2024 03 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
March 20, 2024
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on March 20, 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
Frank McKay III
Jimmy Smith
David Start, Jr.
Frank Simoneaux
Scott Lemond
Angela Jackson
President
Secretary
Director
Director
Acting Assistant General Manager
General Counsel
Assistant Secretary
President Brenda Bradley Smith convened the March 20, 2024, BAWA Board Regular Meeting
with a quorum present at 4:50 P.M., all members were present with the exception of Secretary
Frank McKay III and Director Alyssa Linares, who were both absent.
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 January 17, 2024.
b. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on February 21, 2024.
President Brenda Bradley Smith stated minutes will be approved at a future meeting.
3. 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 Baytown, Texas. The Board is considering the
Agreement for the following reasons:
• Should detectable levels of PFAS be present, based upon revised standards issued by
the United States Environmental Protection Agency, BAWA hopes to recover
damages from the manufacturers.
• The Frazer and Ventura law firms represent municipalities and water systems in
PFAS litigation across the country and have developed a specialty and competence
in such litigation. The law firms are members of the Water Council for the US
Conference of Mayors and, in this capacity, contacted BAWA in September 2023
regarding potential claims and recoveries from settlements with various
manufacturers that were recently announced. BAWA has no previous relationship
with either law firm.
• The General Counsel's Office of BAWA has neither the capacity, expertise, nor
current license requirements, to adequately represent BAWA in the current multi -
district federal litigation. Further, lawsuits of this type are generally handled on a
contingency basis by firms with expertise in the area. It is uncommon for law firms
with such expertise to charge an hourly rate. Moreover, an hourly rate for such
complex and time-consuming litigation would not be economically feasible or in
residents' best interests, especially considering the possibility of a loss or minor
recovery.
• Entering into a contingency fee arrangement with law firms with expertise in this
area of the law and the capacity to handle large, complex cases on a nationwide
basis at no cost to BAWA (unless BAWA recovers) is the most advantageous,
expeditious, and economical way to protect BAWA's rights.
General Counsel, Scott Lemond advised the Board that Resolution No. 2024-13 authorizes 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 Baytown, Texas. The City of Baytown will enter into a
similar agreement.
A motion was made by Director Jimmy Smith, and seconded by Director David Start, Jr. to
approve Resolution No. 2024-13, related to Item 3.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Director Jimmy Smith, Director David Start, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Alyssa Linares (Absent)
Approved
RESOLUTION NO. 2024-13
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.
b. Consider a resolution delegating approval of the Preliminary Official Statement;
appointing underwriters; and the paying agent/registrar.
Finance Director, Teresa McKenzie reports the Resolution No. 2024-14 delegates approval of the
Preliminary Official Statement; appointing underwriters and the paying agent/registrar; and
approving other matters incidental thereto.
A motion was made by Director David Start, Jr., and seconded by Director Jimmy Smith to
approve Resolution No. 2024-14, related to Item 3.a. The vote was as follows:
Ayes: President Brenda Bradley Smith, Director Jimmy Smith, Director David Start, Jr.
Nays: None
Other: Secretary Frank McKay III (Absent), Director Alyssa Linares (Absent)
Approved
RESOLUTION NO. 2024-14
RESOLUTION BY THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY DELEGATING APPROVAL OF THE
PRELIMINARY OFFICIAL STATEMENT; APPOINTING UNDERWRITERS
AND THE PAYING AGENT/REGISTRAR; AND APPROVING OTHER
MATTERS INCIDENTAL THERETO.
4. REPORTS
a. Receive the Baytown Area Water Authority Quarterly Financial and Investment
Reports for the Quarter Ending December 31, 2023.
Finance Director, Teresa McKenzie presented the Baytown Area Water Authority's Quarterly
Investment Report, for the Quarter Ending December 31, 2023, which is submitted for review in
accordance with the Public Funds Investments Act, Section 2256.023 (a) and (b). (Exhibit A)
b. Receive a report on the status of the Baytown Area Water Authority East
Expansion Project.
Lindsay Kovar representative with BGE reported the status from staff and owner's advisor on the
BAWA East Plant Expansion and discussed potentially finalizing a contract for the month of
May 2024 after April interviews are concluded.
5. MANAGER'S REPORT
a. The next Baytown Area Water Authority meeting is scheduled for Wednesday,
April 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 Frank Simoneaux presented the Managers Report by stating
the next BAWA meeting is scheduled for Wednesday, April 17,2024 at 4: 30P.M, in the Council
Chambers and advised the Board the City Clerk's Office will poll for a special meeting
contingent on the required time frame for the bond issuance.
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With there being no further business to discuss, President Brenda Bradley Smith adjourned the
March 20, 2024, BAWA Board Regular Meeting at 5:04 P.M.
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Angela J ckson, Assistant Secrets
City of Baytown ��� r ti
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BAYTOWN AREA WATER AUTHORITY (BAWA)
Period Ending December 31, 2023
Operating Fund CY to PY
Budget CY Actual Balance % PY Actual Change $
Revenues
Water Sales - Baytown $
14.943,573 $
6,265,960 $
8,677,613
42% $
3,784,498 $
2,481,462
Water Sales - Others
1,552,535
455,670
1,096,865
29%
392,566
63,114
Investment Interest
1,000
57,837
(56,837)
5784%
12.567
46,270
Transfer from BAWACIPF
-
-
-
0%
-
-
Transfer from WWIS
100,000
25,000
75000
25%
25000
Total Revenues
16,597,108
6,804,467
9,792,641
41%
4,189,620
2,614,847
Expenditures
Personnel Serv.
2,048,060
495,376
1,552,684
24%
447,685
47,691
Supplies
6,345,594
1,397,252
4,948,342
22%
572,318
824,934
Maintenance
389,850
154,234
235,616
40%
109,071
45,163
Services
1,154,658
104,420
1,050.238
9%
266,514
(162,094)
Capital Outlay
-
98,492
(98,492)
0%
40,198
58,294
Interfund Transfer
5,852,284
1,463,071
4,389,213
25%
337,500
1,125,571
Contingencies
250,000
250,000
0%
-
Total Expenditures
16.040,446
3,712,845
12,327,601
23%
1,773,286
1,939.559
Net Change 556,662 3,091,622 2,416,334
Beg. Working Capital 3,678,383 7,851,052 5,147,004
Ending Working Capital $ 4.235.045 $ 10,942,674 $ 7,563,338
Capital Improvement Program
CYtoPY
Budget
CY Actual Balance
% PY Actual
Change $
Revenues
Investment Interest $
5,000 $
- $ 5,000
0% $ 16,157 $
(16,157)
Revenue from BAWA Operating
Fund
1,368,290
342,073 1,026.217
25% 250,000
92,073
Total Revenues
1,373,290
342,073 1,031,217
25% 266,157
75,916
Expenditures
BAWA CIP Projects $ 1,373,290 713,021 660,269 52% 3,523,762 (2,810,740)
Net Change - (370,949) (3,257,605)
Beg. Working Capital 784,998 1,973,183 4,564,995
Ending Working Capital $ 784,998 $ 1.602,235 $ 1,307,390
BAWA Budget Received
$16,597,108/ $6,804,467
(3 41%
/� BAWA Budget Spent
iy� $16,040,446 / $3,712,845
23%
Eo$
Security Type Balance Earnings
Texpool $ 4,133,605 $ 57,837
Unaudited Financials