Finance Committee Meeting Minutes – Wednesday, August 17, 2022
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, August 17, 2022 at 3:00 p.m. in the Commission Meeting Room.
Finance Minutes 8-17-22 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, August 17, 2022 at 3:00 PM
FINANCE COMMITTEE MINUTES
MEMBERS PRESENT:
Bob Duncan, Committee Chairman
Charles Cook, Commissioner
Tripp Stephens, Commissioner
Andrew Burroughs, Executive Director
ALSO PRESENT:
Ben Turnipseed, Commission Chairman
LaDonnah Roberts, Executive Deputy Director
David Owens, Director of Finance
Frances Wilson, Accounting Manager
Janice Meridith, Executive Commission Administrator
Committee Chairman Duncan called the meeting to order at 3:00 PM.
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
- Minutes from the July 20, 2022 Finance Committee Meeting
Commissioner Cook made a motion seconded by Commissioner Stephens to approve the minutes from the July 20, 2022 Finance Committee Meeting. Motion carried 3-0-0.
- Banking Signature Card & Authorization Changes – L. Roberts
Mrs. Roberts introduced Mr. David Owens to the members of the Finance Committee. Mr. Owens has accepted the position and responsibilities of the Director of Finance for JWSC. This necessitates adding him to the Truist banking signature and authorization cards, as well as the JWSC investment accounts at Synovus.
Commissioner Stephens made a motion seconded by Commissioner Cook to move that the Finance Committee recommend the full Commission approve that the Chairman and Vice-Chairman of the JWSC continue to be authorized to execute the necessary banking resolution and signature cards with Truist Bank, and that the Chairman, Vice-Chairman, Executive Director, Deputy Executive Director and Director of Finance to be authorized signatories on the Truist bank accounts and Synovus Investment accounts of the JWSC. Motion carried 3-0-0.
- Annual Flood Insurance Renewal – L. Roberts
Mrs. Roberts advised that the annual renewal date for flood insurance is July 31. McGinty-Gordon & Associates provides broker services for this coverage in addition to the liability and property coverages which were approved for renewal by the Board at the March 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 cost perspective. No recommendations for changes in coverage have been made as a result of this year’s review. McGinty-Gordon & Associates has conducted the proposal process and received premium quotes. After successful negotiations, the current insurers offered the best rates so no changes in the insurer will be needed.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission approve flood insurance renewal rates as listed in the attached memo provided by staff. Motion carried 3-0-0.
- Financing Resolution VacCon Trucks (4) Lease/Purchase– A. Burroughs
Mr. Burroughs recalled for the Committee that as part of the fiscal year 2023 budget process, approval was granted to JWSC staff to purchase (4) VacCon Trucks from Adams Equipment to replace the existing vacuum truck fleet. The cost of the (4) vacuum trucks includes a trade-in value of $125,000.00 for each unit with a net total finance amount of $1,458,992.00. Authorization was given to staff to pursue available finance options. Staff solicited proposals for financing options from Adams Equipment, Key Government Finance, and Truist Financial Corporation. The rates and terms received were provided for the Committee to review. As part of the loan documentation required for closing, a formal resolution with the specific language required is requested. Legal counsel has completed a review of the resolution and staff recommends that JWSC move forward with the financing of (4) VacCon vacuum trucks through Truist Financial Corporation. The rates provided by Truist are the lowest and JWSC has had good success in the execution and administration of lease agreements with their organization in the past. Commissioner Stephens inquired about the actual useful life of vacuum trucks as well as maintenance costs of the current JWSC owned VacCons as compared to the cost of new equipment. Mr. Burroughs stated he will bring more research information on the useful life of VacCons and breakeven points for purchases to the Commission meeting scheduled for the following day.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend the full Commission approve the financing resolution in the amount of $1,458,992.00 on a 5-year term rate with Truist Financial Corporation as listed in the attached provided by staff. Motion carried 3-0-0.
- Pump Station 4044 Property Acquisition – A. Burroughs
Mr. Burroughs advised that this item was presented earlier in the Facilities Committee Meeting. He noted that Pump Station 4044 is in need of rehabilitation and that the current location is not suitable. Since the neighboring landowner refused negotiation to sell additional land to suit the rehabilitation, JWSC staff proposed relocating the station to a parcel to the immediate east of the existing parcel, owned by PrimeSouth Bank. An appraisal and survey were obtained. The new parcel will consist of .029 acres and will include an access easement through the parking lot of Prime South Bank. The parcel is already encumbered by existing easements which will benefit the proposed use and diminishes the appraised value. The appraised value was found to be $4,725. JWSC staff recommends purchasing the parcel from PrimeSouth at the appraised value. The current wet well will be converted to a manhole. The pump station will be relocated, and a nearby grinder station is to be converted to gravity main.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Brunswick-Glynn Joint Water and Sewer Commission Finance Committee forward to the full Commission the deed and appraisal with a recommendation for approval and authorization of the Chairman to execute any and all documents necessary to complete the purchase. Motion carried 3-0-0.
DISCUSSION
- Employee Retention Bonus – A. Burroughs
After a brief discussion at last month’s meeting, Commissioner Cook requested for the Committee to further discuss the subject of employee retention bonuses. This was an opportunity for the Commissioners to share their experiences, knowledge and thoughts on the subject for a general discussion and possible future consideration.
- Financial Statement Month End July 31, 2022 – F. Wilson
Mrs. Wilson presented the financial statement for the month ending July 31, 2022. She recalled for the Committee that the annual financial audit is in process and there are still adjustments to be made, encumbrances, and other items affecting the final numbers for the end of the fiscal year reporting. She reviewed the Balance Sheet with the Committee noting that this is a strong balance sheet. The Prepaid Expense, Fixed Assets, and Unearned Revenue accounts were noted, and she also highlighted details on the Summary of Revenues and Summary of Expenses. Mrs. Wilson briefly reviewed line items on the Cash Balances and the Project Report, as well as providing an update on Investments.
Committee Chairman Duncan asked if there were any other items to discuss.
There being no further business, Chairman Duncan adjourned the meeting at 4:01 p.m.