The Board of
Directors of the Emerald Bay Municipal
Utility District met in regular session
on Monday, October 17, 2011, at 5:30
p.m. at the Emerald Bay Club, 208 South
Bay Drive, Bullard, TX 75757. Present
were Directors Dwight Cole, Bill Harris,
Deena Johnson, and Paul Randolph.
Director Foote was excused (due to death
in family). Seven (7) Emerald Bay
residents attended and Alicia Freeman,
District Administrative Assistant.
Director Harris called the meeting to
order at 5:31 p.m. Director Harris asked
for comments on the Minutes of the
September 19, 2011, Regular meeting.
Director Harris made a motion to approve
the Minutes of September 19 as written.
Upon second (Randolph), the Minutes were
approved by unanimous consent.
Treasurer Cole reviewed the financial
summary for September 30, 2011, the
District’s fiscal yearend. Under sewer
system operations, total income for 2011
YTD was $326,379 compared to $278,002
for 2010 YTD with sewer service charges
for 2011 in line with previous year.
Director Cole pointed out that
approximately $50,000 more income was
derived from the greens drainage charges
($63,458 for 2011 YTD compared to
$15,361 collected from June-September of
2010). Mr. Cole also noted that
depreciation is only accrued in
September each year. Net operating
income (expense) reflects a loss of
$61,300 for 2011 YTD compared to a loss
of $130,893 for 2010 YTD. Net income for
the month was a loss of $160,497.
Under water system operations, water
service charges for September were
$43,765 ($405,860 YTD for 2011 compared
to $318,797 YTD for 2010). For
perspective, water service charges for
2011 YTD are 27 percent higher than 2010
YTD. Mr. Cole noted some of the
increased expense items: (1) higher
administrative costs attributable to
addition of an operator trainee; (2)
higher Plant Operating costs due to
continuing work on well #3, including
repairing a leak and improvements to
chlorination system; (3) higher Repairs
& Maintenance costs attributable to
cable repair ($22,000) between wells #1
and #2; and (3) higher utilility costs.
Net income for September was a loss of
$68,706 ($85,259 YTD for 2011 and
$250,791 YTD for last year).
Under road and bridge operations, total
income for September was $6,140 ($84,612
YTD for 2011 compared to $54,656 YTD for
2010) with initiation fees at $36,000
YTD 2011 ($16,000 more than YTD 2010)
and road maintenance fees at $48,612 YTD
for 2011 ($13,956 more than YTD 2010).
Net income for the month was $5,863.
The balance sheet shows total cash
accounts at $774,952 (approximate cash
funds in each category--$357,000 water;
$149,000 sewer; $144,000 road & bridge;
and $75,000 capital). Property, plant
and equipment increased to $3,206,014
with the transfer of money spent on the
greens drainage project, and
construction in progress at $509,581
contains the money spent on water well
#3. The September check detail contains
only the usual monthly expenses.
Director Randolph made a motion to
approve the September financials as
presented. Upon second (Johnson), the
financials were approved by unanimous
consent.
Director Harris asked District Clerk,
Alicia Freeman, to report at each
monthly meeting on the number of
delinquent accounts and/or disputed
billings. For the month of September,
there were 12 delinquencies totaling
$2,892.31. Ms. Freeman explained the
District’s policy on delinquent
accounts. At 45 days past due, the
customer is sent a courtesy reminder
letter. At 60 days past due, the
property owner/customer is sent a
written notice of delinquency by
certified mail stating the amount due
and that water or sewer connection can
be disconnected if the delinquent
statement is not paid by the last
business day of said Notice month. At 90
days past due, a termination notice is
mailed to the property owner/customer
stating that water and/or sewer services
will be terminated by the District by
the end of the month in which the
termination notice was sent. Director
Harris made a motion to approve the
existing guidelines for delinquency
notifications at 30 and 60 days with
termination of service at 90 days. Upon
second (Randolph), the motion was
approved by unanimous consent.
Director Johnson read into the record
the letter to Mr. Dixon regarding
adjustment of an invoice for locating
and repairing a leak and replacing a
water meter. Director Harris outlined
the problems involved with repairing
leaks and especially the problems
encountered in this particular
situation. Mr. Harris advised that the
District has developed a Statement of
Work for all work requested by a
customer. Said work order will show the
nature of the work, a list of the parts
required, and the estimated cost
including labor at $75/hour. The
District will no longer issue invoices
for such work—all costs will be included
on the customer’s monthly utility
billing. Director Randolph made a motion
to approve the billing adjustment
notification letter to Mr. Dixon and
that it be sent by certified mail. Upon
second (Cole), the Board approved the
motion by unanimous consent.
Director Johnson read into the record
the District Resolution No. 10172011A to
the Emerald Bay Club and Homeowner’s
Association authorizing the District’s
President, William F. Harris, to
facilitate the research and development
of an infrastructure project to include
improvement of the District’s
distribution system, fire control
system, irrigation supply system, and
community streets. Mr. Harris will
consult with the District’s engineer,
Kirk Bynum of Brannon Corp., to
determine scope of project and estimate
of costs for each phase. The District
has the money to drill a non-potable
water well for the irrigation of the
golf course and to improve the fire
control system. An exploratory well must
be drilled on a chosen location and a
pipeline must be run from the well to
the effluent ponds. Director Harris will
contact the Klein Estate representative
about obtaining a pipeline easement
along the marina property line to pump
Lake water into the effluent ponds via
the auxiliary golf course pump. Director
Randolph made a motion to approve the
aforementioned District Resolution. Upon
second (Cole), the Resolution was
approved by unanimous consent.
Director Harris gave an update on
progress of the Infrastructure Advisory
Group. There will be a joint meeting at
the District engineer’s office with
Southside Bank representatives to
discuss the scope of the project and the
financing options.
Director Harris gave an update on the
District’s operations: (1) Repaired a
small leak at water well #3; (2) working
to correct a chlorination equipment
problem at well #3; and (3) need to add
conduit to lift stations on golf course
and do work on the Moore Lane lift
station.
Director Johnson asked to change the
date of the November monthly meeting to
accommodate Directors’ Thanksgiving
holiday travel plans. Monday, November
21, is the regular meeting date and
Monday, November 14, was offered as an
alternate date. Director Cole made a
motion to change the November meeting
date to Monday, November 14, to be held
at the Emerald Bay Club. Upon second
(Harris), the motion was approved by
unanimous consent.
The December monthly meeting date is
Monday, December 19, and Wednesday,
December 14, was offered as an alternate
date. Director Randolph made a motion to
change the December meeting date to
Wednesday, December 14, to be held at
the District Office. Upon second
(Harris), the motion was approved by
unanimous consent.
There being no further business, the
meeting was adjourned at 6:45 p.m. upon
motion duly made (Randolph) and seconded
(Johnson) with unanimous consent.
Respectfully submitted,
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