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1981 11 18 BAWA Minutes 11118-1 MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY November 18, 1981 The Board of Directors of the Baytown Area Water Authority, Harris County, Texas, met in regular session on Wednesday, November 18, 1981, in the Conference Room of the Baytown City Hall with the following attendance : Robert L. Gillette, President • Harry F. Hartman , Vice President Peter R. Buenz, Secretary Dan M. Mundinger, Board Member Absent : Dr. Robert E. Hill, Board Member The meeting was called to order and the following business was transacted: Minutes Board member Buenz moved for approval of the minutes for the meeting held October 21, 1981; Board member Mun- dinger seconded the motion. The vote follows : Ayes : Board members Buenz, Gillette, Hartman and Mundinger Nays: None Hear Report from Lockwood, Andrews & Newnam, Inc. Bob Parker with Lockwood, Andrews & Newnam, Inc. explained that the efforts for pressure testing the section of line from Wade Road to the connection with BRH section are continuing and have continued this month. There have been many different efforts made to repair leaks and get pressure up on that section. To the best of the consulting engineers' knowledge the pressure has been to 137 pounds on one occasion, but leaks have been detected and the testing operation has been slowed to correct leakage where necessary to continue testing. In the testing procedures, at times small pumps have been used and at times larger pumps have been used, but now two pumps are being used together which has given the capability of pumping 20 gallons per minute into the line. This pressure well exceeds the specified test pressure, but the contractor has been unable to maintain that pressure. The consulting engineers have spoken with the president • of Angleton General Mechanical to determine if they could be encouraged to get the gas detection company back out . It seems that company was responsible for finally clearing the Thompson Road section. The consulting engineers were told that Angleton would like to perform more tests utilizing the pumps since with the two pumps operating the necessary volume is provided. 11118-2 Minutes of the BAWA Board - November 18, 1981 In response to an inquiry from the Board, Mr. Parker explained that the contractor only repairs leaks which must be repaired. The method is to continue to pump to determine if further leaks materialize after the magnitude of the leak situation is determined, pumping is stopped to repair all leaks at one time. Mr. Parker stated, in response to a Board inquiry, that once this section of line has been pressure tested, chlorination and interior inspection would remain. The Board expressed the opinion that it would be good to encourage the contractor to hire the gas detection firm to locate leaks. • Mr. Lanham stated that the Administration would continue to encourage utilization of that procedure. The specifications require 155 pounds pressure for a two-hour period with maximum allowable leakage of 200 gallons during that period. Mr. Parker stated that the reason for the test procedure is to attempt to resolve any problems that the line may have prior to acceptance. The line is subject to testing to the point where all the movement is caused to take place in order to provide a fairly stabilized condition. However, Mr. Parker did state that anything could happen on pipe installation, such as fittings could fail or valves or gaskets could fail. When the line is in operation there would be a maximum amount of pressure of 90 pounds per minute at the treatment plant . Most of the system will never experience over 80 pounds per minute. Rick French with the firm of Lockwood, Andrews and Newnam, Inc. reported that the plant contractor has completed almost all of the punch list items and is now working on warranty items. A test period regarding water proofing problems has been completed where the contractor and supplier did some testing to determine what was causing the problem, but were unable to determine the source. Therefore, the consultants are in the process now of devising a test procedure for BAWA to test the water proofing and determine the problem. None of the items remaining to be completed on the plant are affecting the operations of the plant . In response to an inquiry from the Board concerning fluoridation of the water, Mr. Lanham stated that the water presently is not being fluoridated. Board member Gillette stated that he had received several comments from doctors who indicate that the water should be fluoridated. Board member Gillette felt that this possibility is something that should be considered, but he • didn' t know whether this would be BAWA' s job or the City of Baytown' s. Mr. Lanham stated that he felt this would be a joint venture because BAWA serves more area than just the City of Baytown. The Board concurred with Board member Gillette' s suggestion that the doctors ' association be requested to submit a letter on their stand regarding fluoridation and that a representative of the group be asked to speak to the Board in that regard. Board member Gillette will pursue this effort. 