The URL can be used to link to this page

1998 07 15 BAWA Minutes• MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY July 15, 1998 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, July 15, 1998, 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 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 Minutes for the Regular Meeting on May 20, 1998 Board Member Buenz moved for approval of the minutes for the regular meeting held on May 20, 1998. Board Member Fuller seconded the motion. The vote follows: Ayes: Nays: Board Members Beavers, Buenz, Fuller, Gillette, and Mundinger None Consider Approval of Interlocal Agreement with General Services Commission to Conduct Surveys to Ascertain the General Prevailing Wage Rate Ignacio Ramirez, City Attorney, explained that pursuant to the prevailing wage law, BAWA must determine the general prevailing wage rate of per diem wages for each craft or type of work needed to execute a public work construction contract. In 1995, the City and BAWA elected to conduct their own survey to establish the prevailing wage rates. Today, this may be accomplished by entering an interlocal agreement with the General Services Commission (GSC). The proposed agreement authorizes BAWA to obtain wage rate surveys from the GSC at no cost. The agreement has a term of one year which automatically renews. City Council approved this same type agreement on July 9. 980715-2 • Minutes of the BAWA Meeting — July 15, 1998 Board Member Mundinger moved to approve execution of an Interlocal Agreement with General Services Commission to conduct surveys to ascertain the general prevailing wage rate. Board Member Buenz seconded the motion. The vote follows: Ayes: Nays: Board Members Beavers, Buenz, Fuller, Gillette, and Mundinger None Consider Approval of Engineer to Develop Plans and Specifications for a Flight Conveyor Type Sludge Collector System. Fred Pack, Director of Utilities for the City of Baytown, requested board authorization to negotiate a contract with Camp, Dresser and McKee, Inc. (CDM) to develop plans and specifications for a flight conveyor type sludge collector system. The existing system is obsolete. Current engineering is a chain of flight conveyor system. CDM has extensive experience with not only engineering plants but also retrofitting and this will be a retrofit of new technology into the existing facility. Board Member Fuller moved to authorize the negotiations with Camp, Dresser, and McKee, Inc. Board Member Beavers seconded the motion. The vote follows: Ayes: Nays: Manager's Report Board Members Beavers, Buenz, Fuller, Gillette, and Mundinger None Distribution — In June, BAWA averaged 14 mgd with a peak of 17 mgd. The plant is designed for 13 mgd, but has been functioning at 17 mgd because of drought conditions and additional customers. Herb Thomas, Plant Manager, noted that for the last eight months, there has been a tremendous interest in Baytown. He had a map which depicted several areas of growth. He emphasized that there are 1,508 single family residential homes on the books, 408 manufactured homes, and 927 apartment units. In order to address this proposed growth, the City of Baytown has sold bonds to construct a new sewer system along Tri-Cities Beach Road and the 1-10 area, and there are plans to construct a new sewer plant northeast of the city. 980715-3 • Minutes of the BAWA Meeting — July 15, 1998 In addition, Council approved preparation of plans and specifications for a water line up Sjolander Road to Interstate 10, which will give another source of water to the Interstate 10 area. New development and drought conditions are taking a toll on the plant. At 17 mgd, BAWA personnel cannot effect plant maintenance. Therefore, it is timely to