Finance Committee Minutes – Wednesday, October 20, 2021

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, October 20, 2021 at 3:00 p.m. in the Commission Meeting Room.

Finance Minutes 10-20-21 with Attachments

To read the minutes, please open or download the pdf from the link above, or you may see more below.

Brunswick-Glynn Joint Water & Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Commission Meeting Room

Wednesday, October 20, 2021 at 3:00 PM 

  

FINANCE COMMITTEE MINUTES

 

MEMBERS PRESENT:          Bob Duncan, Committee Chairman

Charles Cook, Commissioner

Andrew Burroughs, Executive Director                                          

ALSO PRESENT:                   Ben Turnipseed, Commission Chairman

                                                LaDonnah Roberts, Deputy Executive Director

                                                Frances Wilson, Accounting Manager

                                                Janice Meridith, Executive Commission Admin.

 ABSENT:                                Tripp Stephens, Commissioner

 MEDIA:                                  None Present

 

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

Committee Chairman Duncan appointed Commission Chairman Turnipseed to serve as a member on the Finance Committee this day in lieu of Commissioner Stephens’ absence.

 PUBLIC COMMENT PERIOD

Chairman Duncan opened the Public Comment Period.

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

 

APPROVAL

  1. Minutes from the September 15, 2021 Finance Committee Meeting

Commissioner Cook made a motion seconded by Commissioner Turnipseed to approve the minutes from the September 15, 2021 Finance Committee Meeting.  Motion carried 3-0-0.

 

  1. FY2020-2021 Financial Audit Presentation/Approval – Trey Scott, Mauldin & Jenkins

Mr. Trey Scott with the auditing firm of Mauldin & Jenkins presented the auditors’ opinion of JWSC’s Financial & Compliance Audit for Fiscal Year 2020-2021to the Finance Committee.  First he provided a brief introduction to the firm of Mauldin & Jenkins.  Mr. Scott then highlighted the auditors’ findings and opinion.  He stated that a clean opinion was determined, JWSC staff did a great job and provided everything as required, there were no findings to report, and there were no management points necessary for discussion.  No auditor adjustments were needed, there were no disagreements with staff, and no issues found.  A strong balance sheet was reported and JWSC had a good current year of operations.   Great cash flows from Operations were noted.  Reinvesting into the system is a definite positive for JWSC.  The auditors also determined that staff maintains good practices in required communications.  Mr. Scott completed his presentation by updating the committee on additional services Mauldin & Jenkins provide to their customers.

Commissioner Turnipseed made a motion seconded by Commissioner Cook to move that the Finance Committee recommend the full Commission accept the Financial Audit for Fiscal Year 2020-2021.  Motion carried 3-0-0.

 

  1. Fiscal Year 2021 Year End Transfer – A. Burroughs

Mr. Burroughs informed the committee that the audited financial statements from Fiscal Year 2021 show a Net Operating Revenue for the fiscal year of $2,131,921.  Operating revenues for the year were $33,222,951 against operating expenses of $20,590,331 and non-operating expenses of $10,189,120.  He noted that non-operating expenses include debt service and interest payments, bad debt expenses, and planned reserve transfers to the Repair and Replacement Reserve and Capital Reserve.  As a result of effective management of operational funds, JWSC has positioned itself to be able to transfer funds to their elective reserves.  Changes in Group Health Insurance, difficulties filling open positions throughout the pandemic, and a significant reduction in training opportunities due to the pandemic created personnel savings exceeding $900,000.  Mr. Burroughs also stated that other areas where significant savings were realized include Investment Fees, Pump Station Electricity, Odor Control, Improved Maintenance Practices, and Legal Fees.  These line items’ savings total nearly $700,000.  Based on current cash balances and projected upcoming cash needs, JWSC staff is comfortable recommending a total transfer amount of $1,700,000.  Staff recommended the following actions be taken with the year-end transfer amount of $1,700,000:

  • Transfer Savings from Group Insurance into the Group Insurance Reserve in the amount of $300,000;
  • Contribute Savings from Combined Personnel Cost Line Items to the BGJWSC Retirement Plan to reduce the unfunded liability in the amount of $300,000; and
  • Transfer Savings from Operational Line Items to the Repair and Replacement Reserve in the amount of $1,100,000.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission authorize the transfer of $300,000 to the Group Insurance Reserve, $300,000 to the Brunswick-Glynn Water and Sewer Retirement Plan, and $1,100,000 to the Repair and Replacement Reserve from net operating revenue generated in Fiscal Year 2021.  Motion carried 3-0-0.

