Finance Committee Meeting Minutes – Wednesday, April 15, 2020
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, April 15, 2020 at 3:00 p.m. in the Commission Meeting Room.
Finance Committee Minutes 4-15-20 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, April 15, 2020 at 3:00 PM
FINANCE COMMITTEE MINUTES
MEMBERS PRESENT:
Bob Duncan, Committee Chairman
Donald Elliott, Commissioner
Andrew Burroughs, Executive Director
ALSO PRESENT:
Ben Turnipseed, Commission Chairman
Charles Cook, Commissioner
John Donaghy, Chief Financial Officer
LaDonnah Roberts, Senior Financial Analyst
Janice Meridith, Executive Commission Admin.
ABSENT:
Tripp Stephens, Commissioner
MEDIA PRESENT:
None Present
Chairman Duncan called the meeting to order at 3:00 PM.
PUBLIC COMMENT PERIOD
There being no citizens that wished to address the committee, Committee Chairman Duncan closed the Public Comment Period.
APPROVAL
- Minutes from the March 18, 2020 Finance Committee Meeting
Commissioner Elliott made a motion seconded by Commissioner Duncan to approve the minutes from the March 18, 2020 Finance Committee Meeting. Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.)
- Contract Award – Landscaping Services – A. Burroughs
Mr. Burroughs recalled that in the budgeting process it was discussed that the landscaping services would again be contracted to an outside source. Even though it is budgeted for this next fiscal year, these outside services will begin as soon as is practical. JWSC has 186 locations requiring cutting/mowing. There were two bid submissions received. Coastal Greenery, LLC was the highest scoring and lowest cost bidder. This will be a one year contract with up to four one year renewals. All of the pump station properties will be cut once per month, the waste water plants will be maintained every two weeks, the water towers will be serviced once per month, and the administration building property will be maintained once per week.
Commissioner Duncan asked if this contract includes application of herbicides and such, Mr. Burroughs responded that in some locations it does, and also at the administration building it includes the straw that is placed in various areas. Coastal Greenery is certified to apply herbicides/pesticides.
Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee forward this item to the full Commission with a recommendation that the full Commission approve the award of a contract for Facilities Landscaping Services for the JWSC be awarded to Coastal Greenery, LLC, in the annual amount of $184,689.00. Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.)
- Fiscal Year 2021 Rate Resolution – L. Roberts
Mrs. Roberts presented the proposed Rate Resolution for Fiscal Year 2021 to the Finance Committee. She reminded the Committee that the full Commission had previously approved the budget for FY 2021. The Rate Resolution is a complement to the budget each year, and includes the water and sewer rates as well as other fees that are charged within the organization. Mrs. Roberts noted that the staff does review the Rate Resolution each year to determine if there are any redline revisions to be made to the document and then presents it to the Commission for review and approval. Mrs. Roberts reviewed and explained in detail all of the redlined revisions that were suggested by staff for the FY 2021 Rate Resolution.
Commissioner Duncan asked if the City of Brunswick has a similar process as Glynn County, as noted under section VIII (Meter Replacement Costs), letter (b). Mr. Burroughs responded that they do, and Mrs. Roberts provided that she would include that revision to add “the City of Brunswick” in that section.
After Mrs. Roberts concluded her review of the proposed Rate Resolution, in which there were no increases to the water and sewer rates, a motion was made and a vote taken.
Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the JWSC Finance Committee accept the attached Rate Resolution for the fiscal year ending June 30, 2021 and recommend its approval by the JWSC Commission subject to any revisions made necessary by comments from the City of Brunswick or Glynn County. Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.)
DISCUSSION
- Meter Financing Options – A. Burroughs
Mr. Burroughs recalled for the Committee that at the last Facilities and Finance Committee Meetings the subject of awarding the Meter RFP to Delta Municipal Services with an estimated cost for the full installation of the 30,000 meters to be approximately $15M was discussed. Funding for this Project was also a matter of discussion at those meetings. Mr. Burroughs provided a spreadsheet detailing out four options available for this funding. He noted that this will be a four year install for these 30,000 meters, therefore approximately 25% of the costs would be going in each year. Out of the four options presented, Mr. Burroughs commented that the best option was to take a 15 year GEFA Loan with a four year staggered draw, and this loan would apply to reducing drinking water loss and considered conservation eligible. This provides for the borrower to have a whole percentage point taken off the loan, and are currently at 0.57%. Mr. Burroughs then reviewed the details of the funding, payback and time periods in that option. All four options were calculated through the year 2035. The next option discussed was utilizing a 10 year GEFA Loan with a 4 year staggered draw at 0.50%. Third the “Pay As You Go” option was reviewed and explained, with the details of the 15 Year Public Offering at 2.50% being the last option presented. The Committee discussed these various options further with Mr. Burroughs, as well as discussing details of GEFA Loans.
- Financial Statements Month End March 31, 2020 – L. Roberts
Mrs. Roberts highlighted the Financial Statements for the month ending March 31, 2020 with the Finance Committee. She began with the Balance sheet and noted that the Net Position has increased $1.1M since the February statements with the two largest contributors to that increase being a $375K SPLOST payment received and some construction in progress that has increased by about $500K. The Receivables are relatively staying low overall at the time of this statement, which was March 31, 2020, however the Receivables have been increasing during the Coronavirus Pandemic. Staff is reaching out to customers who are on payment arrangements and seeing what can be done to help keep them on their arrangements during this time. It is realized that there will be some customers who may have to go on payment arrangements once the pandemic is over and business returns to normal. The Cash Balances page was briefly reviewed next, with the Combined Revenue Statement following. The Project Report was then briefly discussed concluding the review of the Financial Statements.
EXECUTIVE SESSION – Personnel
Commissioner Elliott made a motion seconded by Commissioner Duncan to enter into Executive Session to discuss Personnel. Motion carried 2-0-1. (Commissioner Stephens was absent for the vote.)
Return to Regular Session
Commissioner Elliott made a motion seconded by Commissioner Duncan to adjourn from Executive Session. Motion carried 2-0-1. (Commissioner Stephens was absent for the vote.)
There being no further business, Chairman Duncan adjourned the meeting at 3:54 p.m.