2014 01 15 BAWA MinutesMINUTES OF Till;REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
January 15,2014
The Board of Directors of the Baytown AreaWater Authority (BAWA)met in a Regular
Meeting on Wednesday.January 15.2014.at 9:07 A.M..in the Council Chamher of Baytown
City Hall.2401 Market Street.Baytown.Texas with the following in attendance:
Brenda Bradley Smith President
Wayne Baldwin Sceretary
Brandon Benoit Director
Rohert D.Leiper General Manager
Karen Horner Assistant General Counsel
Leiicia Brysch Assistant Secretary
President Bradley Smith convened the January 15.2014.Baytown Area Water Authority
(BAWA)Board Regular Meeting with a quomm present at 9:07 A.M..all members were present
witli the exception on Directors Frank McKay and Mike Wilson who were both absent.
1.MINUTES
u.Consider approving the minutes of tlie Baylown Area Water Authority Special
Meeting,held on December in,2013.
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
approving the December 18.2013.BAW'rA Board Special Meeting minutes.The vole was as
follows:
Ayes:Secretary Wayne Baldwin.Director Brandon Benoit.President Brenda
Bradley Smith
Nays:None
Other:Director Frank McKay 111 (Absent),Director Mike Wilson (Absent)
Approved
2.PROPOSED RESOLUTIONS
a.Consider ;i resolution approving the Baytown Area Water Authority's Investment
Policy and Strategy Statement in accordance with the Public Funds Investment Act.
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January 15,2014
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General Manager Leiper presented the agenda item and slated that this is the annual renewal of
the approval of the Baytown Area Water Authority (BAWA)Investment Policy and Strategy
Statement.He stated that the only substanlive changes made were the authorized investment
officers of Louise Ridunan.Brent Vowel!and Renee Savage.
A motion was made by Seeretary Wayne Baldwin and seeonded by Director Brandon Benoit
approving Resolution No.2014-02.The vote was as follows:
Ayes:Seeretary Wayne Baldwin,Director Brandon Benoil.President Brenda
Bradley Smith
Nays:None
Other:Director Frank McKay Ml (Absent).Director Mike Wilson (Absent)
Approved
RESOLUTION NO.2014-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ADOPTING THE BAYTOWN AREA WATER
AUTHORITY'S INVESTMENT POLICY AND STRATEGY;AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3.REPORTS
a.Receive the Baytown Area Water Authority's Quarterly Investment Report for the
Quarter Ending December 31,2013.
b.Receive the Baytown Area Water Authority's Revenues and Expenditures Report
for the Quarter Ending December 31,2013.
c.Receive the Baytown Area Water Authority's Annual Financial Report for the fiscal
year ending September 30,2013.
President Bradley Smith stated that agenda items 3.a.,3.b.,and 3.c.would be received together.
Finance Director Louise Richman presented the Baytown Area Water Authority's Quarterly
Investment Report and the Revenues and ExpendituresReport for the Quarter Ending December
31,2013.She stated in regards to the revenues that the water sales are on target and that the
miscellaneous item in the report was not budgeted for,but was a late fee for Harris County Water
District.
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January 15,2014
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Ms.Richman stated that the first quarter expenditures were low.She stated that as oi'January.
BAWA is fully staffed and the personnel would he tracked according to the budget.She stated
that the largest items in the supplies were the City of Houston's invoice and chemical supplies.
She stated that the invoice was caught up in January and will reflect in the next quarter statement
whereas the chemical supplies will increase in thehotter months.Ms.Richman stated that
maintenance and service expenditures were right an 18%of budget.She stated that the capital
outlay expenditure of S71,000 was an annual payment,which was from several years ago when
there were some major BAWA expenditures,to replenish the CIP Funds that BAWA used which
will be charged in January.Ms.Richman stated that the expenditures for the debt area
prescribed time table which will come up in the second quarter.
Ms.Richman stated that the investment report reflects approximately $15.6 million in the
investment fund which includes BAWA Operating.CIP.and the remaining funds of the bonds
sold.She stated that the interest rate was .073%.
Stephanie Harris,representative of Belt Harris Pechachek,LLLP presented the Baytown Area
Water Authority's Annual Financial Report for the fiscal year ending September 30,2013,and
stated that the FY12-13 report is a clean unmodified opinion which is the highest level of
assurance that they can provide as the independent auditor.She stated that the financial
statements were materially correct and that all disclosures required by general accepted
accounting principles were included.She stated that as of September 30.2013.BAWA had total
assets of S50.4 million versus S49.5 million in the prioryear.She stated that total liability was
$19.3 million compared to $21.6 million the prior year leaving a positive net asset balance of
S31.1 million versus the S28 million the prior year.Ms.Harris stated that the total operating
revenues were $11.1 million versus SI0.7 million the prior year and that the operating income
was S3.6 million versus $3.9 million the prior year for an income of S3.1 million versus S6.2
million the prior year.
4.MANAGER'S REPORT
a.The next Baytown Area Water Authority meeting is scheduled for Wednesday,
February 19,2014,at 9:00 A.M.,in the City Council Chamber,2401 Market Street,
Baytown,Texas 77520.
General Manager Leiper stated that Jose Pastrana,Director of Engineering would provide an
update regarding the 36 inch BAWA water line break issue.He stated that the line was powered
down and identified for certain as the City's line.Additionally,he stated that the line was
powered backup and didn't blow.
Mr.Pastrana slated that they were pursuing the suggestion that was presented at the last meeting
regarding the water leak.He stated that they are taking a cautious approach to the process to
eliminate causing a major failureto the system.He stated that the leak is in located in a highly
congested area that includes a gas line being near which must be cleared first in order to find out
what caused the leak.He stated that they are working with the gas company to resolve this issue.
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January 15,2014
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General Manager Lcipcr stated that something must be done for the entire line and every option
is being explored that's the least invasive or intrusive on service,as well as.the lowest but most
reliable repair cost.He stated that for test purposes,the plant was shut down;the line was
clamped and bled off.then brought backup with minimal impact.Additionally,he stated that
he's confident that there is a pretty good size window to operate with this section isolated.
5.ADJOURN
With there beingno further business to discuss.President Bradley Smith adjourned the January
15,2014,Baytown Area Water Authority (BAWA)Board Regular Meeting at 9:24 A.M.
Leticia Bryseh,Assistant
City of Baytown