Loading...
1995 01 18 BAWA Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS • OF THE BAYTOWN AREA WATER AUTHORITY January 18, 1995 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, January 18, 1995, at Baytown City Hall in the Don M. Hullum Conference Room with the following attendance: Peter R. Buenz, Secretary Knox Beavers, Board Member Roy L. Fuller, Board Member Absent: Robert L. Gillette, President Dan Mundinger, Vice-President The meeting was called to order with a quorum present, after which the following business was transacted: Consider Minutes for the Meeting Held on September 21, 1994 Board Member Beavers moved for approval of the minutes for the regular session held on September 21, 1994. Board Member Fuller seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz and Fuller Nays: None Receive Audit Report and Financial Statements for Period Ending September 30, 1994 Bill Shireman with the firm of Deloitte & Touche stated that the firm had given the authority and unqualified opinion. He briefly noted that the Authority had changed the estimated remaining depreciable lives of certain equipment and facilities in 1993 to better reflect the remaining economic lives of these assets, but there is nothing unusual as far as 1994 is concerned. Cash is down from last year because last year the City of Baytown paid the Authority after September 30; therefore, the cash is as expected for 1994. The Authority's equity has increased by about $700,000. • 950118-2 Minutes of the BAWA Meeting - January 18, 1995 • Revenues are up about 11% due to an increase in the price of water; however, there was a slight decrease in water sales. Operating expenses are comparable to 1993. There is about $100,000 decrease in supplies and a decrease in appreciation because of the adjustment last year. Cash flows reflect approximately $850,000 for this year versus approximately $2,000,000 last year which is a result of the settlement of cash between BAWA and the City of Baytown after September 1993. This is the only non-comparative transaction in the statement of cash flows. Monte Mercer, Finance Director, explained when one looks at the net change in cash and cash equivalents, comparing a negative on September 1994 of $524,729 to positive on September 30, 1993 of$739,168 and taking that timing change into account, last year there was an increase in cash of $112,000 and this year an increase in cash of $102,000. Page seven of the document reflects debt service requirements through 2002. Page eight addresses cash and cash equivalents. In order to maximize interest earnings, approximately $900,000 of BAWA's cash was pooled with City of Baytown cash; the remainder is invested with TexPool. There has been some concern with TexPool due to the situation in Orange County. Orange County finances were handled differently than TexPool. TexPool's investments are short and liquid. The state treasurer has guaranteed that for every dollar invested, the entity will get that money back plus interest. On Page five reference is made to BAWA being a component unit of the City. The Board will see this terminology used frequently in the future. What has happened is that the Government Standards Accounting Board has issued standards for reporting. In the past there have been entities that impact the financial condition of the primary government unit, but no one would know that until something went wrong. Therefore, recording standards now require component units to be included in the primary government's reporting statements. However, Mr. Shireman emphasized that BAWA is a separate entity and will continue to function as such. The Board complimented the Finance Department for their excellent work in producing the financial statements. Mr. Mercer introduced Donna Sams, Controller for the City of Baytown, who was responsible for the project. Board Member Fuller moved to accept the audit report and financial statements for period ending September 30, 1994. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz and Fuller Nays: None • 950118-3 Minutes of the BAWA Meeting - January 18, 1995 • Consider Request of Lake Municipal Utility District for Reimbursement Bawa has received a request for reimbursement from Lake MUD for the amount of $1 ,421 .25. During the period July 17, 1994 through October 10, 1994, the MUD experienced color tinted water which resulted in complaints from the residents. The district's insurance company handled claims, but the district also incurred additional expenses of$1,421.25. The administration felt that BAWA was selling safe drinking water, although there were times the water was off-color. A contract with this customer, as well as all other customers states that possession and control of water shall remain with seller and its assigns to the point of delivery. The point of delivery for Lake MUD is the master meter along IH-10. The contract further stipulates that possession and control of water delivered under this agreement shall pass from the seller to the buyer at that point of delivery and buyer shall take such title possession and control at that point. Therefore, the administration did not feel that BAWA is responsible for what occurs after delivery and recommended no reimbursement be made. The reimbursement is basically for labor costs associated with Tebco coming out to flush lines during that period. Board Member Fuller moved to deny the request. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz and Fuller Nays: None Discuss Engineering Services Contract with Wayne Smith & Associates Presently, BAWA has no engineering contract in place. With the ground storage tank project coming up, and the possibility of future needs, the administration feels that having an engineering contract in place will give the Authority flexibility. The proposed contract which will be brought to the Board in February for consideration is patterned after the engineering contract with the City of Baytown. General Manager's Report Building Maintenance - Funds were budgeted to effect building maintenance at the plant which extensive roof work has been completed and carpeting has been replaced. • 950118-4 Minutes of the BAWA Meeting - January 18, 1995 • Plant Superintendent - Gordon Leeks, previously employed with the Public Works Department of the City of Baytown, is now plant superintendent. He has extensive background in the water business and laboratory techniques. Fred Pack is now overseeing utilities for the City of Baytown, as well as BAWA. Angelo Vitullo is the new Director of Engineering and Inspections for the City of Baytown. He came from the private sector and has many skills that will be beneficial to both the City of Baytown and BAWA. Adjourn There being no further business to be transacted, the meeting was adjourned. i1 4tAtPt Peter R. Buenz Secretary