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2011 07 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY July 20, 2011 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, July 20, 2011, at 9:04 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 John Sandhop Director Robert D. Leiper General Manager Kevin Troller Assistant General Manager Ignacio Ramirez, Sr. General Counsel Jason Cozza Deputy Assistant Secretary President Bradley Smith convened the July 20, 2011, Baytown Area Water Authority (BAWA) Board Regular Meeting with a quorum present at 9:04 A.M., all members were present with the exception of Directors Wayne Baldwin and Mike Wilson who were absent. 1. MINUTES a. Consider Approving the Baytown Area Water Authority (BAWA) Special Meeting Minutes held on May 25, 2011 - Assistant Secretary. A motion was made by Director John Sandhop and seconded by Vice - President Dan Mundinger approving the minutes of the BAWA Board May 25, 2011, Special Meeting. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice - President Dan Mundinger, Director John Sandhop Nays: None Other: Director Wayne Baldwin (absent) and Director Mike Wilson (absent) Approved 2. BUSINESS ITEMS a. Discuss Baytown Area Water Authority 2011 -12 Proposed Budget - Finance. General Manager Leiper presented the agenda item to receive and discuss the Baytown Area Water Authority (BAWA) 2011 -12 Proposed Budget. General Manager Leiper stated that the budget maintains the debt service and continues with the current projects, which are (1) the generator project and (2) the electrical project; these two projects need to be done together. General Manager Leiper stated that a request for approval was made to the Texas Water Development Board (TWDB) for $3.3 million for the electrical project and should the request not be approved, changes to the budget may be necessary. General Manager Leiper also stated that the budget reflects the scheduled final rate increase of 9.5 %, which was approved by the Board and becomes effective October 01, 2011. Additionally, General Manager Leiper stated that the budget includes a 5% quarterly bonus for staff; this bonus is in lieu of any salary raises and will not impact next year's budget. General Manager Leiper noted that staff did not receive salary increases last year, and continued to work at the same or a higher service level with the same amount of resources; he commended staff for all their hard work and efforts. General Manager Leiper stated that the proposed budget is $9,326,869.00. General Manager Leiper also informed the Board that they would hold a public hearing and take action on the budget at their next regularly scheduled meeting in August. 3. PROPOSED RESOLUTIONS a. Consider Calling a Public Hearing for Baytown Area Water Authority Fiscal Year 2011 -2012 Proposed Budget - Finance. General Manager Leiper presented the agenda item and stated that Resolution No. 2011- 9, calls for a public hearing regarding the Baytown Area Water Authority Fiscal Year 2011 -12 Proposed Budget for August 17, 2011, during the regularly scheduled BAWA meeting, commencing at 9:00 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 Thursday, August 04, 2011. A motion was made by Director John Sandhop and seconded by Vice - President Dan Mundinger approving Resolution No. 2011 -9. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice - President Dan Mundinger, Director John Sandhop Nays: None Other: Director Wayne Baldwin (absent) and Director Mike Wilson (absent) Approved RESOLUTION NO. 2011-9 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 2011- 12 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider Baytown Area Water Authority's Investment Policy and Strategy - Finance. General Manager Leiper presented the agenda item and stated that Resolution No. 2011- 10, revises the Baytown Area Water Authority's Investment Policy and Investment Strategy to update authorized investment officers, in accordance with the Public Funds Investment Act Sections 2256 -005 (e) and 2256 -005 (f); adds broker dealers and financial institutions to existing approved counter - parties; and include the requirement that all FCPEMSD funds be collateralized under terms and conditions of FIRREA (Financial Institution Reform, Recovery, and Enforcement Act)as amended. The changes to the policy are as follows: Authorized Investment Officials and Statement of Ethics and Conflicts of Interest with the names of the new authorized investment officials: • Louise Richman, City of Baytown Director of Finance • Carl C. Currie, City of Baytown Controller • Brent Yowell, City of Baytown Treasurer • Meghan Lair Reed, City of Baytown Financial Analyst Approved Broker/Dealers, Financial Institutions and Investment Pools to the existing list of Broker/Dealers: • Rice Financial Products Company • UBS Financial Services Inc. • Cantor Fitzgerald • Mutual Securities, Inc. A motion was made by Director John Sandhop and seconded by Vice - President Dan Mundinger approving Resolution No. 2011 -10. