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2001 08 22 BAWA Minutes• • • MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY August 22, 2001 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, August 22, 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 June 20, 2001. Board Member Buenz moved approval of the minutes of the meeting held on June 20, 2001. Board Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze. Nays: None. The motion carried. Consider adoption of fiscal year 2001-2002 BA WA budget. The operations portion of the proposed budget is based on 12.1 million gallons per day. No increase in rates is proposed. No increase in raw water costs is anticipated. No amendment to the raw water contract for increased supply will be sought. Expenditures in personnel services are increased by $67,545, primarily due to health care and compensation increases. An increase of $71,400 is projected for chemicals and untreated water due to the anticipated volume increase. An additional $50,000 is budgeted for the filtration plants to provide for lagoon cleaning and the complete tank inspection that is due. The increase in electricity cost and the increased volume cause an increase of $55,235 in services. Under capital outlay, a 1989 pick up and a 1983 tractor are budgeted for replacement. The scheduled debt service will decline over the next few years. The new debt will be layered Page 2 of 3 • • Minutes of the Regular Meeting — August 22, 2001 into this decrease to avoid rate increases to offset the new debt. $600,000 has been set aside to step into the new debt program. The one-time funding from the mineral royalties is used for this one-time expense. The working capital has been reduced to the standard 68 days. Planning for this change allowed the new debt without rate increases. Board Member Buenz moved adoption of the fiscal year 2001-2002 BAWA budget. 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 Amendment No. 3 to the professional services contract with Camp, Dresser McKee. The expansion of the plant was originally planned for two phases, 1) capacity and 2) reliability. The second phase was delayed to avoid an impact on the rates. The amendment to the contract will provide the engineering for the reliability phase. When the improvements anticipated in this phase are completed, the plant will be able to produce and distribute 26 million gallons of water per day. TNRCC is requiring that the ground storage tanks be repainted. TNRCC also requires that the plant have stand-by equipment when the plant is operating at peak capacity. The proposed high service pump is necessary to maintain pressure in the system. The proposed amount of the amendment is $997,763. Funding is available from the 1999 bonds. The contract amendment provides more than the engineering for the reliability phase. It also includes for on -site inspections and construction supervision, CT study and programming. Board Member Buenz moved approval of Amendment No. 3 to the professional services contract. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze. Nays: None. The motion carried. Consider granting the Assistant Secretary authority to sign in lieu of the Secretary on documents for the Authority. Page 3 of 3 • • Minutes of the Regular Meeting — August 22, 2001 Board Member Buenz moved approval of granting the Assistant Secretary authority to sign in lieu of the Secretary on documents of the Authority. Board Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Gillette, Mundinger and Schulze. Nays: None. The motion carried. Manager's Report. Tony Brown reported that the Phase I construction was nearing completion. The structures are complete. Most of the equipment has been installed. By mid -September water will be in the facility for testing. By October 1 the basin will be used to process water. The computer system will be completed in the following months. The construction will be complete by January 1, 2002. Adjourn As there was no further business to be transacted, the meeting adjourned at 8:26 a.m. /mith, G W. Assistant Secretary