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2025 07 16 BAWA MinutesDRAFT MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY July 16, 2025 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on July 16, 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: Brenda Bradley Smith President Frank McKay III Vice President Jimmy Smith Secretary Alyssa Linares Director David Start, Jr. Director Carol Flynt Assistant General Manager Scott Lemond General Counsel Angela Jackson Assistant Secretary President Brenda Bradley Smith convened the July 16, 2025, 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. BAYTOWN AREA WATER AUTHORITY PROPOSED BUDGET a. Conduct Public Hearing for the Baytown Area Water Authority Fiscal Year 2025- 2026 Proposed Budget. At 4:36 P.M., President Brenda Bradley Smith conducted a public hearing regarding the Baytown Area Water Authority (BAWA) Fiscal Year 2025-2026 Proposed Budget. Chief Financial Officer Teresa McKenzie summarized Item 2.a. related to the Baytown Area Water Authority Fiscal Year 2025-2026 Proposed Budget and stated the budget presented before the Board is a revised version of what was presented at their last meeting and the changes are as follows: • Water Rate of 6% was corrected to reflect the previously mentioned 6.7% increase that was based on the Water Rate Study that was presented to the Board at their last meeting. • Transfer Out to Capital Improvement Projects the following two projects were added and that with this change it gives us a Total Proposed Expenditure balance of $21,768,468 and 250 days of Operating Expenses: o BAWA Sedimentation Basin Improvements $465,000 o BAWA Chemical Feed System $54,000 BAWA Board Regular Meeting Minutes July 16, 2025 Page 2 of 4 Director David Start Jr. requested clarification of the water rate increase, the Capital Improvement Fund, and where the $350,000 General Fund transfer goes to. Ms. McKenzie responded that previously they presented a 6% increase for water rates and this revised budget reflects an increase of 6.7%, and that this number increased the Revenues for the Sale of Water, and further clarified the General Fund transfer of $350,000 is for administrative cost. President Brenda Bradley Smith announced no citizens had signed up to speak on the item. At 4:40 P.M., President Brenda Bradley Smith closed the public hearing related to the Fiscal Year 2025-2026 Proposed Budget. b. Consider a resolution adopting the Baytown Area Water Authority Fiscal Year 2025-2026 Proposed Budget. A motion was made by Director David Start, Jr., and seconded by Vice President Frank McKay III to approve Resolution No. 2025-8, related to Item 2.b. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Approved RESOLUTION NO. 2025-8 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2025, AND ENDING SEPTEMBER 30, 2026; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. PROPOSED RESOLUTIONS a. Consider a resolution adopting the updated Baytown Area Water Authority Water Conservation Plan for the Texas Commission on Environmental Quality and the Texas Water Development Board. Public Works and Engineering Assistant Director of Utilities, Sterling Beaver presented Agenda Item 3.a. and stated this proposed resolution is for adoption of the updated Baytown Area Water Authority Water Conservation Plan that must be approved by the Baytown Area Water Authority Board and submitted to the Texas Commission on Environmental Quality ("TCEQ") and the Texas Water Development Board ("TWDB"). The plan has been updated at this time with only a few minor changes from what was adopted and submitted to TCEQ on April 17, 2019. A motion was made by Secretary Jimmy Smith, and seconded by Director Alyssa Linares to approve Resolution No. 2025-9, related to Item 3.a. The vote was as follows: BAWA Board Regular Meeting Minutes July 16, 2025 Page 3 of 4 Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Approved RESOLUTION NO. 2025-9 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ADOPTING THE BAYTOWN AREA WATER AUTHORITY'S WATER CONSERVATION PLAN; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. REPORTS a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project. Senior Project Manager Ms. Lindsay Kovar, with BGE, Inc. presented the status report for the Baytown Area Water Authority East Plant Expansion Project. (Exhibit "A") 5. