Finance Committee Meeting Minutes – Wednesday, May 18, 2022
For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, May 18, 2022 at 3:00 p.m. in the Commission Meeting Room.
Finance Minutes 5-18-22 with Attachments Facilities Minutes 5-18-22 with Attachments
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Brunswick-Glynn Joint Water & Sewer Commission
1703 Gloucester Street, Brunswick, GA 31520
Commission Meeting Room
Wednesday, May 18, 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
Frances Wilson, Accounting Manager
Charlie Dorminy, HBS Legal Counsel
Janice Meridith, Executive Commission Administrator
Committee Chairman Duncan called the meeting to order at 3:08 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.
Commissioner Cook made a motion seconded by Commissioner Stephens to move Approval Item #3 to the Discussion Section as Item #3. Motion carried 3-0-0.
Commissioner Cook made a motion seconded by Commissioner Stephens to add “Employee Compensation Study and Open Positions” as Discussion Item #4. Motion carried 3-0-0.
APPROVAL
- Minutes from the April 20, 2022 Finance Committee Meeting
Commissioner Cook made a motion seconded by Commissioner Duncan to approve the minutes from the April 20, 2022 Finance Committee Meeting. Motion carried 2-0-1. (Commissioner Stephens abstained as he was absent from that meeting.)
- GEFA Loan Agreement Modification – Meter Project – L. Roberts
Mrs. Roberts presented the request for approval of a modification to the GEFA Loan Agreement and provided a brief background of the loan. On December 17, 2020 the Commission approved a Georgia Environmental Finance Authority (GEFA) loan in the amount of $7.5M for systemwide replacement of existing BGJWSC water meters as well as installation of advanced metering infrastructure. Mrs. Roberts noted that this loan modification increases the loan amount from $7.5M to $18.2M. During the initial loan application process GEFA required loan recipients to draw loan funds down within a two-year time limitation. As a result, BGJWSC divided the full project of $15M into two phases of $7.5M per phase. The original loan funded the first phase, and a portion of this modification funds the remaining $7.5M. Mrs. Roberts stated that additionally, during performance of the first phase of work, some unanticipated meter configurations were encountered by the contractor. Therefore, a full system audit was performed to determine prevalence of these types of installations in an effort to formulate comprehensive labor and material needs for the total project. Data from the audit supported an additional funding request of $3.2M which was approved by the Board at the November 2021 meeting. That $3.2M is the remainder of the increase funded by this loan modification. Mrs. Roberts advised that the initial interest rate of 0.07% and the initial term of fifteen (15) years remain unchanged. The original Completion Date was stated as May 1, 2023, and that has been extended to May 1, 2025.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend that the full Commission approve the modification for time extension and additional funding for GEFA Loan DW2020040 in the form of the attached loan modification documents. Motion carried 3-0-0.
- Capital Improvement Fee – Connection Assistance Policy – A. Burroughs
This item was moved to the Discussion Section as Item #3.
- Fiscal Year 2023 Cityworks Enterprise License Agreement Renewal – A. Burroughs
Mr. Burroughs provided to the Committee that the JWSC utilizes a software program called Cityworks, owned by Azteca Systems, Inc. as an asset management and work order management system. Work orders completed by staff are tagged to the individual assets that are being worked on to generate information on expenses by asset location and overall asset type. JWSC also utilizes Cityworks for inventory management through the Storeroom add-on. Mr. Burroughs stated that each year, the JWSC has entered into an Enterprise License Agreement (ELA) with Azteca Systems for the ongoing subscription and maintenance of the Cityworks program, the Storeroom add-on, the CCTV add-on, and the mobile application add-on. Cityworks is a crucial part of the ongoing workflows for both inspections and maintenance activities for the JWSC field crews. Furthermore, he added, the information collected and analyzed from Cityworks assists management with future maintenance and replacement needs to ensure that JWSC capital funds are being allocated to the most impactful area. Cityworks is also where recordkeeping occurs in a storm event to expedite the completion of FEMA-related paperwork. Mr. Burroughs provided that this year’s ELA renewal does include an increase from the previous two years. The FY2021 and 2022 renewals were $42,000, and the increase for this year is $2,100, which is a 5% increase over the previous two fiscal years.
Commissioner Cook made a motion seconded by Commissioner Stephens to move that the Finance Committee recommend the full Commission approve the renewal of the Fiscal Year 2023 Cityworks Enterprise License Agreement with Azteca Systems, Inc. in the amount of $44,100.00. Motion carried 3-0-0.
DISCUSSION
- Deposit Refund Policy – L. Roberts
Mrs. Roberts provided the Committee with a discussion on the current practices for deposit refunds to customers in good standing with JWSC with regards to their payment history. She had redlined copies of the pertinent sections of the Rate Resolution and the Glynn County Ordinance to share the recommended changes to those two documents regarding the drafted Deposit Policy. Mrs. Roberts had surveyed six other utilities as to their deposit policies with the goal of JWSC’s policy having more uniformity with other similar utilities.
- Financial Statement Month End April 30, 2022 – F. Wilson
Mrs. Wilson presented the financial statement for the month ending April 30, 2022. She reviewed the Balance Sheet with the Committee noting that this is a strong balance sheet. She briefly explained the Prepaid Expense, Fixed Assets, and Unearned Revenue accounts. She also highlighted details on the Summary of Revenues and Summary of Expenses. Mrs. Wilson also briefly reviewed line items on the Cash Balances and the Project Report, as well as providing an update on Investments.
- Capital Improvement Fee – Connection Assistance Policy – A. Burroughs
Mr. Burroughs, Mr. Dorminy and the Committee reviewed the background and options for the Connection Assistance Policy in consideration. Mr. Burroughs and Mr. Dorminy will work on policy details such as length of time for loans JWSC will offer to customers with existing buildings currently on failing wells and septic systems.
Committee Chairman Duncan asked if there were any other items to discuss.
There being no further business, Chairman Duncan adjourned the meeting at 4:12 p.m.