1. Call to Order
Paulson stated the first items on the agenda would be Item 8.
8. Discussion and Action on the Election of Officers As a Result of the President of the Board’s Resignation.
Kaufman stated that Paulson automatically becomes president with the resignation of former president Joe Graves. Kaufman noted that the Board just needed to elect a new vice-president.
Paulson opened nominations for vice-president and Johnson and Kilpatrick were nominated. Johnson said he had reservations about being vice-president as he has not been on the board very long. Motion by Kaufman and second by Anderson that nominations cease. Motion approved unanimously. Paulson called for the vote and Kilpatrick was elected three to one.
2. Executive Session
At 7:16 p.m., President Paulson announced that the Board would convene in Executive Session concerning:
A. All Matters related to the Lantana Development/DCDD#4 Including An Agreement for the Decertification of BWSC’S CCN Within the Lantana Project as Described in Exhibit A, and An Agreement for the Lease of a Portion of BWSC’S Copper Hill Pump Station and Temporary Water Service, Pursuant to Government Code, Section 551.071.
B. All Matters Related to the Petition of the Ratepayers Protesting the Rate Increase of BWSC Filed with TCEQ, Pursuant to Government Code, Section 551.071.
The Board took no action and reconvened in open session at 7:52 p.m.
3. Public Forum
No one was present.
Kaufman and Johnson requested that the two consent agenda items he considered individually.
4. Approve the Minutes of the May 18, 2000 Board Meeting.
Motion by Johnson and second by Kilpatrick to approve the minutes with the following correction: (a) Add “no” before action in the last sentence in Item 9. (b) Change “gentlemen” to “gentleman” in the last sentence of Item 16. Motion approved with an abstention by Kaufman, as he was absent at the last meeting.
5. Accept the May, 2000 Disbursements and Financial Reports.
Kaufman complemented the staff on shortening the financial presentations; however he said he felt that more detail is needed as a yardstick for comparison of the average revenues and expenses. He distributed a more detailed Income Statement, based on a model he created, for review. Following more discussion, Motion by Kaufman and second by Anderson to accept the May 2000 Financial Reports and Disbursements. Motion approved unanimously.
6. Discussion and Action on All Matters Related to the Lantana Development/DCDD#4 Including An Agreement for the Decertification of BWSC’S CCN Within the Lantana project as Described in Exhibit A of the Agreement and An agreement for the Lease of a Portion of BWSC’S Copper Hill Station and Temporary Water Service.
No action taken.
7. Discussion and Action on All matters related to the Petition of the Ratepayers Protesting the Rate Increase of BWSC filed with TCEQ.
No action taken.
9. Discussion and Approval of a Corporate Resolution with First State Bank of Texas for Authorization of Signatures.
Motion by Kaufman and second by Kilpatrick to approve the corporate Resolutions with First State Bank of Texas for the following authorized signatures:
Michael Paulson, President
Scott Kilpatrick, Vice-President
Larry Kaufman, Secretary-Treasurer
Betty J. Robertson, Deputy Secretary-TreasurerMotion approved unanimously.
10. Discussion and Action on Approval of the Preliminary Water Plan for the Weatherford Development.
Ginn stated that the preliminary water plan for the Weatherford Development, located in Highland Village, is in general conformance with BWSC’s subdivision and he recommended approval subject to three items.
Motion by Kaufman and second by Kilpatrick to approve the preliminary water plan for the Weatherford Development subject to the following:
(1) the encasement of the water line under FM2499.
(2) An interlocal agreement with Highland Village for BWSC to provide service and
(3) Payment of all applicable fees Discussion followed on the collection of fees and the lack of Highland Village’s inability to provide service probably until FM2499 is extended.Paulson called for the vote and the motion was approved unanimously.
11. Discussion and Action on A Request for Water Service to the Boots’ Camp’s 13+ acre Tract in Copper Canyon.
Ginn reported that the Boots’ Camp’s 13+ acre tract is located in the Copperwoods Subdivision area where the line was recently extended. He stated that he would recommend that the developer be required to extend and tie in a 12” line to the development with BWSC paying the difference between an 8” and a 12” line. Leggieri explained this extension would provide another loop into Jerrigan Road. Ginn said no action would be needed until the developer submitted a preliminary water plan.
12. Discussion and Action on Approval of the Sales and Removal of the Two (2) 20,000 Gallon welded Steel Water Storage Tanks at the 407/Cross Timbers Pump Station.
Ginn reported that the two tanks probably cost about $10,000 each new. He said that they have gone from an asset to a liability, as it would coast about $5,000 each to paint and upgrade them. He stated the best time to sell something is when you have a potential buyer. Ginn noted that when Gracon expressed an interest in the tanks, he told them the cost would be 10% of the salvage value or $1,000 each and clean up the site. He said Gracon really wanted the remove the tanks and clean up the site at their cost for the cost of the tanks, but finally offered $500. Ginn stated that he told Gracon they could come to the meeting and negotiate with the Board or he would submit a proposal for Gracon to purchase the tanks for $750 each and clean up the site. Ginn said that Gracon agreed and that is their verbal offer. Motion by Johnson and second by Kaufman to accept Gracon’s offer of $750 each for the two tanks and clean up of the site. Motion approved unanimously. Ginn reported that the tank was actually to Texoma Estates Water Supply Corporation.
13. Staff and Consultant Reports.
Leggieri reported that UTRWD plans to install a line in the same area of the Briarwood Camp easement dispute.He reported that Murray Construction is still trying to resolve the landscape issue with Briarwood. He also reported that the leak at the 2 million gallon concrete ground storage tank at Copper Hill has decreased to dampness rather than a pool of water. Ginn said that the contractor is willing to come and make an additional repair whenever BWSC can take the tank out of service. Discussion followed on the agreement with Lantana and how the lease of the Copper Hill Pump Station and the changes would affect BWSC monetarily. Leggieri notes that the changes should cover all of BWSC’s expenses. Leggieri noted that Moss Construction, the contractors doing work for Lantana, is purchasing water from BWSC at the residential rate. Kaufman initiated discussion on reimbursement of costs associated with Lantana. Ginn stated that he assumed that reimbursement by Lantana for any expense regarding their development incurred by BWSC diminished with the sale of the CCN. Ginn said the scope changed from leasing to purchase. He noted that Lantana was required to make an up front payment of $750,000 rather than paying out by the lot. Leggieri also notes that the monthly rental fee also increased from $3,000 to $4,000. Kaufman requested Leggieri to explain to the Board the UTRWD fee schedule that was included in the packets. Leggieri stated that he would need to contact the UTRWD accountant. Discussion followed on the terms of the contract and if the contract can be modified. Kaufman requested that Leggieri continue to update the model that compares demand vs. supply and reduce it by 10% for unmetered water. Robertson briefly reviewed the report on the BWSC Profit Sharing Plan as of December 31, 1999. Kilpatrick requested that the Board receive quarterly reports.
14. Review Future Agenda Item, Activities and Announcements, and Set Date and time of the July Meeting.
The next regular meeting was set for July 20, 2000 at the corporate office.
15. Adjournment Motion by Kilpatrick and second by Anderson to adjourn the meeting.
Motion carried unanimously; the meeting adjourned at 9:00 p.m.
Recorded by Betty Robertson, Deputy Secretary-Treasurer
Certified by Larry Kaufman, Secretary-Treasurer