look at another transmission line from the plant, as well as plant expansion. With BAWA debt ending in 2002, this can be accomplished without a rate increase. The method by which water is delivered to the city includes a 12-inch water line all the way down 1-10, plus a 16-inch line down Decker Drive. The main BAWA line is the 36-inch line from the plant down Cedar Bayou Lynchburg which terminates at Barkaloo. The key component is the water line leaving the BAWA plant, the 36-inch line. All laterals feed off of that 36-inch line. What is needed very badly is another line from BAWA to Wallisville Road. In the event of loss of the 36-inch line, there would be another source to feed the laterals to the city. The funding needed for plant expansion and more storage capacity is 10 -12 million dollars. The transmission line will cost approximately 5 million dollars. In response to inquiry from the Board, Mr. Thomas stated that generally speaking modules are added to facilities such as BAWA as needed. One of the things the staff will look at is whether the transmission line should be a BAWA line or a City of Baytown line. The staff will work out a plan over the next several months and come back to the board. Mr. Thomas emphasized that there isn't enough capacity at the plant to serve the 1,000 homes slated north of 1-10. Turbidity Meters — Mr. Thomas invited the Board to look at the newly installed turbidity meters prior to leaving the plant. Adjourn There being no further business to be transacted, the meeting was adjourned. Peter R. Buen Secretary CITY OF BAYTOWN BAYTOWN WATER AUTHORITY REVENUE BONDS DETAIL DEBT AMORTIZATION SCHEDULES Fiscal Interest Principal Interest Interest Annual Principal Year Rate Due 5/01 Due 5/01 Due 11/01 Requirement Outstanding Revenue Bond, Series 1978 Date of Issue - September 1, 1991 Term - 22 Years 1995 1996 1997 1998 5.75% $ 975,000 $ 5.80% 1,050,000 5.90% 1,150,000 170,406 $ 142,375 111,925 170,406 $ 142,375 111,925 1,315,812 1,334,750 1,373,850 5,775,000 4,800,000 3,750,000 2,600,000 1999 6.00% 1,250,000 78,000 78,000 1,406,000 1,350,000 2000 6.00% 1,350,000 40,500 40,500 1,431,000 S 5,775,000 $ 543,206 $ 543,206 $ 6,861,412 Revenue Bond, Series 1979 Date of Issue - September 1, 1979 Term - 23 Years 1995 1996 1997 1998 6.38% $ 7.30% 7.30% $ 79,688 $ 79,688 79,688 79,688 $ 79,688 79,688 159,376 159,376 159,376 2,500,000 2,500,000 2,500,000 2,500,000 1999 7.30% 79,688 79,688 159,376 2,500,000 2000 2001 2002 7.30% 7.30% 7.30% 1,250,000 1,250,000 79,688 79,688 39,841 79,688 79,688 39,840 159,376 2,500,000 1,409,376 1,250,000 1,329,681 - $ 2,500,000 $ 517,969 $ 517,968 $ 3,535,937 Revenue Bond, Series 1994 Date of Issue - November 1, 1994 Term - 9 Years 1994 1995 1996 1997 1998 5.95% $ 5.95% 5.95% 5.95% - $ 24,247 $ 24,247 24,246 24,246 24,247 $ 24,247 24,246 24,246 48,494 48,494 48,492 48,492 $ 815,000 815,000 815,000 815,000 815,000 1999 5.95% 24,246 24,246 48,492 815,000 2000 2001 2002 2003 5.95% 5.95% 5.95% 5.95% 24,246 24,246 24,246 815,000 24,246 24,246 24,246 24,246 48,492 48,492 48,492 839,246 $ 815,000 $ 218,216 $ 193.970 S 1,227,186 815,000 815,000 815,000 Revenue Bond, Series 1997 Date of Issue - December 4, 1997 Term - 10 Years 1998 $ $ 33,503 $ 33,503 $ 67,006 $ 1,350,000 1999 33,503 33,503 67.006 1,350,000 2000 2001 2002 2003 7.375% 2004 4.375% 2005 4.450% 2006 4.550% 2007 4.600% 2008 4.700% 33,503 33,503 33,503 200,000 33,503 205,000 26,128 215,000 21,644 230,000 16,860 245,000 11,628 255,000 5,992 1,350,000 $ 283,270 33,503 33,503 33,503 26,128 21,644 16,860 11,628 5,993 $ 249,768 $ 67,006 67,006 67,006 259,631 252,772 253,504 258,488 262,621 260,992 1,883.038 1,350,000 1,350,000 1,350,000 1,150,000 945,000 730,000 500,000 255,000 10 • BAYTOWN AREA WATER AUTHORITY Baytown Area Water Authority, "BAWA", is a water authority created by Texas Legislature to purchase and distribute surface and/or underground supplies for the City and surrounding communities. The City accounts for approximately 90% of BAWA's annual sales. BAWA is considered a component unit of the City of Baytown. 