1999 08 25 BAWA Minutes•
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
August 25, 1999
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, August 25, 1999, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Absent: Dan Mundinger, Vice President
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 Regular Meeting Held June 16, 1999
Board Member Buenz moved to approve the minutes for June 16, 1999; Board
Member Beavers seconded the motion. The vote follows:
Ayes: Board Members, Beavers, Buenz, and Gillette
Nays: None
Consider Approval of the Proposed 1999/2000 Budget
Fred Pack, Director of Utilities for the City of Baytown, highlighted the Proposed
BAWA 1999/2000 Budget for the Board. He mentioned that the proposed budget is
based on 11.6 mgd, whereas, the 1998/99 Budget was based on 11.2 mgd. The
proposed budget reflects no expected rate increase from the City of Houston for raw
water.
Mr. Pack noted that there is no increase in the number of employees; however, a
vacant operator position is being phased out in lieu of an electronics technician. The
Chemicals account is increasing from $480,000 to $498,900 that is directly related to
production going from 11.2 mgd to 11.6 mgd. The raw water account is going from
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Minutes of the BAWA Meeting — August 25, 1999
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$1,550,000 to $1,610,000 as related to the anticipated volume increase. Therefore,
total supplies are increasing from $2,082,000 to $2,161,000.
A new account is included for 1999/2000 entitled Reserves and Wells under
Maintenance, which is an item for $10,000 to remove all lime silos. Lime has not been
used at BAWA since 1994 because it was a tremendous expense.
Electric Service is related to the increase to 11.6 mgd. Hire of Equipment has
decreased because of less need for crane service. Special Services has been reduced
from $38,000 to $18,000, because there will be no lagoon cleaning next year. Training
expenses have increased from $8,800 to $11,500. The cost for training has increased,
because additional training will be required on the new plant. The total operating
budget is increasing from $3,281,000 to $3,411,000. No capital outlay is included. The
existing BAWA debt will be paid in 2003.
Make Daws, Finance Director for the City of Baytown, explained that the debt for
the four issues outstanding will increase about $200,000 but that will be paid off in
2003. The first year estimated debt requirements are $328,000 for the expansion.
Right now, interest rates are 5.4 percent to 6 percent. BAWA does not have the
revenue to pay the $328,000; therefore, an eight -cent rate increase is included. The
eight cents will generate just over $328,000 based on 11.6 mgd. About 87 days of
working capital is estimated for the year, primarily liquid assets. To fund all three bond
issues at this time would require a twelve -cent increase. The rate increase was
expected for the expansion.
Board Member Buenz moved for approval of the Proposed 1999/2000 BAWA
Budget. Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members, Beavers, Buenz, and Gillette
Nays: None
Consider Approval of a Division Order Pursuant to the Oil, Gas, and Mineral Lease with
Sanchez Oil & Gas Company
The Board previously authorized an agreement with Sanchez Oil & Gas
Company. The division order stipulates how BAWA will be paid. The percentage of
proceeds to BAWA will be .01943312.
Board Member Buenz moved to approve the division order. Board Member
Beavers seconded the motion. The vote follows:
Ayes: Board Members, Beavers, Buenz, and Gillette
Nays: None
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Minutes of the BAWA Meeting — August 25, 1999
Manager's Report
There is one basin still down due to replacement of the freight conveyor.
Therefore, BAWA is producing 15 mgd through two basins with excellent water quality.
Presentations to Board and Staff
Fred Pack, Herb Thomas, and Tony Brown made presentations to the Board and
Staff for attainment of the TOPS Award.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Robert L. Gillette
President
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