2003 07 16 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July 16, 2003
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, July 16, 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 June 18, 2003.
Board Member Buenz moved approval of the minutes of the meeting held on June 18, 2003.
Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers and Conejo
President Gillette
Nays: None
The motion carried.
Consider approving Change Order No. 2 to the contract for the construction of Baytown Area
Water Authority Plant Expansion, Phase III.
Fred Pack, Plant Manager, reported that the item was not ready for consideration at this time.
The contractor has submitted a proposal, but Camp Dresser & McKee, our engineer, has not
reviewed and recommended action on the proposal. The contract called for the removal of 18"
of sludge from the forebay. After draining the forebay, approximately three feet of sludge was
found. A special meeting may be necessary.
Consider awarding bid and authorizing contract for the annual purchase of Potassium
Permanganate.
Tony Brown, Plant Supervisor, reported that twelve bid packets were mailed and seven bids were
received. The apparent lowest responsible bidder is F2 Industries with a bid of $1.224 per
pound. The projected annual cost is $42,840. Carus Chemical supplied Potassium
Permanganate under last year's contract at $1.29 per pound, at an annual cost of $90,790.
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Minutes of the Regular Meeting —July 16, 2003
Board Member Buenz moved award of the bid and authorization of the contract. Board Member
Conejo seconded the motion. The vote follows:
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo
President Gillette
Nays: None
The motion carried.
Receive quarterly investment reports for the period ending June 30, 2003.
Donna Sams, Finance Director, announced that the item was not ready for consideration.
Receive and discuss draft of 2003-2004 fiscal year budget.
Mr. Pack reviewed the proposed draft budget with the Board. The City of Baytown takes
approximately 88% of the plant's water production.
In recent years, the rainfall has prevented the Authority from reaching the projected water sales.
The proposed budget maintains the projected water sales at 12.12 million gallons per day. The
estimate of sales by the end of the year is 11.4 million gallons per day. On July 14, the sales had
averaged 11.02 million gallons per day. In July sales have averaged 12.4 million gallons per
day. No increase in rates is planned. There have been only three rate increases in the history of
the Authority.
The expenditures were reviewed and an increase is projected in compensation, a decrease in
maintenance and an increase in services and supplies, due to a federally mandated vulnerability
study and a required ammonia tank inspection. No increase is expected in raw water cost. Debt
service is down slightly.
The capital program consists of completion of the Phase I improvements. Progress is slow, but
work toward completion is being done. Funds in the amount of $300,000 have been retained to
insure final completion. Phase II, the ozone project, is on hold while the Texas Commission on
Environmental Quality conducts studies on water purification with ozone. Phase III is underway
and going well. The plant is down today to allow the backwash line to be tied -in. All customer
master meters will be changed out. The new technology will allow better measuring of water
sold and will be rated for fire protection. The cost is $210,000. Funding for the design of an
additional trunk line to the City of Baytown is proposed in the budget. The route will be north
along Thompson Road to Wallisville Road, east on Wallisville Road to Sjolander Road, and
south on Sjolander Road to connect to the line on Interstate Highway 10. The funding for the
design is $700,000, or 10% of the estimated cost of the project.
Gary Jackson, General Manager, noted that the increase in compensation is the annualization of
the 2.5% increase in last year's budget. No increase is included in the current year budget.
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Minutes of the Regular Meeting —July 16, 2003
Board Member Conejo inquired who would install the master meters and supported the second
trunk line. Mr. Pack said that the installation would be contracted -out.
President Gillette asked if any additional right-of-way would be required for the new line. Mr.
Pack replied that extensive surveying would be required to answer the question and that the
County's intentions for improvements to Wallisville Road would affect the need for additional
right-of-way.
Ms. Sams stated that the decrease in debt service is from the discharge of the 1994 bonds. The
debt service requirements dropped from $1.8 million to $1.3 million. Mineral royalties will be
used to fund the design of the second trunk line. In response to an inquiry, Ms. Sams explained
that the base column reflects funding and projects as they exist in the 2002-2003 budget. The
proposed column includes new initiatives.
Mr. Pack added that $24,000 is included to replace the air conditioning unit and zone the
Administration building.
Ms. Sams stated that the budget would be on the August agenda for action.
Discuss Water Quality Reports.
Armando Martinez, Lab Supervisor, reported that the Water Quality Report (Consumer
Confidence Report) was prepared as mandated and forwarded to each customer of the Authority.
No violations were reported and contaminants were below the goal for each contaminant. The
contaminants are naturally occurring, come from fluoridation done by at the Plant, or from
pesticide run-off into the source water. No adverse health affects are reported.
Manager's Report.
Mr. Pack reported that the facility weathered Hurricane Claudette well. There were no power
losses. One line break on a ten -inch line on Weaver Street was discovered and repaired during
the storm.
The Plant is currently working off the by-pass line. Production is limited to 16.4 million gallons
per day. There has not been a need to request water use curtailment. With the rainfall, revenues
are below projections.
Receive quarterly investment reports for the period ending June 30, 2003.
Ms. Sams distributed the investment report and stated that interest earnings are still low. Interest
rates were reduced again. The beginning balance is larger than the ending balance because the
funds are being used to pay for the work on the Phase III project.
Board Member Buenz moved acceptance of the quarterly investment report. Board Member
Beavers seconded the motion. The vote follows:
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Minutes of the Regular Meeting —July 16, 2003
Ayes: Board Members Mundinger, Buenz, Beavers, and Conejo
President Gillette
Nays: None
The motion carried.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:34 a.m.
Z-Ca5AW/
Ga' W. /mith, Assistant Secretary