Loading...
2012 08 15 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY August 15, 2012 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, August 15, 2012, at 9:01 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 Wayne Baldwin Secretary John Sandhop Director Robert D. Leiper General Manager Karen Horner Assistant General Counsel Leticia Brysch Assistant Secretary President Bradley Smith convened the August 15, 2012, Baytown Area Water Authority (BAWA) Board Regular Meeting with a quorum present at 9:01 A.M., all members were present with the exception of Board Members Dan Mundinger and Mike Wilson who were both absent. 1. RECOGNITION a. Recognition: Mr. John Sandhop. President Bradley Smith presented the agenda item and recognized board member Mr. John Sandhop for his years of service to BAWA and the citizens of Baytown. 2. MINUTES a. Consider Approving the Minutes of the Baytown Area Water Authority Board Meeting for July 18, 2012 - Assistant Secretary. A motion was made by Director John Sandhop and seconded by Secretary Wayne Baldwin approving the July 18, 2012, BAWA Board Meeting Minutes. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None BAWA Board Regular Meeting Minutes August 05, 2012 Page 2 of 6 Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved 3. PUBLIC HEARINGS a. Conduct a Public Hearing Adopting Baytown Area Water Authority 2012 -13 Proposed Budget - Finance. At 9:04 A.M., President Bradley Smith opened and conducted a public hearing for the Baytown Area Water Authority (BAWA) 2012 -13 Proposed Budget. With there being no one registered to speak, President Bradley Smith closed the public hearing at 9:08 A.M. 4. PROPOSED RESOLUTIONS a. Consider Adopting the Baytown Area Water Authority 2012 -13 Proposed Budget - Finance. General Manager Leiper presented the agenda item and stated that Resolution No. 2012- 08 adopts the Baytown Area Water Authority (BAWA) 2012 -13 Proposed Budget. He stated that the budget estimates sales of $10,525,834 for an average of 12.25 million gallons per day. He stated that the budget included a 9.5% rate increase as per the utility rate study effective October 01, 2012. The increase would be from 2.35 and 2.39 to cover the increased cost of operations including debt service, the purchase of raw water and provide adequate reserves for future capital projects. He sated that the increase is expected to generate $898,849 in additional revenue with expenditures of $5,465,048 which is an increase of $146,000. General Manager Leiper stated that the budget also includes a usual transfer of $250,000 to the general fund to cover the general fund's support services such as legal, human resources, finance and information technology services. He stated that BAWA is in a contract to purchase raw water from the City of Houston which is in effect until the year of 2040 and received notice effective April 01, 2012, of a 3.3% increase which is included in this budget. He stated that the budget also includes a transfer to cover debt service requirements of $2,429,733 in order to maintain fiscal stability. He stated that a recommendation from the rate study was to keep 2 1/2 months of expenses and this budget exceeds the working capital reserves and also includes a contingency of $75,000 transferring $1.4 million dollars out to the capital improvement fund to allow avoiding future debt and to instead cash fund some projects. RESOLUTION NO. 2012 -08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013; BAWA Board Regular Meeting Minutes August 05, 2012 Page 3 of 6 MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. A motion was made by Secretary Wayne Baldwin and seconded by Director John Sandhop approving Resolution No. 2012 -08. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved 5. BUSINESS ITEMS a. Election of Officers - Assistant Secretary. General Manager Leiper presented the agenda item to consider the election of officers: President, Vice President, and Secretary; and the appointment of an Assistant Secretary. He stated that the current officers were Brenda Bradley Smith as President, Dan Mundinger as Vice President, and Wayne Baldwin as Secretary. A motion was made by Secretary Wayne Baldwin and seconded by Director John Sandhop nominating Brenda Bradley Smith as President. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved A motion was made by President Brenda Bradley Smith and seconded by Director John Sandhop nominating Wayne Baldwin as Vice President. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None BAWA Board Regular Meeting Minutes August 05, 2012 Page 4 of 6 Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved A motion was made by President Brenda Bradley Smith and seconded by Secretary Wayne Baldwin nominating Mike Wilson as Secretary. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved A motion was made by Director John Sandhop and seconded by Secretary Wayne Baldwin nominating the City Clerk as the Assistant Secretary. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved 6. MANAGER'S REPORT a. Present an Update Regarding the 30" Waterline Extension Project at Wallisville Road and N. Main Street - Engineering. General Manager Leiper presented an update regarding the 30" Waterline Extension Project at Wallisville Road and North Main Street. He stated that the County is doing work at the intersection of Wallisville and North Main and the City is working on a project on North Main as well. He stated that in the middle of doing the work on North Main, some adjustments in the line were needed and a letter contract was executed with Angel Brothers for approximately $30,000 to make those adjustments which were funded out of the capital reserve funds. General Manager Leiper stated that the project would not be complete before school opens but the hope is to have Wallisville open by that time and the board would be updated on the status of the progress. Additionally, he stated that there is no disruption to service now that there are two feed lines. BAWA Board Regular Meeting Minutes August 05, 2012 Page 5 of 6 b. Present an Update on the BAWA Power Transfer Project - EngineeringtPublic Works. Ms. Logan Palmenberg, City of Baytown Engineering Staff, presented the update regarding the BAWA Power Transfer Project and stated that the generator project was funded through the Texas Department of Rural Affairs CDBG Disaster Recovery Entitlement Grant which included three (3) generators as well as a 20 gallon above the ground fuel tank. She stated that the power distribution project which was funded directly by BAWA and consisted of the electrical work required to connect the generators to the BAWA plant site as well as constructing a building to hold the electrical switch gear and numerous items associated with the project. Ms. Palmenberg stated that both projects were designed by Malcolm Pimie and the intent of those projects was to provide more reliable power service. Additionally, she stated that as with all projects there were some unforeseen issues such as vital parts shipped from the manufacturer being delayed. Ms. Palmenberg indicated that the contractors communicated the information in a timely manner so the deadline for the CDBG funded projected moved from February 2012 to the end of December 2012; and as a side note, there are other projects funded by the CDBG which needed the same extension. She stated that all of the generators were installed along with the fuel tank and electrical building and that a majority of the work is complete with the exception of some punch list items that are being addressed. Additionally, Ms. Palmenberg stated that the final completion date of the project is yet to be determined but the board would be updated on the status of progress. General Manager Leiper inquired of the full operational capacity of the generator. Ms. Palmenberg stated that the generators are fully operational. General Manager Leiper stated that a routine drill would be done with Centerpoint to assure that the back up is operating successfully. 7. ADJOURN A motion was made by Director John Sandhop and seconded by Secretary Wayne Baldwin adjourning the August 15, 2012, BAWA Board Meeting. The vote was as follows: Ayes: Secretary Wayne Baldwin, President Brenda Bradley Smith, Director John Sandhop Nays: None Other: Vice - President Dan Mundinger (Absent), Director Mike Wilson (Absent) Approved BA W A Board Regular Meeting Minutes August 05, 2012 Page 6 of 6 With there being no further business to discuss, President Bradley Smith adjourned the August 15, 2012, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:20 A.M.