2022 09 21 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
September 21, 2022
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting
on Wednesday, September 21, 2022, at 4:31 P.M., in the Council Chamber of the Baytown City
Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley -Smith President
Mike Wilson
Vice President
Frank McKay III
Secretary
Jimmy Smith
Director
Alyssa Linares
Director
Angela Jackson Assistant Secretary
Jason Reynolds Assistant General Manager
Scott Lemond General Counsel
President Brenda Bradley -Smith convened the September 21, 2022, BAWA Board Regular
Meeting with a quorum present at 4:31 P.M., all members were present.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on August 17, 2022.
A motion was made by Secretary Frank McKay III and seconded by Director Jimmy Smith to
approve the meeting minutes of the Baytown Area Water Authority Regular Meeting Regular
Meeting held on August 17, 2022, as submitted. The vote was as follows:
Ayes: President Brenda Bradley -Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Jimmy Smith, and Director Alyssa Linares
Nays: None
Approved
2. ELECTION OF OFFICERS
a. Consider the election of officers for President, Vice President, and Secretary; and the
appointment of an Assistant Secretary.
A motion was made by Director Jimmy Smith, and seconded by Vice President Mike Wilson to
elect the same slate of officers, in the form of Brenda Bradley -Smith as President, Mike Wilson as
Vice President, Frank McKay III as Secretary, and the City Clerk as Assistant Secretary for a term
of one year to commence immediately and expire on August 31, 2023. The vote was as follows:
BAWA Board Regular Meeting Minutes
September 21, 2022
Page 2 of 5
Ayes: President Brenda Bradley -Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Jimmy Smith, and Director Alyssa Linares
Nays: None
Approved
3. REPORTS
a. Receive a report on future expansion of BAWA East Surface Water Treatment Plant.
Director of Public Works and Engineering Frank Simoneaux opened agenda item 3.a. by
introducing himself and representatives Vice President Meera Victor and Paul Walker of Carollo
Engineers, Inc., which is the firm that completed a planning study for the expansion of the BAWA
East Plant. Mr. Simoneaux relayed the agenda of his presentation is to look at the following topics:
water demand projection and capacity; raw water contract; expansion options; cost for expansion;
delivery method options; and recommendations.
On the water demand and
expansion forecasts, Mr.
Simoneaux exhibited the
graph on the right and
stated that the current
capacity for the BAWA
Main Fritz Lanham
SWTP (West Plant or
Main Plant) is twenty-six
million gallons per day
(MGD) and the capacity
of the BAWA East
SWTP (East Plant) is six
MGD, for a total capacity
of 32 MGD.
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40
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0 32
u
8 26
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The capacity requirement at their plants was based on two components: fixed contracts and the
number of connections. BAWA has fixed contracts and the City of Baytown was their biggest
customer. However, the City did not have a fixed contract with BAWA, so their requirement for
water was based on the number of connections. Mr. Simoneaux explained that was why there were
different scenarios for growth. The graph displayed the scenarios of a six MGD expansion and a
twelve MGD expansion. The dashed lines on the graph represented 85% capacity of the two
scenarios of expansion. Mr. Simoneaux relayed that indicated the time when they would need to
plan for their next expansion. Secretary Frank McKay recalled there was previously three
expansion phases and noted the graph only showed two. Mr. Simoneaux clarified the Plant was
initially built at six MGD and was planned to expand in six MGD increments up to a total capacity
of twenty-four MGD.
Furthermore, BAWA had a contract to buy raw water from the City of Houston through Coastal
Water Authority Canals. The contract was structured for two different take points: one for each
BAWA Board Regular Meeting Minutes
September 21, 2022
Page 3 of 5
plant - twenty MGD for the West Plant and six MGD for the East Plant. Per the contract, BAWA
did not have to buy more capacity from the City of Houston until the average usage consumption
exceeds the set amount. At that time, the plants' average usage was around fourteen MGD. Mr.
Simoneaux relayed they had enough water to buy from the City of Houston; however, the problem
is that if they expand the East Plant, they would need to take more than six MGD from the East
Plant. BAWA has sent an application to the City of Houston to remove the take point restrictions;
however, Mr. Simoneaux warned it may take a while to receive a response, but it will be required
for the expansion so that the City has the water that needed for the expansion. Vice President Mike
Wilson questioned if the City of Houston had the capacity to provide the City more capacity and
Mr. Simoneaux responded that he was not aware of their reasoning to restrict the MGD to specific
locations, but he had been told that it might be due to the limitations of the canal, but that more
discussions with the City of Houston needs to be made in order to verify that information. Further
Mr. Simoneaux stated that his hope was to remove the take point restriction and leave their overall
contract at twenty-six MGD.
Mr. Simoneaux then displayed a blueprint of the two expansion options (6 MGD vs. 12 MGD
Expansion). Under the six MGD option, there would not be a need to build a new forebay unlike
the twelve MGD option. Mr. Simoneaux stated that the different components went into creating
the cost estimates for each cost option. Carollo looked at the East Plant bid items that were
constructed last year and applied escalation factors to come up with the cost estimates displayed
on the table below. Secretary Frank McKay III expressed his concern with the amounts, so Carollo
Representative Paul Walker further spoke on the price escalation environment of the market.
