2004 04 21 BAWA Minutes • r
MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
April 21, 2004
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, April 21, 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 February 18, 2004.
Board Member Mundinger moved approval of the minutes of the meeting held on February 18,
2004. Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette
Nays: None.
The motion carried.
Consider Proposed Resolution No. 040421-1, declining participation with the Coastal Water
Authority for the installation of additional power supply and a standby generator at the Trinity
River Pump Station.
Proposed Resolution No. 040421-1 declines the opportunity to participate with the Coastal Water
Authority in the installation of additional power supply and a standby generator at the Trinity
River Pump Station. The pump station is served by one power source from the east. The
Authority has planned the expansion of the pump station. The expansion plans call for a
secondary power supply source from the west and the installation of a standby generator capable
of operating a full size pump. The estimated cost of the expansion is $1,100,000. The Authority
proposes to allocate the cost of the expansion to the users along the CWA Main Canal and the
Cedar Point Lateral Canal. The projected cost for BAWA is $399,293.
Fred Pack, Plant Manager, explained that none of the other agencies invited to participate have
agreed to participate. Mr. Pack recommended adoption of the proposed resolution declining
participation.
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Minutes of the Regular Meeting—April 21, 2004
Board Member Buenz moved adoption of the proposed resolution. 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 Proposed Resolution No: 040421-2, authorizing an agreement for financial advisory
services with First Southwest Company.
Proposed Resolution No. 040421-2 authorizes an agreement for financial advisory services with
First Southwest Company. First Southwest Company (FSW) provides professional services for
the issuance and sale of bonds. FSW directs and coordinates the entire p rocess o f financing
bonds and acts as the City's liaison with entities involved in the process.
Board Member Buenz moved adoption of the proposed resolution. Board Member Conejo
seconded the motion. The vote follows:
•
Ayes: Board Members Beavers,Buenz, Conejo and Mundinger
President Gillette
Nays: None. •
The motion carried.
Consider Proposed Resolution No. 040421-3, authorizing an agreement for bond counsel
services with Vinson &Elkins.
Proposed Resolution No. 040421-3 authorizes a professional services agreement with Vinson &
Elkins for bond c ounsel s ervices. V inson & E lkins h as advised B AWA o n b and m atters for
many years. The proposed agreement continues those services.
Board Member Buenz moved adoption of the proposed resolution. Board Member Beavers
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette
Nays: None.
The motion carried.
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Minutes of the Regular Meeting—April 21, 2004
Consider Proposed Resolution 040421-4, authorizing the General Manager to apply for
financial assistance from the Texas Water Development Board for the BAWA Capital
Improvement Program.
Proposed Resolution No. 040421-4 requests financial assistance from the Texas Water
Development Board (TWDB) and authorizes the submission of an application to the board. The
application is for $13,292,500 in total funding. The design for the second water supply line
project was funded in the 2004 adopted budget. The construction cost of $7,000,000 will be
funded by TWDB. The disinfection improvements (Ozone) are contingent on final regulations
issued by TCEQ and will be included in the TWDB application for $6,000,000. TWDB offers
attractive interest rates.
Donna Sams, City of Baytown Finance Director, reminded the Board that staff had been
authorized to request inclusion in the TWDB drinking water plan. The BAWA projects have
been included in the plan and this item authorizes submission of the final application. The
interest rates offered by TWDB are 2.85%, which is below the current rate currently offered on
certificates of obligation. The deadline for the application is May 3, 2004.
Board Member Buenz moved adoption of the proposed resolution. Board Member Conejo
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.
This item was not ready for consideration. Mr. Pack explained that other change orders are
pending and that all would be brought for consideration at the next meeting.
Consider Proposed Resolution No. 040421-5, approving a professional services agreement for
the design of the proposed transmission line.
Proposed Resolution No. 040421-5 approves a professional services contract with PATE
Engineers, Inc., for a fee not to exceed $388,510 for the preparation of a preliminary engineering
report (PER) for the design of a water transmission and distribution line along Thompson Road,
Wallisville Road, Garth Road, and North Main Street. The PER will include but not be limited
to a proposed schematic alignment, preliminary plan and profile sheets, coordination with all
applicable agencies, and identification of all required easements at various locations where the
line will not be able to be constructed within the existing road rights-of-way. This project will be
funded by bond funds for the engineering services and TWDB funds for construction.
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Minutes of the Regular Meeting —April 21, 2004
Bill Pedersen, City of Baytown City Engineer, explained that the professional services are
funded by royalty income and that the services under the contract will assist with the application
to TWDB. Of the total fee, only $68,500 is for basic services.
Board Member Buenz moved adoption of the proposed resolution. Board Member Conejo
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Conejo and Mundinger
President Gillette
Nays: None.
The motion carried.
Receive the March 31, 2004 Investment Report.
In accordance with the Public Funds Investment Act Section 2256-023 (a) and (b), the City of
Baytown Finance Department has prepared and is presenting the Investment Report for the
quarter ending March 31, 2004.
Ms. Sams reviewed the report and concluded that interest rates are still low.
Manager's Report.
Mr. Pack reported efforts continue to finalize Phase I construction. There have been problems
and delays with the contractor. One major item exists, the chain of flight system for the new
basin. It is not properly aligned. There have been many problems with the system. It has been
damaged and repaired. The manufacturer and contractor claim that it is properly installed. Staff
retained a surveyor at a cost of $1,500. The survey demonstrated that the system is out of
alignment. Our engineering firm is writing to the contractor to establish a deadline for proper
alignment. Completion of Phase I is dependent on the response to the letter. Mr. Pack explained
that the instrumentation (SCADA system) is working properly, except for the panel on the chain
of flight system. A cloned system was installed. BAWA will not accept the cloned panel.
Tony Brown, Plant Supervisor, reported that water sales reflect a high level for the winter
months. The outlook is good going into the summer months.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:20 a.m.
Assistant Secretary