2011 04 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
April 20, 2011
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a
Regular Meeting on Wednesday, April 20, 2011, at 8:07 A.M., in the Council Chamber
of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in
attendance:
Brenda Bradley -Smith President
Dan Mundinger Vice - President
Mike Wilson Director
Robert D. Leiper General Manager
Kevin Troller Assistant General Manager
Karen Horner Assistant General Counsel
Jason Cozza Deputy Assistant Secretary
President Smith convened the April 20, 2011, Baytown Area Water Authority (BAWA)
Board Regular Meeting with a quorum present at 8:07 A.M., all members were present
with the exception of Directors Baldwin and Sandhop.
1. MINUTES
a. Approve the Minutes of the Baytown Area Water Authority (BAWA) Board
Regular Meeting held on February 09, 2011- Assistant Secretary.
A motion was made by Vice - President Dan Mundinger and seconded by Director Mike
Wilson approving the February 09, 2011 BAWA Board Regular Meeting. The vote was
as follows:
Ayes: President Brenda Bradley- Smith, Vice- President Dan Mundinger,
and Director Mike Wilson
Nays: None
Approved
b. Approve the Minutes of the Baytown Area Water Authority (BAWA) Board
Emergency Meeting held on March 18, 2011 - Assistant Secretary.
A motion was made by Vice- President Dan Mundinger and seconded by Director Mike
Wilson approving the March 18, 2011, BAWA Board Emergency Meeting. The vote was
as follows:
Ayes: President Brenda Bradley- Smith, Vice - President Dan Mundinger,
and Director Mike Wilson
Nays: None
Approved
C. Approve the Minutes of the Baytown Area Water Authority (BAWA)
Emergency Meeting held on March 01, 2011 - Assistant Secretary.
A motion was made by Vice - President Dan Mundinger and seconded by Director Mike
Wilson approving the March 01, 2011, BAWA Board Emergency Meeting. The vote was
as follows:
Ayes: President Brenda Bradley- Smith, Vice - President Dan Mundinger,
and Director Mike Wilson
Nays: None
Approved
2. PROPOSED RESOLUTIONS
a. Resolution: Consider Revisions to the Baytown Area Water Authority's
Investment Policy and Strategy - Finance.
General Manager Leiper presented the agenda item and stated that Resolution No. 2011-
05 revises the Baytown Area Water Authority's Investment Policy and Investment
Strategy in order to update authorized investment officers and the name of the regulatory
agency certifying broker dealers and financial institutions. The changes to the policy are
as follows:
EXHIBIT A - Authorized Investment Officials:
• Mike A. Lester, City of Baytown Interim Director of Finance,
• Louise Richman, City of Baytown Assistant Director of Finance,
• Carl C. Currie, City of Baytown Controller, and
• Genie Ginzel, City of Baytown Treasurer
EXHIBIT B — Statement of Ethics and Conflicts of Interest with the names of the new
authorized investment officials:
• Mike A. Lester, City of Baytown Interim Director of Finance,
• Louise Richman, City of Baytown Assistant Director of Finance,
• Carl C. Currie, City of Baytown Controller, and
• Genie Ginzel, City of Baytown Treasurer
A motion was made by Vice - President Dan Mundinger and seconded by Director Mike
Wilson approving Resolution No. 2011 -05. The vote was as follows:
Ayes: President Brenda Bradley- Smith, Vice - President Dan Mundinger,
and Director Mike Wilson
Nays: None
Approved
RESOLUTION NO. 2011-05
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.
b. Consider Closeout of Emergency Repairs to the 30 -inch Water Line located
on Cedar Bayou Lynchburg across from East Road - Engineering.
City Manager Leiper presented the agenda item and stated that Resolution No. 2011-
06 authorizes final payment to Angel Brothers Enterprises, Ltd., and accepts the
Emergency Repairs to the 30 -inch water line located on Cedar Bayou Lynchburg across
from East Road, in the amount of $244,000.
