2004 09 15 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
September 15, 2004
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular
session on Wednesday, September 15, 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 August 18, 2004.
Board Member Buenz moved approval of the minutes of the meeting held on August 18, 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.
Election of Officers.
Board Member Beavers nominated Robert L. Gillette as President. Board Member Conejo seconded
the motion. The vote follows:
Ayes: Board Members Buenz, Beavers, Conejo and Mundinger
President Gillette
Nays: None
The motion carried.
President Gillette nominated Dan M. Mundinger as Vice -President, and Peter Buenz as Secretary.
Board Member Buenz seconded the motion. The vote follows:
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Minutes of the Regular Meeting —September 15, 2004
Ayes: Board Members Buenz, Beavers, Conejo and Mundinger
President Gillette
Nays: None
The motion carried.
Consider Proposed Resolution No. 040915-1, approving the BA WA Investment Policy.
Proposed Resolution No. 040915-1 submits for annual review and approval, BAWA's Investment
Policy and Strategy, in compliance with the Public Funds Investment Act. The City's Finance
Committee reviewed the policy at its meeting on August 31, 2004 and recommends approval. The
policy was last reviewed and approved by the Board at the regular meeting held on September 17,
2003. No changes have been made to the current policy.
Donna Sams, Finance Director, informed the Board that the Legal Department had not yet completed
negotiations for the contract with Bank One as the Authority's primary banking depository, as shown
in Exhibit "C" to the proposed resolution.
Board Member Buenz moved approval of the proposed resolution, subject to finalization of the
banking depository contract with Bank One. Board Member Mundinger 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. 040915-2, approving an Interlocal Agreement with the City of
Baytown to provide for auditing services for the Baytown Area Water Authority for the fiscal years
ending September 30, 2004, 2005, and 2006.
The City of Baytown will enter into a professional services agreement for the initial three-year period,
with Sandersen, Knox & Belt, L.L.P., to conduct the required audit of BAWA's finances for the fiscal
years ending September 30, 2004, 2005, and 2006. Five proposals were received and were narrowed
down to include firms with municipal auditing experience. The Finance Committee interviewed three
firms and recommends Sandersen, Knox & Belt, L.L.P. The agreement contains the option to renew
for an additional three-year period. A total of $12,500 was included in the 2005 budget for the first
year. The fees for providing the auditing services are $4,478 for 2004, $4,657 for 2005 and $4,843 for
2006. The proposed Interlocal Agreement provides for reimbursement of the City for the expenses of
the audits.
• Board Member Beavers moved approval of the proposed resolution. Board Member Conejo seconded
the motion. The vote follows:
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Minutes of the Regular Meeting —September 15, 2004
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette.
Nays: None.
The motion carried.
Consider Proposed Resolution No. 040915-3, awarding a contract for banking depository services.
This item was not ready for consideration.
Manager's Report.
Tony Brown, Plant Supervisor, reviewed the current water sales. The August average was 13.1 million
gallons per day. The year to date average is 11.7 million gallons per day. The budgeted average is
12.2 million gallons per day. The September average is projected to be 13.8 million gallons per day.
It is unlikely that the budgeted average will be met.
Fred Pack, Plant Manager, informed the Board that negotiations continue with the City of Houston
regarding the quantity of water the Authority can buy without penalty and the length of the contract.
Because the Authority has applied to the Texas Water Development Board (TWDB) for a loan, the
TWDB has requested that the quantity of water and the length of the contract coincide with the 20-year
payout of the loan. That is the purpose of staff's renegotiation of the contract with the City of
Houston. Staff does not expect an increase in the cost of the water.
Gary Jackson, General Manager, reported that City Council adopted the 2004-2005 Fiscal Year
Budget, including the budget for BAWA, at the September 9, 2004 meeting. This budget contains a
4% across-the-board increase for all City employees, effective January 1, 2005, including BAWA
employees and members of the Police Department. It does not include Fire Department employees due
to collective bargaining. Mr. Jackson said that there are sufficient funds in contingency to cover this
increase.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:07 a.m.
Patti Merrell, Assistant to the Assistant Secretary