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 7:22 P.M. on Thursday, September 16, 1999 at the corporation office.

Directors in Attendance

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

Directors Absent

Michael Paulson

Consultants in Attendance

Jennifer Drury, CPA
Wayne Ginn, PE, The Ginn Corporation
Ronnie Phillips, Esquire

Staff in Attendance

Jim Leggieri, General Manager
Betty Robertson, Administrator
Ginny Nelson, Customer Service

Public in Attendance

Paul Bosco, Estates of Copper Canyon
Pat DiFonzo, Saddlebrook Development
Marlene Grindinger, Estates of Copper Canyon
Tom Grindinger, Estates of Copper Canyon
Jeff Hurt, Esquire
Deborah Lowe, Estates of Copper Canyon
Greg Rains, Estates of Copper Canyon
Ocie Vest, PE, Huitt-Zollars
Catherine Vexler, Estates of Copper Canyon
Mitch Vexler, Estates of Copper Canyon
Clifton Jolley, Estates of Copper Canyon
John Wagner, Republic Investments
Mark Wagner, Republic Investments
Gary Winkleman, Estates of Copper Canyon

7. Discussion and Action on All Matters Related to Development of the Rayzor Ranch.

President Graves moved to Item 7. Phillips informed the Board that he talked to Hurt earlier in the afternoon and that apparently Tom Taylor with UTRWD has some concerns about some of the provisions of the agreement between BWSC and DCDD#4. Phillips stated that Taylor would like to refer to his counsel for some other opinions and make sure that some of them do not cause problems primarily of taxable nature with the bonds. Phillips stated that Taylor requested that the agreement not be executed until he reviews it with his staff. Phillips proposed that the Directors take the proposed changes made by Hurt and compare them with the original draft agreement and wait for UTRWD's comments.

Graves inquired about a time line with the UTRWD. Hurt responded that Taylor had the agreement high on his priority list; therefore, he assumed Taylor would have his comments by Monday, September 20. President Graves noted that a special meeting could be scheduled. Phillips suggested that a special meeting be scheduled for Thursday, September 23. Graves requested that Phillips be informed of all updates so the Board can make a good decision. Graves noted Item 7 would be tabled.

Consent Agenda

Graves suggested that the Board move to 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 August 12 and August 31, 1999.

5. Accept the August 1999 Disbursements and Financial Reports.

6. Approve Corporation Resolution for First State Bank Operating Account.

13. Discussion and Action on Douglas Bryan Water Charges.

No action was needed as the Staff handled Bryan's request.

11. Discussion and Action on Authorization to Extend Water Service to Weaver Manufacturing.

Kaufman requested an explanation of the request. Leggieri explained that the request is for new service, which will require the payment of new installation charges. Leggieri noted that an extension may not be necessary as further research indicates a 6" line may already be in place. Motion by Block and second by Alberts that the line be extended if necessary. Motion approved with Alberts, Block and Kilpatrick voting aye and Kaufman abstaining.

16. Staff and Consultant Reports.

Ginn requested that he be permitted to give a brief report and be excused from the meeting. Ginn reported on the paving at Copper Hill with a change order. He also noted there is still slight seepage of about 5 to 10 gallons a day at the ground storage tank at Copper Hill. He noted it is not flowing but it is wet. He stated it will be taken down again in October or November for repair when water demand is down. Ginn noted that the contractors did a good job. Block inquired if there is a risk that the seepage will affect the foundation. Ginn stated probably no risk at all.

Ginn noted that he wanted to make a couple of comments on the agreement concerning the Rayzor Ranch development. He requested that the proposed initial 500 homes on BWSC's system before the development's system is installed be lowered to 300-350. He stated that if the 350, in addition to the 300 BWSC has approved for service develops over the next 2-3 years, the 700 - 750 homes will have BWSC up to the 2500 compliance limit and the system will have to be upgraded. Therefore, Ginn stated that the Rayzor homes need to pay an impact capital fee or the money needs to be escrowed for system expansion/improvement. Ginn suggested that there be a time limit for the Rayzor customers to stay on the BWSC system. Kaufman inquired about the upcoming capital projects that would be needed so he could build them into his model. Ginn stated that he would like to have the Master Plan completed, hopefully by the end of the year, before he made that decision. Kaufman stated he needed a rough estimate for the preliminary budget. Ginn also noted that he would like to develop a landscape site plan for the office. The Board excused Ginn and he left the meeting.

Leggieri suggested a break. The Board took a break from 7:50 p.m. until 7:52 p.m.

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

President Graves read from the BWSC Policies and Procedures Manual regarding the limit of 3 minutes for addressing the Board concerning an agenda item.

Mrs. Vexler volunteered to be first and stated that she is in charge of the Estates of Copper Canyon Home Owners Association. She stated that she wanted to address the fact that they had done research and believe water charges are extreme. She noted that BWSC rates may be close to surrounding towns and cities on the smaller consumption but on the high consumption the rates are much higher. She said the rates have increased considerably in the last 4 years. She stated that they are being penalized or overcharged for maintaining their large lots. She stated the rates need to be adjusted.

Next, Rains briefly did a comparison of Lewisville, Highland Village, Flower Mound, and Denton in regards to their upper end consumption staying at a constant rate rather than an ascending rate. He used Flower Mound's upper rate of $2.88 as a comparison to BWSC's $42.14 over 400,000 gallons. He stated that this is the first time he has really paid any attention to the rates, as he was sure this is what has happened to others in area. He called TCEQ and talked to Boyd Jackson. He told him there was a problem with the rates and would he check to see if there were any other similar rate scales in the area. He said Jackson could not find anyone with this incremental scale. Rains said he was told a consultant was hired to determine the rates. He wanted to know how the rates were determined because the water commission could not find any justification for the rates. Rains stated there is an issue with rates and the way they are set and that is why they are present.

