2015 01 21 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
January 21, 2015
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular
Meeting on Wednesday, January 21, 2015, at 9:00 A.M., in the Council Chamber of the Baytown
City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Mike Wilson
Vice President
Wayne Baldwin
Secretary
Brandon Benoit
Director
Frank McKay
Director
Robert D. Leiper General Manager
Karen Horner General Counsel
Leticia Brysch Assistant Secretary
Vice President Wilson convened the January 21, 2015, Baytown Area Water Authority (BAWA)
Board Regular Meeting with a quorum present at 9:00 A.M., all members were present with the
exception of President Brenda Bradley Smith who was absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Board Meeting held on November 19, 2014.
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
approving the November 19, 2014, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution awarding a Construction Contract to Affordable Land
Services LLC, for the Baytown Area Water Authority 6 MGD Surface Water Treatment
Plant - Clearing and Grubbing Project.
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 2 of 7
General Manager Leiper presented the agenda item and stated that Resolution No. 2015 -01
awards a contract in the amount of $279,923.20, for clearing and grubbing of approximately 38
acres. He stated four (4) bids were received and publicly opened in the Council Chambers on
January 06, 2015, at 2:00 P.M. Additionally, he stated that state law requires that before BAWA
may enter into a contract, the City Council must approve the same, in which Council will
consider at its meeting scheduled to be held on January 22, 2015.
A motion was made by Director Frank McKay III and seconded by Director Brandon Benoit
approving Resolution No. 2015 -01. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2015 -01
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AWARDING BAYTOWN AREA WATER
AUTHORITY 6 MGD SURFACE WATER TREATMENT PLANT -
CLEARING AND GRUBBING PROJECT TO AFFORDABLE LAND
SERVICES LLC, IN AN AMOUNT OF TWO HUNDRED SEVENTY -NINE
THOUSAND NINE HUNDRED TWENTY -THREE AND 20/100 DOLLARS
($279,923.20); MAKING OTHER PROVISIONS RELATED THERETO; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
b. Consider a resolution awarding the Annual Liquid Chlorine Contract to DXI
Industries, Inc.
General Manager Leiper presented the agenda item and stated that Resolution No. 2015 -02
awards the Annual Liquid Chlorine Contract to DXI Industries, Inc., in the amount of
$76,342.00. He stated that bids were opened Wednesday, January 14, 2015, at 9:00 A.M. with
DXI Industries, Inc., having the lowest bid. Additionally, he stated that the previous contract
dated January 2014, was extended to DXI Industries, Inc., for $72,485.00 (133 tons /per year @
$545.00 per ton).
A motion was made by Secretary Wayne Baldwin and seconded by Director Brandon Benoit
approving Resolution No. 2015 -02. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 3 of 7
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2015 -02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ACCEPTING THE BID OF DXI INDUSTRIES,
INC., FOR THE ANNUAL LIQUID CHLORINE CONTRACT AND
AUTHORIZING PAYMENT BY THE BAYTOWN AREA WATER
AUTHORITY, IN THE AMOUNT OF SEVENTY -SIX THOUSAND THREE
HUNDRED FORTY -TWO AND NO /100 DOLLARS ($76,342.00); MAKING
OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
C. Consider a resolution awarding the Annual Liquid Ferric Chloride Contract to
Kendra Water Solutions, Inc.
General Manager Leiper presented the agenda item and stated that Resolution No. 2015 -03
awards the Annual Liquid Ferric Chloride Contract to Kemira Water Solutions, Inc., in the
amount of $122,500.00. He stated that bids were opened Wednesday, January 14, 2015, at 9:00
A.M. with Kemira Water Solutions, Inc., having the lowest bid of $122,500.00 (500,000 pounds
@ $0.245 per pound). Additionally, he stated that the previous contract dated December 2013,
was extended to Kemira Water Solutions, Inc., for $122,500.00 (500,000 pounds @ $0.245 per
pound).