1 • BAYTOWN AREA WATER AUTHORITY (BAWA) ORGANIZATION CHART Board of Directors General Manager Plant Manager Director of Utilities Superintendent Water Treatment Baytown Area Water Authority • • • MAJOR BUDGET ISSUES Fiscal Year 1998-99 BAYTOWN AREA WATER AUTHORITY This fund accounts for the Baytown Area Water Authority (BAWA). BAWA is a water authority created by the Texas Legislature to supply water for the City of Baytown (City) and surrounding communities. The City accounts for approximately 90% of BAWA's annual sales, BAWA is a separate legal entity, however, it is considered a component unit of the City. Total proposed expenditures for the 1999 budget are $4,828,102, an increase of $49,194. I. REVENUES A. Water Volume The 1998/99 budget projects sales of $4,835,982 or 11.2 million gallons per day (mgd) based upon average rainfall years. Fluctuations to average rainfall can significantly impact actual sales. There is no proposed increase in BAWA rates. II. EXPENDITURES A. Raw Water Supply Cost BAWA purchases raw water from the City of Houston. The raw water supply contract with the City of Houston is in effect through the year 2020 and sets the maximum amount of raw water to be delivered to the BAWA plant at 11.9 mgd without penalties. BAWA anticipates no rate increase from the City of Houston for next year; therefore, there will be no pass through increase to the cost of raw water for the 1999 fiscal year. B. Capital Projects Program A $1.3 million bond issue in 1997 provided funds for capital projects through the year 2001. These funds were not identified for increasing plant capacity. C. Debt Service The debt service payment for fiscal year 1999 is $1,680,874. The average debt service is approximately $880,000 million with a peak of $1,705,874 million in the year 2000 and final payoff of existing debt in fiscal year 2008. Payments from 2004 through 2008 average approximately $263,000. Due to the short duration of the existing debt, plans are to use reserves established for debt service to supplement current funding of $1,500,518. III. WORKING CAPITAL A. In order to maintain fiscal stability governmental entities maintain a working capital balance to meet daily liquidity needs. Appropriate levels of working capital vary from entity to entity based on the relative impact of particular circumstances or financial conditions. The goal for working capital is 45 to 60 days operating capital. Working capital is defined as current assets (e.g. cash, investments, accounts receivable) less current liabilities (e.g. accounts payable). Projected working capital is estimated to be 81 days as of September 1998. 3 • CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY FUND 510 BUDGET SUMMARY BY FUND Actual 1996-97 Budget 1997-98 Estimated 1997-98 Proposed 1998-99 Revenues Sale of Water - Baytown Sale of Water - Other Miscellaneous Total Revenues Expenditures Personnel Services Supplies Maintenance Services Total Operating Capital Outlay Transfers Out Contingency Total Expenditures Excess (Deficit) Revenues Over Expenditures Working Capital - Beginning Working Capital - Ending $ 4,072,767 486,991 21,374 $ 4,261,777 488,023 29,108 $ 4,262,207 522,686 22,286 $ 4,346,280 489,702 22,300 4,581,132 4,778,908 4,807,179 4,858,282 564,211 1,867,273 127,151 412,144 583,096 2,049,800 164,000 435,440 599,715 606,480 2,030,400 2,082,000 163,000 159,500 399,250 433,550 2,970,779 27,859 