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1996 11 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY November 20, 1996 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, November 20, 1996, at 7425 Thompson Road, in the BAWA Conference Room with .the following attendance: Dan Mundinger, Vice -President Peter R. Buenz, Secretary *Knox Beavers, Board Member Roy L. Fuller, Board Member Absent: Robert L. Gillette, President Consider Approval of Minutes for the Regular Meeting Held on October 16, 1996 Board Member Buenz moved for approval of the minutes for the regular meeting held on October 16, 1996. Board Member Fuller seconded the motion. The vote follows: Ayes: Board Members Buenz, Fuller and Mundinger Nays: None Consider Approval of Contract with Tank Industry Consultants for Inspection of Ground Storage Tanks The administration recommended approval of a contract with Tank Industry Consultants to inspect three large ground storage tanks and one smaller ground storage tank which is actually a back -wash tank for the plant. Tank Industry will do a comprehensive study on the structural integrity of the tanks and a TNRCC Compliance • Audit for a total contract price of $22,335. A comprehensive report will be provided. on each tank, along with recommendations. The last thorough inspection was performed in 1993. 961120-2 - Minutes of the BAWA Meeting - November 20, 1996 • Board Member . Buenz moved to authorize a contract with Tank Industry Consultants for inspection of ground storage tanks. Board Member Fuller seconded the motion. The vote follows: Ayes: Board Members Buenz, Fuller and Mundinger Nays: None Introduction of Laboratory Supervisor Mr. Brown introduced Armondo Martinez, the new Laboratory Supervisor, effective November 1, 1996. Mr. Martinez has a BS in Medical Technology from the University of Texas. He_ has eight years experience as a hospital medical technician, with three of those years. as 'a supervisor. He has a strong background in biology and . chemistry and has already been certified with the Texas Department of Health to read the BAWA bacteriological tests. Consider Approval of Water Supply Contract Between Baytown Area Water Authority and City of Baytown This is a contract by which BAWA supplies treated water to the City of Baytown. The existing contract expires December 31, 1996. The proposed contract expires in the year 2020, the same time as the City of Houston contract- with BAWA. The City of Houston contract requires all new contracts to be based on :water conservation. The City of Baytown uses approximately 90% of the water produced by BAWA; therefore, the contract is based on 90% of the City of Houston contract, which is 10.71. mgd. There is no penalty until the City uses over 11.7 mgd. *Board Member Beavers present. Since BAWA does not have a separate master meter for -the City. of Baytown, a monthly daily average was taken on' which to base the contract. This makes it even more remote that the penalty would be reached. The contract provides for a 5% penalty for exceeding the contract amount by 10%, but only' on the amount used above .the contract quantity. The contract allows BAWA to pass the penalty to the City of Baytown. The City of Houston has given verbal approval of the contract. 0 961120-3 C: Minutes of the BAWA Meeting - November 20, 1996 The City Attorney explained that since the Legal Department for the City of Baytown represents both BAWA and the City of Baytown, should there be a legal disagreement concerning the contract, both the City of Baytown and BAWA would need to seek outside representation because legally, the department could not represent two parties with conflicting interests. Board Member Buenz moved to authorize the Water Supply Contract between Baytown Area Water Authority and the City of Baytown and to acknowledge disclosure of Legal Representation. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller and Mundinger Nays: None Report by General Manager Bobby Rountree, General Manager, reported that in a recent meeting with State Representatives Talton and Bosse, they cautioned of possible major legislative changes affecting water rights. Both San Antonio and Austin have lobbyists seeking legal rights to extend to other areas. Board Member Buenz expressed interest in having Fritz Lanham, Board Member on the Harris -Galveston Subsidence District Board, to update the BAWA Board on the subsidence issue. Mr. Rountree said he had planned to call Mr. Lanham to let him know that this proposed legislation would be discussed because the subsidence district may need to prepare to address this issue. Consider Award of Bid for Removal of Sludge from Center Lagoon Four companies were contacted with regard to submitting quotes for removal of sludge from the Center lagoon. Two companies submitted bids. This is the 16,000 cubic yards of sludge.which was removed from the forebay cleaning. The low bidder is J. D. Ivey Company at $900 per day for 20 days and a $900 charge for mobilization and demobilization, which brings the total cost to $18,900. Continental Dredging bid a total of $22,000. Therefore, the administration recommended award of the bid to J. D. Ivey Company. 961120-4 • Minutes of the BAWA Meeting - November 20, 1996 Board Member Buenz moved to award the bid to J. D. Ivey Company; Board Member Fuller seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller and Mundinger Nays: None Consider Awarding Bid for Potassium Permanganate Nine bid packets were mailed; seven bids were received. The low bidder is Skyhawk Chemicals, Inc. at $1.1771 per pound for a total of $129,481. Board Member Buenz moved to award the annual potassium permanganate contract to Skyhawk Chemicals, Inc. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller and Mundinger Nays: None For bid tabulation, see Attachment "A." Manager's Report Texas Department of Health - Construction has begun on the new fluoride system. The old underground tank is being removed and _ bids are being taken to purchase the equipment. A grant for $30,400 was received from Texas Department of Health for this project, including initial startup of chemicals. Mont Belvieu - The General Manager reported that another call has been received from representatives of Mont Belvieu to come by and revisit the calculations. for BAWA to supply Mont Belvieu with treated water. They have been looking at three options including (1) constructing their own plant, (2) purchasing from BAWA, or (3) drilling another well. 9 - 961120-5 • Minutes of the BAWA Meeting - November 20, 1996 Fred Pack, Director of Utilities, reported that Mont Belvieu is considering initially to construct a one million gallon per day plant at a cost of approximately $2 million with plans to increase the plant later for a total cost of $6 million. They will be looking at the same amount of money to construct a line from BAWA which would preclude operational costs. Another important consideration is that the construction of a.1. mgd plant will provide a plant that will be operating in an overload condition from its inception. ,Purchase of treated. water from the City of Baytown is about 1/3 of the cost to get the water to Mont Belvieu, but the water will cost twice the rate paid in Baytown. Tri City Beach Road Development - USX has sold approximately 500 acres to a group that plans to construct about 600 plus homes. Presently, that group is considering purchasing utility services from the City of Baytown versus constructing their own facilities. Adjourn There being no further business to be transacted, the meeting was adjourned. Peter R. Buenz, Secretary 0 Attachment' "A" Action Request for BAWA Board • November 20 1996 AGENDA ITEM: Annual Potassium Permanganate Contract Bid Number: 97-131096 01. .The recommendation for, award is Skyhawk . Chemicals, Inc., for the annual Potassium Permanganate contract for total of $129,481. Invitations to Bid were mailed to nine suppliers and seven bids were returned. The results are as follows: BID RESULTS Annual Potassium Permanganate Contract Bid Number 97-131096-01 Bid Opening November 12, 1996 at 2 p.m. Skyhawk Chemicals, Inc. $1.1771 $129,481 1 2 Weskem-Hall $1.2200 $134,200 3 Bates Chemical $1.2200 $184,200 4 American International Chemical Co. $1.2378 $136,158 5 Carus Chemical $1.2420 $136,620 6 DX Distributors, Inc. $1.3300 " $146,300 7 Harcross Chemicals, Inc. $1.4100 $155,100 8 Van Waters & Rogers No Bid No Notification Sheet . 9 DXI Industries, Inc. No Bid No'Notification Sheet