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 7, 1999 at the corporation office.

Directors in Attendance

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

Directors Absent

Philip Block, Vice-President
Michael Paulson

Consultants in Attendance

Wayne Ginn, PE, The Ginn Corporation
Ronnie Phillips, Esquire

Staff in Attendance

Jim Leggieri, General Manager
Laurie Allen, Utility Billing Director
Darrin C. Ezell, Administrative Assistant

Public in Attendance

Greg Rains, Estates of Copper Canyon, arrived at 7:40 P.M.
Catherine Vexler, Estates of Copper Canyon, arrived at 7:50 P.M.
Mitch Vexler, Estates of Copper Canyon, arrived at 7:50 P.M.
Robert B. Morgan, Estates of Copper Canyon, arrived at 7:40 P.M.

2. Executive Session:

President Graves announced that the Board would convene in Executive Session at 7:11 P.M. concerning the following

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

The Board took no action and reconvened in Open Session at 7:30 P.M.

3. Public Forum

No one present for public forum.

Kaufman stated that there were no Financials. Graves stated that the Consent Agenda would consist of number 4 and number 6 as Item 5 was not available.

5. Accept the September 1999 Disbursements and Financials

Motion by Kaufman and second by Alberts to approve the Consent Agenda. The motion carried unanimously.

The items approved were:

4. Approve Minutes of September 16, 1999.

6. Authorize Final Payment to Gracon Construction, Inc.

8:00 P.M.

7. 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 taken.

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

No action taken.

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

Kaufman stated that all members should have a Year 2000 Budget in their packets and that it was a revamped '99 Outlook without Septembers totals.

He stated that the budget did not fully reflect an administrative fee. He said that the extra water demand for 1 MGD from the UTRWD would cause $120,000.00 extra expense. He said that he kept the rates up on the high end in an attempt to keep the fixed rates down.

Graves asked about the extra fee and whether BWSC had already contracted for that water. Leggieri replied that the extra was for water to meet the peak demands as the previously available water in the surplus accounts is now gone. Leggieri said that there will not be any extra water available in the future due to the growth.

Kaufman said that in adjustments there was a capital requirement of $200,000.00 that should come from CCN sales. The payment for the extra water money would come from high end credits.

Kaufman stated that the Board should remember that every extra expense comes out of members' pockets. Kaufman stated that he and Leggieri had figured that BWSC can pump 1.4 to 1.6 MGD before needing extra water. Kaufman stated that the extra $120,000.00 charge for water is for only 9% of the customer base.

Kilpatrick questioned if more people are using more water on the upper end. Kaufman replied that it was the same ratio as the year before.

Ginn stated that the high end peak for usage was 3 MGD and he was surprised at that. He mentioned that the high end users are causing the peak demand to jump massively. He refigured the maximum number of system users and said that theoretically BWSC is capable of 3000 connections but that he would only recommend 2500. He also stated that the UTRWD is expanding its plant to increase capacity to 50 MGD.

Kilpatrick stated that the Rayzor Ranch negotiations need to be settled and that water sales should be stopped above a certain rate. Kaufman said he has wondered how that can be implemented.

Kaufman stated that there would be no action on the budget as it was for review only at this time. He said that he would adjust the budget for the next meeting based on the input from the Board.

Kilpatrick noted that the proposed rates are lower. Kaufman agreed that the rates go down until consumption reaches 200,000 gallons. Kaufman also stated that if the year 2000 is a really wet year, then the company will go in the hole. The reverse is true for a dry year.

Graves suggested consideration of Item number 10 since the parties were present.

10. Discussion and Action on Mitch Vexler's Letter of Complaint

Graves stated that the requested materials were delivered to the Vexlers by Staff. He also noted that the TCEQ was contacted and questioned about excessive amounts of water usage.

Graves explained the Conservation Plan and that a penalty for high usage is built into the rates. He stated that the effects on Lake Lewisville from the withdrawal of water are visible. He also noted that at the current rate we would be running out of water in the next few years and that is why the rates increase the way they do.

Rains said that after talking to the TCEQ they could not find any models of rates similar to the BWSC model. Leggieri said that rate setting is unique to each utility. He noted that after talking to Steve Blackhurst of the TCEQ, he was informed it is acceptable to charge much higher rates for the top 10% of water users in a utility. Leggieri said that TCEQ considers over 50,000 gallons excessive and that the law has been reworked to let utilities try and curb excessive use. Leggieri said that Blackhurst told him that the upper rates do not have to be cost based and that the utility can even go out and turn off the water after a certain usage. Leggieri said he discussed the issue with Blackhurst for an hour and that things were definitely changing in the State of Texas.

Rains said that he has never seen a community with water bills that equal car payments and mortgages. Leggieri said that BWSC is competitive until it the 100,000 gallon mark. Rains said that BWSC could not be competitive because Flower Mound charges $2.88 per thousand gallons.

Leggieri explained his phone call with the City of Denton. Denton told Leggieri that they consider anything over 30,000 gallons a month to be excessive. Leggieri said that the Denton representative observed that BWSC serves its area while lacking tax base from commercial and residential taxes. The representative also noted the larger size of lots in BWSC's area.

Kaufman explained that due to the high consumption of the Vexlers and others in the top 10% bracket, BWSC is considering buying an extra 1MGD ability from the UTRWD for the Year 2000 at a cost of $66.67 per year per member.

