For your consideration please review the minutes from the Special Called Commission Meeting held on Thursday, June 29, 2017 at 2:00 pm in the Commission Meeting Room.

Special Called Meeting Minutes 6-29-2017 with Attachments (2)

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 and Sewer Commission

1703 Gloucester Street, Brunswick, GA 31520

Thursday, June 29, 2017 at 2:00 PM 

COMMISSION MINUTES

SPECIAL CALLED MEETING 

PRESENT:                             

Donald M. Elliott, Chairman

Clifford Adams, Commissioner

Michael Browning, Commissioner

Cornell L. Harvey, Commissioner

Steve Copeland, Commissioner

Dave H. Ford, Commissioner

Robert Bowen, Commissioner 

ALSO PRESENT:                 

Jimmy Junkin, Executive Director

Charlie Dorminy, Legal Counsel HBS

John D. Donaghy, Director of Administration & Finance

Todd Kline, Senior Engineer

Pam Crosby, Director of Procurement

Jay Seller, Public Information Officer                                                                               

Chairman Elliott called the meeting to order at 2:04 PM.

Chairman Elliott gave the invocation and also led the Pledge of Allegiance.

PUBLIC COMMENT PERIOD

Chairman Elliott opened the public comment period.  There being no citizens for public comment, Chairman Elliott closed the public comment period.

APPROVAL

1. Budget and Supporting Rate Schedule for Fiscal Year 2017-2017 – J. Donaghy

John Donaghy advised that the first item on the agenda contained 2 memos for review.  He first presented the Budget for the Fiscal Year of 2017-2018 to the Commission.  Mr. Donaghy displayed the Fiscal Year 2018 Changes for the Commission’s viewing, and mentioned these were the major changes.  First noted was the Staffing to improve service and operations. He listed positions proposed for addition to the staff and also reviewed a few positions that were recommended for elimination from the original budget and gave reasons for those changes. Mr. Donaghy then noted other changes such as Repair and Replacement Reserve increase, continued replacement of rolling stock and equipment, and increase in legal fees (due to recent lawsuits against BGJWSC) on the expenses side.  On the revenue side of the budget he noted items such as recovery of expenses related to development (Planning & Construction) and the Capital Improvement Fee increase up to $6,800.00 for full recovery of the associated costs.  Future years’ budget changes were noted: increase debt service on new borrowing, continued replacement of vehicles and equipment, increase staffing needs for compliance, changes in rate structure, planned annual increases in repair and replacement, building a contingency reserve, and BOE debt service charges (BOE = Board of Education). Mr. Donaghy gave a brief background of the recommendation by noting that the JWSC is required to adopt a budget by June 30 of each year.  In preparing this budget, JWSC staff prepares an expenditure budget and compiles statistical data relative to the customer base and usage.  This information is utilized by Stantec to determine the rates necessary to meet budget, adequately fund reserves, maintain debt coverage ratios and meet other financial management plans as determined by the JWSC.  The JWSC is required by the Operational Agreement to present a proposed budget to the City of Brunswick and to Glynn County by May 1 of each year for their review and comment.  Mr. Donaghy presented the attached one page budget summary and a twelve page detailed budget.  He then noted that the Finance Committee of the Brunswick-Glynn County Joint Water and Sewer Commission recommend approval of the Fiscal Year 2018 JWSC Budget in the amount of $31,495,850.00.

Commissioner Browning made a motion seconded by Commissioner Ford to move that the Brunswick-Glynn County Joint Water and Sewer Commission approve the Fiscal Year 2018 JWSC Budget in the amount of $31,495,850.00.  Motion carried 7-0-0.

 John Donaghy then presented the Rate Resolution for Fiscal Year 2017-2018 to the Commission, and noted that this was based on the budget and statistical data of water usage, sewer usage, number of customers REU’s, etc. compiled by Stantec to determine the rates necessary to fund the budget, adequately fund reserves, maintain debt coverage ratios and meet other financial management plans as determined by the JWSC.  He added that the JWSC has provided public notice of the proposed rate increase in accordance with the enabling legislation by publishing the increases in the Brunswick News, inserting notices in customers’ bills and by holding Town Hall meetings.  Mr. Donaghy then continued to review the attached documents of the Water and Wastewater Rates and Charges.  He then noted the recommendation that the JWSC adopt the Rate Resolution for the Fiscal Year ending June 30, 2018.  Also mentioned was the final memo in the package regarding clarification of tap sales requirements listed in the Rate Resolution for review.

