviewed by selected staff.  Mrs. Roberts advised there were a few select elements that the interviewing staff focused on as being most important.  The first was customer service with the question of how did the products and services that they were bringing to JWSC best help to enhance our customer service experience.  Convenience and Ease of use was another element staff thought was very important.  The question staff wanted answered was how could the tools recommended to be brought to JWSC help our staff to work more efficiently.  Cost effectiveness was another very important element in the products and services the proposers brought forth as compared to those already being received.  How can the combination of the services being brought forth prove to be more cost effective.  The next step will be to check the references that the proposers provided. The first week in December the top tier of the proposers will be reached out to.  The expectation is to bring forward a recommendation to the Finance Committee on December 18th and to the full Commission on December 19th.

  1. Potential Pension Changes – A. Burroughs

Mr. Burroughs provided that this information was presented to the Human Resources Committee on the previous week.  He stated that Segal Consulting who is the actuarial for the GMA Retirement System ran some scenarios for the staff and Commissioners to review concerning potential changes to the current pension plan.  The purpose of the scenarios were to indicate if those revisions were brought to the pension plan what the potential cost savings could be in the future.  The scenarios provided that the changes would begin on January 1, 2020.  The current employees would all be grandfathered in and their pension plan would not change.  The data as prepared by GMA developed the impact on plan funding of the following plan changes:  future new hires will contribute 2.5% of salary; future new hires will be vested after 5 years and contribute 2.5% of salary; and future new hires will be vested after 10 years and contribute 2.5% of salary.  Two exhibits were provided.  Exhibit 1 showed a 20 year projection of employer contribution rates.  Exhibit 2 presented a 20 year projection of employer contributions given in today’s dollars.  Segal did note that no one of the changes are projected to have a measurable effect on the funded status of the Plan.  Mr. Burroughs noted again that these exhibits are prepared with the employee contributing 2.5%, however it could be 3%.  He then further explained the data as presented and discussed with the Committee.  Discussion became very detailed and examples considered and discussed.  This subject matter will be revisited and options considered regarding grandfathering in current employees, the amount of contributions and matching, and vesting timing.  Other matters such as risk of loss in investing and if the GMA has any commitment in guaranteeing if the funding is there in future years based on how it is invested.

  1. Financial Statements Month End October 31, 2019 – J. Donaghy

Mr. Donaghy reviewed the financial statements for the month ending October 31, 2019 with the Committee.  First he noted account balances on the Balance Sheet and changes from June 30, 2019 to October 31, 2019.  On the Supplemental Schedule of Cash Balances Mr. Donaghy reviewed the various account balances and reserve balances.  The Combined Revenue Statement and notations were made comparing revenues and expenses.  The Project report was discussed relating to various budgets and costs, along with reserve balances on the Reserve Balance Summary.  As a final section for discussion and review in a more detailed perspective the Detail Revenue and Expense report was briefly reviewed.

There being no further business, Chairman Copeland adjourned the meeting at 2:52 p.m.

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