Finance Committee Meeting Minutes – May 17, 2017
For your consideration, please read the minutes from the Finance Committee Meeting held on May 17, 2017:
Finance_Committee_Meeting_Minutes_w_Attachments_5-17-2017
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, May 17, 2017 at 2:00 PM
FINANCE COMMITTEE MINUTES
PRESENT:
Donald M. Elliott, Chairman
Steve Copeland, Commissioner
Mike Browning, Commissioner
Jimmy Junkin, Executive Director
John Donaghy, Chief Financial Officer
ALSO PRESENT:
Thomas Boland, Deputy Director
Charles Dorminy, Legal Counsel
Jay Sellers, Public Information Officer
Chairman Elliott called the meeting to order at 2:00 PM.
PUBLIC COMMENT PERIOD
There being no citizens that wished to address the Committee, Chairman Elliott closed the Public Comment Period.
APPROVAL
- Minutes from April 19, 2017 Finance Committee and Compliance & Legislative Committee – Combined Meeting
Commissioner Copeland made a motion seconded by Commissioner Browning to approve the minutes from the April 19, 2017 Finance Committee and Compliance & Legislative Committee Combined Meeting. Motion carried 3-0-0.
Pump Station 4048 Construction Award – T.B. Landmark – C. Free / P. Crosby
Christa Free presented the recommended Award for the Pump Station 4048 Force Main Improvements Construction Project to the Committee for approval to move forward to the full Commission. She gave the background information regarding the planned construction of a new twenty-four inch force main along Lee and Fifth Streets in the City of Brunswick, which is the first step to address the North Mainland Sewer Capacity issues. Christa advised that the Invitation For Bid for Lift Station 4048 Force Main Improvements project was released on Friday, March 24, 2017, and that a Pre-Bid meeting was held on Wednesday, April 5 with six firms in attendance. After pre-qualification requirements were met, bids were received from three of those firms on Wednesday, May 10, 2017. Staff recommended making a contract award for construction to the apparent low bidder, TB Landmark Construction, Inc., in the amount of $1,478,103.00. Pipe and associated fittings for this project were pre-purchased by JWSC and are due to arrive beginning the week of June 26, 2017. Construction is anticipated to start in early to mid-July with a project schedule of one-hundred twenty (120) days to completion.
Commissioner Browning made a motion seconded by Commissioner Copeland for the proposal to be forwarded to the full Commission for approval to be granted to award the contract for construction to T.B. Landmark Construction, Inc. for the Lift Station 4048 Force Main Improvements, Project No. 701 in the amount of $1,478,103.00. Motion carried 3-0-0.
- Appointment of Auditor – J. Donaghy
John Donaghy presented the recommendation for the selection of auditor to the Committee for approval to move forward to the full Commission. He advised that the JWSC issued a Request For Proposal for Auditing Services on April 2, 2015 and that the firm of Mauldin & Jenkins was selected for the initial year ended June 30, 2015 with two option years. John also noted that Mauldin & Jenkins has performed the year-end audit of the JWSC for 2015 and 2016, and that the audit for June 30, 2017 will be the final option year. With the JWSC following the policy of changing auditing firms every three years, an RFP for Auditing Services will be released by the JWSC in the spring of 2018. Staff recommended engaging the firm of Mauldin & Jenkins to perform the financial audit of the Brunswick-Glynn County Joint Water and Sewer Commission for the fiscal year ending June 30, 2017 at a cost of $24,900.00.
Commissioner Copeland made a motion seconded by Commissioner Browning to move that the JWSC engage the accounting firm of Mauldin & Jenkins to perform the financial audit of the Brunswick-Glynn County Joint Water and Sewer Commission for the fiscal year ending June 30, 2017 at a cost of $24,900.00, the Chairman, Executive Director and Director of Administration be authorized to sign the necessary documents, and that this recommendation be forwarded to the full Commission for approval. Motion carried 3-0-0.
- BGJWSC Delinquent Payment Policy – J. Donaghy
John Donaghy presented the recommended BGJWSC Delinquent Payment Policy to the Committee for approval to move forward to the full Commission. He began by explaining the details of the chart on page 3 within the policy package as presented to the Committee, which depicted the Receivables, including those current, over 30, 60, 90 and 120 days past due, for June 30th of each fiscal year of the JWSC since the first year beginning January 1, 2008. John noted to the Committee that based on the numbers the “write off” regarding the Bad Debt for the current fiscal year will be about $900,000.00 for the JWSC. He then moved on to explain various sections of the BGJWSC Delinquent Payment Policy as proposed, including defining when an account becomes delinquent and the manners in which an account may be brought into good standing. John discussed promissory notes and the methods of determining guidelines for payment plans on delinquent accounts. Finally noted were the consequences of defaulting on the promissory notes for delinquent accounts. The Committee fully discussed the details and issues regarding the proposed Delinquent Payment Policy, along with the frameworks that it gives to the Customer Service Department in providing solutions for customers who are past due with their accounts.
Commissioner Browning made a motion seconded by Commissioner Copeland to move the BGJWSC Delinquent Payment Policy to the full Commission for approval. Motion carried 3-0-0.
DISCUSSION
- Proposed Rate and Fees Structure – J. Donaghy
John Donaghy discussed the proposed rate and fees structure with the Committee. He displayed portions of the draft for the Water and Wastewater Rates and Charges for July 1, 2017 to June 30, 2018, and detailed the various fees and what organizational expenses they contribute to. John continued on to brief the Committee on sections of the drafted document and noted revised areas. The Schedule of Fees and Charges of the draft were reviewed and discussed, with new fees noted and explained. The Plan and Construction Fee Schedule was also mentioned. The document as presented to the Committee is a draft form and the proposed Budget and Rate Structure will be presented at two Town Hall Meetings, before being finalized and presented to the full Commission for approval.
- February End of Month Financial Comparative – J. Donaghy
John Donaghy presented the financial end of month report for April 2017 to the Committee. He noted a few specifics on the Balance Sheet, such as the Bond Sinking Fund and the month end balance of almost $26M, which is being accumulated in order to make a June 1st payment to the Bond Trustee. Also mentioned was the reduction of the JWSC Reserves from over $16M to just under $13M, and the increase of Construction in Progress from $3.3M to just over $9M since June 30, 2016. John then briefly noted the details of the Supplemental Schedule of Cash Balances along with the Revenues and Expenditures for the Fiscal Year of 2017 with a final mention of Net Revenues over Cash Requirements of $2.4M with Encumbrances of $2.142M, leaving a balance of only $257K which is very close to breakeven for the Fiscal Year ending 2017. John closed with notations of details of the Project Report for 2016-2017.
EXECUTIVE DIRECTOR’S UPDATE
There was no additional update at this time.
Meeting was adjourned at 3:20 p.m.