11118-3 Minutes of the BAWA Board - November 18, 1981 Hear Report from Norman Dykes, Director of Public Works/City Engineer, Regarding Ground and Elevated Water Storage Requirements and Consider Proposed Rate Schedules Norman Dykes, Director of Public Works/City Engineer, was present to review a report related to storage require- ments. The Administration has been receiving various requests regarding the possibilities of tying onto the BAWA system and the cost that would be involved. The Administration has spoken with the State Health Department and all lines that are directly connected to BAWA lines become part of the one system. The City of Baytown is connected directly to BAWA and any other entity that becomes directly connected • becomes a part of the overall system. One purpose of the report was to investigate the consequences of others tying onto one large system and the effects that would have on jeopardizing the City of Baytown ' s State approved system or that of Highlands or any other district that might have a State approved status. Presently, BAWA has two customers-- the City of Baytown and Lake Municipal Utility District . Requests for water service have been made by the Thompson Road Municipal Utility District and Lake MUD Section II . Lake MUD already has a contract with the city. Harris County MUD 3 and Harris County MUD 213 have been formed and those districts will be requesting water service. Others which have been urged by the subsidence district to convert to surface water follow: 1. Harris County WCID #1 2. Harris County FWSD #1A 3. Harris County FWSD #1B 4. Harris County FWSD #27 The total daily water production is presently 8 million gallons per day (mgd) . If water is supplied to the proposed future developments, the total increases by 3mgd and if nearby water districts convert to 100%, surface water, the total increases by another 1. 4mgd. Assuming all of the above, the BAWA treatment plant would be furnishing 12. 4mgd. This figure is based on average daily water consumption over a period of one year. Naturally, if the daily average is 12. 4mgd, then there will be more days of water usage in excess of this whereby the present plant capacity of 13mgd would not be sufficient . Therefore, BAWA would need to consider another plant expansion which would be in the vicinity of an additional 13mgd. The original plans for the BAWA facility included two (2) expansions. The Administration and lab have been built to ultimate size, but one of the treatment units would need to be expanded prior to all of these entities tying on and using at maximum levels. BAWA • would also need to consider the construction of another transmission line to Baytown and Lake MUD for reliability and dependability of service. Ground storage would need to be increased by another four million which would be sufficient for the next three to five years. In response to a Board inquiry, Mr. Dykes stated that there is the possibility of installing the ground storage tank at some other location within the city rather than at the plant so that it could be filled during off hours to 11118-4 Minutes of the BAWA Board - November 18, 1981 eliminate the need for another transmission line. However, the problem with that is that dual service would be unavail- able. There would be only the one line to utilize to fill the tank. The original plans were to have six 4mg tanks at the plant. There are two 4mg tanks there now and it would be advantageous to build another 4mg storage tank. Many of the water district customers have indicated a desire to convert to surface water, but a number do not have financing to construct transmission lines or to build tanks with air gaps. They have inquired if BAWA will construct these facilities and add that cost to their water bill which would be one alternative for Board consideration. The Administration has developed cost estimates on the • 4mg ground storage tank and 2mg elevated storage tank which will be needed to satisfy ground and elevated storage requirements of the State if all these entities are to be served. Assuming that BAWA were to construct these facilities and finance them out of funds derived from extra 4 million gallons that would be sold, the total cost would be $2, 600, 000. Assuming BAWA sells revenue bonds at 12% interest for a period of 15 years, the approximate annual payment would be as follows : Facility Cost Annual Payment Ground Storage Tank $ 600, 000 $ 90, 000 Elevated Storage Tank $ 2, 000, 000 $ 302 , 000 Water rates could be structured according to the required storage requirements with penalities imposed for deficiencies as follows: (1) Required ground and elevated storage or an approved air gap physicially separating systems - Rl - $1. 00; (2) Required elevated storage only - R2 - $1. 07; (3) Required ground storage only - R3 - $1. 21 ; (4) Required ground or elevated storage - R4 - $1 . 