1999 12 15 BAWA Minutes•
MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 15, 1999
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, December 15, 1999, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Knox Beavers, Board Member
Absent: Peter R. Buenz, Secretary
Roy L. Fuller, Board Member
The meeting opened with a quorum present, and the following business was
conducted.
Consider Approval of the Minutes for the Special Meeting Held on November 10, 1999
Board Member Mundinger moved to approve the minutes for the special meeting
held on November 10, 1999; Board Member Beavers seconded the motion. The vote
follows:
Ayes:
Nays:
Board Members Beavers, Gillette and Mundinger
None
Consider Approval of the Minutes for the Regular Meeting Held on November 17, 1999
Board Member Mundinger moved for approval of the minutes for the regular
meeting held on November 17 1999; Board Member Beavers seconded the motion.
The vote follows:
Ayes:
Nays:
Board Members Beavers, Gillette and Mundinger
None
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Minutes of the BAWA Meeting — December 15, 1999
Consider Acceptance of Financial Statements for Fiscal Year Ending September 30,
1999 and 1998.
Mike Daws, Finance Director for the City of Baytown, noted that as a result of
operations, BAWA's revenues exceeded expenditures by $754,000 which is twenty-five
percent (25%) less than last year due to water sales being down by six percent (6%).
Water sales were down due to an unusually wet year. The raw water purchases were
also down six percent (6%) which corresponds with sales. Expenses were up slightly,
approximately four and one-half percent (4-1/2%) due to extra efforts to obtain the Texas
Optimization Award.
The Balance Sheet reflects a decrease in cash. A number of month's back,
BAWA decided to use operational money to fund engineering costs for the new plant
expansion. The bonds were sold yesterday and the operating account will be
reimbursed $413,000 from that bond sale.
This report is much thicker than prior years because TNRCC is requiring several
schedules such as budget to actual comparison and a schedule reflecting five years of
operations. In the five year comparison, revenues in 1995 were 4.6 million dollars;
1998, 5.2 million dollars; and 1999, 4.8 million dollars. This reflects that 1998 was an
unusual year and in 1999 there were some dry conditions but not excessive. Mr. Daws
acknowledged Donna Sams, Controller, and her staff, and Fred Pack, Tony Brown, and
their staff for the work that went into development of the Financial Statements.
Mark Tiller, with Tiller and Company, stated that his firm had issued a clean
opinion letter which means that the financial statements prepared by city staff members
present fairly, in all material respects the financial position of the Baytown Area Water
Authority as of September 30, 1999 and 1998, and the results of its operations and its
cash flow for the years then ended in conformity with generally accepted accounting
principles. He noted that expenses were held in line with relation to the revenues. He
directed the Board to Page 10, where under Subsequent Events, the issuance of
revenue bonds in November 1999 is noted as previously mentioned by Mr. Daws.
Mr. Tiller also mentioned that on Page 13, was shown a ten-year history of
revenue, expenses, and funds available for debt service. He reiterated operational staff
had done an excellent job and mentioned that the financial staff had done equally well
in putting the financial statements together.
Board Member Beavers moved to accept the financial statements for fiscal year
ending September 30, 1999 and 1998. Board Member Mundinger seconded the
motion. The vote follows:
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Ayes:
Nays:
Minutes of the BAWA Meeting — December 15, 1999
Board Members Beavers, Gillette, and Mundinger
None
Consider Approval of a Division Order Pursuant to the Oil, Gas and Mineral Lease with
Sanchez Oil & Gas Company
Ignacio Ramirez, City Attorney, stated that the Division Order provided for
payment of 0.01943312 percent interest royalty. Payments are to be made monthly by
payer's check. However, payments less than $25.00 may be accrued before
disbursement until the total amount equals $25.00 or more, or until December 31 of
each year, whichever occurs first.
Board Member Mundinger moved to approve the Division Order. Board Member
Beavers seconded the motion. The vote follows:
Ayes:
Nays:
Board Members Beavers, Gillette and Mundinger
None
Plant Manager's Report
Fred Pack, Director of Utilities for the City of Baytown, stated that tomorrow
BAWA staff would have ninety percent (90%) of the plans for the plant expansion in
hand. On December 29 staff will review those plans with the consulting engineers from
Camp Dresser & McKee Inc.
In January, staff should be coming to the Board with plans and specifications for
building renovations and removal of the old lime silos.
Tony Brown, Plant Superintendent, stated that BAWA has received another six-
month Optimization Award and will be receiving certificates for posting at BAWA and
City Hall from TNRCC. The operators will receive a pin indicating attainment of
optimization for a year. The award must be applied for every six months.
•
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Minutes of the BAWA Meeting — December 15, 1999
Adjourn
There being no further business to be transacted, the motion was made to
adjourn.
•
,?°
Robert L. Gillette
President