1,547,618 3,232,336 1,500,518 46,054 3,192,365 3,281,530 1,500,518 1,500,518 46,054 4,546,256 4,778,908 4,692,883 4,828,102 34,876 1,042,620 1,077,496 114,296 1,077,496 30,180 1,191,792 S 1,077,496 $ 1,077,496 $ 1,191,792 $ 1,221,972 Proposed Budget 1998-99 by Expenditure Type Debt Service 31% Operating Expenses 24% Personnel Services 13% Raw Water Purchases 32% CITY OF BAYTOWN BAYTOWN AREA WATER AUTHORITY FUND 510 OPERATING RESULTS Actual 1996-97 Budget 1997-98 Estimated Proposed 1997-98 1998-99 Operating Revenues Sale of Water - Baytown Sale of Water - Other Total Revenues Operating Expenses Personnel Services Raw Water Purchases Supplies Maintenance Services Depreciation Total Expenditures Operating Income (Loss) Non -operating Interest Revenue and Other Interest Expenses and Other Total Non -operating Expenses Net Income (Loss) $ 4,072,767 486,991 4,559,758 $ 4,261,777 488,023 4,749,800 $ 4,262,207 $ 4,346,280 522,686 489,702 4,784,893 4,835,982 564,211 1,461,421 405,853 127,149 412,144 426,723 583,096 1,550,000 499,800 164,000 481,494 418,539 599,715 606,480 1,530,000 1,550,000 500,400 532,000 163,000 159,500 399,250 479,604 418,539 460,393 3,397,501 3,696,929 3,610,904 3,787,977 1,162,257 21,374 (497,619) (476,245) 1,052,871 29,108 (350,518) (321,410) 1,173,989 1,048,005 22,286 (350,518) (328,232) 22,300 (250,518) (228,218) $ 686,012 $ 731,461 $ 845,757 $ 819,787 Reconciliation of Net Income (Loss Net Income (Loss) Principal Debt Retirement Capital Outlay Depreciation Revenues Over (Under) Expenditures to Revenues Over (Under) Expenses: 686,012 (1,050,000) (27,859) 426,723 731,461 (1,150,000) 418,539 845,757 (1,150,000) 418,539 819,787 (1,250,000) 460,393 34,876 $ $ 114,296 $ 30,180 • • • CITY OF BAYTOWN PROGRAM SUMMARY 3070 BAYTOWN AREA WATER AUTHORITY Program Description Operate and maintain a 13.5 MGD design capacity surface water treatment facility with a projected flow of 11.2 MGD in fiscal year 1998-99 and a certified bacteriological laboratory. Following and complying with the TNRCC Rules and Regulations for Public Water Supplies adopted 1992, National Primary Drinking Water Regulations, Safe Drinking Water Act, Surface Water Treatment Rule, and the Criteria for Certified Bacteriological Laboratories. Providing BAWA's customers with high quality, safe drinking water and consistent water pressure for fire protection. Major Goals • Maintain water quality necessary to be classified as "Meeting Optimum Corrosion Control" by TNRCC. • Maintain "Superior Public Water System" status. • Develop and adopt Optimization Standards as classified by TNRCC. Workload Measures 1997 Actual • Operate the bacteriological laboratory in a manner that exceeds the requirements as set fourth by Texas Department of Health. • Develop and maintain a staff of highly trained water professionals to better serve customers. Major Objectives • Produce 11.2 MGD of water. • Maintain finished water turbidity consistently less than 0.1 NTU. • Provide QA/QC, and mathematical training for personnel. • Meet the lead/copper rule for the seventh year of monitoring. • Increase public relations by working with the educational system in the area to provide more tours of the facility. 