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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