1. Call to Order.

President Paulson called the meeting of the Board of Directors of Bartonville Water Supply Corporation to order at 7:07 p.m. on Monday, September 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
Scott Kilpatrick
Lloyd Hanson
Kevin Alberts

Directors Absent

Dale Mutschler

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

Fred Brown - Double Oak
Denis Bedard - Double Oak
Shirley Bedard - Double Oak
Elizabeth (Betty) Ellis - Double Oak
Jim Fiegenschue - Double Oak
Meg Fiegenschue - Double Oak
Kathy Gregory - AIA Insurance

11. Discussion and Action on Request for Placement of a Fire Hydrant on Oak Grove Circle in Double Oak, Texas.

Leggieri stated that some possibilities for placing a fire hydrant on Oak Grove Circle were included in the Board packets. Leggieri stated that he had spoken with Mr. Miniassian about obtaining an easement on his property for a waterline and that Mr. Miniassian had no objections. Leggieri stated that the major concern of Mr. Miniassian was his oak trees. Leggieri stated that there is less than 5 1/2 feet between the trees and fence. This area contains a water well and sprinkler system, which would require hand digging to go through the surface. Leggieri stated that there is currently a 20' access easement and that the Town of Double Oak has no objection to a water line being installed in the easement. Leggieri stated that he investigated an option of horizontal directional drilling (HDD) or under ground boring. This method allows the contractor to bore under the surface without disturbing the obstacles. Leggieri stated that after speaking with an HDD contractor, it might be possible to bore and lay the main without a casing. Leggieri stated that from Lake Trail to Oak Grove Circle, approximately 300', the cost could be $62.00 per foot. Leggieri stated that the cost to tie into the 4" main and set a fire hydrant would be a minimum of $25,000 to $30,000. Leggieri stated that he also contacted Mr. Russell Mabra, DOVFD Chief, who indicated that as long as the resident's house was within 1,000' of a fire hydrant they would benefit from the reduced ISO rating. Kaufman asked if BWSC would need an easement to go through Mr. Miniassian's property if there were a line break and would BWSC be required to guarantee not to kill the oak trees. Leggieri stated that Mr. Minisassian would grant the easement but the risk of killing the trees may be reduced if poly pipe were used, which is not currently used in BWSC's system. Kilpatrick asked what the cost was for a typical installation. Leggieri stated that a typical surface installation costs approximately $18.00 per foot. Mrs. Bedard asked if it would be possible to upgrade the 4" main to an 8" main. Leggieri stated that the only line to tie into would be a 4" and the minimum size to install a fire hydrant is an 8". Paulson asked if both the 4" lines along Tanglewood and Oak Grove Circle would have to be upgraded and for what distance. Leggieri stated that from Tanglewood to Oak Grove Circle the distance was 450' and from Oak Grove Circle to the back of the cul-de-sac the distance was 700'. Mr. Helmer stated that he liked the idea of upgrading along Cross Timbers (Tanglewood to Valley View). Leggieri stated that upgrading along Cross Timbers is already in the Master Plan. Paulson stated that the entire situation would need to be studied in more depth and that he thought the members would be better served to put the line along Cross Timbers. Mr. Bedard expressed his concern about not having a fire hydrant in the area after there was a fire several years ago and there was no way to get water to the fire. Paulson stated that he thought the input from the members was helpful and motivational, but it should be studied more before going forward. Kilpatrick suggested that the members contact the Town of Double Oak to see if they would help fund the project. Ms. Figenshue asked if private donations would be accepted in order to get the project done. Paulson stated that the use of private donations could be researched. Kaufman asked about the age of the 4" line. Leggieri stated that he thought the line was installed in the late 1960's. Mr. Brown asked when there would be a follow up discussion. Kaufman stated that he would like BWSC to pursue the R.O.W issue with Mr. Minassian. Mr. Brown asked what the next step would be. Kilpatrick stated that the members should talk to the Town of Double Oak and talk to their neighbors, and the BWSC staff would investigate all the options. No action.

