2002 08 21 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August 21, 2002
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, August 21, 2002, in the Conference Room, 7425 Thompson
Road, Baytown, Texas, with the following in attendance:
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Dan Conejo, Board Member
Absent: Robert L. Gillette, President
Dan Mundinger, Vice President.
The meeting opened with a quorum present, and the following business was conducted.
In the absence of the President and Vice President, Secretary Buenz served as temporary
Chairman of the meeting.
Consider approval of the minutes for the meeting held on June 19, 2002.
Board Member Beavers moved approval of the minutes of the meeting held on June 19, 2002.
Board Member Buenz seconded the motion. The vote follows:
Ayes: Board Members Beavers and Buenz
Nays: None
Abstention: Board Member Conejo.
The motion carried.
Dan Conejo was introduced as the new Board Member, replacing Sam T. Schulze.
Consider adoption of the 2002-2003 fiscal year budget.
Fred Pack reviewed the operations portion of the proposed budget. The revenues proposed are
based on the sales of 12.31 million gallons per day. The current year budget is based on 12.1
million gallons per day. The increase projected is based on sales to Country Terrace. No
increase in rates is included. Expenditures are reduced by $45,414 from the current budget. The
decreases in expenditures are in chemicals, maintenance (due to the capital improvements) and
electrical charges (due to deregulation). An increase is projected in raw water expenditures. No
increase in raw water rates is projected.
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Minutes of the Regular Meeting — August 21, 2002
Phase I of the capital improvement project is nearing completion. Phase II is on hold while the
TNRCC researches disinfection. Phase III is under construction. The contractor is currently
working in the west ground storage tank. A new line into the City is being considered for
inclusion in future capital programs.
Donna Sams reviewed the debt service portion of the proposed budget. The bond rating was
improved from an A- to an A rating. This contributed to the very favorable interest rates in the
bond sale. The mineral royalties are being set aside for future capital projects. By the end of the
next fiscal year, the royalties should total $1,400,000. Eighty-nine days of working capital are
included in the proposed budget. The standard is sixty days. The debt service will decrease after
the 2002-2003 fiscal year. This will allow funds to be set aside for future capital projects to
minimize debt funding.
Mr. Pack explained that a nonlicensed vehicle will replace a pick up truck. It will be used on the
plant site only. Two air compressors that have been rebuilt many times will be replaced in the
new budget.
Board Member Beavers moved approval of the 2002-2003 fiscal year budget. Board Member
Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz and Conejo.
Nays: None.
The motion carried.
Consider Proposed Resolution No. 020821-1 authorizing the assignment of Cedar Bayou Water
Supply Company, Inc. 's Wholesale Water Supply contract to Cindy Riley d/b/a C & R Water
Supply.
This item was withdrawn from consideration.
Mr. Pack explained that the transfer of ownership was not completed and that the item will be
included on the next agenda.
Mr. Pack also explained that BAWA and the Subsidence District have been in contact with Jerry
Nowling of Country Terrace. The Subsidence District approved and gave Country Terrace a
grant for the capital buy -in fee. Country Terrace is still on a well. Country Terrace must submit
two more documents for the contract, the plans for the meter box and a map of the service area.
The complete contract must be approved by the City of Houston prior to BAWA accepting
another retail customer. The Subsidence District is encouraging Country Terrace to submit the
necessary paperwork.
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Minutes of the Regular Meeting — August 21, 2002
Manager's report.
Tony Brown reported the progress on the capital projects. On Phase I the punch list is being
completed and final bugs are being resolved. The project is 99% complete. The functional
demonstration was started last week. It uncovered new bugs, which are being fixed. The basin
work is complete and the plant can process 26 million gallons per day, if needed. Phase III is
mainly work on the ground storage tanks. One tank is out of service. The plant will operate on
two tanks for the next 18 months.
Mr. Pack reported that the rainfall has hurt sales of water. The budget was based on 12.1 million
gallons per day. The projection is that the plant will have averaged 11.52 million gallons per day
at the end of the fiscal year.
Board Member Beavers complemented the work on the Consumer Confidence Report and
encouraged its distribution.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:20 a.m.