Commissioner Duncan reiterated for clarity that this amount is dollars that were budgeted for significant expenses, and due to the specific savings noted above, this excess in revenue is available.  COVID limited our ability to spend budget amount.  This is not a savings or gain from revenues.  JWSC did not have the opportunity to spend these budgeted amounts, and this is not anticipated to be the same in the future.

 

  1. Dunbar Creek WPCF Design/Build Contract Award – A. Burroughs

Mr. Burroughs recalled for the committee that this approval item was discussed just earlier in the Facilities Committee Meeting.  He noted that the JWSC has identified a list of improvements needed at the Dunbar Creek Water Pollution Control Facility.  These improvements include the following areas:  RAS flow control, aeration systems and controls, clarification capacity, UV disinfection capacity, tertiary filtration capacity, odor control, wastewater reuse systems and entrance roadway improvements.  The project is to be designed and constructed in two phases using the progressive design/build delivery method.  The three proposals received on September 28, 2021 were reviewed and scored by a three member panel with representation from JWSC Operations, Engineering, and the Senior Leadership teams.  BRW Construction Group, LLC received the highest average score of 93.  Phase One services from BRW Construction Group, LLC will cost $53,300.00.  The proposed overhead and fee percentages that will be added to all Phase Two services, if awarded, will be 11% and 10% respectively.  Phase One is to be funded from the R&R Reserve Project Number 2106.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Phase One Services for the Progressive Design/Build Services for Dunbar Creek WPCF Rehabilitation to BRW Construction, LLC in the amount of $53,300.00.  Motion carried 3-0-0. 

 

  1. Academy Creek Influent VFD Replacement – A. Burroughs

Mr. Burroughs informed the committee that the influent pumping station at Academy Creek takes flow from the gravity collection system and pumps into the plant processes.  There are 4 influent pumps and each of these are operated by Variable Frequency Drives (VFDs) to allow for speed control and in-rush control.  Mr. Burroughs further noted that currently, 2 of these VFDs are inoperable.  One pump is not in the wet well at this point as it had to be sent for repairs.  A third pump is operating only in on/off mode and must be turned on manually.  These VFDs need replacing and the other 2 are nearing the end of their useful life.  Mr. Burroughs provided that staff solicited quotes from 3 electrical contractors for the replacement of the VFDs, and then requested a quote from the contractor currently performing the overall plant upgrade at Academy Creek.  All four quotes were provided using the same VFD model.  Pump and Process Equipment’s quote was the lowest apparent bid as seen on the memo provided to the committee.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract to Pump and Process Equipment for the replacement of 4 VFDs at the Academy Creek influent pumping station in the amount of $91,988.00.”

 

  1. North Mainland Water Loops Engineering Contract Award – A. Burroughs

Mr. Burroughs provided that in the North Mainland District, there are existing areas within the water system that are isolated and challenged to provide adequate pressure on a continuous basis for the daily water demand in an event of a water main break.  Cross connecting within the water system by looping will increase coverage for critical fire protection and allow for residential and commercial owners to have reliable and ample access to a dependable water source managed by the JWSC.  Design and construction management services are needed at this time to meet the next overall project milestone.  Mr. Burroughs described the three project locations where the loops will be designed:

  • Approximately 1,100 LF of proposed water line loop on Hautala Drive connecting existing 12-inch on Cate Road to existing 16-inch on Old Jesup Road.
  • Approximately 1,100 LF and 3,000 LF of proposed water line loop on Bailey Road and Old Jesup Road connecting existing 12-inch Perry Lane Road to existing 8-inch stub out near the intersection of Old Jesup Road/New Jesup Road and 16-inch stub out near the intersection of Lillie Way/Old Jesup Road.
  • Approximately 500 LF of proposed water line loop connecting existing 8-inch stub out on Millenium Blvd. to stub out near the intersection of Perry Lane Road/Venture Drive.