 Commissioner Copeland made a motion seconded by Commissioner Harvey to move that the JWSC adopt the Rate Resolution for the fiscal year ending June 30, 2018.  Motion carried 7-0-0.

 2.  Mario Garcia/BGJWSC Memorandum of Understanding – Southport Force Main Improvements – T. Kline

Todd Kline presented to the Commission the recommended opportunity for a public/private partnership off Southport Road and Highway 17.  He reviewed the background with the Commission.  He noted that the proposed project is a cooperative effort between Mario Garcia (a private developer) and the JWSC to fund necessary wastewater collection system improvements on Southport Parkway, Exit 29/South Mainland. Mr. Garcia owns a parcel of property on the western side of U.S. Hwy. 17, just south of Southport Parkway.  Mr. Kline then referenced an area map indicating the location, which was provided with the packet. He continued that Mr. Garcia is in the process of rezoning this parcel to develop an approximately 65 lot RV project.  This parcel would be served by JWSC Sanitary Sewer Basin 3114, which is currently designated as over designed capacity.  He also noted that several other developments and residential construction projects in this basin have been denied access to the JWSC collection system due to this condition.  The 2015 Master Plan defines the capacity deficiencies in Basin 3114, however there is currently no funding and no short term plan to upgrade the Basin 3114 system. Mr. Garcia has approached JWSC staff and had several meetings to discuss this project. He has presented that his project is not feasible when calculated with proposed future Capital Tap fee values.  Mr. Garcia proposed the preliminary payment of his fees at the current rates to fund necessary improvements with an agreement between both parties to facilitate.  A proposed MOU was attached.  Upon execution of the MOU, payment arrangements will be made immediately.  Also noted was that JWSC has entered into a similar agreement where the portion of improvement cost that exceeded the Capital Tap fee was paid back to the developer over time.  In this case, it is believed the Capital Tap fee exceeds the improvement cost, so no reimbursement would apply.  Mr. Kline continued to discuss and explain the details and conditions of the project, reviewing the necessary modifications.  He noted that a condition of the MOU is Mr. Garcia must provide an engineering study and design recommendation produced by a Registered Professional Engineer (GA).  JWSC staff will review the report to determine if the infrastructure improvements are feasible and in the best interest of the Commission.  If so, the improvement project would move forward under the management of the JWSC and funded by the Capital Tap fees collected by Mr. Garcia. Staff believes the cost of the improvements may be within the scope of the expected tap fees that would be realized from Mr. Garcia’s development.  Mr. Kline continued noting that budgetary costing is designated in the required Engineering Design report.  The MOU designates that if the true cost exceeds the value of the Capital tapping fees, the JWSC reserves the right to dissolve the agreement and refund fees.  In that event, it could be evaluated to determine if the JWSC had value in providing any additional funding needed.  Also, these improvements coordinate well with SCADA upgrades that are currently planned to be completed this calendar year in the South Mainland system.  Mr. Kline advised that staff has reviewed the agreement and believes it to be an opportunity to fund a positive first step towards the long term planned improvements of Basin 3114, and staff recommends approval of the MOU as proposed and process the purchase of the taps immediately.  There was some continued discussion regarding the project and private ownership of lift stations, including building by JWSC standards, by the Commission.

 Commissioner Browning made a motion seconded by Commissioner Harvey to move to authorize the Chairman to execute an agreement in the form of the attached MOU (Exhibit B) to facilitate the necessary JWSC system improvements in Basin 3114.   Motion carried 7-0-0.

 EXECUTIVE SESSION

No Executive Session.

Commissioner Harvey made a motion seconded by Commissioner Adams to adjourn the Special Called Meeting.  Motion carried 7-0-0.

Chairman Elliott adjourned the open meeting at 2:49 pm.