Finance Committee Meeting Minutes – Wednesday, May 20, 2020

For your consideration, please read the minutes from the Finance Committee Meeting held on Wednesday, May 20, 2020 at 3:00 p.m. in the Commission Meeting Room.

Finance Committee Minutes 5-20-20 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, May 20, 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

Cornell Harvey, Commissioner

 John Donaghy, Chief Financial Officer

LaDonnah Roberts, Deputy Executive Director

Charlie Dorminy, Legal Counsel, H.B.S.

Janice Meridith, Commission Admin.

 ABSENT:                               

Tripp Stephens, Commissioner

 MEDIA PRESENT:               

Pamela Permar-Shierling

 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 April 15, 2020 Finance Committee Meeting

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

2. Minutes from the April 15, 2020 Finance Committee Executive Session

Commissioner Elliott made a motion seconded by Commissioner Duncan to approve the minutes from the April 15, 2020 Finance Committee Executive Session.  Motion carried 2-0-1. (Commissioner Stephens was absent from the meeting.) 

3. Contract Award – Engineering Services for Water & Sewer Master Plan Update – A. Burroughs

Commissioner Duncan commented that the Contract Award for Engineering Services for the Water & Sewer Master Plan Update had been discussed just earlier in the Facilities Committee Meeting.  Commissioner Elliott mentioned he had no further need to discuss it more and offered a motion.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee recommend increasing the budget amount for Project 2024 and awarding a contract for the Water and Wastewater Master Plan Update to Four Waters Engineering in the amount of $247,500.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.)

4. GEFA Loan Approval – A. Burroughs

Commissioner Duncan commented that he was also for the GEFA Loan Approval, and this item had been heard about earlier in the Facilities Committee Meeting.  He asked if any of the other Commissioners had additional questions or comments to make on it.  There were no additional comments offered.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move to recommend to the full Commission that the Chairman and Executive Director be authorized to execute and attest to the appropriate loan documents to execute GEFA Loan CW2019008 and to be so reflected on the attached Schedule “F”; and, also to move to recommend to the full Commission that the Chairman, Executive Director, Deputy Director and Director of Finance be authorized to sign for draws on GEFA Loan CW2019008. Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.) 

5. Leak Adjustment – A. Burroughs

Mr. Burroughs recalled for the Committee that according to the Glynn County Ordinances any leak adjustments totaling $2,000 or more are required to be approved by the full Commission.  He provided a brief background regarding the leak adjustment requested by Mr. Bob Brown for his residential usage.  There was a significant leak on the ¾”copper line coming into the home, which had already been repaired.  All of the necessary back-up documentation was provided for review.  The calculation once adjusted comes to $2,137.81 of which staff recommends adjusting back into Mr. Brown’s account.

Commissioner Harvey asked how long the customer had this leak. Mr. Burroughs responded based off of his usage it appears to be 2 months, June and July of 2019.  He noted that the usage amounts of 19,000 and 24,000 gallons for a residential customer is quite high. Commissioner Cook commented that this was the kind of issue that, when the new meters are in, will be flagged.  Mr. Burroughs added that is correct and with the new metering system, we would be able to contact the customer to advise of the high usage and recommend they investigate the issue.  Chairman Turnipseed asked how many leak adjustments are done each month, and Mr. Burroughs replied about 20 or so per month.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee recommend approval of the leak adjustment in the amount of $2,137.81 to the account of Mr. Bob Brown, and to forward this item to the full Commission.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.) 

6. Appointment of Auditor – J. Donaghy

Mr. Donaghy recalled for the Commissioners that in previous meetings the appointment of an auditor has been discussed, and that the audit is coming up for the fiscal year ending June 30, 2020.  He noted that in 2017 a Request For Proposal was placed for auditing services for 3 fiscal years.  Mauldin & Jenkins was awarded that contract at a cost of $19,900 per year for the fiscal years of 2018, 2019 and then this fiscal year ending June 30, 2020.  Mr. Donaghy provided the engagement letter from Mauldin & Jenkins, their original proposal, a timeline of the work to be done during the audit, and also a scope of services that will be performed.  Commissioner Elliott commented that he wanted to add a meeting for the Commissioners to discuss the audit with the auditor and address any questions the Commissioners may have. Mr. Donaghy noted that the auditing firm does prefer to have a meeting with the Governing Body or the organization as well.  After a brief discussion on timing, the Commissioners decided to request the auditing firm to be present for the second Commission meeting in July in order to meet prior to the audit, and then arrange a another meeting after the audit to discuss the results.  Commissioner Harvey asked if Mauldin & Jenkins has performed well, and Mr. Donaghy had provided that they had been on time each year.