Kilpatrick made the motion that Leggieri and Staff study all the data in Mr. Vexler's letter and any other letters from the group and make recommendation next month. Second by Block. Motion carried unanimously.

Rains stated that Jackson told him they had 90 days to complain about rates and since they did not, they are stuck with them. Leggieri stated he would contact the TCEQ, find out who Rains talked to and talk to him.

Jolley stated that he had read Mrs. Vexler's letter, which is one side of the story. He said he had an acre that he could not keep alive because of lack of pressure and he can not afford $2,000.00 a month. He said he would like to know what standards the rates are based upon because it seems there was no logical matrix because they are paying as much a 70% more than the average. Graves stated they are based on a logical matrix. Kaufman stated BWSC can not tax to subsidize the BWSC rates as cities can; he stated BWSC must be compared to other water corporations. Graves noted the rates had been increased gradually and now that capital projects are winding down the Board's goal is to decrease the rates. He noted that BWSC had not borrowed money until this year for capital improvements. Kaufman stated that last year the fixed rate went up, and the rates stayed the same except on the high end.

Kaufman lead the discussion held on the fixed rate being increased because of the need to purchase more water from the UTRWD to meet the high end demand. Kaufman set rates to discourage high end usage.

Block stated that this is a member owned company and glad to hear comments but he would like to point out that every year rates are discussed and voted on in a public meeting, but that the Board typically hears comments in the summer when bills are high. He encouraged everyone to come back when rates are discussed. Block stated that when people follow the conservation plan they do not have high usage, which causes BWSC to purchase more water at a higher cost. He noted also that BWSC does not have police to enforce conservation like the towns do. Block stated BWSC bought more water in advance and has made capital improvements to improve pressure.

Winkleman said his issue is with the difference in usage between 2 months, June and July. Questions arose regarding the meter reading. Graves suggested if there is a problem, to contact the Staff for assistance.

Kaufman offered he would invite anyone to fill the vacancy on the Board and help calculate the rates in November.

The Grindingers and Bosco also entered into the discussion.

Kilpatrick suggested that all present get their questions to the Staff and that the Board move on.

Discussion arose on why BWSC does not combine with another entity. Phillips addressed this issue.

No action was taken.

Graves announced a break at 8:30 P.M. and reconvened at 8:35 P.M.

10. Discussion and Action on Consideration of Final Approval/Acceptance of the 16" Off-Site Water Line/Saddlebrook.

Leggieri gave some background information on the project and the easement situation. He said the project is 100% complete. Objection to the easement granted by Newton Rayzor was from the former owners of the land and the new owners had given indications that they would sign a new easement document the same as the old easement. DCDD # 4 will prepare and execute the new easement which will be the same as the original Rayzor easement.

Graves asked for a motion that pending the receipt of easement and waiver of lien from Bowles Construction, payment be made.

Motion by Alberts and second by Kilpatrick. Motion approved unanimously.

3. Public Forum

No one present.

2. Executive Session:

President Graves announced that the Board would convene in Executive Session at 8:42 P.M. concerning the following

A. All Matters Related to Development of the Rayzor Ranch Pursuant to Government Code, Section 551.071.
Block and Phillips left during Executive Session at 9:10 P.M.
B. All Matters Related to Action on a Request by the Developer of the Vaughan Property to Sell/Abandon the Corporation's Chinn Chapel Pump Station Pursuant to Government Code, Section 551.071 to
C. All Matters Related to the Bridlewood Agreement Pursuant to Government Code, Section 551.071.

The Board took no action and reconvened in Open Session at 9:22 P.M.

8. Discussion and Action on All Matters Related to the Bridlewood Agreement.

No action taken.

9. Discussion and Action on a Request by the Developer of the Vaughan Property
to Sell/Abandon the Corporation's Chinn Chapel Pump Station.

Motion by Kaufman and second by Kilpatrick not to sell. Motion approved unanimously.

12. Discussion and Action on the Remote Read Meters for New Developments.

Leggieri stated that new meters should carry the capability to be read electronically and Kaufman motioned that all new meters installed be read electronically. Leggieri explained that the modification of old meters to be read electronically costs about the same as new meters.

Motion by Kaufman that BWSC immediately move to electronically read meters on all new installations and customers bear the costs of upgrade pending legal approval.

Motion seconded by Kilpatrick. Motion carried unanimously.

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

A. Saddlebrook Estates-

Leggieri said there was nothing new to report on.
B. Carruth Estates-

Leggieri stated that Carruth was still in the planning stages. He expected them any day with their fees.
C. Country Oaks Phase II-

Ginn reviewed the plan and presented his letter of approval to Leggieri. Jim said that Final Plans were all that was needed with fee payment.
Kaufman motioned to accept Country Oaks Phase II pending fee payment. Block second. Motion carried unanimously.
D. Copper Woods/Including Off Site Water Main Construction-

Leggieri reported that everything is done except for the landscaping. There is some new tree work to be done. BWSC is holding $10,000.00 of the contractor's money until it is resolved.
E. Hidden Creek-

There was nothing new to report.

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

The October meeting was set for Thursday, October 7th at 7:00 P.M. at the corporation office. If required Special Meetings will be scheduled concerning the Rayzor Ranch development. Graves directed Betty Robertson to have Staff do a rate review and collate information on rates for the next meeting.

18. Adjournment

Motion by Kaufman and second by Alberts to adjourn the meeting. Motion approved unanimously; the meeting adjourned at 9:40 P.M.

Recorded by Betty Robertson, Administrator

Certified by Larry Kaufman, Secretary-Treasurer

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