1. Call to Order
The regular meeting of the Board of Directors of Bartonville Water Supply Corporation was called to order by President Paulson at 7:27 P.M., Thursday, September 28, 2000, at the corporation office.
Directors in Attendance
Michael Paulson, President
Kevin Alberts, Director
Carla Anderson, Director
Duane Johnson, Director
Directors Absent
Larry Kaufman, Secretary-Treasurer
Scott Kilpatrick, Vice-President
Consultants in Attendance
Jennifer Drury, CPA
Wayne Ginn
Staff in Attendance
Jim Leggieri, General Manager
Betty Robertson, Administrator
Public in Attendance
Dennis Andruskiewicz, Member and resident of Bartonville
Ernest Kubacak, Member and resident of Bartonville
Doug Malcuits, Sinatra Homes
John Roberts, Member and resident of Bartonville
Kent Rowe, Highland Village Resident
2. Public Forum
Before opening the Public Forum, President Paulson explained the Public Comments Policy. Paulson stated that the first speaker would be John Roberts.
Roberts, a member who has lived in Bartonville for 13 years, commented that the water quality has improved and that he no longer has salt build up on the side of his house as a result of the well water being combined with the water purchased from the Upper Trinity Regional Water District. He noted, however, that he is disconcerted when he drives through Double Oak, Copper Canyon, and Bartonville and sees the landscapes with major damage. He noted that Argyle, Flower Mound, and Lewisville have pleasant green yards.
Roberts stated that it is ridiculous that other parts of the area which should have the same access or availability to water are doing well with their water while the land- scapes in the Bartonville WSC area are dying. He said they are dying because of the the lack of water as a result of the high rates. He noted that he called and checked and found that if a person has a need for more than 50,000 gallons, Bartonville WSC has the highest rates in Texas. He said he would venture to say they are the highest in the United States. He challenged the Board to find rates that are higher.
Roberts said that he called Mustang WSC to check their rates. He reported that Mustang's rates increase rapidly and are high on the low end but top out at $8 per thousand gallons. He said people on Mustang can afford to keep their yards and animals alive with a reasonable amount of water. Roberts stated that the Bartonville rates increase every year and are too high to keep yards alive. He told the Board that it is doing a disservice to the area.
Paulson replied that the Board does compare other rates in the area and that the rates are not the highest in the area. He noted Bartonville WSC has a small customer base and has had a huge capital outlay to improve the system. Paulson stated Bartonville WSC with its improved system was one of the few in the area that did not have serious water rationing this summer. Roberts replied that there was no need for rationing because people cannot afford to water since no one has less than an acre.
Anderson stated that she moved back to this area about a year ago. She stated that when she lived in Highland Village, she paid $200 to $300 for a spit yard. She noted when she moved to Seattle she became aware that it is not keeping lawns alive but keeping water for future generations from being endangered that needs to be considered. Anderson stated people are continually drilling wells which deplete the ground water. She noted water is high, but she said it is reasonably high from the standpoint that we are low on water.
Roberts remarked that the rates are structured so that they penalize people who have property. He stated the rates are low on the low end and exorbitantly high on the high end. Alberts noted that everyone living in the area has an acre.
Roberts replied everyone is being penalized. He noted that the Texas Commission on Environmental Qualty says that an average family of four should use no more than 50,000 gallons of water a month. He said he can guarantee there are no average families in the area because they all own land and that is the reason they moved to the area. He stated he understands water resources; however, he noted the people in Argyle can afford to keep their yards because water rates are realistically high.
Anderson asked Roberts how he would feel if someone was watering 3 or 4 acres and decided to fill a pond with a hose because it looked a little low. She asked Roberts if he thought that person should have lower rates. He replied no, but that the rates should be balanced so they are flat across the board like Mustang. He noted again that Mustang's rates are high on the low end, but he said they are realistic. He stated there should be a unit of water that is relatively the same cost so that a person can buy as much as he can afford.
Leggieri stated that he would like make some clarifications in regard to Mustang WSC. He stated that Mustang is not currently receiving any water from the UTRWD; therefore, it does not have the expense that Bartonville WSC has to reserve 2.0 MGP at $180,000 for each million per year. He also noted that Mustang has 1530 members with a peak demand of 1.3 MGP which equates to 800 gallons per connection. He noted, however, that Bartonville WSC'S peak demand was almost 1700 gallons per connection or twice as much as Mustang. Leggieri noted that Mustang, although it does have some horse ranches, does not have the potential demand or the people have different priorities. Leggieri noted that a comparison of Bartonville WSC and Mustang WSC is not comparing apples to apples because of different issues.
