1. Call to Order.

President Paulson called the meeting of the Board of Directors of Bartonville Water Supply Corporation to order at 7:04 p.m. on Monday, May 12, 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
Scott Kilpatrick
Dale Mutschler
Kevin Alberts
Lloyd Hanson

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

Staff in Attendance
Jim Leggieri, General Manager
Marcy Gustafson, Administrative Assistant

Others in Attendance
Kathy Gregory, AIA Insurance

2. Executive Session.

Paulson announced at 7:04 p.m. that the Board would convene in Executive Session concerning:

a) All Matters Concerning the Securing of Easements/Hilltop Rd. Waterline, Pursuant to Government Code, Section 551.072.
b) All Matters Concerning Real Property of the Corporation, Including the Securing of an Additional Well Site Pursuant to Government Code Section 551.072.

The Board took no action and reconvened in Open Session at 7:32 p.m.

 

ITEMS FOR INDIVIDUAL CONSIDERATION

7. Discussion and Action on Corporate Insurance Policy, Including Presentation by Ms. Kathy Gregory, AIA Insurance.

Ms. Kathy Gregory introduced herself and reviewed the information that was included in the Board packets. Paulson asked what the reason was for the higher premium for the directors and officers. Ms. Gregory explained that the reason was that the program for the Texas Rural Water Association members has moved to Travelers Insurance. Ms. Gregory explained that with Travelers the coverage is broader and they are an A++ rated company. Ms. Gregory explained the new policy offers breach of contract coverage, but the drawback is the fixed costs are inside the limits, not in addition to. Hanson asked about the coverage per director. Ms. Gregory explained the coverage is not $2,000,000 per director, but the total for all directors. Ms. Gregory explained the difference in the $250 and $5,000 deductible was about $1,200 per year. Drury asked Ms. Gregory to explain the terrorism policy. Ms. Gregory explained that the coverage has been included before and came about as a result of the Terrorist Act passed by Congress in November 2002. Ms. Gregory explained the main reason Congress passed the act was due to the fact that after September 11, 2001 most other states immediately excluded terrorism coverage on their policies. Ms. Gregory explained that the bill states that the federal government will reimburse the insurance companies if there is another terrorist incident, thereby allowing the insurance companies to offer the terrorism coverage. Ms. Gregory stated that they are not having a lot of water suppliers buying the terrorist coverage because there are a lot of parameters that have to be met in order for an incident to be considered a terrorist act, but she suggested the coverage for BWSC due to the close proximity to the DFW area. Greaves asked that if BWSC has no terrorist coverage, is there would be any support from the government. Ms. Gregory explained that if there is a terrorist incident and it is declared as such, if there is no coverage, there is no payment and it is not covered under the regular policy. Ms. Gregory stated that there was an increase in the general liability due to the increase in payroll. Drury explained that the payroll from the budget is used and the end of the year an audit is done and if the payroll is not used, a refund is possible. Kaufman asked about claims against BWSC property. Leggieri stated that BWSC has not really had any claims. Greaves asked if $2,000,000 in coverage would be sufficient. Ms. Gregory suggested binding the $2,000,000 so that BWSC would have insurance coverage and then if BWSC would like the limits changed it can be done at a later date. Motion by Hanson to the accept the $5,000 deductible, with a option of higher director coverage. Second by Mutschler. Motion carried unanimously. Ronnie Phillips, Esq. recommended $5,000,000 in coverage, considering the income generated and would be a benefit to the members. Greaves asked about the terrorism coverage. Kaufman stated that he thought the terrorism coverage was needed.

