2003 12 10 BAWA Minutes • MINUTES OF THE SPECIAL MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 10, 2003
The Board of Directors of the Baytown Area Water Authority, Harris Count Texas, met in
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special session on Wednesday, December 10, 2003, 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 with a quorum present, and the following business was conducted:
Consider approval of the minutes for the meeting held on November 5, 2003.
Board Member Buenz moved approval of the minutes of the meeting held on November 5, 2003.
Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette
Nays: None.
The motion carried.
Consider awarding the bid and authorizing a contract for the annual purchase for chlorine.
Tony Brown, Plant Superintendent, reported that four bid packets had been mailed and two bids
were received for the annual contract for chlorine. The apparent low bidder is Altivia, who was
awarded the contract last year. The bid is $424.53 per ton for a projected annual purchase price
of$56,462. Last year's price was $436 per ton.
Board Member Buenz moved award of the bid and authorizing a contract for the annual purchase
for chlorine. Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette
• Nays: None.
The motion carried.
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Minutes of the Special Meeting—December 10, 2003
• Consider awarding the bid and authorizing a contract for the annual purchase for ferric
chloride.
Mr. Brown reported that eight packets were mailed and four bids were received for the annual
contract for ferric chloride. The apparent low bidder, Eaglebrook, Inc., failed to meet bid
specifications. The second low bidder, Genesis Chemicals, provided the chemical last year, and
bid $0.14767 per pound for a projected annual cost of$73,835. Last year's price was $0.1887
per pound.
Board Member Conejo moved awarding the bid and authorizing the contract for the annual
purchase for ferric chloride. 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 approving Change Order No. 4 to the contract for the construction of Baytown Area
Water Authority Plant Expansion, Phase III.
Fred Pack, Plant Manager, explained that Change Order No. 4 to the contract for the construction
of Baytown Area Water Authority Plant Expansion, Phase DI, addresses changes as follows:
The change order relocates and increases the size of an entry gate, provides for repair to conduit
that was cut in order to install the new flocculation equipment, relocates one of the VFD panels
to provide more room around the panels and reroutes electrical conduit in the vicinity of MCC-1
at the Canal Pump Station. Change Order No. 4 increases the contract amount by $9,524.23.
The original contract amount was $4,792,100. Change Order No. 1 reduced the contract amount
by $240,080 to $4,552,020. Change Order No. 2 increased the contract amount by $82,423 to
$4,634,443. Change Order No. 3, increased the contract amount by$25,583 to $4,663,026. The
total contract amount will be $4,672,550.23.
Board Member Buenz moved approval of the Change Order No. 4 to the contract for the
construction of Baytown Water Authority Plant Expansion, Phase DII. Board Member Conejo
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo, and Mundinger
President Gillette
Nays: None.
The motion carried.
•
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Minutes of the Special Meeting—December 10, 2003
• Receive the September 30, 2003 Annual Finance Report.
Robert Chambers, Controller for the City of Baytown, reviewed the report and noted the
decrease in revenues due to the rainfall. The expenditures also reflected a decrease due to lower
maintenance costs and charges for electricity. The nonoperating revenue increased due to a
capital buy-in fee and increased mineral royalties. The mineral royalties have been reserved for
use in capital improvement projects. The Authority's goal for working capital is 60 to 90 days.
At year's end the working capital was at 106 days. This overage is due to bonds being retired.
The issuance of debt in the current fiscal year will reduce the working capital to the desired
range. The debt to be issued in 2004 will be for the second water supply line to the City of
Baytown. The expenditures and revenues were within budget projections and the actual
revenues exceeded actual expenditures.
Mark Tiller, Tiller and Associates, auditor for the Authority, explained that an unqualified
opinion had been issued. In his review of the report, Mr. Tiller noted that the Authority had
managed expenses well in view of the reduced revenues and reviewed the five-year history of
revenues and expenditures.
Gary Jackson, General Manager, discussed a meeting with the Texas Water Development Board
and the possibility of TWDB funding of the second waterline.
Board Member Buenz moved approval of the Annual Finance Report. Board Member Beavers
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo, and Mundinger
President Gillette
Nays: None.
The motion carried.
Receive the September 30, 2003 Investment Report.
A copy of the Investment Report was provided to Board members in their packets. Mr. Tiller
noted that investment income is small due to the low interest rates.
The report was received by the Board.
Manager's Report.
Mr. Pack informed the Board that the one-year inspection of a ground storage tank is underway.
The inspection's purpose is to determine if the interior coating had been properly performed and
is performing properly.
• Mr. Pack also advised the Board that the emergency diesel pump had failed. The new generator
will not be ready for several months. Mr. Brown had been in communication with Mustang to
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Minutes of the Special Meeting—December 10, 2003
• procure another diesel pump on a monthly rental basis. It is believed that a match had been
found and would cost$4,200 per month for a three month period.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:21 a.m.
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Gary W. S ith
Assistant Secretary
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