Finance Committee Meeting Minutes Wednesday, February 19, 2020

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, February 19, 2020 at 3:00 p.m. in the Commission Meeting Room.

Finance Committee Minutes 2-19-20 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, February 19, 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

Steve Copeland, Commissioner                                               

John Donaghy, Chief Financial Officer

LaDonnah Roberts, Senior Financial Analyst

Janice Meridith, Executive Commission Admin. 

ABSENT:                               

Tripp Stephens, Commissioner 

MEDIA PRESENT:               

Pamela Permar-Shierling, The Islander

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

1. Minutes from the January 15, 2020 Finance and Human Resources Committee Meeting

Commissioner Elliott made a motion seconded by Commissioner Duncan to approve the minutes from the January 15, 2020 Finance and Human Resources Committee Meeting.  Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.)

2. Liability and Property Insurance – Fred McGinty, McGinty Gordon Associates

Fred McGinty of McGinty Gordon Associates presented the committee with a package containing a spreadsheet of the 2020-21 Premium Summary if JWSC were to remain with AmGuard on the Liability Insurance Package, and a second spreadsheet with the 2020-21 Premium Summary if JWSC were to change to Travelers on the Liability Insurance Package.  The total premium costs were less with Travelers and JWSC has experienced lengthy response times on claims AmGuard, which also affected the decision to change to Travelers.  On the Property Insurance JWSC will remain with Ace American Insurance Company.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee forward the insurance renewal proposals as presented in this memo to the full Commission for their approval.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.)

Mr. McGinty offered to go back to Travelers and request the premium costs on Auto Liability with higher deductibles than $1,000 in case of additional savings.  The Committee requested he obtain premiums for $2,500 and $5,000 deductibles per occurrence for consideration.

3. 2020 Capital Projects Plan – A. Burroughs

Mr. Burroughs advised that the 2020 Capital Projects Plan had been presented and discussed earlier in the Facilities Committee Meeting.  He gave a brief review of the Project Plan and details discussed.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee recommend approval of the attached 2020 Capital Projects Plan to the full Commission.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.)

DISCUSSION

1. Fiscal Year 2020 Audit – L. Roberts

Mrs. Roberts recalled for the Committee that each year the Commission engages the services of an auditing firm for the fiscal year audit.  In 2018 Mauldin & Jenkins was selected for their auditing services through the RFP process.  The contract for FY 2018 also included 2 option years (FY 2019 and 2020).  She noted that it is staff’s intention to come back to the Finance Committee to recommend exercising the FY 2020 option year with Mauldin & Jenkins.  When the recommendation was brought forth last year, the Committee requested additional time to have the opportunity to ask any questions or have any concerns addressed.  A packet was provided to the Committee containing the Engagement Letter from FY 2019 and some Excerpts from Mauldin & Jenkins’ Original RFP Response for their review.  Commissioner Elliott recalled that the last audit resulted in Mauldin & Jenkins advising that JWSC needed to combine the Finance Policies and Procedures together into one document, and asked if that had been done.  Mrs. Roberts confirmed that this had been done and previously brought before the full Commission.  Commissioner Elliott stated that he would for that to be brought to the auditor’s attention this year in the case they may have any recommendations on the process.

2. Financial Statements Month End January 31, 2020 – J. Donaghy

Mr. Donaghy reviewed the financial statements for the month ending January 31, 2020 with the Committee and advised that this report contains the first 7 months of the current fiscal year.  First he noted account balances on the Balance Sheet and changes from December 31, 2019 to January 31, 2020.  On the Supplemental Schedule of Cash Balances Mr. Donaghy reviewed the various account balances and reserve balances.  The Combined Revenue Statement and notations were made comparing revenues and expenses.  The Project report was discussed relating to various budgets and costs, along with reserve balances on the Reserve Balance Summary.  As a final section for discussion and review in a more detailed perspective the Detail Revenue and Expense report was briefly reviewed.

Committee Chairman Duncan requested to add the Smoke Testing Presentation to the end of the agenda.

Commissioner Elliott made a motion seconded by Commissioner Duncan to add the Smoke Testing Presentation to the agenda.  (Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.)

PRESENTATION

Mainland Smoke Testing Project Results – Dr. Frederick Bloetscher, President Public Utility Management and Planning Services, Inc.

Public Utility Management and Planning Services, Inc. was contracted by JWSC to smoke test a series of lift station basins, review the pipes in the JWSC pump station service areas, and provide a recommendation for repairs for any defects found.  The goal of the investigation was to determine where inflow and infiltration are present in the gravity system for each lift station.  Dr. Bloetscher provided the Commission with a thorough presentation and report on the condition of the mainland sewer system along with their recommendation for repairs.

There being no further business, Chairman Duncan adjourned the meeting at 4:15 p.m.