Minutes
Lakeway Municipal Utility District
Board of Directors Meeting
December 10, 2008
The Board of Directors met in REGULAR session at 9:30 a.m., at 1097 Lohmans Crossing, Lakeway, Texas, with the following:
Directors Present: Kay Andrews
Jerry Hietpas
Allan Hitchcock
Tom Priddy
Tom Rogers
Staff Present: Margaret Cathey
Richard Eason
Tommy Farrell
Roger Fry
Others Present: Mike Willatt, Attorney
Dave DeOme, COL
QUORUM
1. Determine Quorum and Call to Order.
President Rogers declared a quorum of Directors present and called the meeting to order.
CITIZENS
Karen Bradshaw spoke about the District needing to “tighten our belts” and about employees taking vehicles home. She did her own survey of cities including Taylor, Hutto and Elgin and reported that in none of these cities are employees allowed to take vehicles home. She wanted surplus trucks sold at auction rather than public bid.
3. Employee Recognition.
Tony Resendiz was congratulated on becoming a US citizen.
8. BAN Sale – Approval of Agreement and Authorization of Issuance and any other such action.
Wells Fargo has offered the District a Bond Anticipation Note (BAN) for one year at 4% interest for $3M. The BAN sale will be complete on Tuesday, December 16th. The BAN can be paid off before the year is up on December 15, 2009, with a decreasing penalty schedule, or it can be extended for an additional year at 5% interest rate. The BAN can be paid off with the sale of bonds or other District proceeds. Paul Phy, the District’s Bond Counsel, had stated that two bond issues were sold last week for 6%, and that 4% is a good offer. He advises to sell bonds/BANs when the District needs the money, rather than trying to predict interest rates. A BAN will provide the funds on time for the tank construction schedule, whereas a bond takes several months to close. Andrews called Don Grimes, Sr. V.P. for Wells Fargo handling the BAN, and questioned why District customers could not buy the bonds. Rogers stated that according to Paul Phy, Andrews indicated to Grimes, that the Board had not taken final action to secure the BAN from Wells Fargo. Grimes perceived this to be a threat that the BAN sale would not be approved. Andrews called Rogers a liar; Rogers indicated that the information given to him by Paul Phy did not match what Andrews was stating. She offered to let the Board listen to the tape recording of the conversation. She was told that a BAN is presold; this one was sold to one bond holder. The FAA Committee had several meetings (face to face and conference call) to discuss the District’s options. Andrews complained that there were no FAA meeting minutes. Hitchcock made a motion to approve the Wells Fargo Agreement and to authorize the issuance of the BAN. Priddy seconded the motion. Motion passed. Andrews voted no; she stated she was not comfortable with the information currently available.
4. Water facilities including barges, pipelines, treatment plants and distribution systems.
The evaluated tanks have been drained, washed out, inspected and touched up. The tanks are under a 10-year maintenance contract. One of the tank’s coating repair was not done well because the crew was not competent, and the District complained to the contractor. They will be back in January to redo the paint job to our satisfaction. Phoenix, the original contractor, sold the maintenance contract to Utility Services Company, something the District had no control over. The District needs to receive performance bonds from the new contractor guaranteeing the work before the District will pay the contractor.
Water production was relatively high in November. We are in a drought of historic note.
5. Wastewater facilities including collection systems, pipelines, treatment plants, holding ponds and irrigation systems.
Tommy’s crew is still searching for the cause of a leak on the lower side of S-4. SAMCO leak detection service is assisting. We know it is not wastewater; could be groundwater, potable or reuse. There will be chemical water tests on Thursday to help identify the source.
Eason is integrating the GIS into wastewater collection maintenance data. For example, with GIS, it will show geographically every home that has (or not) a pop-up caps on their cleanouts. The District began several years ago offering the caps for cost to District customers that wanted one. Tommy’s crew is currently installing caps on all District street side cleanouts that can be found; over 900 have been installed. There are about 3-400 cleanouts that cannot be found; letters are sent to customers informing them of the need to locate their cleanout.
6. Repair of Yaupon Tank Floor Coating.
This repair is an unbudgeted expense. The tank’s approximately 10-year old polybrid coating is failing. Richard polled E&O Committee members who concur with the recommendation to completely recoat the tank floor and not do spot repairs. The Committee did not meet this month. PA Penley suggested that we obtain a bid for an ongoing maintenance contract. We anticipate this project being complete in January. It must be done at a “wet” time of year because the golf course, and other reuse customers, will be without reuse water for two weeks. The General Fund budgeted $47K to recoat the exterior of S-4 and S-5 tanks for aesthetic reasons. Eason proposes that 1/3 of the Yaupon Tank repair cost be taken out of the general fund by paring down on that aesthetic project, and 2/3 of the money from the construction account. Eason will obtain a firm price on the extended maintenance contract. Hitchcock made a motion to approve the cost of repair of $32,500 and authorize Eason to negotiate an extended maintenance contract. Priddy seconded the motion. Motion passed unanimously.
7. Capital Improvements Plan.
A. Water Storage Tank (E-5).
The City rezoned the E-5 site to GUI last week. The District will open bids next Tuesday, 12/16 at 2:00, one for tank and site, one for the pipeline. The tank should be up and running around the first of June 2009. The District included a separate “reward” clause as an incentive for either contracts to complete the project early. An addendum is being developed at this time. A preconstruction meeting was held on December 4th with lots of contractor interest. A special Board meeting will be scheduled for December 19 to award the bid. Hietpas asked to separate the landscaping and irrigation from the contract, and direct contract the landscape work instead, for better control. Eason, Hietpas and Phillips will discuss.
B. W-3 High Service Pump Improvements (and BP-1).
The W-3 plant was shut down for nine hours right before Thanksgiving to replace a suction header and valving. There are motor delivery issues, but it will be air freighted and be here by the first of February. It will be operational by the end of February. BP-1 pump submittals have been accepted. The BP-1 equipment will be pre-assembled in Waco; installed in January.
C. Lift Station #6 Improvements.
The generator is on-site; the underground propane tank for the generator has been set. Contractor will hook up fuel line and test next week; pump submittals have been completed; letter to neighbors went out two weeks ago; should be up and running in mid-February.
CONSENT AGENDA – Hietpas made a motion to approve the consent items with the amendments to both sets of minutes suggested by Andrews and discussed by the Board. Hitchcock seconded the motion. Motion passed unanimously.
9. Approve Minutes of Regular Meeting of November 12, 2008.
10. Approve Minutes of Special Meeting of November 19, 2008.
11. Approve Check Register for November 2008.
12. Approve Order Approving the District’s Certified Tax Roll for 2008.
13. Approve Change of Meeting Date for January Board Meeting.
14. GENERAL MANAGER’S REPORT.
· Rogers commented that due to televising our lines, we haven’t had any wastewater backups in a long time; grease and roots are the major cause of backups.
ADJOURNMENT
The meeting was adjourned at 11:08 a.m.
Respectfully Submitted,
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Margaret A. Cathey, Assistant Secretary/Treasurer
Minutes approved on the ________ day of ______________, ________.
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President, Board of Directors
ATTEST:
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Secretary, Board of Directors