2006 12 20 BAWA Minutes•
MINUTES OF THE REGULAR SESSION MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 20, 2006 at 8:00 a.m.
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular
session on Wednesday, December 20, 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
Dan Conejo, Board Member.
Knox Beavers, Board Member
Robert L. Gillett, President, opened the meeting 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 November 16, 2006.
Board Member Buenz moved to approve the minutes of the meeting held on November 16, 2006.
Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Buenz, Beavers, Mundinger and Conejo.
President Gillette
Nays: None.
The motion carried.
Consider Proposed Resolution No. 061220-1, awarding the bid for the annual contract for liquid
sodium hydroxide.
Tony Brown, Plant Supervisor, explained that this chemical, liquid sodium hydroxide is used to adjust
the PH content in the water supply. He told the board that nine bid packets were sent out and seven
were sent back. The proposed resolution awards the bid for the annual contract for liquid sodium
hydroxide on a 50% and 25% dry basis. The bids were opened on Monday, November 28, 2006. The
low bidder was Altivia with a bid of $0.1450 per pound for the 50% concentration at a total bid price
of $59,015 and $0.1600 per pound for the 25% concentration at a total bid price of $46,400.
Board Member Conejo moved to approve the minutes of the meeting held on November 16, 2006.
Board Member Buenz seconded the motion. The vote follows:
The motion carried.
Ayes: Board Members Buenz, Beavers, Mundinger and Conejo.
President Gillette
Nays: None.
Page 2 of 3
Minutes of the Regular Session Meeting BAWA - December 20, 2006
Discuss the refunding of outstanding Baytown Area Water Authority revenue bonds.
City Manager Jackson explained that refunding the outstanding revenue bonds will save approximately
$40,000 in debt service payments on Phase I of the project. He explained that this item is a discussion
item and with consensus of the Board, staff will move forward.
The Board engaged in limited discussion about this item. Ms. Rhonda Young, Finance Director,
pointed out that there are examples of the refunding for 1998 and 1999 bonds in the packet.
It was the consensus of the Board to move forward with the refunding of outstanding Baytown Area
Water Authority revenue bonds.
Receive the September 30, 2006 Annual Finance Report.
Robert Belt with Sandersen Knox & Belt gave the Annual Finance Report. He stated that his firm
conducted a single audit of the Baytown Area Water Authority Funds even though the Annual Report
will be included in the City's Year End Report.
Mr. Belt pointed out the following items of significance:
• Operating revenues decreased $294,483 due to reduced volume of water sales in the current
year and billing adjustments
• Non -operating revenues decreased $2,371 due to a combination of decrease in amounts
received for mineral royalty payments and an increase in interest earnings
• Operating expenses increased by $462,227 as a result of increased personnel cost, electricity
cost, and a rate increase from the City of Houston for raw water purchases from $0.3980 to
$0.4123 per one thousand gallons, effective April 2006
• Non -operating expenses decreased by $32,020 due to decreased interest expense for bond debt
service
Manager's Report.
Fred Pack, Director of Public Works, reported that the Transmission Line Project is going well. 53%
of the project is complete in 40% of the time. He told the Board that the more difficult tasks are yet to
come.
The Board engaged in limited discussion about the project.
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Page 3 of 3
Minutes of the Regular Session Meeting BAWA - December 20, 2006
Adjourn:
With no further business Board Member Mundinger moved to adjourn. Board Member Conjeo
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 8:10 a.m.
•
Lorri, Coody, Assistant ecretary