2001 09 19 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
September 19, 2001
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, September 19, 2001, at 7425 Thompson Road, with the following
in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Sam T. Schulze, 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 August 22, 2001.
Board Member Beavers moved approval of the minutes of the meeting held on August 22, 2001.
Board Member Mundinger seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze.
Nays: None.
The motion carried.
Election of officers.
Board Member Buenz moved retention of the existing slate of officers. Board Member Beavers
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze.
Nays: None.
The motion carried.
Page 2 of 3
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Minutes of the Regular Meeting — September 19, 2001
Consider approval of the capital buy -in fee for Country Terrace.
General Manager, Monte Mercer, reported that the transaction with Country Terrace is more
complex than usual because of the assistance being offered by the Harris -Galveston Coastal
Subsidence District. Fred Pack reviewed the proposed contract with Country Terrace. The
capital buy -in fee is included in the contract. The quantity of water provided in the contract is
110,000 gallons per day. The point of delivery will be at Battlebell Road and Thompson Road.
Country Terrace will purchase and install the meter. BAWA will maintain the meter thereafter.
The plans and specifications for the water line has been submitted and reviewed. Corrections are
being made. The rate for water is $1.29 per 1,000 gallons of water. The rates automatically
adjust if BAWA changes rates. The term of the contract is 20 years. The capital buy -in fee is
$88,748. Country Terrace has asked that the fee be payable within 30 days after the sale of
bonds. The Subsidence District has asked BAWA to apply for a grant. Through this grant, the
District will pay the capital buy -in fee. The contract will require approval by the City of
Houston, but no difficulty is expected in obtaining their approval.
Board Member Buenz moved approval of the Country Terrace capital buy -in fee of $88,748.
Board Member Schulze seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze.
Nays: None.
The motion carried.
Consider approval of a water supply contract with Country Terrace.
Board Member Buenz moved approval of the proposed water supply contract with Country
Terrace, granting Country Terrace 30 days after the bond sale to pay the capital buy -in fee,
authorizing BAWA to seek the grant from the Harris -Galveston Coastal Subsidence District, and
contingent upon approval by the City of Houston. Board Member Schulze seconded the motion.
The vote follows:
Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze.
Nays: None.
The motion carried.
Manager's Report.
Fred Pack reported that the construction project was going well. Two weeks of rain days have
been granted. Sales are slightly lower than anticipated, but total sales for the year will be close
to the budgeted amount. Both existing basins are still in operation.
Page 3 of 3
Minutes of the Regular Meeting — September 19, 2001
In response to an inquiry from Board member Schulze concerning risks of strikes against the
water supply, General Manager Mercer reported that meetings had been held with emergency
response personnel and with industry. Protection of the water supply was reviewed. Tony
Brown reported that water contamination is not an effective terrorist action. It is very difficult.
The treatment process dilutes and breaks down contamination. A very large volume would be
required to contaminate the treated water. Personnel have been added and security is
emphasized.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:22 a.m.
. lmith, Assistant Secretary
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