7. Discussion and Action on Selecting the Corporation's Officers and Directors Liability Insurance Policy Limits.

Kathy Gregory with AIA Insurance stated that the current officers and directors liability coverage is two million dollars and she has obtained quotes for three, four and five million from Travelers, who carries the current coverage. Ms. Gregory stated that she also obtained quotes for an additional policy, or excess policy, that would be in addition to the Travelers maximum limit of five million. Ms. Gregory stated that the excess policy would be in effect after Travelers paid a claim up to their limits. Ms. Gregory stated that she is not happy with what has been quoted and has her staff working on another option. Ms. Gregory stated that the Travelers policy, regardless of the limits, only gives one million dollars on employment practices, since these have been the most common and biggest cases in non-profit groups nationwide. Ms. Gregory stated that the cases included discrimination, sexual harassment, wrongful termination, etc. Ms. Gregory stated that this concerned her to only have one million dollars in coverage with a system as big as BWSC. Ms. Gregory stated that she had another quote from United States Liability Insurance Company and that the limits can be chosen and the premiums will correspond. Ms. Gregory stated that she does not like that policy since it has an exclusion for failure to supply water, which is not a good exclusion to have being in the water business. Ms. Gregory stated that she is working with a broker to find another policy, which could mean changing from Travelers. Ms. Gregory stated that since the two million dollar coverage is in place, she would like to take more time to find different coverage, but in the mean time the coverage can be raised to five million. Paulson asked Ronnie Phillips what are other water companies doing? Mr. Phillips stated that it depends on the earnings and what money is available for the policy and that most of the directors are getting five million to eight million for the excess coverage. Mr. Phillips stated that he thought five to six million dollars of coverage was within the realm of what others were doing. Ms. Gregory stated that out of the policies they write, not many companies carry excess coverage. Kaufman suggested getting five million in coverage and research other options. Motion by Kaufman and second by Hanson to increase the corporation's officers and directors liability coverage to five million dollars. Motion carried unanimously.

 

2. Executive Session.

Paulson announced at 8:00 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.

The Board took no action and reconvened in Open Session at 8:15 p.m.

4. Approve the Minutes of the August 18, 2003 Board Meeting.

Motion by Kaufman and second by Greaves to approve the minutes of the August 18, 2003 Board meeting. Motion carried unanimously.

5. Approve the August 2003 Disbursements and Financial Report.

Drury stated that the month of August has been the best month for revenue so far this year. Drury stated that the I.T.U. (Industrial Time Usage) for the August electricity bill might be about $9,000 less than budgeted. Drury stated that the expenses have been in line and there were seven new installations. Motion by Kaufman and second by Greaves to accept the August 2003 disbursements and financial report. Motion carried unanimously.

6. Discussion and Action on All Matters Concerning Mr. Kelly Nelson's Request to Appear Before the Board for a Variance to the Catastrophic Water Loss Adjustment Policy.

Drury stated that Mr. Nelson had requested a catastrophic water loss adjustment and according to the policy, did not qualify. Mr. Nelson filled his pool during the month of his greatest consumption. Drury stated that Mr. Nelson felt that filling a pool is not normal usage and the month in which his pool was filled should not be considered in determining if he qualified. Drury explained that since the policy defines "greatest normal consumption" the standard definition of "normal" is not applicable. Drury stated that it was researched and if the month in which the pool was filled was not used in the calculation, Mr. Nelson would qualify. Drury stated that the policy has never been applied in that manner and the corporation tries to make sure all policies are applied with consistency. Kaufman agreed with the adjustment not being granted and stated that his concern was the usage of "normal" and suggested it might be removed from the wording of the policy. Phillips stated that since he does not comply with the policy another variance within the terms of the policy could be used. Kaufman stated that he felt the staff has done a good job in following the procedure for granting the adjustments. Kilpatrick asked Leggieri what his thoughts were. Leggieri stated that he considered filling a pool normal. Paulson stated that he thought the staff advised Mr. Nelson and followed the policy and therefore the Board should take no action. Motion by Kaufman and second by Hanson to deny Mr. Nelson's request for a variance to the catastrophic water loss adjustment policy. Motion carried unanimously.

