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2004 08 18 BAWA Minutes• MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY August 18, 2004 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, August 18, 2004, in the Conference Room, 7425 Thompson Road, Baytown, Texas, with the following in attendance: Robert L. Gillette, President Dan Mundinger, Vice President Peter Buenz, Secretary Knox Beavers, Board Member Dan Conejo, Board Member. The meeting opened at 8:00 a.m. with a quorum present, and the following business was conducted: Consider approval of the minutes for the meeting held on July 21, 2004. Board Member Mundinger moved approval of the minutes of the meeting held on July 21, 2004. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Conejo and Mundinger President Gillette. Nays: None. The motion carried. Presentation of Certificates of Merit to Cris Harrington, Johnny Malone, Joey Defusto, and Mike Johnson. Fred Pack, Plant Manager, explained that during a storm in June the plant lost power and several transformers. The Reliant Energy lines were down outside the plant. Several employees were called out to assist those on duty. The employees were faced with the challenge of a "dark" plant and maintaining water supply to the City and other customers, damage assessment and the purchase and installation of new transformers. Through the dedicated efforts of Cris Harrington, Johnny Malone, Joey Defusto, and Mike Johnson, and the work of an excellent electrical contractor, the plant was back on line after 20 hours and service was maintained to the Authority's customers. These employees demonstrated a dedication to duty. President Gillette stated that the Authority has been blessed with excellent workers who have contributed significantly to the success of the organization. He then presented Certificates of Merit to Cris Harrington, Johnny Malone, Michael Johnson, and Joey Defusto. Page 2 of 2 • • • Minutes of the Regular Meeting —August 18, 2004 Consider adoption of the 2004-2005 fiscal year budget. Consider approval of the 2004-2005 fiscal year budget. The proposed budget projects revenues of $5,631,750 for 12.21 million gallons of water per day. No increases are projected for BAWA's rate structure. The total operating expenditures in the proposed budget are $3,875,701, an increase of $153,118 from 2003-2004. The increases result from the annualization of the prior year compensation program, an increase in supplies, an increase in maintenance expenses, arbitrage calculations, and an increase in liability insurance and audit services. The debt service requirement is increased by $270,230 for the debt issued by TWDB for the new water supply line. The capital projects proposed in the budget include the second water supply line, completion of Phase III improvements, replacement of the Total Organic Carbon analyzer, and replacing the existing chlorinators. The working capital is projected to be 104 days as of September 2005. This item was discussed during the meeting held on July 21, 2004. Board Member Buenz moved approval of the budget for the 2004-2005 fiscal year. Board Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Conejo and Mundinger President Gillette. Nays: None. The motion carried. Manager's Report. Tony Brown, Plant Supervisor, reviewed the current water sales. The July average was 12.6 million gallons per day. The year to date average is 11.6 million gallons per day. The August average is 13.7 million gallons per day. The budgeted average is 12.2 million gallons per day. It is unlikely that the budgeted average will be met. Gary Jackson, General Manager, reported that the staff continues to work to provide the information required by the Texas Water Development Board for the funding for the second water supply line. President Gillette thanked the BAWA employees who attended the meeting for their presence and their dedication to the Authority. Adjourn As there was no further business to be transacted, the meeting adjourned at 8:10 a.m. Gary TV. Smith, Assistant Secretary