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Finance Committee Meeting Minutes – Wednesday, March 20, 2024

Written by Janice Meridith on . Posted in Finance Committee Minutes.

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, March 20, 2024 at 3:00p.m. in the Commission Meeting Room.

Finance Minutes 3-20-24 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, March 20, 2024, at 3:00 PM 

FINANCE COMMITTEE MINUTES

MEMBERS PRESENT:         

Clayton Watson, Finance Committee Chairman

Charles Cook, Commissioner

Lance Sabbe, Commissioner

Andrew Burroughs, Executive Director                                               

ALSO PRESENT:                  

Ben Turnipseed, Commission Chairman

David Owens, Director of Finance

Frances Wilson, Accounting Manager

LaDonnah Roberts, Deputy Executive Director

Pam Crosby, Director of Procurement

Charlie Dorminy, HBS Legal Counsel

Janice Meridith, Executive Commission Admin.

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

PUBLIC COMMENT PERIOD

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

APPROVAL

  1. Minutes from the February 14, 2024, Finance Committee Meeting

Commissioner Cook made a motion seconded by Commissioner Sabbe to approve the minutes from the February 14, 2024, Finance Committee Meeting.  Motion carried 3-0-0. 

  1. FY25 General Liability Insurance Renewal – F. McGinty, Oakbridge Insurance / A. Burroughs

Mr. McGinty advised that this renewal is for General Liability Insurance only and does not include Property Insurance.  Property Insurance will be addressed at next month’s meeting. A review of the insured values, policy coverages, deductibles, and claims processed has been conducted to make any changes that would be more advantageous from either a risk or a cost perspective for each coverage category The proposed renewal does include the addition of deductibles for General Liability, Fire Damage, and Automobile Liability.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend the Brunswick-Glynn Joint Water and Sewer Commission approve insurance renewal rates for each coverage category and insurer as listed in the attached 2024 Liability Insurance Premium Summary.  Motion carried 3-0-0.

  1. Synovus Banking Resolution – D. Owens

Mr. Owens stated to the Committee that it is standard practice for the Brunswick-Glynn Joint Water & Sewer Commission to have five signatories for its banking and investment accounts, The Chairman, Vice-Chairman, Executive Director, Deputy Executive Director, and the Director of Finance. Periodically, due to changes in personnel, it is necessary to update our signature cards held by our Banking Services provider.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend the full Commission approve that the BGJWSC Chairman, Vice-Chairman, Executive Director, Deputy Executive Director, and Director of Finance be authorized as signatories for banking, investment, and merchant services and to sign the necessary signature cards.  Motion carried 3-0-0.

  1. Contract Award – Financial Auditing Services – D. Owens

Mr. Owens advised that the JWSC issued Request for Proposal No. 24-007 for Auditing Services on January 25, 2024. The period of performance for the services is an initial year for fiscal year ended, June 30, 2024, with two options thereafter.  Three proposals were submitted: Rushton, LLC $69,000 for all three years, $23,000 in year 1; CKH CPAs & Advisors, LLC $70,000 for all three years, $22,800 in year one; and Mauldin & Jenkins Certified Public Accountants $76,200 for all three years, $24,900 in year one. Each proposal was scored independently using an evaluation matrix by an internal three-person evaluation team. Factors considered in the evaluation included each firm’s ability to provide the requested services (35%), each firm’s reputation and relevant experience in the requested services (25%), timeline and implementation of services (25%), and pricing of the proposed services (15%). The unanimous decision from the individual and collective scoring was to award Mauldin & Jenkins the auditing services contract for the BGJWSC.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend the full Commission approve engaging the accounting firm of Mauldin & Jenkins to perform the financial audit of Brunswick-Glynn Joint Water and Sewer Commission for the fiscal year ending June 30, 2024, for twenty-four thousand nine hundred dollars ($24,900) with (2) one-year options at a total cost of twenty-five thousand four hundred dollars ($76,200) and twenty-five thousand nine hundred dollars ($25,900), respectively, per period.  Motion carried 3-0-0. 