Opinion of Probable Project Costs (OPPC)
COST ELEMENT
6 MGD OPPC
12 MGD OPPC
Estimated Construction Costs
$39,200,000
$87,00000
Forecast Escalation to Project Midpoint
$4,800,000
$10,700,000
Contingency At 25%
$9,800,000
$21,8001000
Administration/En ineerin Le al (At 20%)
$7,800,000
$179400,000
TOTAL ESTIMATED COST
$61,6009000
$136,900,000
1. AACE Level 5 Planning Estimate w/ 40% accuracy.
2. Escalated from May 2018 to August 2022 using Dallas ENR index.
3. Based on forecasted inflation of 6% per year for two years.
Next, Mr. Walker touched on the different delivery options as allowed by Texas Statute 2269 and
provided the pros and cons of each option listed below:
Design -Bid -Build (DBB):
The Design -Bid -Build method called for BAWA to contract separately with a designer and a
contractor with no contractual relationship between the two. The two contractors come together
during the construction working through issues via the RFI, Claims process, etc. One entity,
thereby making it faster to deliver results. However, on design control, the Design -Bid -Build
model calls for the hiring of a designer. From a cost perspective, the Design -Bid -Build model has
no cost certainty. BAWA would have their designer, engineers, and would bid it out. The cost
would not be known until the project is finished because oftentimes there are change orders.
BAWA Board Regular Meeting Minutes
September 21, 2022
Page 4 of 5
Construction Manager at Risk (CMAR):
For Construction Manager at Risk, BAWA would hire a designer at the beginning of the design
phase and additionally hire a contractor at 30-60% of the design phase to collaborate, provide input
to the process, and give an indication of pricing. BAWA would enter in to a Guaranteed Maximum
Price (GMP) near the end of the design or sooner and would move forward with that firm and
designer. Thus, there would be an established relationship between the two until the Guaranteed
Max Price (GMP) is issued. However, Mr. Walker noted it would not be a contractual relationship,
but a working relationship; however, this working relationship helps limit the number of claims.
Progressive Design -Build (PDB):
The Progressive Design -Build method has one entity with one contractual relationship to work
with which would handle the design and construction. The advantage to PDB is that you have one
entity that is responsible if an issue were to arises and you have a guaranteed max price under this
method. Secretary Frank McKay III questioned the previous methods used and Mr. Simoneaux
responded that they have used the DBB for the past expansion project and CMAR is being used
for the Public Safety Building; however, the current expansion project can utilize the PDB method
as the population of the BAWA service area meets the population requirements of 100,000. Mr.
Walker further explained that on the PDB method you select a progressive design team, which
includes the designer, engineer, and contractor, at 1-5% of the design completion and you work
with the team to develop the scope, schedule and price through 60-90% of design completion, and
then the GMP is negotiated, and if terns are reached, then you can start construction. If terms are
not reached you have the option to take what design you paid for to the market to select a different
contractor.
In conclusion Mr. Walker provided the below scale of the options and offered to answer any
questions from the Board:
Delivery Method Comparison:
CMAR
Build
Early Cost Certainty
p
Schedule Flexibility
O
BAWA Design Control
0
0
(D
Risk Allocation
Q
41)
Project Quality
C
•
Relative Ranking Legend
Best meets criteria
4) Partially meets criteria
O Least meets criteria
Director Alyssa Linares questioned if with the Progressive Design -Build, if you get to a certain
point and you want to bid it out and if that at that point it would be a Design -Bid -Build and Mr.
Walker responded that the situation would be accessed at that point on how they would like to
proceed and that typically it does take it out of the Design -Bid -Build.
Mr. Simoneaux closed the presentation by stating that it is staff s recommendation to design and
construct a 6 MGD expansion using the Progressive Design -Build delivery method, and that the
preferred time frame would be to begin plans for the expansion in early Fiscal Year 2023, with a
BAWA Board Regular Meeting Minutes
September 21, 2022
Page 5 of 5
Request for Qualifications (RFQ) being issued for a Progressive Design -Build (PDB) team and
another RFQ being issued for an Owner's Advisor to help be a check point for the design build
team to ensure that we get what we want.
Secretary Frank McKay III questioned the ability to finance the project and Mr. Simoneaux
responded that this would need to be a discussion for a later date. Additionally, Secretary McKay
questioned the rate increase for the City of Houston and Mr. Simoneaux introduced the Assistant
Director for Public Works/Utilities, Sterling Beaver, and Mr. Beaver responded that historically
there has been a 3% increase yearly and as a best guess, they expect to see future rate increases.
4. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
October 19, 2022, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market
Street, Baytown, Texas 77520.
Assistant General Manager Jason Reynolds reminded the Board Members of their next Baytown
Area Water Authority meeting, which is scheduled for Wednesday, October 19, 2022, at 4:30 P.M.,
in the Council Chamber at City Hall.
5. ADJOURN
With there being no further business to discuss, a motion was made by Secretary Frank McKay III
and seconded by Director Alyssa Linares to adjourn the September 21, 2022, BAWA Board
Regular Meeting at 5:17 P.M. The vote was as follows:
Ayes: President Brenda Bradley -Smith, Vice President Mike Wilson, Secretary Frank
McKay III, Director Jimmy Smith, and Director Alyssa Linares
Nays: None
Approved
Angela Jack�n, Assistant
City of Baytown