2024 01 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
January 17, 2024
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on January 17, 2024, at 4:30 P.M., in the Council Chamber of the Baytown City Hall,
2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley Smith President
Mike Wilson
Vice President
Frank McKay III
Secretary
Jimmy Smith
Director
Alyssa Linares
Director
Brant Gary Assistant General Manager
Scott Lemond General Counsel
Angela Jackson Assistant Secretary
President Brenda Bradley Smith convened the January 17, 2024, BAWA Board Regular Meeting
with a quorum present at 4:35 P.M., all members were present.
1. CITIZEN COMMENTS
President Brenda Bradley Smith announced no one signed up to speak.
2. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on October 18, 2023.
A motion was made by Vice President Mike Wilson, and seconded by Director Alyssa Linares to
approve the meeting minutes of the Baytown Area Water Authority Regular Meeting held on
October 18, 2023, as submitted. 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
b. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on November 15, 2023.
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 2 of G
A motion was made by Secretary Frank McKay III, and seconded by Director Alyssa Linares to
approve the meeting minutes of the Baytown Area Water Authority Regular Meeting held on
November 15, 2023, as submitted. 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
3. PROPOSED RESOLUTION
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.
General Counsel Scott Lemond presented Agenda Item 3.a and stated after the Board met it was
discovered some required language was not included in the first notice. Therefore, this item has
been revised and both are back before you. Mr. Lemond further stated that a similar item was
presented to City Council and was approved.
A motion was made by Vice President Mike Wilson, and seconded by Secretary Frank McKay
III to approve Resolution No. 2024-01, related to Item 3.a. 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. 2024-01
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 PROPERTY; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
4. REPORTS
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 3 of 6
a. Receive the Baytown Area Water Authority Quarterly Financial and Investment
Reports for the Quarter Ending September 30, 2023.
Controller and Assistant Finance Director Lianette Leon presented the Baytown Area Water
Authority's Quarterly Financial and Investment Reports for the Fourth Quarter that ended
September 30, 2023, as follows:
RAT70W1,1 AREA WATER AU7NORNY IBAWAI
P4rbdEnd27g Sep6enLe. 30, 2 3
Operating Fund
U."
Budge)
CTAauel
Relents,
%
"T l
CMn,S
Rs,wnum
Wet -Sole, Ila'— S
13.491,632 S
16,466,818 S
(2,975,187)
122% S
13.531,126 S
"11:611 S
BAWA Burge+ Retaned
W.I., Saba -Our— $
1.729.197
1694.670
34,527
98%
1,475.W1
2195E
Sts.A5.+k07susL.iV
Ineesernent Interest
1,W3
93640
(92.566)
8726%
5,W7
87.643
147%
Tremler6em RAWAOPF
4,156357
(4.156.351)
0%
1700.890
1.455.467
Tre-fer 6om MIS
123158
123,258
1M
12).258
Total Revenues
15.Sjw22.
34.742
(d89. 3)
14 %
17.81042 42
3.695 00
E"recasre
Personnel Sers.
2.040,060
1M5 242
97,810
95%
t )20,10
230.WS
Supproe
5,976.714
3.912,807
2,063,%7
65%
s"8,723
11,135,9161
Meuluoento
494.021
48.0,3E
13.621
97%
'v06.036
(2607)
BAWA Budget Spent
Sevres
1,864,222
1,242,531
621,691
67%
878.335
311'6
n6,bv7,749rsR3m.797
Capful Our,
226,458
(30,877)
257,335
14%
O:,7')
80%
Inurlund Tumler
5,833.2%
5.833,294
0
ID096
7,761.705
(1920.411)
Conurgendes
250.00D
0%
Told Eependiturm
16.692.70
13,388,377
30Sa3 2
am
16.31S.747
12,92 50)
Net CMnge
LL341.6091
9,146,345
1520.595
Beg. Warbrg Capul
23W.267
(1,583.007)
1.116630
Working Capul S
1,251,658 $
7.563,338
S
2.6W.225
AN,Ending
Capful Improvement Program
CYm PY
�pJy4
V/
Butlgn
C Aetuel
3e4nm
%
nAcwsl
C n,eS
Ra en
In., Is. S
am S
50.025 E
145,825)
lam
8.122 $
42.703
Secant, lypc eaurrce ErsnusSs
Rermue Derr+BAWAOp ,
Teepee, S 0133.605 S 141,4M
FuM $
1.000.000 S
Talau, 00 S
0
100% E
3,000." S
a000.0001
Tool R—nues
1.005,000
1,0 B2
(B2)
1 %
Taut
T.9 391
E'rrdium
BAWA CIP lrrr,, n S
6,937,296
4,206,289
2,731,007
61%
2,700,890
1.505.3E
Net C6s ,e (S,932,293) (3,155,4641 W7,232
He"Wohmg Captd 5,M.297 4662,854 4,15S.U2
Ending Wehirrg Ceplel S S 1,307,3E $ 4,462.05 t
Additionally, Ms. Leon stated that these figures are not audited yet, as they have not completed
the single audit for Fiscal Year 2023.
