2015 10 26 BAWA Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
October 26, 2015
The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Special Meeting
on Monday, October 26, 2015, at 9:02 A.M., in the Council Chamber of the Baytown City Hall,
2401 Market Street, Baytown, Texas with the following in attendance:
Brenda Bradley Smith President
Mike Wilson Vice President
Brandon Benoit Director
Frank McKay Director
Rick Davis
General Manager
Karen Horner
General Counsel
Alisha Segovia
Assistant Secretary
President Bradley Smith convened the October 26, 2015, Baytown Area Water Authority
(BAWA) Board Special Meeting with a quorum present at 9:02 A.M., all members were present
with the exception of Director Wayne Baldwin who was absent.
1. MINUTES
a. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on August 19, 2015.
A motion was made by Vice President Mike Wilson and seconded by Director Frank McKay
III approving the August 19, 2015, BAWA Board Regular Meeting minutes. The vote was as
follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
b. Consider approving the minutes of the Baytown Area Water Authority Regular
Meeting held on September 16, 2015.
BAWA Board Special Meeting Minutes
October 26, 2015
Page 2 of 7
A motion was made by Director Frank McKay III and seconded by Vice President Mike
Wilson approving the September 16, 2015, BAWA Board Regular Meeting minutes. The vote
was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing a Professional Service Agreement with Shrader
Engineering Inc., for the design of the Baytown Area Water Authority SCADA Upgrade
Project.
General Manager Davis presented the agenda item and stated that Resolution No. 2015 -13
approves a Professional Service Agreement with Shrader Engineering Inc., for the design of the
Baytown Area Water Authority SCADA Upgrade Project.
Director McKay inquired of the amount that was budgeted for this project. Mr. Zachary Lillie
stated that the project was budgeted for a total of $1.3 million which replaces the older system at
BAWA to include the replacement of the PLC's, the control board, and some other work.
General Manager Davis stated that this item approves the design component of the project.
A motion was made by Vice President Mike Wilson and seconded by Director Brandon
Benoit approving Resolution No. 2015 -13. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
RESOLUTION NO. 2015 -13
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING THE PROFESSIONAL
SERVICE AGREEMENT WITH SHRADER ENGINEERING INC., FOR THE
BAYTOWN AREA WATER AUTHORITY SCADA UPGRADE PROJECT;
BAWA Board Special Meeting Minutes
October 26, 2015
Page 3 of 7
AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED SIX
HUNDRED THIRTY -TWO THOUSAND THREE HUNDRED FIFTY -THREE
AND NO /100 DOLLARS ($632,353.00); MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
b. Consider a resolution authorizing the sole source purchase of a chain and flight
from Evoqua Water Technologies LLC, for the Baytown Area Water Authority Plant.
Mr. Lillie presented the agenda item and stated that Resolution No. 2015 -14 authorizes the sole
source purchase of a chain and flight from Evoqua Water Technologies LLC, for the BAWA
Plant in the amount of $73,738.00. He stated that the parts are necessary to refurbish the
sedimentation basin which is over 15 years old and beyond its useful life expectancy. He stated
the chain and flight system removes the sludge from the bottom of the sedimentation basin and
when this project was done about this same time last year the board requested pictures in which
were provided.
A motion was made by Vice President Mike Wilson and seconded by Director Brandon
Benoit approving Resolution No. 2015 -14. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
RESOLUTION NO. 2015 -14
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING PAYMENT IN THE AMOUNT
OF SEVENTY -THREE THOUSAND SEVEN HUNDRED THIRTY -EIGHT
AND NO /100 DOLLARS ($73,738.00) TO EVOQUA WATER
TECHNOLOGIES LLC, FOR THE PURCHASE OF A CHAIN AND FLIGHT
TO REMOVE THE SLUDGE FROM THE BOTTOM OF THE
SEDIMENTATION BASIN AT THE BAYTOWN AREA WATER
AUTHORITY TREATMENT PLANT; MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
C. Consider a resolution authorizing a services agreement with the City of Baytown,
Harris County Fresh Water Supply District No. 27, and General Industrial Polymers, LLC,
regarding utility, plan review, and development services.
BAWA Board Special Meeting Minutes
October 26, 2015
Page 4 of 7
General Manager Davis presented the agenda item and stated that General Industrial Polymers is
looking for a different point of connection from a City's line that's in the ETJ area which will be
annexed in the future. He stated that this agreement authorizes the additional line for the
company to operate and notes specific obligations for each party in the agreement.
A motion was made by Director Brandon Benoit and seconded by Vice President Mike
Wilson approving Resolution No. 2015 -15. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
RESOLUTION NO. 2015 -15
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING THE SERVICES
AGREEMENT WITH CITY OF BAYTOWN, HARRIS COUNTY FRESH
WATER SUPPLY DISTRICT NO. 27, AND GENERAL INDUSTRIAL
POLYMERS, LLC, REGARDING UTILITY, PLAN REVIEW, AND
DEVELOPMENT SERVICES; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
d. Consider a resolution authorizing the purchase of one (1) 2016 Ford F -150 Supercab
Pickup Truck and one (1) 2016 Ford F -250 Crewcab Pickup Truck through the City of
Baytown and BuyBoard.
General Manager Davis presented the agenda item and stated that Resolution No. 2015-
16 authorizes the purchase of one (1) 2016 Ford F -150 Supercab Pickup Truck and one (1) 2016
Ford F -250 Crewcab Pickup Truck from Silbee Ford through the City of Baytown
and BuyBoard to replace two (2) older trucks.
