1995 08 23 BAWA Minutes MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
• OF THE BAYTOWN AREA WATER AUTHORITY
August 23, 1995
The Board of Directors of the Baytown Area Water Authority, Harris County, Texas,
met in regular session on Wednesday, August 23, 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 Approval of Minutes for the Regular Meeting Held on July 19, 1995
Board Member Mundinger moved for approval of the minutes for the meeting held
on July 19, 1995. Board Member Fuller seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Plant Superintendent Introduced
Fred Pack, Assistant Director of Public Works/Utilities, introduced Kirk MacLean,
Plant Superintendent. Mr. MacLean comes to BAWA with a BB certification in Water and
Wastewater, along with a degree from New Mexico State University in Water Utilities
Operation. Mr. MacLean has a varied background in Water Production. He previously
worked for League City for several years and came to BAWA from the new Southeast
Purification Plant in Houston
•
950823-2
Minutes of the BAWA Meeting - August 23, 1995
Consider Approval of BAWA Prevailing Wage Rate Schedule
The adoption of a Prevailing Wage Rate Schedule is required by state statute. The
proposed schedule developed by the General Services Commission is currently utilized
throughout Harris County by various governmental entities as prevailing rate on Public
Works contracts. The staff utilized a survey performed by the City of Baytown, added an
additional contractor from the Highlands area, and concluded that the Prevailing Wage
determinations made by the General Services Commission fairly and accurately reflect the
Prevailing Wage Rates for the BAWA area. The administration recommended approval.
Board Member Fuller moved for approval of the BAWA Prevailing Wage Rate
Schedule. Board Member Mundinger seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Consider Award of Contract for Air Conditioning Replacement/Roof Repairs
Three bids were received on replacement of the air conditioning unit as follows:
Contractor Base Bid (No Roof Work)
Ainsworth & Co. $93,725
Derryberry's Inc. $41 ,709
Young Plumbing & Heating
Company Inc. $61,045
Two bids were received for roof repairs/replacement as follows:
Partial Roof Total Roof
Contractor Replacement Replacement
Michalsky Roofing Company, Inc. $9,000 $30,882
Oates Industries No Bid $63,557
•
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Minutes of the BAWA Meeting - August 23, 1995
• There are substantial differences in both project bids, but James A. Davis,
Consultant on the project, has verified the stability of both companies. Derryberry's is just
completing a $2,000,000 project in Texas City and is in the process of bidding a job
exceeding $3,000,000. Michalsky's has been in this area for years, and has performed a
substantial amount of work at Exxon. The original cost estimate on replacement of the air
conditioning system alone was $70,000; therefore, for $2,000 more both projects are
feasible. Mr. Davis recommended acceptance of the low bidder on each project.
Board Member Mundinger moved to accept the bid of Derryberry's Inc. for the
amount of $41,709 for air conditioning replacement unit. Board Member Beavers
seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Board Member Buenz moved to accept the bid of Michalsky Roofing Company, Inc.
for total roof replacement in the amount of$30,882. Board Member Beavers seconded the
motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Lead time on installation of the air conditioning unit is approximately ninety days.
Michalsky's would like to do the roof work prior to the air conditioning work. The air
conditioning unit will come with new flashing. Therefore, work is expected to begin in about
two months.
Consider Award of Contract for Construction of Ground Storage Tank
Two bids were received for construction of 4.5 million gallon ground storage tank
as follows:
Contractor Base Bid
Advance Tank $1,458,948
• Tank Builders, Inc. $1,282,500
MPG Construction No Bid
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Minutes of the BAWA Meeting - August 23, 1995
1111 Mr. Thomas explained that due to the TNRCC rules relating to contact time and
disinfection, BAWA needs more finished water. The best way to accomplish this is
installation of another ground storage tank as opposed to modifications to the plant.
