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Home My WebLink About2026 06 17 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY June 17, 2026 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on June 17, 2026, at 5:00 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 Alyssa Linares Director Jason Reynolds General Manager Scott Lemond General Counsel Angela Jackson Assistant Secretary President Brenda Bradley Smith convened the June 17, 2026, BAWA Board Regular Meeting with a quorum present at 5:02 P.M., all members were present with the exception of Director David Start, Jr. who was 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 May 20, 2026. A motion was made by Director Alyssa Linares, and seconded by Vice President Frank McKay III to approve the Baytown Area Water Authority Regular Meeting minutes held on May 20, 2026, as submitted. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director Alyssa Linares Nays: None Other: Director David Start, Jr. (Absent) Approved 3. BAYTOWN AREA WATER AUTHORITY FISCAL YEAR 2026-2027 PROPOSED BUDGET a. Conduct a public bearing regarding the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget. BAWA Board Regular Meeting Minutes June 17, 2026 Page 2 of 4 At 5:04 P.M. President Brenda Bradley Smith conducted a public hearing regarding the Baytown Area Water Authority (BAWA) Fiscal Year 2026-2027 Proposed Budget and asked Staff to summarize the budget. Assistant Finance Director/Controller Lianette Leon presented the Baytown Area Water Authority's Fiscal Year 2026-2027 Proposed Budget related to agenda Item 3.a., and provided the following overview for the proposed budget, and offered any questions from the Board. • Starting Working Capital: $9.25 million • Total Proposed Revenues: 24.2 million • Operating Expenses: $14.2 million • Transfers & Non -Operating Expenses: $29.9 million • Ending Working Capital Balance: $3.8 million • Days of Operating Expenditures: 99 Days Vice President Frank McKay III asked if staff was comfortable with the budget being presented and General Manager Jason Reynolds responded that Staff has worked extensively on the budget and is comfortable with the budget that is before the Board. Ms. Leon added that they reduced the transfer for Capital Improvement Program ("CIP") as they are trying to utilizing the existing fund balance to increase the operating days in this scenario. President Brenda Bradley Smith announced no citizens had signed up to speak on the item. At 5:06 P.M., President Brenda Bradley Smith closed the public hearing related to the Fiscal Year 2026-2027 Proposed Budget. b. Discuss the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget. Assistant Finance Director/Controller Lianette Leon offered any questions from the Board in regard to the proposed budget that was presented to the Board in the previous agenda item. General Manager Jason Reynolds noted that there is an extent of spending down the reserves at this point as they have to balance out the Baytown Area Water fund, Water Sewer Fund, future Sanitary Sewer Overflow (SSO) expenses, and the ongoing Capital needs of the Water Sewer Fund. However, Reynolds stated that he feels confident that they have done a good job at reducing needed debit for the future, while addressing needed Capital, and that while they are spending down the reserves they are still staying above the 90-day reserve threshold. Vice President Frank McKay III asked if the transfer to the General Fund could ever be returned and Mr. Reynolds responded that they are trying to reduce any transfers to the General Fund at this point as they know they need to focus on the SSO's right now and that we can retract it if needed in the future. Ms. Leon added that the proposed transfer amount that is presented before the Board is the bare minimum that is needed to be transferred. 4. PROPOSED RESOLUTIONS BAWA Board Regular Meeting Minutes June 17, 2026 Page 3 of 4 a. Consider a resolution authorizing an agreement for legal services with Baker Wotring LLP for review of legal and regulatory issues, and provide options and technical support, for water supply evaluation and study. Public Works and Engineering Assistant Director of Utilities Sterling Beaver presented Agenda Item 4.a. and stated that the City currently contracts with the environmental law firm Baker Wotring LLP for specialty litigation services, and that this proposed resolution 'would authorizes the expansion of that relationship by hiring the firm to review legal and regulatory issues, and provide options and technical support, for water supply evaluation and study on behalf of the Baytown Area Water Authority. The water supply evaluation will assess the availability of other water sources for consideration instead of solely relying on the one water source