Commissioner Elliott made a motion seconded by Commissioner Duncan to move that the Finance Committee recommend that the JWSC Commission 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, 2020 at a cost of nineteen thousand nine hundred ($19,900.00) dollars.  Motion carried 2-0-1.  (Commissioner Stephens was absent from the meeting.) 

DISCUSSION

1. Timing of Capital Fee Payments – A. Burroughs

Mr. Burroughs advised that for the past couple of months the timing of Capital Fee Payments for new construction has been discussed.  Currently the Capital Fee Payments are due at the time of construction plan approval.  There has been discussion to move that requirement to the time of building permit approval.  Staff has discussed adding a note on the final plat with the County.  The note would state that if Capital Fees have not been paid there will be no guarantee of capacity until that fee is paid.  Mr. Burroughs noted that Charlie Dorminy has discussed this issue with the County’s attorney, and asked him to share what was discussed.

Mr. Dorminy gave a brief history from 2015-2016 involving the lack of sewer capacity where there were already plats, leaving developers without access to the System.  That issue was addressed by requiring the developers to pay the Capital Fees up front upon plat approval, which then makes those funds available for necessary System improvements. The County is concerned that if JWSC goes back to putting the payment of Tap Fees on the building permit, and JWSC does not accept the Tap Fees, then the County cannot issue the building permit.  The County has concerns that JWSC may be going back to the old way of doing business, and the County would rather keep it as it is now.

Mr. Burroughs added that JWSC can present this to the County Commission to consider a policy change, and a plat note can be added if approved by the County Commission. Commissioner Elliott asked what the note would say, and Mr. Burroughs responded that the plat note would say, “Water and sewer capacity is not guaranteed until payment of the Capital Improvement Fees to JWSC.”

Commissioner Duncan commented he would prefer the statement to be noted in a more positive way.  He then referenced JWSC asking the County to change a policy, and Mr. Burroughs provided that this would be a change to the plat, which is a County owned document.  Commissioner Duncan remarked that JWSC could make a change to its own policy, and could also issue a letter to the developer, whether it is for one lot or multiple lots.  He suggested that letter could state the requirements and that when capacity is reserved or guaranteed is independent of the County or the City, then each governing agency could choose to adjust their policy if they wish; but JWSC could initiate a policy change independently.  Mr. Burroughs advised that it had also been discussed that if the note was on the plat, and then were there any legal dispute later, the plat note would be helpful; but JWSC does not have to have the plat note to move forward, the letter would be helpful too.

Commissioner Elliott asked if the plat note was referenced in the Ordinance which said capacity was guaranteed with the plat.  Mr. Burroughs responded no, that the Rate Resolution says requested capacity reserved at the payment of Capital Fees.  Commissioner Elliott recalled that the Developers would get plats, but then did not want to pay the Fees, and that he understood that; but JWSC needs to avoid the situation where capacity is being guaranteed to everyone and then one day finding out there is no capacity.  Commissioner Duncan added that JWSC wants to avoid exceeding our capacity even though it is not actually consumed or used, but is committed.  Mr. Burroughs commented that in 2016 there were capacity restrictions which have since been alleviated, much work has been done to correct those issues.  This discussion pertaining to Timing of Capital Fee Payments will be continued, as the Commission wants to improve situations for, especially the smaller developers to be able to do business and have capacity available to build their homes.

2. Financial Statements Month End April 30, 2020 – J. Donaghy

Mr. Donaghy highlighted the Financial Statements for the month ending April 30, 2020 with the Finance Committee.  First he discussed the Balance Sheet and noted the Accounts Receivables Balance.  He also referenced and reviewed a spreadsheet of data regarding the Daily Receivables Balances for February, March, April and May of 2020.  The receivables have been increasing due to the Coronavirus Pandemic and JWSC is attempting to help customers with payment plans, avoiding cut-offs, etc. Mr. Donaghy answered various questions the Commissioners had and discussed particular details on the Supplemental Schedule of Cash Balances, Combined Revenue Statement, Financial Project Report and Detailed Revenue and Expenses.

EXECUTIVE SESSION – Personnel

Commissioner Elliott made a motion seconded by Commissioner Duncan to add an item to the agenda, Executive Session for discussion of Personnel.  Motion carried 2-0-1.  (Commissioner Stephens was absent for the vote.)

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 4:00 p.m.