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1995 05 17 BAWA Minutes MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS • OF THE BAYTOWN AREA WATER AUTHORITY May 17, 1995 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, May 17, 1995, at 7525 Thompson Road, in the BAWA Conference Room with the following attendance: Robert L. Gillette, President Dan Mundinger, Vice-President Peter R. Buenz, Secretary Knox Beavers, Board Member Roy L. Fuller, Board Member The meeting was called to order with a quorum present, after which the following business was transacted: Consider Minutes for the Meeting Held on February 22, 1995 Board Member Beavers moved for approval of the minutes for the meeting held on February 22, 1995. Board Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger Nays: None Consider Refinancing of BAWA Bonds As the General Manager of the Baytown Area Water Authority, Mr. Rountree felt that he could not recommend to the Board restructuring of the Authority's debt service because restructuring would add an additional interest cost in the amount of approximately $1 .8 million over the life of the bonds. This would provide no benefit to the Baytown Area Water Authority. However, there would be a small short-term benefit to the City of Baytown because of the need for water and sewer improvements. The forthcoming sale of City of Baytown water and sewer bonds will result in approximately $ .19 increase per 1,000 gallons of water. By refunding BAWA bonds at this time, there would be a decrease in the City's rate to BAWA which would be helpful to the city on a short term. However, BAWA will have needs within the next three to five years, and if BAWA bonds were refinanced, the BAWA rate would have to be increased. By planning a City of Baytown Bond Election • in 1996, the City could be ready to sell bonds in 1997 with payments due in 2003 or 2004 when the BAWA rates drop. The Board determined no action was necessary on this item. 950517-2 Minutes of the BAWA Meeting - May 17, 1995 • Consider Renewal or Award of Annual Chemical Contracts Fred Pack, Director of Utilities for the City of Baytown, noted that all but one of the chemical contracts listed were renewals. The contracts had been approved by the Board originally with the option for one year renewals. All prices have been verified and the administration recommended renewal for one year and the award of the contract for annual liquid sodium hydroxide 50%. Board Member Fuller moved to accept the recommendation of the administration. Board Member Beavers seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger Nays: None For tabulation of recommendations, see Attachment "A." Consider Revision of BAWA Purchasing Procedures In practice BAWA has been operating under the proposed Purchasing Procedures since 1981. However, a question was raised recently on the written procedure which caused the administration to seek clarification. Under existing practices the General Manager may purchase items up to $5,000 without Board approval. On items $5,000 to $25,000 the General Manager or his designee may purchase, after written specifications and solicitations from three bidders. On anything over $25,000, formal bids are taken and awarded with board approval. The clarification to the policy is that the General Manager has authority to make expenditures without the approval of the Board of Directors for all budgeted items less than $25,000. The administration recommended approval. Board Member Buenz moved to approve the clarification. Board Member Mundinger seconded the motion. The vote follows: Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger Nays: None For copy of BAWA Purchasing Procedure, see Attachment "B." • 950517-3 Minutes of the BAWA Meeting - May 17, 1995 • General Manager's Report Ground Storage Tank - Herb Thomas, Plant Manager, stated that Wayne Smith & Associates, the Consulting Engineers on the ground storage tank, will have plans and specifications ready for Board review in June. He noted that one of the things the BAWA staff prides itself on is "no interruption of service." Recently, there were two occasions when the plant was in danger of interruption having to do with the high voltage distribution system which feeds the entire plant. Any time the high voltage system is disrupted, the plant has no power; therefore, reliance is on what is in ground storage. The addition of this 4.5 million gallons will provide an additional one-half day of water supply. Bacteriological Laboratory - The lab has been approved for another two years by TNRCC. Plant Superintendent - Gordon Leeks, former plant superintendent, is no longer working in Baytown. He is now in Austin, and the search is being made for a plant superintendent. Adjourn There being no further business to be transacted, the meeting was adjourned. /It/4_ \ Peter R. Buenz Secretary • Attachment "A" • REQUEST FOR BAWA BOARD ACTION May 18, 1995 AGENDA ITEM: Annual Potassium Permanganate Bid Bid Number: B94-1193-08 The recommendation for renewal is Carus Chemical, Inc. for ANNUAL POTASSIUM PERMANGANATE BID for a total of$98,944 ($1.1779/lb.) for approximately 84,000 pounds. They were awarded the original contract on November 17, 1993. There is no increase/decrease in contract price. Annual Activated Carbon Bid Bid Number: B94-1193-03 The recommendation for renewal is Acticarb for ANNUAL ACTIVATED CARBON BID for a total of$45,463 ($0.30375/lb.) for approximately 150,000 pounds. They were awarded the original contract on November 17, 1993. There is no increase/decrease in contract price. Annual Ferric Chloride Bid Bid Number B94-1193-09 The recommendation for renewal is Van Waters& Rogers for ANNUAL FERRIC CHLORIDE BID for a total of$27,200($0.136/lb.)for approximately 200,000 pounds. They were awarded the original contract on November 17, 1993. There is no increase/decrease in contract price. Annual Zinc Orthophosphate Bide Bid Number: B94-1193-14 The recommendation for renewal is Technical Products for ANNUAL ZINC ORTHOPHOSPHATE BID for a total of$107,100($2.10/lb.) for approximately 51,000 pounds. They were awarded the original contract on November 17, 1993 with a price of$2.69/lb. There was a decrease in contract price due to manufacturers cost reducing. • Annual Liquid Cationic Polymer (DADMAC) Bid Bid Number: B94-1193-07 The recommendation for renewal is Cytec Industries for ANNUAL LIQUID CATIONIC POLYMER (DADMAC) for a total of$68,000 ($0.34/1b.) for approximately 200,000 pounds. They were awarded the original contract on November 17, 1993 with a price of$0.30/lb. There was a price increase due to the changing of polymer. We went with a heavier polymer. Annual Chlorine Bid Bid Number: B94-1093-09 The recommendation for renewal is Jones Chemical for ANNUAL CHLORINE BID for a total of $160,000 ($400/ton) for approximately 400 tons. They were awarded the original contract on October 20, 1993. There is no increase/decrease in contract price. Annual Liquid Sodium Hydroxide 50% Bid Number: 95-B0595-01 The recommendation for award is DX Distributors, Inc. for ANNUAL LIQUID SODIUM HYDROXIDE 50% for a total of $38,765 ($0.15262) for approximately 254,000 pounds. Invitations to bid were mailed to seven suppliers and we received five bids. DX Distributors, Inc. $0.15262 per pound Skyhawk Chemicals, Inc. $0.15950 per pound Bates Chemical $0.17600 per pound Weskem-Hall, Inc. $0.18750 per pound Coastal Products & Chemicals $0.20000 per pound • { Attachment "B" • PURCHASE PROCEDURE FOR THE BAYTOWN AREA WATER AUTHORITY Before the Authority makes any purchase or contract for materials,machinery,and all things to constitute the plant, works,plant improvements, facilities, and improvements of the Authority or for construction, other than land, equipment, appliances, materials or supplies, opportunity shall be given for competition. The General Manager shall have the authority to make expenditures without the approval of the Board of Directors for all budgeted items less than $25,000. All contracts or purchases involving $5,000 or more but less than $25,000 shall be let to the lowest and best bid by a responsible bidder only after bids on uniform written specifications have been solicited from at least three bidders. However, for all contracts less than $5,000, the Authority is not required to advertise or seek competitive bids. Where an expenditure of$25,000 or more is involved, the Board of Directors shall advertise the letting of a contract, including the general conditions, time, and place of opening of sealed bids. Such notices shall be published in one or more newspapers with general circulation in the state and in one or more newspapers published in each county in which part of the Authority is located. The notice shall be published once a week for three consecutive weeks before the date that the bids are opened, and the first publication shall be not later than the twenty-first day before the date of the opening of sealed bids. Persons bidding on proposed construction work shall submit written sealed bids together with a certified or cashier's check on a responsible bank in the State or a bidder's bond for at least two percent of the total amount of the bid. Bids shall be opened at the same time, and the Board may reject any or all of the bids. If the successful bidder fails or refuses to enter into a proper contract with the Authority or fails or refuses to furnish the bond required by law, he shall forfeit the amount of the check or bond which accompanied his bid. Nothing herein shall apply to contracts for personal or professional services, or for a utility service operator, nor is the Authority prohibited from purchasing property from public agencies by negotiated contract or without the necessity of advertising for bids. Additionally, these purchasing procedures shall not apply to high technology procurements, for Sections 252.021(a) and 252.042 of the Texas Local Government Code shall apply to such purchases. INTRODUCED, READ AND PASSED by the affirmative vote of the Board of Directors of the Baytown Area Water Authority, this 17th day of May, 1995. /s/Robert L. Gillette Robert L. Gillette Chairman, Board of Directors Baytown Area Water Authority b:klh7/bawa-purchasc •