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.
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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
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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.
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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 :
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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
•