1995 12 13 BAWA Minutes MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
• OF THE BAYTOWN AREA WATER AUTHORITY
December 13, 1995
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas,
met in regular session on Wednesday, December 13, 1995, at 7525 Thompson Road, in
the BAWA Conference Room with the following 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 was called to order with a quorum present, after which the following
business was transacted:
Consider Approval of Minutes for the Meeting Held on November 15, 1995
Board Member Beavers moved for approval of the minutes for the meeting held on
November 15, 1995. Board Member Mundinger seconded the motion. The vote follows:
Ayes: Board Members Beavers, Fuller, Gillette and Mundinger
Nays: None
Consider Authorizing Assignment No. 2 to the Contract With Wayne Smith &
Associates for Addition of Baffling to Ground Storage Tank
Herb Thomas, Plant Manager, recommended approval of Assignment No. 2 to the
contract with Wayne Smith &Associates for addition of baffling to one ground storage tank
for a lump sum amount of $16,100, which is approximately six (6%) percent of the
construction cost and is in line with the contract in place with Wayne Smith & Associates.
Board Member Mundinger moved to authorize Assignment No. 2 to the contract with
Wayne Smith &Associates. Board Member Fuller seconded the motion. The vote follows:
Ayes: Board Members Beavers, Fuller, Gillette and Mundinger•
Nays: None
951213-2
Minutes of the BAWA Meeting - December 13, 1995
Consider Acceptance of Financial Statements for Period Ending September 30, 1995
Mark Tiller with the firm of Tiller and Company called attention to the Opinion Letter
provided as part of the Financial Statements for the period ending September 30, 1995.
That letter indicates the financial statements are the responsibility of the management of
BAWA, and Tiller and Company's responsibility is to express an opinion of the financial
statements based on their audit which is a "clean opinion."
The Balance Sheet reflects total assets for BAWA for the period ending September
30, 1995 equal $13.6 million, while for that period ending September 30, 1994 total assets
equaled $12.9 million. In the liabilities section, even though bonds payable is reduced,
there was an issuance of $815,000 in bonded indebtedness which is shown in the
footnotes.
Statements of Revenues, Expenses and Changes in Retained Earnings for the
years ended September 30, 1995 and 1994 show net income of$765,361 for the period
ending September 30, 1995.
Footnotes are similar to those of the past. Footnote 3 indicates the issuance of
$815,000 Revenue Bonds, with $900,000 having been retired.
The Commitments and Contingencies Footnotes address the contract with the City
of Houston and changes in the contract.
Mr. Tiller emphasized that there is not a significant amount of change in the financial
statements from previous years.
Board Member Beavers moved to accept the Financial Statement and Supplemental
Information for the fiscal year ended September 30, 1995 and 1994; Board Member
Mundinger seconded the motion.
In response to board inquiry, Monte Mercer, Assistant City Manager/Director of
Finance, explained that after all the transactions, BAWA has budgeted to keep cash the
same; however, an additional $200,000 in cash was accumulated because of the
difference in cost of raw water. The vote follows:
Ayes: Board Members Beavers, Fuller, Gillette and Mundinger
Nays: None
Mr. Thomas emphasized that unplanned things happen at the plant, but the people
• who operate the plant are aware of what the budget for the plant is and when unforeseen
problems occur look at methods to handle those problems within budget, year after year.
951213-3
Minutes of the BAWA Meeting - December 13, 1995
Mr. Mercer emphasized that BAWA is operating on a very conservative budget with
$200,000 as the difference between being over or not. The debt will roll off in 2002, 2003
which gives a degree of comfort.
Manager's Report
Harris County Fresh Water Supply District No. 1-A (McNair) - Harris County Fresh
Water Supply District No. 1-A has been approved for a loan of$800,000 from the Texas
Water Development Board to complete its wastewater treatment plant improvements. The
loan is financed for twenty (20) years to expire February 2016, while District No. 1-A's
contract with BAWA is due to expire June, 2005. Therefore, the District is requesting an
amendment to their contract. If possible the Administration will have the contract prepared
for a special meeting of the BAWA Board.
Water Distribution - The budget is based on providing 11 mgd. Through December
8, 1995, BAWA has been averaging 10.45 mgd.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Dan M. Mundinger, Vice-' resident
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