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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.