2004 10 20 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
October 20, 2004
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular
session on Wednesday, October 20, 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 September 15, 2004.
Board Member Mundinger moved approval of the minutes of the meeting held on September 15, 2004.
Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette.
Nays: None.
The motion carried.
Consider Proposed Resolution No. 041020-1, approving a contract amendment to the Water Supply
Agreement between the City of Houston and the Baytown Area Water Authority to extend the term of
the agreement and increase the contract quantity.
BAWA has purchased raw water from the City of Houston since its inception in 1977. Currently,
BAWA is requesting funding through the Texas Water Development Board (TWDB) Drinking Water
State Revolving Fund (DWSRF) for two capital improvement projects. The DWSRF provides low
interest loans and subsidies to public drinking water systems. In the application process, TWDB
questioned BAWA's water supply availability after 2020, the year in which BAWA's current contract
with the City of Houston would expire. Specifically, TWDB was concerned that if bonds were issued
for twenty years for the current projects, the maturity of the bonds would extend beyond the maturity
date of the existing water supply contract. To allay this concern, BAWA and the City of Houston have
been working to obtain an amendment to the contract that would not only extend the agreement beyond
the maturity date of the TWDB bonds but also increase the contract quantity as follows:
Page 2 of 3
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Minutes of the Regular Meeting —October 20, 2004
Current Agreement
Contract Amendment
Contract Quantity
11.9 million gallons per day
15.8 million gallons per day
Expiration Date
December 31, 2020
December 31, 2040
Pursuant to the legislation that created it, BAWA secured the approval of the City Council of the City
of Baytown before entering into this contract amendment. City Council approved this contract
amendment at its meeting on October 14, 2004.
Board Member Buenz moved approval of the resolution. Board Member Mundinger seconded the
motion. The vote follows:
Ayes: Board Members Buenz, Beavers, Conejo and Mundinger
President Gillette
Nays: None
The motion carried.
Consider Proposed Resolution No. 041020-2, authorizing a contract amendment to the Water Supply
Agreement with the City of Baytown to extend the term of the agreement and increase the contract
quantity.
This proposed amendment will not be effective until the effective date of the water supply contract
between BAWA and the City of Houston. Additionally, the proposed amendment extends the term of
the City of Baytown contract until December 31, 2040 and increases the contract quantity to 90% of
the contract quantity that BAWA receives from the City of Houston. Specifically, the contract will be
amended as follows:
Current Agreement
Contract Amendment
Contract Quantity
10.71 million gallons per day
14.22 million gallons per day
Expiration Date
December 31, 2020
December 31, 2040
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
President Gillette.
Nays: None.
The motion carried.
Page 3 of 3
Minutes of the Regular Meeting —October 20, 2004
Manager's Report.
Tony Brown, Plant Supervisor, reviewed the current water sales. The September average was 13.9
million gallons per day. The 2003-2004 average was 11.87 million gallons per day. The budgeted
average was 12.2 million gallons per day. This produces a revenue shortfall of $149,000. A savings of
$46,000 was realized due to a reduction in the purchase of raw water.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:13 a.m.
G .Smith
Ass
istant sistant Secretary