2014 10 15 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY October 15, 2014 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on Wednesday, 9:01 A.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brenda Bradley Smith Mike Wilson Brandon Benoit Frank McKay Robert D. Leiper Ignacio Ramirez, Sr. Leticia Brysch President Vice President Director Director General Manager General Counsel Assistant Secretary President Bradley Smith convened the October 15, 2014, Baytown Area Water Authority (BAWA) Board Regular Meeting with a quorum present at 9:01 A.M., all members were present with the exception of Director Baldwin who was absent and Director Benoit who arrived at 9:03 A.M. MINUTES a. Consider approving the minutes of the Baytown Area Water Authority Regular Board Meeting held on August 20, 2014. A motion was made by Vice President Mike Wilson and seconded by Director Frank McKay III approving the August 20, 2014, BAWA Board Regular Meeting minutes. The vote was as follows: Ayes: President Brenda Bradley Smith, Director Frank McKay III, Vice President Mike Wilson Nays: None Other: Secretary Wayne Baldwin (Absent); Director Brandon Benoit (Not Present for vote) Approved b. Consider approving the minutes of the Baytown Area Water Authority Special Board Meeting held on August 25, 2014. BAWA Board Regular Meeting Minutes October 15. 2014 Page 2 of A motion was made by Vice President Mike Wilson and seconded by Director Frank McKay III approving the August 25, 2014, BAWA Board Special Meeting minutes. The vote was as follows: Ayes: President Brenda Bradley Smith, Director Frank McKay III, Vice President Mike Wilson Nays: None Other: Secretary Wayne Baldwin (Absent); Director Brandon Benoit (Not Present for vote) Approved 2. PROPOSED RESOLUTIONS a. Consider a resolution authorizing a Professional Service Agreement with Arcadis U.S., Inc., for design and implementation of the Baytown Area Water Authority SCADA Upgrades Project. General Manager Leiper stated that BAWA retained Malcolm Pimie, now Arcadis U.S., Inc., to perform an assessment of the Baytown Area Water Authority (BAWA) Fritz Lanham Water Treatment Plant (WTP) which included the Information Technology (IT) and Supervisory Control and Data Acquisition ( SCADA) systems that was completed in January of 2011. He stated that the IT and SCADA System Assessment identified significant issues with the plant and recommended the following improvements: • Replacing or upgrading the WonderWare Human Machine Interface (HMI) software, • Replacing the SCADA Historian, • Installing a SCADA Network Backup system, and • Adding a SCADA Network/General Network Bridge. Additionally, General Manager Leiper stated that the design and installation of the project was about $733,000. Mr. John Howard, a representative of Arcadis U.S. Inc., presented an overview of the project. He stated that the system controls and monitors the entire plant and automatically collects real - time data for reports for TCEQ. He stated that the system does repetitive tasks to give operators more time to perform other duties. Mr. Howard stated that the current challenges identified at BAWA were obsolete hardware, system, and software; failing network communications; data collection not working; lack of documentation on existing system; staff training on system maintenance; and computer system not designed to City IT standards. Mr. Howard stated that they will replace the computer hardware then reinstall the existing operating system and install new software. He stated that they will improve the network communication, implement a storing and backup system, and document the systems maintenance procedures. He stated that they will BAWA Board Regular Meeting Minutes October 15, 2014 Page 3 of 6 transition to the system that the City adopted called the (VTSCADA), train staff for system maintenance, and coordinate with city IT for computer and network system design. For clarity purposes, General Manager Leiper stated that the City is going to a single standard IT system for all city related functions. During further discussion, Mr. Howard stated that the project schedule consist of computer upgrades being done during the first three months of the project followed by the network upgrades then the installation of the new software. He stated that after the upgrades they will work on transitioning the plant from the existing software package to VTSCADA. Mr. Howard stated that they recommend replacing the field hardware (programmable logic controllers) at a later stage and that there were some additional instrumentation that's not included with this contract that may need to be implemented as well as some process improvements. Director McKay inquired if the new plant would be able to be controlled at the existing BAWA plant location and reversible once the upgrades were installed. General Manager Leiper stated that this will not eliminate the human factor and both plants will be staffed 24 hours a day, but it allows the redundancy in case there are any issues at either location. Additionally, Mr. Howard stated that an operator will have the access of the plants through an IPad. Director McKay inquired about the security of the plant system regarding hackers and stated that when he worked at the power plant, the SCADA software that controlled the plant was not connected to the internet at all. Mr. Howard stated that security is a challenge and there are various options that will be discussed during the network design. General Manager Leiper stated that an option may be to have the SCADA system accessible through the City's private network that is not cloud based. During further discussion, Director McKay inquired of the expected life span of the new system. Mr. Howard stated that the hardware life span is about five (5) years and the software's life span is based on Microsoft expanded, which is currently running on Windows NT which is at the ending life cycle. He further stated that the program will run on the current windows software and once the NT software ends the new windows software will begin on a separate machine. General Manager Leiper stated that in the past, the