2009 07 15 BAWA Minutes•
MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
July 15, 2009
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met
in Regular Meeting on Wednesday, July 15, 2009 at the Baytown Area Water Authority's
Fritz Lanham Water Treatment Facility in the Conference Room, 7425 Thompson Road,
Baytown, Texas, with the following in attendance.
John Sandhop President
Dan Mundinger Vice President
Wayne Baldwin Director
Brenda Bradley Smith Director
President Sandhop convened the July 15, 2009 Regular Meeting with a quorum present at
8:00 A.M.
1. MINUTES
a. Approve the Minutes of the Baytown Area Water Authority (BAWA)
Board Regular Meeting held on May 20, 2009.
Motion was made by Director Mundinger, seconded by Director Baldwin approving the
minutes from the May 20, 2009 Regular Meeting.
Ayes: Directors: Baldwin, Mundinger, Smith,
and President Sandhop
Nays: None
The motion carried.
2. EXECUTIVE SESSION
a. Executive Session pursuant Government Code Section 551.071:
Consultations with Attorney - Legal.
At 8:02 A.M., President Sandhop recessed the BAWA Meeting into and conducted an
Executive Session Pursuant to Texas Government Code, Section 551.071 to seek the
advice of the City's Attorneys about contemplated litigation concerning the BAWA 30-
inch Water Transmission Line Project.
At 8:16 A.M., President Sandhop reconvened the Open Meeting of the BAWA Board of
the City of Baytown and announced that in accordance with the Section 551.102 of the
Texas Open Meetings Act, no action was taken in the Executive Session.
Page 2 of 5 Minutes of the July 15, 2009 BAWA Board Meeting
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3. BUSINESS ITEMS
a. Discuss Baytown Area Water Authority 2009-10 Proposed Budget and
Budget Process - Finance.
Finance Director, Cynthia Pearson discussed the Baytown Area Water Authority
(BAWA) 2009-10 Proposed Budget and budget process. A rate increase of $0.16 will
change the rates from the current City of Baytown at $1.55 per gallon to $1.71 and
outside of City of Baytown at $1.58 per gallon to $1.74. Last year's rate increase was
$0.09. This proposed increase will help balance the budget. There are significant
maintenance issues and engineering reports that will be used to gage plant maintenance.
The City is a customer to BAWA which may translate onto customer's bill. The
proposed budget summary is as follows:
Revenues — $7,265,000
Expenditures - $7,242,840
4. PROPOSED RESOLUTIONS
a. Close Out of 30" Water Transmission Line Project - Engineering.
General Manager, Garry Brumback presented the agenda item.
Resolution 2009-06 provided approval for final payment in the amount of $698,681.35
to Reytec Construction Resources, Inc. and accepts the 30" Water Transmission Line
Project.
The final construction cost for the project was $9,473,627.00 and the original contract
amount was for $9,068,660.00. There were four Change Orders totaling $514,067.00 for
adjustments to the 30" line on Thompson Road, modifications to the connection at the
BAWA plant and for adding a 12" line on Garth Road to provide an additional
connection to the existing water system. The scope of this work included the materials
and installation of a 30" water line from the BAWA plant on Thompson Road to the
intersection of North Main and Wallisville. A 16" line was then extended from the
intersection of North Main and Wallisville South along North Main to the existing water
system at I-10.
The Notice to Proceed for the project was issued July 25, 2009 and the contract provided
the project be completed in 365 days. The added work by the change orders extended the
contract completion date to November 4, 2007. The contractor had completed sufficient
work to place the line into service on September 22, 2008. Reytec continued working on
surface restoration and other contract items and had the project ready for final inspection
that was conducted on April 30, 2009. Work continued on punch list items while
resolving payments to subcontractors and suppliers until June 9, 2009. The project is
Page 3 of 5 Minutes of the July 15, 2009 BAWA Board Meeting
now completed and workmanship is satisfactory. One leak did occur in June 2009 and the
contractor promptly repaired it. Based on the contract documents, liquidated damages are
assessable against the contractor in the amount of $500 per day for 582 days. This
resulted in liquidated damages in the amount of $291,000.