A motion was made by Secretary Wayne Baldwin and seconded by Director Frank McKay III
approving Resolution No. 2015 -03. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2015 -03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ACCEPTING THE BID OF KEMIRA WATER
SOLUTIONS, INC., FOR THE ANNUAL LIQUID FERRIC CHLORIDE
CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 4 of 7
WATER AUTHORITY, IN THE AMOUNT OF ONE HUNDRED TWENTY -
TWO THOUSAND FIVE HUNDRED AND NO /100 DOLLARS ($122,500.00);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
d. Consider a resolution awarding the Annual Zinc Polyphosphate Contract to
Sterling Water Technologies LLC.
General Manager Leiper presented the agenda item and stated that Resolution No. 2015 -04
awards the Annual Zinc Polyphosphate Contract to Sterling Water Technologies LLC, in the
amount of $48,890.00. He stated that bids were opened Wednesday, January 14, 2015, at 9:00
A.M. with Sterling Water Technologies LLC, having the lowest bid of $48,890.00 (100,000
pounds @ $0.4889 per pound). Additionally, he stated that the previous contract dated January
2014, was extended to Sterling Water Technologies LLC, for $61,500.00 (100,000 pounds @
$0.615 per pound).
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
approving Resolution No. 2015 -04. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
RESOLUTION NO. 2015 -04
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ACCEPTING THE BID OF STERLING
WATER TECHNOLOGIES LLC, FOR THE ANNUAL ZINC
POLYPHOSPHATE CONTRACT AND AUTHORIZING PAYMENT BY THE
BAYTOWN AREA WATER AUTHORITY, IN THE AMOUNT OF FORTY -
EIGHT THOUSAND EIGHT HUNDRED NINETY AND NO 1100 DOLLARS
($48,890.00); MAKING OTHER PROVISIONS RELATED THERETO; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
e. Consider a resolution awarding the Annual Sodium Hydroxide Contract to
Brenntag Southwest, Inc.
General Manager Leiper presented the agenda item and stated that Resolution No. 2015 -05
awards the Annual Sodium Hydroxide Contract to Brenntag Southwest Inc., in the amount of
$164,971.00. He stated that bids were opened Wednesday, January 14, 2015, at 9:00 A.M. with
Brenntag Southwest Inc., having the lowest bid of $164,971.00 (407,000 pounds @ $0.222 per
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 5 of 7
pound at 50% and 290,000 pounds @ $0.2573 per pound at 25 %). Additionally, he stated
that the previous contract dated September 2013, was extended to Brenntag Southwest Inc., for
$204,152.50 (407,000 pounds @ $0.2825 per pound at 50% and 290,000 pounds @ $0.3075 per
pound at 25 %).
A motion was made by Director Frank McKay III and seconded by Director Brandon Benoit
approving Resolution No. 2015 -05. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY ACCEPTING THE BID OF BRENNTAG
SOUTHWEST, INC., FOR THE ANNUAL SODIUM HYDROXIDE
CONTRACT AND AUTHORIZING PAYMENT BY THE BAYTOWN AREA
WATER AUTHORITY, IN THE AMOUNT OF ONE HUNDRED SIXTY -
FOUR THOUSAND NINE HUNDRED SEVENTY -ONE AND NO /100
DOLLARS ($164,971.00); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3. REPORTS
a. Receive an update regarding the Baytown Area Water Authority (BAWA) East
Plant Project.
Deputy General Manager Ron Bottoms presented the update regarding the Baytown Area Water
Authority (BAWA) East Plant Project. He stated that staff is in the process of getting an access
agreement with NRG to get into the property for the cleaning and grubbing. He stated that staff is
still talking to the City of Houston and the Navigation District on obtaining water rights of the
Seawa Canal. Additionally, he stated that although the process is slower than anticipated, the
hope is to have the engineering completed by December.
During further discussion there was an inquiry as to the reason for the slowness of the process.