updates of technology was not addressed as it was necessarily needed, but moving forward, updates/upgrades will be done when needed. A motion was made by Director Brandon Benoit and seconded by Vice President Mike Wilson approving Resolution No. 2014 -19. The vote was as follows: Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank McKay III, Vice President Mike Wilson Nays: None BAWA Board Regular Meeting Minutes October 15, 2014 Page 4 of 6 Other: Secretary Wayne Baldwin (Absent) Approved RESOLUTION NO. 2014 -19 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY AUTHORIZING THE PROFESSIONAL SERVICE AGREEMENT WITH ARCADIS U.S., INC., FOR THE BAYTOWN AREA WATER AUTHORITY SCADA PROJECT; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED SEVEN HUNDRED THIRTY -TWO THOUSAND THREE HUNDRED THIRTY -FIVE AND 50 /100 DOLLARS ($732,355.50); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider a resolution authorizing a contract with Pump & Power Equipment, LLC, for the BAWA Peerless Vertical Turbine Pump Emergency Repair Project. General Manager Leiper stated that Resolution No. 2014 -20 authorizes a contract with Pump & Power Equipment, LLC, in the amount of $64,000 for the BAWA Peerless Vertical Turbine Pump Emergency Repair Project. He stated that the price to rebowl the pump will be $55,652, the labor will be $8,348, and that the repairs will take approximately six (6) weeks. General Manager Leiper stated that the pump in need of repair is used to pump dirty backwash water to the lagoon when backwashing filters and is one of only two dirty backwash pumps at the plant and is currently inoperable. He stated that as a backup plan should the remaining pump ceases to function properly; BAWA has secured a rental bypass pump at a cost of about $10,000 per month. He stated that because of the vital importance of this pump to protect the public health or safety, this repair is being made on an emergency basis without competitive bidding and repairs will begin immediately, as the City Council approved the agreement at its meeting held on October 9th. Additionally, he stated that once the repair is done, they will proceed with normal competitive bidding and purchase a new pump to replace the old pump, and then have the old pump rebuilt. A motion was made by Vice President Mike Wilson and seconded by Director Frank McKay III approving Resolution No. 2014 -20. The vote was as follows: Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank McKay 111, Vice President Mike Wilson Nays: None Other: Secretary Wayne Baldwin (Absent) Approved BAWA Board Regular Meeting Minutes October 15, 2014 Page 5 of 6 RESOLUTION NO. 2014 -20 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY DECLARING AN EMERGENCY; AUTHORIZING THE GENERAL MANAGER OF THE BAYTOWN AREA WATER AUTHORITY TO EXECUTE THE AGREEMENT FOR EMERGENCY REPAIRS FOR THE BAWA PEERLESS VERTICAL TURBINE PUMP EMERGENCY REPAIR PROJECT; AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF SIXTY -FOUR THOUSAND AND NO /100 DOLLARS ($64,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. REPORTS a. Receive an update regarding the Baytown Area Water Authority (BAWA) East Plant Project. General Manager Leiper presented an update on the BAWA East Plant Project and stated that the City closed on the property of 60 acres. He stated that once all paper work is done and approved, the City will sale the property over to BAWA. He stated that they met with NRG to work on a cross access to allow the City to share their road that is access to the property. He stated that they are working on the metes and bounds of the easement for the utility access across FM 1405 that crosses over the Bayer property. He further stated that they are continuing to have conversations with the City of Houston in regards to amending the agreement for water supply and would also like to work with Chambers Liberty Navigation District to purchase water, to have two sources of water supply. b. Receive the Baytown Area Water Authority's Revenues and Expenditures Report for the Quarter Ending September 30, 2014. Finance Director, Louise Richman presented the Baytown Area Water Authority's Revenues and Expenditures Report for the Quarter Ending September 30, 2014. She stated that the revenues were 3% over budget and that in the miscellaneous line item there is $913 which was for late fees from smaller entities. In regards to the expenditures, she stated that there were some vacancies in personnel, chemicals were more expensive, and that the electricity and supplies were under budget. Ms. Richman further stated that there's one invoice from the City of Houston for untreated water waiting to be received and that the debt services payment are on schedule. Additionally, she stated that the CIP fund had carry over funds which are accumulated for capital. C. Receive the Baytown Area Water Authority's Quarterly Investment Report for the quarter ending September 30, 2014. BAWA Board Regular Meeting Minutes October 15, 2014 Page 6 of 6 Ms. Richman presented the Baytown Area Water Authority's Quarterly Investment Report for the quarter ending September 30, 2014. She stated that there were $18.5 million total in all fund investments and that the interest rates were still low. 4. MANAGER'S REPORT a. Reminder that the next Baytown Area Water Authority meeting is scheduled for Wednesday, November 19, 2014, at 9:00 A.M. in the City Council Chamber, 2401 Market Street, Baytown, Texas 77520. General Manager Leiper stated that the next Baytown Area Water Authority meeting is scheduled for Wednesday, November 19, 2014, at 9:00 A.M. in the City Council Chamber, 2401 Market Street, Baytown, Texas 77520. Director McKay inquired if there was a master list of future projects and if the SCADA project was included in the budget. General Manager Leiper slated that there is a master plan of future capital projects and that the SCADA project was included in budget. 5. ADJOURN With there being no further business to discuss, President Bradley Smith adjourned the October 15, 2014, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:36 A.M. Leticia Brysch, AssistaVSccrctary !X//-- City of Baytown _