28. Mr. Lanham requested Board guidance since the Administration is beginning to receive requests for service. Board member Buenz stated that the report presented a good concept, but the only problem is that it puts the burden on BAWA to have the facilities available while giving a great amount of flexibility to the utility districts. BAWA could put the facilities in and have the district decide at a later point that their economics would dictate putting in those facilities themselves. Mr. Lanham pointed out that a contract could be developed on the basis of a district being fully developed within a given period of time which may not happen. Also, another thing that the Administration did not take into account was the possibility of districts paying a buy-in charge at the very beginning rather than a higher rate. Some of the districts may want to do that. 11118-5 Minutes of the BAWA Board - November 18, 1981 Norman Dykes stated that the safe method would be to require air gaps, but a problem associated with that concept would be in the event of annexation by the City, the City would need to expend funds to upgrade the system. Mr. Dykes stated that the report had been developed toward one large system that could be at some point in time combined without having to construct new facilities. Mr. Dykes stated that what could be done is to have the contracts drawn and have the sales coming in prior to constructing any new facilities. • Also, another thing that was not considered in the report, would be to give credits to districts for either ground or elevated storage. The district would be credited according to the amount of storage at the lowest rate and anything sold above that would be charged at the rate for an entity without that particular type storage. The State will give credit for the tanks that are in service and maintained. Mr. Lanham stated that one way to be certain that BAWA receives the required revenue from its customers is to include a minimum take or pay clause in the contract and if the districts do not develop as intended, the payments must still be made. Mr. Lanham acknowledged that this was a very complex issue and indicated that the Administration was in no way requesting that the Board form a policy at this time. However, the Administration did feel that what the two districts requesting service could be told at this point is that BAWA will provide them with water but right now the water will be provided with the understanding that there will be an air gap. If there are policy changes in the future, those districts would be notified accordingly. Board member Buenz stated that this is a complex issue. What is really being discussed is how Baytown will grow and it is a larger question than those present can really answer. He felt that guidance from City Council would be necessary on what they would like to see in terms of a water system north of IH-10. Mr. Lanham stated that whether it will be economically feasible to annex these areas in the future is questionable. There may come a time when it is not economically feasible for a city to annex a water district . Board member Gillette stated that BAWA' s purpose is to furnish water to the entities within its boundaries and the safest thing to do at this point is to require air gaps. The board voiced no objections. Consider Request for Water Service from Thompson Road MUD and MUD 3 • Mr. Lanham recommended that the Board authorize the Adminstration to notify Thompson Road MUD and MUD 3 that BAWA is interested in negotiating a contract , but with the assumption that each will furnish an air gap and that each will be responsible for its own storage. Board member Buenz moved to accept the Administration' s recommendation; Board member Mundinger seconded the motion. The vote follows : 11118-6 Minutes of the BAWA Board - November 18, 1981 Ayes: Board members Buenz, Gillette, Hartman and Mundinger Nays: None Mr. Lanham reported that the chairman of the subsidence district board had indicated that the board is very pleased with the progress that has been made. Subsidence in the eastern part of the county has declined to a bare minimum while on the western side of the county, it has become a threat. The legislature has been requested to form a water authority for the LaPorte area. Randy Strong, City Attorney, reported that BAWA will • probably be getting more requests for service from the outlying areas, because the attorneys for the subsidence district have requested a copy of the legislation which makes it possible for BAWA to furnish water to these districts without a vote. Presently, in this area of Texas, there are only three water treatment facilities -- BAWA, the Texas City plant and the Federal Road plant . Mr. Lanham reported that Baytown is one of the cities that pushed for formation of the subsidence district and requested that it be given the authority to encourage conversion to surface water. There being no further business to transact , the meeting was adjourned. Peter R. Buenz, ecretary •