2005 11 18 BAWA MinutesMINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
Nozenier 18, 2005
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular
session on Wednesday, November 18, 2005 in the Conference Room, 7425 Thompson Road, Baytown,
Texas, with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Knox Beavers, Board Member
Dan Conejo, Board Member.
Absent was Peter Buenz, Secretary.
The meeting opened at 8:00 a.m. with a quorum present, and the following business was conducted:
Consider approzul grthe minutes for the meting held on September 21, 2005.
Board Member Conejo moved approval of the minutes of the meeting held on September 21, 2005.
Board Member Mundinger seconded the motion. The vote follows:
Ayes: Board Members Beavers, Conejo, and Mundinger.
President Gillette.
Nays: None.
The motion carried.
Consider Prrloased Resolution Na 051118-1, authorizing Gary Jadeso, General Manama, as authorized repmcaentatize to
execute a supply agra-nvrn zeith a retail electric prozider.
Since 2002 with the deregulation of the electric industry, BAWA has had the power to choose the
company from which it purchases its electrical loads. BAWA currently has a contract with TXU Energy
Services, which contract expires on December 31, 2005. Currently, the staff is exploring the market to
determine from whom it should purchase its electrical services. Because of the market fluctuations, retail
electric providers are not willing to hold quoted prices for much more than a day. Therefore, BAWA is
forced to act quickly. The proposed resolution authorizes the General Manager to execute a contract for
BAWA's electrical loads once a satisfactory price quote together with other terms and conditions is
obtained from a retail electric provider.
Board Member Conejo moved adoption of the proposed resolution. Board Member Beavers seconded
the motion. The vote follows:
Ayes: Board Members Beavers, Conejo, and Mundinger.
President Gillette.
Nays: None.
The motion carried.
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Minutes of the Regular Meeting - November 18, 2005
Consider Proposed Resolution Na 051118-2, authorizing an metric sales agreement with the Texas General Land Office
for the purchase cf electricity through the state power program
The program allows the land commissioner to convert oil and gas royalties from public land into electricity
and sell it to public schools, state universities, state agencies, and local governments at a discount. Under
this program, Reliant Energy Retail will purchase the state's natural gas and arrange for the generation and
delivery of electricity to the participating public entities at a discounted rate, off of the Reliant
Energy/HL&P base rate. BAWA participated in this program prior to electric deregulation, which
commenced on January 1, 2002. Since deregulation, BAWA has participated in the aggregation group
established by the H-GAC Energy Purchasing Corporation. BAWA's contract with H-GAC expires on
December 31, 2005. While the proposed resolution approves the agreement, the same will not be
executed until BAWA obtains indicative pricing from the GLO as well as H-GAC and any other retail
electric provider or aggregation group so that the best value to BAWA can be determined. This proposed
resolution preserves BAWA's option in locking in an advantageous rate with the GLO since rates change
daily. The rate that BAWA approves may be for a one-year, two-year, or three-year term.
Board Member Mundinger moved adoption of the proposed resolution. Board Member Conejo seconded
the motion. The vote follows:
Ayes: Board Members Beavers, Conejo, and Mundinger.
President Gillette.
Nays: None.
The motion carried.
Consider approzing plans and specifications and authorizing adzertiserrent for bids for the new Walliszille Rand BA WA
Trammission Line Pn jai
The scope of work includes the installation of approximately 31,000 linear feet of a new 30-inch water
transmission line, from the BAWA plant north along Thompson Road to Wallisville Road and then east
along Wallisville Road to the intersection of North Main Street. This also includes the installation of
approximately 5,700 linear feet of a 16-inch distribution line to be laid from Interstatel0 at North Main
north to the intersection with Wallisville Road. Additionally, about 3,000 linear feet of a 12-inch
distribution line will be extended along Garth Road north to Wallisville Road. The estimated construction
cost for this project is $8,500,000 and will be funded by 2005 Texas Water Development Board bonds.
The construction contract duration for this project is estimated to be 365 calendar days.
Board Member Conejo moved approval of plans and specifications for the new Wallisville Road BAWA
Transmission Line Project and authorization for advertisement for bids. Board Member Beavers seconded
the motion. The vote follows:
Ayes: Board Members Beavers, Conejo, and Mundinger.
President Gillette.
Nays: None.
The motion carried.
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Minutes of the Regular Meeting - November 18, 2005
• Re eize nr thly incest rx it report for the period ending Septeni r 30, 2005 for the Baytown Area Water A iarhority
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 period ending
September 30, 2005.
Robert Chambers, Controller, summarized the report. He noted that investment earnings are slightly
higher than the yield for a 90-day T-Bill and the interest rate is expected to remain constant.
Manager's Report
Tony Brown, Plant Supervisor, reported on the damage caused to the facility by Hurricane Rita. Gary
Jackson, General Manager, explained the affect of the storm on the water supply.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:19 a.m.
e vin Knauf, nterim Assis nt Secretary
•