2010 02 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
February 17, 2010
The Board of Directors of the Baytown Area Water Authority (BAWA), Harris County,
Texas, met in a Regular Meeting on Wednesday, February 17, 2010, at 8:00 A.M. at the
Baytown Area Water Authority's Fritz Lanham Water Treatment Facility in the
Conference Room, 7425 Thompson Road, Baytown, Texas, with the following in
attendance.
Wayne Baldwin Director
William Gidley Director
Dan Mundinger Vice President
Brenda Bradley Smith Secretary
John Sandhop President
Garrison C. Brumback General Manager
Ignacio Ramirez, Sr. General Counsel
Leticia Garza Assistant Secretary
President Sandhop convened the February 17, 2010 Regular Meeting with a quorum
present at 8:00 A.M.
1. MINUTES
a. Approve the Minutes of the Baytown Area Water Authority (BAWA)
Board Regular Meeting held on January 20, 2010.
A motion was made by Director Mundinger, seconded by Director Smith approving the
minutes from the January 20, 2010 BAWA Regular Meeting. The vote was as follows:
Ayes: Directors: Baldwin, Mundinger, Smith, Gidley,
and President Sandhop
Nays: None
The motion carried.
Page 2 of 5 Minutes of the February 17, 2010 BAWA Board Meeting
2. BUSINESS ITEMS
a. BAWA Final Rate Adjustment Plan - Finance.
In a joint meeting with the Baytown City Council, the BAWA Board was presented with
the results of the commissioned rate study by Burton and Associates. The results of the
final two scenarios and their impact are included with this item. The variable under
consideration is the ratio of debt service coverage. A higher ratio requires higher
reserves, however is favorably looked on by bond rating agencies.
Scenario One (1) has a target ratio of 1.20 while Scenario Two (2) has a target ratio
of 1.30.
The Final Rate Adjustment Plan selected by the BAWA Board will be used to develop
the BAWA's future utility rates, as well as those of the City.
Motion was made by Director Mundinger, seconded by Director Baldwin approving the
Final Rate Adjustment Plan as Scenario 1 with a 1.3 target ratio. The vote was as follows:
Ayes: Directors: Baldwin, Mundinger, Smith, Gidley,
and President Sandhop
Nays: None
The motion carried.
b. Annual Financial Report for the Year Ended September 30, 2009 - Finance.
The City of Baytown Finance Department along with Belt Harris & Associates, LLLP,
prepared and presented the Annual Financial Report for the fiscal year ended September
30, 2009. The report was delivered to the Board by Nathan Kroupe, a representative of
Belt Harris & Associates, LLLP who stated that the Baytown Area Water Board revenues
are at 6.7 million with 5.7 million in expenses, resulting in a remaining 1 million and has
an estimated 17 million in net assets.
3. PROPOSED RESOLUTIONS
a. Annual Cationic Polymer Contract - General Manager.
General Manager, Garry Brumback presented the agenda item and stated that Resolution
No. 2010 -02 awards the Annual Cationic Polymer Contract to Polydyne Inc. in the
amount of $90,300.00 contingent upon them coming into compliance with Texas
Secretary of State.
Page 3 of 5 Minutes of the February 17, 2010 BAWA Board Meeting
The bids were opened Monday, January 25, 2010, at 2:00 p.m. with Polydyne Inc. having
the lowest bid at $90,300.00 (350,000 pounds @ $.258 per pound). The
previous contract dated February 2008, was awarded to Polydyne Inc. for $105,000
(350,000 pounds @ $30 per pound). We are very satisfied with this contract.
Motion was made by Director Baldwin, seconded by Director Mundinger approving
Resolution No. 2010 -02. The vote was as follows:
The motion carried.
Ayes: Directors: Baldwin, Mundinger, Smith, Gidley
and President Sandhop
Nays: None
RESOLUTION NO.2010 -02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF
POLYDYNE, INC., FOR THE ANNUAL CATIONIC POLYMER
CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN
AREA WATER AUTHORITY, IN THE AMOUNT OF NINETY
THOUSAND THREE HUNDRED AND NO /100 DOLLARS
($90,300.00); CONTINGENT UPON POLYDYNE, INC., COMING
INTO GOOD STANDING WITH THE TEXAS SECRETARY OF
STATE; MAKING OTHER PROVISIONS RELATED THERETO; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
b. Annual Sodium Hydroxide Contract - General Manager.
General Manager, Garry Brumback presented the agenda item and stated that Resolution
No. 2010 -3 awards the Annual Sodium Hydroxide Contract to FSTI, Inc., in the amount
of $75,620.
The bids were opened Monday, January 25, 2010, at 3:00 p.m. with FSTI, Inc., having
the lowest bid at $75,620 (407,000 pounds @ .1325 per pound at 50% and 290,000
pounds @ .0748 per pound at 25 %). The previous contract dated February 2008, was
awarded to Univar USA for $193,517 (407,000 pounds @ $.26 per pound at 50% and
290,000 pounds @ $30 per pound at 25 %). We are very satisfied with this contract.
Motion was made by Director Smith, seconded by Director Gidley approving Resolution
No. 2010 -03.
Page 4 of 5 Minutes of the February 17, 2010 BAWA Board Meeting
The vote was as follows:
The motion carried.
Ayes: Directors: Baldwin, Mundinger, Smith, Gidley
and President Sandhop
Nays: None
RESOLUTION NO.2010 -03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF
FSTI, INC., FOR THE ANNUAL SODIUM HYDROXIDE CONTRACT
AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA
WATER AUTHORITY, IN THE AMOUNT OF SEVENTY -FIVE
THOUSAND SIX HUNDRED TWENTY AND NO /100 DOLLARS
($75,620.00); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
4. MANAGER'S REPORT
a. BAWA Quarterly Investment Report Period Ending December 31, 2009 -
Finance.
General Manager, Garry Brumback presented the agenda item and stated that during a
mediator meeting with the Fresh Water District 1 A, most bills owed to BAWA were paid
with the remainder at about $8,000. He also stated that there will be a settlement soon
with the City of Baytown, but noted that BAWA will be paid in full.
5. ADJOURN
Motion was made by Director Baldwin, seconded by Director Gidley adjourning the
February 17, 2010 Regular Meeting. The vote was as follows:
Ayes: Directors: Baldwin, Mundinger, Smith, Gidley
and President Sandhop
Nays: None
The motion carried.
Page 5 of 5 Minutes of the February 17, 2010 BAWA Board Meeting
President Sandhop adjourned the Regular Meeting on February 17, 2010 at 8:12 A.M.