1. Call to Order.

President Paulson called the meeting of the Board of Directors of Bartonville Water Supply Corporation to order at 7:08 p.m. on Monday, December 15, 2003 at the corporation office, 1911 East Jeter Road, Bartonville, Texas.

Directors in Attendance

Michael Paulson, President
Thomas Greaves, Vice-President
Larry Kaufman, Secretary-Treasurer
Kevin Alberts
Lloyd Hanson
Dale Mutschler

Directors Absent

Scott Kilpatrick

Consultants in Attendance
Jennifer Drury, CPA
Wayne Ginn, PE
Ronnie Phillips, Esq.

Staff in Attendance
Jim Leggieri, General Manager
Rena Vincent, Billing

2. Executive Session.

Paulson announced at 7:08 p.m. that the Board would convene in Executive Session concerning:

a) All Matters Concerning the Securing of Easements/R.O.W. for the Hilltop Rd. Waterline/ Stargate Pump Station Site, Pursuant to Government Code, Section 551.072.

b) All Matters Concerning the Securing of the Waterline Easement/ Thornhill Ranch Estates, Block A Lot 9, Pursuant to Government Code, Section 551.072.

The Board took no action and reconvened in Open Session at 7:24 p.m.

3. Public Forum

No one was present.

 

4. Approve the Minutes of the November 24, 2003 Board Meeting.

Motion by Kaufman and second by Mutschler to approve the minutes of the November 24, 2003 Board meeting. Motion carried unanimously.

5. Approve the November 2003 Disbursements and Financial Report.

Drury stated that the largest payment in November was to EM Construction for approximately $50,000. Also, there is another payment of $193,415.25 ready for Board Approval and signatures. BWSC is on budget with a little higher income. Drury explained office supplies increased due to computer/software maintenance fees. BWSC had 2 new members in November. Mr. Hanson asked to have YTD Cash flows added to financial reports.

Mr. Paulson questioned why office supplies and equipment expenses were so high. Drury stated it was due to computer/software maintenance and that the cost of printing rate notices along with postage for mailing them was put in the office supplies and equipment G/L code.

Motion by Kaufman and second by Hanson to accept the November 2003 disbursements and financial reports. Motion carried unanimously.

6. Discussion on Action on All Matters Concerning Writing Off Bad Debt Accounts

Drury explained that BWSC had $214.87 in bad debt expense. Drury stated that every attempt has been made to collect the accounts.

Motion by Kaufman and second by Mutschler to approve writing off of bad debt. Motion carried unanimously.

7. Discussion and Action on Payment of 2004 TRWA Dues and Voluntary Contributions.

Drury explained that the bill has been adjusted to reflect the number of connections. TRWA bill includes suggested voluntary contributions of $100 to building fund, $100 to legal fund and $25 to scholarship fund.

Motion by Kaufman and second by Alberts to pay contributions in the amount of $225 along with the dues to TRWA. Motion carried unanimously.

8. Discussion and Action on Approval of Payment Request #2 from E M Construction and Work to Date on the Hilltop Rd. Waterline.

Wayne Ginn, PE stated that the payment request is for work completed through November 30, 2003. Ginn stated that BWSC is under contract and is obligated to pay on a monthly basis. Ginn stated it is not necessary to be an agenda item, but that he wants the Board to see the payment requests so they can keep up with the project. The final payment will require Board approval.

Motion by Hanson and second by Kaufman to accept payment request #2 from EM Construction in the amount of $193,415.25 for work completed through November 30, 2003. Motion carried unanimously.

9. Discussion and Action on Easements/R.O.W. for the Hilltop Rd. Waterline/ Stargate Pump Station Site.

No Discussion. No Action.

10. Discussion and Action on All Matters Concerning the Securing of the Waterline Easement/ Thornhill Ranch Estates, Block A Lot 9.

No Discussion. No Action.

11. Discussion and Action on All Matters Concerning the Board's Policy Regarding Contractor Bonding and Capital Projects Contractor's Security in Relation to Stargate.

Ginn stated he would like to get a bid from a different contractor for the roadwork portion of the Stargate project. Ginn explained that he has seen this contractor's work but the contractor does not accept performance and payment bonding jobs. Ginn asked if the Board would consider using a contractor without performance and payment bonding? Ginn stated that the roadwork needs to be done in 2 phases and the new contractor wouldn't require payment until the job was completed. Ginn stated he would work with Mr. Ronnie Phillips on the proper legal wording if the Board were to award the roadwork to a different contractor. Paulson asked if the contractor carried liability insurance and Ginn stated that the contractor did have his certificate of liability insurance.

Phillips stated that assuming the contractor were incorporated that he didn't think it would be a problem, but would want a personal guarantee of performance built into the contract. Also, the contractor would have to agree to wait until 31 days after the 2 nd phase is completed for payment. Since BWSC is not a government entity it is not necessary to require contractors to have performance and payment bonding. Phillips stated that unless the job is more than half a million dollars and the contractor is willing to give a personal guarantee then performance and payment bonding is not necessary. Ginn explained that BWSC would only pay contractor for the portion of the project that is considered acceptable.

Hanson questioned if Mr. Buck Monroe, having so many lawyers, could create a problem if damage were to occur? Phillips stated the contractor's liability insurance would cover any claims for damages and that BWSC would only have to pay the contractor for what is considered acceptable work.

Paulson stated that the Board wouldn't have any objections to Ginn investigating pricing for a new contractor to do the roadwork on the Stargate project and the Board would speak about it again at the meeting in January 2004.

No Action.

12. Discussion and Action on Approval of BWSC's “Monitoring Plan” for System Disinfectant Residuals.

Leggieri stated that the TCEQ is requiring written procedures on sampling disinfectant residuals on file by the end of this month. BWSC has actually been doing this for years; it just needs to be put in writing. Written procedures are now a requirement and quarterly reports will need to be sent to the TCEQ.

Motion by Alberts and second by Hanson to approve Monitoring Plan for System Disinfectant Residuals. Motion carried unanimously.

13. Staff Reports.

Leggieri informed the Board that he would like to have a presentation of the SCADA system at the January 2004 Board meeting. Leggieri received a letter from Mr. David Smith at I&C Sales regarding the history with the BWSC SCADA system, what the problems are now and how they can be fixed. Leggieri explained that BWSC manually inputs production and feels this should be automatic with the SCADA system but it presently is not accurate. Smith feels the problem can be fixed with the current system in place. Leggieri passed out a copy of Smith's letter to Board members to be discussed in the January 2004 Board meeting.

Leggieri passed out a list of his goals as General Manager for the Board to review. The Board will discuss at the January 2004 Board Meeting.

Drury stated that the financial audit would start in January 2004. The Board asked if BWSC had heard from Mr. Buschman and Drury stated that he had agreed to the 6 month deferred payment arrangement.

14. Consultants Reports.

None.

15. Review Future Agenda Items, Activities, Announcements, Set the Time and Date of the January 2004 Meeting.

The next regular Board meeting is scheduled for Monday, January 19, 2003 at 7:00 p.m. at the corporation office. Items to discuss will be SCADA System, Leggieri's goals, and Road Contractor.

16. Adjournment.

Motion by Mutschler and second by Kaufman to adjourn the meeting. Motion approved unanimously. The meeting adjourned at 8:01 p.m.

Recorded by Rena Vincent, Billing

Certified by Larry Kaufman, Secretary-Treasurer

 

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