2004 12 15 BAWA MinutesMINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
December 15, 2004
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in
regular session on Wednesday, December 15, 2004, in the Conference Room, 7425 Thompson
Road, Baytown, Texas, with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Knox Beavers, Board Member
Dan Conejo, Board Member.
Peter Buenz, Secretary, was absent.
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 November 17, 2004.
Board Member Conejo moved approval of the minutes of the meeting held on November 17,
2004. Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Beavers, Conejo and Mundinger
President Gillette
Nays: None.
The motion carried.
Consider Proposed Resolution No. 041215-1 awarding a contract to PATE Engineers, Inc., for
professional services for final design of the Wallisville Road BAWA Transmission Line Project.
Proposed Resolution No. 041215-1 awards a professional services contract, in the amount of
$727,818, to PATE Engineers, Inc., for final design of a water transmission and distribution line
along Thompson Road, Wallisville Road, Garth Road, and North Main Street. The final design
phase is $383,240, while the bidding and negotiating phase is $5,048. The construction phase
will include special inspection services to include a full-time inspector. The cost associated with
inspection services will be $291,770. The reimbursable expenses shall not exceed $20,000.
There will also be a special consultant charge of $27,760 for pipeline corrosion engineering
services to ensure corrosion protection of the new pipeline. The scope of work will include, but
not be limited to, the proposed schematic alignment, final 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 mineral royalties for the engineering services and TWDB funds for
construction.
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Minutes of the Regular Meeting —December 15, 2004
Fred Pack, Plant Manager, explained that a full-time inspector would be employed through the
engineering firm for the project. Board Member Mundinger expressed concern over the cost of
the inspector. David Hamilton, PATE Engineers, explained that the cost for inspection services
included a portion of the costs for the project manager as well as the costs for the inspector.
Board Member Mundinger moved approval of the resolution. Board Member Beavers seconded
the motion. The vote follows:
Ayes: Board Members Beavers, Conejo and Mundinger
President Gillette
Nays: None
The motion carried.
Consider approval of deduct Change Order No. 3 to adjust final quantities, to approve final
payment to Kinsel Industries, Inc., and to accept the Phase I Surface Water Treatment Facility
Expansion and Disinfection Improvements.
Deduct Change Order No. 3 adjusts final quantities, approves final payment of $296,873.09 to
Kinsel Industries, and accepts the Phase I Surface Water Treatment Facility Expansion and
Disinfection Improvements Project. The original contract was awarded to Kinsel Industries in
the amount of $5,887,300. Change Order No. 1 consisted of three proposals. Proposal No. 1
credited $5,112.25 for the deletion of two power poles that were not relocated. Proposal No. 2
added $18,115 for the replacement of flow transmitters. Proposal No. 3 credited $2,350 for
alternate construction materials for the bulk storage tanks. The result of Change Order No. 1
increased the contract by $10,652.75. The adjusted contract price was $5,897,952.75. Change
Order No. 2 added $131,944 for the removal and replacement of the three remaining forebay
pumps and shafts. After Change Order No. 2, the adjusted contract price was $6,029,896.75.
Change Order No. 3 consists of four credits. Item No. 1 is a credit of $1,500 for a survey to
determine misalignment of the sludge collection equipment in the fourth basin. Item No. 2 is a
credit of $1,800 for three electrical load centers installed with NEMA3R instead of NEMA4X, as
called for in the design. Item No. 3 is a credit of $8,290 for chlorine leak detection equipment
not provided. Item No. 4 is a credit for the reinstallation of the ferric chloride feed line. The
result of Change Order No. 3 is a credit $11,590. The final payment to Kinsel as a result of
Change Order No. 3 is $296,873.09. The final contract amount is $6,018,306.75. The project is
complete and the work was satisfactory.
Board Member Conejo moved approval of deduct Change Order No. 3, approval of final
payment to Kinsel Industries, Inc., and acceptance of the Phase I Surface Water Treatment
Facility Expansion and Disinfection Improvements. Board Member Mundinger seconded the
motion. The vote follows:
Ayes: Board Members Beavers, Conejo and Mundinger
President Gillette.
Nays: None.
The motion carried.
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Minutes of the Regular Meeting —December 15, 2004
Receive the September 30, 2004 Annual Financial Report.
Donna Sams, Director of Finance, presented the September 30, 2004 Annual Financial Report.
She reported that the operating revenues were up 6.9% over the fiscal year 2003 operating
revenues and that the operating expenses were up 3.0% over the fiscal year 2003 operating
expenses. Revenues from Sanchez Oil for mineral royalties were $1,800,000 and are used in the
capital programs to reduce bonded indebtedness. The working capital is at 111 days. The
board's policy is to maintain working capital between 60 and 90 days. The excess is due to the
fact that the debt for the new transmission line has not been issued yet. The budget anticipated a
surplus of $342,645 and the actual surplus was $572,000. A significant portion of the savings
came from using Public Works forces to install the new meters and the lower than anticipated
cost of chemicals.
Robert Belt, outside auditor, stated that his firm rendered a clean, unqualified opinion. There
were no findings in the report and the Authority is in sound financial condition.
Manager's Report.
Mr. Pack reported that Harris County is planning to widen Thompson Road from Decker Drive
to Ellis School Road. The project will require BAWA to relocate its transmission line along
Thompson Road. The expense is estimated to be $1,000,000. The project is two or three years
in the future.
Santa Claus paid a holiday visit to the Board.
Adjourn
As there was no further business to be transacted, the meeting adjourned at 8:27 a.m.
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