Secretary Frank McKay III questioned why the water sells were much higher and Ms. Leon
responded that the Governmental Accounting Standards Board (GASB) fees are applied at the
end of the fourth quarter, along with any other accounting principles to end the fiscal year.
Therefore, this is actual revenue total.
Vice President Mike Wilson questioned when and who would be conducting an audit and Ms.
Leon responded that Belt Harris Pechacek, LLLP would be conducting the audit and that the
audit is currently ongoing.
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 4 of G
b. Receive a report on the status of the Baytown Area Water Authority East
Expansion Project.
Public Works and Engineering Director Frank Simoneaux presented the status report for the
Baytown Area Water Authority East Plant Expansion Project and highlighted the Request for
Qualifications (RFQ), timing and capacity issues, procurement options and the tentative
schedule. See attached report as Exhibit "A".
Mr. Simoneaux stated that we received three Requests for Qualifications ("RFQ"). However,
Flintco Industrial was disqualified due to not submitting the required documentation.
Vice President Mike Wilson asked if these companies have done any projects with the City of
Baytown or the Baytown Area Water Authority, and Mr. Simoneaux responded that we have
approved contracts with both of the Engineering Firms (Ardurra & Carollo), but we have not
with either of the contractors (Burns & McDonnell & Baytown Waterworks Partners). However,
both companies are qualified and have a reputable reputation, and Staff has confidence that
either team could move forward and complete the project successfully.
Further Mr. Simoneaux explained the need to continue with the Progressive Design -Build
("PDB") delivery method with Texas Water Development Board State Water Implementation
Fund for Texas ("TWDB SWIFT") Funding, due to recent events that have increased the need
for additional million gallons per day ("MGD") capacity, which therefore, also affects the
urgency to move the timeline of the project.
Director Alyssa Linares questioned if the Niagra Bottling Company would need to request an
increase and Mr. Simoneaux responded that they are not aware of any future expansions for them
and if they did request an increase, it would have to be delayed until after the expansion project
is complete.
Secretary Frank McKay III questioned the amount that BAWA currently delivers and the amount
that elevated tanks can hold on hand and Mr. Simoneaux responded that the daily average runs
about 14 MGD, but that during a freeze they receive their peak usages, which the freeze of 2022
they reached over 30 MGD. Also, the above ground storage tanks hold a combined total of
approximately 16 MGD. However, in the event of a freeze these tanks could be frozen and
inoperable.
Assistant General Manager Brant Gary voiced his favor of the Progressive Design Bid -Built
compared to the Design Bid -Build process, due to the uncertainty with the Design Bid -Build
process.
Vice President Mike Wilson questioned additional explanation of what are the TWDB SWIFT
funds are and Mr. Simoneaux explained that its state funding issued by the TWDB agency which
has certain requirements such as being a part of the State Water Plan, which we would have to
join in that program in order to receive the funding. Mr. Simoneaux reiterated that this program
is a loan, but that the interest rate is lower than the market rate.
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 5 of 6
Ms. Lindsay Kovar, Senior Project Manager with BGE, Inc. (Owner's Advisor) stepped to the
podium and provided further information by stating that several years ago Proposition Six moved
money out of the Rainy -Day Fund for Water Infrastructure Projects and that the State makes
money from these loans and they in turn are able to fund more projects. The program has
reporting requirements and environment clearance is required prior to construction, and you are
required to use American iron and steel. Also, because it's a state program, and not a federal
program, it has less requirements than the programs offered on the Federal level. The main
benefit of the TWDB SWIFT program is the low interest rate loans. Mr. Simoneaux noted that
Staff has started the process for applying for the Texas Water Plan and that they went to a board
meeting and they received approval to submit a plan. An Engineer has been hired to prepare the
amendment, and it will take the consultant approximately 6 months to prepare the amendment.
However, the problem is that the that plan is only updated once a year in December, so they will
not be able to submit until the next amendment session, and only then can you can apply for
funding.