which is currently the City of Houston. Ms. Meera Victor with Carollo Engineers, a sub consultant with Baker Wotring LLP provided a presentation to the Board of why the water supply study is needed, an explanation of what the current water supply options are, what are the considerations for the study, as well as the legal aspects of the study. Lastly, Ms. Victor offered any questions from the Board. Director Alyssa Linares and Vice President Frank McKay III questioned if a test well will be done as a part of this study, and the expected timeframe of completion for this project. Ms. Victor confirmed that test wells would be done as a part of this study, but only in Chambers County and not in Harris County. Also, that the dept of the well will be approximately 50 to 60 feet in depth for a brackish water. Lastly, Ms. Victor stated that the project is expected to take 9 to 12 months for the study to be complete. In conclusion President Brenda Bradley Smith noted a correction in the presented material refers to $100 million and the correct amount is $1 million. General Counsel Scott Lemond confirmed that the Resolution reflects the correct amount of $1 million. A motion was made by Vice President Frank McKay III, and seconded by Director Alyssa Linares to approve Resolution No. 2026-13, related to Item 4.a. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director Alyssa Linares Nays: None Other: Director David Start, Jr. (Absent) Approved RESOLUTION NO. 2026-13 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING A LEGAL SERVICES RETENTION AGREEMENT WITH BAKER WOTRING, L.L.P., FOR LITIGATION AND LEGAL SERVICES IN AN AMOUNT NOT TO EXCEED BAWA Board Regular Meeting Minutes June 17, 2026 Page 4 of 4 ONE MILLION DOLLARS ($1,000,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 5. 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) 6. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, July 15, 2026, at 5:00 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. General Manager Jason Reynolds stated that grant funding is being perused related to Agenda Item 4.a. and that if grant funding does come through it would fund this project. Additionally, he reminded the Board Members of their next Baytown Area Water Authority meeting, which is scheduled for Wednesday, July 15, 2026, at 5:00 P.M. 7. ADJOURN A motion was made by Director Alyssa Linares, and seconded by Vice President Frank McKay III to adjourn the June 17, 2026 Baytown Area Water Authority Board Regular Meeting at 5:24 P.M. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director Alyssa Linares Nays: None Other: Director David Start, Jr. (Absent) Approved EXHIBIT "A" PROGRESS REPORT Project: BAWA East Surface Water Treatment Plant Phase 2 Expansion Date: June Progress Report 1. Previous Months Activities A. Completed construction laydown area B. Construction Site trailer C. Installation of temporary power D. Excavation of sludge Lagoon 2. Project Highlights A. Schedule 1) Phase 2 Completion — July 2028 2) Phase 2 Acceptance & Final Completion — September 2028 B. Funds Available ($79,000,000) C. Project Budget with GMP Price Proposal A B C A-B Direct Construction $47,350,183 $47,350,183 $652,144 BWP Allowances $425,000 $425,000 Contingencies $3,822,015 $3,822,015 Phase 2 Design & Construction Admin $3,798,071 $3,798,071 $845,712 Bonds & Insurance $2,532,559 $2,532,559 $786,923 Design Builder Fee $5,358,324 $5,358,324 $205,224 Phase 1 Services $6,496,709 $6,496,709 $6,496,709 Total Design Builder GMP $69,782,861 $65,535,846 $8,986,712 $4,247,015 Material Testing $600,000 $319,645 $280,355 Pulsed Bed Clarifier $2,092,798 $2,092,798 Recommended Owner Contingency $2,434,091 $2,434,091 Fiscal Services $382,000 $366,272 $366,272 $15,728 OA with CM $3,473,578 $3,473,578 $1,108,628 Project Budget $78,765,328 $71,788,139 $9,858,094 $6,977,189 Progressive Design Build BAWA Board Meeting June 17, 2026 Activities to Report • Completed construction laydown area • Construction Site trailer • Installation of temporary power • Excavation of sludge Lagoon Project Budget (through March 2026) A B C A-B Direct Construction $47,350,183 $47,350,183 $652,144 BWP Allowances $425,000 $425,000 Contingencies $3,822,015 $3,822,015 Phase 2 Design & $3,798,071 Construction Admin $3,798,071 $845,712 Bonds & Insurance $2,532,559 $2,532,559 $786,923 Design Builder Fee $5,358,324 $5,358,324 $205,224 Phase 1 Services $6,496,709 $6,496,709 $6,496,709 Total Design Builder GMP $69,782,861 $65,535,846 $8,986,712 $4,247,015 Material Testing $600,000 $319,645 $280,355 Pulsed Bed Clarifier $2,092,798 $2,092,798 Recommended Owner Contingency $2,434,091 $2,434,091 Fiscal Services $382,000 $366,272 $366,272 $15,728 CA with CMI $3,473,578 $3,473,578 $1,108,628 Project Budget $78,765,328 $71,788,139 $9,858,094 $6,977,189