On March 01, 2011, BAWA approved emergency repairs to the water line in the amount
of $150,000, as there was a break in the line. On March 18, 2011, BAWA authorized
additional funding in the amount of $125,000 for additional unforeseen work necessary to
repair the line. The final construction cost for the project was $244,000. The project was
completed to the satisfaction of the City Engineer in a timely manner.
A motion was made by Director Mike Wilson and seconded by Vice - President Dan
Mundinger approving Resolution No. 2011 -06. The vote was as follows:
Ayes: President Brenda Bradley- Smith, Vice - President Dan Mundinger,
and Director Mike Wilson
Nays: None
Approved
RESOLUTION NO. 2011-06
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ACCEPTING THE
EMERGENCY REPAIRS TO THE 30 -INCH WATER LINE LOCATED
ON CEDAR BAYOU LYNCHBURG ACROSS FROM EAST ROAD;
AUTHORIZING FINAL PAYMENT OF THE SUM OF TWO
HUNDRED FORTY -FOUR THOUSAND AND NO /100 DOLLARS
($244,000.00) TO ANGEL BROTHERS ENTERPRISES, LTD., FOR
SAID PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
C. Consider Approving Construction Contract for CDBG Non - Housing
Emergency Power Improvements Project - Engineering.
City Manager Leiper presented the agenda item and stated that Resolution No. 2011-
07 awards a construction contract to for the CDBG Non - housing Emergency Power
Improvements for the Baytown Area Water Authority (BAWA) Water Treatment Plant in
the amount of $2,658,000.00 to T & C Construction, Ltd.
This project is funded through the Texas Department of Rural Affairs' CDBG Disaster
Recovery Entitlement Grant Program. If this resolution is approved by the BAWA Board,
City Council will consider approval of the agreement and of the transfer of grant funds in
the CDBG Disaster Recovery Entitlement Grant to this project at its meeting on April 28,
2011.
A motion was made by Vice - President Dan Mundinger and seconded by Director Mike
Wilson approving Resolution No. 2011 -07. The vote was as follows:
Ayes: President Brenda Bradley- Smith, Vice - President Dan Mundinger,
Director Mike Wilson
Nays: None
Approved
RESOLUTION NO. 2011-07
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY AUTHORIZING AN
AGREEMENT WITH T & C CONSTRUCTION, LTD., FOR THE
CDBG NON - HOUSING, BAWA EMERGENCY POWER
IMPROVEMENTS PROJECT IN AN AMOUNT OF TWO MILLION
SIX HUNDRED FIFTY -EIGHT THOUSAND AND NO 1100 DOLLARS
($2,658,000.00) SUBJECT TO THE APPROVAL OF THE CITY
COUNCIL OF THE CITY OF BAYTOWN; MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
3. REPORTS
a. Report: Receive the BAWA Revenues and Expenditures for the Quarter
Ending March 31, 2011 - Finance.
City Manager Leiper stated that agenda items 3.a. and 3.b. will be considered together.
Assistant Finance Director, Louise Richman presented the update on BAWA's revenues
and expenditures for the quarter ending March 31, 2011 and stated that the revenues are
on target, but due to the low interest rates the investments are low. Ms. Richman stated
that the expenditures are on target but due to late payments from the City of Houston are
a little under budget. Ms. Richman stated that the debt services are at 14.5% and the
reason is because the first payment of the year is interest only and the next payment is
principal and interest.
General Manager Leiper stated that the Board should expect an increase in the revenues
and expenditures if this drought holds.
b. Report: Receive the BAWA Quarterly Investment Report for the Period
Ending March 31, 2011- Finance.
Ms. Richman presented the BAWA Quarterly Investment Report for the period ending
March 31, 2011, and stated that the ending balance on the investments is $4.6 million. Ms
Richman stated that the reason for the increase is because the first debt payment of the
year was for interest only and while the next payment will include both interest and
principal.
4. MANAGER'S REPORT
There was no report.
5. ADJOURN
With there being no further business to cliscuss, President Smith adjourned the April 20,
01 l,. Baytown Area Water Authority BAWA) Board Re�
v !ular Meeting at 8:21 AN,
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