City Manager Leiper stated that there has to be a conveyance agreement for the City of Baytown
water and the Seawa Canal which is very complicated. He stated that the City of Houston has no
concerns with amending the City of Baytown's contract and that there's no concern about not
having raw water for the plant.
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 6 of 7
b. Receive the Baytown Area Water Authority's Annual Financial Report for the fiscal
year ending September 30, 2014.
Ms. Stephanie Harris, a representative of Belt Harris Pechacek, LLLP, presented the BAWA
Annual Financial Report for the fiscal year ending September 30, 2014. She stated that they
issued an unmodified opinion of the financial statement, which is highest level of assurance that
they can provide. She stated that the financial statement is materially correct and all disclosure
required by generally excepted accounting principals were included. Ms. Harris stated that the
total assets were at approximately $53.5 million compared to $50.4 million in 2013. She stated
that the subtotal for liabilities were $17.9 million compared to $19.3 million in 2013, which is a
decrease of debt service. She further stated that there was an overall ending positive net position
of $35.7 million compared to $31.1 million in 2013.
In regards to the income statement, Ms. Harris stated that the total operating revenues were $11.7
with an increase of approximately $500,000 over the prior year. She stated that the total
operating expenses decreased to $6.6 million compared $7.4 million the prior year. She further
stated that after the non - operating revenues and expenses there was an increase in the net
position of $4.5 million for the year.
In regards to cash flow, Ms. Harris stated that the net cash by operating activities was $6.5
million compared to $5.1 in the prior year. Additionally, she stated that after non - capital
financing activities and capital investments, there was an overall increase in the cash position of
$2.7 million.
C. Receive the Baytown Area Water Authority's Revenues and Expenditures Report
for the Quarter Ending December 31, 2014.
Finance Director, Louise Richman presented the Baytown Area Water Authority's Revenues and
Expenditures Report for the Quarter Ending December 31, 2014. She stated that the revenues
were on target which included water sales and transfers. She stated that the expenditures were on
budget and trending well. She further stated that the personnel expenditures had savings due to a
vacancy and that commodity prices decreased. Ms. Richman stated that due to chemical supplies
being purchased in bulk supply, the budget was right at 31 %. She stated that untreated
water, another large expenditure was at 22% of budget and that the machine and equipment
maintenance was trending very well at 24% of budget.
In regards to the capital line item, Ms. Richman stated that pumps were purchased along with a
replacement truck. Additionally, she stated that there were transfers to the general fund for
administrative services, to the debt services fund, and to BAWA capital.
d. Receive the Baytown Area Water Authority's Quarterly Investment Report for the
Quarter Ending December 31, 2014.
Ms. Richman presented the agenda item and stated that the portfolio was a little less than $16
million and that the interest rate remains low.
BAWA Board Regular Meeting Minutes
January 21, 2015
Page 7 of 7
4. MANAGER'S REPORT
a. Reminder that the next Baytown Area Water Authority meeting is scheduled for
Wednesday, February 18, 2015, at 9:00 A.M. in the City Council Chamber, 2401 Market
Street, Baytown, Texas 77520.
General Manager Leiper presented the agenda item and stated that the next Baytown Area Water
Authority meeting is scheduled for Wednesday, February 18, 2015, at 9:00 A.M. in the City
Council Chamber, 2401 Market Street, Baytown, Texas 77520.
5. ADJOURN
A motion was made by Director Brandon Benoit and seconded by Secretary Wayne Baldwin
adjourning the January 21, 2015, BAWA Board Meeting. The vote was as follows:
Ayes: Secretary Wayne Baldwin, Director Brandon Benoit, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: President Brenda Bradley Smith (Absent)
Approved
With there being no further business to discuss, Vice President Wilson adjourned the January 21,
2015, Baytown Area Water Authority (BAWA) Board Regular Meeting at 9:20 A.M.
Leticia Brysch, Assistant
City of Baytown