2006 06 21 BAWA Minutes•
MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
June 21, 2006
8:00 a.m.
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular
session on Wednesday, June 21, 2006 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 April 19, 2006.
Board Member Conejo moved to approve the minutes of the meeting held on April 19, 2006. Board
Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo.
President Gillette.
Nays: None.
The motion carried.
Receive the quarterly investment report for the quarter ended March 31, 2006.
Rhonda Young, Finance Director for the City of Baytown gave the quarterly investment report stating
that the interest rates are slowly increasing at a rate of 4.5 to 5%. Upon the completion of Ms.
Young's report, the Board moved to the next item on the agenda.
Consider Proposed Resolution No. 060621-1, authorizing the issuance of Baytown Area Water
Authority Water Supply contract Revenue Bonds, Series 2006.
City Manager Jackson introduced Drew Masterson with First Southwest Company who gave a
presentation on the $13,290,000 Water Supply Contract Revenue Bonds Series 2006 which had been
prepared by his company. He explained:
• The historical interest rates for the 30 year revenue bond buyer's index over the past 10 years;
• A summary of interest rates from 2007 through 2026 ranging from 2.25% to 3.150%;
• A comparison of rates on TWDB sale to the open market sale; and
• A summary of Insurance Bids.
He closed the presentation stating that the program is very attractive.
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Minutes of the Regular Meeting BAWA - June 21, 2006
Board Member Conejo moved to approve the Resolution as presented. Board Member Buenz
seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo.
President Gillette.
Nays: None.
The motion carried.
Consider Proposed Resolution No. 060621-2, authorizing the General Manager to pay issuance
costs associated with the Baytown Area Water Authority Water Supply contract Revenue Bonds,
Series 2006.
With limited discussion, Board Member Buenz moved to approve the Resolution as presented. Board
Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo.
President Gillette.
Nays: None.
The motion carried.
Manager's Report.
Mr. Tony Brown introduced Armando Martinez to give a report on the Baytown Area Water Authority
(BAWA) Consumer Confidence Report which had been received and a copy given to each Board
Member at their place. Mr. Martinez explained that the report begins with general language about why
the report is submitted and gives general information about BAWA. The report goes on to define
contaminants as anything present in the water which does not necessarily mean dangerous.
Contaminants can be regulated or unregulated. The report stated that BAWA did not exceed the
regulated guidelines for contaminants and BAWA did not receive any violations. It went on to state
that BAWA has excellent water and the water is within guidelines.
Tony Brown stated that there was an inspection by the TCEQ and BAWA meets all regulations and
maintained its superior water status.
Tony Brown also updated the Board about the Phase IIII construction project issues mentioned at the
meeting in April. There were two items remaining: the burned motor which has now been replaced
and is working, and the second item was the generator. While it was thought that the generator was
working, there are still issues which are being tested; this item remains unresolved.
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Adjourn.
Minutes of the Regular Meeting BAWA - June 21, 2006
With no further business Board Member Buenz moved to adjourn. Board Member Mundinger
seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo.
President Gillette.
Nays: None.
The motion carried.
The meeting adjourned at 8:21 a.m.