Minutes of the Bartonville Water Supply Corporation

Board of Directors Meeting

Thursday, October 8, 1998

Bartonville Water Supply Corporation Office

1911 East Jeter Road

Bartonville, Texas

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1. Call to Order

The regular meeting of the Board of Directors of Bartonville Water Supply Corporation was called to order by President Graves at 7:10 P.M. on Thursday,October 8, 1998 at the corporation office.

Directors in Attendance

Joe Graves, President

Larry Kaufman, Secretary-Treasurer

Philip Block

Jan Loeckle

Directors Absent

Scott Kilpatrick, Vice-President

Kevin Alberts

Consultants in Attendance

Wayne Ginn, P.E., the Ginn Corporation

Staff in Attendance

Jim Leggieri, General Manager

Betty Robertson, Administrator

Others in Attendance

Melissa Dewitt, CPA, Crain & Company

Ingrid Rex, Representative for Kim Clement

Roy Caldwell, Representative for Kim Clement

Rusty Potter, Neighbor of Kim Clement

Pat DiFonzo, President of Zena Development

Tim Welch,Welch Engineering, Inc.

Jake Hersman, Developer of Copper Hills

President Graves noted the next item on the agenda would be Item 18.

18. Discussion and Action on Kim and Jane Clement’s Request Regarding Their September Water Bill.

Leggieri explained that the Clements were not present but would be represented by Caldwell. Leggieri stated the Clements received a large bill for over 300,000 gallons for a 30 day period which was in excess of $5000.00. He noted that BWSC employees were on site on a couple of occasions. He said it was the consensus of Caldwell that there was not a leak or if there was a leak, it was not substantial enough to have used that much water. Leggieri stated now they are trying to make a determination as to where the water went. He remarked that if the water did not go through the meter, the only alternative is that the meter is bad. He noted that a repair was made to a leak on BWSC’s side but that it would not have registered on the meter. He said that when the repair was made the meter which had been in service for 10 years was also changed out according to policy. Leggieri stated a reading was taken on the old meter before it was brought to the warehouse. He noted that Caldwell is wondering if the meter could have been dropped which caused it to over register. Leggieri said that he told Caldwell that rather than speculate, he would have the meter tested. He noted that he was very specific in his letter to the testing company and requested the testing company to look at anything, including the meter being dropped, that could cause it to over register other than water going through it. He noted that a determination can be made after the certified tests results are received. He said he invited Caldwell to come to the meeting and to make a presentation.

Caldwell stated that during this period of time the entire Clement family was in South Africa. Caldwell said that the notification that was left on the door noted there was a leak on the consumer’s side of the meter and that there was a leak in the sprinkler box. He said Potter, the next door neighbor, brought his

submersible pump and helped pump out the water from the two boxes. Caldwell explained that both Clement’s and Potter’s two meter boxes are at the lowest point on that side of the driveway. He said that both Clement’s and Potter’s sprinkler systems water the narrow section of grass and the water flows to that point and goes under the driveway toward the lake. Caldwell stated after pumping out the box, he found no leak. He then switched off the sprinkler system that the night; the next day it was still dry. Caldwell stated that from August 10 to August 28, which was 17 days, 268,000 gallons were consumed while the family was absent. He noted that in comparison, from August 28 to to September 10, which was 13 days, 45,900 gallons were consumed with the family at home. Caldwell also noted that during the month of May a swimming pool was installed and the water bill was $275.00. Caldwell stated according to his arithmetic, there is something radically wrong. He said the Clements prepared a survey for the last three years, and the most expensive bill was for $653.00. He said it is suspicious that the bill for $5,333.73 occurred the month the meter was changed out. He said they feel there is a problem somewhere.

Graves inquired if the inside of the house was checked for a leak. Caldwell stated that both the inside and outside had been checked. He noted that they had a water test in February or March because they had an aerobic system installed by Bob Malone who told them they were using a lot of water. Caldwell stated that it is a large family and they do use a lot of water, but not 316,000 gallons in a month. Leggieri stated that Caldwell does not have an explanation of the water use nor does he; therefore, he felt that it best to have the meter tested since it is the only measuring device BWSC has. Graves inquired if anyone could have used the water while the Clement family was away. Rex replied that the Clements had a couple who was house sitting for them and that Caldwell was on site daily. Caldwell stated that Potter also lives next door. Graves stated that he made the inquiry because of all the construction in the area. Graves requested copies of the data compiled by the Clements. He told Caldwell the Board would review the data and the meter test results and place this item on the agenda next month.

Potter noted that during this time he installed a French drain between the two properties because he had a drainage problem. He said he noticed no excess water in the area and asked Caldwell to turn off the sprinkler on that side so he would not have a muddy work area.

Leggieri inquired about watering during the water restrictions and if any sod or grass had been installed. Both Rex and Caldwell replied that no sod or grass had been installed and that watering was limited to only one day a week with no weekend watering. Leggieri stated that there had some confusion by some members who thought Stage 3 meant that they could water three days a instead of one day a week.