 

3. Public Forum.

Kevin Mourning and members of the Cross Timbers Estates Subdivision stated that they were attending the meeting to gather information in reference to the proposed Taylor Oaks Subdivision in reference as to how the new subdivision would affect their water pressure and availability. Mr. Gall stated that he was concerned with pressure on a "small" line with future development. Mr. Auringer stated that he was concerned because he currently monitors his pressure, 32 to 70 psi, and since he is already having problems wonders what future development will do to it. Wayne Ginn, P.E. Wayne Ginn, P.E. explained the process of a new subdivision. Wayne Ginn, P.E. stated that the developer has submitted a proposed preliminary water plan and explained that BWSC has an obligation to serve any development within our certificated area (CCN). Wayne Ginn, P.E. stated that the developer submits a preliminary plan which lets the developer proceed with their planning process and the issues of zoning, drainage, and streets are all reviewed by the appropriate town, in this case, Double Oak. Wayne Ginn, P.E. stated that the BWSC subdivision requirements require a developer to install 8" lines or larger and fire hydrants. Wayne Ginn, P.E. stated that according to the preliminary water plans that have been submitted, the requirements have been met. Wayne Ginn, P.E. showed an example of the proposed water line tie-ins that would affect the Cross Timbers subdivision and stated that the tie-ins should enhance their lines creating a loop. Leggieri explained the Insurance Services Organization (ISO) recently evaluated the DOVFD, with 40% of the evaluation pertaining to the water system. Leggieri explained the water system passed the evaluation.

 

9. Discussion and Action on Approval of the Preliminary Water Plan for Taylor Oaks Estates Subdivision/Town of Double Oak.

After discussion, Motion by Kaufman and second by Mutschler to approve the preliminary water plan for Taylor Oaks Estates Subdivision/Town of Double Oak. Motion carried unanimously.

4. Approve the Minutes of the March 11, 2003 and April 14, 2003 Board Meeting.

Motion by Kaufman and second by Greaves to approve the Minutes of the March 11, 2003 and April 14, 2003 with the correction on the April 14, 2003 minutes of deleting Johnson in attendance and adding Hanson. Motion carried unanimously.

 

5. Approve the March and April 2003 Disbursements and Financial Reports.

Drury explained that water sales increased and the UTRWD expenses have increased slightly due to the fact that the UTRWD has started enforcing the take or pay. Drury explained that BWSC has to maintain a certain level of consumption. Kaufman asked if BWSC is paying for any water that we are not receiving. Drury stated that BWSC is only paying for the water that it uses. Motion by Kaufman and second by Mutschler to accept the March and April 2003 disbursements and financial reports. Motion carried unanimously.

3. Approve the Minutes of the Meeting February 11, 2003 Board Meeting.

Motion by Kilpatrick and second by Mutschler to approve the minutes of the February 11, 2003 Board meeting. Motion carried unanimously.

5. Approve the February 2003 Disbursements and Financial Report.

Motion by Kaufman and second by Mutschler to approve the February 2003 disbursements and financial report. Motion carried unanimously.

9. Discussion and Action on Final Approval of Barrington Hills On-Site Water Lines.

Leggieri stated that the staff approved the Barrington Hills on-site water lines and all necessary fees have been paid. Motion by Kilpatrick and second by Mutschler to approve the Barrington Hills on site water lines. Motion carried unanimously.

10. Discussion and Action on All Matters Regarding Roles/Responsibilities of Professional Consultants for the Corporation.

No discussion or action.

13. Discussion and Action on All Matters Concerning the Securing of Easements/ Hilltop Road Waterline.

No discussion or action.

14. Discussion and Action on All Matters Concerning Real Property of the Corporation, Including the Securing of an Additional Well Site.

No discussion or action.

15. Staff Reports.

Leggieri stated that the meters at the chosen pump stations were being changed out for participation in the I.T.U (Industrial Time of Use) program offered by CoServ.

16. Consultants Reports.

None.

17. Review Future Agenda Items, Activities, Announcements, Set the Date for the April 2003 Meeting.

A Roles and Responsibilities workshop was scheduled for Monday, March 31, 2003 at 7 p.m. at the corporation office. The Annual Meeting was scheduled for Monday, April 14, 2003 at 7:30 pm at the Crossroads Bible Church.

18. Adjournment.

Motion by Kaufman and second by Greaves to adjourn the meeting. Motion approved unanimously. The meeting adjourned at 9:35 p.m.

 

Recorded by Marcy Gustafson, Administrative Assistant

Certified by Larry Kaufman, Secretary-Treasurer

 

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