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 7:04 P.M. on Thursday, November 18, 1999 at the corporation office.

 

Directors in Attendance

Joe Graves, President
Larry Kaufman, Secretary-Treasurer
Kevin Alberts
Scott Kilpatrick
William Warholy

 

Directors Absent

Michael Paulson

 

Consultants in Attendance

Jennifer L. Drury, C.P.A.
Wayne Ginn, PE, The Ginn Corporation
Ronnie Phillips, Esquire arrived at 8:00 p.m.

 

Staff in Attendance

Jim Leggieri, General Manager
Betty Robertson, Administrator
Laurie Allen, Utility Billing Director
Ginny Nelson, Administrative Assistant

 

Public in Attendance

Mike Gregory, Esquire - Rayzor Ranch, L.P.

 

 

Consent Agenda

 

Motion by Kaufman and second by Kilpatrick to approve the Consent Agenda. The motion carried unanimously. The items approved were:

 

4. Approve Minutes of October 7, 1999.

5. Accept the September 1999 and October 1999 Disbursements and Financials

7. Discussion and Action on All Matters Related to the Resignation of Vice-President Philip Block.

President Graves stated that Block had been transferred to another city due to employment.

Motion by Kaufman and second by Kilpatrick to accept the resignation of Philip Block. The motion carried unanimously.

Graves stated that there should be a thank you letter sent to Mr. Block and that he was a valued member of the Board and would be missed.

8. Discussion and Action on Election of a Vice-President.

Kaufman nominated Scott Kilpatrick. Second by Alberts. Kilpatrick nominated Alberts for vice-president.

Motion to accept Kilpatrick for Vice-President was approved with Alberts, Kaufman,
and Graves voting aye. Kilpatrick abstained.

12. Discussion and Action on 1999 Audit.

Kaufman stated that Crain & Co., now Hughes & Co., had not been the low bidder in the past. He asked if it would be better to bid out the audit again. Kaufman stated other than that he did not have any problems with the work performed.

Robertson stated that the Staff would do everything possible to help reduce costs.

Drury stated that the costs charged by Hughes & Co. was bare bones and could not be reduced much more.

Motion by Kilpatrick to accept Hughes & Co. to do the 1999 Audit for the Bartonville Water Supply Corporation. Second by Alberts. Motion carried unanimously.

9. Discussion and Action on Appointment of Directors to Fill Vacancies on the Board.

Kaufman inquired as to the status of the by laws regarding the appointment of a Director. Staff informed him that Block's proposed revision had failed and that the appointment process reverted back to the process in the By-Laws. Graves presented the history of the election process. Graves stated he only needed a motion for approval of Mr. William Warholy to join the Board.

Warholy asked if it was really that easy to join the Board of Directors. Graves responded "It is tonight sir!".

Kaufman moved that Mr. William Warholy replace Jan Loeckle as a Director with his term expiring in 2000. Second by Alberts. Motion approved unanimously.

The Board then welcomed Mr. Warholy to the Board, the directors introduced themselves, and Leggieri introduced the Staff present.

13. Discussion and Action on Tariff Update Regarding Service Rules and Regulations Including Postmark/Due Date for Monthly Bills.

Allen explained the reasons for removing the postmarked date as criteria in determination of late penalty. She mentioned the cumbersome and time consuming effort in monitoring the post marks to catch the ones that are on time and the ones that do not relate to the due date.

Drury stated that she did not know of any other places that allowed customers to use a post mark date to prove on time payment.

Kaufman motioned to accept the new Tariff Update that eliminates honoring postmarked dates. Second by Warholy. Motion carried unanimously.

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

Leggieri gave a presentation on the status of the following subdivisions.

