Finance Committee Minutes – April 19, 2016
For your consideration, please review the minutes for the Finance Committee Meeting from April 19, 2016:
To read the minutes, please open or download the pdf from the link above or you may see more below:
Donald Elliott, Commissioner
Ronald Perry, Chairman
John Cason, Commissioner
Thomas Boland, Acting Director
John Donaghy, Chief Financial Officer
Pamela Crosby, Director of Procurement
Todd Kline, Senior Engineer
Angela Walker, Pretreatment Compliance Coordinator
Kalem Head, Meter Reading Supervisor
Chairman Elliott called the meeting to order at 3:30 PM.
PUBLIC COMMENT PERIOD
There being no citizens that wished to address the Committee, Chairman Elliott closed the Public Comment Period.
Minutes from March 15, 2016 Finance Committee Meeting
Commissioner Perry made a motion seconded by Commissioner Cason to adopt the minutes of the March 15, 2016 Finance Committee Meeting. Motion approved 4-0-0.
Enforcement Response Plan – A. Walker
Angela Walker presented the Enforcement Response Plan document to the committee stating this to comply with the requirements contained in 40 CFR part 403.8(f)(5). This ERP is intended to outline step-by-step the procedures for JWSC to follow when responding to pretreatment violations. The section of Key Personnel (pg. 2) was discussed when fines are issued. It was noted that the Executive Director maintains the authority for final determination of fines based on deviation and seriousness. Angela brought forth the concern about the appeal process and it was requested to have legal evaluate the Compliance Review section and the table of actions (pg. 4). It was discussed to provide a progressive fine and be consistent throughout the document with the maximum of $1,000. JWSC owns, operates and maintains three (3) POTW (publicly-owned treatment works) and the pretreatment requirements are contained within the County Water and Sewer Ordinance. Additional review is needed prior to approval.
Surplus Inventory/Equipment and Disposal – P. Crosby
Pam Crosby presented to the committee the Surplus Inventory/Equipment and Disposal list and memorandum. It was stated that the list is comprised of inventory, equipment and vehicles which are no
longer of use to the JWSC or are in a condition which renders them unserviceable. The first step is to declare these items as surplus and then the Procurement Division will dispose of in a manner most beneficial to JWSC which could include GovDeals.com, auctions, and donations.
March End of Month Financial Comparative – John Donaghy
John Donaghy discussed the Balance Sheet, Schedule of Cash Balances, the Repair and Replacement Reserve funds were discussed. The Fund Balances and the Expansion Reserves having $500k were discussed and noted it won’t be funded this year. The Operating Reserves of 8.9M will have 1.5M taken out to purchase capital items for this year. This was established to offset future borrowings and could potentially be available for purchases. The OREMC loan of $750k was discussed and the requirements with the banks may need to be reconsidered. The Capital Tap Fee Reserves of a total of 4.6M and Bond Trustee Reserves of a total of $6.9M were discussed. The Issuance Fund expended for obtaining the titles to the properties. The Debt Service Reserve established by the bond indenture. There has been discussion to purchase an insurance policy to guarantee the payments and be able to withdraw that money and from the bond trustee. There was discussion on consulting with a financial advisors to assist in the Master Plan financing and to not place the burden on the rate payers. The Revenue & Expense document was examined and highlighted by John.
2016-2017 Budget – John Donaghy
John discussed the 2016-2017 Budget from the Revenue & Expense document. He stated that JWSC has not heard a response back from the City or the County and this is expected to be adopted at the full JWSC Commission meeting on June 16. The public hearings and town hall meetings were discussed and will include Andy Burnham. It was suggested to add two (2) more public meetings to discuss the Rate Resolution and Maser Plan. It was stated that the vendors are being paid and on time. Any vendors that offer 2/10 net 30 or other discount and term offers are being taken advantage of. The last document, Project Report, was examined.
Master Plan Update – Comm. Elliott
Commissioner Elliott discussed the master Plan update and detailed the Capital funding for each project. The spreadsheets provided were examined by the committee. It was stated there is about 4M of debt to accomplish the highest priority on the first year and the second year would be SPLOST items and so on. It was split up by water 27% and sewer 73% based on Master Plan for Repair & Rehabilitate on the whole plan. The next item of discussion was water and daily maintenance and the high dollar on the Transite issues. It was stated we are currently looking at a maintenance contract for the elevated storage tanks and much of the work can be done in house.
Proposed Rate Resolution – J. Donaghy
John Donaghy discussed to proposed Rate Resolution and the rate study by Burton and Associates. Industrial Users section was reviewed and suggested that an additional section (c) be added that references back to the Enforcement Response Plan. Other items of discussion were fire protection charges, REU’s, and Hydrant Meter rentals. The monthly reading and billing of the hydrant meters has been an issue and an administration fee could be added.
Rate Resolution Public Notice – J. Donaghy
John Donaghy updated the committee on the publications that will start going out in customers’ bills and be placed in the newspaper two (2) times, in compliance with the enabling legislation. In this notification JWSC is required to set forth the projections with and without the rate adjustments and the five (5) year history of the rates.
Metron Meter Costs – J. Donaghy/K. Head
John Donaghy discussed the Metron Meters and stated the cost a little more but are a better product. As mentioned in the Facilities Committee, the Metron Meters have the capability of text messaging and a more accurate reading beginning after ¼ gallon of water. It was noted this is for information only at this time.
Mansfield Street Update – T. Kline
There was discussion on Mansfield Street and the length of the project. Information was needed for Commissioner Cason.
Meeting was adjourned at 5:18 pm.