1998 Budget 1998 Estimated 1999 Projected 1. Customers Served 2. Number of customer connections 3. Bacteriological Samples received 4. Customer water quality calls 5. Average MGD of water produced Performance Measures 7 21,500 1,164 50 11 7 21,500 1,165 50 11 7 21,500 1,165 50 11 7 21,600 1,170 50 11 1. Days without interruption of service 2. Days finished water <0.5 3. Bacteriological samples analyzed 4. Customer water quality calls investigated 365 365 1,164 50 365 365 1,160 50 365 365 1,165 50 365 365 1,170 50 • • CITY OF BAYTOWN SERVICE LEVEL BUDGET 5101 BAYTOWN AREA WATER AUTHORITY Acct# Acct Description 1997 1998 1998 1999 Actual Budget Estimated Proposed 7100 Personal Services 71031 Contract Personnel BAWA $ 564,211 $ 583,096 $ 599,715 $ 606,480 Total Personal Services 564,211 583,096 599,715 606,480 7200 Supplies 72001 Office 2,457 2,300 2,300 2,500 72002 Postage 386 700 700 800 72007 Wearing Apparel 4,130 6,000 6,000 7,000 72016 Motor Vehicle 2,832 3,200 3,500 3,500 72021 Minor Tools 857 2,000 2,000 2,000 72026 Cleaning & Janitorial 1,459 2,000 2,300 2,500 72031 Chemical 363,115 450,000 450,000 480,000 72032 Medical 437 600 600 600 72041 Educational 791 1,000 1,000 1,100 72045 Computer Software Supplies 738 - 72051 Untreated Water 1,461,421 1,550,000 1,530,000 1,550,000 72052 Treated Water 24,162 - 72055 Laboratory Supplies 4,489 32,000 32,000 32,000 Total Supplies 1,867,274 2,049,800 2,030,400 2,082,000 7300 Maintenance 73011 Buildings 2,941 3,000 3,000 3,000 73021 Filtration Plants 24,000 24,000 20,000 73025 Streets Sidewalks & Curbs 773 500 500 500 73027 Heating & Cooling System 491 3,000 3,000 3,000 73028 Electrical Maintenance 45,134 50,000 50,000 50,000 73041 Office Furn & Equip 1,500 1,500 1,500 73042 Machinery & Equipment 65,771 75,000 75,000 75,000 73043 Motor Vehicles 9,794 6,000 6,000 6,000 73045 Radio & Testing Equipment 768 1,000 500 73061 Miscellaneous 1,477 Total Maintenance 127,149 164,000 163,000 159,500 7400 Services 74001 Communication 8,455 9,240 10,000 11,200 74002 Electric Service 301,000 320,000 315,000 320,000 74011 Hire Of Equipment 19,362 12,000 12,000 12,000 74012 Insurance 24,047 56,000 24,000 24,000 74021 Special Services 38,418 12,000 12,000 38,000 74022 Audits 8,010 8,500 8,500 9,000 74036 Advertising 444 600 600 600 74041 Travel & Reimbursable 3,516 4,000 4,000 4,000 7 • • CITY OF BAYTOWN SERVICE LEVEL BUDGET 5101 BAYTOWN AREA WATER AUTHORITY Acct# Acct Description 1997 1998 1998 1999 Actual Budget Estimated Proposed 74042 74051 74071 Education And Training Rents Association Dues Total Services Total Operating 8000 Capital Outlay 84041 Furniture & Fixtures 84042 Machinery And Equipment 84043 Motor Vehicles Total Capital Outlay 3,899 7,800 7,800 8,800 4,578 4,450 4,500 5,000 416 850 850 950 412,145 435,440 399,250 433,550 2,970,779 3,232,336 2,702 13,314 11,843 3,192,365 3,281,530 27,859 9000 Other Financing Uses 91511 To Bawa Debt Service 1,547,618 1,500,518 1,500,518 1,500,518 Total Other Financing Uses 1,547,618 1,500,518 1,500,518 1,500,518 9900 Contingencies 99001 Unforeseen Expenses 46,054 46,054 Total Contingencies 46,054 46,054 TOTAL DEPARTMENT S 4,546,256 $ 4,778,908 $ 4,692,883 $ 4,828,102 • Series, 1978 Series, 1979 Series, 1994 Series, 1997 CITY OF BAYTOWN BAYTOWN WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Amount Revenue Amount of Outstanding Bonds Issue October, 1998 11,850,000 $ 2,600,000 $ 1,250,000 $ 156,000 $ 1,406,000 5 1,350,000 2,500,000 2,500,000 - 159,376 159,376 2,500,000 815,000 815,000 48,492 48,492 815,000 1,350,000 1,350,000 - 67,006 67,006 1,350,000 $ 7,265,000 $ 1,250,000 $ 430,874 $ 1,680,874 $ 6,015,000 Requirements Fiscal Year 1998-99 Principal Interest Total Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1,250,000 1,350,000 1,250,000 1,250,000 1,015,000 205,000 215,000 230,000 245,000 255,000 430,874 355,874 274,874 195,179 83,877 47,772 38,504 28,488 17,621 5,992 1,680,874 1,705,874 1,524,874 1,443,179 1,098,877 252,772 253,504 258,488 262,621 260,992 5 7,265,000 $ 1,479.055 $ 8.744,055 Amount Outstanding Sept., 1999 I.800 - 1.600 - 1.400 1 a 1.200 2 1.000 '-'0800 5 0.600 0.400 0 200 - 0.000 1999 2000 2001 Combined BAWA Debt, All Series Debt Requirement to Maturity 2002 2003 2004 2005 Fiscal Year 2006 2007 2008 0 Interest O Principal • 9