A three member panel with representation from JWSC Operations, Engineering, and the Senior Leadership teams reviewed and scored each of the 8 proposals received.  Four Waters Engineering, Inc. was the highest scoring proposal at 90.7.  Funding will come from the R&R Reserve Project Number 2103 as part of the 2021 Capital Projects Plan.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Engineering Services to Four Waters Engineering in the amount of $214,000.00 for North Mainland Water Loops Project.  Motion carried 3-0-0.

 

  1. PS4044 Engineering Contract Award – A. Burroughs

Mr. Burroughs advised the committee that JWSC had previously received an Unsolicited Proposal from a developer who was part-way through the engineering phase of their project and decided not to complete their project.  JWSC staff received an engineering and construction administration services proposal letter dated September 30, 2021, from Lovell Engineering Associates, PC which included the proposal request for funding and time in the Contract lump sum amount of $71,750.00 with the 145 days for design services and six months expected for construction duration.  The Engineering Consultant is responsible for quality and complete of bid-ready (permit approved) design package as requested by JWSC for construction project advertisement.  Mr. Burroughs noted the items included in the Scope of Services.  The Engineering Consultant shall assist the JWSC in securing, evaluating, and awarding the successful bid for the construction of the Project based upon the Construction Documents.  The Engineering Consultant shall also provide professional services during construction to assist in obtaining a complete project in accordance with the purpose and intent of the Construction Division.  Mr. Burroughs stated that after reviewing the proposal, staff recommended moving forward with an award to Lovell Engineering Associates, PC in the amount of $71,750.00.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission award a contract for Engineering Services to Lovell Engineering Associates, PC in the amount of $71,750.00 for Pump Station 4044 Rehab Project.  Motion carried 3-0-0.

 

  1. Leak Adjustment – A. Burroughs

Mr. Burroughs provided that the UGA Marine Extension Service requested a leak adjustment due to a water leak at their offices located at 715 Bay Street. They did have Rooter Express repair the leak and their usage has returned to normal levels.  This location still has one of the older water meters, therefore JWSC was not able to forewarn them of the excess usage within 24 hours.  JWSC is replacing all water meters within the system as part of the current Meter Replacement Program, which will allow forewarning customers of excessive usage levels.  Staff has reviewed this leak adjustment request and has determined it should be granted to the customer in the calculated amount of $6,040.23.

Commissioner Cook made a motion seconded by Commissioner Turnipseed to move that the Finance Committee recommend the full Commission approve the leak adjustment in the amount of $6,040.23 to the account of Marine Extension Service as presented.  Motion carried 3-0-0.

  

DISCUSSION

  1. Financial Statements Month End September 30, 2021 – F. Wilson

Mrs. Wilson presented the financial statement for the month ending September 30, 2021.  As a first note, she mentioned that the Balance Sheet will have the corrected date at the next reporting period since the financial audit has now been completed, and then proceeded to review the Balance Sheet accounts highlighting current assets and liabilities.  It was noted that the Accrued Liabilities were at the current level of $182,350 due to the group insurance claims that have not been filed or paid.  Mrs. Wilson also briefly reviewed line items such as operating revenues and operating expenses on the Combined Revenue Statement.  Mention was made regarding the vehicles on order that have lead times of 40 weeks or more, and their costs will remain in the encumbrance value until received.  Mrs. Wilson also reviewed the Supplemental Schedule of Cash Balances (which included a summary section as previously requested), the Project Report and Reserves.

 

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

 

There being no further business, Chairman Duncan adjourned the meeting at 3:40 p.m.

 

 

 

 

__________________________   _

Bob Duncan, Committee Chairman

Attest:

                                                __

Janice Meridith,

Executive Commission Administrator