A. Saddlebrook Estates
Leggieri stated that the new easement for the 16 inch water line that was submitted by Rayzor Ranch, L.P. had been filed. He noted that BWSC had paid its portion of the over sizing for the 16 inch waterline and a two (2) year maintenance bond was submitted by the contractor, Bowles Construction.
B. Carruth Estates
Leggieri noted that the water plan had been approved by the Board on September 1999. He noted that when the roughing in of the streets has been completed, the developer will probably start on the water lines.
C. Country Oaks Phase II
Leggieri said that installation of the water lines had been started and would be finished soon due to the small size of the subdivision.
D. Copper Woods/ Including Off Site Water Main Construction
Leggieri stated that the landscaping was still an issue and that Briarwood's representative has not been able to make the meetings to date. Murray construction wants the issue resolved or they will take the Camp to court. Leggieri stated he thought the issue was workable and would not go to court.
E. Hidden Creek
Leggieri reported that there was no new development as approval is still pending by the Town of Copper Canyon.

15. Staff and Consultant Reports.

Board asked questions relating to the content of the 1st Annual Water Workers Symposium sponsored by BWSC.

Robertson gave a synopsis of the symposium and answered several questions. The Board inquired as to the subject of Conservation and how it was covered.

Kilpatrick suggested putting together a packet for developers to use to design water conservative landscaping. He suggested that the Staff put something together and present it to the Board.

2. Executive Session:

President Graves announced that the Board would convene in Executive Session at 7:45 P.M. concerning the following

B. All Matters Related to Personnel Pursuant to Government Code, Section 551.071.
A. All Matters Related to Development of the Rayzor Ranch Including Approval of a Water Service Agreement Between BWSC and DCDD#4 Pursuant to Government Code, Section 551.071.

Alberts left at 8:20 p.m. The Board took no action and reconvened in Open Session at 8:42 P.M.

3. Public Forum

No one was present for public forum.

6. Discussion and Action on All Matters Related to Development of the Rayzor Ranch Including Approval of a Water Service Agreement Between BWSC and DCDD#4.

No action was taken.

10. Discussion and Action on All Matters Related to Personnel.

No action was taken.

11. Discussion and Action on All Matters Related to Approval of the Year 2000 Budget.

Kaufman presented a packet containing four scenarios for the year 2000 budget and water rates. Then he explained the differences between them. He noted that in all of the scenarios the charge for 50,000 gallons was still in the lowest among ten (10) different water suppliers and cities in the area. He explained that the higher rates are a result of the need for water to meet peak demands. He noted that BWSC only used the extra cushion of 1 MGD purchased from the UTRWD at a cost of $180,000/year on 16 days in 1999; however, the water had to be contracted year round to ensure supply. The Board agreed that the majority of the members should not be responsible for the higher usage customers and that the higher usage strata should pay more.

Kaufman inquired of Ginn if BWSC should sign up for another 1/2 MGD. Ginn replied that BWSC would ultimately need it. Kilpatrick noted that the weather has been extraordinarily dry and that caused greater consumption and revenues. Leggieri responded to questions about reserving water from the UTRWD. He stated that BWSC could contact the UTRWD and see what the guidelines are. Graves agreed and suggested contacting them.

The Board selected Scenario IV that had lower base rates in favor of higher excessive consumption rates. Discussion centered on sending member/customers, who use over 100,000 gallons a month, a letter on conservation or a warning letter. Warholy stated that just a general letter is all that would be needed.

Kilpatrick motioned to accept Scenario IV with a second by Kaufman upon recommendation by Jim Leggieri, General Manger. The Board approved the motion
unanimously.

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

The December meeting was set for Thursday, December 9th at 7:00 P.M. at the corporation office. Kilpatrick inquired about the Company Christmas Party. He said that he enjoyed the last one. Staff was directed to select a date and notify the Board and Consultants.

17. Adjournment

Motion by Kilpatrick and second by Kaufman to adjourn the meeting. Motion approved unanimously; the meeting adjourned at 9:26 P.M.

Recorded by Betty Robertson, Administrator

Certified by Larry Kaufman, Secretary-Treasurer

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