Graves again extended an invitation to Caldwell to come to the meeting next month; Caldwell expressed his appreciation and he, Rex and Potter left the meeting.

Since Welch and DiFonzo were present, Graves moved to Item 14.

 

14. Discussion and Action on all Matters Associated with the Following:

B. Saddlebrook Estates/ Final Plan/Variance Request on Fire Hydrant Spacing.

Leggieri referred everyone to Ginn’s letter of recommendation regarding Saddlebrook. Welch explained that they are requesting a variance from BWSC’s requirement for 500 foot spacing of fire hydrants because of the nature of the lot sizes in the subdivision. He noted that most of the fire hydrants are about 550 to 600 feet apart and covers every two to two and a half lots; however some are 650 to 700 feet apart because some of the lots are 10 acres. Ginn stated that he had reviewed the request and he had no objections as this is the type of development that lends itself to greater spacing.

Kaufman asked if this subdivision meets the Town of Bartonville’s requirements. Leggieri stated that he had talked to Chief Clear of the Argyle Volunteer Fire Department who had a set of plans. Leggieri said that Clear told him that he did not see a problem with the variance and if he did not attend the meeting that meant he had no objections.

Block initiated discussion on adequate fire hydrant coverage of all the lots. Welch explained the coverage. Discussion followed on adequate pressure as the development will be serviced by 8 inch lines feed by a 16 inch line.

Motion by Kaufman and second by Loeckle to approve the variance request.

Motion approved unanimously.

Block initiated discussion on how this would effect house insurance. Graves stated that he had heard that the code is determined by the location in a rural area serviced by a volunteer fire department. Leggieri stated that he had heard that determination of the insurance codes would be changed.

DiFonzo inquired about the procedure for refund on the cost of installation of the main line along FM 407. Ginn explained that according to BWSC’s pro rata policy, anyone tying on the line would pay his share of the cost. Ginn also explained that BWSC will pay for the cost of over sizing the line from an 8 inch to a 16 inch line. Ginn stated that he wants to review the bids that are taken for the water lines so that an item can be placed on the agenda for the Board to vote on to approve payment for the over sizing of the line. Ginn stated that he wanted to review the bids to make sure the prices are customary before they are presented to the Board.

Welch and DiFonzo left the meeting.

Graves state that the next item for consideration would be Item 8.

8. Discussion and Action on the Accounting and Financial Review the Audit by Crain and Company.

Graves and Kaufman explained the various questions that had been discussed since BWSC changed to in house accounting rather than have Crain & Company review the information submitted by staff and print the financial statements. Graves stated that some of the Board thought that having Crain & Company do the review provided a certain comfort level. Dewitt explained that they were previously reviewing the information submitted by the staff for reasonableness and to see if there was anything that looked unusual. She said that they checked to see if the cash tied in, checked the bank reconciliation, checked to see if the accounts receivable matched the subsidiary ledgers, reviewed payroll, and printed the financial statements. She stated that they did a monthly compilation, not an audit which is performed annually. Dewitt stated that having an in house accounting system is positive. She stated that most businesses do operate with their own internal financial statements. She noted that she thinks the problem is that BWSC has used Crain and Company in the past and that their service provided a certain comfort level. She said she looked at the financial statements noticed nothing unusual, only a few minor things; however she noted she did not have the back up information. Dewitt inquired if the financial statements are for for Board use only or will they sent to banks or anyone else. Kaufman replied they could be. Kaufman stated he preferred the current system because invoices payable can posted as they are received.

Discussion followed on good internal controls and checks and balances.

Kaufman requested that the audit include a review of the new system and an expansion of the review of internal controls. Dewitt suggested that Kaufman as Secretary-Treasurer review the financial statements regularly. Dewitt stated that she felt that after the audit is completed, the Board will have more assurance that the system is working. Dewitt stated that the audit may or may not cost more than the previous year because of the change in accounting system. She also stated that BWSC needs to be sure that the new system in ready for the year 2000; staff reported that the system is being updated. Dewitt noted that if questions arise, BWSC can still call Crain and Company for information.

Dewitt left the meeting.

Graves announced that the next item would be the continuation of Item 14.

14. Discussion and Action on All Matters Associated with the Following:

F. Copper Hills Subdivision

Hersman stated the Town of Copper Canyon approved the preliminary plat Monday night. He said he hoped to have the easements secured in October and be ready to go back to the Town of Copper Canyon the first Monday in November and be finished with the Town of Copper Canyon by November 10. Hersman reviewed the locations of the easements to be secured from TP&L and Briarwood on the plat and discussed the concessions being requested. Hersman stated that he needs to secure the easements as soon a possible in order to meet to his deadlines. He noted that he is getting three bids from contractors for the water lines. Ginn requested Hersman to provide a summary of all costs for review so that Ginn can make recommendations to the Board regarding cost sharing. Ginn also requested he and Leggieri be involved in the negotiations for easements. Block was assured that this line would alleviate the complaints about low pressure from the people in the Woodlands area.

Hersman left the meeting.

