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2013 07 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY July 17,2013 TheBoard of Directors of theBaytownAreaWater Authority (BAWA)metina Regular MeetingonWednesday,July17,2013,at9:00A.M.,inthe Council Chamber of theBaytown CityHall,2401MarketStreet,Baytown,Texaswiththe following inattendance: Brenda Bradley Smith President Brandon Benoit Director Mike Wilson Director Ron Bottoms Deputy General Manager Ignacio Ramirez,Sr.General Counsel Leticia Brysch Assistant Secretary President Bradley Smith convened theJuly 17,2013,Baytown Area Water Authority (BAWA) BoardRegularMeetingwithaquorumpresentat9:00A.M.,allmemberswerepresentwiththe exception of Secretary Wayne Baldwin and Vice-President Dan Mundinger whowere both absent. 1.MINUTES a.Consider approving the minutes of the Baytown Area Water Authority (BAWA) Board Meeting held on June 19,2013. Amotionwasmadeby Director MikeWilsonand seconded byDirectorBrandon BenoitapprovingtheJune19,2013,BAWABoardRegularMeetingminutes.Thevotewasas follows: Ayes:DirectorBrandonBenoit,President Brenda Bradley Smith,DirectorMike Wilson Nays:None Other:SecretaryWayne Baldwin (Absent),Vice-President Dan Mundinger (Absent) Approved 2.PROPOSED RESOLUTIONS BAWABoardRegularMeetingMinutes July17,2013 Page 2 of4 a.Consider a resolution callingforapublic hearing regarding the Baytown Area Water Authority Fiscal Year 2013-14 Proposed Budget. Deputy General Manager Bottoms presented the agenda itemand stated that Resolution No. 2013-06callsapublichearingregardingtheBaytownAreaWaterAuthorityFiscalYear2013-14 Proposed Budget for August 21,2013,during the regularly scheduled BAWA meeting, commencingat9:00A.M.,intheCouncilChamber of BaytownCityHall,locatedat2401 Market Street,Harris County,Baytown,Texas.He further statedthatnoticeofthepublichearing willbepublishedinTheBaytownSunandpostedontheCity'snoticeboardsandwebsiteon Thursday,August 08,2013. AmotionwasmadebyDirectorBrandonBenoitandsecondedbyDirectorMikeWilson approving Resolution No.2013-06.The votewasas follows: Ayes:Director BrandonBenoit,President Brenda Bradley Smith,DirectorMike Wilson Nays:None Other:SecretaryWayneBaldwin(Absent),Vice-PresidentDanMundinger (Absent) Approved RESOLUTION NO.2013-06 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 2013-14 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3.BUSINESS ITEMS a.Receive and discuss the Baytown Area Water Authority (BAWA)FY 2013-14 Proposed Budget. DeputyGeneralManagerBottomspresentedtheagendaitemsandstatedthatBAWAisingood shape financially andthereareplanstocapitalfundplant improvements thatare necessary.He stated thatthree(3)of the projects cost about $525,000 and would be cash flowed through the FCIP Fund. BAWA BoardRegularMeetingMinutes July 17,2013 Page3 of4 HestatedthatinSeptemberconsultantswillcomebeforetheBAWABoardandprovide presentationsforthenewplant.Hestatedthatthereis$2,500,000budgetedinthe CIP tobegin thatprocessandtwo(2)new positions inthebudget,aswellas,a7%rateincreasefromthe BurtonStudythatwasdonein2010.Hefurtherstatedthatthereis$1millioninthebudgetfor thedesignandreplacement of theupgradetothe SCADA Systemasthecurrentsystemneedsto bereplaced. DeputyGeneralManagerBottomsstatedthattherewillbea3.6%increasefromtheCity of HoustonbeginningApril of 2014whichisincludedinthebudgetandthattheendingworking capitalforthebudgetis$4.3million.Hestatedthattherateincreasewillhappenatthesame timethatthebudgetisapprovedandthatthenewpositionsareexpectedtobefilledinthefall around November and December.Additionally,he stated that BAWA can ladder some initial payments of thedebtthatwouldhavebeenpaid off intheearly 2020's,thereforeallowingthe funding mechanism tobeinplace. 4.REPORTS President Bradley Smithstatedthatitems4.a.and4.b.wouldbeconsidered together. a.Receivethe Baytown Area Water Authority's Quarterly Investment Report forthe Quarter Ending June 30,2013. Finance Director,Louise Richman presented theBaytownAreaWater Authority's (BAWA) Quarterly Investment Report andthe Revenues and Expenditure ReportfortheQuarterEnding June30,2013.ShestatedthatthewatersalesareontargetandthattheBAWA investment revenue isabovebudget.Inregardstothe expenditures,shestatedthatthe maintenance category washigherthanbudgetedduetorepairstothehighservicepumps,themainbreaker,theair conditioning,and other miscellaneous issues. Ms.Richman statedthatstaffis monitoring the untreated waterbilling from theCityof Houston. She stated inthepast there were problems withtheCityof Houston meter.Shesaidthatthey havebeentoldthatthe problems withthemeterhavebeen resolved,however shestatedthatthey continue to monitor the billing.Shestatedthattherewerecertainitemsthatwereunder budget, suchasthe electricity,whichwaspartiallyduetotheratesthatBaytownmanagedto receive.Ms. Richmanstatedthatthe$3,000 overage wasforthefiscal agent feesbutthere'sfundsintheline itemtocovereditandthatthenewinitiativeshasthehighestbudgetlineitemwhichallows BAWA tocash fund some projects.Additionally,Ms.Richmanstatedthatthereisrightat$13 millionintheinvestmentpoolandtheaveragemonthlyrateis.0788%. b.Receivethe Baytown Area Water Authority's Revenues and Expenditures Report for the Quarter Ending June 30,2013. 5.MANAGER'S REPORT BAWA Board Regular Meeting Minutes July 17,2013 Page 4 of 4 a.The next Baytown Area Water Authority Meeting is scheduled for Wednesday, August 21,2013,at9:00 A.M.in the City Council Chamber,City Hall,located at2401 Market Street,Baytown,Texas,77520. DeputyGeneral Manager Bottomsstatedthatthenext meeting would be Wednesday,August21, 2013,at 9:00 A.M.He stated that there are three (3)applicants to interview forthe Superintendent position.Hestatedthatone of thebig projects going onforBAWAisthe replacementofthehighservicepumpspaidforbybondsissuedin2012.Inregardstothehigh servicepumps,Director of Engineering,JosePastranastatedthattheprojectis30%of thedesign processandshouldbe60%throughthedesignprocesswithinthenextfewmonths.Additionally, Mr.Pastrana stated that construction is projected for early next calendar year. 6.ADJOURN Withtherebeingnofurtherbusinesstodiscuss,PresidentBradleySmithadjournedtheJuly17, 2013,BaytownAreaWater Authority (BAWA)Board Regular Meeting at9:16A.M. '&%. City of Baytown h,Assistant Secretary '"Hit,V/IIIIU^.>•'