8. Discussion and Action on All Matters Concerning the Renewal of the $1,500,000 Line of Credit with NorthStar Bank.

Drury explained that the annual renewal on the line of credit is in October. Drury explained that NorthStar Bank has offered renewal rates with a floor of 5.5% and a ceiling of 6.5%. Drury explained that there would be filing fees, under $1,000. Motion by Kaufman and second by Alberts to renew the line of credit with NorthStar Bank. Motion carried unanimously.

9. Discussion and Action on All Matters Concerning the Renewal of the $1,000,000 Certificate of Deposit with NorthStar Bank.

Drury explained that the annual renewal on the certificate of deposit is in October. Drury explained that the going rate is 1.55% and NorthStar is offering a guaranteed 2.3% rate. Drury explained that she called other banks and none could match what NorthStar was offering. Motion by Kaufman and second by Kilpatrick to renew the certificate of deposit with NorthStar Bank. Motion carried unanimously.

10. Discussion and Action on All Matters Concerning a Contribution to the Double Oak Gazette for Publishing Monthly BWSC Related Items.

Leggieri explained that the Double Oak Gazette is a monthly publication that serves the BWSC service area and BWSC contributes articles on a regular basis. Leggieri stated that since BWSC articles are published on a monthly basis, BWSC could donate a monetary contribution to help off set the costs of the publication, since there is no fee to submit articles. Leggieri stated that BWSC spends approximately $2,500 yearly to publish and mail the BWSC quarterly newsletter, and by donating to the Double Oak gazette, BWSC could save almost $1,000 on the newsletter. Kaufman stated that the quarterly newsletter from BWSC should continue since it is our own publication. Paulson stated that maybe an ad should be taken out for the Annual Meeting. Kilpatrick stated he thought it is a great cost saving idea, but not all areas are receiving the Double Oak Gazette. Alberts suggested checking into getting rates for running an ad. No action.

 

12. Discussion and Action on all Matters Concerning BWSC's Policies Regarding Agenda Item Limitation and Agenda Deadline.

Paulson stated that more revisions should be made. Paulson stated that the Emergency Agenda Items should fall within the ten-day window. Drury stated that "emergency" was being taken in different context and emergency should actually be emergency sessions as permitted by law. No action.

 

13. Discussion and Action on Easements/R.O.W. for the Hilltop Road Water Line/Stargate Pump Station Site.

No discussion. No Action.

 

14. Discussion and Action on All Matters Concerning the Securing of the Waterline Easement/ Thornhill Ranch Estates, Block 1 Lot 9.

No discussion. No action.

15. Management/Staff Report.

None.

16. Financial Consultant's Report.

Drury stated that next month the preliminary budget would be presented at the board meeting. Drury suggested a workshop before the next Board meeting. Kaufman asked if Drury could use the budget packet and show how items fall into place to determine the budget.

 

17. Engineering Consultant's Report.

Wayne Ginn, P.E. stated that the contracts have been executed for the Hilltop Road waterline project and that he and Leggieri will be meeting with the construction company next week for the pre-construction meeting.

18. Review Future Agenda Items, Activities, Announcements, and Set the Time and Date of the October Meeting.

A workshop is scheduled for Tuesday, October 7, 2003 at 7 p.m. at the corporation office. The next regular meeting is scheduled for Wednesday, October 22, 2003 at 7 p.m. at the corporation office.

19. Adjournment.

Motion by Kaufman and second by Hanson to adjourn the meeting. Motion approved unanimously. The meeting adjourned at 9:26 p.m.

Recorded by Marcy Gustafson, Administrative Assistant

Certified by Larry Kaufman, Secretary-Treasurer

 

Use the back button on your browser to return to the index or go to the Home Page.