Roberts inquired where Argyle WSC gets its water. Leggieri replied that Argyle WSC has wells and purchases some water from the UTRWD. He noted that Argyle WSC does not have the same demand as Bartonville WSC. He reported that Argyle WSC'S peak demand was 100 to 200 gallons less per connection than Bartonville WSC'S peak demand. Leggieri noted that when the 300 to 400 acre fire occurred recently, Bartonville WSC'S tank was full.
Leggieri reminded those present that all the facts are needed before comparing rates. He reiterated that a comparison can only be made when apples are compared to apples. He reported that he talked to a City of Denton employee who laughed when told the amount of water some people want to use on their yards. He said when he inquired if Denton has that problem, he was told that Denton has only a few estate lots and that the few who would want to use a large amount can be accommodated through the tax base and off set with commercial users. He noted Denton does not have the potential demand of Bartonville WSC.
Paulson stated that most of Bartonville WSC'S acreage is not agricultural or commercial but is yards. He noted, therefore, Bartonville WSC has to build a system not to meet the average demand but the peak demand. He said that since 8% of the members use more than 100,000 gallons, the system has been built to meet that peak demand. He noted that all the members have paid for the system. Paulson said additional water to meet future demands must be reserved 3 years in advance with the UTRWD. He noted that Bartonville WSC has to pay in advance to help pay for future UTRWD facilities as well as pay for the water purchased.
Roberts stated that when he moved to Bartonville, he planned to retire here, but that he cannot even live here if the rates continue to increase 20% a year.
Paulson stated that the Board needed to continue on with the agenda. He recognized Kent Rowe who identified himself as a Highland Village resident who recently purchased six acres in the Krause Addition in The Town of Bartonville. He stated that he came to the meeting to determine if he can afford to move his family to the area. Staff informed him that he was at the wrong meeting because Argyle WSC provides water service to the Krause Addition.
Anderson informed Rowe that she could help address his landscaping problem as she is in the process of doing her yard. She told him that he should consider a zeriscape landscape which takes into account existing vegetation and drought tolerant native shrubs, trees and grasses. She informed Rowe that he should also be aware of that the soil is sandy and soaks up water.
Discussion followed on the increase in costs associated with drilling a well and the length of time the well will continue to produce with the number of wells being drilled in the area.
Roberts interjected the statement that he cannot understand why other parts of the country can furnish water at realistic rates and Bartonville WSC cannot. He said that he still argues that Bartonville WSC has the highest rates for usage from 50,000 to 100,000 gallons.
Alberts noted that he has an acre. He said that he waters his lawn that does not cover an entire acre and fills his pool. He noted that his bill is rarely over $125. Alberts said the Board made a philosophical decision to enforce conservation. He noted other Boards or utilities may not make the same decision. He stated the Board is not trying to make a lot of money but is trying to enforce the philosophy of realistic use and conservation of water so that the world will not have the greater problem of having no water. He welcomed others to sit on the Board and change the philosophy. Roberts said the Board should have more realistic rates and stricter rationing.
Leggieri stated that he would like to add to Albert's statement. Leggieri stated that the philosophy is based on the fact that about 95% of the members use a maximum peak amount of 35,000 to 40,000 gallons of water a month across the entire system. He noted all the houses may not be the same size but that everyone lives on at least an acre with yards similar in size. He said the Board doubled the maximum peak demand amount to 75,000 gallons to cover the demand on the system and calculated a rate that is reasonable and competitive with other rates in the area. Leggieri said that the other 4% of the members who want to use more than 75,000 gallons a month fall into rates based on the Board's philosophy as stated by Alberts. He said that he believes that the majority of the members do not want an excessive amount of water. Dennis Andruskiewicz requested to speak as one of the agenda items regarded him. Therefore, the Board moved to Item 7.
7. Discussion and Action on Mr. Doug Malcuit's/Sinatra Homes Appearance Before the Board Regarding Water Rates/Consumption Issues.
Andruskiewicz stated that he moved to the area from Florida on August 1, 2000. He said that Sinatra Homes built his house. He stated that he is a victim because he was unaware of the rates. He said that when his wife made application for service, she was given some documentation but that the only information she received regarding the rates was the table in the March 2000 Newsletter. He noted that according to the table, the cost for 75,000 gallons is $323.00.
