The URL can be used to link to this page

1989 03 15 BAWA Minutes S903 15-T Minutes of the BAWA Meeting - March 15, 1989 • Consider Policy Regarding Moratorium On Removal of Penalty Provision For Use Of Water In Excess of Ten ( 10%) Over Minimum Take or Pay The board previously enacted a moratorium on removal of penalty provisions for use of water in excess of 10I over minimum take or pay in order to encourage the use of water , and has considered changing the contract to put this provision into effect. However , the administration feels that this policy should be considered on a yearly basis. The plant manager stated that $24,500 in extra revenue over and above the minimum take or • pay was received as a result of penalty removal . If the penalty had been in effect , BAWA would have collected $5,800 in penalty charges. There is no way to determine if the surcharge were in effect if the districts would have used the extra water. However, since there was no surcharge, the districts were free to purchase as much water as necessary from BAWA. The other side of the issue is that BAWA still has a surcharge with the City of Houston. One of the districts could have a large expansion and at that point help BAWA on its surcharge. Therefore, the administration is recommending extending the policy for another twelve months. Board member Buenz moved to extend the moratorium on removal of penalty provisions for use of water in excess of 10% over minimum take or pay for another twelve months. Board member Mundinger seconded the motion. The vote follows: Ayes: Board members Buenz , Gillette and Mundinger Nays: None Consider Selection of Bank Depository Two bids were received for the depository contract. The bid of Citizen 's Bank & Trust was the better bid with Citizen 's agreeing to pay BAWA interest on time deposits of $100,000 or more at a rate equal to the interest rate for U. S. Treasury bills of like maturity, plus 0. 125 percentage points. The administra- tion recommended selection of Citizen 's Bank & Trust Company as the BAWA depository for another two year period.