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2025 01 30 BAWA Minutes, SpecialBAWA Board Special Meeting Minutes January 30, 2025 Page 1 of 5 MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY January 30, 2025 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Special Meeting on January 30, 2025, at 4:30 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Frank McKay III Vice President Jimmy Smith Secretary Alyssa Linares Director David Start, Jr. Director Jason Reynolds General Manager Kristin Holmes Assistant General Counsel Gabriella Gonzales Acting Assistant Secretary Vice President Frank McKay III convened the January 30, 2025, BAWA Board Special Meeting with a quorum present at 4:34 P.M., all members were present with the exception of President Brenda Bradley Smith who was absent. 1. CITIZEN COMMENTS Vice President Frank McKay III announced no one signed up to speak. 2. MINUTES a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on September 18, 2024. A motion was made by Secretary Jimmy Smith, and seconded by Director David Start, Jr. to approve the Baytown Area Water Authority Regular Meeting minutes held on September 18, 2024, as submitted. The vote was as follows: Ayes: Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Other: President Brenda Bradley Smith (Absent) Approved b. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on November 20, 2024. BAWA Board Special Meeting Minutes January 30, 2025 Page 2 of 5 A motion was made by Director Alyssa Linares, and seconded by Secretary Jimmy Smith to approve the Baytown Area Water Authority Regular Meeting minutes held on November 20, 2024, as submitted. The vote was as follows: Ayes: Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Other: President Brenda Bradley Smith (Absent) Approved 3. PROPOSED RESOLUTIONS a. Consider a resolution authorizing payment to Cummins Inc., for generator repair service at the Baytown Area Water Authority Fritz Lanham Water Treatment Plant. BAWA Superintendent Michael Gay presented agenda item 3.a., explaining that Generator No. 3 at the Fritz Lanham Water Treatment Plant experienced an interruption due to an aftercooler rupture, which led to a coolant leak. The rupture resulted from normal wear and tear during general operations. The total anticipated repair cost is $157,601.75, with the contract awarded to Cummings through a Sourcewell Cooperative Purchasing Program Contract. Vice President Frank McKay III inquired further about the repair and the total number of generators. Mr. Gay clarified that the engine was not damaged; rather, the radiator was damaged and leaking. He explained that the cost to repair the radiator exceeded the cost of replacement. Additionally, Mr. Gay stated there are a total of five (5) generators: three (3) at BAWA Main, one (1) at BAWA East, and one (1) at Fritz Lanham. Director David Start, Jr. inquired about the frequency of generator repairs. Mr. Gay stated that this generator was installed in 2016 and has had no prior issues, providing approximately eight (8) years of operation without repairs. He also noted that additional generators would be installed as part of the future expansion project. A motion was made by Secretary Jimmy Smith, and seconded by Director Alyssa Linares to approve Resolution No. 2025-1, related to Item 3.a. The vote was as follows: Ayes: Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Other: President Brenda Bradley Smith (Absent) Approved BAWA Board Special Meeting Minutes January 30, 2025 Page 3 of 5 RESOLUTION NO. 2025-1 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING PAYMENT OF ONE HUNDRED FIFTY-SEVEN THOUSAND SIX HUNDRED ONE AND 75/100 DOLLARS ($157,601.75) TO CUMMINS, INC. FOR GENERATOR REPAIR SERVICES AT THE BAYTOWN AREA WATER AUTHORITY FRITZ LANHAM WATER TREATMENT PLANT, THROUGH THE SOURCEWELL COOPERATIVE PURCHASING CONTRACT; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider a resolution authorizing an Engineering Services Agreement with Binkley & Barfield, Inc., for the Baytown Area Water Authority Backwash and Decant Pump Replacement Project, in the amount of $360,314.00. Public Works and Engineering Assistant Director of Utilities, Sterling Beaver, presented agenda item 3.b., explaining that the proposed resolution authorizes an engineering services agreement with Binkley & Barfield, Inc. for the Baytown Area Water Authority (BAWA) Backwash and Decant Pump Replacement Project. The project involves replacing the existing decant pump station and installing two new backwash pumps and butterfly valves at the BAWA Fritz Lanham Water Plant, as the current pumps require replacement. A motion was made by Secretary Jimmy Smith, and seconded by Director David Start, Jr. to approve Resolution No. 2025-2, related to Item 3.b. The vote was as follows: Ayes: Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Other: President Brenda Bradley Smith (Absent) Approved RESOLUTION NO. 2025-2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY, AUTHORIZING A CONSULTING SERVICES AGREEMENT WITH BINKLEY & BARFIELD, INC., FOR ENGINEERING SERVICES FOR THE BAYTOWN AREA WATER AUTHORITY BACKWASH AND DECANT PUMP REPLACEMENT PROJECT; AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY IN AN AMOUNT NOT TO EXCEED THREE HUNDRED SIXTY THOUSAND THREE HUNDRED FOURTEEN AND NO/100 DOLLARS ($360,314.