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2001 02 07 BAWA Minutes, Special Meeting• • MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY February 7, 2001 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in special session on Wednesday, February 7, 2001, at 7425 Thompson Road, in the BAWA Conference Room, 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 January 24, 2001 Board Member Mundinger moved to approve the minutes for the meeting held on January 24, 2001. Board Member Buenz seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Gillette, Schulze and Mundinger Nays: None Consider approval of a Change Order to the Camp, Dresser McKee contract to provide for a rate study. Fred Pack reported that the requests for the purchase of water by potential water customers have raised the possibility that the present expansion project may not provide sufficient capacity to supply the future needs of both present and potential customers. The proposed change order to the engineering contract with Camp, Dresser McKee will have an expenditure limitation not to exceed $20,000. The change order will provide a study of the demand and capacity of the plant and a study of the rate structure to properly recover the costs of any future expansion of the plant or inclusion of new customers. Rodney Chapin, Camp, Dresser McKee, related that the recent requests by three entities to purchase water have indicated that the present expansion project may not provide sufficient capacity to serve the potential needs of the service area. The impact on the water rates from the addition of new customers should be reviewed to avoid a negative impact on the current customers of the Authority. The original projection of the demand in 2010 was 26 million gallons per day. The daily demand of the three entities that have requested service is Page 2 of 2 • • Minutes of the Special Session — February 7, 2001 approximately 3 mgd. If these customers are added, another expansion will be required. The present expansion is projected to provide a capacity of 19 mgd. The study will determine the water use projections. Capital projects to provide for the necessary capacity will be identified. These issues will be used to determine the impact on the fee structure of the Authority. A verbal report should be ready for the February 21, 2001 meeting. General Manager Monte Mercer reported that the current rate structure provides for the existing customers to pay for the plant. The impact of new customers on the current ratepayers must be determined. No negative impact should be allowed. The raw water supply must be expanded in order to serve a larger customer base. There will be pressure to close the smaller districts and force a move to a regional authority using surface water. In response to questions from President Gillette, Mercer replied that the contract for raw water with Houston will likely require modification. The Subsidence District has promised assistance with the negotiations with Houston. The $20,000 will be paid from BAWA and reimbursed if the customer base is expanded. The Subsidence District will have funds available to pay for transmission facilities to the new customers. In response to questions from Board member Schulze, Tony Brown reported that the 50-year projection for the Trinity River shows no deficit. There will be sufficient water in the Trinity to provide the needs of the Region. Board member Buenz moved approval of the change order. Board member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Gillette, Schulze and Mundinger Nays: None Adjourn As there was no further business to be transacted, the meeting adjourned at 8:16 a.m. Peter R. Buenz, Secretary