Wayne Smith &Associates designed the tank and bids were solicited. Bids came in higher
than anticipated. The low bidder, Tank Builders, Inc. is the same company that built the
original tanks at BAWA. In 1985 the cost of a tank was $535,000. BAWA does not have
adequate funds; therefore, Mr. Thomas asked that the Board postpone any action to allow
time for the staff and consultants to review the options--tank sizes, time for tank
construction, types of materials, and construction methods. In accordance with the staff
request, the Board took no action.
Consider Authorizing Assignment of Surveying, Inspection, and Testing of Ground
Storage Tank Construction Project to Wayne Smith & Associates
Previously, the Board authorized Assignment No. 1 for the design of the ground
storage tank for a lump sum of $24,000. Board approval is necessary for the surveying,
inspection and testing necessary for the remainder of activities related to building the tank
over and above the design work. The administration recommended approval of
Assignment No. 2 to Wayne Smith & Associates for the amount of $32,000.
Board Member Mundinger moved to authorize assignment of surveying, inspection
and testing of ground storage tank construction project to Wayne Smith & Associates.
Board Member Buenz seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
Consider Approval of 1995-96 Budget
Fred Pack reviewed the proposed 1995-96 BAWA Budget. The Revenue and
Expenditures Summary reflects a slight increase in revenues for 1995-96 due mainly to the
annexation of MUD No. 3. The budget is based on an average of eleven million gallons
per day flow; last year the estimate was 11.058 mgd. Raw water purchases are decreased
due to the revised contract with the City of Houston. The proposed budget includes a 5%
increase in the rate for raw water purchases. This is an estimate because no notice has
• been received from the City of Houston of an increase.
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Minutes of the BAWA Meeting - August 23, 1995
• Under Budget Expenditures Summary, Personal Services includes the new
compensation program proposed under the City of Baytown Budget for the employees.
Chemicals have increased due to a new chemical needed to increase the PH of the water
and due to the increase in cost of chemicals. The Maintenance Section has been
decreased because of the replacement of the settling tubes during the 94/95 fiscal year,
while the Services Section has been decreased due to the decrease in Insurance costs.
Capital items include Office, Desk, Computer Desk, and related shelving, a new potassium
permanganate feeder, replacement of a large vault chemical tank and a power vent in the
sludge galley. The staff recommended approval of the proposed 1995-96 BAWA budget
which contains no rate increase.
Board Member Fuller moved for adopting of the 1995-96 BAWA Budget. Board
Member Buenz seconded the motion. The vote follows:
Ayes: Board Members Beavers, Buenz, Fuller, Gillette and Mundinger
Nays: None
As part of the budget discussion the General Manager asked Monte Mercer,
Director of Finance/Administrative Director, to discuss the financial statements. The
balance sheets reflected that BAWA has available about twenty days of cash on hand. A
minimum cash on hand is recommended at thirty days, but BAWA's debt will be completely
paid off in the year 2003; therefore, the Finance Department feels confident with this
amount of cash on hand. One substantial change was noted under Retained Earnings
reserved for Debt Service which goes from $604,411 on September 30, 1994, to $253,947
on June 30, 1995. The reason for that decrease is that September has an additional three
months of accrued cash. The money is set aside in a Sinking Fund to pay the debt on
November 1; therefore, there is three months less cash accumulated. The other number
which reflects noticeable difference under Total Current Assets, Restricted Cash and
Investments, is $604,411 available September 30, 1994 and $1,032,921 available June
30, 1995. This is due to bonds sold for construction of the projects discussed earlier. The
Income Statement reflects BAWA is about 69% where anticipated for the end of the 1994-
95 fiscal year. This is not unusual. There is a lot of activity in the last two months of the
year. The City of Baytown comprises about 89% of total revenues for BAWA with
approximately 65% revenues expended for raw water purchases and debt service--30%
attributable to Debt Service; and 35% attributable to raw water purchases. These two
items drive the BAWA budget.
• Mr. Mercer introduced Donna Sams, Controller for the City, who was responsible
for the compilation of the Financial Statements.
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Minutes of the BAWA Meeting - August 23, 1995
• Adjourn
There being no further business to be transacted, the meeting was adjourned.
Peter R. Buenz
Secretary
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