Kilpatrick stated that he and his family have never used the amount of gallons that are being argued about. He also stated that he was not happy about paying an extra $66.67 per year for the ability to have water that the Vexlers were wasting.

Rains asked if BWSC had a windfall year monetarily due to the extremely dry month. The Board answered no due to Capital Expenditures and debt service. Rains then said that his meter was not read properly and that his bill for 110,000 gallons was not correct. He said that his water usage was high due to filling a swimming pool the month before but that 110,000 gallons was unnecessarily high due to unknown factors.

Kilpatrick replied that the meters are read monthly and that he personally does not monitor a customer's water usage; therefore he could not determine why the bill ran so high. He went on to explain that BWSC, as a Non Profit Corporation, tries to run at cost. He said that BWSC needs to curb usage. "You people need to stop it!" was his reply to having to pay extra for the right for other customers to use 180,000 gallons watering lawns a month. Kilpatrick stated that he drilled a well of his own to help ease his water bill. Mrs. Vexler replied that she could not get adequate and good water without spending $20,000.00.

Mr. Vexler asked why the surrounding communities do not get together and form a water hedge fund. The Board replied that they can not do that since water is one price no matter what and the more you buy the more the demand charges go up. BWSC also can not get credit for returning grey water.

Ezell asked that the parties hold off on their criticism of BWSC's rates being too high compared to other municipalities. He stated that after spending time on the phone with other municipalities, he was informed that they are planning to raise their rates significantly. He stated that Highland Village even mentioned that the excessive usage above 70,000 gallons has pushed them to paying higher demand charges.

Ezell noted that BWSC is being strong armed by the UTRWD on demand charges and that while BWSC is trying to provide the best service possible, it also has to charge based on a rate determined by the UTRWD's charges. He stated that in order to decrease the rates the Vexlers and company were at the wrong Board meeting.

President Graves said that since BWSC has tried everything possible without raising rates to encourage conservation. He said that when customers use 100,000 gallons the price goes way up. He stated that if the bill gets too expensive then they need to stop using the water.

Kilpatrick then invited the public present to submit an application to join the Board.
After other discussion on the size of billing amounts, Leggieri said that the UTRWD sent a letter saying they were having technical difficulty and to reduce use earlier this summer.

Kilpatrick then stated that the issue had been discussed for too long and that the Board needed to move on.

Leggieri stated that they could call Senior Rate Analyst Steve Blackhurst at the TCEQ and talk to him about rates and water availability. Kilpatrick said that Vexler could put a meter in on his side of the meter and see if the readings correlate.

Rains stated that there was still no explanation for his water usage and questioned the Board where it went. Leggieri said that was a great question since the meter was sent off and tested to be legitimate and reading correctly so maybe Rains could tell them where it went.

Kilpatrick invited the group to each put in an application for service on the Board. Vexler said that he recommends BWSC look at an acquisition or merger. He stated that he read the documents sent over that afternoon (700+ pages) and that there was a fair amount of thought put into them. He said that his clients would not move out here because of the high cost of water. The Board stated that the Towns do not want commercial property anyway so there is not really a basis for argument.

Leggieri noted that the parties present dumped over 200,000 gallons of state of the art treated water on the ground to water grass and shrubs.

Vexler aired his disagreement with the Towns and Cities encouraging landscaping then telling him not to water. He stated that it does not make sense.

Laurie Allen noted that with two years of low rainfall and excessive watering, xeriscaping should be looked at as an attempt to solve the previously mentioned problem with landscaping and watering. She stated that although she understood that the use of water was the basis for her job, she thought consideration of the future and the ability to provide water for basic human needs should outweigh the need for watering landscaping.

Kilpatrick once again offered a place on the Board for anyone who would apply.

Graves notified those present that the Rayzor Ranch Development would be self sustaining and would not affect the rates of current customers.

10. Discussion and Action on Approval of the Millennium Addition Preliminary Water Plan.

Ginn said he recommended approval of the small commercial addition. Motion by Kilpatrick to accept and second by Kaufman. Motion approved unanimously.

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

A. Saddlebrook Estates-
Leggieri said there was nothing new to report on. BWSC was waiting on the easement documentation to arrive from the new landowner.
B. Carruth Estates-
Leggieri reported that the developer is cutting the streets and that he would be in within 30 days to pay fees.
C. Country Oaks Phase II-
Leggieri reported that he would be in within 30 days to pay fees.
D. Copper Woods/Including Off Site Water Main Construction-
Leggieri reported that everything is finished except for the landscaping. He has a meeting scheduled the next week with a Board member from the camp to resolve a landscaping problem.
E. Hidden Creek-
There was nothing new to report.

13. Staff and Consultant Reports.

Graves noted that he would like to commend the staff on their helpful reports and excellent works. Allen volunteered new information could be included in the reports upon request. Kaufman inquired as to whether the gallon usage was going up or down and whether it could be determined what penalty was being assessed to excess use. Ezell replied that it was a case of adding all the billed amounts and then figuring a bill for a given usage and multiplying by the number of customers and subtracting the two amounts. He noted that would give the excess penalty amounts.

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

The November meeting was set for Thursday, November 18th at 7:00 P.M. at the corporation office. Graves thanked the staff for their presence at the meeting.

15. Adjournment

Motion by Kaufman and second by Kilpatrick to adjourn the meeting. Motion approved unanimously; the meeting adjourned at 9:07 P.M.

Recorded by Darrin C. Ezell, 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.