2010 07 21 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July 21,2010
The Board of Directors of the Baytown Area Water Authority (BAWA),Harris County,
Texas,met in a Regular Meeting on Wednesday,July 21,2010 at 8:00 A.M.in the
Council Chamber of the Baytown City Hall,2401 Market Street,Baytown,Texas with
the following in attendance.
Wayne Baldwin Director
William Gidley Director
Brenda Bradley Smith Secretary
John Sandhop President
Garrison C.Brumback General Manager
Bob Leiper Deputy General Manager
Kevin Troller Assistant General Manager
Ignacio Ramirez,Sr.General Counsel
Leticia Garza Assistant Secretary
Director Mundinger was absent from the July 21,2010 BAWA Board Regular Meeting.
President Sandhop convened the July 21,2010 BAWA Board 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 May 19,2010.
A motion was made by Director Baldwin,seconded by Director Smith approving the
minutes from the May 19,2010,BAWA Board Regular Meeting.The vote was as
follows:
Ayes:Directors:Baldwin,Smith,
and President Sandhop
Nays:None
The motion carried.
2.BUSINESS ITEMS
Page 2 of 5 Minutes of the July 21,2010 BAWA Board Regular Meeting
2.BUSINESS ITEMS
a.Amend BAWA Final Rate Adjustment Plan -Finance.
President Sandhop presented the agenda item to consider amending the Final Rate
Adjustment Plan,adopted February 17,2010 and stated that the City of Houston
implemented an unexpected 24.58%rate increase to raw water on June 01,2010,which
was not anticipated or reflected in the Rate Study.
General Manager,Garry Brumback stated that the City of Houston approved a 24.58%
rate increase to the raw water rate it charges the Baytown Area Water Authority (BAWA)
and recommended to the Board to try andkeep the rate adjustment as low as possible
making an additional,one-time,5%adjustment to the approved rate adjustment on
October 01,2010.The total adjustment on October 01,2010,now needs to be 14.5%.
A motion was made by Director Gidley,seconded by Director Smith approving the
amendment of the rate adjustment.The vote was asfollows:
Ayes:Directors:Baldwin,Gidley,Smith,
and President Sandhop
Nays:None
The motion carried.
b.Discuss Baytown Area Water Authority 2010-11 Proposed Budget -Finance.
General Manager,Garry Brumback presented the agenda item to receive and discuss the
Baytown Area Water Authority (BAWA)2010-11 Proposed Budget and stated that the
rate changes coming from the City of Houston can not be controlled.
3.PROPOSED RESOLUTIONS
a.Call a Public Hearing for Baytown Area Water Authority Fiscal Year 2010-
2011 Proposed Budget -Finance.
Resolution No.2010-7 calls a public hearing regarding the Baytown Area Water
Authority Fiscal Year 2010-11 Proposed Budget for August 18,2010,during the
regularly scheduled BAWA meeting,commencing at 8:00 a.m.This meeting is held in
the Council Chamber of Baytown City Hall,located at 2401 Market Street,Harris
County,Baytown,Texas.Notice of the public hearing will be published in the Baytown
Sun on August 06,2010.
Page 3 of 5 Minutes of the July 21,2010 B AWA Board Regular Meeting
A motion was made by Director Baldwin,seconded by Director Gidley approving
Resolution No.2010-7.The vote was as follows:
Ayes:Directors:Baldwin,Gidley,Smith,
and President Sandhop
Nays:None
The motion carried.
RESOLUTION NO.2010-7
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ESTABLISHING THE
DATE,TIME AND PLACE FOR A PUBLIC HEARING ON THE 2010-
11 PROPOSED BUDGET;AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
b.Baytown Area Water Authority's Investment Policy and Strategy -Finance.
General Manager,Garry Brumback presented the agenda item and stated that Resolution
No.2010-8 adopts the Baytown Area Water Authority's Investment Policy and Strategy
in compliance with the Public Funds Investment Act Section 2256-005 (e)&2256-005
(f).The changes to the policy are as follows:
Authorized Investment Officials and the Statement of Ethics and Conflicts of Interest
with the names of the new authorized investment officials:
•Cynthia Pearson,City of Baytown Director of Finance
•Margie Grimes,City of Baytown Assistant Director of Finance
•Genie Ginzel,City of Baytown Treasurer
A motion was made by Director Smith,seconded by Director Gidley approving
Resolution No.2010-8.The vote was as follows:
Ayes:Directors:Baldwin,Gidley,Smith,
and President Sandhop
Nays:None
The motion carried.
Page 4of 5 Minutes of the July 21,2010 BAWA Board Regular Meeting
RESOLUTION NO.2010-8
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.
c.Advanced Funding for BAWA Plant Project -Design and Phase I -Finance.
General Manager,Garry Brumback presented that agenda item and stated that Resolution
No.2010-9 authorizes advanced funding as needed for costs associated with the Baytown
Area Water Authority's Water Treatment Plant Improvement Project -Design and Phase
I.It is anticipated that the Authority will issue Certificates of Obligation for this project
in an amount of approximately $3,000,000.IRS regulations dictate that BAWA declare
its official intent to reimburse prior expenditures with proceeds of subsequent borrowing.
The advanced funding would only be invoked if the BAWA entered into a contract on
any of the bond projects prior to the issuance of the bonds.The advanced funding still
necessitates BAWA and Council approval for contracts that require such approval.In
order to reduce interest costs,the sale of the Certificates of Obligations will be delayed
until needed.In order for the preliminary work,design,engineering and limited
construction projects to move forward,this advanced funding resolution is necessary.
A motion was made by Director Gidley,seconded by Director Baldwin approving
Resolution No.2010-9.The vote was asfollows:
Ayes:Directors:Baldwin,Gidley ,Smith,
and President Sandhop
Nays:None
The motion carried.
RESOLUTION NO.2010-9
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED;CONTAINING A
REPEALING CLAUSE;CONTAINING A SAVINGS CLAUSE;AND
PROVIDING FORTHE EFFECTIVE DATE THEREOF.
Page 5 of 5 Minutes of the July 21,2010 BAWA Board Regular Meeting
4.MANAGER'S REPORT
a.BAWA Quarterly Investment Report Period Ending June 30,2010 -Finance.
General Manager,Garry Brumback presented the agenda item.
Finance Director,Cynthia Pearson presented the Quarterly Investment Report for the
period ending June 30,2010 and stated that the ending balance is $3,253,000 with current
YTD interest earnings of$6,186 at an interestrate of0.2%.
5.ADJOURN
President Sandhop adjourned the BAWA Board Regular Meeting on July 21,2010 at
8:18 A.M.
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