  1. Academy Creek RAS and UV Upgrades – A. Burroughs

Mr. Burroughs advised that BGJWSC was awarded an ARPA grant for the installation of a UV disinfection system to replace the existing gaseous chlorine disinfection used at Academy Creek. The plant also needs new Return Activated Sludge (RAS) pumps to increase the flow rate of RAS through the facility. Due to years of failed screening equipment at the plant, there are numerous rags in the lines that continually clog up pumps. While increasing the flow rate, staff elected to have a chopper style pump installed to eliminate the need for consistent deragging of these pumps. To accommodate the larger pumps with chopper capabilities, a complete electrical system upgrade for RAS Stations 1 and 2 is also necessary.  Three (3) bids were submitted to JWSC on Wednesday, February 7, 2024, with the low bidder being Reeves Young, LLC in the amount of $5,780,000.  Staff recommended acceptance of an additive alternate for a canopy over the UV system of $80,000 to bring the suggested award amount to $5,860,000.  At the February Facilities Committee meeting, there were several questions about the project and staff was requested to look at ways to value engineer the project to reduce costs. Staff requested Reeves Young to price the reduction in scope to eliminate the work in the east side of the chlorine contact chamber only. This reduction will reduce a portion of the demolition, concrete, and bypassing requirements of the project while also shortening time onsite for the contractor. Reeves Young provided a cost reduction of $326,000.00 for this option. This would reduce the cost of the project to $5,534,000.00. The Engineer of Record, Goodwyn Mills Cawood, LLC, has provided a letter from Reeves Young concerning the reduction, a letter of recommendation, and a certified bid tabulation recommending award of this project to Reeves Young in the amount of $5,454,000. This amount does not include the canopy over the UV system.

Commissioner Ford made a motion seconded by Commissioner Cook that the Facilities Committee recommend awarding a contract to Reeves Young, LLC for the construction of the Academy Creek RAS and UV Upgrades in the amount of $5,534,000.  Motion carried 3-0-0.

  1. Academy Creek RAS and UV Upgrades – Construction Phase Services – A. Burroughs

Mr. Burroughs noted that the Engineer of Record for this project is Goodwyn Mills Cawood, LLC (GMC). Staff requested a proposal from GMC to perform construction administration and inspection services for the RAS and UV Upgrades project to coincide with the proposed award of the construction contract. GMC provided construction administration and inspection services for the most recent Academy Creek WPCF Upgrade project and has worked on projects previously with Reeves Young elsewhere in Georgia and South Carolina.  The proposal of $285,000.00 is a budgetary number and will be billed at hourly rates throughout the project as work is performed.  At the February Facilities Committee meeting, there were several questions about the project and requested staff look at ways to value engineer the project to reduce costs. As such, this item was deferred until a determination on the construction contract could be made. Through the value engineering process, savings in construction time were identified that has reduced the recommended budget for construction phase services to $269,000. This is a “Not-to-Exceed” budget.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend awarding a contract to Goodwyn Mills Cawood, LLC for construction administration and inspection services for the Academy Creek RAS and UV Upgrades in the amount of $269,000. Motion carried 3-0-0.

  1. Contract Award – Highway 17 North Pump Station – A. Burroughs

Mr. Burroughs provided that in November 2022, the BGJWSC acquired a parcel from Golden Shores MHP to construct a new pump station that would continue to serve Golden Shores MHP and would allow further expansion of sewer service along the Highway 17 North corridor to include adjacent parcels and areas across Highway 17. One bid for the construction was submitted to JWSC on Wednesday, February 21, 2024, from Popco, Inc., in the amount of $1,172,044.78. Construction firms that did not submit stated current workload as the primary reason for not participating. The low bid was reviewed by staff and deemed reasonable compared to recent projects of a similar nature.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend awarding a contract to Popco, Inc., for the construction of the Highway 17 North Pump Station in the amount of $1,172,044.78. Motion carried 3-0-0.

  1. Contract Award – PS 4105/4107 Force Main Improvements – A. Burroughs

Mr. Burroughs advised that BGJWSC operates two pump stations on the North Mainland to convey sanitary sewer from the areas around Exit 38 to the Academy Creek WPCF.  The existing force main from PS 4107 is 6” in diameter and terminates at the intersection of Cate Road and Perry Lane Road. The flow then proceeds through gravity sewer to PS 4105. The existing force main leaving PS 4105 is 8” in diameter and terminates at the intersection of Glyndale Drive and Old Jesup Road. Staff proposed increasing the force main diameters to 12” and relocating the termination of the PS 4105 force main to a manhole near the intersection of Crispen Boulevard and Eagles Pointe Drive. These improvements will significantly reduce the head on the pumps at these stations and improve flow capacities through the sites.  Two bids were submitted to JWSC on Thursday, February 27, 2024, with the apparent low bid from TB Landmark Construction, Inc., in the amount of $2,325,582.00. The low bid was reviewed by staff and deemed reasonable compared to recent projects of a similar nature. The remaining funding currently allocated for this project is $1,701,053 leaving a shortfall of $624,799.00.  The overages for this project will be funded from uncommitted Capital Improvement Fees.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend awarding a contract to TB Landmark Construction, Inc., for the construction of the PS 4105 and 4107 Force Main Improvements in the amount of $2,325,852.00. Motion carried 3-0-0.

