2005 07 20 BAWA MinutesMINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July 20, 2005
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, July 20, 2005 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 at 8:00 a.m. with a quorum present, and the following business was
conducted:
Consider approval of the minutes for the meeting held on April 20, 2005.
Board Member Beavers moved approval of the minutes of the meeting held on April 20, 2005.
Board Member Buenz seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Mundinger, and Conejo.
President Gillette.
Nays: None.
The motion carried.
Discuss the Harris County Thompson Road project and the relocation of the BAWA distribution
line.
Fred Pack, Plant Manager, reported that the Harris County Engineering Department had
informed staff that the project to widen Thompson Road will extend from Decker Drive to Ellis
School Road. The preliminary engineering report should be completed in six to eight months.
Construction should begin approximately three and one-half years to four years later. Staff has
requested that the alignment be developed to miss the BAWA distribution line. Staff projects
that the project will impact the line at the Cedar Bayou -Lynchburg Road and Thompson Road
intersection, where the line splits and there is valving. Harris County has estimated that the cost
to BAWA will be $316,216 to relocate the BAWA lines. The estimated expense to the City to
relocate its lines is $338,850. Staff will have an opportunity to comment when the preliminary
engineering report is completed.
Consider awarding bid for north lagoon sludge removal.
Invitations to bid on the north lagoon sludge removal contract were published, four bids were
received and one no bid was received. Rodriquez Brothers is the apparent low bidder, but
refused to provide references. Anderson Pollution Control is the apparent second low bidder.
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Minutes of the Regular Meeting —July 20, 2005
Rodriquez Brothers has performed work for the City of Baytown and performed reasonably well.
Anderson Pollution Control has provided references and they have been checked. The cost for
the 2002 lagoon cleaning was $28,000.
Board Member Buenz moved awarding the bid to Anderson Pollution Control at the price of
$31,294. Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Mundinger, and Conejo.
President Gillette.
Nays: None
The motion carried.
Receive and discuss draft of the proposed 2005-2006 fiscal year budget.
Mr. Pack reported that the increased expenses in the proposed budget come from increased raw
water costs and increased raw water usage. The current budget projected 12.21 million gallons
per day. The proposed budget increases flow to 12.5 million gallons per day. The increase in
raw water treatment increases the amount of chemicals used. There are inflationary increases.
Raw water increased by 3.5%; electricity is projected to increase 30%; fuel is projected to
increase 30%; and chemicals are projected to increase by 10%.
Mr. Jackson stated that the fund balance will be used to avoid a rate increase and that the ending
working capital is projected to be 95 days. The increases in costs of raw water and the proposed
capital projects (Phase 11 and the new waterline) have been delayed, but will require a rate
increase in a future budget.
Discuss Water Quality Reports.
Armando Martinez, Lab Supervisor, reviewed the report. The report describes the source of the
water, the history of BAWA, how the water is processed, and how the water is distributed. The
report notifies customers of possible contaminants. Not all possible contaminants are bad, some
are naturally occurring. A table of constituents is included, with maximum allowable
concentrations shown, and the local values. Non -regulated substances are also included, along
with definitions and total organic concentration and chlorine residual. The report is posted on
the City's website and the Baytown Area Water Authority website.
Board Member Buenz commended the BAWA employees for providing safe drinking water.
Receive and discuss the investment report for the calendar quarter ended Jun 30, 2005.
Rhonda Young, Finance Director, reviewed the report for the Board noting that the majority of
the funds are in TexPool receiving a 3.06% return.
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Minutes of the Regular Meeting —July 20, 2005
Manager's Report.
Tony Brown, Plant Supervisor, reported that the water produced by the plant is averaging 12.53
million gallons per day through June. In July, the production is 13.5 million gallons per day.
The budget projected 12.21 million gallons per day.
Mr. Jackson introduced Kelvin Knauf, Assistant City Manager.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:28 a.m.
Gary W. Smith
Assistant Secretary