Loading...
2002 08 21 BAWA Minutes• • 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. Page 2 of 3 • • 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. Page 3 of 3 • 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.