Andruskiewicz said they put $20,000.00 into landscaping at their home in Saddlebrook Estates. He said they watered and watered because nobody told them about the rates. He stated that when Drury called and told him that he had a consumption of 270,000 gallons on his meter and that his bill would be $8,500.00, he laughed because he thought it was a joke or an error. He said he could not imagine getting a bill that was double his mortgage payment or equal to one semester of tuition for college.
Andruskiewicz said they had cut back on watering dramatically. He said that he did not deny watering heavily but that he was not warned. He said that he understands now that new residents have to sign that they have received a copy of the rates. He said that it was his mistake but it was Bartonville WSC'S mistake too for not warning him. He said that he was appealing to the Board as a new resident.
Anderson stated that she would like to address the issue as he is her neighbor. She said she joined the Board because of her concern for misuse of water and not just because of the rates. She noted that she had been on a previous Board that had high rates. She welcomed people to seek the vacant position on the Board.
Anderson told Andruskiewicz that she gave him her commitment to look into the rates and rates for landscape watering. She stated that people who move to the area need to be aware that August is not the time to put in landscaping. She also noted that the soil and type of landscaping needs to be considered.
Andruskiewicz stated that he had expected a bill of about $1,500.00 as they were accustomed to receiving a bill in that range. He reiterated that they based their use of water on the cost of 75,000 gallons. He noted that he is concerned about the new people who move to the area who are not warned.
Anderson stated that the home builders need to take some responsibility for informing new home owners about proper landscaping.
Doug Malcuit, owner of Sinatra Homes responded that they spent a lot of money and effort to landscape correctly. He stated that he had been to the office twice personally and that Jeff Zimmerman has been in once to make deposits for water service and that he had never seen a rate table. Drury informed him that the rate information is included in the packets that are given to people when they make application for service. Malcuit replied that if one was given to Zimmerman, he never received it. He said that the only thing he received was a service agreement.
Malcuit stated that he wanted to address the issue of The Town of Bartonville's requirement that homes be built on at least two acres. He said that most people who spend $700,000 on a home do not expect to have a 50 x 50 yard or a dirt yard. He noted that he installed a sprinkler system for an acre of sod and landscaping. He agreed that putting the yard in for Adruskiewicz in July when the temperature was 105 was the wrong time of the year. Malcuit stated, however, that Andruskiewicz was moving in and that he was unaware of the cost of watering.
Malcuit said that he is concerned about building more large homes on two acres in a subdivision with certain restrictions in an area with high rates. He noted that if he had received some education on the rates, he could have drilled a well. He said that Bartonville WSC is looking at 100 lots in Saddlebrook Estates that will consume more than 100,000 gallons a month.
Malcuit said he did not know what to as he had told Andruskiewicz that his bill would be about $1,500. He noted that they monitored the sprinkler system, and it was using about 6,000 gallons a day. He said they cut it back to 3,500 gallons a day. He reiterated again that his biggest issue is that they were not told about the rates.
Paulson replied that the Board could make sure that the rate schedule is given to all new applicants for service. Drury noted that the rates have always been given to new applicants but that now applicants are required to sign a copy of the rate schedule as proof that they received it.
Leggieri stated that he wanted the Board to know that he had confidence in his employees that they were giving applicants copies of the rates. Leggieri noted that the only thing that has changed on the sheet is the line for the signatures so that the form can be filed as proof of receipt. He said the problem will be with people who do not read what they sign. He noted that the necessity of giving new applicants all the information had been stressed months ago. He responded that the rate table in the Newsletter only went to 75,000 gallons because that amount was double what the majority of members use.
Leggieri told Malcuit that his irrigator did him a disservice by installing a system that consumes 6,000 gallons a day with the potential to use 300,000 to 400,000 gallons per month. Leggieri inquired how much water is enough.
Malcuit stated that he did not think the irrigation system is the issue. He said that when a system is installed for an acre, the system has to be divided into zones. He noted the real issue is that the Town of Bartonville requires a developer to have 2 acre lots in an addition that requires a certain amount of square feet in a home for a six figure price. Malcuit stated that the Board needs to tell The Town of Bartonville it needs to require smaller lots. He said The Town of Bartonville and Bartonville WSC need to work together.
Paulson replied that the Board does not address issues regarding the Town of Bartonville but only addresses water issues. He stated that the Board has a presentation that includes the rates that has been given to any Town that requested it. He noted at the annual meeting conservation and drought were topics of discussion. Paulson also noted that the rates are set in a public meeting and that a formula that includes all of the costs to operate the system is used to set the rates.
