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2004 06 16 BAWA Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY June 16, 2004 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, June 16, 2004, in the Conference Room, 7425 Thompson Road, Baytown, Texas,with the following in attendance: Robert L. Gillette, President Dan Mundinger,Vice President Peter Buenz, Secretary Knox Beavers,Board Member Dan Conejo,Board Member. The meeting opened with a quorum present,and the following business was conducted: Consider approval of the minutes for the meeting held on May 19, 2004. Board Member Beavers moved approval of the minutes of the meeting held on May 19, 2004. Board Member Buenz seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Conejo and Mundinger President Gillette Nays: None. The motion carried. Consider approval of Change Order No. 5 to the contract for the construction of Baytown Area Water Authority Plant Expansion, Phase III. Change Order No. 5 to the contract with LEM Construction Co., Inc., for the construction of Baytown Area Water Authority Plant Expansion, Phase III, increases the contract price by $100,044 to $4,772,594.23. The change order provides for raising the existing concrete diverter valve vault and installation of the chlorine storage area HVAC system and leak detection control system. The original contract amount was $4,792,100. The four previous change orders reduced the contract price by$119,549.77. The cumulative effect of the five change orders is a reduction of $19,505.77 or 0.41%. Staff will conduct discussions with the engineering firm, CDM, concerning the failure to include the HVAC system and leak detection control system in the original plans. Page 2 of 3 Minutes of the Regular Meeting—June 16, 2004 Board Member Buenz moved approval of Change Order No. 5 in the amount of $100,044,. providing for the raising of the existing concrete diverter wall and the installation of the HVAC and leak detection control system for the chlorine storage area. Board. Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Conejo and Mundinger President Gillette Nays: None. The motion carried. Consider directing staff to pursue a ten year extension to the current water supply contract with the City of Houston. The current raw water supply contract with the City of Houston expires in 2020. The amortization of BAWA's Texas Water Development Board (TWDB) funding will extend beyond the expiration date of the current water supply contract. By extending the contract, TWDB will be assured that BAWA has a supply of water for sale to generate funds to repay its outstanding debt. Staff asks the Board for authority to enter into negotiations with the City of Houston for the ten year extension of the contract. Fred Pack, Plant Manager, in response to an inquiry from the Board, stated that the City of Houston sets water rates for all raw water customers by ordinance. T he r ate i s the s ame for all raw water customers with a wholesale contract. The contract extension will not affect the rates that are charged. BAWA recently received notice that the City of Houston increased its rates for raw water customers with contracts to $0.385 per • 1,000 gallons, effective on June 1,2004. Board Member Buenz moved to authorize staff to negotiate with the City of Houston for a ten year extension to the current contract. Board Member Conejo seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Conejo and Mundinger . President Gillette Nays: None. The motion carried. Manager's Report. Gary Jackson, General Manager, reported that the budget would be on the July agenda. Page3of3 Minutes of the Regular Meeting—June 16, 2004 Adjourn As there was no further business to be transacted, the meeting adjourned at 8:15 a.m. Gary W. Smith, Assistant Secretary