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BAWA Board Special Meeting Minutes January 30, 2025 Page 4 of 5 4. REPORTS a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project. Assistant Director of Public Works/Capital Improvement Projects, Michael Leech, presented the status report for the Baytown Area Water Authority East Plant Expansion Project and offered any questions from the Board. (Exhibit A) Director Alyssa Linares inquired about the timeline for addressing the PFA's future project. Public Works and Engineering Assistant Director of Utilities, Sterling Beaver, responded that preliminary testing will be conducted later this year to collect baseline data, which will help determine the next steps. Vice President Frank McKay III asked if there is a method to filter PFA's out of the system. Mr. Beaver explained that while some technologies exist, they are not currently cost-effective. b. Receive the Baytown Area Water Authority's Annual Financial Report for the fiscal year ended September 30, 2024. Mr. Steven Smith, Auditing Manager and CPA with Weaver and Tidwell, L.L.P., presented the BAWA Annual Financial Report for the fiscal year ending September 30, 2024. He highlighted key items from the Balance Sheets and Income Statements and stated that the audit did not identify any significant deficiencies or material weaknesses in the authority's internal controls: • Assets: Restricted assets for cash have increased by approximately 24 million, year over year, largely due to the issuance of the 2024 series bonds, and construction in progress has decreased by approximately 5 million, year over year, due to the previous construction projects being placed into service during the year and added into plant equipment. • Liabilities: Noncurrent liabilities increased from $39 million to $59 million, primarily due to the issuance of the 2024 bonds. • Operating Revenues: Total operating revenues increased from $18 million to $20 million, reflecting a $2 million increase. • Operating Expenses: Total operating expenses increased by $3.9 million, primarily due to a billing error discovered in 2024 regarding the purchase of raw water from the City of Houston. The error resulted from incorrect water rates being applied during 2023. • Total Net Position: The total change in net position for the year was $4 million, bringing the ending net position to $76 million. Mr. Smith then opened the floor for any questions from the Board. Director David Start, Jr. inquired why a prior period adjustment was not made. Mr. Smith responded that it was not something that could be measured. Sterling Beaver, Assistant Director of Utilities for Public Works and Engineering, clarified that the issue was identified by the City of Baytown, but the City of Houston did not address it at the time. He further explained there are BAWA Board Special Meeting Minutes January 30, 2025 Page 5 of 5 four (4) pumps that measure water usage, and these pumps lost communication with the City of Houston, leading the City of Houston to begin using estimated billing. At that time, BAWA staff requested that the City of Houston use more accurate data by pulling the amount of water drawn from the four -bay, which is the area that receives water from the pumps feeding the plant. To date, the City of Houston still uses estimated billing, but now bases it on the four -bay data. The permanent solution will involve installing meters on the pumps as part of the upcoming raw water reconstruction project. Once installed, the City of Houston will use these meters for billing readings. Additionally, Mr. Beaver clarified that while the pumps belong to BAWA, the current inoperable meters are owned by the City of Houston. Since they are not replacing the meters, BAWA will install its own meters, and the City of Houston has agreed to use them for billing purposes. 5. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 19, 2025, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. General Manager Jason Reynolds reminded the Board of their next meeting which is scheduled for Wednesday, February 19, 2025, at 4:30 p.m. 6. ADJOURN A motion was made by Director Alyssa Linares, and seconded by Director David Start, Jr. to adjourn the January 30, 2025 Baytown Area Water Authority Board Special Meeting at 5:06 P.M. The vote was as follows: Ayes: Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Other: President Brenda Bradley Smith (Absent) Approved `��ttt a ir►��s �l.A-T.E4 EXHIBIT "A" BAWA East Water Plant Progressive Design Build BAWA Board Meeting January 30, 2025 t A • Partnering Workshop Alternative Analysis Workshops Permitting Plan Field Investigations 60 — 90% Design Phase Cost and Schedule Modeling GMP Development Finalize Design Procurement Main Portion of Construction Owner/OA/Design Build Team Collaboration on Iss Quality Assurance .--.— Startup/Testing/Training 4A r Phase 1 Baseline Schedule • TWDB SWIFT Abridged Application Submittal — February 3, 2025 • Draft Preliminary Design (30%) — March 2025 • TWDB DWSRF Emerging Contaminants — April 4, 2025 • 60% Design Package —June 2025 • Guaranteed Maximum Price Proposal —September 2025 l 2024 2025 S O N D J F M A M J J VVWLshops Frdimriaryne$�T 601/oClasign A S GW Roposal O N D N9WbetianlOO* act TWDB Funding • TWDB SWIFT Abridged Application due February 3, 2025 • This is the initial application for the expansion funding • TWDB DWSRF Intended Use Plan due April 4, 2025 • This is a federal program meant for PFAs treatment • This has the potential for 100% loan forgiveness Raw Water Quality, Regulations, and Goals Firm Plant Capacity Chemical Storage Volume Filtration and PFAs Media Filters PFAs Forebay, Pump Stations, Electrical Forebay Low Lift Pump Station Transfer Pump Station High Service Pump Station Electrical and Control Pretreatment, Disinfection, GSTs Filtration Disinfection GST Chemicals, Residuals Chemical Storage EQ Basin Sludge Lagoons