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice - President Dan Mundinger, Director John Sandhop Nays: None Other: Director Wayne Baldwin (absent) and Director Mike Wilson (absent) Approved RESOLUTION NO. 2011 -10 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. Consider Annual Sodium Hydroxide Contract - Administration. General Manager Leiper presented the agenda item and stated that Resolution No. 2011- 11 awards the Annual Sodium Hydroxide Contract to Altivia Corporation in the amount of $184,985. The bids were opened Wednesday, June 28, 2011, at 2:00 P.M. with Altivia having the lowest bid at $184,985 (407,000 pounds at 0.2550 per pound at 50% and 290,000 pounds at 0.2800 per pound at 25 %). The previous contract dated February 2010 was awarded to FSTI, Inc. for $75,620 (407,000 pounds at $0.1325 per pound at 50% and 290,000 pounds at $0.0748 per pound at 25 %). A motion was made by Director John Sandhop and seconded by Vice - President Dan Mundinger approving Resolution No. 2011 -11. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice - President Dan Mundinger, Director John Sandhop Nays: None Other: Director Wayne Baldwin (absent) and Director Mike Wilson (absent) Approved RESOLUTION NO. 2011-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BID OF ALTIVIA CORPORATION, FOR THE ANNUAL SODIUM HYDROXIDE CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF ONE HUNDRED EIGHTY -FOUR THOUSAND NINE HUNDRED EIGHTY -FIVE AND NO /100 DOLLARS ($184,985.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. d. Consider Rate Increase pursuant to BAWA Final Rate Adjustment Plan - Finance. General Manager Leiper presented the agenda item and stated that Resolution No. 2011- 12, authorizes a 9.50% rate increase effective October 01, 2011, as specified in the Final Rate Adjustment Plan adopted February 17, 2010, and amended Plan adopted July 21, 2010. The rates will increase from $1.96 to $2.15 for City water and $1.99 to $2.18 for non -city water. A motion was made by Director John Sandhop and seconded by Vice- President Dan Mundinger approving Resolution No. 2011 -12. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice - President Dan Mundinger, Director John Sandhop Nays: None Other: Director Wayne Baldwin (absent) and Director Mike Wilson (absent) Approved RESOLUTION NO. 2011-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING A NINE AND ONE -HALF PERCENT (9.50 %) RATE INCREASE EFFECTIVE OCTOBER 1, 2011, AS SPECIFIED IN THE FINAL RATE ADJUSTMENT PLAN ADOPTED FEBRUARY 17, 2010, AND AMENDED PLAN ADOPTED JULY 21,2010; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. REPORTS a. Receive the BAWA Revenues and Expenditures for the Quarter Ending Julie 30,2011 - Finance. Finance Director Louise Richman presented the update oil the Baytown Area Water Authority's revenues and expenditures for the Quarter ending June 30, 2011 and stated that water sales were Lip, which puts tile budget a little over, but not enough to really impact the overall budget, so we rernain oil target, General Manager 1-ciper inquired it' there were any anticipation of amending the budget to authorize additional expenditures. Finance Director Louise Richman stated that Superintendent Steve File will monitor, and make necessary adjustments within the budget as needed. b. Receive BA VA Quarterly Investilient Report - Finance. finance Director Louise Richman presented the Baytown Area Water Authority Quarterly Investment Report for the period ending Julie 30, 2011 and stated that the ending balance is right at $4,167,000.00. 5. MANAGER'S REPORT General Manager Lciper stated that even with the drought water sales were up and volunteer conservation is still being encouraged. President Bradley Smith inquired of the process in which the agenda packets would be distributed as her preference is to receive online, General Manager Leiper stated that the City Clerk's office would clarify the preferred method of distributing the agenda packets. 6. ADJOURN With there being no further business to discuss, President Bradley Smith adjoumed the July 20, 2011, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:28 A.M. m Letidi#'P'; §cIj,,IAss r�O*Secrctary Cit