  1. Contract Award – Palm Drive Water Main Improvements – A. Burroughs

Mr. Burroughs provided that The SPLOST 5 referendum included funding for water main improvements in Sea Palms. The BGJWSC has already improved the crossing at Colonial Drive in advance of the Frederica Road paving project completed by Glynn County. The crossing near North Windward will be completed as part of a cooperative project with the development of Greenside Villas. That project will need water access across Frederica Road and is located approximately 325 feet north of North Windward Drive. This system will be looped into the Sea Palms distribution system and provide the prescribed benefits. The remaining crossing is Palm Drive.  Staff solicited bids for the installation of JWSC-provided pipe across Frederica Road at Palm Drive and Shamgar, Inc., provided the lowest bid at $120,815. Upon realizing the scope of work required on this project was misunderstood Shamgar advised they were unaware that this work had to be completed at night due to traffic conflicts, and that they would need to consider whether they could complete the project for the bid amount. BGJWSC bid documents clearly stated on Page 4 that “this project will require night work”. Shamgar notified staff on Tuesday, March 12 that they would be unable to complete the project due to loss of dollars, and they retracted their bid. Frederica Road cannot be shut down during the daytime hours, so the entire project will be done at night. The second lowest bidder on the project was TB Landmark Construction, Inc. in the amount of $244,542.  The remaining funding currently allocated for this project is $140,892 leaving a shortfall of $103,650. The overages for this project will be funded from the R&R Reserve.

Commissioner Sabbe made a motion seconded by Commissioner Cook that the Finance Committee recommend awarding a contract to TB Landmark Construction, Inc., for the construction of the Palm Drive/ Frederica Road Water Main Crossing in the amount of $244,542.00. Motion carried 3-0-0.

  1. Equipment Purchase – PS 2001/2002/2033/2034 – A. Burroughs

Mr. Burroughs provided that BGJWSC has two (2) funded capital projects that address Pump Stations 2001, 2002, 2033, and 2034 Upgrades outlined in the most recent update to the BGJWSC Master Plan. Due to rapidly increasing construction costs, staff elected to manage these projects differently than a single traditional construction contract. BGJWSC will pre-purchase materials and let individual contracts for services as needed to complete the work. Internal staff may be used to complete work as availability allows. Staff solicited pricing from multiple vendors for bypass pumping, construction of high voltage and low voltage electric panels, and various electrical components needed for the rehab of these four pump stations. Total project funding for PS 2033/2034 is $1,400,000 and PS 2001/2002 is $1,350,000. A breakdown of requested purchase approvals by project code was provided for the Committee’s review.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend approving the purchases from Hydra Service, Inc., Georgia Power, Power & Pumps, Goforth Williamson, and World Electric as shown for the rehab of Pump Stations 2001, 2002, 2033, and 2034. Motion carried 3-0-0. 

  1. Lease Agreement – Canal Road Water Production Facility – A. Burroughs

Mr. Burroughs provided that JWSC staff is requesting to proceed with the funding to sublease a section of the airport property from the Glynn County Airport Commission (GCAC) for the future Canal Road Water Production Facility.  Funding is required for a sublease and future relinquishment of the existing site and additional property needed to build the Canal Road Water Production Facility improvements off Harry Driggers Boulevard, including a ground storage water tank and associated pump control building.  JWSC requests that an additional 100’ x 110’ property be acquired from the GCAC in addition to the existing site.  To prevent additional delays and ensure the GCAC airport property is acquired for the Canal Road Water Production Facility project, staff recommends authorizing the Chairman to execute the necessary documents to approve funding for the leasing of airport property.

Commissioner Cook made a motion seconded by Commissioner Sabbe that the Finance Committee recommend the full Commission authorize the Chairman to execute the necessary documents to approve funding for leasing of property from the Glynn County Airport Commission for the Canal Road Water Production Facility. Motion carried 3-0-0.

DISCUSSION

  1. FY2025 Organizational Budget Request – A. Burroughs

Mr. Burroughs presented the drafted FY2025 Organizational Budget Request to the Committee. 

  1. Financial Statement Month End February 29, 2024 – F. Wilson

Mrs. Wilson presented the financial statement for the month ending February 29, 2024. 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. 

Committee Chairman Watson asked if there was any further business to discuss.

Commissioner Sabbe made a motion seconded by Commissioner Cook to adjourn the Finance Committee meeting.  Motion carried 3-0-0.

There being no further business, Committee Chairman Watson adjourned the meeting at 4:30 p.m.