Loading...
1999 08 25 BAWA Minutes• • 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 990825-2 Minutes of the BAWA Meeting — August 25, 1999 • $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 990825-3 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 •