1. Call to Order
The regular meeting of the Board of Directors of Bartonville Water Supply Corporation was called to order by Vice-President Kilpatrick at 7:12 P.M., Monday, November 13, 2000, at the corporation office.
Directors in Attendance
Scott Kilpatrick, Vice-President
Larry Kaufman, Secretary-Treasurer
Kevin Alberts, Director
Carla Anderson, Director
Duane Johnson, Director
Directors Absent
Michael Paulson, President
Consultants in Attendance
Jennifer Drury, CPA
Wayne Ginn
Staff in Attendance
Jim Leggieri, General Manager
Betty Robertson, Administrator
Public in Attendance
Brad Jones, Member from Copper Canyon
7. Discussion and Action on the Appointment of a Director to Fill the Vacancy that Expires in 2003.
Kilpatrick moved to Item 7 as Jones was present for an interview for the vacant position on the Board. In the review of his resume, Jones stressed his qualifications and background on the Highland Village Council where he became familiar with water issues and Bartonville Water Supply Corporation over the question of the legality of Highland Village providing water to schools in BWSC's CCN. Jones said the water industry has always fascinated him. The Board informed Jones the decision regarding the appointment of a director would be made at the December meeting.
2. Executive Session
Vice-President Kilpatrick announced at 7:27 P.M. that the Board would convene in Executive Session Concerning:
A. All Matters Related to Personnel Pursuant to Government Code 551.074.
B. All Matters Related to Flower Mound's Request for Information Regarding Water Service to Their Property at the NW Corner of FM 407 and Chinn Chapel Pursuant to Government Code Pursuant to Government Code 551.072.The Board took no action and reconvened in open session at 8:07 P.M.
3. Public Forum
No one was present.
CONSENT AGENDA
Motion by Alberts and second by Kaufman to approve the Consent Agenda. Motion approved with an abstention by Johnson on Item 4 as he was absent from the October meeting. The two items approved were:
4. Approve the Minutes of the October 17, 2000 Board Meeting.
5. Accept the October 2000 Disbursements and Financial Reports.
ITEMS FOR INDIVIDUAL CONSIDERATION
6. Discussion and Action on Robert Terbrock's Request to Appear Before the Board Regarding Consumption Issues.
No action was taken on this item as Terbrock could not attend the November meeting; he requested to be on the December agenda.
9. Discussion and Action on the 2000 Audit.
Discussion was held on the engagement letter submitted by Hughes & Associates to perform the 2000 Audit. Drury recommended retaining this firm since it is familiar with BWSC's structure, agreements and contracts, and the pending release of a portion of the CCN. Motion by Kaufman and second by Alberts to accept the engagement letter submitted by Hughes and Associates to perform the 2000 Audit at a cost not to exceed $8,900.00.
Motion approved unanimously.
10. Discussion and Action on the Crossroads Bible Church Water Plan/Request for Water Service.
Ginn recommended approval of the water plan and request for service for the Crossroads Bible Church. Motion by Kaufman and second by Alberts to approve the water plan and request for service by the Crossroads Bible Church. Motion approved unanimously. Leggieri noted that he planned to discuss the possibility of the Church using a smaller meter for the irrigation system.
11. Discussion and Action on Implementation of a Remote Read Metering System for BWSC's Service Area.
Leggieri presented a comparison of employee time saved with the implementation of remote read meters versus manual read meters. He offered three options and a comparison of the costs associated with each option for the conversion to remote read meters. Following discussion, motion by Alberts and second by Johnson to approve Option A which includes 600 units, software, training and a hand held interrogator at a cost of $174,000.00.
Motion approved unanimously.
12. Discussion and Action on All Matters Related to Personnel.
Motion by Kaufman and second by Anderson to accept the budgeted salaries of $299,129.00 which includes a 5% salary increase for Leggieri.
Motion carried unanimously.
13. Discussion and Action on All Matters Related to Flower Mound's Request for Information Regarding Water Service to Their Property at the NW Corner of FM 407 and Chinn Chapel.
No action was taken.
8. Discussion and Action on All Maters Related to Approval of the Budget for the Year 2001, Including Approval of the Rates.
Drury distributed four budget and rate scenarios for review by the Board. Kilpatrick inquired if the scenarios followed the spread sheet model selected several years ago. Kaufman replied that they did.
Drury explained that the four scenarios allocated the Upper Trinity Regional Water District charges and fees differently. She noted that in Scenario IV the $185,000 for the subscription of the additional 2.5 million gallons a day was not included in the rates as the assumption was made that the high end users who cause the demand for this additional water would pay these charges.
Alberts inquired if any investigation was made into the possibility of having summer and winter rates. Drury replied that she had looked at that option but that she did not believe it would be worth the effort required as she did not think that it would have much impact. Alberts replied the summer and winter rates would provide a lower rate at an appropriate time of the year. He suggested that a break could be given for the establishment of new lawns; however, he noted that this option would only favor new construction.
Discussion ensued. Alberts, Anderson and Johnson noted that they would have a hard time justifying a rate increase when there is a cash surplus and the prospect of money from Lantana for the release of a portion of the CCN. Both Drury and Kaufman remarked that the money from Lantana is projected to be used for the estimated $5,000,000 capital projects that will be needed over the next five years. Kaufman said the corporation needs to start saving now for these projects in order to keep costs lower by not having to borrow all the money. Kaufman noted that if rates are lowered, people will use more water which will require the corporation to purchase more water from the UTRWD. Kaufman noted that the peak consumption is the driver for the increase in costs. Kilpatrick stated that the rates should be based based on operating costs and not on emotional issues. Leggieri added that TRWA encourages rate reviews every six months or at least once a year to prevent 40 to 50% increases at one time.
Kaufman noted that the budget in Scenario IV is conservative and that approval of it would not set the rates. Motion by Kaufman to accept the budget for Scenario IV 2001. Second by Alberts. Johnson initiated discussion on how the budget would would affect the rates. Kaufman reviewed averages for past years. Kilpatrick called for the vote; the motion carried.
Kilpatrick noted that the Board needed to set the rates. Motion by Kaufman to set rates in accordance with the rate sheet in Scenario IV which would include a base of $23.45, a water charge of $2.04, and use the same multipliers as last year.
More discussion followed on increases in expenses due to UTRWD charges because of the purchase of additional water to meet the peak demand. Kaufman noted that 9% of people are causing the peak demand. Anderson said that she felt responsible to explain the increase to the people in her subdivision. Kaufman volunteered to do the rate presentation in her subdivision. Kaufman withdrew his motion because a lack of a second. Discussion ensued on the time table for giving notice and the effective date of the rate increase and the possibility of holding a rate workshop.
Motion by Kaufman and second by Johnson to set the rates in accordance with the budget and rate Scenario IV A with a base rate of $23.84 and a water rate of $2.04. Motion carried with Kaufman, Johnson, and Kilpatrick voting aye and Anderson and Alberts abstaining.
14. Staff and Consultant Reports.
There were no additional reports.
15. Adjournment
Motion by Anderson and second by Alberts to adjourn the meeting.
Motion carried unanimously; the meeting adjourned at 11:05 P.M.
Recorded by Betty Robertson, Deputy Secretary-Treasurer
Certified by Larry Kaufman, Secretary-Treasurer