The contractor has been paid for all work to date and the attached pay estimate "Number
23 and Final", requests the release of the 5% retainage of $473,681.35 being held on this
project. Deducting the recommended liquidated amount of $291,000, results in a
recommended final payment in the amount of $698,681.35. There is still an outstanding
claim from Reytec Construction Resources, Inc. for compensation due to caused
problems crossing the CWA canal that is unresolved.
Motion was made by Director Baldwin, seconded by Director Smith approving
Resolution 2009-06. The vote was as follows:
The motion carried.
Ayes: Directors: Baldwin, Mundinger, Smith,
and President Sandhop
Nays: None
RESOLUTION 2009-06
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ACCEPTING THE BAWA
30-INCH WATER TRANSMISSION LINE PROJECT; AUTHORIZING
FINAL PAYMENT IN THE AMOUNT OF SIX HUNDRED NINETY-
EIGHT THOUSAND SIX HUNDRED EIGHTY-ONE AND 35/100
DOLLARS ($698,681.35) TO REYTEC CONSTRUCTION
RESOURCES, INC., SUBJECT TO CERTAIN STIPULATED TERMS
AND CONDITIONS; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
b. Call a Public Hearing for Baytown Area Water Authority Fiscal Year 2009-
10 Proposed Budget - Assistant Secretary.
General Manager, Garry Brumback presented the agenda item.
2009-07 called for a Public Hearing regarding the Baytown Area Water Authority Fiscal
Year 2009-10 Proposed Budget for August 19, 2009, during the regularly scheduled
BAWA meeting, which commences at 8:00 a.m. and is held in the conference room
of the Fritz Lanham Water Treatment Facility located at 7425 Thompson Road,
Baytown, Harris County, Texas. Notice of the Public Hearing will be published in the
Baytown Sun on August 07, 2009.
Page 4 of 5 Minutes of the July 15, 2009 BAWA Board Meeting
Motion was made by Director Baldwin, seconded by Director Mundinger approving
Resolution 2009-07. The vote was as follows:
The motion carried.
Ayes: Directors: Baldwin, Mundinger, Smith,
and President Sandhop
Nays: None
RESOLUTION 2009-07
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN AREA WATER AUTHORITY ESTABLISHING THE
DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE 2009-
10 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
5. APPOINTMENTS
a. Recommendation to City Council for Appointment of (1) Baytown Area
Water Authority Director - General Manager.
General Manager, Garry Brumback recommended to the City Council the appointment of
(1) Director to the Baytown Area Water Authority (BAWA) Board that shall not be a
member of the City Council during their term of office and resides within the City limits
of Baytown; this vacancy is the result of Mr. Gillette's passing in the month of May.
There are (3) applicants for the Board's consideration (1) Mr. Alan Craig Enderli, (2) Mr.
David Fluker and (3) Mr. Randy Strong; their applications were attached for review.
The Board made a recommendation to the Mayor and City Council to appoint Mr.
William Gidley to serve as director for the BAWA Board.
6. MANAGER'S REPORT
a. 2008 Consumer Confidence Report - General Manager.
Assistant Director of Public Works, Mike Hughes presented the agenda item.
Mr. Hughes reported that water testing is done annually and the Baytown Area Water
Authority's 2008 Consumer Confidence Report shows no significant abnormalities.
Page 5 of 5 Minutes of the July 15, 2009 BAWA Board Meeting
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General Manager, Garry Brumback stated that the water issue the City previously
experienced was not a BAWA issue and indicated that the City's water is very good and
has no concerns.
b. Receive the BAWA Quarterly Investment Report Period Ending June 30,
2009 - Finance.
Finance Director, Cynthia Pearson stated that the funds invested in Texpool are doing
very well. The average monthly interest rate is 0.39% and the current year-to-date
earnings are $26,227. The Authority's Investment Policy requires financial reports are
presented to the Board each calendar quarter. This report is included in the packet.
General Manager, Garry Brumback presented the Monthly Distribution Report and stated
that there is an 18 million gallon a day (MGD) max water flow and a rate cap of
26(MGD).
7. ADJOURN
President Sandhop adjourned the BAWA Regular Meeting on July 15, 2009 at 8:38 A.M.
eticia Garza-, Interim AssisSecretary
City of Baytown