2004 07 21 BAWA Minutes MINUTES OF THE REGULAR MEETING
_-• _ __._ OF THE BOARD OF DIRECTORS _
OF THE BAYTOWN AREA WATER AUTHORITY
July 21, 2004
The Board of Directors of the Baytown Area Water. Authority, Harris County, Texas, met in
regular session on Wednesday, July 21, 2004, in the Conference Room, 7425 Thompson Road,
Baytown, Texas,with the following in attendance:
Dan Mundinger,Vice President
Peter Buenz, Secretary
Knox Beavers, Board Member
Dan Conejo,Board Member.
Absent was: Robert L. Gillette,President.
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 June 16, 2004.
Board Member Beavers moved approval of the minutes of the meeting held on June 16, 2004.
Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
Nays: None.
The motion carried.
Discuss Water Quality Reports.
Armando Martinez, Laboratory Supervisor, explained that the report reflected that there were no
violations of water quality standards. The report contains data on raw water and water processed
by the plant. It does not contain information concerning water in the distribution system. The
report details risks to those with impaired health and describes contaminants. Contaminants are
not necessarily bad. A contaminant may occur naturally. The report reflects the inorganics and
organics found in the water. All contaminants are at levels below the maximum contaminant
level and the EPA contaminant level goal.
Tests on the water are conducted at intervals established by the Texas Department of Health.
Some levels are tested every four hours, some monthly and some quarterly.
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Minutes of the Regular Meeting—July 21, 2004
• Consider Proposed Resolution No. 040721-1, approving an interlocal agreement with the City of
Baytown for the extension of city water lines to the new BAWA distribution line.
The proposed line extensions will be installed on Garth Road and North Main Street and will
interconnect the new 30" BAWA line along Wallisville Road to the 12" line along I-10. The
lines on North Main Street and Garth Road will be City of Baytown lines that will provide an
additional source of water from BAWA to the City. The lines will be engineered and
constructed as part of the BAWA project. BAWA will be reimbursed by the City of Baytown for
City's share of the Garth Road and North Main Street lines.
Board Member Buenz moved approval of the proposed resolution. Board Member Conejo
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
Nays: None.
The motion carried.
Consider Proposed Resolution No. 040721-2,. approving the Water Conservation/Emergency
Water Demand Management Plan.
The Texas Water Development Board has requested minor changes to the Water Conservation
Plan that was recently approved by the Board. They also requested that the approval be in form
of a Resolution. The changes requested are as follows: 1) Removal of"Enactment" paragraph,
2) Addition of how the Authority was created under heading "Program Description", and 3)
Addition of "Annual Reporting Requirements" paragraph. These changes are made in
connection with the Authority's application for funding for the water line extension project.
Board Member Buenz moved approval of the proposed resolution. Board Member Conejo
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
Nays: None.
The motion carried.
Receive and discuss draft of the 2004-2005 fiscal year budget.
Fred Pack, Plant Manager, reviewed the proposed budget. The budget anticipates the loan from
the Texas Water Development Board at a better interest rate than can be obtained from the open
market. The new raw water rate increase instituted by the City of Houston is reflected. The
• same level of water sales is proposed, because the sales have not met projections due to the
heavy rainfall in the past three years.
Page 3 of 4
Minutes of the Regular Meeting—July 21, 2004
No rate increase is proposed, although one is projected for 2006. Expenditures are increased by
• $153,118. Included in the capital improvements is the second water supply line and new lab
equipment to perform testing under new regulations ($35,000) and replacement of the existing
chlorinators ($100,000). The chlorinators are original to the construction of the plant They do
not allow the control of chlorine feed as needed for optimum plant operations.
Phase I construction is substantially complete. The chain-of-flight system has been reinstalled
and appears to be functioning properly. Once it is accepted, the final payment will be
determined.
Phase III construction is at the end of the project. Completion is pending the delivery of
equipment. It should be complete later in the year.
Mr. Pack reviewed the increased line items. Fuel is increased for the new diesel generator. Raw
water cost is increased due to the rate increase. Lab supplies are increased to accommodate new
testing requirements. The main air conditioning unit is scheduled for increased maintenance,
rather than replacement. Electrical maintenance is increased to cover replacement of battery
backups for the SCADA system. Special services is increased to allow for arbitrage calculations.
Gary Jackson, General Manager, noted that the debt service reflects the debt for the new water
supply line. The ending working capital is projected to be 104 working days.
Donna Sams,Finance Director,reviewed the table of projected rates for the future.
Receive the quarterly investment report for the calendar quarter ended June 30, 2004.
In accordance with the Public Funds Investment Act Section 2256-023 (a) and (b), the City of
Baytown Finance Department has prepared and is presenting the Investment Report for the
quarter ending June 30,2004.
Ms. Sams reviewed the report and concluded that interest rates are still low.
Manager's Report.
Mr. Pack reviewed the actions of Cris Harrington, Johnny Malone, Joey Defusto, and Mike
Johnson during a power outage that repaired the damage and kept water supplied from the plant.
Tony Brown, Plant Supervisor, reviewed the current water sales. Year to date, the sales have
averaged 11.4 million gallons per day. Last year, for the same period, the sales averaged 10.9
million gallons per day and 11.1 million gallons per day for the entire year. So far in July, sales
have averaged 12.4 million gallons per day.
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Minutes of the Regular Meeting—July 21, 2004
• Adjourn
As there was no further business to be transacted, the meeting adjourned.at 8:33 a.m.
4.444,
Gary W. Smith,Assistant Secretary
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