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, August 20, 2025, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. Assistant General Manager Carol Flynt reminded the Board of their next meeting which is scheduled for Wednesday, August 20, 2025, at 4:30 p.m., in the Council Chamber. 6. ADJOURN A motion was made by Secretary Jimmy Smith, and seconded by Director Alyssa Linares to adjourn the July 16, 2025 Baytown Area Water Authority Board Regular Meeting at 4:50 P.M. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Secretary Jimmy Smith, Director Alyssa Linares, Director David Start, Jr. Nays: None Approved BAWA Board Regular Meeting Minutes July 16, 2025 Page 4 of 4 SA LL�c.L J 'P Angela Ja son, Assistant ?ej�t 9- City of Baytown t— _ = O` S � y: EXHIBIT "A" PROGRESS REPORT Project: BAWA East Surface Water Treatment Plant Phase 2 Expansion Owner's Advisor Date: July Progress Report 1. Previous Months Activities A. Change Order No. 1 for BWP Approved B. Met with TWDB & TCEQ to discuss project reviews and approvals process 1) TCEQ and TWDB submittals will be made with the 70% design package. C. 60% Design Submittal Received, and comments returned 1) 60% Design Drawings & Specifications 2) Schedule Update & Procurement Plan 2. Upcoming Progress Items and Discussion Items. A. 70% Design Package — July 31, 2025 B. 90% Design Package — October 17, 2025 C. Guaranteed Maximum Price Proposal — October 31, 2025 D. Texas Water Development Board SWIFT Funding 1) Full Abridged Application due May 12, 2025 (Submitted 5/12/2025) 2) Environmental Documents are under review. 3) BWP contract was sent to TWDB for review. 4) Plans, specifications, and front-end documents will be sent in July 2025. 5) It is anticipated that the TWDB board will approve funding in July 2025. 6) Q3 2025 Anticipated documents required for Board approval: 1. Resolution Approving a Financing Agreement with the TWDB 2. Resolution approving a Seventh Amendment to the Water Supply Contract — Treated Water 3. Bond Resolution 4. The Bond Resolution will approve the following documents: a. Escrow Agreement b. Private Placement Memo 5. PAR Agreement 7) Funding is anticipated in November 2025. BAWA East Water Plant Progressive Design Build BAWA Board Meeting July 16, 2025 .e • I Partnering Workshop I Alternative Analysis Workshops Permitting Plan Field Investigations r 60 — 90% Design Phase Cost and Schedule Modeling GMP Development Finalize Design Procurement Main Portion of Consiruction T (Owner/OA/Design Build Team Collaboration on Issu Quality Assurance T Startup/Testing/Training u 4A Future Layout Phase 1 Baseline Schedule • TWDB SWIFT Abridged Application Submittal — Due February 3, 2025 (Submitted Jan 31, 2025) • Draft Preliminary Design (30%) — Due March 2025 (Received Mar 04, 2025) • TWDB DWSRF Emerging Contaminants Application — Due April 4, 2025 (Submitted Apr 01, 2025) • Base Cost Estimate — April 2025 • 60% Design Package —June 13, 2025 • 70% Cost Model and Design Package — July 2025 • TWDB Design Submittal —July 2025 • TCEQ Design Submittal — August 2025 • 90% Design Package — October 2025 • Guaranteed Maximum Price Proposal — October 31, 2025 IS O 20N4 D J F M A M �J5 J* A 3 O N D J 2021 GMP TWDB Next Step July 2025 o BWP will submit the design package including plans, specifications and front-end documents to TWDB for review. o BGE will submit the Desing-Builder contract to TWDB for review. o It is anticipated that TWDB Board will officially approve the funding. Documents Required at Future meetings of the BAWA Board (Q3 2025) o Resolution Approving a Financing Agreement with the TWDB o Resolution approving a Seventh Amendment to the Water Supply Contract —Treated Water o Bond Resolution o The Bond Resolution will approve the following documents: o Escrow Agreement o Private Placement Memo o PAR Agreement Documents Required at Future Meetings of the City Council (Q3 20251 • Resolution Approving a Seventh Amendment to the Water Supply Contract — Treated Water • Ordinance Approving the BAWA Bond Resolution Funding is anticipated in Q4 2025 E3 y 041'r A