Secretary Frank McKay III questioned if the expansion projects will address the lawsuit that is
ongoing concerning potential contaminants to which Mr. Simoneaux stated the expansion is
intended to use the same technology that we currently have with the exception of a few tweaks.
We currently do not have direction from the EPA or TCEQ on how to proceed at this point.
5. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
February 21, 2024, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market
Street, Baytown, Texas 77520.
Assistant General Manager Brant Gary presented the Managers Report by stating the next
BAWA meeting is scheduled for Wednesday, February 21, 2024, at 4:30 P.M., in the Council
Chamber. Mr. Gary commended the Public Works Staff for their response related to the recent
freeze event, and for the most part it was a non-event. During the freeze, the peak demand was at
27 MGD, with one minor issue at both plants that was resolved in a relatively short amount of
time. As the demand increased, the Public Works Staff went out and surveyed for leaks and there
were five leaks on the City side. With all of this in mind staff handled the situation well and
overall there was a huge advance in the response from the last freeze that we encountered with
Winter Storm Uri, and offered any questions from the Board.
Director Alyssa Linares questioned the specifics of the issues at the plants and Mr. Gary
responded that there was a valve issue at the East Plant and a clog at the chlorine injector at the
main plant, which are minor maintenance items that could occur on a normal operational day.
They were fixed relatively quickly.
Secretary Frank McKay III questioned that during Uri there was some tanks that were left
exposed to the elements which caused an issue and Mr. Simoneaux responded that insulated
Teflar covers were installed to cover the tanks and that they worked relatively well with this
recent freeze event. Additionally, another change that was implemented is that the power at the
plant is turned over to generator power, and that actually helps the electrical company with peak
demand times, and it also helps avoid equipment failure due to the constant power surges during
an extreme freeze event.
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 6 of 6
Mr. Gary also noted that staff will soon be looking for a credit from the electrical company for
operating generators at peak times, and that they are also looking at their electrical supply
contact renewal in the near future, as well as testing their generators in the process.
Lastly, President Brenda Bradley Smith questioned about a poll for a special meeting and
Finance Director, Teresa McKenzie responded that Staff is looking to hold a special BAWA
meeting on February 7, 2024 at 4:30 P.M., to present the financial audit report for fiscal year
2023.
6. ADJOURN
A motion was made by Vice President Mike Wilson, and seconded by Director Alyssa Linares to
adjourn the January 17, 2024, Baytown Area Water Authority Board Regular Meeting at 5:21
P.M. 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
Angela JAbkson, Assistant
City of Baytown
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 7of12
Exhibit A — Item 4.a.
Baytown Area Water Authority East Expansion Project Status Report
BAWA East Water Plant
Progress Report
BAWA Board Meeting
January 17, 2024
left
BAWA East SWTP Phase 2 Expansion — Agenda
• RFQ Update
-Timing and Capacity Issues
• Procurement Options
-Tentative Schedule
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 8 of 12
RFQ Submissions
• Burns & McDonnell (w/Ardurra)
• Baytown Waterworks Partners (McCarthy & Carollo)
• Flintco Industrial (w/UA)
Contract Water Summary
Total Capadty
City of Baytown ACR
Begvimment
C08 coovatt
fl q cement
tot 1 c08
Reg irement
BAWA aMt
cO".nn,r
Reav6emwn
total Capx�ry
ReAwrempat
31.828
31.878
2022 Uwtlty
2023 UpadW
(MGD)
(MGD)
18.451
19.790
6911
8 211
25.362
21.00t
31.878
31.878
32.838 31128
31.878
32.838
Upadty 2025C Oacty 2026CapatlN 2032
2028
2029
IGO)
(MGD)
(MGD) Capiehy
JMGD)
Upatlty
(MGD)
Upadw
IM00)
MM A6
20345 A 20.610
20.838
21.149
tl Sll
8813 813
9.127
9.IP
3
2860
i916 A2
30M
3G.28
28.145
30.639
31158
3133
1,239
0.619
11315- 32.028 M M3 32.925 33.156
0.363 0.2M -0465 1Oa7 .1.318
BAWA Board Regular Meeting Minutes
MarketrWOB
Market Bonds
$10,000.000
$7.344,000
TWOS
$80,513.000
$52,270,000
$50,000
$41,00(1
$52,361,000
November 2027r
• Single contract; single point of
responsibility
• Performance based
• May allow for early equipment
delivery
• Cost and schedule certainty.
