2006 11 16 BAWA MinutesMINUTES OF THE SPECIAL MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
November 16, 2006 at 8:00 a.m.
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in special
session on Thursday, November 16, 2006 in the Conference Room, 7425 Thompson Road, Baytown,
Texas, with the following in attendance:
Robert L. Gillette, President
Peter Buenz, Secretary
Dan Conejo, Board Member.
Knox Beavers, Board Member
Dan Mundinger, Vice President, was absent.
Robert L. Gillett, President, opened the meeting 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 August 16, 2006.
Board Member Beavers moved to approve the minutes of the meeting held on August 16, 2006. Board
Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Buenz, Beavers and Conejo.
President Gillette
Nays: None.
The motion carried.
Consider Proposed Resolution No. 061116-1, authorizing the Second Contract Amendment to the
Untreated Water Supply Agreement with the City of Houston to increase the contract quantity.
Fred Pack, Director of Public Works, explained that the proposed resolution authorizes the Second
Contract Amendment to the Untreated Water Supply Agreement with the City of Houston to increase
the contract quantity. BAWA has purchased raw water from the City of Houston since its inception in
1977. In 2003, when BAWA requested funding through the Texas Water Development Board
("TWDB") Drinking Water State Revolving Fund ("DWSRF") for two capital improvement projects,
BAWA and the City of Houston amended the contract to extend the term and increase the contract
quantity. Thereafter, BAWA started the process of amending all of its treated water contracts in order
to make terms of each more consistent and, in some cases, to increase the contract quantities.
BAWA's customers requested the following contract quantities:
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Minutes of the Special Meeting BAWA - November 16, 2006
Customer
Contract Quantity
Requested
Harris County Water Control & Improvement District No. 1
PWS ID NO. 1010159
0.7000 MGD
Harris County Fresh Water Supply District 1-B
PWS ID NO. 1010590
0.0500 MGD
Harris County Fresh Water Supply District 1-A
PWS ID NO. 1010082
0.1652 MGD
Harris County Fresh Water Supply District #27
PWS ID NO. 1010261
0.2384 MGD
Lake Municipal Utility District
PWS ID NO. 1011741
1.0000 MGD
C&R Water Supply Company, Inc.
PWS ID NO. 1010112
OSOOMGD
Country Terrace Water Company, Inc.
PWS ID NO. 1011260
0.1250 MGD
City of Baytown
PWS ID NO. 1010003
14.22 MGD
TOTAL
16.5486 MGD
This proposed total of 16.5486 MGD is greater than the contract quantity that the BAWA is able to
purchase from the City of Houston, which is 15.8 MGD. As such, the BAWA requested that the
contract be amended again to change the contract quantity from 15.8 MGD to 20 MGD. The following
chart shows the increase in contract quantity since the original agreement in 1994:
Agreement
1994
1st Amendment
2004
2"d Amendment
2006
Contract Quantity
11.9 MGD
15.8 MGD
20.0 MGD
With no discussion on this matter, Board Member Buenz moved to approve the Resolution as
submitted. Board Member Beavers seconded the motion. The vote follows:
Ayes: Board Members Buenz, Beavers and Conejo.
President Gillette
Nays: None.
The motion carried.
Consider Proposed Resolution No. 061116-2, authorizing Change Orders One and Two with
Reytec Construction Resources, Inc. for the BAWA 30" Water Transmission Line Project.
Fred Pack, Director of Public Works explained that the proposed resolution authorizes Change Orders
One and Two with Reytec Construction Resources, Inc. (Reytec) for the BAWA 30" Water
Transmission Line Project. These changes will increase the contract amount by $127,156. The
original contract amount with Reytec was $9,068,660. The new contract amount is $9,195,816. Mr.
Pack explained that Change Order No. One in the amount of $4,356 is necessitated by having to repair
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Minutes of the Special Meeting BAWA - November 16, 2006
a six-inch waterline along Thompson Road that was not shown on the initial drawings. This was to no
fault of the contractor. He explained that Change Order No. Two is in the amount of $122,800. The
existing 12-inch waterline along Thompson Road was not in the location shown on the initial
drawings. Therefore, in order to construct the 30-inch waterline, the 12-inch waterline must be moved
to the west. The construction duration for this project remains at 365 calendar days. 2006 TWDB
bonds are funding this project.
Paul Wallick from Pate Engineering was present at the meeting to answer any questions that Board had
in connection with these two change orders. Mr. Wallick pointed out that cost of change order number
two would have been a necessary cost of the project even if it had been on the initial drawings as the
12 inch pipeline is in the way and needs to be moved.
There was limited discussion about the progress of the work, the canal, railroad lines, and propane
lines. Mr. Wallick fielded all questions accordingly.
With no further discussion, Board Member Buenz moved to approve the Resolution as submitted.
Board Member Conejo seconded the motion. The vote follows:
Ayes: Board Members Buenz, Beavers and Conejo.
President Gillette
Nays: None.
The motion carried.
Receive and discuss the investment report for the calendar quarter ended September 30, 2006.
Ms. Rhonda Young, Finance Director for the City of Baytown gave the investment report for the
quarter ended September 30, 2006. She reported that the interest earned YTD was $269,460 which
was in excess of the amount budgeted.
Manger's Report:
Mr. Paul Wallick from Pate Engineering gave the report on the BAWA waterline project Update. He
reported that the project is on schedule even though there have been some challenges. He gave the
Board updates on the following issues:
• Verizon
• Pipeline Relocation
• I- l0 Tie In
• Tractor Shop Issue
He reported that Reytec Construction Resources, Inc. has successfully worked through each issue.
Mr. Wallick fielded questions from the Board and answered each question accordingly.
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Adjourn:
Minutes of the Special Meeting BAWA - November 16, 2006
With no further business Board Member Buenz moved to adjourn. Board Member Conjeo seconded
the motion. The vote follows
Ayes: Board Members Buenz, Beavers and Conejo.
President Gillette
Nays: None.
The motion carried.
The meeting adjourned at 8:22 a.m.
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Lorri, Coody, ssistant Secretary