1996 12 18 BAWA Minutes •
MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 18, 1996
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, December 18, 1996, 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
Roy L. Fuller, Board Member
Absent: Peter R. Buenz, Secretary
The meeting opened with a quorum present, and the following business was
conducted:
Consider Approval of Minutes for the Regular Meeting Held on November 18,
1996
Board Member Gillette moved for approval of the minutes for the regular meeting
held on November 18, 1996. Board Member Mundinger seconded the motion. The vote
follows:
Ayes: Board Members Gillette, Beavers,
Mundinger, and Fuller.
Nays: None
Consider Acceptance of Financial Statements for Fiscal Years Ending September
30, 1996 and 1995
Mark Tiller, Independent Auditor, Tiller and Company, spoke to the Board
• regarding the Financial Statements and Supplemental Information. Mr. Tiller stated
that on page 3 "Statements of Revenues and Expenses," the net income this year was
$921,813 compared to $765,361 last year and the total operating revenue is
$4,863,260 compared to $4,503,103 because of the hot, dry summer. The expenses
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Minutes of the BAWA Meeting-December 18, 1996
•
were up some probably in conjunction with sales; for instance, maintenance was
$173,261 compared to $166,990. While maintenance is considerably over budget, the
budget did not reflect the increase in water sales. Total operating income of
$1,315,007, about $100,000 over last year, plus interest income less interest expense
gives a net income of $921,813. As a comparison, on page 11, the operating budget
for the year compared to the actual with the variance shown. The balance sheets for
both the comparative years is on page 2. The cash and cash equivalents went up
about $200,000 during the year; the restricted assets of $1,364,892 related to the
bonds and the covenants related to those. Total current liabilities, $642,757, is very
close to the 1995 numbers. The unreserved retained earnings is $5,095,750 and the
total $13,611,807. Page 7 shows that the total indebtedness will be paid off in five or
six years. Page 4 is a statement of cash flows, and the net increase in 1996 from 1995
is $200,000. Mr. Tiller concluded by stating that an audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements.
Mr. Monte Mercer recognized Donna Sams, Comptroller, and Sherry Majors,
Finance. Ms. Majors did a lot of the work on the financial statements and did a really
good job.
Mr. Mercer said that on page 11, budget versus actual, maintenance was over
by almost $80,000 due to lightening strikes and a heavy volume. The revenues were
two percent over budget which is what drives the expenses. This was a significant
effort on the part of the maintenance staff.
Mr. Fred Pack, Director of Utilities, said that Tony Brown and the BAWA staff
worked part of the year without a superintendent, and they did a very good job of
redirecting some expenses and making it work.
Board Member Mundinger moved to accept the Financial Statements. Board
Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Gillette, Beavers,
Mundinger, and Fuller.
Nays: None
Manager's Report
Mr. Bobby Rountree, General Manager, stated that the City of Mont Belvieu is•
still considering the Baytown Area Water Authority as a source for water. They met
Thursday and went over the options again with their committees, but they have not
made a final decision.
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Minutes of the BAWA Meeting - December 18, 1996
Mr. Fred Pack said that the lagoon cleaning approved at the previous meeting is
underway. It should be finished in two to three weeks. The tank baffling project is
underway. The construction company has inspected the inside of the tank and
excavated the underground piping. Gifford Hill is fabricating the underground piping.
The underground piping should be in place in approximately one month. There were
no problems with the freeze. Flows were normal from the plant which means that
residents were not dripping water. The plant is freeze protected as much as possible,
and no problems are expected unless a high wind combined with low temperatures
cause a significant amount of breaks. In such a case, BAWA would shut off meters
where necessary.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Robert L. Gillette, President