Andruskiewicz stated, although it did not help him, he appreciated the Board's time and steps to make sure that everyone has a copy of the rate schedule. He suggested a warning be included with the rate schedule in the Newsletter.
Malcuit requested that within 30 days, if possible, he would like to know what the Town of Bartonville is going to do about its requirements for the builders, how the builders can do landscaping, and will there be special or reduced rates for the installation of new lawns.
Ginn stated that he had listened to the discussion, and he wanted to say, if Bartonville WSC built facilities to meet these ultimate demands for everyone, the debt service would have to be figured in the rate structure. He stated that all the costs associated with the water purchased from the UTRWD has to go into the rate structure.
Malcuit stated that with the purchase of the land south of Saddlebrook Estates, Bartonville WSC will be supplying water to 200 homes with these high demands. Ginn stated that Bartonville WSC would try to do more on the information side, and the builders need to do more due diligence. Leggieri remarked that a 1960's yard can not be designed based on 1960 water rates because they do not exist anymore.
Paulson noted there are other realistic factors that need to be considered. He said he had a well established yard that he watered but part of it and some trees died. He noted that trees have died all over the area.
Malcuit stated that all he was asking was to negotiate the bill; he said he was only asking for something fair. Alberts stated that if the irrigator was doing landscaping for the first time in Bartonville, he should have investigated. He said all the blame should not be on Bartonville WSC.
Paulson stated that the Board still had a number of agenda items to consider and closed the discussion. He moved to the Consent Agenda.
CONSENT AGENDA
Motion by Anderson and second by Alberts to approve the Consent Agenda. Motion approved unanimously. The two items approved were:
3. Approve the Minutes of the August 17, 2000 Board Meeting.
4. Accept the August 2000 Disbursements and Financial Reports.
ITEMS FOR INDIVIDUAL CONSIDERATION
5. Discussion and Action on all Matters Regarding Camp Briarwood/Murray Construction Water Line Easement Restoration Issue.
Leggieri reported that he talked to Mike Lamb of Murray Construction who made a proposal to pay Briarwood Camp $5,575.00. Leggieri noted that Briarwood had requested $15,000.00. Leggieri said he asked Lamb to let him write the camp and explain that there would be additional damage when the UTRWD installs its line. He said he proposed to Lamb that it would be a good faith effort to offer the camp the total amount that is due Murray. Leggieri said that he told Lamb when Bartonville WSC receives a notification from the camp that the issue is resolved, then Bartonville WSC will make final payment to Murray Construction.
6. Discussion and Action on All Matters Associated with Argyle Water Supply Corporation's Request for Modification of Common Certificated (CCN) Boundaries.
Leggieri reported that Argyle WSC is requesting that the CCN boundary lines be better defined by the use of roads and highways. He noted that he also requested information from Denton. He noted that no existing customers will be transferred . He said that the uncertificated areas will be included in the correct CCN. He noted that an application can be filled with TCEQ if necessary. Motion by Johnson and second by Alberts to permit Leggieri to develop a revised map to clarify areas with Argyle WSC, to deal with uncertified areas, and to bring the revised map to the Board for approval. Motion approved unanimously.
8. Discussion and Action on Presentation by H.W. Ginn, PE, Regarding Direction for Future Projects/Master Plan Update Issues.
Ginn presented a global overview of future projects with projected costs for the update of the Master Plan. He said the next step would be to formulate the projects that are needed for the next five years. Johnson requested that Leggieri compile more general information on the off setting expenses and an estimate of the debt service for the proposed conversion to radio read meters.
9. Action on by the Board of Directors Recognizing Past President Joe Graves' Years of Dedication and Service to Bartonville Water Supply Corporation.
Paulson suggested that the Board recognize Directors who retire after ten years by hanging their portraits with a plaque noting their years of service in the Board room. Motion by Anderson and second by Johnson that the Staff on having portraits made. Motion approved unanimously.
10. Staff and Consultant Reports
Discussion was held on the response to the members comments made regarding the rates and new lawn exemptions.
11. Review Future Agenda Item, Activities and Announcements, and Set Date and Time of the October Meeting.
The next regular meeting was set for Tuesday, October 17, 2000 because of scheduling conflicts.
12. Adjournment
Motion by Anderson and second by Alberts to adjourn the meeting. Motion carried unanimously; the meeting adjourned at 11:01p.m.
Recorded by Betty Robertson, Deputy Secretary-Treasurer
Certified by Larry Kaufman, Secretary-Treasurer