Market Only
Market Bonds
$10,000,000
$7,344,000
Market Bonds
$88,710,000
$57,715.000
$57,715,000
October 2027
• Single contract; single point of
responsibility
• Performance based
• Quickest potential delivery
• Cost and schedule certainty.
• More complicated contract. • More complicated contract.
• Cannot accelerate construction
due to environmental review.
• Proposers may not accept
revised schedule or may add
additional costs to
accommodate delays.
1. Assume 25 year. 5% Interest gate JNot provided by FA)
2. Assumes long lead procurement occurs during environmental review and environmental review paralleling application.
3. Allows for escalation.
Recommendation
• Progressive Design Build with TWDB SWIFT Funding
• Progressive Design Build provides the quickest possible timeline for completion.
Schedule is critical due to the water needs.
TWDB provides the cheapest cost alternative for financing.
1
BBlrt
January 17, 2024
Page 9 of 12
MarkeVMDB
Market Bonds
$10,000,D00
$7,344,000
TVVDB
$72,500,000 — $76,500,0001
$47,000,000 — 549,700,DOO
$50,000
$41,000
$47,091,000 - $49,792,000
April 2028
More traditional method.
• Potential cost savings due to
competitive low bid approach.
• Cost and schedule uncertainty.
• Multiple contracts and points of
responsibilities.
• Omer 'owns! performance
Issues.
BAWA Board Regular Meeting Minutes
Reference Slides
Tentative RFQ and RFP Schedule
RFQ Kick-off Info Meeting
,i Approximately 20 people attended.
2) 13 companies were represented.
3) 30 Minute Informational meeting and site tour
2) Submit SOO
J) SOO Evaluation and Short-list Selection
4) Issue RFP
5) Pre -Proposal Meeting/Confidential Meetings (week)
6) Submit Proposal
7) Interviews (week, if required)
e) Selection Notification
October 31, 2023
December 14, 2023
January 12, 2024
January 30, 2024
February 19, 2024
April 24, 2024
May 20, 2024
May 31, 2024
January 17, 2024
Page 10 of 12
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 11 of 12
TWDB Funding
• TWDB SWIFT Funding
• Low Interest Loan (Up to 25%Subsidize)
• Must be In the state water plan
• TWDB requires environmental clearance prior to construction
• TWDB Schedule
• Amend State Water Plan — 6 months (February 2024 — August 2024)
• Submit abridged application for SWIFT Funding (February 2025)
• Submit full application for SWIFT Funding (July 2025)
• Sign agreement for funding (September — October 2025)
• Receive funding (November— December 2025)
• Submit Environmental Report for Review (December 2025—June 2026)
• Procurement Options
• Would BAWA want to continue to pursue Progressive Design -Build (PDB) with a possible delayed construction schedule?
Accelerated construction is a benefit of PDB that may not be fully realized.
• BGE put together a matrix of procurement options attached that outline some of the costs and benefits of each option.
Design Request Items
• Additional Forebay and/or Bypass --__
• Meter Station Bypass-
• Increased Pump Capacity of LLPS I d• �„ j
• Additional Sludge Lagoon(s) i
• Add/Expand Chemical Bulk Tanks
• New CT Study
• Improved Access to Chemical Lines 4 `
Additional Ground Storage Tank
• Add'16MGDTreatment Capacity (Flocc,
Sedimentation, Filtration, Backwash,
etc.)
• In -House Service & Programming Ability
• Maintenance Building & Equip Storage 1 _ - - I ) •—� ` i
• Additional Lavatories for Staff
• Winterization/Windproof Pump Stations
• Pipe & Pump Coatings
• Resolve Electrical Issues w/Motors ;I
ttlr
6 to 12 MGD Expansion
�J O
_ rr
P ME
_D s
51,
yu„G
6 to 12 MGD Expansion
BAWA Board Regular Meeting Minutes
January 17, 2024
Page 12 of 12
6 to 12 MGD Expansion
5 — Rapid Mix Chamber
6 — SuperPulsator Basins
7 — Disinfection Basin
B — Filters
9 —Transfer Pump Improvements
10 — Ground Storage Tank
11— HSPS Improvements
12 —Sludge Pump Improvements
13 — Backwash EQ Basin & Pumps
20 — Chemical Systems Upgrades
21— Maintenance Building
22/23 — Electrical Upgrades
New Generator
6 to 12 MGD Exoansion
3 — New Forebay,
4 — LLPS Improvements
15 — New Sludge Lagoons
24 — Electrical Improvements