1. Call to Order
The special meeting of the Board of Directors of Bartonville Water Supply Corporation was called to order by President Graves at 7:19 P.M. on Tuesday, March 28, 2000 at the corporation office.
Directors in Attendance
Joe Graves, President
Scott Kilpatrick, Vice-President
Larry Kaufman, Secretary-Treasurer
Kevin Alberts arrived at 7:35 P.M.
Carla Anderson
Michael Paulson
Directors Absent
William Warholy
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
Public in Attendance
John Wagner, Republic Property Group
Mark Wagner, Republic Property Group
2. Executive Session
At 7:20 P.M., President Graves announced that the Board would convene in Executive Session concerning:
All Matters Related to the Lantana Development Including Approval of a Water Service Agreement Between BWSC and DCDD#4 Pursuant to Government Code, Section 551.071.
The Board took no action and reconvened in Open Session at 8:49 P.M. President Graves moved to Item 5 next.
5. Discussion and Action on Equity Buy In Fees.
The Directors reviewed the equity buy in formula based on the audited financial statement as of December 31, 1999 as prepared by Kaufman. Kaufman stated that the $4,908.00 fee did not include the membership fee or the installation fee associated with new installations.
Kilpatrick remarked that the Board adopted the formula to calculate the equity buy in fees in 1995 as the Board wanted a defensible formula that could be used easily to calculate the fees. He noted that the formula is based on a recommendation of Texas Rural Water Association.
Kaufman noted that the formula keeps the equity of all members, old and new, on an equal basis. Motion by Kilpatrick and second by Kaufman to accept the $4,908.00 equity buy in fee.
Motion approved unanimously. The Directors clarified that the increase did affect previously grand fathered subdivisions.
3. Public Forum
No one was present.
2. Executive Session
President Graves announced at 8:54 P.M. that the Board would convene in Executive Session again concerning :
All Matters Related to the Lantana Development Including Approval of a Water Service Agreement Between BWSC and DCDD#4 Pursuant to Government Code, Section 551.071.
The Board took no action and reconvened in Open Session at 9:06 P.M.
4. Discussion and Action on Matters Related to Lantana Development Including Approval of a Water Service Agreement Between BWSC and DCDD#4.
Phillips reported that Lantana and DCDD#4 requested that the Board approve Alternatives A and B and to instruct him to draft the appropriate documentation that covered all the issues discussed for the option they accept. He stated that they will either purchase the Certificate of Convenience and Necessity at $1000 per lot based on the number of lots in their current existing plan or they will lease the CCN for $250,000 per year for 20 years with BWSC having the first right of refusal to purchase their facilities or renegotiate a lease at that time.
He noted that if BWSC did not purchase their facilities, BWSC would surrender its CCN to a qualified entity that would purchase it.
Following discussion and clarifications, motion by Paulson to instruct Phillips to draft language to propose options for either leasing BWSC’s CCN for $250,000 a year for 20 years or purchasing the CCN for $1000 a lot based on the Lantana plan. Second by Alberts.
Kaufman offered a friendly amendment to specify the number of lots as 3,500 as opposed to per their plan. Both Paulson and Alberts agreed to the amendment.
The amended motion was approved unanimously.
John Wagner thanked the Directors for their time. He stated that they were disappointed that the original deal could not be worked out with the Upper Trinity Regional Water District Bond Counsel. He said he believed that it would have been better for both BWSC and DCDD#4. He noted that realistically the Board’s proposal is now the only option available. He told the Board that it had dealt in good faith in trying to resolve this issue.
6. Adjournment
Motion by Kaufman and second by Paulson that the meeting adjourn. Motion approved unanimously; the meeting adjourned at 9:11 P. M.
Recorded by Betty Robertson, Deputy Secretary-Treasurer
Certified by Larry Kaufman, Secretary-Treasurer