A motion was made by Director Frank McKay III and seconded by Director Brandon
Benoit approving Resolution No. 2015 -16. The vote was as follows:
Ayes: Director Brandon Benoit, President Brenda Bradley Smith, Director Frank
McKay III, Vice President Mike Wilson
Nays: None
Other: Secretary Wayne Baldwin (Absent)
Approved
RESOLUTION NO. 2015 -16
BAWA Board Special Meeting Minutes
October 26, 2015
Page 5 of 7
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
AREA WATER AUTHORITY AUTHORIZING THE PAYMENT OF FORTY -
NINE THOUSAND NINE HUNDRED NINETY -EIGHT AND NO /100
DOLLARS ($49,998.00) TO SILBEE FORD THROUGH THE CITY OF
BAYTOWN AND THE TEXAS LOCAL GOVERNMENT PURCHASING
COOPERATIVE (BUY BOARD) FOR THE PURCHASE OF ONE (1) 2016
FORD F -150 SUPERCAB PICKUP TRUCK AND ONE (1) 2016 FORD F -250
CREWCAB PICKUP TRUCK; MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3. REPORTS
The agenda was taken out of order and agenda items 3.b. and 3.c. were considered together.
b. Receive the Baytown Area Water Authority's Revenues and Expenditures Report
for the Quarter Ending September 30, 2015.
C. Receive the Baytown Area Water Authority's Quarterly Investment Report for the
Quarter Ending September 30, 2015.
Acting Finance Director, Carl Currie presented the Baytown Area Water Authority's Revenues
and Expenditures Report, as well as, the Quarterly Investment Report for the Quarter Ending
September 30, 2015. He stated that the revenues were at 99.36% of the budget with an amount
of $12,199,419 and the expenditures were at 96% of budget with an amount of $13,042,617. He
stated that the revenues and expenditures were brought in as budgeted in the debt service fund.
He stated that the revenues for the capital improvement fund were brought in as budgeted and
only 18% of the expenditures were spent but will be spent over time as they are rollover funds.
In regards to the investment reports, he stated that the weighted average yield to maturity yield
was .01260% ending with a market value portfolio of right at $15 million.
The agenda was taken out of order and General Manager Davis requested that agenda item 3.a.
be considered.
3.a. Receive an update regarding the Baytown Area Water Authority (BAWA) East
Plant Project.
Assistant Director of Engineering, Ajay Shakyaver presented the update regarding the BAWA
East Plant Project and stated that the clearing and grubbing contractor, Affordable Land
Services, backed out on the project due to it being delayed for about six months so the contract
was terminated. He stated that since then they have advertised for contractors to bid on the
project with the pre -bid being scheduled for November 10th and the bid for November 17th
BAWA Board Special Meeting Minutes
October 26, 2015
Page 6 of 7
resulting in the end date to complete the project being delayed to the first quarter of year 2018.
He stated that currently they have 90% of the complete drawings and anticipate receiving the
100% drawings within a month or so.
Director McKay inquired as to why the contractor backed out. In response to Director McKay's
inquiry Mr. Shakyaver stated that due to the delay in receiving the delineation approval from
the US Army Corp of Engineers the contractor stated that the cost escalated. General Counsel,
Karen Horner further stated that a contract was actually awarded for the clearing and grubbing
therefore a claim is currently in the process.
During further discussion, General Manager Davis stated that staff is constantly working with the
City of Houston in regards to the reservation fee but there's still no resolution. He stated that in
order that the project may move forward they may request securing a smaller amount initially
and incrementally reserve as needed. Director McKay inquired if litigation was possible in this
case. Mrs. Homer stated that they have not looked into litigating and it would be sort of
hard because of the current agreement already in place. General Manager Davis stated that the
best possible avenue is to go through the legislative delegation to address this concern.
Director McKay requested an update on the utility billing issue. General Manager Davis stated
that the City initiated a study of the software, hardware, and accounting processes of utility
billing that included expertise from Neptune, Southern Flow, and an independent Accounting
Firm. He stated that the accounting firm did a replicate review of the software data and found no
errors in the calculations. He stated that the Neptune, the meter expert and Southern Flow, the
calibration expert didn't find anything in the meters that would explain a mechanical issue to the
billings. He stated that this type of concern is wide spread and leave reason to believe that it is
more than just an issue in Baytown. He stated that the revenue has not been out of line with what
has been projected and in reviewing the past six (6) years' worth of monthly data nothing
appears to be out of line but rather he's found six (6) incidents where there was a similar pattern
of this same issue. He further stated that staff will be reviewing the conservation rates and
looking at policies to consider that would protect the consumer being faced with a billing
situation with an unexplained increase water occurrence. Additionally, he stated that the utility
billing department has processes in place to address concerns with billing questions.
4. MANAGER'S REPORT
a. Reminder that the next Baytown Area Water Authority meeting is scheduled for
Wednesday, January 20, 2016, at 9:00 A.M. in the City Council Chamber, 2401 Market
Street, Baytown, Texas 77520.
General Manager Davis presented the agenda item and stated that the next Baytown Area Water
Authority meeting is scheduled for Wednesday, January 20, 2016, at 9:00 A.M. in the City
Council Chamber, 2401 Market Street, Baytown, Texas 77520.
5. ADJOURN
BAWA Board Special Meeting Minutes
October 26, 2015
Page 7 of 7
With there being no further business to discuss, President Bradley Smith adjourned the October
26, 2015, Baytown Area Water Authority (BAWA) Board Special Meeting at 9:34 A.M.
eticia Brysch, Assistan Secretary
City of Baytown
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