2009 02 18 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
February 18, 2009
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas met
in Regular Meeting on Wednesday, February 18, 2009 in the Conference Room, 7425
Thompson Road, Baytown, Texas, with the following in attendance.
Peter Buenz President
Dan Mundinger Vice President
Robert Gillette Secretary
Wayne Baldwin Board Member
John Sandhop Board Member
8:00 A.M. President Buenz convened the February 18, 2009 Regular Meeting with a
quorum present.
Public Works' Director Darryl Fourte was introduced, and appreciation was extended to
Mike Hughes who served as the Interim Public Works' Director.
1. MINUTES
a. Considered the approval of the minutes from the Baytown Area Water
Authority Board Regular Meeting on December 17, 2008.
Motion was made by Board Member Sandhop, seconded by Board Member Gillette
approving the minutes of the December 17, 2008.
Ayes: Board Members: Baldwin, Gillette, Mundinger, Sandhop
and President Buenz.
Nayes: None.
The motion carried.
2. BUSINESS ITEMS
a. New Member for the Baytown's Area Water Authority.
Considered possible new members to recommend to the City Council as the new Director
for BAWA, who will replace President Buenz.
General Manager Brumback submitted the name of Ms. Lynn Foley, and Director
Mundinger submitted the name of Ms. Brenda Smith.
Page 2 of 3 BAWA Minutes for the Regular Meeting of February 18, 2009
b. Election of President of the Board of Directors.
Motion was made by Board Member Gillette, seconded by Board Member Mundinger
nominating Board Member Sandhop as President of the Baytown Area Water Authority
Board. The vote was as follows:
Ayes: Board Members: Baldwin, Gillette, Mundinger, Sandhop
and President Buenz.
Nayes: None.
The motion carried.
3. MANAGER'S REPORT
a. Receive the September 30, 2008 Annual Report — Finance.
Cynthia Pearson introduced Mike Brooks with Belt Harris and Associates who presented
the 2008 Annual Report. The Opinion Letter was rated at the highest level. The
Management Letter noted nothing out of the ordinary, and that BAWA does comply as a
result of the Statement of Auditing Standards. A couple of deficit statements were
generic such as staff too lean; however, at this time municipalities at this time must agree
due to the "limited resources." "Material" weaknesses were noted; however, the Board
accepted the standard of the material weakness standard of operation per General
Manager Brumack. The consensus of the Board was to accept the Annual Report.
b. Received the Baytown Area Water Authority's Quarterly Investment Report
for the Period Ending December 31, 2008 — Finance.
Cynthia Pearson presented the Quarterly Investment Report, and in response to a Board
Members' question the Finance Director stated that the investment had not recently gone
negative. Ms. Pearson further stated that for the long term the investment was very
stable, consistent as a result of a conservative financial policy.
c. Discuss Upcoming Rate Study — Finance.
Discussed an upcoming rate study to be performed by an independent consultant.
Having a rate study performed by an independent consultant provides an added value in
the determination of the rate structure for BAWA for the future.
d. Peter Buenz and His Years of Service with Baytown Area Water Authority —
General Manager.
As a long term Board Member and current President of the Baytown Area Water
Authority, Peter Buenz' commitment to continuously improve the quality of life for the
Baytown Citizens has made him a leader in our community. From the ground breaking
Page 3 of 3 BAWA Minutes for the Regular Meeting of February 18, 2009
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for the current BAWA facility, through the difficult process of installing two major
transmission lines, Peter has continued to encourage the smart growth of Baytown's
water system. Under his watch, BAWA continues to earn the designation of Superior
Water System from the State of Texas. General Manager Brumback asked that all in
attendance join him in recognizing Peter's 34 years of excellent service to the residents of
Baytown.
e. Report and Update on Reytec Construction's Progress on the 30" Water
Line Construction Project.
Mike Hughes stated that the water line had been certified for sometime with Harris
County. General Manager Brumback further stated that he would be meeting with
officials that day for further questions and cost of challenge throughout the project.
4. ADJOURN
Motion was made by Board Member Baldwin, seconded by Board Member Sandhop
adjourning the February 18, 2009 Regular Board Meeting.
Ayes: Board Members: Baldwin, Gillette, Mundinger, Sandhop
and President Buenz.
Nayes: None.
8:26 A.M. President Buenz adjourned the Regular Meeting on February 18, 2009.
Ka Darnell, Assistant Secretary
Cit • : aytown