3. Public Forum

No one was present

Block requested that Item 6 be considered individually.

Motion by Block and second by Kaufman to approve Items 4 and 5. Motion carried unanimously. The items approved were:

4. Approve Minutes of September 10, 1998

5. Accept the September 1998 Disbursements and Financial Reports.

6. Approved Payment Request No. 3 for Preload./2MG Storage Tank.

Ginn and the Board discussed the amount previously paid and the remaining payments due to Preload. Ginn noted that the project should be completed by the end of October. Motion by Kaufman and second by Block to approve payment No. 3 to Preload. Motion carried unanimously.

2. Executive Session

At 8:40 P.M. the Board convened in Executive Session concerning the following:

A. All Matters Regarding the Elevated Water Tank Site, Including the Provisions of the Bartonville Water Supply Corporation/Double Oak Compromise Settlement Agreement Pursuant to Government Code, Section 551.071.

B. All Matters Related to Bartonville Water Supply Corporation’s CCN/ Flower Mound/Bridlewood Pursuant to Government Code, Section 551.071.

C. All Matters Related to Personnel Matters Pursuant to Government Code, Section 551.071.

The Board took no action and reconvened in Open Session at 8:51 P.M.

 

7. Discussion and Action on Appointment of a Director to Fill the Position on the Board that Expires in 2001.

The applicant for the position could not be present for the meeting as he was on a business trip. Motion by Kaufman and second by Block to table this item until the November meeting. Motion carried unanimously.

 

9. Discussion and Action on Subscribing for Additional Water capacity from the Upper Trinity Regional Water District.

Ginn stated that his recommendation to the Board is to secure an additional 1.5 MDG for a total of 2.5 MGD from the UTRWD. Kaufman questioned the need and the method of distribution used by the UTRWD. Ginn and Leggieri offered an explanation of how BWSC receives the water from the UTRWD. Leggieri noted that this is a preliminary request that will be finalized at a latter date.

Motion by Loeckle and second by Kaufman to authorize Leggieri to make a preliminary request for an additional 1.5 MGD from the UTRWD. Motion carried unanimously.

 

10. Discussion and Action on Revising the Capital Expansion Equity Buy-In Fee to Reflect Meter Sizing.

Motion by Kaufman and second by Loeckle to increase the equity buy in fee based on the meter equivalent service unit factor as follows:

5/8 by 3/4 or 3/4 inch meter = $ 4,130.00, 1 inch meter = $6,897.10, 1 1/2 inch meter = $13,752.90, 2 inch meter = $22,012.90, 3 inch meter = $41,300.00

Motion carried unanimously.

11. Discussion and Action on all Matters Regarding the Elevated Water Tank Site Including a Review of the Provisions of the Bartonville Water Supply Corporation/Double Oak Compromise Settlement Agreement.

No action taken.

 

12. Discussion and Action on all Matters Relating to Bartonville Water Supply Corporation’s CCN/Flower Mound/Bridlewood.

No action taken.

 

13. Discussion and Action on Personnel Matters/Employee Evaluation/Salary Reviews and Profit sharing contribution for 1998.

Motion by Kaufman and second by Loeckle to table the profit sharing contribution until the November meeting. Motion carried unanimously.

Motion by Kaufman and second by Block to accept Leggieri’s proposal for salary increases for employees and to approve the Board’s determined increase for Leggieri. Motion carried unanimously.

14. Discussion and Action on all Matters Associated with the Following:

A. Hidden Creek

C. Estates of Double Oak

D. Estates of Timber Lakes

E. Chapel Creek Estates

Leggieri noted that there is no new information on Hidden Creek or Timber Lakes. He noted that the lines are in at the Estates of Double Oak and that the fire hydrant and four meters have been installed in Chapel Creek. No action taken.

15. Discussion and Action Bids for Directors and Officers Liability Insurance.

Discussion was held on the two proposals for directors and officers liability coverage.

Motion by Block and second by Kaufman to change the agent of record to AIA Insurance Agency, to stay with United Pacific, and to keep the same coverage.

Motion carried unanimously.

Following more discussion, Motion by Block and second by Loeckle to secure the three year coverage. Motion carried unanimously.

16. Discussion and Action on the Budget for 1999.

Kaufman requested that this item be tabled until November.

17. Discussion and Action on Water Rates.

The Board decided to table this item until November.

19. Staff and Consultant Reports.

Staff had no additional comments or reports.

20. Review Future Agenda Items, Activities and Announcements, Set Date and Time of the Next Regular Meeting.

Some of the directors could not attend the meeting Thursday, November 12, 1996. The meeting was rescheduled for Monday, November 16, 1998. Items requested for the agenda were:

Budget for 1999,Water Rates, Requests Regarding Water Bills

21. Adjournment

Motion by Block and second by Loeckle to adjourn the meeting.

Motion carried unanimously.

The meeting adjourned at 10:52 P.M.

 

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Recorded by Betty J. Robertson, Deputy Secretary-Treasurer

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Certified by Larry Kaufman, Secretary-Treasurer