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2023 11 15 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY November 15, 2023 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on November 15, 2023, at 4:34 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brenda Bradley Smith Mike Wilson Frank McKay III Jimmy Smith Alyssa Linares John Stringer Scott Lemond Angela Jackson President Vice President Secretary Director Director Acting Assistant General Manager General Counsel Assistant Secretary President Brenda Bradley Smith convened the November 15, 2023, BAWA Board Regular Meeting with a quorum present at 4:34 P.M., all members were present. 1. PROPOSED RESOLUTIONS a. Consider a resolution authorizing the General Manager to negotiate and execute a Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law to perform legal services in connection with potential litigation regarding the presence of Polyfluoroalkyl substances (PFAS), including, but not limited to, PFOA and/or PFOS, in drinking water, wastewater and soil in the Baytown Area Water Authority's service area. President Brenda Bradley Smith announced Mr. David Isaac had signed up to speak on Item La. Mr. Isaac asked the following questions: 1. What are PFAS's, PFOA's and PFOS's; 2. How much of these items are in the water and if there is not an answer; what is the timeline to receive this information; 3. Who is this attorney and why are we wanting to hire them specifically; and why we chose them over others; and 4. Will this have an effect on the water bills, as litigations could be very costly. Counsel Scott Lemond advised the Board that Resolution No. 2023-18 authorizes the General Manager, pending approval from the Texas Attorney General, to negotiate and execute a Contingency Fee and Retainer Agreement with Frazer Law, PLC, and Ventura Law to perform legal services in connection with potential litigation regarding the presence of Polyfluoroalkyl substances (PFAS), including, but not limited to, PFOA and/or PFOS, in drinking water, wastewater and soil in the Baytown Area Water Authority's service area. The City Attorney is requesting that the City enter into a similar arrangement with the firms. Also, Mr. Lemond clarified that these are contingency fees and that there will be no out of pocket expenses to BAWA or water rate payers. The Law Firms would only get paid if an award is issued through BAWA Board Regular Meeting Minutes November 15, 2023 Page 2 of 7 either litigation or through settlement of claims, and their fee would be 25% of the awarded amount. Additionally, Ms. Lemond clarified that PFAS's are chemical substances that are released in some manufacturing industries and that at this time we do not know if there are PFAS levels in Baytown, or in BAWA, and that the purpose of entering into a contingency fee arrangement is so that we can hire the Law Firms with the expertise to do the following: • litigate claims on behalf of the City of Baytown and BAWA • how to test for the subjects; and • to find scientific testing companies who can conduct the proper studies. The reason these Law Firms have been chosen is because these Law Firms have been involved in litigation for this item for several years already. Mr. Lemond once again clarified that this item will not affect the water rates and that if any monies are awarded, the monies would return to BAWA, and offered any further questions from the Board. Secretary Frank McKay III asked for further explanation of this item as to why we are in potential litigation and with who we would be in litigation with. Mr. Lemond explained that DuPont has entered into a preliminary settlement in a multi -district litigation for several billion dollars. DuPont was the manufacture of this specific substance which is used for coatings of multiple materials such as pipes, firefighting equipment and foam, and other items as well, and that when the substance enters into water it expands rapidly, and that the Environmental Protection Agency ("EPA") has determined this substance as unsafe at certain levels. The Law Firms would conduct the testing to determine if levels exceed the levels which will be established by the EPA, based on that testing data the Law Firms would be responsible to ensure the proper award based on the level of tier of settlements that were established by the Federal Courts. Director Alyssa Linares reiterated that in her industry she has also experienced this item and other class action lawsuits associated to this item and expressed her support and need for this item. Mr. Lemon further clarified that this particular portion of the lawsuit is specific to water systems and that there will be other separate lawsuits that will address other items such as ground water, fire fighter equipment and etc. Additionally, Council will also have their own item that will go before Council for consideration that is separate and apart from this item to address non BAWA items. Secretary McKay questioned a timeline for testing to which Mr. Lemond responded possibly in the next 18 to 24 months depending on the outcome of the EPA's ruling with rating levels. Director Alyssa Linares questioned the plan for next steps if the testing does show levels of the substances to which Mr. Lemond responded that regardless of the lawsuit status there would be further discussions and plans on how to proceed if unhealthy levels are detected. A motion was made by Secretary Frank McKay III, and seconded by Vice President Mike Wilson to approve Resolution No. 2023-18, related to Item La. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank McKay III, Director Jimmy Smith, Director Alyssa Linares Nays: None Approved RESOLUTION NO. 2023-18 BAWA Board Regular Meeting Minutes November 15, 2023 Page 3 of 7 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE AND EXECUTE A CONTINGENCY FEE AND RETAINER AGREEMENT WITH FRAZER LAW, PLC, AND VENTURA LAW TO PERFORM LEGAL SERVICES IN CONNECTION WITH POTENTIAL LITIGATION REGARDING THE PRESENCE OF POLYFLUOROALKYL SUBSTANCES (PFAS), INCLUDING, BUT NOT LIMITED TO, PFOA AND/OR PFOS, IN DRINKING WATER, WASTEWATER AND SOIL IN THE BAYTOWN AREA WATER AUTHORITY'S ROPERTY; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider a resolution amending Resolution No. 2023-17 approved by the Board of Directors of the Baytown Area Water Authority (BAWA) on October 18, 2023, to correct the dollar amount authorized for the award of the purchase and replacement of HVAC units at the Baytown Area Water Authority, located at 7425 Thompson Road, Baytown Texas. General Counsel Scott Lemond presented Agenda Item Lb. and stated that Resolution No. 2023- 19 amends Resolution No. 2023-17 approved by the Board of Directors of the Baytown Area Water Authority (BAWA) on October 18, 2023, to correct the dollar amount authorized. Resolution 2023-17 awarded the bid for purchase and replacement of HVAC (Heating, Ventilation, and Air Condition) units at the Baytown Area Water Authority (BAWA) to American Mechanical Services of Houston, LLC., in an amount not to exceed $236,455.00. However, the resolution incorrectly stated the dollar amount as $160,000.00. President Brenda Bradley Smith noted that this item was presented to the Board at their last meeting that was held on October 18, 2023, and that the amount was stated correctly when the items was presented to the Board by Staff Members. A motion was made by Director Jimmy Smith, and seconded by Secretary Frank McKay III to approve Resolution No. 2023-19, related to Item Lb. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Mike Wilson, Secretary Frank McKay III, Director Jimmy Smith, Director Alyssa Linares Nays: None Approved RESOLUTION NO. 2023-19 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AMENDING RESOLUTION NO. 2023-17, APPROVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN AREA BAWA Board Regular Meeting Minutes November15,2023 Page 4 of 7 WATER AUTHORITY (BAWA) ON OCTOBER 18, 2023, TO CORRECT THE DOLLAR AMOUNT AUTHORIZED FOR THE AWARD OF THE PURCHASE AND REPLACEMENT OF HVAC UNITS AT THE BAYTOWN AREA WATER AUTHORITY, LOCATED AT 7425 THOMPSON ROAD, BAYTOWN, TEXAS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 2. REPORTS a. Receive a report on status of the Baytown Area Water Authority East Expansion Project. Ms. Lindsay Kovar, Public Works Director, and Ian Pietz, Public Works Senior Project Manager, Representatives with BGE, Inc. (Owner's Advisor) presented the status report for the Baytown Area Water Authority (BAWA) East Plant Expansion Project. (Exhibit A) 3. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, January 17, 2024, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. Acting Assistant General Manager John Stringer presented the Managers Report by stating the next BAWA meeting is scheduled for Wednesday, January 17, 2024, at 4:30 P.M., in the Council Chamber. 4. ADJOURN With there being no further business to discuss, President Brenda Bradley Smith adjourned the November 15, 2023, BAWA Board Regular Meeting at 5:02 P.M. pREA Angela Jackson, Assist atl cr 92 City of Baytown Exhibit A — Item 2.a BAWA Board Regular Meeting Minutes November 15, 2023 Page 5 of 7 Baytown Area Water Authority East Expansion Project Status Report BAWA East Water Plant Progress Report ftw , 15. 20a BAWA East SWTP Phase 2 Expansion —Agenda • Owner Advisor Services Overview • Tentative RFQ and RFP Schedule • RFQ Evaluation Criteria • Components of expansion from 6 to 12 MGD Tentative RFQ and RFP Schedule n RFQ KMiffy MK_r.q 0.10 33.2223 APPmumaley 23 Peope alt , n 13 00MW K: w RPRWIA 3. a 3] totals L�r0m'a0ma mecmq an] 52e nut n idd0c RFD Novam0er 2.2023 x PtaSQQ tel mMtlng NOvwntw 2023 202 for Gu n quMtlOm N0 3a. 30.2023 3u"t Sfor SOp e S00 Mwr DecamEar fa, 2023 . �Q Erelua0m ana Startzat S2ecor E .aruary 12, e 24 n Prue RFP 30 202 Pr�iriapoiX tdeHnq.'C0mI0FrC31 Mef!tlry5 ('�Eettl FerUJy , 202: ADM p , .ntuA 241. 02 Pay 2d.21123 Int,F its (OVe rcreWve0) dm May 202d CCFL ,^,Clec'[an NotQ'iallmi Sej 31. 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